Document:

EX-10.1

 Exhibit 10.1 

TRANSITION SERVICES AGREEMENT 

BETWEEN 
 GREATBATCH, INC. 

and 
 QIG GROUP, LLC 

(to be converted into NUVECTRA CORPORATION) 

Dated                     , 2016

 TABLE OF CONTENTS 

 

									
	 	 	 	  	 	  	Page No.	 
		
	ARTICLE I DEFINITIONS	  	 	1	  
		 	Section 1.1	  	Definitions	  	 	1	  
		
	 ARTICLE II TRANSITION SERVICES
	  	 	2	  
		 	Section 2.1	  	Transition Services	  	 	2	  
		 	Section 2.2	  	Service Coordinators	  	 	3	  
		 	Section 2.3	  	Additional Transition Services	  	 	3	  
		 	Section 2.4	  	Third Party Transition Services	  	 	3	  
		 	Section 2.5	  	Standard of Performance; Limitation of Liability	  	 	3	  
		 	Section 2.6	  	Service Boundaries and Scope	  	 	5	  
		 	Section 2.7	  	Cooperation	  	 	5	  
		 	Section 2.8	  	Nature of Transition Services; Changes	  	 	5	  
		 	Section 2.9	  	Access	  	 	6	  
		
	 ARTICLE III SERVICE CHARGES
	  	 	6	  
		 	Section 3.1	  	Compensation	  	 	6	  
		
	 ARTICLE IV PAYMENT
	  	 	6	  
		 	Section 4.1	  	Payment	  	 	6	  
		 	Section 4.2	  	Payment Disputes	  	 	6	  
		 	Section 4.3	  	Review of Charges; Error Correction	  	 	7	  
		 	Section 4.4	  	Taxes	  	 	7	  
		 	Section 4.5	  	Records	  	 	7	  
		
	 ARTICLE V TERM
	  	 	7	  
		 	Section 5.1	  	Term	  	 	7	  
		
	 ARTICLE VI DISCONTINUATION OF TRANSITION SERVICES
	  	 	8	  
		 	Section 6.1	  	Discontinuation of Transition Services	  	 	8	  
		 	Section 6.2	  	Procedures Upon Discontinuation or Termination of Transition Services	  	 	8	  
		
	 ARTICLE VII DEFAULT
	  	 	8	  
		 	Section 7.1	  	Termination for Default	  	 	8	  
		
	 ARTICLE VIII INDEMNIFICATION AND WAIVER
	  	 	9	  
		 	Section 8.1	  	Waiver of Consequential Damages	  	 	9	  
		 	Section 8.2	  	Transition Services Received	  	 	9	  
		 	Section 8.3	  	Express Negligence	  	 	10	  
		
	 ARTICLE IX CONFIDENTIALITY
	  	 	10	  
		 	Section 9.1	  	Confidentiality	  	 	10	  
		
	 ARTICLE X FORCE MAJEURE
	  	 	11	  
		 	Section 10.1	  	Performance Excused	  	 	11	  

  
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		 	Section 10.2	  	Notice	  	 	11	  
		 	Section 10.3	  	Cooperation	  	 	11	  
		
	 ARTICLE XI GENERAL PROVISIONS
	  	 	11	  
		 	 Section 11.1
	  	Entire Agreement	  	 	11	  
		 	 Section 11.2
	  	Binding Effect; No Third-Party Beneficiaries; Assignment	  	 	12	  
		 	 Section 11.3
	  	Amendment; Waivers	  	 	12	  
		 	 Section 11.4
	  	Notices	  	 	12	  
		 	 Section 11.5
	  	Counterparts; Facsimile Signatures	  	 	12	  
		 	 Section 11.6
	  	Severability	  	 	12	  
		 	 Section 11.7
	  	Governing Law	  	 	13	  
		 	 Section 11.8
	  	Performance	  	 	13	  
		 	 Section 11.9
	  	Relationship of Parties	  	 	13	  
		 	 Section 11.10
	  	Regulations	  	 	13	  
		 	 Section 11.11
	  	Construction	  	 	13	  
		 	 Section 11.12
	  	Effect if Separation does not Occur	  	 	14	  

 Schedule A – Schedule of Transition Services and Fees 

  
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 TRANSITION SERVICES AGREEMENT 

This TRANSITION SERVICES AGREEMENT (together with Schedule A hereto, this “Agreement”) is entered into as of
                    , 2016, by and between Greatbatch, Inc., a Delaware corporation (“GB”), and QiG Group, LLC, a Delaware limited
liability company (to be converted into Nuvectra Corporation, a Delaware corporation) (“Nuvectra”). 
 WHEREAS, the Board
of Directors of GB has determined that it would be appropriate and desirable for GB to distribute (the “Distribution”) on a pro rata basis to the holders of outstanding shares of common stock, par value $0.001 per share, of GB all of the
outstanding shares of common stock, par value $0.001 per share, of Nuvectra owned by GB; 
 WHEREAS, in order to effectuate the
foregoing, GB and Nuvectra have entered into a Separation and Distribution Agreement, dated as of the date hereof (the “Separation Agreement”), which provides, among other things, upon the terms and subject to the conditions thereof, for
the separation of the respective businesses of GB and Nuvectra and the Distribution, and the execution and delivery of certain other agreements, including this Agreement, in order to facilitate and provide for the foregoing; and 

WHEREAS, in order to provide for an orderly transition under the Separation Agreement, it will be advisable for GB to provide to
Nuvectra those services described herein for a period of time. 
 NOW, THEREFORE, in consideration of the premises and the mutual
covenants and agreements herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, 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 below: 

“Additional Transition Services” has the meaning set forth in Section 2.3. 

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

“Distribution” has the meaning set forth in the recitals. 

“Force Majeure Event” has the meaning set forth in Section 10.1. 

“GB” has the meaning set forth in the preamble. 

“IT Guidelines” has the meaning set forth in Section 2.1(c). 

“Nuvectra” has the meaning set forth in the preamble. 

  
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 “Schedule A” means the Schedule A attached hereto. 

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

“Service Coordinator” has the meaning set forth in Section 2.2. 

“Transition Services” has the meaning set forth in Section 2.1(a). 

“Tax” has the meaning set forth in Section 4.4. 

Capitalized terms used but not otherwise defined in this Agreement shall have the respective meanings assigned to such terms in the Separation
Agreement. 
 ARTICLE II 

TRANSITION SERVICES 

Section 2.1 Transition Services.  

(a) Upon the terms and subject to the conditions of this Agreement, GB, acting directly or through its Affiliates and its and their respective
employees, agents, contractors or independent third parties designated by any of them, agrees to use commercially reasonable efforts to provide or to cause to be provided services to the Nuvectra Group as set forth in Schedule A (including
any Additional Transition Services provided in accordance with Section 2.3 hereof, all such services are collectively referred to herein as the “Transition Services”). 

(b) At all times during the performance of the Transition Services, all Persons performing such Transition Services (including agents,
temporary employees, independent third parties and consultants) shall be construed as being independent from the Nuvectra Group, and such Persons shall not be considered or deemed to be employees of any member of the Nuvectra Group nor entitled to
any employee benefits of Nuvectra as a result of this Agreement. The responsibility of such Persons is to perform the Transition Services in accordance with this Agreement and, as necessary, to advise the applicable member of the Nuvectra Group in
connection therewith, and such Persons shall not be responsible for decision-making on behalf of any member of the Nuvectra Group. Such Persons shall not be required to report to management of any member of the Nuvectra Group nor be deemed to be
under the management or direction of any member of the Nuvectra Group. Nuvectra acknowledges and agrees that, except as may be expressly set forth herein as a Transition Service (including any Additional Transition Services provided in accordance
with Section 2.3 hereof) or otherwise expressly set forth in the Agreement or any other Ancillary Agreement, no member of the GB Group shall be obligated to provide, or cause to be provided, any service or goods to any member of the Nuvectra
Group. 
 (c) Notwithstanding anything to the contrary in this Agreement, GB and other members of the GB Group shall not be required to
perform Transition Services hereunder or take any actions relating thereto that conflict with or violate any applicable law, contract, license, authorization, certification or permit, GB’s Code of Business Conduct and Ethics or other corporate
governance policies, or GB’s information technology security and data transfer guidelines (the “IT Guidelines”), as each may be amended from time to time. 

  
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 (d) Nuvectra, for itself and the other members of the Nuvectra Group, acknowledges and agrees to
abide by the IT Guidelines during the term of this Agreement. 
 Section 2.2 Service Coordinators. Each party will
nominate in writing a representative to act as the primary contact with respect to the provision of the Transition Services and the resolution of disputes under this Agreement (each such person, a “Service Coordinator”). The initial
Service Coordinators shall be Timothy G. McEvoy and Chris Hanna (or their respective designees) for each of GB and Nuvectra, respectively. The Service Coordinators shall meet as expeditiously as possible to resolve any dispute hereunder; and
any dispute that is not resolved by the Service Coordinators within 30 days shall be resolved in accordance with the dispute resolution procedures set forth in Article V of the Separation Agreement. Each party hereto may treat an act of a Service
Coordinator of the other party hereto which is consistent with the provisions of this Agreement as being authorized by such other party without inquiring behind such act or ascertaining whether such Service Coordinator had authority to so act;
provided, however, that no such Service Coordinator shall have authority to amend this Agreement. GB and Nuvectra shall advise each other promptly (in any case no more than five Business Days) in writing of any change in their
respective Service Coordinators, setting forth the name of the replacement, and stating that the replacement Service Coordinator is authorized to act for such party in accordance with this Section 2.2. 

Section 2.3 Additional Transition Services. Nuvectra may request additional Transition Services (the “Additional
Transition Services”) from GB by providing written notice to GB, which GB in its sole discretion may decline to provide. If GB undertakes to provide the Additional Transition Services, the parties shall negotiate in good faith regarding a
written agreement as to the nature, cost, duration and scope of such Additional Transition Services, GB and Nuvectra shall supplement in writing Schedule A to include such Additional Transition Services. Except where the context otherwise
indicates or requires, any such Additional Transition Services shall be deemed to be “Transition Services” under this Agreement. 

Section 2.4 Third Party Transition Services. GB shall have the right to hire third-party subcontractors to provide all or
part of any Transition Service hereunder to the extent it reasonably determines it requires the use of third-party subcontractors in providing any such Transition Service; provided, however, that GB shall be responsible for the costs of such
third-party contractor. If Nuvectra requests Transition Services outside the scope of this Agreement, then GB will notify Nuvectra that such Transition Services are outside the scope and GB shall have the right to hire
third-party subcontractors and Nuvectra will be responsible for the costs of such third-party subcontractors; provided that no failure by GB to notify Nuvectra that such Transition Services are outside the
scope of this Agreement will affect Nuvectra’s responsibility for the cost of such third party subcontractors. 

Section 2.5 Standard of Performance; Limitation of Liability.  

(a) The Transition Services to be provided hereunder shall be performed with the same general degree of care, at the same general level and at
the same general degree of accuracy and responsiveness, as when performed for the GB Group (including, for this purpose, Nuvectra and its subsidiaries) prior to the date of this Agreement. While GB agrees to use commercially reasonable efforts in
providing the Transition Services, it is understood and agreed that GB and 

  
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the members of the GB Group are not professional providers of the types of services included in the Transition Services and that GB personnel performing Transition Services have other
responsibilities and will not be dedicated full-time to performing Transition Services hereunder. GB also represents that it shall, and shall cause its Affiliates to, comply at all times during the term of this Agreement with all applicable laws and
regulations relating in any way to the Transition Services. GB shall, if required, obtain and maintain all material permits, approvals and licenses necessary or appropriate to perform its duties and obligations (including all Transition Services)
under this Agreement and shall at all times comply (or in the case of any providers of Transition Services who are contractors or independent third parties, to use commercially reasonable efforts to cause them to comply) with the terms and
conditions of such permits, approvals and licenses. 
 (b) In the event GB or any member of the GB Group fails to provide, or cause to be
provided, the Transition Services in accordance with the standard of service set forth in Section 2.5(a) or Section 2.5(c), Nuvectra may object to any amounts invoiced for such Transition Services in accordance with Section 4.2;
provided, however, that in the event GB defaults in the manner described in Section 7.1(c), Nuvectra shall have the further rights set forth in Section 7.1(c). 

(c) EXCEPT AS EXPRESSLY SET FORTH IN THIS SECTION 2.5, NO REPRESENTATIONS OR WARRANTIES OF ANY KIND, EXPRESSED OR IMPLIED (INCLUDING THE
WARRANTIES OF NON-INFRINGEMENT, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR CONFORMITY TO ANY REPRESENTATION OR DESCRIPTION), ARE MADE BY GB OR ANY MEMBER OF THE GB GROUP WITH RESPECT TO THE TRANSITION SERVICES UNDER THIS AGREEMENT AND, TO
THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ALL SUCH REPRESENTATIONS OR WARRANTIES ARE HEREBY WAIVED AND DISCLAIMED. NUVECTRA (ON ITS OWN BEHALF AND ON BEHALF OF EACH OTHER MEMBER OF THE NUVECTRA GROUP) HEREBY EXPRESSLY WAIVES ANY RIGHT NUVECTRA
OR ANY MEMBER OF THE NUVECTRA GROUP MAY OTHERWISE HAVE FOR ANY LOSSES, TO ENFORCE SPECIFIC PERFORMANCE OR TO PURSUE ANY OTHER REMEDY AVAILABLE IN CONTRACT, AT LAW OR IN EQUITY IN THE EVENT OF ANY NON-PERFORMANCE, INADEQUATE PERFORMANCE, FAULTY
PERFORMANCE OR OTHER FAILURE OR BREACH BY GB OR ANY MEMBER OF THE GB GROUP UNDER OR RELATING TO THIS AGREEMENT, NOTWITHSTANDING THE NEGLIGENCE OR GROSS NEGLIGENCE (WHETHER SOLE, JOINT OR CONCURRENT OR ACTIVE OR PASSIVE) OF GB OR ANY MEMBER OF THE GB
GROUP OR ANY THIRD PARTY SERVICE PROVIDER AND WHETHER DAMAGES ARE ASSERTED IN CONTRACT OR TORT, UNDER FEDERAL, STATE OR NON U.S. LAWS OR OTHER STATUTE OR OTHERWISE; PROVIDED, HOWEVER, THAT THE FOREGOING WAIVER SHALL NOT EXTEND TO COVER, AND GB SHALL
BE RESPONSIBLE FOR, SUCH LOSSES CAUSED BY THE WILLFUL MISCONDUCT OF GB OR ANY MEMBER OF THE GB GROUP OR AN INTENTIONAL BREACH UNDER THE AGREEMENT BY GB OR ANY MEMBER OF THE GB GROUP. NOTWITHSTANDING ANYTHING IN THIS AGREEMENT TO THE CONTRARY, IN NO
EVENT SHALL THE GB GROUP BE LIABLE TO THE NUVECTRA GROUP WITH RESPECT TO CLAIMS ARISING OUT OF THIS AGREEMENT FOR AMOUNTS IN THE AGGREGATE EXCEEDING SEVEN HUNDRED AND FIFTY THOUSAND DOLLARS ($750,000). 

  
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 Section 2.6 Service Boundaries and Scope.  

(a) Except as provided in Schedule A for a specific Transition Service: (i) GB shall be required to provide, or cause to be
provided, the Transition Services only at the locations such Transition Services are being provided by any member of the GB Group for any member of the Nuvectra Group immediately prior to the Distribution Date; provided, however, that,
to the extent any such Transition Service is to be provided by an employee of GB who works in the Clarence, New York, Plano, Texas or Frisco, Texas corporate offices of GB, such Transition Service shall, to the extent feasible, only be provided by
such employee from the corporate offices of GB; and (ii) the Transition Services shall be available only for purposes of conducting the business of the Nuvectra Group substantially in the manner it was conducted immediately prior to the
Distribution Date. 
 (b) In providing, or causing to be provided, the Transition Services, GB shall not be obligated to: (i) maintain
the employment of any specific employee or hire additional employees or third-party service providers; (ii) purchase, lease or license any additional equipment (including computer equipment, furniture, furnishings, fixtures, machinery,
vehicles, tools and other tangible personal property), software or other assets, rights or properties; (iii) make modifications to its existing systems or software, including renewing or extending any software license beyond its current term;
(iv) provide any member of the Nuvectra Group with access to any systems or software other than those to which it has authorized access immediately prior to the Distribution Date and for which it is reasonably practical to segregate Nuvectra
Group data from GB data; (v) pay any costs related to the transfer or conversion of data of any member of the Nuvectra Group; (vi) administer Nuvectra Group benefit plans or (vii) facilitate or conduct audits by or for any regulatory
agency, including, but not limited to, the United States Department of Labor. For the avoidance of doubt, the Transition Services do not include any services required for or as the result of any business acquisitions, divestitures, start-ups or
terminations by the Nuvectra Group. 
 Section 2.7 Cooperation. GB and Nuvectra shall cooperate with one another in good faith
and provide such further assistance as the other party may reasonably request in connection with the provision of Transition Services hereunder. 

Section 2.8 Nature of Transition Services; Changes. Subject to Sections 2.3 and 2.5, the parties acknowledge the temporary
nature of the Transition Services and that GB may make changes from time to time in the manner of performing the Transition Services. If such change in performance is expected to be material to Nuvectra, GB agrees to provide Nuvectra with prompt
notice of such change. Nuvectra acknowledges (for itself and for the other members of the Nuvectra Group) that the employees of GB or any other members of the GB Group who may be assisting in the provision of Transition Services hereunder are
at-will employees and, as such, may terminate or be terminated from employment with GB or any of the other members of the GB Group providing Transition Services hereunder at any time for any reason. 

  
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 Section 2.9 Access. During the term of this Agreement and for so long as any
Transition Services are being provided to Nuvectra by GB, Nuvectra will provide GB and its authorized representatives reasonable access, during regular business hours upon reasonable notice, to Nuvectra and its employees, representatives, facilities
and books and records as GB and its representatives may reasonably require in order to perform such Transition Services. 
 ARTICLE III 

SERVICE CHARGES 
 Section 3.1
Compensation. In consideration for the provision of the Transition Services, Nuvectra shall pay to GB or, at the election of GB, a member of the GB Group, the applicable fees as set forth in Schedule A. 

ARTICLE IV 
 PAYMENT 

Section 4.1 Payment. Except as otherwise provided in Schedule A for a specific Transition Service, charges for Transition
Services shall be invoiced monthly by GB or, at its option, the member of the GB Group providing the Transition Service. Nuvectra shall make the corresponding payment no later than 60 days after receipt of the invoice. Each invoice shall be directed
to the Nuvectra Service Coordinator or such other person designated in writing from time to time by such Service Coordinator. The invoice shall set forth in reasonable detail the Transition Services rendered and the invoice amount for the Transition
Services rendered for the period covered by such invoice. Interest will accrue on any unpaid amounts at eighteen percent (18%) per annum (compounded monthly) or, if less, the maximum non-usurious rate of interest permitted by applicable law,
until such amounts, together with all accrued and unpaid interest thereon, are paid in full. All timely payments under this Agreement shall be made without early payment discount. If GB incurs any reasonable out-of-pocket expenses or remits funds to
a third-party on behalf of Nuvectra, in either case in connection with the rendering of Transition Services, then GB shall include such amount on its monthly invoice to Nuvectra, with reasonable supporting documentation, and Nuvectra shall reimburse
that amount to GB pursuant to this Section 4.1 as part of its next monthly payment. 
 Section 4.2 Payment Disputes.
Nuvectra may object to any invoiced amounts for any Transition Service at any time before, at the time of, or after payment is made, provided such objection is made in writing to GB within 30 days following the date of the disputed invoice. Nuvectra
shall timely pay the disputed items in full while resolution of the dispute is pending; provided, however, that GB shall pay interest at a rate of eighteen percent (18%) per annum (compounded monthly) on any amounts it is required to return to
Nuvectra upon resolution of the dispute. Payment of any amount shall not constitute approval thereof. The Service Coordinators shall meet as expeditiously as possible to resolve any dispute. Any dispute that is not resolved by the Service
Coordinators within 60 days following the date of the disputed invoice shall be resolved in accordance with the dispute resolution and arbitration procedures set forth in Article V of the Separation Agreement. Upon written request, GB will provide
to Nuvectra reasonable detail and support documentation to permit Nuvectra to verify the accuracy of an invoice. 

  
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 Section 4.3 Review of Charges; Error Correction. GB shall maintain
accurate books and records (including invoices of third parties) related to the Transition Services sufficient to calculate, and allow Nuvectra to verify, the amounts owed under this Agreement. From time to time until 90 days following the
termination of this Agreement, Nuvectra shall have the right to review, and GB shall provide access to, such books and records to verify the accuracy of such amounts, provided that such reviews shall not occur more frequently than once per calendar
quarter. Each such review shall be conducted during normal business hours and in a manner that does not unreasonably interfere with the operations of GB. If, as a result of any such review, Nuvectra determines that it overpaid any amount to GB, then
Nuvectra may raise an objection pursuant to the provisions of Section 4.2. Nuvectra shall bear the cost and expense of any such review. GB shall make adjustments to charges as required to reflect the discovery of errors or omissions in charges.

 Section 4.4 Taxes. All transfer taxes, excises, fees or other charges (including value added, sales, use or receipts taxes,
but not including a tax on or measured by the income, net or gross revenues, business activity or capital of a member of the GB Group), or any increase therein, now or hereafter imposed directly or indirectly by law upon any fees paid hereunder for
Transition Services, which a member of the GB Group is required to pay or incur in connection with the provision of Transition Services hereunder (“Tax”), shall be passed on to Nuvectra as an explicit surcharge and shall be paid by
Nuvectra in addition to any Transition Service fee payment, whether included in the applicable Transition Service fee payment, or added retroactively. If Nuvectra submits to GB a timely and valid resale or other exemption certificate acceptable to
GB and sufficient to support the exemption from Tax, then such Tax will not be added to the Transition Service fee payable pursuant to Article III; provided, however, that if a member of the GB Group is ever required to pay such Tax, Nuvectra will
promptly reimburse GB for such Tax, including any interest, penalties and attorney’s fees related thereto. The parties will cooperate to minimize the imposition of any Taxes. 

Section 4.5 Records. GB shall maintain true and correct records of all receipts, invoices, reports and such other documents
relating to the Transition Services hereunder in accordance with its standard accounting practices and procedures, consistently applied. GB shall retain such accounting records and make them available to Nuvectra’s authorized representatives
and auditors for a period of not less than one year from the close of each fiscal year of GB; provided, however, that GB may, at its option, transfer such accounting records to Nuvectra upon termination of this Agreement. 

ARTICLE V 
 TERM 

Section 5.1 Term. Subject to Articles VI and VII, the GB Group shall provide each Transition Service to the Nuvectra Group
pursuant to this Agreement for the time period set forth in Schedule A relating to that specific Transition Service and, if a time period is not specified on Schedule A with respect to that specific Transition Service, for a period of
no longer than two years from the Distribution Date. In accordance with the Separation Agreement and Article VI of this Agreement, Nuvectra shall undertake to provide to itself and the other members of the Nuvectra Group, and to terminate as soon as
reasonably practicable, the Transition Services provided to the Nuvectra Group hereunder. The parties shall cooperate as reasonably required to 

  
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effectuate an orderly and systematic transfer to the Nuvectra Group or a third-party service provider designated by the Nuvectra Group of all or any portion of the duties and obligations
previously performed by GB or a member of the GB Group under this Agreement. Except as otherwise expressly agreed or unless sooner terminated, this Agreement shall commence upon the Distribution Date and shall continue in full force and effect
between the parties for so long as any Transition Service set forth in Schedule A hereto is being provided to Nuvectra or members of the Nuvectra Group, and this Agreement shall terminate upon the cessation of all Transition Services provided
hereunder. 
 ARTICLE VI 

DISCONTINUATION OF TRANSITION SERVICES 

Section 6.1 Discontinuation of Transition Services. At any time after the Distribution Date, Nuvectra may, without cause and in
accordance with the terms and conditions hereunder and the Separation Agreement, request the discontinuation of one or more specific Transition Services by giving GB at least 30 days’ prior written notice; provided, however, that
any such discontinuation will not affect the amounts payable to GB hereunder unless the discontinued Transition Services represent all of the remaining Transition Services to be provided in Schedule A and then any amounts payable to GB will
be reduced only to the extent of the charges specifically identified in Schedule A. Nuvectra shall be liable to GB for all costs and expenses GB or any member of the GB Group remains obligated to pay in connection with any discontinued
Transition Service or Transition Services, except in the case of a Transition Service terminated by Nuvectra pursuant to Section 7.1(c). 

Section 6.2 Procedures Upon Discontinuation or Termination of Transition Services. Upon the discontinuation or termination of a
Transition Service hereunder, this Agreement shall be of no further force and effect with respect to such Transition Service, except as to obligations accrued prior to the date of discontinuation or termination; provided, however, that
Articles I, IV, VIII, IX and XI and Section 2.5(c) of this Agreement shall survive such discontinuation or termination and any such termination shall not affect any obligation for the payment of Transition Services rendered prior to
termination. Each party and the applicable member(s) of its respective Group shall, within 90 days after discontinuation or termination of a Transition Service, to the extent reasonably practicable, deliver to the other party and the applicable
member(s) of its respective Group originals of all books, records, contracts, receipts for deposits and all other papers or documents in its possession which pertain exclusively to the business of the other party and relate to such Transition
Service; provided that a party may retain copies of material provided to the other party pursuant to this Section 6.2 as it deems necessary or appropriate in connection with its financial reporting obligations or internal control
practices and policies. 
 ARTICLE VII 

DEFAULT 
 Section 7.1
Termination for Default. 
 (a) In the event of a failure of Nuvectra to pay for Transition Services in accordance with the terms of
this Agreement within 15 days of the due date thereof, GB shall notify Nuvectra of such late payment and if Nuvectra fails to pay such invoice within five days of its receipt of such notice, GB shall have the right, in its sole discretion, to
immediately terminate this Agreement with respect to all Transition Services. 

  
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 (b) In the event of a default, in any material respect, in the due performance or observance by
Nuvectra of any of the other terms, covenants or agreements contained in this Agreement, which default is not cured within 30 days of receipt of a written notice of such default, GB shall have the right, in its sole discretion, to immediately
terminate the Transition Service with respect to which the default occurred. 
 (c) In the event of a default, in any material respect, in
the due performance or observance by GB of any of the other terms, covenants or agreements contained in this Agreement, which default is not cured within 30 days of receipt of a written notice of such default, Nuvectra shall have the right, in its
sole discretion, to immediately terminate the Transition Service with respect to which the default occurred. 
 ARTICLE VIII 

INDEMNIFICATION AND WAIVER 

Section 8.1 Waiver of Consequential Damages. NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY UNDER THIS AGREEMENT FOR ANY
EXEMPLARY, PUNITIVE, SPECIAL, INDIRECT, CONSEQUENTIAL, REMOTE OR SPECULATIVE DAMAGES OR ANY LOST PROFITS OR REVENUES, HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY (INCLUDING NEGLIGENCE OR GROSS NEGLIGENCE) ARISING IN ANY WAY OUT OF THIS AGREEMENT,
WHETHER OR NOT SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES; PROVIDED, HOWEVER, THAT THE FOREGOING LIMITATIONS SHALL NOT LIMIT EACH PARTY’S INDEMNIFICATION OBLIGATIONS FOR LIABILITIES TO THIRD PARTIES AS SET FORTH IN THIS
AGREEMENT, THE SEPARATION AGREEMENT OR ANY ANCILLARY AGREEMENT. 
 Section 8.2 Transition Services Received. 

Nuvectra hereby acknowledges and agrees that: 

(a) the Transition Services to be provided hereunder are subject to and limited by the provisions of Section 2.5, Article VII and the
other provisions hereof, including the limitation of remedies available to Nuvectra that restricts available remedies resulting from a Transition Service not provided in accordance with the terms hereof to non-payment and, in certain limited
circumstances, the right to terminate this Agreement; 
 (b) the Transition Services are being provided solely to facilitate the transition
of Nuvectra to a separate company as a result of the Distribution, and GB and its Affiliates do not provide any such Transition Services to non-Affiliates; 

(c) it is not the intent of GB and the other members of the GB Group to render, nor of Nuvectra and the other members of the Nuvectra Group to
receive from GB and the other members of the GB Group, professional advice or opinions, whether with regard to tax, legal, 

  
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treasury, finance, employment or other business and financial matters, or technical advice, whether with regard to information technology or other matters; Nuvectra shall not rely on, or
construe, any Transition Service rendered by or on behalf of GB as such professional advice or opinions or technical advice; and Nuvectra shall seek all third-party professional advice and opinions or technical advice as it may desire or need, and
in any event Nuvectra shall be responsible for and assume all risks associated with the Transition Services, except to the limited extent set forth in Section 2.5 and Article VII; 

(d) with respect to any software or documentation within the Transition Services, Nuvectra shall use such software and documentation
internally and for their intended purpose only, shall not distribute, publish, transfer, sublicense or in any manner make such software or documentation available to other organizations or persons, and shall not act as a service bureau or consultant
in connection with such software; and 
 (e) a material inducement to GB’s agreement to provide the Transition Services is the
limitation of liability and the release provided by Nuvectra in this Agreement. 
 (f) ACCORDINGLY, EXCEPT WITH REGARD TO THE LIMITED
REMEDIES EXPRESSLY SET FORTH HEREIN, NUVECTRA SHALL ASSUME ALL LIABILITY FOR AND SHALL FURTHER RELEASE, DEFEND, INDEMNIFY AND HOLD GB, ANY MEMBER OF THE GB GROUP AND THEIR RESPECTIVE EMPLOYEES, OFFICERS, DIRECTORS AND AGENTS (ALL AS INDEMNIFIED
PARTIES) FREE AND HARMLESS FROM AND AGAINST ALL LOSSES RESULTING FROM, ARISING OUT OF OR RELATED TO THE TRANSITION SERVICES, HOWSOEVER ARISING AND WHETHER OR NOT CAUSED BY THE NEGLIGENCE OR GROSS NEGLIGENCE OF GB, ANY MEMBER OF THE GB GROUP OR ANY
THIRD PARTY SERVICE PROVIDER, OTHER THAN THOSE LOSSES CAUSED BY THE WILLFUL MISCONDUCT OF GB OR ANY MEMBER OF THE GB GROUP. 

Section 8.3 Express Negligence. THE INDEMNITY, RELEASES AND LIMITATIONS OF LIABILITY IN THIS AGREEMENT (INCLUDING ARTICLES II
AND VIII) ARE INTENDED TO BE ENFORCEABLE AGAINST THE PARTIES IN ACCORDANCE WITH THE EXPRESS TERMS AND SCOPE THEREOF NOTWITHSTANDING ANY EXPRESS NEGLIGENCE RULE OR ANY SIMILAR DIRECTIVE THAT WOULD PROHIBIT OR OTHERWISE LIMIT INDEMNITIES BECAUSE OF
THE NEGLIGENCE OR GROSS NEGLIGENCE (WHETHER SOLE, JOINT OR CONCURRENT OR ACTIVE OR PASSIVE) OR OTHER FAULT OR STRICT LIABILITY OF ANY OF THE INDEMNIFIED PARTIES. 

ARTICLE IX 
 CONFIDENTIALITY 

Section 9.1 Confidentiality. Nuvectra and GB each acknowledge and agree that the terms of Section 6.8 of the Separation
Agreement shall apply to information, documents, plans and other data made available or disclosed by one party to the other in connection with this Agreement. Nuvectra and GB each acknowledge and agree that any third party Information (to the extent
such Information does not constitute Greatbatch Books and Records) provided by any 

  
 10 

 
member of the Nuvectra Group to any member of the GB Group after the Distribution Date in connection with the provision of the Transition Services by any member of the GB Group, or generated,
maintained or held in connection with the provision of the Transition Services by any member of the GB Group after the Distribution Date, in each case that primarily relates to the Nuvectra Business, the Nuvectra Assets, or the Nuvectra Liabilities,
shall not be considered Privileged Information of GB or Confidential Information of GB. 
 ARTICLE X 

FORCE MAJEURE 
 Section 10.1
Performance Excused. Continued performance of a Transition Service may be suspended immediately to the extent caused by any event or condition beyond the reasonable control of the party suspending such performance (and not involving any
willful misconduct of such party), including acts of God, pandemics, floods, fire, earthquakes, labor or trade disturbances, strikes, war, acts of terrorism, civil commotion, electrical shortages or blackouts, breakdown or injury to computing
facilities, compliance in good faith with any Law (whether or not it later proves to be invalid), unavailability of materials or bad weather (a “Force Majeure Event”). Nuvectra shall not be obligated to pay any amount for Transition
Services that it does not receive as a result of a Force Majeure Event (and the parties hereto shall negotiate reasonably to determine the amount applicable to such Transition Services not received). In addition to the reduction of any amounts owed
by Nuvectra hereunder, during the occurrence of a Force Majeure Event, to the extent the provision of any Transition Service has been disrupted or reduced, during such disruption or reduction, (a) Nuvectra may replace any such affected
Transition Service by providing any such Transition Service for itself or engaging one or more third parties to provide such Transition Service at the expense of Nuvectra and (b) GB shall cooperate with, provide such information to and take
such other actions as may be reasonably required to assist such third parties to provide such substitute Transition Service. 

Section 10.2 Notice. The party claiming suspension due to a Force Majeure Event will give prompt notice to the other of the
occurrence of the Force Majeure Event giving rise to the suspension and of its nature and anticipated duration. 
 Section 10.3
Cooperation. Upon the occurrence of a Force Majeure Event, the parties shall cooperate with each other to find alternative means and methods for the provision of the suspended Transition Service. 

ARTICLE XI 
 GENERAL PROVISIONS

 Section 11.1 Entire Agreement. This Agreement, including Schedule A, together with the documents referenced herein (including
the Separation Agreement), constitutes the entire agreement and understanding between the parties hereto 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. 

  
 11 

 Section 11.2 Binding Effect; No Third-Party Beneficiaries; Assignment.
This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and permitted assigns; and nothing in this Agreement, express or implied, is intended to confer upon any other person or entity any
rights, benefits or remedies of any nature whatsoever under or by reason of this Agreement. This Agreement may not be assigned by either party hereto, except with the prior written consent of the other party hereto. Any purported assignment in
violation of this Section 11.2 is void. 
 Section 11.3 Amendment; Waivers. No change or amendment may be made to this
Agreement except by an instrument in writing signed on behalf of both of the parties hereto. Either party hereto may, at any time, (i) extend the time for the performance of any of the obligations or other acts of the other, (ii) waive any
inaccuracies in the representations and warranties of the other contained herein or in any document delivered pursuant hereto, and (iii) waive compliance by the other 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 either party hereto in the exercise of any right hereunder shall impair such right or
be construed to be a waiver of, or acquiescence in, any breach of any representation, warranty, covenant or agreement contained herein, nor shall any single or partial exercise of any such right preclude other or further exercise thereof or of any
other right. 
 Section 11.4 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 (i) when personally delivered or (ii) if mailed by registered or certified mail, postage prepaid, return receipt requested, on the date the
return receipt is executed or the letter is refused by the addressee or its agent or (iii) if sent by overnight courier which delivers only upon the signed receipt of the addressee, on the date the receipt acknowledgment is executed or refused
by the addressee or its agent or (iv) if sent by facsimile or electronic mail, on the date confirmation of transmission is received (provided that a copy of any notice delivered pursuant to this clause (iv) shall also be sent pursuant to
clause (i), (ii) or (iii)), addressed to the attention of the addressee’s Chief Financial Officer at the address of its principal executive office or to such other address or facsimile number for a party hereto as it shall have specified
by like notice. 
 Section 11.5 Counterparts; Facsimile Signatures. This Agreement may be executed in counterparts and signature
pages exchanged by facsimile, and each counterpart shall be deemed an original, but all of which shall constitute 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 11.6 Severability. If any term or other provision of this Agreement or Schedule A is determined by a non-appealable
decision by a court, administrative agency or arbitrator to be invalid, illegal or incapable of being enforced by any rule of law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and
effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to either party hereto. Upon such determination that any term

  
 12 

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

Section 11.8 Performance. Each party hereto shall cause to be performed, and hereby guarantees the performance of, all actions,
agreements and obligations set forth herein to be performed by any Subsidiary or Affiliate of such party. 
 Section 11.9
Relationship of Parties. This Agreement does not create a fiduciary relationship, partnership, joint venture or relationship of trust or agency between the parties. The parties hereto agree that GB (and any other member of the GB Group which
performs Transition Services hereunder) is an independent contractor in the performance of Transition Services for the Nuvectra Group under this Agreement. 

Section 11.10 Regulations. All employees of GB and the members of the GB Group shall, when on the property of Nuvectra, conform to
the rules and regulations of Nuvectra concerning safety, health and security which are made known to such employees in advance in writing. 

Section 11.11 Construction. This Agreement shall be construed as if jointly drafted by the parties hereto and no rule of
construction or strict interpretation shall be applied against either party. In this Agreement, unless the context clearly indicates otherwise, words used in the singular include the plural and words used in the plural include the singular; and if a
word or phrase is defined in this Agreement, its other grammatical forms, as used in this Agreement, shall have a corresponding meaning. Whenever the context requires, the gender of all words used in this Agreement includes the masculine, feminine
and the neuter. Unless the context otherwise requires, the words “include,” “includes” and “including” shall be deemed to be followed by the words “without limitation,” and the word “or” shall have
the inclusive meaning represented by the phrase “and/or.” The words “shall” and “will” are used interchangeably in this Agreement and have the same meaning. Relative to the determination of any period of time hereunder,
“from” means “from and including,” “to” means “to but excluding” and “through” means “through and including.” All references herein 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. Whenever this Agreement refers to a number of days, such number shall refer to calendar days unless Business Days are specified. Any reference
herein 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. As used
in this Agreement, 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. 

  
 13 

 
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. 
 Section 11.12 Effect if
Separation does not Occur. If the Distribution does not occur, then all actions and events that are, under this Agreement, to be taken or occur effective as of or following the Distribution Date, or otherwise in connection with the Distribution,
shall not be taken or occur except to the extent specifically agreed by the parties and neither party shall have any liability or further obligation to the other party under this Agreement. 

[Signature page follows.] 

  
 14 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first
written above. 
  

			
	 	 	GREATBATCH, INC.
		
	By:	 	  

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

		 	Name:
		 	Title:EX-10.2

 Exhibit 10.2 

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

  
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	 (b) Redeterminations of Payments and Additional Payments
	  	 	11	  
			
	    Section 4.4	 	Payments by or to Other Members of the Groups	  	 	12	  
			
	    Section 4.5	 	Late Payments	  	 	12	  
			
	    Section 4.6	 	Tax Consequences of Payments	  	 	12	  
			
	    Section 4.7	 	Payment Notices	  	 	13	  
			
	ARTICLE V	 	TAX CONTESTS	  	 	13	  
			
	    Section 5.1	 	Notices	  	 	13	  
			
	    Section 5.2	 	Control of Tax Contests	  	 	13	  
	 (a) General Rule
	  	 	13	  
	 (b) Tax Contests Involving Certain Taxes Reported on a Joint Return
	  	 	13	  
	 (c) Non-Controlling Party Participation Rights
	  	 	14	  
			
	ARTICLE VI	 	ASSISTANCE AND COOPERATION	  	 	15	  
			
	    Section 6.1	 	Provision of Information	  	 	15	  
	 (a) Information with Respect to Joint Returns
	  	 	15	  
	 (b) Information with Respect Tax Payments
	  	 	15	  
	 (c) Information with Respect to Separate Returns
	  	 	16	  
	 (d) Information with Respect to Pro Forma Stand-Alone Basis Computations and Allocations
	  	 	16	  
	 (e) Information with Respect to Tax Contests
	  	 	16	  
			
	    Section 6.2	 	Reliance on Exchanged Information	  	 	16	  
			
	    Section 6.3	 	Provision of Assistance and Cooperation	  	 	16	  
	 (a) Assistance with Respect to Joint Returns
	  	 	16	  
	 (b) Assistance with Respect to Tax Contests
	  	 	17	  
	 (c) Cooperation
	  	 	17	  
			
	    Section 6.4	 	Retention of Tax Records	  	 	17	  
			
	    Section 6.5	 	Supplemental Rulings and Supplemental Tax Opinions	  	 	17	  
			
	    Section 6.6	 	Withholding and Reporting	  	 	18	  
			
	ARTICLE VII	 	RESTRICTIONS ON CERTAIN ACTIONS	  	 	18	  
			
	    Section 7.1	 	General Restrictions	  	 	18	  
			
	    Section 7.2	 	Certain Nuvectra Actions Beginning on the Spin-off Date	  	 	18	  
			
	ARTICLE VIII	 	GENERAL PROVISIONS	  	 	19	  
			
	    Section 8.1	 	Authority	  	 	20	  
			
	    Section 8.2	 	Termination	  	 	20	  
			
	    Section 8.3	 	Entire Agreement	  	 	20	  
			
	    Section 8.4	 	Binding Effect; No Third-Party Beneficiaries; Assignment	  	 	20	  

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

  
 - iii - 

 TAX MATTERS AGREEMENT 

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

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

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

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

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

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

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

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

“IRS” means the Internal Revenue Service. 

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

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

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

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

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

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

  
 - 2 - 

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

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

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

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

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

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

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

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

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

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

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

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

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

  
 - 3 - 

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

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

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

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

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

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

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

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

  
 - 4 - 

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

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

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

  
 - 5 - 

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

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

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

  
 - 6 - 

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

Section 2.2 Special Rules. 

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

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

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

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

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

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

  
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 ARTICLE III 

PREPARATION AND FILING OF TAX RETURNS 

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

(b) Election to File Joint Returns. GB shall have the sole discretion of whether to file a Joint Return on a consolidated, combined, or
joint basis, if the filing of such consolidated, combined, or joint return is elective under the relevant Tax Law. 
 (c) Nuvectra
Returns. Except as required by applicable Tax Law, with respect to any Separate Return for which Nuvectra is the Preparer, Nuvectra shall not take (and shall cause the other members of the Nuvectra Group not to take) any position that it knows,
or reasonably should know, would adversely affect any member of the GB Group without the prior written consent of GB. Without limiting the foregoing, Nuvectra shall not elect under Section 172(b)(3) of the Code to relinquish the carryback
period with respect to a net operating loss if such net operating loss could, absent such an election, be carried back to the GB Group’s 2016 Joint Return. 

(d) GB Returns. Except as required by applicable Tax Law, with respect to any Separate Return for which GB is the Preparer, GB shall
not take (and shall cause the members of the GB Group not to take) any position that it knows, or reasonably should know, would adversely affect any member of the Nuvectra Group without the prior written consent of Nuvectra. 

(e) Returns Affecting Liability of Other Party. Insofar as a Tax Return prepared by one Party may affect Taxes for which the other
Party is liable pursuant to this Agreement or otherwise to any Tax Authority, or would reflect a position that would reasonably be expected to adversely affect the other Group: 

  
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 (i) Consistent With Past Practice. Unless otherwise agreed to by the Parties, and except
to the extent otherwise required by applicable Tax Law, each Tax Return shall be prepared in a manner consistent with Past Practice. 
 (ii)
Review Prior to Filing. The Preparer of such Tax Return shall make the Tax Return available to the Non-Preparer for its review and comment no later than sixty days before the Tax Return is due, taking into account any extensions that the
Preparer files, and, in connection with such review, the Non-Preparer shall have reasonable access, during normal business hours and upon reasonable notice, to the Preparer’s supporting information and schedules, including financial books and
records. If the Non-Preparer disagrees with any aspect of such Tax Return, it shall, within thirty days after receiving such Tax Return, provide the Preparer with written notification of such disputed item (or items). Provided the Preparer has
complied with its obligations pursuant to this Section 3.3 and the applicable provisions of ARTICLE VI, the Preparer shall have no obligation to consider any comments that are provided more than thirty days after such Tax Return is made
available to the Non-Preparer. The Preparer and Non-Preparer shall act in good faith to resolve any such dispute prior to the date on which the relevant Tax Return to which such disputed item relates is required to be filed. If the Preparer and
Non-Preparer cannot reach a resolution with respect to any such disputed item, the item in question shall be resolved in accordance with Section 8.16. In the event that any such dispute relating to any Tax Return is not resolved prior to the
due date for such Tax Return, the Tax Return shall be timely filed and subsequently amended as necessary to reflect the resolution of the dispute. 

(f) Reimbursement for Costs Incurred by Preparer. The Non-Preparer of a given Tax Return may request that the Preparer amend such Tax
Return for the benefit of the Non-Preparer. If the Preparer agrees, in its sole discretion, to amend such Tax Return, the Preparer shall be entitled to reimbursement from the Non-Preparer for any reasonable third-party costs that are attributable to
the Non-Preparer’s request to the extent such costs exceed $50,000 in the aggregate. 
 (g) Allocation of Tax Items Between Joint
Return and Related Separate Return. Notwithstanding Section 3.3(a), if Tax Items are allocated between a Joint Return and any related Separate Return, then the Preparer of such Separate Return shall (and shall cause the members of its Group
to) file the related Separate Return in a manner that is consistent with the reporting of such Tax Items on the Joint Return except to the extent otherwise required by applicable Tax Law. 

(h) Standard of Performance. GB shall prepare (or cause to be prepared) Joint Returns with the same general degree of care as it uses
in preparing Separate Returns and without Nuvectra’s prior written consent it shall not take any position on any Joint Return that would have the effect of deferring any material item of income or accelerating any material item of deduction
that would have the effect of increasing Nuvectra’s Taxes following the Spin-off or its indemnification obligation under this Agreement. 

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

  
 - 10 - 

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

TAX PAYMENTS AND INDEMNIFICATION PAYMENTS 

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

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

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

Section 4.3 Initial Determinations and Subsequent Adjustments. 

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

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

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

Section 4.4 Payments by or to Other Members of the Groups. When appropriate under the circumstances to reflect the underlying
liability for a Tax or entitlement to a Tax refund, credit or Tax Benefit, a payment which is required to be made by or to a Party may be made by or to another member of the Group to which that Party belongs, but nothing in this Section 4.4
shall relieve any Party of its other obligations under this Agreement. 
 Section 4.5 Late Payments. Payments pursuant to this
Agreement that are not made within the period prescribed in this Agreement or, if no period is prescribed, within thirty days after written demand for payment is made shall bear interest for the period from and including the date immediately
following the last date of such payment period through and including the date of payment at a per annum rate equal to the rate specified in Section 5.5 of the Separation Agreement. Such interest will be payable at the same time as the payment
to which it relates and shall be calculated on the basis of a year of 365 days and the actual number of days for which due. If the indemnifying party fails to make a payment to the indemnified party within the time period set forth in this ARTICLE
IV, the indemnifying party shall pay to the indemnified party, in addition to interest that accrues pursuant to this Section 4.5, any reasonable out-of pocket costs or expenses incurred by the indemnified party to secure such payment or to
satisfy the indemnifying party’s portion of the obligation giving rise to the indemnification payment. 
 Section 4.6 Tax
Consequences of Payments. For all Tax purposes and to the extent permitted by applicable Tax Law, the Parties shall characterize any payment made pursuant to this Agreement in the same manner as if such payment were a capital contribution or a
distribution, as the case may be, immediately prior to the Effective Time, or as an assumed or retained liability, and, accordingly, as not includible in the taxable income of the recipient. The amount of any payment made pursuant to this Agreement
shall be (i) subject to the last sentence of this Section 4.6, increased to take into account any additional Taxes that may be owed by the recipient (or any of the members of its Group) as a result of receiving such payment and
(ii) reduced to take into account any Tax Benefit realized by the recipient of such payment as a result of making any payment giving rise to the obligation of the payor to pay the recipient, but only to the extent that such Tax Benefit reduces
the liability for Taxes (whether payable to a Tax Authority or to the other Party under this Agreement) of the recipient in the Tax Year during which such payment is received. If the payor reduces any payment by the amount of any Tax

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

 TAX CONTESTS 

Section 5.1 Notices. Each Party shall provide prompt notice to the other Party of any pending or threatened Tax Contest of which
it becomes aware relating to (i) Taxes for which it is or may be indemnified by the other Party hereunder, (ii) the qualification of the Spin-off as a Tax-free transaction described under Sections 368(a)(1)(D) and 355 of the Code to GB,
its shareholders, and Nuvectra (except to the extent such shareholders receive cash in lieu of fractional shares or gain is required to be recognized by GB under Section 357 (c) of the Code), or (iii) any change in the Tax treatment
of any other part of the Separation Transactions. Such notice shall contain factual information (to the extent known by the notifying Party or its agents or representatives) describing any threatened Tax Contest or asserted Tax liability, if any, in
reasonable detail and shall be accompanied by copies of any notice and other documents received from any Tax Authority in respect of any such matters. If (i) an indemnified Party has knowledge of an asserted Tax liability with respect to a
matter for which it is to be indemnified hereunder, (ii) such Party fails to give the indemnifying Party prompt notice of such asserted Tax liability, and (iii) the indemnifying Party has the right, pursuant to Section 5.2, to control
the Tax Contest relating to such Tax liability, then (A) if the indemnifying Party is precluded from contesting the asserted Tax liability as a result of the failure to give prompt notice, the indemnifying Party shall have no obligation to
indemnify the indemnified Party for any Taxes arising out of such asserted Tax liability and (B) if the indemnifying Party is not precluded from contesting the asserted Tax liability, but such failure to give prompt notice results in a monetary
detriment to the indemnifying Party, then any amount which the indemnifying Party is otherwise required to pay the indemnified Party pursuant to this Agreement shall be reduced by the amount of such detriment. 

Section 5.2 Control of Tax Contests. 

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

  
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 (i) Non-Preparer as Controlling Party. Except as otherwise provided in
Section 5.2(b)(ii), the Non-Preparer shall be entitled to be the Controlling Party with respect to that portion of any Tax Contest involving a Tax Item or Tax reported on a Joint Return where the Non-Preparer is liable for (and has acknowledged
in writing its obligation to indemnify the Preparer for such Tax Item or Tax under this Agreement) or entitled to take into account such Tax Item or Tax under this Agreement and the portion of the Tax Contest applicable to such Tax Item or Tax
reasonably can be addressed on a separable basis from all other Tax Items reported on such Joint Return or through reasonable, good faith cooperation by the Parties hereto. 

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

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

ARTICLE VI 
 ASSISTANCE AND
COOPERATION 
 Section 6.1 Provision of Information. 

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

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

  
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additional amounts in respect of Taxes are solely and directly attributable to the delay in providing such information. 

(c) Information with Respect to Separate Returns. At the written request of the Preparer, the Non-Preparer shall provide the Preparer
with all Tax Records or other information then in the possession of the Non-Preparer’s Group that the Preparer reasonably requests in order to properly and timely file all Separate Returns for which the Preparer is responsible pursuant to
Section 3.2. Such information shall be provided within the time period prescribed by Section 6.1(a) for the provision of information for Joint Returns. If the Non-Preparer fails to satisfy the obligation provided for in the preceding two
sentences, the indemnification principles of Section 6.1(a) shall apply with respect to any penalties, interest, or additional amounts in respect of Taxes (but excluding any Taxes underlying such amounts) assessed against any member of either
Group by reason of any resulting delay in filing such return, to the extent such penalties, interest, or additional amounts in respect of Taxes are solely and directly attributable to the delay in providing such information. 

(d) Information with Respect to Pro Forma Stand-Alone Basis Computations and Allocations. At the written request of GB, Nuvectra shall
provide GB with all Tax Records or other information then in the possession of the Nuvectra Group that GB reasonably requests in order for GB to prepare the pro forma stand-alone basis computations and allocations provided for in
Section 2.2(c). Nuvectra shall provide such information no later than thirty days from the date of GB’s written request. 
 (e)
Information with Respect to Tax Contests. At the written request of the Controlling Party, the Non-Controlling Party shall provide to the Controlling Party any information then in its possession (including Tax Records) about members of the
Non-Controlling Party’s Group which is reasonably necessary in order to handle, settle or conduct any Tax Contest. The Non-Controlling Party shall provide such information no later than thirty days from the date of the Controlling Party’s
written request. If the Non-Controlling Party fails to satisfy the obligation provided for in the preceding two sentences, the Controlling Party shall have no obligation to indemnify the Non-Controlling Party for any additional Taxes resulting from
such Tax Contest, to the extent such additional Taxes are solely and directly attributable to the Non-Controlling Party’s failure to provide such information. 

Section 6.2 Reliance on Exchanged Information. If a member of the Nuvectra Group supplies Tax Records or other information to a
member of the GB Group, or a member of the GB Group supplies Tax Records or other information to a member of the Nuvectra Group, and an officer of the requesting Group member intends to sign a statement or other document under penalties of perjury
in reliance upon the accuracy of such Tax Records or other information, then a duly authorized officer of the Group member supplying such Tax Records or other information shall certify to the extent that it is able, to such officer’s knowledge
and belief, the accuracy and completeness of the Tax Records or other information so supplied. 
 Section 6.3 Provision of
Assistance and Cooperation. 
 (a) Assistance with Respect to Joint Returns. At the written request of GB, Nuvectra shall take any
action (e.g., filing a ruling request with the relevant Tax Authority or 

  
 - 16 - 

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

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

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

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

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

  
 - 17 - 

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

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

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

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

(ii) liquidate Nuvectra; 
 (iii)
sell, transfer or otherwise dispose of (other than sales, transfers or dispositions of inventory in the ordinary course of business) 35% or more of the gross assets of the Nuvectra Active Trade or Business or 35% or more of the consolidated gross
assets of the Nuvectra Group (such percentages to be measured based on fair market value as of the Spin-off Date), if such sale, transfer or other disposition would result in the violation of the “continuity of business enterprise”
requirement of Treasury Regulations Section 1.368-1(d) in connection with the Spin-off; or 
 (iv) cause or permit to occur any
transaction or series of transactions in connection with which one or more Persons would (directly or indirectly) acquire from any other Person or Persons, an interest in stock of Nuvectra that, when combined with any other

  
 - 18 - 

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

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

(b) Indemnification by Nuvectra. Nuvectra shall indemnify and hold the GB Group harmless from any Tax-Related Costs arising to the
extent such Tax-Related Costs are directly attributable to Nuvectra’s breach of any of its covenants or representations under this ARTICLE VII and provided that such Tax Related Costs are not attributable to (i) the acquisition of all or a
portion of GB’s stock and/or its Subsidiaries’ assets by any means whatsoever by any Person; (ii) the negotiations, understandings, agreements or arrangements by GB with respect to transactions or events (including without limitation,
stock issuances, pursuant to the exercise of stock options or otherwise, option grants, capital contributions or acquisitions, or a series of such transactions or events) that causes the distribution of Nuvectra stock pursuant to the Spin-off to be
treated as part of a plan pursuant to which one or more other Persons acquire directly or indirectly stock of GB representing fifty percent (50%) or more (by vote or value) of the outstanding stock of GB; or (iii) any breach by GB of its
covenants or representations set forth in this ARTICLE VII. 
 ARTICLE VIII 

GENERAL PROVISIONS 

  
 - 19 - 

 Section 8.1 Authority. Each of the Parties represents to the other that (a) it
has the corporate or other requisite power and authority to execute, deliver and perform this Agreement, (b) the execution, delivery and performance of this Agreement by it have been duly authorized by all necessary corporate or other actions,
(c) it has duly and validly executed and delivered this Agreement to be executed and delivered on or prior to the Spin-off Date, and (d) this Agreement is a legal, valid and binding obligation, enforceable against it in accordance with its
terms subject to applicable bankruptcy, insolvency, reorganization, moratorium, or other similar laws affecting creditors’ rights generally and general equity principles. 

Section 8.2 Termination. This Agreement may be terminated at any time prior to the Effective Time by and in the sole discretion of
GB without the approval of Nuvectra. In the event of termination pursuant to this Section 8.2, neither Party shall have any liability of any kind to the other Party by reason of this Agreement or such termination. 

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

 Section 8.5 Amendment. No change or amendment may be made to this Agreement except by an instrument in writing signed on
behalf of both of the Parties. 
 Section 8.6 Failure or Indulgence Not Waiver; Remedies Cumulative. No failure or delay on the
part of either Party in the exercise of any right hereunder shall impair such right or be construed to be a waiver of, or acquiescence in, any breach of any representation, warranty, covenant, or agreement contained herein, nor shall any single or
partial exercise of any such right preclude other or further exercise thereof or of any other right. All rights and remedies existing under this Agreement are cumulative to, and not exclusive of, any rights or remedies otherwise available. 

Section 8.7 Notices. All notices, claims, certificates, requests, demands, and other communications hereunder shall be in writing
and shall be deemed to be duly given (i) when personally delivered, (ii) if mailed by registered or certified mail, postage prepaid, return receipt requested, on the date the return receipt is executed or the letter is refused by the
addressee or its agent, (iii) if sent by overnight courier which delivers only upon the signed receipt of the addressee, on the date the receipt acknowledgment is executed or refused by the addressee or its agent, or (iv) if sent by
facsimile or electronic mail, on the date confirmation of transmission is received (provided that a copy of any notice delivered pursuant to this clause (iv) shall also be sent pursuant to clause (i), (ii), or (iii)), addressed to the attention
of the addressee’s General 

  
 - 20 - 

 
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 8.8 Counterpart; Facsimile Signatures. This Agreement may be executed in multiple counterparts, each of which when
executed shall be deemed to be an original but all of which together shall constitute one and the same agreement. Delivery of an executed signature page to this Agreement, and any of the other agreements, documents and instruments contemplated
hereby, by facsimile transmission shall be as effective as delivery of a manually signed counterpart hereof or thereof. 
 Section 8.9
Severability. If any term or other provision of this Agreement is determined by a non-appealable decision by a court, administrative agency or arbitrator to be invalid, illegal or incapable of being enforced by any rule of law, or public
policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to
either Party. Upon such determination that any term or other provision is invalid, illegal, or incapable of being enforced, the court, administrative agency, or arbitrator shall interpret this Agreement so as to effect the original intent of the
Parties as closely as possible in an acceptable manner to the end that transactions contemplated hereby are fulfilled to the fullest extent possible. If any sentence in this Agreement is so broad as to be unenforceable, the provision shall be
interpreted to be only as broad as is enforceable. 
 Section 8.10 Governing Law. This Agreement shall be governed by, and
construed and enforced in accordance with, the substantive laws of the State of Delaware, without regard to conflicts of laws provisions thereof that would result in the application of the laws of any other jurisdiction. 

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

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

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

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

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

  
 - 22 - 

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

[signature page follows] 

  
 - 23 - 

 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:

  
 - 24 - 

 APPENDIX A 

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

 

	 	(i)	an average Tax rate of 35%, 

  

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

  

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

  

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

 

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

 Example 1. General Tax Allocation on Joint Return. 

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

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

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

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

 

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

  

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

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

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

  
 - 26 - 

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

Example 3. Separate Returns and State Taxes. 

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

  
 - 27 - 

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

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

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

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

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

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

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

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

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

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

Example 7. Average Tax Rate. 

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

  
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 Example 8. Breach of Covenants. 

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

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

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

Example 9. Redetermination of Tax Detriments Allocated to GB. 

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

As a result of the closing agreement, Section 4.3(b) requires that the amounts paid under this Agreement be redetermined. Under
applicable Tax Law and pursuant to Section 2.1(a)(ii) and Section 2.1(a)(iv), GB is entitled to use the $100x NOL as a Tax Benefit to completely offset the additional taxable income recognized as a result of the Tax Contest. GB is

  
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not required to reimburse Nuvectra for the use of the $50x portion of such NOL that arose from the operation or ownership of the Nuvectra Business. 

Example 10. Redetermination of Tax Detriments Allocated to Nuvectra. 

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

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

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

  
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