Document:

EX-10.2

 Exhibit 10.2 

EXECUTION VERSION 

TAX MATTERS AGREEMENT 
 between

 GREATBATCH, INC. 
 and 

QIG GROUP, LLC 
 (to be converted
into NUVECTRA CORPORATION) 
 dated as of March 14, 2016 

 TABLE OF CONTENTS 
  

							
	 	 	 	  	Page	 
	 ARTICLE I
	 	 DEFINITIONS AND EXAMPLES
	  	 	1	  
			
	 Section 1.1
	 	 Definitions
	  	 	1	  
			
	 Section 1.2
	 	 Examples
	  	 	6	  
			
	 ARTICLE II
	 	 ALLOCATION OF TAXES AND TAX ITEMS
	  	 	6	  
			
	 Section 2.1
	 	 General Rules
	  	 	6	  
		
	 (a) GB Taxes
	  	 	6	  
		
	 (b) Nuvectra Taxes
	  	 	6	  
			
	 Section 2.2
	 	 Special Rules
	  	 	7	  
		
	 (a) Pro Forma Stand-Alone Basis
	  	 	7	  
		
	 (b) Rules for Determining from which Business a Tax Item Arises
	  	 	7	  
		
	 (c) Preparation of Pro Forma Calculations and Allocations
	  	 	8	  
		
	 (d) Differences Between Taxes Shown on Joint Return and Taxes Computed on a Pro Forma Stand-Alone Basis
	  	 	8	  
		
	 (e) Allocation in Straddle Periods
	  	 	8	  
			
	 ARTICLE III
	 	 PREPARATION AND FILING OF TAX RETURNS
	  	 	9	  
			
	 Section 3.1
	 	 Joint Returns
	  	 	9	  
			
	 Section 3.2
	 	 Separate Returns
	  	 	9	  
			
	 Section 3.3
	 	 Rules Relating to the Preparation of Tax Returns
	  	 	9	  
		
	 (a) General Rule
	  	 	9	  
		
	 (b) Election to File Joint Returns
	  	 	9	  
		
	 (c) Nuvectra Returns
	  	 	9	  
		
	 (d) GB Returns
	  	 	9	  
		
	 (e) Returns Affecting Liability of Other Party
	  	 	9	  
		
	 (f) Reimbursement for Costs Incurred by Preparer
	  	 	10	  
		
	 (g) Allocation of Tax Items Between Joint Return and Related Separate Return
	  	 	10	  
		
	 (h) Standard of Performance
	  	 	10	  
			
	 Section 3.4
	 	 Protective Section 336(e) Elections
	  	 	10	  
			
	 ARTICLE IV
	 	 TAX PAYMENTS AND INDEMNIFICATION PAYMENTS
	  	 	11	  
			
	 Section 4.1
	 	 Payment of Taxes to Tax Authorities
	  	 	11	  
			
	 Section 4.2
	 	 Indemnification Payments
	  	 	11	  
		
	 (a) Tax Payments Made by the Nuvectra Group
	  	 	11	  
		
	 (b) Tax Payments Made by the GB Group
	  	 	11	  
		
	 (c) Credit for Prior Deemed Tax Payments
	  	 	11	  
			
	 Section 4.3
	 	 Initial Determinations and Subsequent Adjustments
	  	 	11	  
		
	 (a) Initial Determinations of Payments
	  	 	11	  
		
	 (b) Redeterminations of Payments and Additional Payments
	  	 	11	  

  
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	 Section 4.4
	 	 Payments by or to Other Members of the Groups
	  	 	12	  
			
	 Section 4.5
	 	 Late Payments
	  	 	12	  
			
	 Section 4.6
	 	 Tax Consequences of Payments
	  	 	12	  
			
	 Section 4.7
	 	 Payment Notices
	  	 	13	  
			
	 ARTICLE V
	 	 TAX CONTESTS
	  	 	13	  
			
	 Section 5.1
	 	 Notices
	  	 	13	  
			
	 Section 5.2
	 	 Control of Tax Contests
	  	 	13	  
		
	 (a) General Rule
	  	 	13	  
		
	 (b) Tax Contests Involving Certain Taxes Reported on a Joint Return
	  	 	14	  
		
	 (c) Non-Controlling Party Participation Rights
	  	 	14	  
			
	 ARTICLE VI
	 	 ASSISTANCE AND COOPERATION
	  	 	15	  
			
	 Section 6.1
	 	 Provision of Information
	  	 	15	  
		
	 (a) Information with Respect to Joint Returns
	  	 	15	  
		
	 (b) Information with Respect Tax Payments
	  	 	15	  
		
	 (c) Information with Respect to Separate Returns
	  	 	16	  
		
	 (d) Information with Respect to Pro Forma Stand-Alone Basis Computations and Allocations
	  	 	16	  
		
	 (e) Information with Respect to Tax Contests
	  	 	16	  
			
	 Section 6.2
	 	 Reliance on Exchanged Information
	  	 	16	  
			
	 Section 6.3
	 	 Provision of Assistance and Cooperation
	  	 	16	  
		
	 (a) Assistance with Respect to Joint Returns
	  	 	16	  
		
	 (b) Assistance with Respect to Tax Contests
	  	 	17	  
		
	 (c) Cooperation
	  	 	17	  
			
	 Section 6.4
	 	 Retention of Tax Records
	  	 	17	  
			
	 Section 6.5
	 	 Supplemental Rulings and Supplemental Tax Opinions
	  	 	17	  
			
	 Section 6.6
	 	 Withholding and Reporting
	  	 	18	  
			
	 ARTICLE VII
	 	 RESTRICTIONS ON CERTAIN ACTIONS
	  	 	18	  
			
	 Section 7.1
	 	 General Restrictions
	  	 	18	  
			
	 Section 7.2
	 	 Certain Nuvectra Actions Beginning on the Spin-off Date
	  	 	18	  
			
	 ARTICLE VIII
	 	 GENERAL PROVISIONS
	  	 	20	  
			
	 Section 8.1
	 	 Authority
	  	 	20	  
			
	 Section 8.2
	 	 Termination
	  	 	20	  
			
	 Section 8.3
	 	 Entire Agreement
	  	 	20	  
			
	 Section 8.4
	 	 Binding Effect; No Third-Party Beneficiaries; Assignment
	  	 	20	  

  
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	 Section 8.5
	 	 Amendment
	  	 	20	  
			
	 Section 8.6
	 	 Failure or Indulgence Not Waiver; Remedies Cumulative
	  	 	20	  
			
	 Section 8.7
	 	 Notices
	  	 	20	  
			
	 Section 8.8
	 	 Counterpart; Facsimile Signatures
	  	 	21	  
			
	 Section 8.9
	 	 Severability
	  	 	21	  
			
	 Section 8.10
	 	 Governing Law
	  	 	21	  
			
	 Section 8.11
	 	 Specific Performance
	  	 	21	  
			
	 Section 8.12
	 	 Construction
	  	 	21	  
			
	 Section 8.13
	 	 Performance
	  	 	22	  
			
	 Section 8.14
	 	 Change in Law
	  	 	22	  
			
	 Section 8.15
	 	 Expenses
	  	 	22	  
			
	 Section 8.16
	 	 Disputes
	  	 	22	  
			
	 Section 8.17
	 	 Confidentiality
	  	 	23	  

  
 - iii - 

 TAX MATTERS AGREEMENT 

THIS TAX MATTERS AGREEMENT (this “Agreement”) is entered into as of March 14, 2016, between Greatbatch, Inc., a Delaware
corporation (“GB”), and QiG Group, LLC, a Delaware limited liability company (“QiG”). Unless otherwise indicated, all “Article” and “Section” references in this Agreement are to articles and sections of this
Agreement. 
 RECITALS 

WHEREAS, prior to the Spin-off (as defined below) QiG will be converted into Nuvectra Corporation, a Delaware corporation, and Nuvectra
Corporation will be an indirect wholly owned subsidiary of GB that owns and operates the Nuvectra Business (as defined below); 

WHEREAS, the Board of Directors of GB has determined that it would be appropriate and desirable for GB to separate (the
“Separation”) the Nuvectra Business from the GB Business (as defined below); 
 WHEREAS, GB, in connection with the
Separation, intends to distribute to its shareholders all of the shares of Nuvectra Corporation stock in a transaction (the “Spin-off”) intended to qualify as a transaction described under Sections 368(a)(1)(D) and 355 of the Internal
Revenue Code of 1986, as amended (the “Code”); 
 WHEREAS, the Parties have set forth in a Separation and Distribution
Agreement the principal arrangements between them regarding the Separation and the Spin-off; and 
 WHEREAS, the Parties desire to
provide for and agree upon the allocation between the Parties of Taxes and Tax Items arising prior to, as a result of, and subsequent to the Spin-off, and to provide for and agree upon other matters relating to Taxes. 

NOW, THEREFORE, in consideration of the foregoing and the covenants and agreements set forth below, the Parties agree as follows: 

ARTICLE I 
 DEFINITIONS AND
EXAMPLES 
 Section 1.1 Definitions. For purposes of this Agreement, the following terms have the following meanings: 

“Agreement” has the meaning set forth in the preamble hereto. 

“Code” has the meaning set forth in the recitals hereto. 

“Controlling Party” means the Party that has primary responsibility, control and discretion in handling, settling, or conducting a
Tax Contest pursuant to Section 5.2. 
 “Effective Time” means the time at which the Spin-off is effected on the Spin-off
Date. 
 “GB” has the meaning set forth in the recitals hereto. 

 “GB Business” means the “Greatbatch Business” as defined in the Separation
Agreement. 
 “GB Group” means GB and each Subsidiary of GB (but only while such Subsidiary is a Subsidiary of GB) other than a
Person that is a member of the Nuvectra Group. 
 “GB Taxes” has the meaning set forth in Section 2.l(a). 

“IRS” means the Internal Revenue Service. 

“Joint Return” means any Tax Return that includes Tax Items attributable to both the GB Business and the Nuvectra Business;
provided, however, that Tax Items carried forward from a Tax Year beginning on or before the Spin-off Date to a Tax Year beginning after the Spin-off Date shall be ignored for purposes of this determination. 

“Nuvectra” means (i) with respect to any Tax Year, or portion thereof, ending before the date of the conversion of QiG into
Nuvectra Corporation, QiG and (ii) with respect to any Tax Year, or portion thereof, beginning on or after the date of the conversion of QiG into Nuvectra Corporation, Nuvectra Corporation. 

“Nuvectra Active Trade or Business” means the active conduct (as defined in Section 355(b)(2) of the Code and the Treasury
Regulations thereunder) by the Nuvectra Group of the Nuvectra Business as conducted immediately prior to the Spin-off. 
 “Nuvectra
Business” has the meaning set forth in the Separation Agreement. 
 “Nuvectra Group” means (i) with respect to any Tax
Year, or portion thereof, ending before the Spin-off Date, Nuvectra and each other Subsidiary of GB that is a Subsidiary of Nuvectra on the Spin-off Date and (ii) with respect to any Tax Year, or portion thereof, beginning on or after the
Spin-off Date, Nuvectra and each Subsidiary of Nuvectra (but only while such Subsidiary is a Subsidiary of Nuvectra). 
 “Nuvectra
Taxes” has the meaning set forth in Section 2.1(b). 
 “Non-Controlling Party” means the Party that does not have
primary responsibility, control, and discretion in handling, settling, or conducting a Tax Contest pursuant to Section 5.2. 

“Non-Controlling Party Item” has the meaning set forth in Section 5.2(c). 

“Non-Preparer” means the Party that is not responsible for the preparation or filing of a Joint Return or a Separate Return, as
applicable, pursuant to Section 3.1 and Section 3.2. 
 “Party” or “Parties” means GB, Nuvectra, or both, as
the context requires. 
 “Past Practice” means past customs, practices, accounting methods, elections and conventions. 

“Payment Date” means (i) with respect to any U.S. federal income Tax Return, the due date for any required installment of
estimated taxes determined under Code Section 6655, the 

  
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due date (determined without regard to extensions) for filing the return determined under Code Section 6072, and the date the return is filed, and (ii) with respect to any other Tax
Return, the corresponding dates determined under the applicable Tax Law. 
 “Person” means an individual, a partnership, a
corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, a union, an unincorporated organization or a governmental entity or any department, agency or political subdivision thereof. 

“Post-Distribution Tax Period” means any taxable period (or portion thereof) that begins after the Spin-off Date. 

“Pre-Distribution Tax Period” means any taxable period (or portion thereof) that ends on or before the Spin-off Date. 

“Preparer” means the Party that is responsible for the preparation and filing of a Joint Return or a Separate Return, as applicable,
pursuant to Section 3.1 and Section 3.2. 
 “QiG” has the meaning set forth in the recitals hereto. 

“Requesting Party” has the meaning set forth in Section 6.5. 

“Separate Return” means any Tax Return that is not a Joint Return. 

“Separation” has the meaning set forth in the recitals hereto. 

“Separation Agreement” means the Separation and Distribution Agreement dated the date hereof between GB and Nuvectra. 

“Separation Transactions” means the Spin-off and related transactions described in Schedule I to the Separation Agreement.

 “Spin-off” has the meaning set forth in the recitals hereto. 

“Spin-off Date” means the date of the Spin-off. 

“Supplemental Tax Opinion” means, with respect to a specified action, an opinion (other than the Tax Opinion) from Tax Advisors to
the effect that (subject to any customary assumptions, qualifications, and limitations set forth therein) such action will not preclude the Spin-off from qualifying as a Tax-free transaction described under Sections 368(a)(l)(D) and 355 of the Code
to GB, its shareholders, and Nuvectra (except to the extent such shareholders receive cash in lieu of fractional shares or gain is required to be recognized by GB under Section 357(c) of the Code). The Tax Advisor in issuing a Supplemental Tax
Opinion shall be permitted to rely on the validity and correctness, as of the date given, of any previously issued Tax Opinion or private letter ruling, unless such reliance would be unreasonable under the circumstances. 

“Tax” or “Taxes” means all forms of taxation imposed by any governmental entity or political subdivision, agency,
commission or authority thereof, whenever created or imposed, and whether of the United States or elsewhere, and whether imposed by a local, municipal, state, 

  
 - 3 - 

 
national, federal, or other body, and without limiting the foregoing, shall include any income, gross income, gross receipts, profits, capital stock, franchise, withholding, payroll, social
security, workers compensation, unemployment, disability, property, ad valorem, stamp, excise, severance, occupation, service, sales, use, license, lease, transfer, recording, import, export, value added, alternative minimum, unclaimed property,
escheat, estimated, or other similar tax (including any fee, assessment, or other charge in the nature of or in lieu of any tax), together with any interest, penalties, additions to tax, or additional amounts in respect of the foregoing. 

“Tax Advisors” means (i) with respect to the Tax Opinion, GB’s third party tax advisor, (ii) with respect to a
Supplemental Tax Opinion, Norton Rose Fulbright US LLP or another nationally recognized law firm or accounting firm designated by the Party to whom such opinion is delivered, and (iii) with respect to any dispute arising in connection with this
Agreement, including under Section 2.2(c) or Section 3.3(e)(ii), a nationally recognized accounting firm agreed to by both Parties. 

“Tax Attribute” means Tax basis, net operating and capital loss carryovers or carrybacks, alternative minimum Tax credit carryovers
or carrybacks, general business credit carryovers or carrybacks, Tax credits or credits against Tax, disqualified interest and excess limitation carryovers or carrybacks, overall foreign losses, research and experimentation credit base periods, all
other items that are determined or computed on an affiliated group basis (as defined in Section 1504(a) of the Code determined without regard to the exclusion contained in Section 1504(b)(3) of the Code) or other consolidated, combined or
unitary basis, and any other item of loss, deduction, or credit that could reduce a Tax liability. 
 “Tax Authority” means, with
respect to any Tax, the governmental entity or political subdivision, agency, commission, or authority thereof that imposes such Tax, or that is charged with the assessment, determination, or collection of such Tax for such entity or subdivision.

 “Tax Benefit” means any credit, deduction, or other Tax Attribute that may have the effect of decreasing any Tax. 

“Tax Contest” means an audit, review, examination, or any other administrative or judicial proceeding with the purpose or effect of
examining, determining, redetermining or recovering Taxes of any member of either Group (including any administrative or judicial review of any claim for a refund of any Tax). 

“Tax Detriment” means any income, gain, or other attribute that may have the effect of increasing any Tax. For the avoidance of
doubt, “Tax Detriment” includes the amount of any non-income Tax that is assessed without regard to income, gain or other quantifiable attribute (for example, Transfer Taxes and property Taxes). 

“Tax Item” means any Tax Benefit or Tax Detriment. 

“Tax Law” means the law of any governmental entity or political subdivision thereof, and any controlling judicial or administrative
interpretations of such law, relating to any Tax. 

  
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 “Tax Materials” means (i) the representation letters delivered to the Tax Advisors
in connection with the delivery of the Tax Opinion or the Supplemental Tax Opinion, and (ii) any other materials delivered or deliverable by GB, Nuvectra, or others in connection with the rendering by the Tax Advisors of the Tax Opinion or the
Supplemental Tax Opinion. 
 “Tax Opinion” means the opinion to be delivered to GB by GB’s third party tax advisor in
connection with the Separation Transactions substantially to the effect that (subject to the customary assumptions, qualifications, and limitations set forth therein) for U.S. federal income tax purposes the Spin-off should qualify as a Tax-free
transaction described under Sections 368(a)(l)(D) and 355 of the Code to GB, its shareholders, and Nuvectra (except to the extent such shareholders receive cash in lieu of fractional shares or gain is required to be recognized by GB under
Section 357(c) of the Code). 
 “Tax Records” means Tax Returns, Tax Return work papers, documentation relating to any Tax
Contests, and any books of account or records required to be maintained under applicable Tax Laws (including but not limited to Section 6001 of the Code) or under any record retention agreement with any Tax Authority. 

“Tax-Related Costs” means (i) all accounting, legal and other professional fees and court costs incurred, as well as any other
out-of-pocket costs incurred and (ii) all costs, expenses and damages associated with stockholder litigation and controversies and any amounts paid in respect of a liability of stockholders, whether paid to stockholders or the IRS or any other
Tax Authority, in each case resulting from (A) the failure of the Spin-off from qualifying as a Tax-free transaction described under Sections 368(a)(1)(D) and 355 of the Code to GB and its stockholders (except to the extent such stockholders
receive cash in lieu of fractional shares or gain is required to be recognized by GB under Section 357(c) of the Code) or (B) the failure of the Nuvectra stock distributed in the Spin-off from qualifying as “qualified property”
for purposes of Section 355(d), 355(e) and 361(c) of the Code. 
 “Tax Return” means any report of Taxes due, any claims for
refund of Taxes paid, any information return with respect to Taxes, or any other similar report, statement, declaration, election, notice, or other document required to be filed under any applicable Tax Law (whether or not a payment is required to
be made in connection with such filing), including any attachments, exhibits, schedules, or appendices or other materials submitted with any of the foregoing, and including any amendments or supplements to any of the foregoing. 

“Tax Year” means, with respect to any Tax, the year, or other period, if applicable, for which the Tax is reported as provided under
applicable Tax Law. 
 “Transfer Taxes” means all transfer, sales, use, excise, stock, stamp, stamp duty, stamp duty reserve,
stamp duty land, documentary, filing, recording, registration, value added and other similar Taxes. 
 “Treasury Regulations”
means the regulations promulgated from time to time under the Code as in effect for the relevant Tax Year. 

  
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 Capitalized terms used but not otherwise defined in this Agreement shall have the respective
meanings assigned to such terms in the Separation Agreement. 
 Section 1.2 Examples. The operation of various provisions
of this Agreement is illustrated by examples in Appendix hereto, and this Agreement shall be interpreted in accordance with such examples. 

ARTICLE II 
 ALLOCATION OF TAXES
AND TAX ITEMS 
 Section 2.1 General Rules. Except as provided in Section 5.1 (Tax Contests-Notices) and ARTICLE VI
(Assistance and Cooperation), Taxes and Tax Items shall be allocated as follows: 
 (a) GB Taxes. For any Tax Year, GB shall
be liable for and indemnify the Nuvectra Group against GB’s allocable portion of Taxes imposed on the GB Group and the Nuvectra Group (“GB Taxes”). GB’s allocable portion of such Taxes shall be determined by taking into account
the following Tax Items on a pro forma stand-alone basis (as determined pursuant to Section 2.2(a)): 
 (i) GB Business Tax
Detriments. Tax Detriments (other than Tax Detriments resulting from the Separation Transactions) arising from the operation or ownership of the GB Business, 

(ii) GB Business Tax Benefits. Tax Benefits (other than Tax Benefits resulting from the Separation Transactions) arising from the
operation or ownership of the GB Business, 
 (iii) Separation Transactions - Generally. Tax Items resulting from the Separation
Transactions (including, without limitation, but for avoidance of doubt, Transfer Taxes and Taxes attributable to the settlement of any intercompany receivable, payable, loan or other account incident to the Separation Transactions), except those
Tax Items that are required to be taken into account by Nuvectra pursuant to Section 2.1(b)(iii), and 
 (iv) Nuvectra Business Tax
Benefits. Tax Benefits (other than Tax Benefits resulting from the Separation Transactions) arising from the operation or ownership of the Nuvectra Business for any Pre-Distribution Tax Period, but only to the extent such Tax Benefits are not
taken into account in calculating Nuvectra Taxes under Section 2.1(b)(ii). 
 (b) Nuvectra Taxes. For any Pre-Distribution Tax
Period, Nuvectra shall be liable for and indemnify the GB Group against Nuvectra’s allocable portion of Taxes imposed on the GB Group and the Nuvectra Group (“Nuvectra Taxes”). Nuvectra’s allocable portion of such Taxes shall be
determined by taking into account the following Tax Items on a pro forma stand-alone basis (as determined pursuant to Section 2.2(a)): 

(i) Nuvectra Business Tax Detriments. Tax Detriments (other than Tax Detriments resulting from the Separation Transactions) arising
from the operation or ownership of the Nuvectra Business, 

  
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 (ii) Nuvectra Business Tax Benefits. Tax Benefits (other than Tax Benefits resulting from
the Separation Transactions) arising from the operation or ownership of the Nuvectra Business, provided that such Tax Benefits may not be used to reduce any Tax Detriments described in Section 2.1(b)(iii), 

(iii) Separation Transactions - Breach of Covenants. Tax Items resulting from the Separation Transactions, but only to the extent such
Tax Items are directly attributable to Nuvectra’s breach of any of its covenants or representations under ARTICLE VII, and not attributable to any of the events or actions described in clauses (i) – (iii) of Section 7.3(b),
and 
 (iv) GB Business Tax Benefits. Tax Benefits (other than Tax Benefits resulting from the Separation Transactions) arising from
the operation or ownership of the GB Business, but only to the extent such Tax Benefits are not taken into account in calculating GB Taxes under Section 2.1(a)(ii). 

Section 2.2 Special Rules. 

(a) Pro Forma Stand-Alone Basis. For purposes of computing GB Taxes and Nuvectra Taxes on a pro forma stand-alone basis, Tax Items shall
be taken into account: 
 (i) only to the extent required or allowable under applicable Tax Law on a pro forma stand-alone basis for such
Tax Year, 
 (ii) by assuming that the members of the Nuvectra Group filed on a consolidated basis with Nuvectra as the common parent, 

(iii) by using all applicable elections, accounting methods, and conventions used on the Tax Return on which such Tax Items are actually
reported, 
 (iv) by applying the average Tax rate on such Tax Return (i.e., the Tax rate, expressed as a percentage, equal to the
quotient of total Taxes shown on the Tax Return with respect to a particular Tax base and such applicable Tax base), provided, however, if any category of Tax Items is subject to a different rate of Tax than other categories of Tax
Items on such Tax Return, the average Tax rate applicable to such category of Tax Items reported on the Tax Return shall apply with respect to such Tax Items, and 

(v) by treating Tax Benefits as used in the order specified under applicable Tax Law or, to the extent that such Tax Law does not specify the
order of use, as used pro rata. 
 (b) Rules for Determining from which Business a Tax Item Arises. For purposes of ARTICLE II, Tax
Items shall be deemed to arise from the operation or ownership of the Business to which such items are more closely related. For the avoidance of doubt, Tax 

  
 - 7 - 

 
Benefits arising from the vesting or payment of an equity award shall be deemed to arise from the operation or ownership of the Business that received the benefit of the services to which such
equity award relates. Notwithstanding the foregoing, with respect to any Tax Year, Tax Items related to overhead costs and similar expenses that do not directly relate to either Business shall be allocated to GB. 

(c) Preparation of Pro Forma Calculations and Allocations. GB shall be responsible for preparing all pro forma stand-alone basis
computations and allocations provided for in this ARTICLE II (including, for the avoidance of doubt, the allocations provided for in Section 2.2(b)); provided, however, GB shall make available and provide to Nuvectra for its review and
comment such pro forma stand-alone basis computations and allocations no later than sixty days before the date on which the relevant Tax Return to which such computations and allocations relate is due (taking into account any filed extensions), and,
in connection with such review, Nuvectra shall have reasonable access, during normal business hours and upon reasonable notice, to information then in the possession of the GB Group that Nuvectra reasonably requests in order for Nuvectra to review
such pro forma stand-alone basis computations and allocations. If Nuvectra disagrees with any aspect of such computations and allocations, it shall, within thirty days after receiving such computations and allocations, provide GB with written
notification of such disputed item (or items). Provided that GB has complied with its obligations pursuant to this Section 2.2(c) and the applicable provisions of ARTICLE VI, GB shall have no obligation to consider any comments that are
provided more than thirty days after such computations and allocations are made available to Nuvectra. GB and Nuvectra shall act in good faith to resolve any such dispute prior to the date on which the relevant Tax Return to which such disputed item
relates is required to be filed. If GB and Nuvectra cannot reach a resolution with respect to any such disputed item, the item in question shall be resolved in accordance with Section 8.16. In the event that any such dispute relating to any Tax
Return is not resolved prior to the due date for such Tax Return, the Tax Return shall be timely filed and subsequently amended as necessary to reflect the resolution of the dispute. 

(d) Differences Between Taxes Shown on Joint Return and Taxes Computed on a Pro Forma Stand-Alone Basis. If the sum of GB Taxes and
Nuvectra Taxes relating to a Joint Return is different from the amount of Tax shown on such Joint Return, then the Tax shown on such Joint Return shall be allocated between the Parties in the same proportion as the amount of GB Taxes or Nuvectra
Taxes, as appropriate, bears to the sum of GB Taxes and Nuvectra Taxes relating to such Joint Return. 
 (e) Allocation in Straddle
Periods. For purposes of Section 2.1 and Section 2.2, Tax Items arising during any Tax Year that begins on or before and ends after the Spin-off Date shall be treated as arising during the Pre-Distribution Tax Period or the
Post-Distribution Tax Period based on an interim closing of the books as of and including the day of the Spin-off Date. Notwithstanding the foregoing, Tax Items attributable to any such Tax Year that are calculated on an annualized basis (including
depreciation, amortization and depletion deductions) shall be apportioned between the Pre-Distribution Tax Period and the Post-Distribution Tax Period on a daily pro rata basis. 

  
 - 8 - 

 ARTICLE III 

PREPARATION AND FILING OF TAX RETURNS 

Section 3.1 Joint Returns. GB shall be responsible for preparing and timely filing (or causing to be prepared and filed)
all Joint Returns. 
 Section 3.2 Separate Returns. GB shall be responsible for preparing and timely filing (or
causing to be prepared and filed) all Tax Returns that it determines in its reasonable discretion are Separate Returns including Tax Items attributable to the GB Business. Nuvectra shall be responsible for preparing and timely filing (or causing to
be prepared and filed) all Separate Returns including Tax Items attributable to the Nuvectra Business. 
 Section 3.3 Rules
Relating to the Preparation of Tax Returns. 
 (a) General Rule. Except as otherwise provided in this Agreement, the
Preparer of a Tax Return shall have the exclusive right, in its sole discretion, with respect to such Tax Return to determine (i) the manner in which such Tax Return shall be prepared and filed, including the elections, methods of accounting,
positions, conventions, and principles of taxation to be used and the manner in which any Tax Item shall be reported, (ii) whether any extensions may be requested, (iii) whether an amended Tax Return shall be filed, (iv) whether any
claims for refund shall be made, (v) whether any refunds shall be paid by way of refund or credited against any liability for the related Tax, and (vi) whether to retain outside firms to prepare or review such Tax Return. 

(b) Election to File Joint Returns. GB shall have the sole discretion of whether to file a Joint Return on a consolidated,
combined, or joint basis, if the filing of such consolidated, combined, or joint return is elective under the relevant Tax Law. 

(c) Nuvectra Returns. Except as required by applicable Tax Law, with respect to any Separate Return for which Nuvectra is the
Preparer, Nuvectra shall not take (and shall cause the other members of the Nuvectra Group not to take) any position that it knows, or reasonably should know, would adversely affect any member of the GB Group without the prior written consent of GB.
Without limiting the foregoing, Nuvectra shall not elect under Section 172(b)(3) of the Code to relinquish the carryback period with respect to a net operating loss if such net operating loss could, absent such an election, be carried back to
the GB Group’s 2016 Joint Return. 
 (d) GB Returns. Except as required by applicable Tax Law, with respect to any
Separate Return for which GB is the Preparer, GB shall not take (and shall cause the members of the GB Group not to take) any position that it knows, or reasonably should know, would adversely affect any member of the Nuvectra Group without the
prior written consent of Nuvectra. 
 (e) Returns Affecting Liability of Other Party. Insofar as a Tax Return prepared
by one Party may affect Taxes for which the other Party is liable pursuant to this Agreement or otherwise to any Tax Authority, or would reflect a position that would reasonably be expected to adversely affect the other Group: 

(i) Consistent With Past Practice. Unless otherwise agreed to by the Parties, and except to the extent otherwise required by
applicable Tax Law, each Tax Return shall be prepared in a manner consistent with Past Practice. 

  
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 (ii) Review Prior to Filing. The Preparer of such Tax Return shall make the Tax Return
available to the Non-Preparer for its review and comment no later than sixty days before the Tax Return is due, taking into account any extensions that the Preparer files, and, in connection with such review, the Non-Preparer shall have reasonable
access, during normal business hours and upon reasonable notice, to the Preparer’s supporting information and schedules, including financial books and records. If the Non-Preparer disagrees with any aspect of such Tax Return, it shall, within
thirty days after receiving such Tax Return, provide the Preparer with written notification of such disputed item (or items). Provided the Preparer has complied with its obligations pursuant to this Section 3.3 and the applicable provisions of
ARTICLE VI, the Preparer shall have no obligation to consider any comments that are provided more than thirty days after such Tax Return is made available to the Non-Preparer. The Preparer and Non-Preparer shall act in good faith to resolve any such
dispute prior to the date on which the relevant Tax Return to which such disputed item relates is required to be filed. If the Preparer and Non-Preparer cannot reach a resolution with respect to any such disputed item, the item in question shall be
resolved in accordance with Section 8.16. In the event that any such dispute relating to any Tax Return is not resolved prior to the due date for such Tax Return, the Tax Return shall be timely filed and subsequently amended as necessary to
reflect the resolution of the dispute. 
 (f) Reimbursement for Costs Incurred by Preparer. The Non-Preparer of a given Tax Return
may request that the Preparer amend such Tax Return for the benefit of the Non-Preparer. If the Preparer agrees, in its sole discretion, to amend such Tax Return, the Preparer shall be entitled to reimbursement from the Non-Preparer for any
reasonable third-party costs that are attributable to the Non-Preparer’s request to the extent such costs exceed $50,000 in the aggregate. 

(g) Allocation of Tax Items Between Joint Return and Related Separate Return. Notwithstanding Section 3.3(a), if Tax Items are
allocated between a Joint Return and any related Separate Return, then the Preparer of such Separate Return shall (and shall cause the members of its Group to) file the related Separate Return in a manner that is consistent with the reporting of
such Tax Items on the Joint Return except to the extent otherwise required by applicable Tax Law. 
 (h) Standard of Performance. GB
shall prepare (or cause to be prepared) Joint Returns with the same general degree of care as it uses in preparing Separate Returns and without Nuvectra’s prior written consent it shall not take any position on any Joint Return that would have
the effect of deferring any material item of income or accelerating any material item of deduction that would have the effect of increasing Nuvectra’s Taxes following the Spin-off or its indemnification obligation under this Agreement. 

Section 3.4 Protective Section 336(e) Elections. Notwithstanding anything to the contrary, GB and Nuvectra shall make
a protective election under Section 336(e) of the Code (and any similar election under state or local law) in accordance with Treasury Regulations  

  
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Section 1.336-2(h) and (j) (and any applicable provisions under state and local law), and shall cooperate in the timely completion and/or filings of such elections and any related
filings or procedures (including filing or amending any Tax Returns to implement a protective election that becomes effective). This Section 3.4 is intended to constitute a binding, written agreement to make an election under
Section 336(e) of the Code with respect to the Spin-off. 
 ARTICLE IV 

TAX PAYMENTS AND INDEMNIFICATION PAYMENTS 

Section 4.1 Payment of Taxes to Tax Authorities. GB shall be responsible for remitting (or causing to be remitted) to the
proper Tax Authority all Tax shown (including Taxes for which Nuvectra is wholly or partially liable pursuant to Section 2.1) on any Tax Return for which it is the Preparer, and Nuvectra shall be responsible for remitting (or causing to be
remitted) to the proper Tax Authority all Tax shown on any Tax Return for which it is the Preparer. 
 Section 4.2
Indemnification Payments. 
 (a) Tax Payments Made by the Nuvectra Group. If any member of the Nuvectra Group remits a payment
to a Tax Authority for any GB Taxes, GB shall remit the amount for which it is liable to Nuvectra pursuant to Section 2.1(a) within thirty days after receiving written notification requesting such amount. 

(b) Tax Payments Made by the GB Group. If any member of the GB Group remits a payment to a Tax Authority for any Nuvectra Taxes,
Nuvectra shall remit the amount for which it is liable to GB pursuant to Section 2.1(b) within thirty days after receiving written notification requesting such amount. 

(c) Credit for Prior Deemed Tax Payments. For purposes of Section 4.2(b), the portion of Taxes paid by the GB Group to a Tax
Authority for which Nuvectra is wholly or partially liable will be determined by assuming that Nuvectra previously paid the full amount of its allocable share of all Taxes paid before the Spin-off, including, without limitation, its share of amounts
shown on any Tax Return filed before the Spin-off Date with respect to any Tax Year ending on or before the Spin-off Date. 

Section 4.3 Initial Determinations and Subsequent Adjustments. 

(a) Initial Determinations of Payments. The initial determination of the amount of any payment that one Party is required to make to the
other Party under this Agreement shall be made on the basis of the Tax Return to which the payment relates as filed, or, if such Tax is not reported on a Tax Return, on the basis of the amount of Tax initially paid to the Tax Authority. 

(b) Redeterminations of Payments and Additional Payments. The amounts paid under this Agreement will be redetermined, and additional
payments relating to such redetermination will be made, as appropriate, if as a result of an audit by a Tax Authority or an amended Tax Return (i) additional Taxes to which such redetermination relates are subsequently

  
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paid, (ii) a refund of Taxes (including any interest received relating thereto) is received or a Tax credit becomes available, (iii) the Group to which a Tax Item is allocated changes,
or (iv) the amount or character of any Tax Item is adjusted or redetermined. Each Party will promptly notify the other Party in writing of the occurrence of any of the events described in clauses (i) – (iv) above. Each payment
required by the immediately preceding sentence (a) as a result of a payment of additional Taxes will be due thirty days after the date on which the additional Taxes were paid or, if later, thirty days after the date of a request from the other
Party for the payment, (b) as a result of the receipt of a refund or tax credit will be due thirty days after the refund or tax credit was received, (c) as a result of a change in the allocation of a Tax Item will be due thirty days after
the date on which the final action resulting in such change is taken by a Tax Authority or either Party or any member of its Group or (d) as a result of an adjustment or redetermination of the amount or character of a Tax Item will be due
thirty days after the date on which the final action resulting in such adjustment or redetermination is taken by a Tax Authority or either Party or any member of its Group. 

Section 4.4 Payments by or to Other Members of the Groups. When appropriate under the circumstances to reflect the
underlying liability for a Tax or entitlement to a Tax refund, credit or Tax Benefit, a payment which is required to be made by or to a Party may be made by or to another member of the Group to which that Party belongs, but nothing in this
Section 4.4 shall relieve any Party of its other obligations under this Agreement. 
 Section 4.5 Late Payments.
Payments pursuant to this Agreement that are not made within the period prescribed in this Agreement or, if no period is prescribed, within thirty days after written demand for payment is made shall bear interest for the period from and
including the date immediately following the last date of such payment period through and including the date of payment at a per annum rate equal to the rate specified in Section 5.5 of the Separation Agreement. Such interest will be payable at
the same time as the payment to which it relates and shall be calculated on the basis of a year of 365 days and the actual number of days for which due. If the indemnifying party fails to make a payment to the indemnified party within the time
period set forth in this ARTICLE IV, the indemnifying party shall pay to the indemnified party, in addition to interest that accrues pursuant to this Section 4.5, any reasonable out-of pocket costs or expenses incurred by the indemnified party
to secure such payment or to satisfy the indemnifying party’s portion of the obligation giving rise to the indemnification payment. 

Section 4.6 Tax Consequences of Payments. For all Tax purposes and to the extent permitted by applicable Tax Law, the
Parties shall characterize any payment made pursuant to this Agreement in the same manner as if such payment were a capital contribution or a distribution, as the case may be, immediately prior to the Effective Time, or as an assumed or retained
liability, and, accordingly, as not includible in the taxable income of the recipient. The amount of any payment made pursuant to this Agreement shall be (i) subject to the last sentence of this Section 4.6, increased to take into account
any additional Taxes that may be owed by the recipient (or any of the members of its Group) as a result of receiving such payment and (ii) reduced to take into account any Tax Benefit realized by the recipient of such payment as a result of
making any payment giving rise to the obligation of the payor to pay the recipient, but only to the extent that such Tax Benefit reduces the liability for Taxes (whether payable to a Tax Authority or to the other Party under this Agreement) of the
recipient in the Tax Year during which such payment is received. If the payor reduces any payment by the amount of any Tax  

  
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Benefit pursuant to this Section 4.6 and such Tax Benefit subsequently is denied or reduced by any Tax Authority, then the payor shall pay the recipient an amount equal to such reduction or
denial. In the event that a Tax Authority asserts that GB’s or Nuvectra’s treatment of a payment pursuant to this Agreement should be other than as required pursuant to the first sentence of this Section 4.6, GB or Nuvectra, as
appropriate, shall use its commercially reasonable efforts to contest such assertion. 
 Section 4.7 Payment Notices. Any
notice requesting payment to be made pursuant to this Agreement shall (i) indicate the amount due and owing, (ii) set forth in reasonable detail the calculation of such amount, and (iii) include any relevant Tax Records, statement,
bill, or invoice related to such Taxes, costs, expenses, or other amounts due and owing. Payments shall be deemed made when received. 

ARTICLE V 
 TAX CONTESTS 

Section 5.1 Notices. Each Party shall provide prompt notice to the other Party of any pending or threatened Tax Contest of which
it becomes aware relating to (i) Taxes for which it is or may be indemnified by the other Party hereunder, (ii) the qualification of the Spin-off as a Tax-free transaction described under Sections 368(a)(1)(D) and 355 of the Code to GB,
its shareholders, and Nuvectra (except to the extent such shareholders receive cash in lieu of fractional shares or gain is required to be recognized by GB under Section 357 (c) of the Code), or (iii) any change in the Tax treatment
of any other part of the Separation Transactions. Such notice shall contain factual information (to the extent known by the notifying Party or its agents or representatives) describing any threatened Tax Contest or asserted Tax liability, if any, 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 (i) an indemnified Party has knowledge of an asserted Tax liability with respect to a
matter for which it is to be indemnified hereunder, (ii) such Party fails to give the indemnifying Party prompt notice of such asserted Tax liability, and (iii) the indemnifying Party has the right, pursuant to Section 5.2, to control
the Tax Contest relating to such Tax liability, then (A) if the indemnifying Party is precluded from contesting the asserted Tax liability 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 (B) if the indemnifying Party is not precluded from contesting the asserted Tax liability, but such failure to give prompt notice results in a 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 5.2 Control of Tax Contests. 

(a) General Rule. Except as otherwise provided in this Section 5.2, the Preparer of any Tax Return shall be the Controlling Party
with respect to any Tax Contest involving a Tax reported on such Tax Return. 

  
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 (b) Tax Contests Involving Certain Taxes Reported on a Joint Return. 

(i) Non-Preparer as Controlling Party. Except as otherwise provided in Section 5.2(b)(ii), the Non-Preparer shall be entitled to
be the Controlling Party with respect to that portion of any Tax Contest involving a Tax Item or Tax reported on a Joint Return where the Non-Preparer is liable for (and has acknowledged in writing its obligation to indemnify the Preparer for such
Tax Item or Tax under this Agreement) or entitled to take into account such Tax Item or Tax under this Agreement and the portion of the Tax Contest applicable to such Tax Item or Tax reasonably can be addressed on a separable basis from all other
Tax Items reported on such Joint Return or through reasonable, good faith cooperation by the Parties hereto. 
 (ii) Preparer and
Non-Preparer Joint Control. The Preparer and Non-Preparer shall jointly control any Tax Contest (or portion thereof) relating to any Tax attributable to a breach of any of the covenants or representations under ARTICLE VII of this Agreement;
provided, however, the Non-Preparer has acknowledged in writing its obligation to indemnify the Preparer for such Tax under this Agreement. To the extent the Parties control jointly any Tax Contest (or portion thereof):
(A) neither Party shall accept or enter into any settlement of such Tax Contest (or the relevant portion or aspect thereof) without the consent of the other Party, which shall not be unreasonably withheld or delayed; (B) both Parties shall
have a right to review and consent, which consent shall not be unreasonably withheld or delayed, to any correspondence or filings to be submitted to any Taxing Authority with respect to such Tax Contest (or the relevant portion or aspect thereof);
and (C) both Parties shall have the right to attend any formally scheduled meetings with any Taxing Authority or hearings or proceedings before any judicial authority, in each case with respect to such Tax Contest (or the relevant portion or
aspect thereof). 
 (c) Non-Controlling Party Participation Rights. With respect to any Tax Contest involving a Tax Item or Tax for
which the Non-Controlling Party may be liable (either as a result of an increase in a Tax Detriment or a reduction in a Tax Benefit) or may be entitled to take into account under this Agreement (a “Non-Controlling Party Item”),
(i) the Non-Controlling Party shall, at its own cost and expense, be entitled to participate in such Tax Contest, including by attending any formally scheduled meetings with any Tax Authority or hearings or proceedings before any judicial
authority, (ii) the Controlling Party shall keep the Non-Controlling Party reasonably informed and consult in good faith with the Non-Controlling Party and its Tax advisors with respect to any issue relating to such Tax Contest, (iii) the
Controlling Party shall provide the Non-Controlling Party with copies of all correspondence, notices, and other written materials received from any Tax Authority and shall otherwise keep the Non-Controlling Party and its Tax advisors advised of
significant developments in the Tax Contest and of significant communications involving representatives of the Tax Authority, (iv) the Non-Controlling Party may request that the Controlling Party take a position in respect of such Tax Contest,
and the Controlling Party shall do so provided that (A) there exists substantial authority for such position (within the meaning of the accuracy-related penalty provisions of Section 6662 of the Code), (B) the adoption of such
position would not reasonably be expected to increase the Taxes for which the Controlling Party is liable, or decrease the Tax Benefits allocated to the Controlling Party under this Agreement (unless the Non-Controlling Party agrees to indemnify and
hold harmless the Controlling Party from such increase in Taxes or reduction in Tax Benefits), and (C) the Non-Controlling Party agrees to reimburse the Controlling Party for any reasonable third-party costs that are directly attributable to
the Non-Controlling Party’s 

  
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request, to the extent those costs exceed $50,000, (v) the Controlling Party shall provide the Non-Controlling Party with a copy of any written submission to be sent to a Tax Authority prior
to the submission thereof and shall give good faith consideration to any comments or suggested revisions that the Non-Controlling Party or its Tax advisors may have with respect thereto, and (vi) there will be no settlement, resolution or
closing or other agreement with respect thereto without the consent of the Non-Controlling Party, which consent shall not be unreasonably withheld or delayed. 

ARTICLE VI 
 ASSISTANCE AND
COOPERATION 
 Section 6.1 Provision of Information. 

(a) Information with Respect to Joint Returns. At the written request of GB, Nuvectra shall provide GB with all Tax Records or other
information then in the possession of the Nuvectra Group that GB reasonably requests in order for GB to properly and timely file all Joint Returns. Nuvectra shall provide such information no later than thirty days from the date of GB’s written
request. However, if GB requests any such information within the thirty day period ending on the due date of such Joint Return, taking into account applicable extensions, Nuvectra shall provide such information as soon as commercially reasonable. If
Nuvectra fails to satisfy the obligation provided for in the preceding three sentences, then, notwithstanding any other provision of this Agreement, Nuvectra shall be liable for, and shall indemnify and hold harmless each member of the GB Group from
and against, any penalties, interest or additional amounts in respect of Taxes (but excluding any Taxes underlying such amounts) assessed against any member of either Group by reason of any resulting delay in filing such return, to the extent such
penalties, interest or additional amounts in respect of Taxes are solely and directly attributable to the delay in providing such information. If Nuvectra provides such information within the time period described in this Section 6.1(a) in a
reasonable form to permit the timely filing of a Joint Return (or if no such information was requested by GB pursuant to this Section 6. l(a)), then, notwithstanding any other provision of this Agreement, GB shall be liable for, and shall
indemnify and hold harmless each member of the Nuvectra Group from and against, any penalties, interest, or additional amounts in respect of Taxes (but excluding any Taxes underlying such amounts) assessed against any member of either Group by
reason of any delay in filing such Joint Return, to the extent such penalties, interest, or additional amounts in respect of Taxes are directly attributable to the delay in filing. 

(b) Information with Respect to Tax Payments. At the written request of GB, Nuvectra shall provide GB with all Tax Records or other
information then in the possession of the Nuvectra Group that GB reasonably requests in order to determine the amount of Taxes due on any Payment Date with respect to a Joint Return. Nuvectra shall provide such information no later than thirty days
from the date of GB’s written request. However, if GB requests any such information within the thirty day period ending on the Payment Date, Nuvectra shall provide such information as soon as commercially reasonable. If Nuvectra fails to
satisfy the obligation provided for in the preceding three sentences, the indemnification principles of Section 6.1(a) shall apply with respect to any penalties, interest, or additional amounts in respect of Taxes (but excluding any Taxes
underlying such amounts) assessed against any member of either Group by reason of any resulting delay in paying such Taxes, to the extent such penalties, interest, or additional amounts in respect of Taxes are solely and directly attributable to the
delay in providing such information. 

  
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 (c) Information with Respect to Separate Returns. At the written request of the
Preparer, the Non-Preparer shall provide the Preparer with all Tax Records or other information then in the possession of the Non-Preparer’s Group that the Preparer reasonably requests in order to properly and timely file all Separate Returns
for which the Preparer is responsible pursuant to Section 3.2. Such information shall be provided within the time period prescribed by Section 6.1(a) for the provision of information for Joint Returns. If the Non-Preparer fails to satisfy
the obligation provided for in the preceding two sentences, the indemnification principles of Section 6.1(a) shall apply with respect to any penalties, interest, or additional amounts in respect of Taxes (but excluding any Taxes underlying such
amounts) assessed against any member of either Group by reason of any resulting delay in filing such return, to the extent such penalties, interest, or additional amounts in respect of Taxes are solely and directly attributable to the delay in
providing such information. 
 (d) Information with Respect to Pro Forma Stand-Alone Basis Computations and Allocations. At the
written request of GB, Nuvectra shall provide GB with all Tax Records or other information then in the possession of the Nuvectra Group that GB reasonably requests in order for GB to prepare the pro forma stand-alone basis computations and
allocations provided for in Section 2.2(c). Nuvectra shall provide such information no later than thirty days from the date of GB’s written request. 

(e) Information with Respect to Tax Contests. At the written request of the Controlling Party, the Non-Controlling Party shall provide
to the Controlling Party any information then in its possession (including Tax Records) about members of the Non-Controlling Party’s Group which is reasonably necessary in order to handle, settle or conduct any Tax Contest. The Non-Controlling
Party shall provide such information no later than thirty days from the date of the Controlling Party’s written request. If the Non-Controlling Party fails to satisfy the obligation provided for in the preceding two sentences, the Controlling
Party shall have no obligation to indemnify the Non-Controlling Party for any additional Taxes resulting from such Tax Contest, to the extent such additional Taxes are solely and directly attributable to the Non-Controlling Party’s failure to
provide such information. 
 Section 6.2 Reliance on Exchanged Information. If a member of the Nuvectra Group supplies Tax
Records or other information to a member of the GB Group, or a member of the GB Group supplies Tax Records or other information to a member of the Nuvectra Group, and an officer of the requesting Group member intends to sign a statement or other
document under penalties of perjury in reliance upon the accuracy of such Tax Records or other information, then a duly authorized officer of the Group member supplying such Tax Records or other information shall certify to the extent that it is
able, to such officer’s knowledge and belief, the accuracy and completeness of the Tax Records or other information so supplied. 

Section 6.3 Provision of Assistance and Cooperation. 

(a) Assistance with Respect to Joint Returns. At the written request of GB, Nuvectra shall take any action (e.g., filing a ruling
request with the relevant Tax Authority or 

  
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executing a power of attorney) that is reasonably necessary in order for GB to prepare, file, amend or take any other action with respect to any Joint Return, provided, that such action is
permitted under applicable law and would not reasonably be expected to have or cause to have a material adverse effect on any member of the Nuvectra Group. If Nuvectra fails to take any such requested action, the indemnification principles of
Section 6.1(a) shall apply with respect to any penalties, interest, or additional amounts in respect of Taxes (but excluding any Taxes underlying such amounts) assessed against any member of either Group by reason of a failure to take any such
requested action, to the extent such penalties, interest, or additional amounts in respect of Taxes are solely and directly attributable to the failure to take such action. 

(b) Assistance with Respect to Tax Contests. At the written request of the Controlling Party, the Non-Controlling Party shall take any
action (e.g., executing a power of attorney) that is reasonably necessary in order for the Controlling Party to handle, settle or conduct a Tax Contest. Each Party shall assist the other Party in taking any remedial actions that are necessary or
desirable to minimize the effects of any adjustment made by a Tax Authority. The Controlling Party shall reimburse the Non-Controlling Party for any reasonable, third-party, out-of-pocket costs and expenses incurred in connection with this
Section 6.3(b). If the Non-Controlling Party fails to provide assistance in accordance with this Section 6.3(b), the Controlling Party shall have no obligation to indemnify the Non-Controlling Party for any additional Taxes resulting from
the Tax Contest, to the extent such additional Taxes are directly attributable to the Non-Controlling Party’s failure to provide such assistance. 

(c) Cooperation. In addition to the obligations enumerated elsewhere in this Agreement, GB and Nuvectra shall cooperate with each other
and with each other’s agents and representatives, including their respective accounting firms and legal counsel, in connection with Tax matters, including, making available to each other, as reasonably requested and available, copies of all Tax
Returns filed under this ARTICLE IV, and personnel (including officers, employees and agents of the Parties or their Subsidiaries) responsible for preparing, maintaining, and interpreting information and documents relevant to Taxes (including the
pro forma calculations and allocations), and personnel reasonably required as witnesses or for purposes of providing information or documents in connection with any Tax Contest. 

Section 6.4 Retention of Tax Records. Each Party shall preserve, and shall cause other members of its Group to preserve,
all Tax Records that are in such member’s possession and that could affect the Tax liability of any member of the other Group, for so long as the contents thereof may become material in the administration of any matter under applicable Tax Law,
but in any event until the later of (i) the expiration of any applicable statutes of limitation, as extended, and (ii) seven years after the Spin-off Date. 

Section 6.5 Supplemental Rulings and Supplemental Tax Opinions. Each of the Parties agrees that at the reasonable request
of the other Party (the “Requesting Party”), such Party shall cooperate and use reasonable efforts to (and shall cause its Subsidiaries to cooperate and use reasonable efforts to) assist the Requesting Party in obtaining, as expeditiously
as reasonably practicable, a Supplemental Tax Opinion from the Tax Advisors or a private letter ruling from the IRS, including, without limitation, by providing any Tax Materials reasonably requested; provided that no Party shall be required to make
any representation or covenant that it does not reasonably believe is (and will continue to be) true, accurate and consistent with  

  
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historical facts. Within thirty days after receiving an invoice from the other Party therefor, the Requesting Party shall reimburse such Party for all reasonable out-of-pocket costs and expenses
incurred by such Party and the members of its Group in connection with assisting the Requesting Party in obtaining any Supplemental Tax Opinion. 

Section 6.6 Withholding and Reporting. With respect to any stock of GB delivered to any Person, GB and Nuvectra shall
cooperate (and shall cause their respective Subsidiaries to cooperate) so as to permit GB to discharge any applicable Tax withholding and Tax reporting obligations, including the appointment of Nuvectra or one or more of its Subsidiaries as the
withholding and reporting agent if GB or one or more of its Subsidiaries is not otherwise required or permitted to withhold and report under applicable Tax Law. 

ARTICLE VII 
 RESTRICTIONS ON
CERTAIN ACTIONS 
 Section 7.1 General Restrictions. Following the Effective Time, GB and Nuvectra shall not (and shall
cause their respective Subsidiaries not to) take any action that, or fail to take any action the failure of which to take (i) would preclude the Spin-off from qualifying as a Tax-free transaction described under Sections 368(a)(1)(D) and 355 of
the Code to GB, its shareholders, and Nuvectra (except to the extent such shareholders receive cash in lieu of fractional shares or gain is required to be recognized by GB under Section 357(c) of the Code) or (ii) until the second
anniversary of the Effective Time, would be reasonably likely to be inconsistent with, or cause any Person to be in breach of, any representation or covenant, or any material statement, made in the Tax Materials. 

Section 7.2 Certain Nuvectra Actions Beginning on the Spin-off Date. Without limiting the other provisions of this ARTICLE
VII, other than as expressly contemplated in the Separation Agreement or any other Ancillary Agreement, during the two-year period beginning on the Spin-off Date, Nuvectra shall not take, nor enter into a binding agreement to take, any of the
following actions: 
 (i) cause or permit the cessation of the Nuvectra Active Trade or Business; 

(ii) liquidate Nuvectra; 

(iii) sell, transfer or otherwise dispose of (other than sales, transfers or dispositions of inventory in the ordinary course of business)
35% or more of the gross assets of the Nuvectra Active Trade or Business or 35% or more of the consolidated gross assets of the Nuvectra Group (such percentages to be measured based on fair market value as of the Spin-off Date), if such sale,
transfer or other disposition would result in the violation of the “continuity of business enterprise” requirement of Treasury Regulations Section 1.368-1(d) in connection with the Spin-off; or 

(iv) cause or permit to occur any transaction or series of transactions in connection with which one or more Persons would (directly or
indirectly) acquire from any other Person or Persons, an interest in stock of Nuvectra that, when combined with any other 

  
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acquisitions of an interest in stock of Nuvectra that occur after the Spin-off, comprises 30% or more of the value or the total combined voting power of all interests that are treated as
outstanding equity in Nuvectra for U.S. federal income Tax purposes immediately after such transaction or, in the case of a series of related transactions, immediately after any transaction in such series; provided, however,
that the following transactions shall not be taken into account for purposes of this Section 7.2(iv): 
 (1) any issuance of stock that is
an issuance to which Treasury Regulations Section 1.355-7(d)(8) or (9) applies; 
 (2) any adoption of, or issuance of stock
pursuant to, a shareholder rights plan that is described in or is similar to the shareholder rights plan described in Revenue Ruling 90-11, 1900-1 C.B. 10; or 

(3) any redemption or other repurchase of any stock of Nuvectra pursuant to an open market stock repurchase programs meeting the requirements
of Section 4.05(l)(b) of Rev. Proc. 96-30, 1996-1 C.B. 696, as in effect prior to its amendment by Rev. Proc. 2003-48, 2003-2 C.B. 86. 
 in each case,
without (a) first obtaining and delivering to GB, at Nuvectra’s own expense, a Supplemental Tax Opinion or a private letter ruling from the IRS with respect to such action, in each case that is reasonably satisfactory to GB, or
(b) first obtaining the written consent from GB waiving the requirements of the immediately preceding clause (a). 
 Section 7.3
Tax Related Costs. 
 (a) Indemnification by GB. GB shall indemnify and hold the Nuvectra Group harmless from any Tax-Related
Costs arising from the Separation Transactions, except for Tax-Related Costs for which Nuvectra is responsible pursuant to Section 7.3(b). 

(b) Indemnification by Nuvectra. Nuvectra shall indemnify and hold the GB Group harmless from any Tax-Related Costs arising to the
extent such Tax-Related Costs are directly attributable to Nuvectra’s breach of any of its covenants or representations under this ARTICLE VII and provided that such Tax Related Costs are not attributable to (i) the acquisition of all or a
portion of GB’s stock and/or its Subsidiaries’ assets by any means whatsoever by any Person; (ii) the negotiations, understandings, agreements or arrangements by GB 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 causes the distribution of Nuvectra stock pursuant to the Spin-off to be
treated as part of a plan pursuant to which one or more other Persons acquire directly or indirectly stock of GB representing fifty percent (50%) or more (by vote or value) of the outstanding stock of GB; or (iii) any breach by GB of its
covenants or representations set forth in this ARTICLE VII. 

  
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 ARTICLE VIII 

GENERAL PROVISIONS 

Section 8.1 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 by it have been duly authorized by all necessary corporate or other actions, (c) it has duly and validly executed and
delivered this Agreement to be executed and delivered on or prior to the Spin-off Date, and (d) this Agreement is a legal, valid and binding obligation, enforceable against it 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 8.2 Termination. This Agreement may be terminated at any time prior to the Effective Time by and in the sole discretion of
GB without the approval of Nuvectra. In the event of termination pursuant to this Section 8.2, neither Party shall have any liability of any kind to the other Party by reason of this Agreement or such termination. 

Section 8.3 Entire Agreement. This Agreement, together with the Separation Agreement, the Ancillary Agreements, and the Schedules
referenced therein or attached thereto, constitutes the entire agreement and understanding between the Parties with respect to the subject matter hereof and shall supersede all prior written and oral and all contemporaneous oral agreements and
understandings with respect to the subject matter hereof. 
 Section 8.4 Binding Effect; No Third-Party Beneficiaries;
Assignment. This Agreement shall inure to the benefit of and be binding upon the Parties and their respective successors and permitted assigns and nothing in this Agreement, express or implied, is intended to confer upon any Person except the
Parties and their respective Subsidiaries any rights, benefits or remedies of any nature whatsoever under or by reason of this Agreement. This Agreement may not be assigned by either Party, except with the prior written consent of the other Party.

 Section 8.5 Amendment. No change or amendment may be made to this Agreement except by an instrument in writing signed
on behalf of both of the Parties. 
 Section 8.6 Failure or Indulgence Not Waiver; Remedies Cumulative. No failure
or delay on the part of either Party in the exercise of any right hereunder shall impair such right or be construed to be a waiver of, or acquiescence in, any breach of any representation, warranty, covenant, or agreement contained herein, nor shall
any single or partial exercise of any such right preclude other or further exercise thereof or of any other right. All rights and remedies existing under this Agreement are cumulative to, and not exclusive of, any rights or remedies otherwise
available. 
 Section 8.7 Notices. All notices, claims, certificates, requests, demands, and other communications
hereunder shall be in writing and shall be deemed to be duly given (i) when personally delivered, (ii) if mailed by registered or certified mail, postage prepaid, return receipt requested, on the date the return receipt is executed or the
letter is refused by the addressee or its agent, (iii) if sent by overnight courier which delivers only upon the signed receipt of the addressee, on the date the receipt acknowledgment is executed or refused by the addressee or its agent, or
(iv) if sent by facsimile or electronic mail, on the date confirmation of transmission is received (provided that a copy of any notice delivered pursuant to this clause (iv) shall also be sent pursuant to clause (i), (ii), or (iii)),
addressed to the attention of the addressee’s General Counsel at the address of its principal executive office or to such other address or facsimile number for a Party as it shall have specified by like notice. 

  
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 Section 8.8 Counterpart; Facsimile Signatures. This Agreement may be executed in
multiple counterparts, each of which when executed shall be deemed to be an original but all of which together shall constitute one and the same agreement. Delivery of an executed signature page to this Agreement, and any of the other agreements,
documents and instruments contemplated hereby, by facsimile transmission shall be as effective as delivery of a manually signed counterpart hereof or thereof. 

Section 8.9 Severability. If any term or other provision of this Agreement is determined by a non-appealable decision by a court,
administrative agency or arbitrator to be invalid, illegal or incapable of being enforced by any rule of law, or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the
economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to either Party. Upon such determination that any term or other provision is invalid, illegal, or incapable of being enforced, the
court, administrative agency, or arbitrator shall interpret this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner to the end that transactions contemplated hereby are fulfilled to the
fullest extent possible. If any sentence in this Agreement is so broad as to be unenforceable, the provision shall be interpreted to be only as broad as is enforceable. 

Section 8.10 Governing Law. This Agreement shall be governed by, and construed and enforced in accordance with, the substantive
laws of the State of Delaware, without regard to conflicts of laws provisions thereof that would result in the application of the laws of any other jurisdiction. 

Section 8.11 Specific Performance. In the event of any actual or threatened default in, or breach of, any of the terms,
conditions, and provisions of this Agreement, the Party or the Parties who are or are to be thereby aggrieved shall have the right to specific performance and injunctive or other equitable relief of their rights under this Agreement, in addition to
any and all other rights and remedies at law or in equity, and all such rights and remedies shall be cumulative. The Parties agree that the remedies at law for any breach or threatened breach, including monetary damages, are inadequate compensation
for any loss and that any defense in any action for specific performance that a remedy at law would be adequate is waived. Any requirements for the securing or posting of any bond with such remedy are waived. 

Section 8.12 Construction. This Agreement shall be construed as if jointly drafted by Nuvectra and GB and no rule of
construction or strict interpretation shall be applied against either Party. The Parties represent that this Agreement is entered into with full consideration of any and all rights which the Parties may have. The Parties have relied upon their own
knowledge and judgment and upon the advice of the attorneys of their choosing. The Parties have had access to independent legal advice, have conducted such investigations they and their counsel thought appropriate, and have consulted with such other
independent advisors as they and their counsel deemed appropriate regarding this Agreement and their rights and asserted rights in connection therewith. The Parties are not relying upon any representations or statements made by any other Party, or
such other Party’s employees, agents, representatives, or  

  
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attorneys, regarding this Agreement, except to the extent such representations are expressly set forth or incorporated in this Agreement. The Parties are not relying upon a legal duty, if one
exists, on the part of the other Party (or such other Party’s employees, agents, representatives, or attorneys) to disclose any information in connection with the execution of this Agreement or its preparation, it being expressly understood
that neither Party shall ever assert any failure to disclose information on the part of the other Party as a ground for challenging this Agreement. The provisions of Section 1.2 of the Separation Agreement are hereby incorporated herein by
reference, as if set out in detail herein. 
 Section 8.13 Performance. Each Party shall cause to be performed, and hereby
guarantees the performance of, all actions, agreements and obligations set forth herein to be performed by any Subsidiary of such Party. 

Section 8.14 Change in Law. Any reference to a provision of the Code or any other Tax Law shall include a reference to any
applicable successor provision or law. 
 Section 8.15 Expenses. Except as otherwise provided herein, each Party and its
Subsidiaries shall bear their own expenses incurred in connection with the preparation of Tax Returns, Tax Contests, and other matters related to Taxes under the provisions of this Agreement. Nothing in this Section 8.15 or in this Agreement
shall be interpreted to limit any Party’s rights to indemnification under the Separation Agreement for expenses and fees incurred by such Party in enforcing its rights hereunder. 

Section 8.16 Disputes. The Parties will endeavor to resolve in an amicable manner all disputes arising in connection with this
Agreement. The Parties shall negotiate in good faith to resolve any Tax dispute for not less than thirty days. Upon written notice of either Party after thirty days, the matter will be referred to a Tax Adviser acceptable to both Parties. The Tax
Adviser may, in its discretion, obtain services of a third-party necessary to assist it in resolving the dispute. The Tax Advisor shall furnish a written notice to the Parties of its resolution of the dispute as soon as practicable, but in any event
no later than forty-five days after the acceptance of the matter for resolution. Any such resolution shall be binding on the Parties and the Parties shall take, or cause to be taken, any action necessary to implement the resolution. All fees and
expenses of the Tax Advisor shall be shared equally by the Parties. Notwithstanding the foregoing, the Parties may jointly elect to apply the procedures for discussion, negotiation and arbitration set forth in ARTICLE V of the Separation Agreement
to all disputes, controversies, or claims (whether sounding in contract, tort, or otherwise) that may rise out of or relate to, or arise under or in connection with this Agreement, except that, with respect to such disputes, controversies, or
claims, the Applicable Deadline (as defined in Section 5.3(b) of the Separation Agreement) shall be sixty days after the later of (i) the applicable statute of limitations with respect to any Tax Item that is the subject of such dispute,
controversy, or claim and (ii) the date that final action is taken by the applicable Tax Authority with respect to a Tax Contest relating to any Tax Item that is the subject of such dispute, controversy, or claim. 

  
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 Section 8.17 Confidentiality. The provisions of Section 6.11 of the Separation
Agreement shall govern the confidentiality, disclosure, and use of Confidential Information (as defined therein) relating to Taxes. 

[Signature Page Follows] 

  
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 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed in their names
by a duly authorized officer as of the date first written above. 
  

			
		 	GREATBATCH, INC.
		
	By:	 	 /s/ Thomas J. Hook

	Name:	 	Thomas J. Hook
	Title:	 	President and Chief Executive Officer
		
		 	QIG GROUP, LLC
		 	(to be converted into Nuvectra Corporation)
		
	By:	 	 /s/ Scott F. Drees

	Name:	 	Scott F. Drees
	Title:	 	Chief Executive Officer

  
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 APPENDIX A 

The following examples illustrate the operation of various provisions of this agreement. However, no example is intended to illustrate every
provision of this Agreement that may be relevant thereto. 
 Except as otherwise indicated, each example assumes: 

 

	 	(i)	an average Tax rate of 35%, 

  

	 	(ii)	QiG converts into Nuvectra immediately before the Spin-off Date, 

  

	 	(iii)	prior to the conversion QiG is a disregarded entity for U.S. federal income Tax purposes, 

  

	 	(iv)	the Spin-off Date is March 14, 2016, and 

  

	 	(v)	for U.S. federal income Tax purposes the Spin-off qualifies as a Tax-free transaction described under Sections 368(a)(1)(D) and 355 of the Code to GB, its shareholders, and Nuvectra (except to the extent such
shareholders receive cash in lieu of fractional shares). 

 Example 1. General Tax Allocation on Joint Return. 

On its U.S. federal consolidated income Tax Return for the Tax Year that begins on January 1, 2016, and ends on December 31, 2016,
the GB consolidated group reports $200x of consolidated net taxable income, no credits, and a Tax liability of $70x (35% times $200x). The $200x of consolidated net taxable income reported on such Tax Return consists of $300x in Tax Detriments and
$100x in Tax Benefits. 
 Pursuant to Section 2.2(c), the Tax Detriments consist of $200x of income more closely related to the GB
Business, and $100x of income more closely related to the Nuvectra Business. Similarly, the Tax Benefits consist of (i) $50x of deductions more closely related to the GB Business and (ii) $50x of deductions more closely related to the
Nuvectra Business. 
 Pursuant to Section 2.1, each of GB and Nuvectra will be liable for its allocable portion of the $70x of Tax
shown on the U.S. federal consolidated income Tax Return. Pursuant to Section 2.2(c), each Party’s allocable portion of such Tax is determined by taking into account on a pro forma stand-alone basis the Tax Items shown on such Tax Return
and allocated to such Party pursuant to Section 2.1. 
 Thus, GB’s allocable portion of such Tax is determined by taking into
account on a pro forma stand-alone basis: 
  

	 	(i)	pursuant to Section 2.1(a)(i) and 2.2(b), the $200x of Tax Detriments more closely related to the GB Business because they are deemed to arise from the operation or ownership of the GB Business, and

  
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	 	(ii)	pursuant to Section 2.1(a)(ii) and 2.2(b), the $50x of Tax Benefits more closely related to the GB Business because they are deemed to arise from the operation or ownership of the GB Business. 

Taking into account such Tax Items on a pro forma stand-alone basis, GB’s allocable portion of the $70x of Tax therefore is $52.5x
(($200-$50) times 35%). 
 In addition, Nuvectra’s allocable portion of such Tax is determined by taking into account: 

 

	 	(i)	pursuant to Section 2.1(b)(i) and 2.2(b), the $100x of Tax Detriments more closely related to the Nuvectra Business because they are deemed to arise from the operation or ownership of the Nuvectra Business, and

  

	 	(ii)	pursuant to Section 2.1(b)(ii) and 2.2(b), the $50x of Tax Benefits more closely related to the Nuvectra Business because they are deemed to arise from the operation or ownership of the Nuvectra Business.

 Taking into account such Tax Items on a pro forma stand-alone basis, Nuvectra’s allocable portion of the $70x of Tax
therefore is $17.5x (($100-$50) times 35%). 
 Because the 2016 U.S. federal consolidated income Tax Return includes Tax Items attributable
to the GB Business and Tax Items attributable to the Nuvectra Business, it will be a Joint Return. Pursuant to Section 3.1, GB is responsible for preparing and timely filing the Joint Return. Pursuant to Section 3.3(e)(ii), GB must make
the Joint Return available to Nuvectra no later than sixty days before the Joint Return is due, taking into account any applicable extensions. 

Pursuant to Section 4.1, GB must pay the $70x of Tax to the Tax Authority. Pursuant to Section 4.2(b), Nuvectra must remit the
amount for which it is liable ($17.5x) to GB within thirty days after receiving written notification requesting such amount. If payment is not made within thirty days, Nuvectra must pay interest thereafter on the amount past due at the rate and as
determined under Section 4.5. 
 Pursuant to Section 4.6, the Parties would ordinarily characterize Nuvectra’s payment of
$17.5x in the same manner as if it were a distribution to GB immediately prior to the Effective Time or as a liability. 
 Example 2.
Separate Return filed by Nuvectra. 
 On its 2016 U.S. federal consolidated income Tax Return, the GB consolidated group reports $200x
of consolidated net taxable income, no credits, and a Tax liability of $70x (35% times $200x). Of the $200x of consolidated net taxable income reported on such Tax Return, $150x consists of Tax Items that are deemed to arise from the operation or
ownership of the GB Business. The remaining $50x of consolidated net taxable income consists of Tax Items that are deemed to arise from the operation or ownership of the Nuvectra Business. The Nuvectra Group had total consolidated net taxable income
of $125x during the period beginning January 1, 

  
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2016, and ending December 31, 2016. Because GB’s 2016 U.S. federal consolidated income Tax Return includes Tax Items attributable to the GB Business and Tax Items attributable to the
Nuvectra Business, it will be a Joint Return. 
 Pursuant to Section 3.2, Nuvectra is responsible for preparing and timely filing a
Separate Return for the Nuvectra Group for the period beginning immediately after the Spin-off Date, and ending on December 31, 2016. As a result, Nuvectra will have the right to make those determinations described in Section 3.3(a) with
respect to the Separate Return, subject to the limitations in Section 3.3(c), Section 3.3(e), and Section 3.3(g). Pursuant to Section 3.3(g), Nuvectra is required to file its related Separate Return in a manner consistent with
the reporting of the allocated Tax Items on the Joint Return, except as required by applicable Tax law. 
 As a result, $50x of
Nuvectra’s 2016 net income is allocated to the Joint Return and the remainder of Nuvectra’s 2016 net income (i.e., $75x) is allocated to its Separate Return. 

Example 3. Separate Returns and State Taxes. 

On a monthly New York sales Tax Return during 2016, $50x of sales Tax must be reported. For purposes of this example, it is assumed that such
Tax Return was not filed prior to the Effective Time of this Agreement. The $50x of sales Tax reported on such Tax Return consists of Tax Detriments that are deemed to arise from the operation or ownership of the Nuvectra Business. Because such Tax
Return includes Tax Items attributable only to the Nuvectra Business, it will be a Separate Return. 
 Because such Tax Return includes Tax
Items attributable only to the Nuvectra Business, it will be a Separate Return. Pursuant to Section 3.2, Nuvectra is responsible for preparing and timely filing such Separate Return and will have the right to make those determinations described
in Section 3.3(a) with respect to the Separate Return, subject to the limitations in Section 3.3(c) and Section 3.3(e). Pursuant to Section 4.1, Nuvectra must pay the $50x of sales Tax shown on the Separate Return to the proper
Tax Authority. Furthermore, pursuant to Section 5.2(a), Nuvectra will have primary responsibility, control and discretion in handling, settling, or conducting any Tax Contest with respect to such Tax Return, subject to the limitations in
Section 5.2(c). 
 Alternatively, if the $50x of Taxes shown on the New York sales Tax Return described above consists of Tax
Detriments arising from the operation or ownership of the Nuvectra Business and Tax Detriments arising from the operation or ownership of the GB Business, such Tax Return will be a Joint Return. In such case, pursuant to Section 3.1, GB will be
responsible for preparing and timely filing such Joint Return and will have the right to make those determinations described in Section 3.3(a) with respect to the Joint Return, subject to the limitations in Section 3.3(e) and
Section 3.3(e). Pursuant to Section 4.1, GB must pay the $50x of sales Tax shown on the Joint Return to the proper Tax Authority, but will be entitled to reimbursement from Nuvectra pursuant to Section 4.2(b) to the extent that
Nuvectra is liable for any portion of such Tax pursuant to Section 2.1. 
 Furthermore, pursuant to Section 5.2(b)(ii), Nuvectra
will be the Controlling Party with respect to any Tax Contest involving a Tax reported on such Joint Return. However, GB 

  
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will have Non-Controlling Party participation rights pursuant to Section 5.2(c) with respect to such Tax Contest if such Tax Context could result in the increase of an GB Tax Detriment or
the reduction of an GB Tax Benefit. 
 Example 4. NOL Carryback by Nuvectra. 

On its 2016 U.S. federal consolidated income Tax Return, the GB consolidated group reports $200x of consolidated net taxable income, no
credits, and a Tax liability of $70x (35% times $200x). Of the $200x of consolidated net taxable income reported on such Tax Return, $190x consists of Tax Items that are deemed to arise from the operation or ownership of the GB Business. The
remaining $10x of consolidated net taxable income consists of Tax Items that are deemed to arise from the operation or ownership of the Nuvectra Business. 

In addition, $150x of consolidated net taxable income and no credits arise from the operation or ownership of the Nuvectra Business during the
period beginning immediately after the Spin-off Date, and ending on December 31, 2016, but, in 2017, a $150x net operating loss (“NOL”) arises from the operation or ownership of the Nuvectra Business. 

Under applicable Tax Law, Nuvectra’s short Tax Year ending on the Spin-off Date will be considered the same Tax Year as GB’s Tax
Year ending on December 31, 2016 (and which includes Nuvectra’s short Tax Year), but will be considered a different Tax Year from Nuvectra’s short Tax Year that begins after the Spin-off Date. Under applicable Tax Law, the carryback
period for the NOL includes GB’s Tax Year ending on December 31, 2016 followed by Nuvectra’s short Tax Year beginning immediately after the Spin-off Date and ending on December 31, 2016. Pursuant to Section 3.3(c), Nuvectra
is not permitted to make the election under Section 172(b)(3) of the Code to relinquish the carryback period for the NOL. 
 Under
applicable Tax Law, the NOL would be carried back to GB’s 2016 Joint Return and GB generally would be entitled to utilize that portion of the NOL equal to the net income generated by the Nuvectra Group during the period Nuvectra was considered
a member of the GB consolidated group. See Treasury Regulations Sections 1.1502-21(c) and 1.1502-21(c)(1)(iii), Example 3 (illustrating the SRLY limitations on NOL carrybacks from a separate return year to a consolidated return year).
Pursuant to Section 2.1(b)(ii) and Section 2.2(a)(i), Nuvectra would be entitled to take such portion of the NOL into account in determining Nuvectra Taxes for the 2016 Joint Return, but only to the extent that Nuvectra would be allowed to
take such portion into account under applicable Tax Law on a pro forma stand-alone basis for such Tax Year. Pursuant to Section 2.1(a)(iv), GB would be entitled to take the remaining portion of the NOL, as permitted under applicable Tax Law,
into account in determining GB Taxes and would not be required to compensate Nuvectra therefor. 
 Any portion of the NOL that was not used
on the 2016 Joint Return would be carried forward and utilized as a Tax Benefit by Nuvectra on its 2016 Separate Return (assuming such use was permitted under applicable Tax Law). 

  
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 Example 5. NOL Carryforward as a Tax Benefit on Joint Return. 

On its 2016 U.S. federal consolidated income Tax Return, and without taking into account any NOL carryforwards or NOL carrybacks, the GB
consolidated group reports $150x of consolidated net taxable income, no credits, and a Tax liability of $52.5x (35% times $150x). All $150x of consolidated net taxable income reported on such Tax Return consists of Tax Items that are deemed to arise
from the operation or ownership of the GB Business. In addition, a $200x NOL arose from the operation or ownership of the Nuvectra Business in 2015 and is carried forward to the 2016 Joint Return under applicable Tax Law. 

Pursuant to Section 2.1(a)(iv), GB is entitled to take the NOL carryforward into account as a Tax Benefit in determining GB Taxes in
2016, and although the NOL arose from the operation or ownership of the Nuvectra Business, GB will not be required to compensate Nuvectra therefor. Thus, in 2016, GB will be obligated to pay Tax of $0x (35% times $150x - $150x)) to the Tax Authority
and $0x to Nuvectra. 
 Under applicable Tax Law, any remaining NOL carryforward may be utilized only by GB because such NOL arose while
Nuvectra was disregarded as separate from GB for U.S. federal income Tax purposes. GB will not be required to compensate Nuvectra for the use of any such NOL carryforward. 

Example 6. Difference Between Tax Shown on Joint Return and Taxes Computed on a Pro Forma Stand-Alone Basis. 

On its 2016 U.S. federal consolidated income Tax Return, the GB consolidated group reports a total Tax liability of $100x. On a pro forma
stand-alone basis, GB Taxes would equal $90x, which Taxes would be composed of $70x of “regular tax” and $20x of “alternative minimum tax” imposed under Section 55 of the Code. On a pro forma stand-alone basis, Nuvectra
Taxes would equal $30x, which Taxes would be composed of $30x of “regular tax” and no “alternative minimum tax.” 

Pursuant to Section 2.2(d), because the sum of GB Taxes and Nuvectra Taxes ($120x or ($90x + $30x)) is different from the amount of Tax
shown on such Joint Return ($100x), the $100x of Tax shown on the Joint Return is allocated $75x ($100x times ($90x/$120x)) to GB and $25x ($100x time ($30x/$120x)) to Nuvectra. 

Example 7. Average Tax Rate. 

On a 2016 Joint Return, GB reports $200x of net taxable income and no credits. Assume that, under applicable Tax Law, the first $50x of net
taxable income is subject to a Tax rate of 10%, the next $50x of net taxable income is subject to a Tax rate of 20%, and the remaining $100x of net taxable income is subject to a Tax rate of 25%. As a result, the Joint Return reports a Tax liability
of $40x ((10% times $50x) + (20% times $50x) + (25% times $100x)). The average Tax rate on such Tax Return is 20% ($40x/$200x). Accordingly, pursuant to Section 2.2(a)(iv), a 20% Tax rate applies for purposes of computing Taxes on a pro forma
stand-alone basis. 

  
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 Example 8. Breach of Covenants. 

Immediately before the Spin-off, GB held the Nuvectra stock with a fair market value of $300x and a basis of $0x. In 2017, Nuvectra enters into
a merger whereby an acquiring corporation acquires all of the assets and liabilities of Nuvectra and Nuvectra’s shareholders receive stock in the acquiring corporation in exchange for all of their stock in Nuvectra. Assume that entering into
the merger causes the Spin-off to be taxable to GB under Section 355(e). 
 As a result of the application of Section 355(e), GB
will be required to recognize all of the realized gain on the Spin-off. Accordingly, ignoring any available NOL, the Separation Transactions result in a net Tax liability of $105x (35% times ($300x gain on the Spin-off). 

Pursuant to Section 2.1(b)(iii), all $105x of the Tax (35% times $300x) resulting from the application of Section 355(e) would be
allocated to Nuvectra because entering into the merger is a breach of covenant under Article VII that causes Section 355(e) to apply to the Spin-off. 

Pursuant to Section 4.2(b), Nuvectra must remit the $105x of Taxes related to application of Section 355(e) to the Spin-off to GB
within thirty days after receiving written notification requesting such amount. Pursuant to Section 2.1(b)(ii) and (iv), the result would be the same even if an NOL exists that could offset any gain required to be recognized as a result of the
merger. Pursuant to Section 4.6, the Parties would ordinarily characterize Nuvectra’s payment of $105x in the same manner as if it were a distribution to GB immediately prior to the Effective Time or as a liability. 

Example 9. Redetermination of Tax Detriments Allocated to GB. 

On its 2016 U.S. federal consolidated income Tax Return, the GB consolidated group reports no consolidated net taxable income, an NOL of $100x,
and no Tax liability. $50x of the NOL consists of Tax Items that are deemed to arise from the operation or ownership of the GB Business and the remaining $50x consists of Tax Items that are deemed to arise from the operation or ownership of the
Nuvectra Business. Because no Tax is owed on the Joint Return, no payments are required to be made under this Agreement. 
 In 2018, the Tax
Authority initiates a Tax Contest with respect to the 2016 Joint Return. In the Tax Contest, the Tax Authority asserts that an additional $100x of taxable income must be reported on the 2016 Joint Return. Such additional taxable income arose from
the GB Business. Pursuant to Section 5.2(b)(ii), GB is the Controlling Party with respect to the Tax Contest because it involves a Tax reported on a Joint Return for which GB is liable. On December 31, 2016, a date subsequent to the
Spin-off Date, a closing agreement is entered into with the Tax Authority whereby the GB consolidated group is required to recognize $100x of additional taxable income in 2016 in settlement of the Tax Contest. 

As a result of the closing agreement, Section 4.3(b) requires that the amounts paid under this Agreement be redetermined. Under
applicable Tax Law and pursuant to Section 2.1(a)(ii) and Section 2.1(a)(iv), GB is entitled to use the $100x NOL as a Tax Benefit to completely offset the additional taxable income recognized as a result of the Tax Contest. GB is not
required to reimburse Nuvectra for the use of the $50x portion of such NOL that arose from the operation or ownership of the Nuvectra Business. 

  
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 Example 10. Redetermination of Tax Detriments Allocated to Nuvectra. 

On its 2015 U.S. federal consolidated income Tax Return, the GB consolidated group reports no consolidated net taxable income, an NOL of $100x,
and no Tax liability. $50x of the NOL consists of Tax Items that are deemed to arise from the operation or ownership of the GB Business and the remaining $50x consists of Tax Items that are deemed to arise from the operation or ownership of the
Nuvectra Business. Because no Tax is owed on the Joint Return, no payments are required to be made under this Agreement. 
 In 2017, the Tax
Authority initiates a Tax Contest with respect to the 2015 Joint Return. In the Tax Contest, the Tax Authority asserts that an additional $100x of taxable income must be reported on the 2015 Joint Return. Such income arose from the Nuvectra
Business. 
 On December 31, 2017, a date subsequent to the Spin-off Date, a closing agreement is entered into with the Tax Authority
whereby the GB consolidated group is required to recognize $100x of additional taxable income in 2015 in settlement of the Tax Contest. Pursuant to Section 5.2(b)(ii), except as provided in Section 5.2(b)(i), Nuvectra will be the
Controlling Party with respect to the Tax Contest. In such case, pursuant to Section 5.2(c), GB would have Non-Controlling Party participation rights with respect to the Tax Contest because such Tax Contest may result in the reduction of a GB
Tax Benefit. 
 As a result of the closing agreement, Section 4.3(b) requires that the amounts paid under this Agreement be
redetermined. Under applicable Tax Law, Nuvectra and GB are entitled to use the $100x NOL to completely offset the additional taxable income recognized as a result of the Tax Contest. Therefore, no additional Tax is owed as a result of the closing
agreement. Pursuant to Section 2.1(b)(ii) and Section 2.1(b)(iv), Nuvectra is entitled to take the entire $100x NOL into account as a Tax Benefit in calculating Nuvectra Taxes, which results in Nuvectra Taxes of $0x ($100x - $100x).
Nuvectra is not required to reimburse GB for the use of the $50x portion of such NOL that arose from the operation or ownership of the GB Business. 

Alternatively, assume that the 2015 Joint Return did not report an NOL. As a result, the closing agreement results in $100x of consolidated
net taxable income, no credits, and a Tax liability of $35x (35% times $100x). All $100x of the consolidated net taxable income consists of Tax Items that are deemed to arise from the operation or ownership of the Nuvectra Business. Taking into
account such Tax Items on a pro forma stand-alone basis, Nuvectra’s allocable portion of the $35x of Tax is $35x ($100x times 35%). 

Pursuant to Section 4.1, GB must pay the $35x of Tax to the Tax Authority. Pursuant to Section 4.2(b), Nuvectra must remit the
amount for which it is liable ($35x) to GB within thirty days after receiving written notification requesting such amount. 

  
 - 31 -EX-10.3

 Exhibit 10.3 

EMPLOYEE MATTERS AGREEMENT 

between 
 GREATBATCH, INC. 

and 
 QIG GROUP, LLC 

(to be converted into Nuvectra Corporation) 

dated as of March 14, 2016 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	PAGE	 
	 ARTICLE I DEFINITIONS
	  	 	1	  
	 Section 1.1
	 	 Definitions
	  	 	1	  
	 Section 1.2
	 	 Interpretation
	  	 	4	  
		
	 ARTICLE II ASSIGNMENT OF EMPLOYEES
	  	 	6	  
	 Section 2.1
	 	 Active Employees
	  	 	6	  
	 Section 2.2
	 	 Former Employees
	  	 	7	  
	 Section 2.3
	 	 Employment Law Obligations
	  	 	7	  
	 Section 2.4
	 	 Employee Records
	  	 	8	  
		
	 ARTICLE III EQUITY AND INCENTIVE COMPENSATION PLANS
	  	 	10	  
	 Section 3.1
	 	 General Principles
	  	 	10	  
	 Section 3.2
	 	 Equity Incentive Programs
	  	 	10	  
	 Section 3.3
	 	 Section 16(b) of the Exchange Act; Code Sections 162(m) and 409A
	  	 	14	  
	 Section 3.4
	 	 Cash Incentive Awards
	  	 	14	  
		
	 ARTICLE IV GENERAL PRINCIPLES FOR ALLOCATION OF LIABILITIES
	  	 	14	  
	 Section 4.1
	 	 General Principles
	  	 	14	  
	 Section 4.2
	 	 Sponsorship and/or Establishment of Nuvectra Plans
	  	 	16	  
	 Section 4.3
	 	 Service Credit
	  	 	16	  
	 Section 4.4
	 	 Plan Administration
	  	 	17	  
		
	 ARTICLE V 401(K) PLANS
	  	 	17	  
	 Section 5.1
	 	 General Principles
	  	 	17	  
	 Section 5.2
	 	 Transfer of Accounts
	  	 	17	  
	 Section 5.3
	 	 Employer Securities
	  	 	18	  
	 Section 5.4
	 	 Third-Party Vendors
	  	 	18	  
		
	 ARTICLE VI WELFARE PLANS
	  	 	18	  
	 Section 6.1
	 	 Establishment of Nuvectra Welfare Plans
	  	 	18	  
	 Section 6.2
	 	 Transitional Matters Under Nuvectra Welfare Plans
	  	 	19	  
	 Section 6.3
	 	 Credit for Deductibles Under Medical and Dental Plans
	  	 	20	  
	 Section 6.4
	 	 Insurance Contracts
	  	 	20	  
	 Section 6.5
	 	 Third-Party Vendors
	  	 	20	  
		
	 ARTICLE VII WORKERS’ COMPENSATION AND UNEMPLOYMENT COMPENSATION
	  	 	21	  
		
	 ARTICLE VIII EMPLOYMENT AGREEMENTS, SEVERANCE AND OTHER MATTERS
	  	 	21	  
	 Section 8.1
	 	 Employment Agreements
	  	 	21	  
	 Section 8.2
	 	 Severance
	  	 	21	  
	 Section 8.3
	 	 Accrued Time Off
	  	 	21	  
	 Section 8.4
	 	 Leaves of Absence
	  	 	21	  
	 Section 8.5
	 	 Restrictive Covenants in Employment and Other Agreements
	  	 	22	  

 TABLE OF CONTENTS 

(Continued) 
  

							
	 	 	 	  	PAGE	 
	 ARTICLE IX MISCELLANEOUS
	  	 	23	  
	 Section 9.1
	 	 Preservation of Rights to Amend
	  	 	23	  
	 Section 9.2
	 	 Confidentiality
	  	 	23	  
	 Section 9.3
	 	 Administrative Complaints/Litigation
	  	 	23	  
	 Section 9.4
	 	 Reimbursement and Indemnification
	  	 	23	  
	 Section 9.5
	 	 Costs of Compliance with Agreement
	  	 	24	  
	 Section 9.6
	 	 Fiduciary Matters
	  	 	24	  
	 Section 9.7
	 	 Form S-8
	  	 	24	  
	 Section 9.8
	 	 Entire Agreement
	  	 	24	  
	 Section 9.9
	 	 Binding Effect; No Third-Party Beneficiaries; Assignment
	  	 	24	  
	 Section 9.10
	 	 Amendment; Waivers
	  	 	25	  
	 Section 9.11
	 	 Remedies Cumulative
	  	 	25	  
	 Section 9.12
	 	 Notices
	  	 	25	  
	 Section 9.13
	 	 Counterparts; Facsimile Signatures
	  	 	25	  
	 Section 9.14
	 	 Severability
	  	 	25	  
	 Section 9.15
	 	 Governing Law
	  	 	26	  
	 Section 9.16
	 	 Performance
	  	 	26	  
	 Section 9.17
	 	 Construction
	  	 	26	  
	 Section 9.18
	 	 Effect if Distribution Does Not Occur
	  	 	26	  

  
 - ii - 

 EMPLOYEE MATTERS AGREEMENT 

This EMPLOYEE MATTERS AGREEMENT dated as of March 14, 2016 by and between Greatbatch, Inc., a Delaware corporation
(“Greatbatch”), and QiG Group, LLC, a Delaware limited liability company (to be converted into Nuvectra Corporation, a Delaware corporation) (“Nuvectra”). Greatbatch and Nuvectra are sometimes referred to herein, individually, as
a “Party,” and, collectively, as the “Parties.” 
 RECITALS 

WHEREAS, Nuvectra is an indirect subsidiary of Greatbatch; and 

WHEREAS, the Board of Directors of Greatbatch has determined that it would be appropriate and in the best interests of Greatbatch and
its stockholders to effectuate the Distribution as described in the Separation and Distribution Agreement between Greatbatch and Nuvectra dated as of the date hereof (the “Separation Agreement”); and 

WHEREAS, the Separation Agreement provides, among other things, subject to the terms and conditions thereof, for the Distribution and
for the execution and delivery of certain other agreements, including this Agreement, in order to facilitate and provide for the separation of Nuvectra and its subsidiaries from Greatbatch; and 

WHEREAS, in order to ensure an orderly transition under the Separation Agreement, it will be necessary for the Parties to allocate
between them assets, liabilities and responsibilities with respect to certain employee compensation, benefit plans and programs, and certain employment matters. 

NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements herein contained, the Parties, intending to be
legally bound, agree as follows: 
 ARTICLE I 

DEFINITIONS 
 Section 1.1
Definitions. As used in this Agreement, the following terms shall have the meanings set forth in this Section 1.1: 

“Adjusted Greatbatch Awards” means Adjusted Greatbatch Options, Adjusted Greatbatch RSAs, and Adjusted Greatbatch RSUs. 

“Adjusted Greatbatch Options” means Greatbatch Options adjusted as set forth in Section 3.2(a)(i). 

“Adjusted Greatbatch RSAs” means Greatbatch RSAs adjusted as set forth in Section 3.2(a)(ii). 

“Adjusted Greatbatch RSUs” means Greatbatch RSUs adjusted as set forth in Section 3.2(a)(iii). 

 “Adjusted Nuvectra Stock Value” means the product obtained by multiplying (i) the
Nuvectra Stock Value by (ii) the Distribution Ratio. 
 “Agreement” means this Employee Matters Agreement together with all
Schedules hereto and all amendments, modifications and changes hereto and thereto entered into in accordance with Section 9.10. 

“COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985, as codified at Part 6 of Subtitle B of Title I of ERISA
and at Code Section 4980B. 
 “Code” means the Internal Revenue Code of 1986, as amended. 

“Distribution Ratio” means the number of shares of Nuvectra Common Stock to be distributed for each share of Greatbatch Common
Stock. 
 “Employee” means any Greatbatch Employee, Former Greatbatch Employee, Nuvectra Employee or Former Nuvectra Employee.

 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended. 

“Former Greatbatch Employee” has the meaning set forth in Section 2.2(b). 

“Former Nuvectra Employee” has the meaning set forth in Section 2.2(c). 

“Greatbatch” has the meaning set forth in the preamble to this Agreement. 

“Greatbatch 401(k) Plan” means the Greatbatch, Inc. 401(k) Retirement Plan. 

“Greatbatch Employee” means any individual who is employed by a member of the Greatbatch Group on the Distribution Date other than
the Nuvectra Employees and, only for purposes of Article III and any defined terms as used therein, as of the day after the Distribution Date. 

“Greatbatch FSA” has the meaning set forth in Section 6.3(b). 

“Greatbatch Group” means Greatbatch and each Subsidiary of Greatbatch, collectively, other than Nuvectra and each Nuvectra
Subsidiary. 
 “Greatbatch Legacy Equity Plan” means any equity plan sponsored or maintained by Greatbatch immediately prior to
the Distribution Date. 
 “Greatbatch Option” means an option to purchase shares of Greatbatch Common Stock granted and
outstanding immediately prior to the Distribution Date pursuant to any of the Greatbatch Legacy Equity Plans. 
 “Greatbatch
Post-Distribution Stock Value” means the closing per-share price, as reported on the NYSE, of a share of Greatbatch Common Stock on the Distribution Date. 

  
 - 2 - 

 “Greatbatch RSA” means a restricted stock award issued and outstanding immediately
prior to the Distribution Date under any of the Greatbatch Legacy Equity Plans. 
 “Greatbatch RSU” means a restricted stock unit
award issued and outstanding immediately prior to the Distribution Date under any of the Greatbatch Legacy Equity Plans. 
 “Greatbatch
Welfare Plan” means the Greatbatch, Inc. Health and Welfare Benefit Plan sponsored or maintained by any one or more members of the Greatbatch Group on the Distribution Date. 

“Nasdaq” means the NASDAQ Stock Market. 

“Nuvectra” has the meaning set forth in the preamble to this Agreement. 

“Nuvectra 401(k) Plan” has the meaning set forth in Section 5.1. 

“Nuvectra 401(k) Plan Beneficiaries” has the meaning set forth in Section 5.1. 

“Nuvectra Awards” means Nuvectra Options, Nuvectra RSAs, and Nuvectra RSUs. 

“Nuvectra Employee” means any individual who is employed by a member of the Nuvectra Group on the Distribution Date or will be
transferred to a member of the Nuvectra Group and is listed on Schedule II to the Separation Agreement; provided, however, that for purposes of Article III and any defined terms as used therein, “Nuvectra Employee” means any
such individual who is employed by a member of the Nuvectra Group on the date immediately following the Distribution Date. 
 “Nuvectra
Equity Plan” means the Nuvectra Corporation 2016 Equity Incentive Plan adopted by the board of managers of Nuvectra and approved by Nuvectra’s sole membership interest holder prior to the Distribution under which the Nuvectra equity-based
awards described in Article III shall be issued. 
 “Nuvectra FSA” has the meaning set forth in Section 6.3(b). 

“Nuvectra Group” means, collectively, Nuvectra and each Nuvectra Subsidiary. 

“Nuvectra Option” means an option to purchase shares of Nuvectra Common Stock granted pursuant to the Nuvectra Equity Plan as
described in Section 3.2(a)(i). 
 “Nuvectra RSA” means a restricted stock award for shares of Nuvectra Common Stock
issued under the Nuvectra Equity Plan as described in Section 3.2(a)(ii). 
 “Nuvectra RSU” means a restricted stock
unit for shares of Nuvectra Common Stock issued under the Nuvectra Equity Plan as described in Section 3.2(a)(iii). 

“Nuvectra Stock Value” means the closing per-share price, as reported on Nasdaq, of Nuvectra Common Stock on the Distribution Date
(or, if the Distribution Date is not a Nasdaq trading day, on the first trading day following the Distribution Date). 

  
 - 3 - 

 “Nuvectra Subsidiary” means any Subsidiary of Nuvectra on the Distribution Date. 

“Nuvectra Welfare Plan” has the meaning set forth in Section 6.1. 

“Nuvectra Welfare Plan Participants” has the meaning set forth in Section 6.1. 

“NYSE” means the New York Stock Exchange. 

“Participating Nuvectra Employers” has the meaning set forth in Section 6.1. 

“Participation Period” has the meaning set forth in Section 6.3(b). 

“Party” or “Parties” has the meaning set forth in the preamble to this Agreement. 

“Privacy Contract” means any contract entered into in connection with applicable privacy protection laws or regulations. 

“Separation Agreement” has the meaning set forth in the recitals to this Agreement. 

“WARN” means the Worker Adjustment and Retraining Notification Act, and any applicable state or local law equivalent. 

“Welfare Plan” means a “welfare plan” as defined in ERISA Section 3(1) and also means a cafeteria plan under Code
Section 125 and any benefits offered thereunder, including pre-tax premium conversion benefits, a dependent care assistance program, contribution funding toward a health savings account and flex or cashable credits. 

Capitalized terms used, but not otherwise defined in this Agreement, shall have the respective meanings assigned to such terms in the
Separation Agreement. 
 Section 1.2 Interpretation. In this Agreement, unless the context clearly indicates otherwise: 

(a) words used in the singular include the plural and words used in the plural include the singular; 

(b) if a word or phrase is defined in this Agreement, its other grammatical forms, as used in this Agreement, shall have a corresponding
meaning; 
 (c) reference to any gender includes the other gender and the neuter; 

(d) the words “include,” “includes” and “including” shall be deemed to be followed by the words “without
limitation;” 
 (e) the words “shall” and “will” are used interchangeably and have the same meaning; 

(f) the word “or” shall have the inclusive meaning represented by the phrase “and/or;” 

  
 - 4 - 

 (g) relative to the determination of any period of time, “from” means “from and
including,” “to” means “to but excluding” and “through” means “through and including;” 
 (h)
all references to a specific time of day in this Agreement shall be based upon Eastern Standard Time or Eastern Daylight Savings Time, as applicable, on the date in question; 

(i) whenever this Agreement refers to a number of days, such number shall refer to calendar days unless otherwise specified; 

(j) accounting terms used herein shall have the meanings historically ascribed to them by Greatbatch and its Subsidiaries, including Nuvectra
and the Nuvectra Subsidiaries for this purpose, in its and their internal accounting and financial policies and procedures in effect immediately prior to the date of this Agreement; 

(k) reference to any Article, Section or Schedule means such Article or Section of, or such Schedule to, this Agreement, as the case may be,
and references in any Section or definition to any clause means such clause of such Section or definition; 
 (l) the words “this
Agreement,” “herein,” “hereunder,” “hereof,” “hereto,” and words of similar import shall be deemed references to this Agreement as a whole and not to any particular Section or other provision of this
Agreement; 
 (m) reference to any agreement, instrument or other document means such agreement, instrument or other document as amended,
supplemented and modified from time to time to the extent permitted by the provisions thereof and not prohibited by this Agreement; 
 (n)
reference to any “law” (including statutes and ordinances) means such Law (including any and all rules and regulations promulgated thereunder) as amended, modified, codified or reenacted, in whole or in part, and in effect at the time of
determining compliance or applicability; 
 (o) references to any Person include such Person’s successors and assigns but, if
applicable, only if such successors and assigns are permitted by this Agreement, and any reference to a third party shall be deemed to mean a Person who is not a Party or an Affiliate of a Party; 

(p) if there is any conflict between the provisions of the main body of this Agreement and the Schedules hereto, the provisions of the main
body of this Agreement shall control unless explicitly stated otherwise in such Schedule; 
 (q) unless otherwise specified in this
Agreement, all references to dollar amounts herein shall be in respect of lawful currency of the U.S.; 
 (r) the titles to Articles and
headings of Sections contained in this Agreement, in any Schedule and in the table of contents to this Agreement have been inserted for convenience of reference only and shall not be deemed to be a part of or to affect the meaning or interpretation
of this Agreement; and 

  
 - 5 - 

 (s) any portion of this Agreement obligating a Party to take any action or refrain from taking
any action, as the case may be, shall mean that such Party shall also be obligated to cause its relevant Subsidiaries to take such action or refrain from taking such action, as the case may be. 

ARTICLE II 
 ASSIGNMENT OF
EMPLOYEES 
 Section 2.1 Active Employees. 

(a) Nuvectra Employees. Except as otherwise set forth in this Agreement, effective as of the Distribution Date, the employment of the
Nuvectra Employees shall be continued by a member of the Nuvectra Group. 
 (b) Greatbatch Employees. Except as otherwise set forth
in this Agreement, effective as of the Distribution Date, the employment of the Greatbatch Employees shall be continued by a member of the Greatbatch Group. 

(c) At Will Status. Nothing in this Agreement shall create any obligation on the part of any member of the Greatbatch Group or any
member of the Nuvectra Group to continue the employment of any employee for any period following the date of this Agreement or the Separation or the Distribution or to change the employment status of any employee from “at will,” to the
extent such employee is an “at will” employee under applicable law. 
 (d) Severance. The assignment, transfer or
continuation of the employment of employees as contemplated by this Agreement or otherwise effected in connection with the Separation or the Distribution shall not be deemed a severance of employment of any employee for any purpose, including for
purposes of any plan, policy, practice or arrangement of any member of the Greatbatch Group or any member of the Nuvectra Group. 
 (e)
Change of Control/Change in Control. No provision in this Agreement or the Separation Agreement nor any transaction undertaken by either Party in connection with the Distribution shall be construed to create any right, or accelerate
entitlement, to any compensation or benefit whatsoever, or be deemed a “change of control” or “change in control” for any purpose including for purpose of any plan, policy, practice or arrangement relating to directors, employees
or consultants of any member of the Greatbatch Group or any member of the Nuvectra Group. 

  
 - 6 - 

 Section 2.2 Former Employees 

(a) General Principles. Except as otherwise provided in this Agreement, each former employee of any member of the Greatbatch Group or
any member of the Nuvectra Group as of the Distribution Date will be considered a former employee of the Greatbatch Group or the Nuvectra Group based on his or her employer as of his or her last day of employment with any member of the Greatbatch
Group or the Nuvectra Group. 
 (b) Former Greatbatch Employees. Former employees of the Greatbatch Group shall be deemed to include
all employees who, as of their last day of employment, were employed by a member of the Greatbatch Group and will not be either a Nuvectra Employee or a Greatbatch Employee for purposes of this Agreement (collectively, the “Former Greatbatch
Employees”). 
 (c) Former Nuvectra Employees. Former employees of the Nuvectra Group shall be deemed to include all employees
who, as of their last day of employment, were employed by a member of the Nuvectra Group and will not be either a Nuvectra Employee or a Greatbatch Employee for purposes of this Agreement (collectively, the “Former Nuvectra Employees”).

 Section 2.3 Employment Law Obligations. 

(a) WARN Act. After the Distribution Date, (i) Greatbatch shall be responsible for providing any necessary WARN notice (and meeting
any similar state law notice requirements) with respect to any termination of any Greatbatch Employee and (ii) Nuvectra shall be responsible for providing any necessary WARN notice (and meeting any similar state law notice requirements) with
respect to any termination of any Nuvectra Employee. 
 (b) Compliance with Employment Laws. On and after the Distribution Date,
(i) each member of the Greatbatch Group shall be responsible for adopting and maintaining any policies or practices, and for all other actions and inactions, necessary to comply with employment-related laws and requirements relating to the
employment of the Greatbatch Employees and the treatment of any applicable Former Greatbatch Employees in respect of their former employment, and (ii) each member of the Nuvectra Group shall be responsible for adopting and maintaining any
policies or practices, and for all other actions and inactions, necessary to comply with employment-related laws and requirements relating to the employment of the Nuvectra Employees and the treatment of any applicable Former Nuvectra Employees in
respect of their former employment. 

  
 - 7 - 

 Section 2.4 Employee Records. 

(a) Records Relating to Greatbatch Employees and Former Greatbatch Employees. All records and data in any form relating to Greatbatch
Employees and Former Greatbatch Employees shall be the property of the Greatbatch Group; provided, however, that records and data pertaining to such an Employee and relating to any period that such an Employee was (i) employed by
any member of the Nuvectra Group or (ii) covered under any employee benefit plan sponsored by any member of the Nuvectra Group (to the extent that such records or data relate to such coverage) prior to the Distribution Date shall be shared with
appropriate members of the Nuvectra Group by the Greatbatch Group to the extent such records are reasonably necessary for payroll or employee benefit plan purposes. 

(b) Records Relating to Nuvectra Employees and Former Nuvectra Employees. All records and data in any form relating to Nuvectra
Employees and Former Nuvectra Employees shall be the property of the Nuvectra Group; provided, however that records and data pertaining to such an Employee and relating to any period that such an Employee was (i) employed by any
member of the Greatbatch Group or (ii) covered under any employee benefit plan sponsored by any member of the Greatbatch Group (to the extent that such records or data relate to such coverage) prior to the Distribution Date shall be shared with
appropriate members of the Greatbatch Group by the Nuvectra Group to the extent such records are reasonably necessary for payroll or employee benefit plan purposes. 

(c) Sharing of Records. Each Party shall use its respective commercially reasonable efforts to provide the other Party, upon request,
such employee-related records and information as necessary or appropriate to carry out their respective obligations under applicable law (including any relevant privacy protection laws or regulations in any applicable jurisdictions or Privacy
Contract), this Agreement, any other Ancillary Agreement or the Separation Agreement, and for the purposes of administering their respective employee benefit plans and policies. All information and records regarding employment, personnel and
employee benefit matters provided to the other Party shall be accessed, retained, held, used, copied and transmitted in accordance with all applicable laws, policies and Privacy Contracts relating to the collection, storage, retention, use,
transmittal, disclosure and destruction of such records by such receiving Party. 
 (d) Access to Records. To the extent not
inconsistent with this Agreement and any applicable privacy protection laws or regulations or Privacy Contracts, access to such records and information, as described in this Section 2.4, after the Distribution Date, will be provided to
members of the Greatbatch Group and members of the Nuvectra Group in accordance with the Separation Agreement. In addition, Greatbatch shall be provided reasonable access to those records necessary for its administration of any benefit plans,
policies, arrangements or programs on behalf of Greatbatch Employees and Former Greatbatch Employees after the Distribution Date, as permitted by any applicable privacy protection laws or regulations or Privacy Contracts. Greatbatch shall also be
permitted to retain copies of all agreements with any Nuvectra Employee or Former Nuvectra Employee in which any member of the Greatbatch Group has a valid business interest. In addition, Nuvectra shall be provided reasonable access to those records
necessary for its administration of any benefit plans, policies, arrangements or programs on behalf of Nuvectra Employees and Former Nuvectra Employees after the Distribution Date, 

  
 - 8 - 

 
as permitted by any applicable privacy protection laws or regulations or Privacy Contracts. Nuvectra shall also be permitted to retain copies of all agreements with any Greatbatch Employee or
Former Greatbatch Employee in which any member of the Nuvectra Group has a valid business interest. 
 (e) Maintenance of Records.
With respect to retaining, destroying, transferring, sharing, copying and permitting access to all such records and information, Greatbatch and Nuvectra shall (and shall cause their respective Subsidiaries to) comply with all applicable laws,
regulations, Privacy Contracts and internal policies, and shall indemnify and hold harmless each other from and against any and all liability, claims, actions, and damages that arise from a failure (by the indemnifying party or its Subsidiaries or
their respective agents) to so comply with all applicable laws, regulations, Privacy Contracts and internal policies applicable to such records and information. 

(f) No Access to Computer Systems or Files. Except as set forth in the Separation Agreement or any other Ancillary Agreement, no
provision of this Agreement shall give (i) any member of the Greatbatch Group direct access to the computer systems or other files, records or databases of any member of the Nuvectra Group or (ii) any member of the Nuvectra Group direct
access to the computer systems or other files, records or databases of any member of the Greatbatch Group, unless specifically permitted by the owner of such systems, files, records or databases. 

(g) Relation to Separation Agreement. The provisions of this Section 2.4 shall be in addition to, and not in derogation of,
the provisions of the Separation Agreement governing Confidential Information, including Section 6.8 of the Separation Agreement. 

(h) Confidentiality. Except as otherwise set forth in this Agreement, all records and data relating to Employees shall, in each case,
be subject to the confidentiality provisions of the Separation Agreement and any other applicable agreement and applicable law. 
 (i)
Cooperation. Each Party shall use commercially reasonable efforts to cooperate with the other Party to share, retain and maintain data and records that are necessary or appropriate to further the purposes of this Section 2.4 and
for each Party to administer its respective benefit plans, policies, arrangements or programs to the extent consistent with this Agreement and applicable law, and each Party agrees to cooperate as long as is reasonably necessary to further the
purposes of this Section 2.4. Except as provided under any other Ancillary Agreement, no Party shall charge another Party a fee for such cooperation. 

  
 - 9 - 

 ARTICLE III 

EQUITY AND INCENTIVE COMPENSATION PLANS 

Section 3.1 General Principles. 
 (a)
For the avoidance of doubt, the provisions of this Article III shall not apply unless the Distribution and approval by the appropriate administrators of the applicable plans takes place. Greatbatch and Nuvectra shall take any and all reasonable
action as shall be necessary and appropriate to give effect to the provisions of this Article III. 
 (b) Where an award granted under one
of the Greatbatch Legacy Equity Plans is supplemented by an award under the Nuvectra Equity Plan in accordance with the provisions of this Article III, such award generally shall be on terms which are in all material respects identical to the terms
of the award which it supplements (including any requirements of continued employment) but subject to any necessary changes to take into account that (i) the award relates to Nuvectra Common Stock, (ii) the Nuvectra Equity Plan is
administered by Nuvectra, (iii) if applicable, the grantee under the award is employed or affiliated with a new employer or plan sponsor and (iv) the other specific provisions described in this Article III. 

(c) Following the Distribution, a grantee who has outstanding awards that are supplemented with awards under the Nuvectra Equity Plan (as
described in Section 3.1(b) above) shall be considered to have been employed by the applicable plan sponsor before and after the Distribution for purposes of (i) vesting and (ii) determining the date of termination of
employment as it applies to any such supplemental awards under the Nuvectra Equity Plan. Following the Distribution, (i) service as an employee with Nuvectra will be deemed to be services to Greatbatch with respect to Adjusted Greatbatch
Options, Adjusted Greatbatch RSAs, or Adjusted Greatbatch RSUs held by Nuvectra Employees immediately after the Distribution Date and (ii) service as an employee with Greatbatch will be deemed to be services to Nuvectra with respect to Nuvectra
Options, Nuvectra RSAs, or Nuvectra RSUs held by Greatbatch Employees immediately after the Distribution Date. 
 (d) No award described in
this Article III, whether outstanding or to be issued, adjusted, substituted or cancelled by reason of or in connection with the Distribution, shall be adjusted, settled, cancelled, or exercisable, until in the judgment of the administrator of the
applicable plan or program such action is consistent with all applicable law, including federal securities laws and the adjustment, settlement, cancellation or exercisability is in a manner consistent with Section 409A of the Code or other
applicable law. Any period of exercisability will not be extended on account of a period during which such an award is not exercisable in accordance with the preceding sentence. 

Section 3.2 Equity Incentive Programs. 

(a) The Parties shall use commercially reasonable efforts to take all actions necessary or appropriate so that each outstanding Greatbatch
Option, Greatbatch RSA or Greatbatch RSU award granted under a Greatbatch Legacy Equity Plan shall be adjusted as set forth in this Section 3.2. 

  
 - 10 - 

 (i) Greatbatch Options and Nuvectra Options. As determined by the Greatbatch Compensation
Committee pursuant to its authority under the applicable Greatbatch Legacy Equity Plan, each Greatbatch Option, regardless of by whom held, whether vested or unvested, shall be converted on the Distribution Date into both an Adjusted Greatbatch
Option and a Nuvectra Option, and both the Adjusted Greatbatch Option and the Nuvectra Option shall, except as otherwise provided in this Section 3.2(a)(i), be subject to the same terms and conditions (including with respect to vesting)
after the Distribution Date as applicable to such Greatbatch Option immediately prior to the Distribution Date; provided, however, that from and after the Distribution Date: 

(A) the number of shares of Greatbatch Common Stock subject to such Adjusted Greatbatch Option, shall be equal to the number of shares of
Greatbatch Common Stock subject to such Greatbatch Option immediately prior to the Distribution Date; 
 (B) the number of shares of
Nuvectra Common Stock subject to such Nuvectra Option, rounded down to the nearest whole share, shall be equal to the product obtained by multiplying (1) the number of shares of Greatbatch Common Stock subject to the Greatbatch Option
immediately prior to the Distribution Date by (2) the Distribution Ratio; 
 (C) the per share exercise price of such Adjusted
Greatbatch Option, rounded up to the nearest hundredth of a cent, shall be equal to the product obtained by multiplying (1) the per share exercise price of such Greatbatch Option immediately prior to the Distribution Date by (2) a fraction
(I) the numerator of which is the Greatbatch Post-Distribution Stock Value and (II) the denominator of which is the sum of the Greatbatch Post-Distribution Stock Value and the Adjusted Nuvectra Stock Value; and 

(D) the per share exercise price of such Nuvectra Option, rounded up to the nearest hundredth of a cent, shall be equal to the product
obtained by multiplying (1) the per share exercise price of the Greatbatch Option immediately prior to the Distribution Date by (2) a fraction (I) the numerator of which is the Nuvectra Stock Value and (II) the denominator of which is
the sum of the Greatbatch Post-Distribution Stock Value and the Adjusted Nuvectra Stock Value; 
 provided, however, that the exercise price,
the number of shares of Greatbatch Common Stock and shares of Nuvectra Common Stock subject to such options, and the terms and conditions of exercise of such options shall be determined in a manner consistent with the requirements of Code
Section 409A; and provided, further, that, in the case of any Greatbatch Option to which Code Section 421 applies by reason of its qualification under Code Section 422 as of immediately prior to the Distribution Date,
the exercise price, the number of shares of Greatbatch Common Stock and shares of Nuvectra Common Stock subject to such option, and the terms and conditions of exercise of such option shall be determined in a manner consistent with the requirements
of Code Section 424(a). 
 (ii) Greatbatch RSAs and Nuvectra RSAs. Each holder of a Greatbatch RSA award shall receive, as of
the Distribution Date, a Nuvectra RSA for such number of shares as determined by applying the Distribution Ratio, rounded down to the nearest whole share, in the same way as if the outstanding Greatbatch RSAs were comprised of fully vested shares of

  
 - 11 - 

 
Greatbatch Common Stock as of the Distribution Date. Except as set forth in this Section 3.2(a)(ii), the Greatbatch RSA and the Nuvectra RSA both shall be subject to substantially the
same terms and conditions immediately following the Distribution Date as applicable to the Greatbatch RSA immediately prior to the Distribution Date. 

(iii) Greatbatch RSU Awards and Nuvectra RSU Awards. Each holder of an outstanding Greatbatch RSU award shall receive, as of the
Distribution Date, a Nuvectra RSU award in such number of restricted stock units as determined by applying the Distribution Ratio, rounded down to the nearest whole share, in the same way as if the outstanding Greatbatch RSU award comprised fully
vested shares of Greatbatch Common Stock as of the Distribution Date. Except as set forth in this Section 3.2(a)(iii), the Greatbatch RSU award and the Nuvectra RSU award both shall be subject to substantially the same terms and
conditions immediately following the Distribution Date as applicable to the Greatbatch RSU award immediately prior to the Distribution Date. With respect to any Greatbatch RSU award that is subject to performance vesting requirements, which is held
by either a Greatbatch Employee or Former Greatbatch Employee, the performance metric for both the Greatbatch RSU award and the corresponding Nuvectra RSU award shall continue to be total shareholder return of Greatbatch’s common stock versus
Greatbatch’s peer group, but this performance metric shall be adjusted so as to treat the Distribution as a dividend of an amount of cash that is equal to the opening per-share price, as reported on Nasdaq, of a share of Nuvectra common stock
on the Distribution Date that is reinvested into shares of Greatbatch Common Stock at the opening per-share price on the Distribution Date, as reported on NYSE. With respect to any Greatbatch RSU award subject to performance vesting requirements
that is held by either a Nuvectra Employee or a Former Nuvectra Employee, such Nuvectra Employee or Former Nuvectra Employee shall receive, as of the Distribution Date, (A) a modified Greatbatch RSU award, which shall not be subject to any
performance vesting requirement, but shall be subject to a time-based vesting requirement that would be satisfied at the end of what was the applicable performance period, for a number of shares of Greatbatch common stock based upon performance
under the previously applicable performance metric for such Greatbatch RSU award up to the Distribution Date and (B) an Nuvectra RSU award, which shall not be subject to any performance vesting requirement, but shall be subject to a time-based
vesting requirement that would be satisfied at the end of what was the applicable performance period of the relevant Greatbatch RSU. 
 (b)
Miscellaneous Award Terms. After the Distribution Date, Adjusted Greatbatch Awards, regardless of by whom held, shall be settled by Greatbatch, and Nuvectra Awards, regardless of by whom held, shall be settled by Nuvectra; provided,
however, that Greatbatch shall be, if applicable, responsible for any dividend equivalent payments with respect to Adjusted Greatbatch RSAs and Adjusted Greatbatch RSUs and Nuvectra RSAs and Nuvectra RSUs held by Greatbatch Employees or
Former Greatbatch Employees, and Nuvectra shall be, if applicable, responsible for any dividend equivalent payments with respect to Adjusted Greatbatch RSAs and Adjusted Greatbatch RSUs and Nuvectra RSAs and Nuvectra RSUs held by Nuvectra Employees
or Former Nuvectra Employees. Except as otherwise provided in this Agreement (such as in Section 3.2(d) or Section 4.3), with respect to awards adjusted pursuant to this Section 3.2, (i) employment with the
Greatbatch Group shall be treated as employment with the Nuvectra Group with respect to Nuvectra Awards held by Greatbatch Employees, and (ii) employment with the Nuvectra Group shall be treated as employment with the Greatbatch Group with
respect to Adjusted Greatbatch Awards held by Nuvectra Employees. In addition, none of 

  
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the Separation, the Distribution, or any employment transfer described in Section 2.1 shall constitute a termination of employment for any Employee for purposes of any Greatbatch
Award or any Adjusted Greatbatch Award. Following the Distribution Date, any reference to a “change in control,” “change of control” or similar definition in an award agreement, employment agreement or Greatbatch Legacy Equity
Plan (A) with respect to Adjusted Greatbatch Awards, shall be deemed to refer to a “change in control,” “change of control” or similar definition as set forth in the award agreement, employment agreement or Greatbatch Legacy
Equity Plan applicable to such award (a “Greatbatch Change of Control”), and (B) with respect to Nuvectra Awards, shall be deemed to refer to a “Change in Control” as defined in the Nuvectra Equity Plan (a “Nuvectra
Change of Control”). Without limiting the foregoing, with respect to provisions related to vesting of awards, a Greatbatch Change of Control shall be treated as a Nuvectra Change of Control for purposes of Nuvectra Awards held by Greatbatch
Employees, and a Nuvectra Change of Control shall be treated as an Greatbatch Change of Control for purposes of Adjusted Greatbatch Awards held by Nuvectra Employees. 

(c) Tax Reporting and Withholding. Following the Distribution Date, and for the duration of the applicable Transition Services
Agreement provisions under which Greatbatch provides payroll services for Nuvectra, it is expected that (i) Greatbatch will be responsible for all income, payroll and other tax remittance and reporting related to income of Greatbatch Employees,
Former Greatbatch Employees, including in respect of Adjusted Greatbatch Awards and Nuvectra Awards, and individuals who are or were Greatbatch non-employee directors, including in respect of Adjusted Greatbatch Awards and Nuvectra Awards, and
(ii) Nuvectra will be responsible for all income, payroll and other tax remittance and reporting related to income of Nuvectra Employees and Former Nuvectra Employees in respect of Adjusted Greatbatch Awards and Nuvectra Awards. Greatbatch or
Nuvectra, as applicable, shall facilitate performance by the other Party of its obligations hereunder by promptly remitting amounts or shares withheld in conjunction with a transfer of shares or cash, either (as mutually agreed by the Parties)
directly to the applicable taxing authority or to the other Party for remittance to such taxing authority. The Parties will cooperate and communicate with each other and with third-party providers to effectuate withholding and remittance of taxes,
as well as required tax reporting, in a timely, efficient and appropriate manner. 
 (d) Equity-Based Awards in Certain Non-U S.
Jurisdictions. Notwithstanding the foregoing provisions of this Section 3.2, the Parties may mutually agree, in their sole discretion, not to adjust certain outstanding equity-based awards under the Greatbatch Legacy Equity Plans
pursuant to the foregoing provisions of this Section 3.2, where those actions would create or trigger adverse legal, accounting or tax consequences for Greatbatch, Nuvectra, or the affected non-U.S. award holders. In such circumstances,
Greatbatch or Nuvectra may take any action necessary or advisable to prevent any such adverse legal, accounting or tax consequences, including, but not limited to, agreeing that the outstanding awards under the Greatbatch Legacy Equity Plan of the
affected non-U.S. award holders shall terminate in accordance with the terms of the Greatbatch Legacy Equity Plan and the underlying award agreements, in which case Nuvectra or Greatbatch, as applicable, shall equitably compensate the affected
non-U.S. award holders in an alternate manner determined by Nuvectra or Greatbatch, as applicable, in its sole discretion, or apply an alternate adjustment method. Where and to the extent required by applicable Law or tax considerations outside the
United States, the adjustments described in this Section 3.2 shall be deemed to have been effectuated immediately prior to the Distribution Date. 

  
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 Section 3.3 Section 16(b) of the Exchange Act; Code Sections 162(m) and 409A. 

(a) By approving the adoption of this Agreement, the respective boards of directors of Greatbatch and Nuvectra intend to exempt from the
short-swing profit recovery provisions of Section 16(b) of the Exchange Act, by reason of the application of Rule 16b-3 thereunder, all acquisitions and dispositions of equity incentive awards by directors and executive officers of each of
Greatbatch and Nuvectra, and the respective boards of directors of Greatbatch and Nuvectra also intend to expressly approve, in respect of any equity-based award, the use of any method for the payment of an exercise price and the satisfaction of any
applicable tax withholding (specifically including the actual or constructive tendering of shares in payment of an exercise price and the withholding of option shares from delivery in satisfaction of applicable tax withholding requirements) to the
extent such method is permitted under the applicable equity incentive plan and award agreement. 
 (b) Notwithstanding anything in this
Agreement to the contrary, Greatbatch and Nuvectra agree to negotiate in good faith regarding the need for any treatment different from that otherwise provided herein to ensure that (i) a federal income tax deduction for the payment of any
annual incentive or long-term incentive award, or other compensation is not limited by reason of Code Section 162(m), and (ii) the treatment of such annual incentive or long-term incentive award, or other compensation does not cause the
imposition of a tax under Code Section 409A. 
 Section 3.4 Cash Incentive Awards. Nuvectra shall assume and perform all liabilities with
respect to the participation of each Nuvectra Employee in any cash-based annual bonus or other cash incentive compensation plan of Greatbatch (including, for avoidance of doubt, any cash-based transition bonus agreement or arrangement entered into
in connection with the Distribution) with respect to performance periods that are ongoing as of the Distribution Date. Greatbatch shall, as it determines in its sole discretion, (i) pay each Nuvectra Employee directly for any amount owed or
(ii) reimburse Nuvectra in full after Nuvectra’s payment in full of each amount owed to a Nuvectra Employee, in either case, that was earned for fiscal year 2015 performance under Greatbatch’s cash incentive compensation plan. 

ARTICLE IV 
 GENERAL PRINCIPLES
FOR ALLOCATION OF LIABILITIES 
 Section 4.1 General Principles. 

(a) Except as otherwise provided in this Agreement, each member of the Greatbatch Group and each member of the Nuvectra Group shall take any
and all reasonable action as shall be necessary or appropriate so that active participation in the Greatbatch 401(k) Plan and Greatbatch Welfare Plans by all Nuvectra Employees and Former Nuvectra Employees shall terminate in connection with the
Distribution effective as of 11:59 p.m. on the day immediately preceding the Distribution Date, and each member of the Nuvectra Group shall cease to be a participating employer under the terms of such Greatbatch 401(k) Plan and Greatbatch Welfare
Plans as of such time. Except as otherwise provided in this Agreement, one or more members of the Nuvectra Group (as designated by Nuvectra) shall assume, effective as of the Distribution 

  
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Date, all employee benefits liabilities for Nuvectra Employees and Former Nuvectra Employees, and the assets relating to such employee benefits for Nuvectra Employees and Former Nuvectra
Employees, if any, shall be transferred to one or more members of the Nuvectra Group (as designated by Nuvectra); and one or more members of the Greatbatch Group (as designated by Greatbatch) shall continue to be responsible for or assume all
employee benefits liabilities for Greatbatch Employees and Former Greatbatch Employees and the assets relating to such employee benefits for Greatbatch Employees and Former Greatbatch Employees shall be transferred to or continue to be held by one
or more members of the Greatbatch Group (as designated by Greatbatch). 
 (b) Except as otherwise provided in this Agreement, effective as
of the day after the Distribution Date, one or more members of the Nuvectra Group (as determined by Nuvectra) shall assume or continue the sponsorship of, and no member of the Greatbatch Group shall have any further liability for or under, the
following agreements, obligations and liabilities, and Nuvectra shall indemnify each member of the Greatbatch Group, and the officers, directors, and employees of each member of the Greatbatch Group, and hold them harmless with respect to such
agreements, obligations or liabilities: 
 (i) any and all individual agreements entered into between any member of the Greatbatch Group and
any Nuvectra Employee or Former Nuvectra Employee; 
 (ii) any and all agreements entered into between any member of the Greatbatch Group
and any individual who is an independent contractor providing services primarily for the business activities of the Nuvectra Group; 
 (iii)
any and all wages, salaries, incentive compensation (as the same may be modified by this Agreement), commissions and bonuses payable to any Nuvectra Employees or Former Nuvectra Employees after the Distribution Date, without regard to when such
wages, salaries, incentive compensation, commissions and bonuses are or may have been earned; 
 (iv) any and all moving expenses and
obligations related to relocation, repatriation, transfers or similar items incurred by or owed to any Nuvectra Employees or Former Nuvectra Employees, whether or not accrued as of the Distribution Date (other than such expenses and obligations
incurred by Greatbatch on or prior to the Distribution Date as a result of which there is an existing liability as of the Distribution Date); 

(v) any and all immigration-related, visa, work application or similar rights, obligations and liabilities related to any Nuvectra Employees
or Former Nuvectra Employees; and 
 (vi) any and all liabilities and obligations whatsoever with respect to claims made by or with respect
to any Nuvectra Employees or Former Nuvectra Employees in connection with any employee benefit plan, program or policy not otherwise retained or assumed by any member of the Greatbatch Group pursuant to this Agreement, including such liabilities
relating to actions or omissions of or by any member of the Nuvectra Group or any officer, director, employee or agent thereof on or prior to the Distribution Date. 

  
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 (c) Except as otherwise provided in this Agreement, effective as of the day after the
Distribution Date, no member of the Nuvectra Group shall have any further liability for, and Greatbatch shall indemnify each member of the Nuvectra Group, and the officers, directors, and employees of each member of the Nuvectra Group, and hold them
harmless with respect to any and all liabilities and obligations whatsoever with respect to, claims made by or with respect to any Greatbatch Employees or Former Greatbatch Employees in connection with any employee benefit plan, program or policy
not otherwise retained or assumed by any member of the Nuvectra Group pursuant to this Agreement, including such liabilities relating to actions or omissions of or by any member of the Greatbatch Group or any officer, director, employee or agent
thereof on or prior to the Distribution Date. 
 (d) This Agreement is not intended and shall not create any third party rights or provide
any Nuvectra Employee, Former Nuvectra Employee, Greatbatch Employee or Former Greatbatch Employee (or any beneficiary or dependent thereof) with any rights to any specific benefits or, in the case of active employees, continued employment. 

Section 4.2 Sponsorship and/or Establishment of Nuvectra Plans. Except as otherwise provided in this Agreement, sponsorship of benefit plans that
cover solely Nuvectra Employees, and to the extent applicable, Former Nuvectra Employees, shall become effective on the Distribution Date by the member of the Nuvectra Group as identified in this Agreement, and to the extent necessary to achieve
such sponsorship, each member of the Greatbatch Group and each member of the Nuvectra Group shall take appropriate action, including transfer of sponsorship of each such plan. 

Section 4.3 Service Credit. 
 (a)
Service for Eligibility and Vesting Purposes. Except as otherwise provided in any other provision of this Agreement, for purposes of eligibility and vesting under the Nuvectra 401(k) Plan and Nuvectra Welfare Plans, Nuvectra shall, and shall
cause each member of the Nuvectra Group to, credit each Nuvectra Employee and Former Nuvectra Employee with service for any period of employment with any member of the Greatbatch Group on or prior to the Distribution Date to the same extent that
such service would be credited for the same purpose if it had been performed for a member of the Nuvectra Group. 
 (b) Service for
Benefit Purposes. Except as otherwise provided in any other provision of this Agreement, for purposes of benefit levels and accruals and benefit commencement entitlements under the Nuvectra 401(k) Plan, Nuvectra shall, and shall cause each
member of the Nuvectra Group to, credit each Nuvectra Employee and Former Nuvectra Employee with service for any period of employment with any member of the Greatbatch Group on or prior to the Distribution Date to the same extent that such service
is taken into account for the same purpose pursuant to the terms of the Greatbatch 401(k) Plan. 
 (c) Evidence of Prior Service.
Notwithstanding anything to the contrary, but subject to applicable law, upon reasonable request by one Party to the other Party, the first Party will provide to the other Party information relating to and confirming service for purposes of
seniority (or seniority date) and service date for such Employees for purposes of determining benefit eligibility, participation, vesting and calculation of benefits with respect to any Employee. 

  
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 Section 4.4 Plan Administration. 

(a) Transition Services. The Parties acknowledge that the Greatbatch Group may provide administrative services for certain of the
Nuvectra Group’s benefit programs for a transitional period under the terms of the Transition Services Agreement. The Parties agree to enter into a business associate agreement (if required by applicable health information privacy laws) in
connection with such administrative services. 
 (b) Administration. Nuvectra shall use commercially reasonable efforts to, and shall
cause each member of the Nuvectra Group to use commercially reasonable efforts to, administer its benefit plans in a manner that does not jeopardize the tax-favored status of the tax-favored benefit plans maintained by any member of the Greatbatch
Group. Greatbatch shall use commercially reasonable efforts to, and shall cause each member of the Greatbatch Group to use commercially reasonable efforts to, administer its benefit plans in a manner that does not jeopardize the tax-favored status
of the tax-favored benefit plans maintained by any member of the Nuvectra Group. 
 ARTICLE V 

401(K) PLANS 
 Section 5.1 General
Principles. Effective on or before the Distribution Date or as soon as administratively practicable after the Distribution Date, Nuvectra (or another member of the Nuvectra Group) shall establish and adopt a qualified employee cash or deferred
arrangement under Code Section 401(k) (the “Nuvectra 401(k) Plan”) intended to be qualified under Code Section 401(a) for the benefit of Nuvectra Employees and Former Nuvectra Employees who were participants (or former
participants with a remaining account balance) in the Greatbatch 401(k) Plan as of the Distribution Date (and each beneficiary and alternate payee of such person) (the “Nuvectra 401(k) Plan Beneficiaries”). Each Nuvectra Employee who was
an active participant in the Greatbatch 401(k) Plan on the Distribution Date shall participate in the Nuvectra 401(k) Plan in accordance with the terms of the Nuvectra 401(k) Plan. Nuvectra Employees and Former Nuvectra Employees shall not make or
receive additional contributions under the Greatbatch 401(k) Plan for payroll periods commencing on or after the Distribution Date. A Greatbatch Employee or Former Greatbatch Employee shall not participate in the Nuvectra 401(k) Plan. 

Section 5.2 Transfer of Accounts. On or as soon as practicable after the Distribution Date (or such later time as mutually agreeable to Greatbatch
and Nuvectra), Greatbatch shall cause to be transferred from the trust under the Greatbatch 401(k) Plan to the trust under the Nuvectra 401(k) Plan the aggregate amount that was credited to the accounts of the Nuvectra 401(k) Plan Beneficiaries as
of such transfer date. The transfer may, to the extent reasonably possible, be an in-kind transfer, subject to the reasonable consent of the trustee of the Nuvectra 401(k) Plan trust and shall include the transfer of the aggregate value of assets
held in the accounts relating to each Nuvectra 401(k) Plan Beneficiary under the Greatbatch 401(k) Plan and any participant loan 

  
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notes held under such plans. The transfer of assets shall be conducted in accordance with Code Section 414(l), Treasury Regulation Section 1.414(l)-1 and ERISA Section 208. During
the period after the Distribution Date and before such transfer of assets, with respect to any Nuvectra Employee or Former Nuvectra Employee who has an outstanding loan balance under the Greatbatch 401(k) Plan, Greatbatch shall provide that any
amount received as payment on any such loan, in accordance with its terms, is timely remitted as directed by the administrator of the Greatbatch 401(k) Plan for crediting under the Greatbatch 401(k) Plan in respect of such loan, and Greatbatch shall
cause the administrator of the Greatbatch 401(k) Plan to apply such amounts in satisfaction of such loan. 
 Section 5.3 Employer Securities.
Greatbatch presently intends to preserve the right, for a period of time, of Greatbatch Employees to receive distributions in kind from the Greatbatch 401(k) Plan if, and to the extent, investments under such plan is comprised of Greatbatch Common
Stock or Nuvectra Common Stock. Greatbatch shall determine the extent to which and when Nuvectra Common Stock shall cease to be an investment alternative under the Greatbatch 401(k) Plan. 

Section 5.4 Third-Party Vendors. Except as provided below, to the extent the Greatbatch 401(k) Plan is administered by a third-party vendor,
Greatbatch and Nuvectra will cooperate and use their commercially reasonable efforts to replicate any contract with such third-party vendor for Nuvectra and to maintain any pricing discounts or other preferential terms for both Greatbatch and
Nuvectra for a reasonable term with respect to such vendor. Neither Party shall be liable for failure to obtain such pricing discounts or other preferential terms for the other Party with respect to any third-party vendors. Each Party shall be
responsible for any additional charges or administrative fees that such Party may incur pursuant to this Section 5.4. 
 ARTICLE VI

 WELFARE PLANS 
 Section 6.1
Establishment of Nuvectra Welfare Plans. 
 (a) The members of the Nuvectra Group who are participating employers under the Greatbatch
Welfare Plan on the day immediately preceding the Distribution Date (“Participating Nuvectra Employers”) shall, on or before 11:59 p.m. on that date, withdraw from such participation. Nuvectra and/or the Participating Nuvectra Employers
(with Nuvectra included in the definition of Participating Nuvectra Employers for purposes of this Article VI) shall establish a comprehensive welfare benefit program (“Nuvectra Welfare Plan”) for the benefit of Nuvectra Employees and
Former Nuvectra Employees who were eligible for coverage under the Greatbatch Welfare Plan as of the Distribution Date (“Nuvectra Welfare Plan Participants”). The Nuvectra Welfare Plan shall be effective as of the Distribution Date, except
for the health and dependent care flexible spending accounts, which shall be effective as soon as administratively practicable following the Distribution Date. The Nuvectra Welfare Plan shall include the following benefits: 

(i) A high deductible health plan within the meaning of Code § 223(c)(2)(A) and related Internal Revenue Service guidance; 

  
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 (ii) A cafeteria plan that meets the requirements of Code § 125 that includes a premium
conversion feature, general purpose and limited purpose health flexible spending accounts, health savings account contributions, and a dependent care flexible spending account; 

(iii) Dental benefits; 
 (iv)
Vision benefits; 
 (v) Short term and long term disability benefits; 

(vi) Life and accidental death and dismemberment insurance, including basic employer paid life and accidental death and dismemberment
insurance, supplemental employee life insurance, and optional dependent life insurance; and 
 (vii) Employee assistance program benefits.

 Any benefits in addition to those specified above shall be at the option of the members of the Nuvectra Group. 

The benefits that comprise the Nuvectra Welfare Plan (and the nonelective employer contributions towards those benefits) need not be
substantially similar in all material respects to the similar benefits (and nonelective employer contributions) provided under the Greatbatch Welfare Plan as of the Distribution Date. 

(b) As a result of withdrawal from participation in the Greatbatch Welfare Plans by the Participating Nuvectra Employers, the Nuvectra Welfare
Plan Participants will cease to be eligible for coverage as active Employees under the Greatbatch Welfare Plans at 11:59 p.m. on the day immediately preceding the Distribution Date, and Nuvectra Welfare Plan Participants shall not participate in any
Greatbatch Welfare Plans after 11:59 p.m. on that date. 
 Section 6.2 Transitional Matters Under Nuvectra Welfare Plans. 

(a) Treatment of Incurred Claims. 

(i) Insured Benefits. With respect to benefits that, prior to the Distribution Date, were provided for under the Greatbatch Welfare
Plans through the purchase of insurance, Greatbatch shall cause the Greatbatch Welfare Plans to fully perform, pay and discharge all claims of Nuvectra Welfare Plan Participants that were incurred prior to the Distribution Date. 

(ii) Uninsured/Self-Insured Benefits. Except as otherwise specifically provided in this Agreement, Greatbatch shall retain all
Liabilities relating to Incurred Claims under the Greatbatch Welfare Plans, and shall also retain Assets (including, without limitation, Medicare reimbursements, pharmaceutical rebates, and similar items) associated with such Incurred Claims.
Nuvectra shall be responsible for all Liabilities relating to Incurred Claims under any Nuvectra Welfare Plan and shall also retain Assets (including, without limitation, Medicare reimbursements, pharmaceutical rebates, and similar items) associated
with such Incurred Claims. 

  
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 (iii) Incurred Claims. For purposes of this Section 6.2(a), an “Incurred
Claim” is deemed to be incurred (A) with respect to medical, dental, vision and/or prescription drug benefits, upon the rendering of health services giving rise to such claim or liability; (B) with respect to life insurance,
accidental death and dismemberment and business travel accident insurance, upon the occurrence of the event giving rise to such claim or liability; and (C) with respect to long-term disability benefits, upon the date of an individual’s
disability, as determined by the disability benefit insurance carrier, giving rise to such claim or liability. 
 (b) COBRA.
Notwithstanding any other provision of this Agreement to the contrary, for the avoidance of doubt, and other than for individuals (and their qualified beneficiaries) identified on Schedule 6.2(b), the Nuvectra Group (which, for this purpose, is the
“Buying Group” as defined in Treas. Reg. section 54.4980B-9) will be responsible for providing any required COBRA notices, and for providing COBRA continuation coverage, to all individuals who are “M&A qualified
beneficiaries” (as defined in Treas. Reg. section 54.4980B-9) with respect to the transactions contemplated by this Agreement and the group health plans maintained by the Greatbatch Group (which, for this purpose is the “Selling
Group” as defined in Treas. Reg. section 54.4980B-9). If and to the extent that the Buying Group fails to comply with its obligations under this paragraph, each member of the Buying Group will be jointly and severally liable to the Selling
Group for all costs, expenses, and liabilities incurred by any member of the Selling Group however characterized (including benefits paid to M&A qualified beneficiaries which the Selling Group’s group health plans would not otherwise have
been required to pay). 
 Section 6.3 Credit for Deductibles Under Medical and Dental Plans. Individuals enrolled in the Greatbatch
medical and dental plans during the 2016 calendar year, will receive credit under the deductible provisions of the Nuvectra medical and dental plan for out-of-pocket
expenses incurred while covered under the Greatbatch Welfare Plan provided the expenses would have been paid by both the Greatbatch Welfare Plan and the Nuvectra Welfare Plan but for the application of their deductible limits. 

Section 6.4 Insurance Contracts. To the extent any Greatbatch Welfare Plan is funded through the purchase of an insurance contract or is
subject to any stop loss contract, Greatbatch and Nuvectra will cooperate and use their commercially reasonable efforts to replicate such insurance contracts for Nuvectra (except to the extent changes are required under applicable state insurance
laws) and to maintain any pricing discounts or other preferential terms for both Greatbatch and Nuvectra for a reasonable term under such contracts. Neither Party shall be liable for failure to obtain such pricing discounts or other preferential
terms for the other Party under any insurance contracts. Each Party shall be responsible for any additional premiums, charges or administrative fees that such Party may incur pursuant to this Section 6.4. 

Section 6.5 Third-Party Vendors. Except as provided below, to the extent any Greatbatch Welfare Plan is administered by a third-party vendor, Greatbatch and Nuvectra will cooperate and use their commercially reasonable efforts to replicate any contract with such third-party vendor for Nuvectra and to maintain any pricing discounts or
other preferential terms for both Greatbatch and Nuvectra for a reasonable term with respect to such vendor. Neither Party shall be liable for failure to obtain such pricing discounts or other preferential terms for the other Party with respect to
any third-party vendors. Each Party shall be responsible for any additional premiums, charges or administrative fees that such Party may incur pursuant to this Section 6.5. 

  
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 ARTICLE VII 

WORKERS’ COMPENSATION AND UNEMPLOYMENT COMPENSATION 

Effective as of the Distribution Date, Nuvectra shall have (and, to the extent it has not previously had such obligations, assume) the
obligations for all claims and liabilities relating to workers’ compensation and unemployment compensation benefits for all Nuvectra Employees and Former Nuvectra Employees. Nuvectra shall use commercially reasonable efforts to provide that
workers’ compensation and unemployment insurance costs are not adversely affected for either Party by reason of the Distribution. 

ARTICLE VIII 
 EMPLOYMENT
AGREEMENTS, SEVERANCE AND OTHER MATTERS 
 Section 8.1 Employment Agreements. Effective as of the Distribution Date, Nuvectra hereby assumes
Greatbatch’s rights and obligations arising under the employment agreements described in Schedule 8.l and agrees to honor the terms and conditions of those agreements applicable to Nuvectra as a successor under the terms of such agreements. The
terms of the employment agreements shall in all other respects be unaffected. The Parties agree that the Nuvectra Employees who are covered by employment agreements described above are express third party beneficiaries of this Section 8.1.

 Section 8.2 Severance. 
 (a)
Except as otherwise provided in this Agreement, immediately following the Distribution, Greatbatch shall have no liability or obligation under any Greatbatch severance plan, program, or policy with respect to Nuvectra Employees or Former Nuvectra
Employees. 
 (b) Except as otherwise provided in this Agreement, effective after the Distribution Date, Nuvectra shall assume and shall be
responsible for administering all payments and benefits under the applicable Greatbatch severance policies or any termination agreements with Former Nuvectra Employees whose employment terminated prior to the Distribution Date for an eligible reason
under such policies or in accordance with such agreements. 
 Section 8.3 Accrued Time Off. Nuvectra shall recognize and assume all liability
for all vacation, holiday, sick leave, flex days, personal days and paid-time off with respect to Nuvectra Employees, and Nuvectra shall credit each Nuvectra Employee with such accrual. 

Section 8.4 Leaves of Absence. Nuvectra will continue to apply leave of absence policies applicable to inactive Nuvectra Employees who are on an
approved leave of absence as of the Distribution Date that are substantially similar in all material respects to those that were applied by Greatbatch prior to the Distribution Date. Leaves of absence taken by Nuvectra Employees prior to the
Distribution Date shall be deemed to have been taken as employees of a member of the Nuvectra Group. 

  
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 Section 8.5 Restrictive Covenants in Employment and Other Agreements. 

(a) To the fullest extent permitted by the agreements described in this Section 8.5(a) and applicable law, Greatbatch shall assign,
or cause any member of the Greatbatch Group to assign, to Nuvectra or a member of the Nuvectra Group, as designated by Nuvectra, all agreements containing restrictive covenants (including confidentiality and non-competition provisions) between a
member of the Greatbatch Group and a Nuvectra Employee or Former Nuvectra Employee, with such assignment effective as of the Distribution Date. To the extent that assignment of such agreements is not permitted, effective as of the Distribution Date,
each member of the Nuvectra Group shall be considered to be a successor to each member of the Greatbatch Group for purposes of, and a third-party beneficiary with respect to, all agreements containing restrictive covenants (including confidentiality
and non-competition provisions) between a member of the Greatbatch Group and a Nuvectra Employee or Former Nuvectra Employee whom Nuvectra reasonably determines have substantial knowledge of the business activities of the Nuvectra Group, such that
each member of the Nuvectra Group shall enjoy all the rights and benefits under such agreements (including rights and benefits as a third-party beneficiary), with respect to the business operations of the Nuvectra Group; provided,
however, that in no event shall Greatbatch be permitted to enforce such restrictive covenant agreements against Nuvectra Employees or Former Nuvectra Employees for action taken in their capacity as employees of a member of the Nuvectra Group.

 (b) To the fullest extent permitted by the agreements described in this Section 8.5(b) and applicable law, Nuvectra shall
assign, or cause any member of the Nuvectra Group to assign, to Greatbatch or a member of the Greatbatch Group, as designated by Greatbatch, all agreements containing restrictive covenants (including confidentiality and non-competition provisions)
between a member of the Nuvectra Group and a Greatbatch Employee or Former Greatbatch Employee, with such assignment effective as of the Distribution Date. To the extent that assignment of such agreements is not permitted, effective as of the
Distribution Date, each member of the Greatbatch Group shall be considered to be a successor to each member of the Nuvectra Group for purposes of, and a third-party beneficiary with respect to, all agreements containing restrictive covenants
(including confidentiality and non-competition provisions) between a member of the Nuvectra Group and a Greatbatch Employee or Former Greatbatch Employee whom Greatbatch reasonably determines have substantial knowledge of the business activities of
the Greatbatch Group, such that Greatbatch and each member of the Greatbatch Group shall enjoy all the rights and benefits under such agreements (including rights and benefits as a third-party beneficiary), with respect to the business operations of
the Greatbatch Group; provided, however, that in no event shall Nuvectra be permitted to enforce such restrictive covenant agreements against Greatbatch Employees or Former Greatbatch Employees for action taken in their capacity as
employees of a member of the Greatbatch Group. 

  
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 ARTICLE IX 

MISCELLANEOUS 
 Section 9.1 Preservation
of Rights to Amend. The rights of each member of the Greatbatch Group and each member of the Nuvectra Group to amend, waive, or terminate any plan, arrangement, agreement, program, or policy referred to herein shall not be limited in any way by
this Agreement. 
 Section 9.2 Confidentiality. Each Party agrees that any information conveyed or otherwise received by or on behalf of a Party
in conjunction herewith that is not otherwise public through no fault of such Party is confidential and is subject to the terms of the confidentiality provisions set forth in the Separation Agreement. 

Section 9.3 Administrative Complaints/Litigation. Except as otherwise provided in this Agreement, on and after the Distribution Date, Nuvectra
shall assume, and be solely liable for, the handling, administration, investigation and defense of actions, including ERISA, occupational safety and health, employment standards, union grievances, wrongful dismissal, discrimination or human rights
and unemployment compensation claims asserted at any time against Greatbatch or any member of the Greatbatch Group by any Nuvectra Employee or Former Nuvectra Employee (including any dependent or beneficiary of any such Employee) or any other
person, to the extent such actions or claims arise out of or relate to employment or the provision of services (whether as an employee, contractor, consultant or otherwise) to or with respect to the business activities of any member of the Nuvectra
Group, whether or not such employment or services were performed before or after the Distribution. To the extent that any legal action relates to a putative or certified class of plaintiffs, which includes both Greatbatch Employees (or Former
Greatbatch Employees) and Nuvectra Employees (or Former Nuvectra Employees) and such action involves employment or benefit plan related claims, reasonable costs and expenses incurred by the Parties in responding to such legal action shall be
allocated among the Parties equitably in proportion to a reasonable assessment of the relative proportion of Employees included in or represented by the putative or certified plaintiff class. The procedures contained in the indemnification and
related litigation cooperation provisions of the Separation Agreement shall apply with respect to each Party’s indemnification obligations under this Section 9.3. 

Section 9.4 Reimbursement and Indemnification. Greatbatch and Nuvectra each agree to reimburse the other Party, within 30 days of receipt from the
other Party of reasonable verification, for all costs and expenses which the other Party may incur on its behalf as a result of any of the respective Greatbatch and Nuvectra Welfare Plans (including, but not limited to, Nuvectra’s reimbursement
of Greatbatch for all COBRA liabilities for Nuvectra Employees and Former Nuvectra Employees), 401(k) Plan and, as contemplated by Section 8.2, any termination or severance payments or benefits. All liabilities retained, assumed or
indemnified against by Nuvectra pursuant to this Agreement, and all liabilities retained, assumed or indemnified against by Greatbatch pursuant to this Agreement, shall in each case be subject to the indemnification provisions of the Separation
Agreement. Notwithstanding anything to the contrary, (i) no provision of this Agreement shall require any member of the Nuvectra Group to pay or reimburse to any member of the Greatbatch Group any benefit-related cost item that a member of

  
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the Nuvectra Group has previously paid or reimbursed to any member of the Greatbatch Group; and (ii) no provision of this Agreement shall require any member of the Greatbatch Group to pay or
reimburse to any member of the Nuvectra Group any benefit-related cost item that a member of the Greatbatch Group has previously paid or reimbursed to any member of the Nuvectra Group. 

Section 9.5 Costs of Compliance with Agreement. Except as otherwise provided in this Agreement or any other Ancillary Agreement, each Party
shall pay its own expenses in fulfilling its obligations under this Agreement. 
 Section 9.6 Fiduciary Matters. Greatbatch and Nuvectra each
acknowledge that actions required to be taken pursuant to this Agreement may be subject to fiduciary duties or standards of conduct under ERISA or other applicable law, and no Party shall be deemed to be in violation of this Agreement if it fails to
comply with any provisions hereof based upon its good faith determination (as supported by advice from counsel experienced in such matters) that to do so would violate such a fiduciary duty or standard. Each Party shall be responsible for taking
such actions as are deemed necessary and appropriate to comply with its own fiduciary responsibilities and shall fully release and indemnify the other Party for any liabilities caused by the failure to satisfy any such responsibility. 

Section 9.7 Form S-8. Before the Distribution or as soon as reasonably practicable thereafter and subject to applicable law, Nuvectra shall
prepare and file with the SEC a registration statement on Form S-8 (or another appropriate form) registering under the Securities Act of 1933, as amended, the offering of a number of shares of Nuvectra Common Stock at a minimum equal to the number
of shares subject to the Nuvectra Options, the Nuvectra RSAs and the Nuvectra RSUs. Nuvectra shall use commercially reasonable efforts to cause any such registration statement to be kept effective (and the current status of the prospectus or
prospectuses required thereby shall be maintained) as long as any Nuvectra Options, Nuvectra RSAs, or Nuvectra RSUs may remain outstanding. 

Section 9.8 Entire Agreement. This Agreement, together with the documents referenced herein (including the Separation Agreement, any other
Ancillary Agreements and the plans and agreements referenced herein), constitutes the entire agreement and understanding among the Parties with respect to the subject matter hereof and supersedes all prior written and oral and all contemporaneous
oral agreements and understandings with respect to the subject matter hereof. To the extent any provision of this Agreement conflicts with the provisions of the Separation Agreement, the provisions of this Agreement shall be deemed to control with
respect to the subject matter hereof. 
 Section 9.9 Binding Effect; No Third-Party Beneficiaries; Assignment. This Agreement shall inure
to the benefit of and be binding upon the Parties and their respective successors and permitted assigns. Except as otherwise expressly provided in this Agreement, this Agreement is solely for the benefit of the Parties and should not be deemed to
confer upon any third parties any remedy, claim, liability, reimbursement, cause of action or other right in excess of those existing without reference to this Agreement. Nothing in this Agreement is intended to amend any employee benefit plan or
affect the applicable plan sponsor’s right to amend or terminate any employee benefit plan pursuant to the terms of such plan. Except as otherwise provided in 

  
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Section 8.1, the provisions of this Agreement are solely for the benefit of the Parties, and no current or former Employee, officer, director or independent contractor or any other
individual associated therewith shall be regarded for any purpose as a third-party beneficiary of this Agreement. This Agreement may not be assigned by any Party, except with the prior written consent of the other Party. 

Section 9.10 Amendment; Waivers. No change or amendment may be made to this Agreement except by an instrument in writing signed on behalf of each
of the Parties. Any Party may, at any time, (a) extend the time for the performance of any of the obligations or other acts of another Party, (b) waive any inaccuracies in the representations and warranties of another Party contained
herein or in any document delivered pursuant hereto, and (c) waive compliance by another Party with any of the agreements, covenants or conditions contained herein. Any such extension or waiver shall be valid only if set forth in an instrument
in writing signed by the Party to be bound thereby. No failure or delay on the part of any Party in the exercise of any right hereunder shall impair such right or be construed to be a waiver of, or acquiescence in, any breach of any representation,
warranty, covenant or agreement contained herein, nor shall any single or partial exercise of any such right preclude other or further exercises thereof or of any other right. 

Section 9.11 Remedies Cumulative. All rights and remedies existing under this Agreement or the Schedules attached hereto are cumulative to, and
not exclusive of, any rights or remedies otherwise available. 
 Section 9.12 Notices. Unless otherwise expressly provided herein, all notices,
claims, certificates, requests, demands and other communications hereunder shall be in writing and shall be deemed to be duly given: (a) when personally delivered, (b) if mailed by registered or certified mail, postage prepaid, return
receipt requested, on the date the return receipt is executed or the letter is refused by the addressee or its agent, (c) if sent by overnight courier which delivers only upon the executed receipt of the addressee, on the date the receipt
acknowledgment is executed or refused by the addressee or its agent, or (d) if sent by facsimile or electronic mail, on the date confirmation of transmission is received (provided that a copy of any notice delivered pursuant to this clause
(d) shall also be sent pursuant to clause (a), (b) or (c)), addressed to the attention of the addressee’s General Counsel at the address of its principal executive office or to such other address or facsimile number for a Party as it
shall have specified by like notice. 
 Section 9.13 Counterparts; Facsimile Signatures. This Agreement, including the Schedules hereto and the
other documents referred to herein, may be executed in multiple counterparts, each of which when executed shall be deemed to be an original but all of which together shall constitute one and the same agreement. Delivery of an executed signature page
to this Agreement, and any of the other agreements, documents and instruments contemplated hereby, by facsimile transmission shall be as effective as delivery of a manually signed counterpart hereof or thereof. 

Section 9.14 Severability. If any term or other provision of this Agreement or the Schedules attached hereto is determined by a non-appealable
decision by a court, administrative agency or arbitrator to be invalid, illegal or incapable of being enforced by any rule of law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and

  
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effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any Party. Upon such determination that any term or
other provision is invalid, illegal or incapable of being enforced, the court, administrative agency or arbitrator shall interpret this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner to
the end that transactions contemplated hereby are fulfilled to the fullest extent possible. If any sentence in this Agreement is so broad as to be unenforceable, the provision shall be interpreted to be only as broad as is enforceable. 

Section 9.15 Governing Law. To the extent not preempted by applicable federal law, this Agreement shall be governed by, and construed and enforced
in accordance with, the substantive laws of the State of Delaware without regard to any conflicts of law provisions thereof that would result in the application of the laws of any other jurisdiction. 

Section 9.16 Performance. Each of Greatbatch and Nuvectra shall cause to be performed, and hereby guarantees the performance of, all actions,
agreements and obligations set forth herein to be performed by any member of the Greatbatch Group and any member of the Nuvectra Group, respectively. The Parties each agree to take such further actions and to execute, acknowledge and deliver, or to
cause to be executed, acknowledged and delivered, all such further documents as are reasonably requested by the other for carrying out the purposes of this Agreement or of any document delivered pursuant to this Agreement. 

Section 9.17 Construction. This Agreement shall be construed as if jointly drafted by the Parties and no rule of construction or strict
interpretation shall be applied against any Party. 
 Section 9.18 Effect if Distribution Does Not Occur. Notwithstanding anything in this
Agreement to the contrary, if the Separation Agreement is terminated prior to the Distribution Date, this Agreement shall be of no further force and effect. 

[SIGNATURE PAGE FOLLOWS] 

  
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 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed in their names
by a duly authorized officer as of the date first written above. 
  

			
	GREATBATCH, INC.
		
	By:	 	 /s/ Thomas J. Hook

	Name:	 	Thomas J. Hook
	Title:	 	President and Chief Executive Officer
	
	QIG GROUP, LLC
	(to be converted into Nuvectra Corporation)
		
	By:	 	 /s/ Scott F. Drees

	Name:	 	Scott F. Drees
	Title:	 	Chief Executive Officer

  
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