Document:

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             , 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
	  	 	6	  
	 Section 2.3
	  	 Employment Law Obligations
	  	 	7	  
	 Section 2.4
	  	 Employee Records
	  	 	7	  
		
	 ARTICLE III EQUITY AND INCENTIVE COMPENSATION PLANS
	  	 	9	  
	 Section 3.1
	  	 General Principles
	  	 	9	  
	 Section 3.2
	  	 Equity Incentive Programs
	  	 	10	  
	 Section 3.3
	  	 Section 16(b) of the Exchange Act; Code Sections 162(m) and 409A
	  	 	13	  
	 Section 3.4
	  	 Cash Incentive Awards
	  	 	13	  
		
	 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
	  	 	15	  
	 Section 4.3
	  	 Service Credit
	  	 	15	  
	 Section 4.4
	  	 Plan Administration
	  	 	16	  
		
	 ARTICLE V 401(K) PLANS
	  	 	17	  
	 Section 5.1
	  	 General Principles
	  	 	17	  
	 Section 5.2
	  	 Transfer of Accounts
	  	 	17	  
	 Section 5.3
	  	 Employee Securities
	  	 	17	  
	 Section 5.4
	  	 Third-Party Vendors
	  	 	17	  
		
	 ARTICLE VI WELFARE PLANS
	  	 	18	  
	 Section 6.1
	  	 Establishment of Nuvectra Welfare Plans
	  	 	18	  
	 Section 6.2
	  	 Transitional Matters Under Nuvectra Welfare Plans
	  	 	18	  
	 Section 6.3
	  	 Continuity of Benefits, Benefit Elections and Beneficiary Designations
	  	 	19	  
	 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	  

  
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 EMPLOYEE MATTERS AGREEMENT 

This EMPLOYEE MATTERS AGREEMENT dated as of             , 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). 

  
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 “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. 

“Greatbatch RSA” means a restricted stock award issued and outstanding immediately prior to the Distribution Date under any of the
Greatbatch Legacy Equity Plans. 

  
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 “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 any Welfare
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). 
 “Nuvectra
Subsidiary” means any Subsidiary of Nuvectra on the Distribution Date. 
 “Nuvectra Welfare Plan” means any Welfare Plan
sponsored or maintained by any one or more members of the Nuvectra Group on or after the Distribution Date. 

  
 - 3 - 

 “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;” 

(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;” 

  
 - 4 - 

 (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 
 (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. 

  
 - 5 - 

 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. 
 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”).

  
 - 6 - 

 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. 
 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. 

  
 - 7 - 

 (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, 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. 

  
 - 8 - 

 (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. 

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. 

  
 - 9 - 

 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. 

(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 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 Nuvectra Stock Value; 

  
 - 10 - 

 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 in the same way as if the outstanding Greatbatch RSAs were comprised of fully vested shares of 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 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. 

  
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 (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 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. 

  
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 (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. 
 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. 

  
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 ARTICLE IV 

GENERAL PRINCIPLES FOR ALLOCATION OF LIABILITIES 

Section 4.1 General Principles. 

(a) 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
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 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 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); 

  
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 (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. 

(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 or before 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. 

  
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 (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 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 is taken into account for the same purpose pursuant to
the terms of the Greatbatch 401(k) Plan and Greatbatch Welfare Plans. 
 (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. 

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. 
 (c) Participant Elections and Beneficiary
Designations. All participant elections and beneficiary designations made under any plan sponsored by a member of the Greatbatch Group prior to the Distribution Date as of which assets or liabilities relating to that plan are transferred or
allocated to a member of the Nuvectra Group shall continue in effect under any plan maintained by any member of the Nuvectra Group to which liabilities are transferred or allocated pursuant to this Agreement until such time as any applicable
participant changes his elections or beneficiary designations in accordance with the procedures of the relevant plan, including deferral, investment, and payment form elections, dividend elections, coverage options and levels, beneficiary
designations and the rights of alternate payees under qualified domestic relations orders. 

  
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 ARTICLE V 

401(K) PLANS 
 Section 5.1 General
Principles. Effective on or before 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) and containing provisions that will provide, among other things, benefits for each Nuvectra Employee and Former Nuvectra Employee who was a participant (or former participant 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”) substantially the same in all material respects
(provided that no reduction in accrued benefits results (except as provided in this Article V)) to those in effect for the Nuvectra 401(k) Plan Beneficiaries under the Greatbatch 401(k) Plan as of the date of transfer of assets and liabilities with
respect to such Nuvectra 401(k) Plan (as described below). 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 effective from and after the
Distribution Date. Nuvectra Employees and Former Nuvectra Employees shall not make or receive additional contributions under the Greatbatch 401(k) Plan 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,
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 shall, 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 assets held in the accounts
relating to each Nuvectra 401(k) Plan Beneficiary under the Greatbatch 401(k) Plan and any participant loan 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 and Nuvectra each presently intend to preserve the right, for a period of time, of Greatbatch
Employees and Nuvectra Employees to receive distributions in kind from, respectively, the Greatbatch 401(k) Plan and the Nuvectra 401(k) Plan if, and to the extent, investments under such plans are comprised of Greatbatch Common Stock or Nuvectra
Common Stock. Each of Greatbatch and Nuvectra shall determine the extent to which and when Greatbatch Common Stock (in the case of the Nuvectra 401(k) Plan) and Nuvectra Common Stock (in the case of the Greatbatch 401(k) Plan) shall cease to be an
investment alternative thereunder. 
 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 

  
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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) Except as provided below, the members of the Nuvectra Group who had previously adopted a Greatbatch
Welfare Plan and were participating employers therein on the Distribution Date (“Participating Nuvectra Employers”) shall on or before 11:59 p.m. on that date, withdraw from such participation, and, effective on or after the Distribution
Date, Nuvectra and/or the Participating Nuvectra Employers (with Nuvectra included in the definition of Participating Nuvectra Employers for purposes of this Article VI) shall assume sponsorship, under newly established welfare plans, of the
coverage and benefits which were offered under such plans to the Nuvectra Employees and the Former Nuvectra Employees (and their eligible spouses and dependents as the case may be) of the Participating Nuvectra Employers (collectively, the
“Nuvectra Welfare Plan Participants”). The appropriate members of the Nuvectra Group shall ensure that such coverage and benefits are provided to the Nuvectra Welfare Plan Participants on an uninterrupted basis. Except as provided below,
effective as soon as possible after the Distribution Date, liabilities relating to the Nuvectra Welfare Plan Participants shall be spun off from each Greatbatch Welfare Plan and allocated to the corresponding new Nuvectra Welfare Plan. 

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

(a) Treatment of Incurred Claims. 

(i) Insured Benefits. With respect to benefits that, on or 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

  
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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. 
 (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; (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; and (D) with respect to a period of continuous hospitalization, upon the
date of admission to the hospital, unless otherwise provided under the terms of the applicable Greatbatch Welfare Plan. 
 (b) Credit for
Deductibles and Other Limits. With respect to each Nuvectra Welfare Plan Participant, the Nuvectra Welfare Plans will give credit in its initial plan year for any amount paid, number of services obtained or visits provided under the comparable
type Greatbatch Welfare Plan by such Nuvectra Welfare Plan Participant in the plan year which includes the Distribution Date toward deductibles, number of services or visits, or other similar permissible limitations to the extent such amounts are
taken into account under the comparable type Greatbatch Welfare Plan. 
 (c) COBRA. Effective as of the Distribution Date, Nuvectra
shall be responsible for COBRA with respect to all Nuvectra Employees and Former Nuvectra Employees. As of the effective date of the Nuvectra Welfare Plan, Nuvectra will satisfy all requirements under COBRA with respect to all Nuvectra Employees
under the Nuvectra Welfare Plans. 
 Section 6.3 Continuity of Benefits, Benefit Elections and Beneficiary Designations. 

(a) Benefit Elections and Designations. As of the Distribution Date (or such other date provided for under Section 6.3(b)),
Nuvectra shall cause the Nuvectra Welfare Plans to recognize and give effect to all elections and designations (including all coverage and contribution elections and beneficiary designations) made by each Nuvectra Welfare Plan Participant under, or
with respect to, the corresponding Greatbatch Welfare Plan for plan year 2016. 
 (b) Additional Details Regarding Flexible Spending
Accounts. Effective as of the Distribution Date, a Participating Nuvectra Employer will establish under the Nuvectra Welfare Plans a health care flexible spending account and/or dependent care flexible spending account (each a “Nuvectra
FSA”) for each Nuvectra Welfare Plan Participant that has a health care flexible spending account and/or dependent care flexible spending account under the Greatbatch Welfare Plans (each a “Greatbatch FSA”) immediately prior to the
Distribution Date. All activity under a Nuvectra Welfare Plan Participant’s Greatbatch FSA (that is, both contributions to and expenses paid from each account) for plan year 2016 through the Distribution Date shall be treated as activity under
the corresponding Nuvectra FSA, such that the Nuvectra Welfare Plan Participant’s account balance in his Nuvectra FSA on the Distribution Date will be equal to 

  
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such participant’s Greatbatch FSA balance immediately prior to the Distribution Date. A Nuvectra Welfare Plan Participant’s Greatbatch FSA salary reduction election will apply with
respect to his Nuvectra FSA for the portion of plan year 2016 beginning on the Distribution Date and ending on December 31, 2016 (the “Participation Period”). A Nuvectra Welfare Plan Participant will continue to have access to his
Greatbatch FSA in accordance with its terms and conditions. Thus, the Parties agree that (i) all qualifying expenses incurred by a Nuvectra Welfare Plan Participant during a Participation Period will be reimbursed under the Nuvectra Welfare
Plan Participant’s Nuvectra FSA and (ii) all qualifying expenses incurred by the Nuvectra Welfare Plan Participant for plan year 2016 prior to the Participation Period will be reimbursed under the Nuvectra Welfare Plan Participant’s
Greatbatch FSA (in both cases in accordance with the applicable account’s terms and conditions and to the extent credits are available). Following the Distribution Date, with respect to the portion of plan year 2016 prior to the Participation
Period, the Parties will determine and agree on the aggregate amount of Nuvectra Welfare Plan Participants’ contributions to the Greatbatch FSA (“Aggregate FSA Contribution Amount”) and the aggregate amount of Nuvectra Welfare Plan
Participants’ expenses incurred and reimbursed from the Greatbatch FSA (“Aggregate FSA Expense Amount”). If the Aggregate FSA Expense Amount exceeds the Aggregate FSA Contribution Amount, Nuvectra shall reimburse Greatbatch for the
total amount of the excess no later than 30 days after the Distribution Date; if the Aggregate FSA Contribution Amount exceeds the Aggregate FSA Expense Amount, Greatbatch shall reimburse Nuvectra for the total amount of the excess no later than 30
days after the Distribution Date. Within 30 days after the Distribution Date, the Parties will determine and agree on the total amount of the reimbursements made to Nuvectra Welfare Plan Participants from their Greatbatch FSAs for qualifying
expenses incurred prior to the Distribution Date and Nuvectra will reimburse Greatbatch for such amount within 30 days after such determination has been made. 

(c) Employer Non-Elective Contributions. As of the Distribution Date, Nuvectra shall cause any Nuvectra Welfare Plan that constitutes a
cafeteria plan under Section 125 of the Code to recognize and give effect to all non-elective employer contributions payable and paid toward coverage of a Nuvectra Welfare Plan Participant under the corresponding Greatbatch Welfare Plan that is
a cafeteria plan under Section 125 of the Code for the applicable cafeteria plan year. 
 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 

  
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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. 

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

  
 - 23 - 

 
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 

  
 - 24 - 

 
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

  
 - 25 - 

 
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] 

  
 - 26 - 

 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:	 	  

	Name:	 	
	Title:	 	
	
	QIG GROUP, LLC
	(to be converted into Nuvectra Corporation)
		
	By:	 	  

	Name:	 	
	Title:	 	

  
 - 27 -EX-10.5

 Exhibit 10.5 

PRODUCT COMPONENT FRAMEWORK AGREEMENT 

This PRODUCT COMPONENT FRAMEWORK AGREEMENT (the “Agreement”), effective the      day of
            ,          (the “Effective Date”) is by and between Greatbatch Ltd., a New York corporation, located at 10000 Wehrle
Drive, Clarence, New York, 14031, (“Greatbatch”) and QiG Group, LLC, a Delaware limited liability company, located at 5700 Granite Parkway, Suite 960, Plano, Texas, 75024 (“QiG Group”). Greatbatch and QiG
Group are referred to collectively as the “Parties” and individually as a “Party,” 
 RECITALS: 

WHEREAS, QiG Group and Greatbatch entered into that certain Restricted License Agreement, dated
                 ,         , pursuant to which QiG Group licensed to Greatbatch certain of its intellectual property (the
“Restricted License Agreement”); 
 WHEREAS, QiG Group and Greatbatch entered into that certain Unrestricted License
Agreement, dated                  ,         , pursuant to which QiG Group licensed to Greatbatch certain of its intellectual
property (the “Unrestricted License Agreement”); 
 WHEREAS, QiG Group desires to purchase, and require the QiG Affiliates
and the QiG Licensees to purchase, exclusively from Greatbatch, all Product Components for each Product it or they, as applicable, may develop or have developed on its or their behalf; 

WHEREAS, Greatbatch is in the business of manufacturing and supplying Product Components; and 

WHEREAS, the Parties desire to establish a framework of the terms and conditions that shall apply to QiG Group’s or each QiG
Licensee’s or QiG Affiliate’s, as applicable, purchase of all Product Components exclusively from Greatbatch. 
 NOW, THEREFORE,
in consideration of the mutual covenants contained herein, Greatbatch and QiG Group hereby agree as follows: 
  

	Article  I.	DEFINITIONS 

 As used in this Agreement, the following capitalized terms, whether used in
the singular or plural, shall have the meanings set forth in this Article I: 
 Section 1.01 “Affiliate” means,
with respect to any Person, any other Person which controls, is controlled by or is under common control with such Person. A Person shall be deemed to control another Person if such Person possesses, directly or indirectly, the power to direct or
cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise. Without limiting the generality of the foregoing, a Person shall be deemed to control another Person if
any of the following conditions is met: (a) in the case of corporate entities, direct or indirect ownership of at least fifty percent (50%) of the stock or shares having the right to vote for the election of directors, and (b) in the
case of non-corporate entities, direct or indirect ownership of at least fifty percent (50%) of the equity interest with the power to direct the management and policies of such non-corporate entities 

 Section 1.02 “Change of Control” means (i) a consolidation or
merger of a party or other change of control transaction (other than a merger to reincorporate a party in a different jurisdiction) in which the shareholders or members, as applicable, of a party immediately prior to such transaction do not continue
to hold a greater than 50% interest in the successor or survivor entity immediately following such transaction, (ii) a transaction or series of transactions that results in the transfer of more than 50% of the voting power of a party to an
unaffiliated Person or (iii) the sale, lease, transfer or other disposition of all or substantially all of the assets of a party (which shall include any effective transfer of such assets regardless of the structure of any such transaction as a
license or otherwise). 
 Section 1.03 “FDA” means the United States Food and Drug Administration or any
successor entity. 
 Section 1.04 “FDA Approval” means the receipt of all Regulatory Approvals from the FDA
that would permit a Person to sell the Products in the United States. 
 Section 1.05 “Field of Use” means
sacral nerve stimulation and/or deep brain stimulation. 
 Section 1.06 “Initial Term” has the meaning set
forth in Section 2.01. 
 Section 1.07 “Licensed IP” has the meaning in the Restricted License Agreement
and the Unrestricted License Agreement. 
 Section 1.08 “Person” means an individual, a partnership, a
corporation, an association, a joint stock company, a trust, a joint venture, an unincorporated organization, or a governmental entity (or any department, agency, or political subdivision thereof). 

Section 1.09 “Product” means any product for applications in the Field of Use that are currently in development
or that may be developed by QiG Group or by any QiG Affiliates or QiG Licensees that is based on, uses or incorporates the Licensed IP including, without limitation, the Pelvistim sacral nerve stimulation system currently under development (the
“Pelvistim System”); provided that nothing herein is intended to include any surgical accessories or peripheral devices, including, without limitation, torque wrenches, introducers, tunneling tools, adjustable belts, patient
programmers, clinician programmers, external pulse generators and patient feedback tools. 
 Section 1.10 “Product
Components” means all products, parts or components that are based on, uses or incorporates any Licensed IP and that are intended to be incorporated within, used in conjunction with or sold as part of any Product, including, but not limited
to, the Pelvistim System or a deep brain stimulation system medical device ). 
 Section 1.11 “QiG Affiliates”
means each direct or indirect Affiliate of QiG Group. 

  
 2 

 Section 1.12 “QiG Licensees” means each Person to which QiG Group
licenses any or all of its rights to and under the Licensed IP. 
 Section 1.13 “QiG Supply Agreement”
means that certain Supply Agreement, effective January [    ], 2016, by and between Greatbatch and QiG Group. 

Section 1.14 “Regulatory Approvals” means all approvals necessary for the commercial sale of a Product for any
indication in a given country or regulatory jurisdiction, which shall include satisfaction of all applicable regulatory and notification requirements, but which shall exclude any pricing and reimbursement approvals. 

Section 1.15 “Renewal Term” has the meaning set forth in Section 2.03. 

Section 1.16 “Steering Committee” has the meaning set forth in Section 3.02. 

Section 1.17 “Steering Committee Representative” has the meaning set forth in Section 3.02. 

Section 1.18 “Substantial Completion” means that a Product or Product Component has substantially completed all
design, development and testing phases and such Product or Product Component, as applicable, is ready for submission to obtain Regulatory Approval or, if Regulatory Approval is not required, is ready for commercial sale. 

Section 1.19 “Supply Agreement” has the meaning set forth in Section 2.03. 

Section 1.20 “Term” has the meaning set forth in Section 4.01. 

  
 3 

	Article II.	SALE AND PURCHASE OBLIGATIONS 

 Section 2.01 Except as set forth in this
Article II and provided that the QiG Supply Agreement has not been terminated by QiG Group pursuant to Section III.A(i) or Section III.A(ii) thereof, QiG Group agrees to purchase, and require each QiG Affiliate and QiG Licensee to purchase,
exclusively from Greatbatch, all of its or their, as applicable, requirements for Product Components with respect to each Product it or they, as applicable, develops or has developed on its or their behalf. With respect to each Product, the period
during which QiG Group, a QiG Affiliate or a QiG Licensee, as applicable, shall be required to purchase all such Product Components with respect to such Product exclusively from Greatbatch shall commence upon the Substantial Completion of the
development of such Product and continue until the date that is five (5) years after the date of receipt of FDA Approval for such Product (the “Initial Term”); provided, however, if the Product is to never be sold in the United
States or does not need FDA Approval to be sold in the United States, the “Initial Term” shall be the period commencing upon the Substantial Completion of the development of such Product and ending on the date that is five (5) years
after the date of (i) receipt of Regulatory Approval outside the United States for such Product if Regulatory Approval is necessary to permit the sale of such Product outside the United States, or (ii) the first commercial sale of such
Product if no Regulatory Approvals are necessary to permit the sale of such Products. 
 Section 2.02 Upon the Substantial
Completion of a Product and prior to QiG Group, or any QiG Affiliates or QiG Licensees purchasing any such Product or Product Components with respect to such Product from a third party, QiG Group will promptly notify Greatbatch of such Substantial
Completion and, if Greatbatch elects to be the exclusive manufacturer of the Product Components with respect to such Product, the Parties agree (and QiG Group shall cause the QiG Affiliates and the QiG Licensees to agree) to negotiate exclusively
and in good faith for a period not to exceed 120 days regarding entry into a definitive manufacturing and supply agreement for the manufacture and supply of Product Components with respect to such Product(s) (each, a “Supply
Agreement”), which shall document the purchase and sale obligations described in Sections 2.01 and 2.04 below with respect to such Product(s). The Supply Agreement shall contain terms and conditions substantially similar to the terms of the
QiG Supply Agreement, a copy of which is attached hereto as Exhibit A, including, without limitation, (i) pricing for such Product Components that allows each party to achieve substantially similar profit margins as achieved by such
party pursuant to the QiG Supply Agreement, (ii) a provision that is substantially similar to Section II.A. of the QiG Supply Agreement, (iii) a term provision reflecting the Initial Term and a requirement that such Supply Agreement shall
automatically be renewed after the Initial Term for successive terms of one (1) year each (each a “Renewal Term”) unless notice of non-renewal or termination is given not less than three (3) months prior to the expiration
of such Initial Term or Renewal Term, (iv) a right of first refusal provision substantially similar to Section II.C of the QiG Supply Agreement, (v) warranty periods, indemnities, limits of liability and manufacturing, quality and supply
obligations substantially similar to those set forth in the QiG Supply Agreement, and (vi) a “Field of Use” definition that reasonably reflects the field of use for such Product. 

Section 2.03 If, despite good faith and commercially reasonable efforts, Greatbatch and QiG Group, or an QiG Affiliate or QiG
Licensee, as applicable, do not execute and deliver a new Supply Agreement within 120 days of QiG Group’s, QiG Affiliate’s or QiG Licensee’s, as 

  
 4 

 
applicable, notice to Greatbatch of Substantial Completion of development of a new Product or Product Component, as applicable, QiG Group, or such QiG Affiliate or QiG Licensee, as applicable,
shall be free to negotiate a manufacturing and supply agreement with any other third party supplier (a “Third Party Supplier Agreement”), provided that prior to QiG Group’s, QiG Affiliate’s or QiG Licensee’s, as
applicable, execution of a Third Party Supplier Agreement, QiG Group, or such QiG Affiliate or QiG Licensee, as applicable, will provide to Greatbatch the key terms of such proposed Third Party Supplier Agreement and for a period lasting at least
fourteen (14) days after Greatbatch’s receipt of such terms, Greatbatch will have the opportunity to enter into a manufacturing and supply agreement with QiG Group, or such QiG Affiliate or QiG Licensee, as applicable, on terms
substantially consistent with such Third Party Supply Agreement. For the avoidance of doubt, the Parties agree that if the QiG Supply Agreement has been terminated by QiG Group pursuant to Section III.A(i) or Section III.A(ii) thereof, this
Agreement will no longer be in effect and QiG Group, QiG Affiliates and QiG Licensees may seek another third party supplier to manufacture any Products or Product Components that are subject to this Article II. 

Section 2.04 In the event that Greatbatch elects to be the exclusive manufacturer of the Product Components with respect to such
Product, Greatbatch agrees that it shall, subject to the terms of the applicable Supply Agreement and during each such Initial Term, manufacture and sell to QiG Group and each of the QiG Affiliates and QiG Licensees all Product Components as may be
ordered by QiG Group, the QiG Affiliates, or the QiG Licensees with respect to the Product. 
  

	Article III.	PRODUCT DESIGN AND MANUFACTURING INPUT 

 Section 3.01 During the Term, QiG
Group will provide Greatbatch through the Parties’ respective Steering Committee Representatives with information regarding, and an opportunity to participate in, all product design programs and planning for any Product Components for each
Product being developed. In connection therewith, QiG Group shall provide to Greatbatch from time to time with information that may be relevant to the manufacture, design, testing and production of any Product Components. In addition, to the extent
practical, QiG Group shall notify Greatbatch in advance and permit Greatbatch to be present and to participate in appropriate planning meetings with respect to the Product Components of each Products. 

Section 3.02 Steering Committee. 

(a) Each party shall designate three (3) individuals (“Steering Committee Representatives”) who shall be
its representatives on the steering committee (the “Steering Committee”) and responsible for monitoring implementation and coordination of the Parties’ respective obligations under this Agreement. At least one of the Steering
Committee Representatives from each Party shall have authority to make decisions regarding all matters within the scope of this Agreement. Each Party shall have the right, at any time, to notify the other Party of any change in any of its Steering
Committee Representatives, and to send an alternate to any meeting of the Steering Committee. 
 (b) The Steering Committee
shall determine the frequency of its meetings, which shall meet no less frequently than quarterly, and may meet more often to the extent 

  
 5 

 
reasonably requested by either Party. There shall be two (2) Steering Committee Representatives from each Party at any formal meeting of the Steering Committee. The Steering Committee will
designate one (1) of the Steering Committee Representatives to record minutes of any material recommendations made at each meeting. 

(c) Without limiting the responsibilities of the Steering Committee, it shall be responsible for the following: 

(i) generally, to monitor implementation of this Agreement and the Parties’ performance of their respective obligations
hereunder and under each Supply Agreement, including the QiG Supply Agreement; 
 (ii) negotiate, in good faith, on the
pricing terms, specifications and other terms and conditions of any Supply Agreement; 
 (iii) to monitor cooperation and
progress with respect to each Party’s input on, and development of, Product Components; and 
 (iv) to attempt to
informally resolve any issues or disputes arising under this Agreement or any Supply Agreement, including the QiG Supply Agreement. 
  

	Article IV.	TERM 

 Section 4.01 This Agreement will be in full force and effect from the
Effective Date until the Parties agree in writing to terminate this Agreement (the “Term”). 
  

	Article V.	MISCELLANEOUS 

 Section 5.01 Amendment. This Agreement may not be
modified, changed or terminated orally. No change, modification, addition, or amendment shall be valid unless in writing indicating an intent to modify this Agreement and signed by an authorized officer of each Party. 

Section 5.02 No Waiver. The failure of any Party to enforce at any time or for any period any of the provisions of this
Agreement shall not be construed to be waiver of those provisions or of the right of that Party thereafter to enforce each and every provision hereof. No rights under this Agreement shall be waived except by an instrument in writing signed by the
Party sought to be charged with such waiver. 
 Section 5.03 Assignment. This Agreement shall be binding upon, and shall
inure to the benefit of, the Parties’ respective successors and permitted assigns. This Agreement shall not be assignable by QiG Group or Greatbatch without the prior written consent of the other; provided, however, that, upon
thirty (30) days’ prior written notice to the non-assigning Party, such Party, (i) may assign this Agreement, in whole or in part, to any Affiliate provided that it shall remain primarily liable under this Agreement and/or
(ii) shall assign this Agreement to its successor in connection with a Change of Control provided that such successor, in the reasonable judgment of the non-assigning Party is able to perform the assigning Party’s obligations under this
Agreement and/or the applicable unexecuted Supply Agreement, if any. 

  
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 Section 5.04 Notices. Unless otherwise provided in this Agreement, any notice
to be given hereunder shall be in writing and (a) delivered personally (to be effective when so delivered), (b) mailed by registered or certified mail, return receipt requested (to be effective four days after the date it is mailed) or
(c) sent by Federal Express or other overnight courier service (to be effective when received by the addressee), to the following addresses (or to such other addresses which any Party shall designate in writing to the other Party): 

If to Greatbatch: 

Greatbatch Ltd. 

10000 Wehrle Drive 

Clarence, NY 14031 

Attention: General Counsel 

If to QiG Group: 

QiG Group, LLC 

5700 Granite Parkway, Suite 960 

Plano, Texas, 75024 

Attention: Chief Executive Officer 

Section 5.05 Successors and Assigns. This Agreement is binding on and inures to the benefit of the Parties and their
respective permitted successors and permitted assigns. 
 Section 5.06 Injunctive Relief. The Parties hereto agree that
irreparable harm would occur in the event that any of the agreements or provisions of this Agreement were not performed fully by the Parties hereto in accordance with their specific terms or conditions or were otherwise breached, and that money
damages are an inadequate remedy for breach of the Agreement because of the difficulty of ascertaining and quantifying the amount of damage that will be suffered by the Parties hereto in the event that this Agreement is not performed in accordance
with its terms or conditions or is otherwise breached. It is accordingly hereby agreed that the Parties hereto shall be entitled to an injunction or injunctions, without the necessity of proving actual damages, to restrain, enjoin and prevent
breaches of this Agreement by the other Parties and to enforce specifically the terms and provisions of this Agreement in any court of the United States or any state having jurisdiction, such remedy being in addition to, and not in lieu of, any
other rights and remedies to which the other Parties are entitled to at law or in equity. 
 Section 5.07 Governing Law.
This Agreement shall be construed in accordance with and governed by the laws of the State of New York, without giving effect to the provisions, policies or principles thereof relating to choice or conflict of laws. 

Section 5.08 Waiver of Jury Trial. Each Party acknowledges and agrees that any controversy that may arise under this
Agreement, including any appendices attached to this Agreement, is likely to involve complicated and difficult issues and, therefore, each such Party 

  
 7 

 
irrevocably and unconditionally waives any right it may have to a trial by jury in respect of any legal action arising out of or relating to this Agreement, including any appendices attached to
this Agreement, or the transactions contemplated hereby. 
 Section 5.09 No Third-Party Beneficiaries. This Agreement
benefits solely the Parties to this Agreement and their respective permitted successors and permitted assigns and nothing in this Agreement, express or implied, confers on any other Person any legal or equitable right, benefit or remedy of any
nature whatsoever under or by reason of this Agreement. 
 Section 5.10 Titles of Sections. The section and other
headings contained in this Agreement are for reference purposes only and shall not affect the meaning or interpretation of this Agreement. 

Section 5.11 Entire Agreement. This Agreement, the Restricted License Agreement and the Unrestricted License Agreement
constitutes the entire agreement among the Parties hereto with respect to the subject matter hereof and thereof, and supersedes any prior agreement or understanding among the Parties hereto with respect to the subject matter hereof. For the
avoidance of doubt, nothing in this Agreement shall expand the rights of Greatbatch under the Restricted License Agreement or the Unrestricted License Agreement. 

Section 5.12 Counterparts. This Agreement may be executed either directly or by an attorney-in-fact, in any number of
counterparts of the signature pages, each of which shall be considered an original. Facsimile or pdf transmission of an executed counterpart of this Agreement shall be deemed to constitute due and sufficient delivery of such counterpart, and such
facsimile or pdf signatures shall be deemed original signatures for purposes of enforcement and construction of this Agreement. 

Section 5.13 Severability. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall,
as to such jurisdiction, be enforced to the maximum extent possible without invalidating the remaining portions hereof or affecting the validity or enforceability of such provision in any other jurisdiction. 

[SIGNATURE PAGE FOLLOWS] 

  
 8 

 IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed by their
authorized representatives. 
  

									
	QiG Group, LLC	 		 	Greatbatch Ltd.
					
	By:	 	  
	 		 	By:	 	  

	Name:	 	  
	 		 	Name:	 	  

	Title:	 	  
	 		 	Title:	 	  

	Date:	 	  
	 		 	Date:	 	  

  
 9

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