Document:

EX-10.2

 Exhibit 10.2 

EXECUTION VERSION 
 TAX
MATTERS AGREEMENT 
 DATED AS OF JANUARY 27, 2017 

BY AND BETWEEN 
 VARIAN
MEDICAL SYSTEMS, INC. 
 AND 

VAREX IMAGING CORPORATION 

 TABLE OF CONTENTS 

 

									
	 	 	 	  	 	 	Page	 
		
	Section 1.      Definition of Terms	 	 	1	  
		
	Section 2.      Allocation of Tax Liabilities	 	 	11	  
				
		 	Section 2.01	  	General Rule	 	 	11	  
				
		 	Section 2.02	  	Allocation of U.S. Federal Income Tax and Federal Other Tax	 	 	11	  
				
		 	Section 2.03	  	Allocation of State Income and State Other Taxes	 	 	12	  
				
		 	Section 2.04	  	Allocation of Foreign Taxes	 	 	12	  
				
		 	Section 2.05	  	Certain Transaction and Other Taxes	 	 	12	  
				
		 	Section 2.06	  	Attribution of Taxes	 	 	13	  
		
	Section 3.      Proration of Taxes for Straddle Periods	 	 	14	  
		
	Section 4.      Preparation and Filing of Tax Returns	 	 	14	  
				
		 	Section 4.01	  	General	 	 	14	  
				
		 	Section 4.02	  	Parent’s Responsibility	 	 	14	  
				
		 	Section 4.03	  	SpinCo’s Responsibility	 	 	15	  
				
		 	Section 4.04	  	Tax Accounting Practices	 	 	15	  
				
		 	Section 4.05	  	Consolidated or Combined Tax Returns	 	 	15	  
				
		 	Section 4.06	  	Right to Review Tax Returns	 	 	16	  
				
		 	Section 4.07	  	SpinCo Carrybacks and Claims for Refund	 	 	16	  
				
		 	Section 4.08	  	Apportionment of Taxes, Earnings and Profits and Tax Attributes	 	 	17	  
		
	Section 5.      Tax Payments	 	 	17	  
				
		 	Section 5.01	  	Payment of Taxes with Respect to Parent Federal Consolidated Income Tax Returns and Parent State Combined Income Tax Returns	 	 	17	  
				
		 	Section 5.02	  	Payment of Taxes with Respect to Joint Returns (Other Than a Parent Federal Consolidated Income Tax Return or Parent State Combined Income Tax Return) and Certain Returns of Other Taxes	 	 	18	  

  
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		 	Section 5.03	  	Payment of Separate Company Taxes	 	 	19	  
				
		 	Section 5.04	  	Indemnification Payments	 	 	19	  
		
	Section 6.      Tax Benefits	 	 	20	  
				
		 	Section 6.01	  	Tax Benefits	 	 	20	  
				
		 	Section 6.02	  	Parent and SpinCo Income Tax Deductions in Respect of Certain Equity Awards and Incentive Compensation	 	 	21	  
		
	Section 7.      Tax-Free Status	 	 	21	  
				
		 	Section 7.01	  	Representations	 	 	21	  
				
		 	Section 7.02	  	Restrictions on SpinCo	 	 	22	  
				
		 	Section 7.03	  	Restrictions on Parent	 	 	24	  
				
		 	Section 7.04	  	Procedures Regarding Opinions and Rulings	 	 	24	  
				
		 	Section 7.05	  	Liability for Tax-Related Losses	 	 	25	  
				
		 	Section 7.06	  	Section 336(e) Election	 	 	27	  
		
	Section 8.      Assistance and Cooperation	 	 	28	  
				
		 	Section 8.01	  	Assistance and Cooperation	 	 	28	  
				
		 	Section 8.02	  	Income Tax Return Information	 	 	28	  
				
		 	Section 8.03	  	Reliance by Parent	 	 	29	  
				
		 	Section 8.04	  	Reliance by SpinCo	 	 	29	  
		
	Section 9.      Tax Records	 	 	29	  
				
		 	Section 9.01	  	Retention of Tax Records	 	 	29	  
				
		 	Section 9.02	  	Access to Tax Records	 	 	30	  
		
	Section 10.      Tax Contests	 	 	30	  
				
		 	Section 10.01	  	Notice	 	 	30	  
				
		 	Section 10.02	  	Control of Tax Contests	 	 	30	  

  
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	Section 11.      Effective Date; Termination of Prior Intercompany Tax Allocation Agreements	 	 	32	  
		
	Section 12.      Survival of Obligations	 	 	32	  
		
	Section 13.      Treatment of Payments; Tax Gross-Up	 	 	32	  
				
		 	Section 13.01	  	Treatment of Tax Indemnity and Tax Benefit Payments	 	 	32	  
				
		 	Section 13.02	  	Tax Gross-Up	 	 	32	  
				
		 	Section 13.03	  	Interest Under This Agreement	 	 	33	  
		
	Section 14.      Disagreements	 	 	33	  
		
	Section 15.      Late Payments	 	 	33	  
		
	Section 16.      Expenses	 	 	34	  
		
	Section 17.      General Provisions	 	 	34	  
				
		 	Section 17.01	  	Addresses and Notices	 	 	34	  
				
		 	Section 17.02	  	Counterparts; Entire Agreement; Corporate Power	 	 	34	  
				
		 	Section 17.03	  	Waiver	 	 	35	  
				
		 	Section 17.04	  	Severability	 	 	35	  
				
		 	Section 17.05	  	Assignability	 	 	36	  
				
		 	Section 17.06	  	Further Action	 	 	36	  
				
		 	Section 17.07	  	Integration	 	 	36	  
				
		 	Section 17.08	  	Headings	 	 	36	  
				
		 	Section 17.09	  	Governing Law	 	 	36	  
				
		 	Section 17.10	  	Amendment	 	 	36	  
				
		 	Section 17.11	  	SpinCo Subsidiaries	 	 	36	  
				
		 	Section 17.12	  	Successors	 	 	36	  
				
		 	Section 17.13	  	Specific Performance	 	 	37	  

  
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 TAX MATTERS AGREEMENT 

This TAX MATTERS AGREEMENT (this “Agreement”) is entered into as of January 27, 2017, by and between Varian Medical Systems, Inc., a
Delaware corporation (“Parent”), and Varex Imaging Corporation, a Delaware corporation (“SpinCo”) (collectively, the “Companies” and each a “Company”). 

RECITALS 
 WHEREAS, Parent and SpinCo have
entered into a Separation and Distribution Agreement, dated as of January 27, 2017 (the “Separation and Distribution Agreement”), providing for the separation of the Parent Group from the SpinCo Group; 

WHEREAS, pursuant to the terms of the Separation and Distribution Agreement, Parent will, among other things, (i) (a) contribute the Varex Assets to
SpinCo, (b) cause SpinCo to assume the Varex Liabilities, in actual or constructive exchange for (c) the issuance by SpinCo to Parent of SpinCo Common Stock and (d) the transfer by SpinCo to Parent of cash in an amount equal to
$200 million (plus any adjustment to such amount pursuant to Section 2.9(h) of the Separation and Distribution Agreement) (the “Cash Payment”), (ii) transfer the Cash Payment to third-party creditors of Parent (the
“Creditor Repayment”) in connection with the reorganization; and (iii) effect the Distribution; 
 WHEREAS, for U.S. Federal Income
Tax purposes, it is intended that each of the Internal Distributions and the Distribution shall qualify as transactions that are generally tax free pursuant to Sections 355(a) and/or 368(a)(1)(D) of the Code; 

WHEREAS, as of the date hereof, Parent is the common parent of an affiliated group (as defined in Section 1504 of the Code) of corporations, including
SpinCo, which has elected to file consolidated Federal Income Tax Returns; 
 WHEREAS, as a result of the Distribution, SpinCo and its subsidiaries will
cease to be members of the affiliated group of which Parent is the common parent (the “Deconsolidation”); 
 WHEREAS, the parties desire to
provide for and agree upon the allocation between the parties of liabilities for Taxes arising prior to, as a result of, and subsequent to the Distribution, and to provide for and agree upon other matters relating to Taxes; 

NOW THEREFORE, in consideration of the mutual agreements contained herein, the parties hereby agree as follows: 

Section 1. Definition of Terms. For purposes of this Agreement (including the recitals hereof), the following
terms have the following meanings, and capitalized terms used but not otherwise defined herein shall have the meaning ascribed to them in the Separation and Distribution Agreement: 

“Accounting Cutoff Date” means, with respect to SpinCo, any date as of the end of which there is a closing of the financial accounting
records for such entity. 

 “Adjustment Request” means any formal or informal claim or request filed with any Tax Authority,
or with any administrative agency or court, for the adjustment, refund, or credit of Taxes, including (a) any amended Tax Return claiming adjustment to the Taxes as reported on the Tax Return or, if applicable, as previously adjusted,
(b) any claim for equitable recoupment or other offset, and (c) any claim for refund or credit of Taxes previously paid. 

“Affiliate” means any entity that is directly or indirectly “controlled” by either the person in question or an Affiliate of such
person. “Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a person, whether through ownership of voting securities, by contract or otherwise. The
term Affiliate shall refer to Affiliates of a person as determined immediately after the Distribution. 
 “Agreement” shall mean this Tax
Matters Agreement. 
 “business day” has the meaning set forth in the Separation and Distribution Agreement. 

“Cash Payment” shall have the meaning provided in the recitals of this Agreement. 

“CFO Certificate” shall have the meaning set forth in Section 7.02(e) of this Agreement. 

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

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

“Compensatory Equity Interests” shall have the meaning set forth in Section 6.02(a) of this Agreement. 

“Contribution” means the contribution of assets, including all of the shares of capital stock of Internal SpinCo, by Parent to SpinCo
pursuant to the Separation and Distribution Agreement in actual or constructive exchange for (i) the issuance by SpinCo to Parent of shares of SpinCo Common Stock and (ii) the Cash Payment. 

“Creditor Repayment” shall have the meaning provided in the recitals of this Agreement. 

“Deconsolidation” shall have the meaning provided in the recitals of this Agreement. 

“Deconsolidation Date” means the last date on which SpinCo qualifies as a member of the affiliated group (as defined in Section 1504 of
the Code) of which Parent is the common parent. 
 “DGCL” means the Delaware General Corporation Law. 

“Distribution” shall mean the distribution by Parent of all the common stock of SpinCo pro rata to holders of Parent common stock.

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

“Distribution-Related Tax Contest” shall mean any Tax Contest in which the IRS, another Tax Authority or any other party asserts a position
that could reasonably be expected to adversely affect the Tax-Free Status of the Contribution and Distribution, the Internal Contribution and/or any of the Internal Distributions. 

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

“Employee Matters Agreement” means the Employee Matters Agreement, dated as of January 27, 2017, by and between Parent and SpinCo. 

“Federal Income Tax” means any Tax imposed by Subtitle A of the Code, and any interest, penalties, additions to tax, or additional amounts in
respect of the foregoing. 
 “Federal Income Tax Return” means any Tax Return of (i) any member of the SpinCo Group (including any
consolidated, combined or unitary return), or (ii) any member of the Parent Group (including any consolidated, combined or unitary return), in each case, with respect to Federal Income Taxes, including any Parent Federal Consolidated Income Tax
Return and any SpinCo Federal Consolidated Income Tax Return. 
 “Federal Other Tax” means any Tax imposed by the federal government of the
United States of America other than any Federal Income Taxes, and any interest, penalties, additions to tax, or additional amounts in respect of the foregoing. 

“Fifty-Percent or Greater Interest” shall have the meaning ascribed to such term for purposes of Sections 355(d) and (e) of the Code.

 “Filing Date” shall have the meaning set forth in Section 7.05(d) of this Agreement. 

“Final Determination” means the final resolution of liability for any Tax, which resolution may be for a specific issue or adjustment or for
a Tax Period, (a) by IRS Form 870 or 870-AD (or any successor forms thereto), on the date of acceptance by or on behalf of the taxpayer, or by a comparable form under the laws of a State, local, or
foreign taxing jurisdiction, except that a Form 870 or 870-AD or comparable form shall not constitute a Final Determination to the extent that it reserves (whether by its terms or by operation of law) the
right of the taxpayer to file a claim for refund or the right of the Tax Authority to assert a further deficiency in respect of such issue or adjustment or for such Tax Period (as the case may be); (b) by a decision, judgment, decree, or other order
by a court of competent jurisdiction, which has become final and unappealable; (c) by a closing agreement or accepted offer in compromise under Section 7121 or 7122 of the Code, or a comparable agreement under the laws of a State, local,
or foreign taxing jurisdiction; (d) by any allowance of a refund or credit in respect of an overpayment of Income Tax or Other Tax, but only after the expiration of all periods during which such refund may be recovered (including by way of
offset) by the jurisdiction imposing such Income Tax or Other Tax; or (e) by any other final disposition, including by reason of the expiration of the applicable statute of limitations or by mutual agreement of the parties. 

“First Internal Distribution” means the distribution by VMSN of all the common stock of Internal SpinCo to VMSN Holdings in a transaction
intended to qualify as a distribution that is generally tax free pursuant to Sections 355(a) and 368(a)(1)(D) of the Code. 

  
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 “Foreign Income Tax” means any Tax imposed by any foreign country or any possession of the
United States, or by any political subdivision of any foreign country or United States possession, which is an income tax as defined in Treasury Regulations Section 1.901-2, and any interest, penalties,
additions to tax, or additional amounts in respect of the foregoing. 
 “Foreign Other Tax” means any Tax imposed by any foreign country or
any possession of the United States, or by any political subdivision of any foreign country or United States possession, other than any Foreign Income Taxes, and any interest, penalties, additions to tax, or additional amounts in respect of the
foregoing. 
 “Foreign Tax” means any Foreign Income Taxes or Foreign Other Taxes. 

“Former Employee” has the meaning set forth in the Employee Matters Agreement. 

“Group” means the Parent Group or the SpinCo Group, or both, as the context requires. 

“High-Level Dispute” means any dispute or disagreement (a) relating to liability under Section 7.05 of this Agreement or
(b) in which the amount of liability in dispute exceeds $3 million. 
 “Income Tax” means any Federal Income Tax, State Income
Tax or Foreign Income Tax. 
 “Indemnitee” shall have the meaning set forth in Section 13.03 of this Agreement. 

“Indemnitor” shall have the meaning set forth in Section 13.03 of this Agreement. 

“Internal Contribution” means the contribution of specified assets by VMSN to Internal SpinCo pursuant to the Separation and Distribution
Agreement. 
 “Internal Distributions” shall mean the First Internal Distribution, the Second Internal Distribution, and the Third Internal
Distribution. 
 “Internal SpinCo” means Varex Imaging International Holdings B.V., a besloten vennootschap organized under the laws
of the Netherlands, and a direct wholly owned subsidiary of VMSN. 
 “Internal SpinCo Active Trade or Business” means the active conduct
(as defined in Section 355(b)(2) of the Code and the regulations thereunder) by Internal SpinCo and its “separate affiliated group” (as defined in Section 355(b)(3)(B) of the Code) of the trade or business relied upon to satisfy Section
355(b) of the Code with respect to each of the Internal Distributions as conducted immediately prior to the First Internal Distribution. 

“Internal SpinCo Capital Stock” means all classes or series of capital stock of Internal SpinCo, including (i) the common stock of
Internal SpinCo, (ii) all options, warrants and other rights to acquire such capital stock and (iii) all instruments properly treated as stock in Internal SpinCo for U.S. Federal Income Tax purposes. 

“IRS” means the U.S. Internal Revenue Service. 

“Joint Adjustment” means any proposed adjustment by a Tax Authority or claim for refund asserted in a Tax Contest which is neither a SpinCo
Adjustment nor a Parent Adjustment. 

  
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 “Joint Return” shall mean any Return of a member of the Parent Group or the SpinCo Group that is
not a Separate Return. 
 “Notified Action” shall have the meaning set forth in Section 7.04(a) of this Agreement. 

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

“Parent” shall have the meaning provided in the first sentence of this Agreement. 

“Parent Adjustment” means any proposed adjustment by a Tax Authority or claim for refund asserted in a Tax Contest to the extent Parent would
be exclusively liable for any resulting Tax under this Agreement or exclusively entitled to receive any resulting Tax Benefit under this Agreement. 

“Parent Affiliated Group” shall have the meaning provided in the definition of “Parent Federal Consolidated Income Tax Return.”

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

“Parent Federal Consolidated Income Tax Return” means any U.S. Federal Income Tax Return for the affiliated group (as defined in
Section 1504 of the Code and the regulations thereunder) of which Parent is the common parent (the “Parent Affiliated Group”). 

“Parent Foreign Combined Income Tax Return” means a consolidated, combined or unitary or other similar Foreign Income Tax Return or any
Foreign Income Tax Return with respect to any profit and/or loss sharing group, group payment or similar group or fiscal unity that actually includes, by election or otherwise, one or more members of the Parent Group together with one or more
members of the SpinCo Group. 
 “Parent Group” means Parent and its Affiliates, excluding any entity that is a member of the SpinCo Group.

 “Parent Separate Return” means any Separate Return of Parent or any member of the Parent Group. 

“Parent State Combined Income Tax Return” means a consolidated, combined or unitary State Income Tax Return that actually includes, by
election or otherwise, one or more members of the Parent Group and one or more members of the SpinCo Group. 
 “Past Practices” shall have
the meaning set forth in Section 4.04(a) of this Agreement. 
 “Payment Date” means (i) with respect to any Parent Federal
Consolidated Income Tax Return, the due date for any required installment of estimated taxes determined under Section 6655 of the Code, the due date (determined without regard to extensions) for filing the return determined under
Section 6072 of the Code, 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. 

“Payor” shall have the meaning set forth in Section 5.04(a) of this Agreement. 

  
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 “Person” means any individual, partnership, corporation, limited liability company, association,
joint stock company, trust, joint venture, unincorporated organization or a governmental entity or any department, agency or political subdivision thereof, without regard to whether any entity is treated as disregarded for U.S. Federal Income Tax
purposes. 
 “Post-Deconsolidation Period” means any Tax Period beginning after the Deconsolidation Date, and, in the case of any Straddle
Period, the portion of such Straddle Period beginning the day after the Deconsolidation Date. 

“Pre-Deconsolidation Period” means any Tax Period ending on or before the Deconsolidation Date, and,
in the case of any Straddle Period, the portion of such Straddle Period ending on the Deconsolidation Date. 
 “Prime Rate” has the meaning
set forth in the Separation and Distribution Agreement. 
 “Privilege” means any privilege that may be asserted under applicable law,
including, any privilege arising under or relating to the attorney-client relationship (including the attorney-client and work product privileges), the accountant-client privilege and any privilege relating to internal evaluation processes. 

“Proposed Acquisition Transaction” means a transaction or series of transactions (or any agreement, understanding or arrangement, within the
meaning of Section 355(e) of the Code and Treasury Regulations Section 1.355-7, or any other regulations promulgated thereunder, to enter into a transaction or series of transactions), whether such
transaction is supported by SpinCo management or shareholders, is a hostile acquisition, or otherwise, as a result of which SpinCo would merge or consolidate with any other Person or as a result of which any Person or Persons would (directly or
indirectly) acquire, or have the right to acquire, from SpinCo and/or one or more holders of outstanding shares of SpinCo Capital Stock, a number of shares of SpinCo Capital Stock that would, when combined with any other changes in ownership of
SpinCo Capital Stock pertinent for purposes of Section 355(e) of the Code, comprise 40% or more of (A) the value of all outstanding shares of stock of SpinCo as of the date of such transaction, or in the case of a series of transactions,
the date of the last transaction of such series, or (B) the total combined voting power of all outstanding shares of voting stock of SpinCo as of the date of such transaction, or in the case of a series of transactions, the date of the last
transaction of such series. Notwithstanding the foregoing, a Proposed Acquisition Transaction shall not include (A) the adoption by SpinCo of a shareholder rights plan or (B) issuances by SpinCo that satisfy Safe Harbor VIII (relating to
acquisitions in connection with a person’s performance of services) or Safe Harbor IX (relating to acquisitions by a retirement plan of an employer) of Treasury Regulations Section 1.355-7(d). For
purposes of determining whether a transaction constitutes an indirect acquisition, any recapitalization resulting in a shift of voting power or any redemption of shares of stock shall be treated as an indirect acquisition of shares of stock by the non-exchanging shareholders. This definition and the application thereof is intended to monitor compliance with Section 355(e) of the Code and shall be interpreted accordingly. Any clarification of, or change
in, the statute or regulations promulgated under Section 355(e) of the Code shall be incorporated into this definition and its interpretation. 

  
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 “Representation Letters” means the representation letters and any other materials delivered by,
or on behalf of, Parent, SpinCo or others to a Tax Advisor in connection with the issuance by such Tax Advisor of a Tax Opinion. 
 “Required
Party” shall have the meaning set forth in Section 5.04(a) of this Agreement. 
 “Responsible Company” means, with respect to any
Tax Return, the Company having responsibility for preparing and filing such Tax Return under this Agreement. 
 “Restriction Period” shall
mean the period beginning on the date hereof and ending on the day after the two-year anniversary of the Distribution Date. 

“Retention Date” shall have the meaning set forth in Section 9.01 of this Agreement. 

“Second Internal Distribution” means the distribution by VMSN Holdings of all the common stock of Internal SpinCo to VMSI Holdings in
a transaction intended to qualify as a distribution that is generally tax free pursuant to Section 355(a) of the Code. 
 “Section 336(e)
Election” has the meaning set forth in Section 7.06. 
 “Section 7.02(e) Acquisition Transaction” means any transaction or
series of transactions that is not a Proposed Acquisition Transaction but would be a Proposed Acquisition Transaction if the percentage reflected in the definition of Proposed Acquisition Transaction were 25% instead of 40%. 

“Separate Return” means (a) in the case of any Tax Return of any member of the SpinCo Group (including any consolidated, combined or
unitary return), any such Tax Return that does not include any member of the Parent Group and (b) in the case of any Tax Return of any member of the Parent Group (including any consolidated, combined or unitary return), any such Tax Return that
does not include any member of the SpinCo Group. 
 “Separation and Distribution Agreement” has the meaning set forth in the recitals of
this Agreement. 
 “SpinCo” shall have the meaning provided in the first sentence of this Agreement, and references herein to SpinCo shall
include any entity treated as a successor to SpinCo. 
 “SpinCo Active Trade or Business” means the active conduct (as defined in Section
355(b)(2) of the Code and the regulations thereunder) by SpinCo and its “separate affiliated group” (as defined in Section 355(b)(3)(B) of the Code) of the trade or business relied upon to satisfy Section 355(b) of the Code with respect to
the Distribution as conducted immediately prior to the Distribution. 
 “SpinCo Adjustment” means any proposed adjustment by a Tax
Authority or claim for refund asserted in a Tax Contest to the extent SpinCo would be exclusively liable for any resulting Tax under this Agreement or exclusively entitled to receive any resulting Tax Benefit under this Agreement. 

  
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 “SpinCo Capital Stock” means all classes or series of capital stock of SpinCo, including
(i) the SpinCo Common Stock, (ii) all options, warrants and other rights to acquire such capital stock and (iii) all instruments properly treated as stock in SpinCo for U.S. Federal Income Tax purposes. 

“SpinCo Carryback” means any net operating loss, net capital loss, excess tax credit, or other similar Tax item of any member of the SpinCo
Group which may or must be carried from one Tax Period to another prior Tax Period under the Code or other applicable Tax Law. 
 “SpinCo Common
Stock” has the meaning ascribed to the term “Varex Shares” in the Separation and Distribution Agreement. 
 “SpinCo Federal
Consolidated Income Tax Return” shall mean any U.S. Federal Income Tax Return for the affiliated group (as that term is defined in Section 1504 of the Code) of which SpinCo is the common parent. 

“SpinCo Group” means SpinCo and its Affiliates, as determined immediately after the Distribution. 

“SpinCo Separate Return” means any Separate Return of SpinCo or any member of the SpinCo Group. 

“State Income Tax” means any Tax imposed by any State of the United States (or by any political subdivision of any such State) or the
District of Columbia, or any city or municipality located therein, which is imposed on or measured by net income, including state and local franchise or similar Taxes measured by net income, and any interest, penalties, additions to tax, or
additional amounts in respect of the foregoing. 
 “State Income Tax Return” means any Tax Return with respect to State Income Taxes. 

“State Other Tax” means any Tax imposed by any State of the United States (or by any political subdivision of any such State) or the District
of Columbia, or any city or municipality located therein, other than any State Income Taxes, and any interest, penalties, additions to tax, or additional amounts in respect of the foregoing. 

“State Tax” means any State Income Taxes or State Other Taxes. 

“Straddle Period” means any Tax Period that begins on or before and ends after the Deconsolidation Date. 

“Tax” or “Taxes” means any income, gross income, gross receipts, profits, capital stock, franchise, withholding, payroll,
social security, workers compensation, unemployment, disability, property, ad valorem, stamp, excise, severance, occupation, service, sales, use, license, lease, transfer, import, export, value added, alternative minimum, estimated or other
tax (including any fee, assessment, or other charge in the nature of or in lieu of any tax) imposed by any governmental entity or political subdivision thereof, and any interest, penalties, additions to tax, or additional amounts in respect of the
foregoing. 
 “Tax Advisor” means a U.S. tax counsel or accountant of recognized national standing. 

  
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 “Tax Advisor Dispute” shall have the meaning set forth in Section 14 of this Agreement.

 “Tax Attribute” or “Attribute” shall mean a net operating loss, net capital loss, unused investment credit, unused
foreign tax credit, excess charitable contribution, general business credit or any other Tax Item that could reduce a Tax. 
 “Tax
Authority” means, with respect to any Tax, the governmental entity or political subdivision thereof that imposes such Tax, and the agency (if any) charged with the collection of such Tax for such entity or subdivision. 

“Tax Benefit” means any loss, deduction, refund, credit, or other item reducing Taxes otherwise payable. 

“Tax Contest” means an audit, review, examination, or any other administrative or judicial proceeding with the purpose or effect of
redetermining Taxes (including any administrative or judicial review of any claim for refund). 
 “Tax-Free
Status” means the qualification of each of (i) the Contribution and Distribution, taken together, (ii) the Internal Contribution and First Internal Distribution, taken together, (iii) the Second Internal Distribution, and
(iv) the Third Internal Distribution (a) as a transaction described in Section 368(a)(1)(D) and/or Section 355(a) of the Code, (b) as a transaction in which the stock distributed thereby is “qualified property” for purposes
of Sections 355(c)(2) and 361(c)(2) of the Code, as applicable, and (c) as a transaction in which Parent, SpinCo and the members of their respective Groups recognize no income or gain for U.S. Federal Income Tax purposes pursuant to Sections
355, 361 and 1032 of the Code, other than (x) gain recognized pursuant to Section 361(b) with respect to any portion of the Cash Payment that is not transferred to shareholders or creditors of Parent in connection with the Contribution and
Distribution, (y) income or gain recognized pursuant to Sections 367(b) and/or 1248 and the Treasury Regulations promulgated under such provisions with respect to the Internal Contribution and/or Internal Distributions, or (z) intercompany
items or excess loss accounts taken into account pursuant to the Treasury Regulations promulgated pursuant to Section 1502 of the Code. 
 “Tax
Item” means, with respect to any Income Tax, any item of income, gain, loss, deduction, or credit. 
 “Tax Law” means the law of
any governmental entity or political subdivision thereof relating to any Tax. 
 “Tax Opinion” means each opinion of a Tax Advisor
delivered to Parent in connection with, and regarding the Federal Income Tax treatment of, (i) the Contribution and the Distribution, (ii) the Internal Contribution and First Internal Distribution, (iii) the Second Internal
Distribution, or (iv) the Third Internal Distribution. 
 “Tax Period” means, with respect to any Tax, the period for which the Tax is
reported as provided under the Code or other applicable Tax Law. 
 “Tax Records” means any Tax Returns, Tax Return workpapers,
documentation relating to any Tax Contests, and any other books of account or records (whether or not in written, electronic or 

  
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other tangible or intangible forms and whether or not stored on electronic or any other medium) required to be maintained under the Code or other applicable Tax Laws or under any record retention
agreement with any Tax Authority. 
 “Tax-Related Losses” means (i) all federal, state and
local Taxes (including interest and penalties thereon) imposed pursuant to any settlement, Final Determination, judgment or otherwise; (ii) all reasonable accounting, legal and other professional fees, and court costs incurred in connection
with such Taxes; and (iii) all reasonable costs and expenses and any damages associated with stockholder litigation or controversies and any amount required to be paid by Parent (or any Parent Affiliate) or SpinCo (or any SpinCo Affiliate) in
respect of the liability of shareholders, whether paid to shareholders or to the IRS or any other Tax Authority, in each case, resulting from the failure of the Contribution and the Distribution, the Internal Contribution and the First Internal
Distribution, the Second Internal Distribution, or the Third Internal Distribution to have Tax-Free Status; provided, that amounts shall be treated as having been required to be paid for purposes of
clause (iii) of this definition to the extent they are paid in a good faith compromise of an asserted claim. 
 “Tax Return” or
“Return” means any report of Taxes due, any claim for refund of Taxes paid, any information return with respect to Taxes, or any other similar report, statement, declaration, or document filed or required to be filed under the Code
or other Tax Law, including any attachments, exhibits, or other materials submitted with any of the foregoing, and including any amendments or supplements to any of the foregoing. 

“Third Internal Distribution” means the distribution by VMSI Holdings of all the common stock of Internal SpinCo to Parent in a
transaction intended to qualify as a distribution that is generally tax free pursuant to Section 355(a) of the Code. 
 “Transactions”
means the Contribution, the Distribution, the Creditor Payment, and the other transactions contemplated by the Separation and Distribution Agreement (including the Internal Contribution, and the Internal Distributions). 

“Treasury Regulations” means the regulations promulgated from time to time under the Code as in effect for the relevant Tax Period. 

“Unqualified Tax Opinion” means an unqualified opinion of a Tax Advisor on which Parent may rely to the effect that (i) a transaction
will not affect the Tax-Free Status of (a) the Contribution and the Distribution, (b) the Internal Contribution and the First Internal Distribution, (c) the Second Internal Distribution, or
(d) the Third Internal Distribution, and (ii) will not adversely affect any of the conclusions set forth in any Tax Opinion; provided, that any tax opinion obtained in connection with a proposed acquisition of SpinCo Capital
Stock entered into during the Restriction Period shall not qualify as an Unqualified Tax Opinion unless such tax opinion concludes that such proposed acquisition will not be treated as “part of a plan (or series of related transactions),”
within the meaning of Section 355(e) of the Code and the Treasury Regulations promulgated thereunder, that includes the Distribution or any Internal Distribution. Any such opinion must assume that the Contribution and Distribution, the Internal
Contribution and each of the Internal Distributions would have qualified for Tax-Free Status if the transaction in question did not occur. 

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

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

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

“VMSI Holdings” means Varian Medical Systems International Holdings, Inc., a Delaware corporation, and a directly wholly owned subsidiary of
Parent. 
 “VMSN” means Varian Medical Systems Nederland B.V., a besloten vennootschap organized under the laws of the Netherlands,
and a directly wholly owned subsidiary of VMSN Holdings. 
 “VMSN Holdings” means Varian Medical Systems Netherlands Holdings, Inc., a
Delaware corporation, and a directly wholly owned subsidiary of VMSI Holdings. 
 Section 2. Allocation of Tax Liabilities. 

Section 2.01 General Rule. 

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

Section 2.02 Allocation of U.S. Federal Income Tax and Federal Other Tax. Except as otherwise provided in
Section 2.05, Federal Income Tax and Federal Other Tax shall be allocated as follows: 
 (a) Allocation of Tax Relating to Parent
Federal Consolidated Income Tax Returns. With respect to any Parent Federal Consolidated Income Tax Return, Parent shall be responsible for any and all Federal Income Taxes due or required to be reported on any such Income Tax Return (including
any increase in such Tax as a result of a Final Determination). 
 (b) Allocation of Tax Relating to Federal Separate Income Tax
Returns. (i) Parent shall be responsible for any and all Federal Income Taxes due with respect to or required to be reported on any Parent Separate Return (including any increase in such Tax as a result of a Final Determination);
(ii) SpinCo shall be responsible for any and all Federal Income Taxes due with respect to or required to be reported on any SpinCo Separate Return (including any increase in such Tax as a result of a Final Determination). 

(c) Allocation of Federal Other Tax. Parent shall be responsible for any and all Federal Other Taxes attributable to the Parent
Business (including any increase in such Tax as a result of a Final Determination). SpinCo shall be responsible for any and all Federal Other Taxes attributable to the Varex Business (including any increase in such Tax as a result of a Final
Determination). 

  
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 Section 2.03 Allocation of State Income and State Other Taxes.
Except as otherwise provided in Section 2.05, State Income Tax and State Other Tax shall be allocated as follows: 
 (a) Allocation
of Tax Relating to Parent State Combined Income Tax Returns. With respect to any Parent State Combined Income Tax Return, Parent shall be responsible for any and all State Income Taxes due or required to be reported on such Income Tax Return
(including any increase in such Tax as a result of a Final Determination). 
 (b) Allocation of Tax Relating to State Separate Income Tax
Returns. (i) Parent shall be responsible for any and all State Income Taxes due with respect to or required to be reported on any Parent Separate Return (including any increase in such State Income Tax as a result of a Final Determination);
(ii) SpinCo shall be responsible for any and all State Income Taxes due with respect to or required to be reported on any SpinCo Separate Return (including any increase in such State Income Tax as a result of a Final Determination). 

(c) Allocation of State Other Tax. Parent shall be responsible for any and all State Other Taxes attributable to the Parent
Business (including any increase in such Tax as a result of a Final Determination). SpinCo shall be responsible for any and all State Other Taxes attributable to the Varex Business (including any increase in such Tax as a result of a Final
Determination). 
 Section 2.04 Allocation of Foreign Taxes. Except as otherwise provided in
Section 2.05, Foreign Income Tax and Foreign Other Tax shall be allocated as follows: 
 (a) Allocation of Tax Relating to Parent
Foreign Combined Income Tax Returns. Parent shall be responsible for any and all Foreign Income Taxes due with respect to or required to be reported on any Parent Foreign Combined Income Tax Return (including any increase in such Tax as a result
of a Final Determination). 
 (b) Allocation of Tax Relating to Separate Returns. (i) Parent shall be responsible for any and
all Foreign Income Taxes due with respect to or required to be reported on any Parent Separate Return (including any increase in such Foreign Income Tax as a result of a Final Determination); (ii) SpinCo shall be responsible for any and all Foreign
Income Taxes due with respect to or required to be reported on any SpinCo Separate Return (including any increase in such Foreign Income Tax as a result of a Final Determination). 

(c) Allocation of Foreign Other Tax. Parent shall be responsible for any and all Foreign Other Taxes attributable to the Parent
Business. SpinCo shall be responsible for any and all Foreign Other Taxes attributable to the Varex Business. 

Section 2.05 Certain Transaction and Other Taxes. 

(a) SpinCo Liability. SpinCo shall be liable for, and shall indemnify and hold harmless the Parent Group from and against any
liability for: 
 (i) subject to Section 2.05(a)(iv), any stamp, sales and use, gross receipts, or other transfer Taxes
imposed by any Tax Authority on any member of the SpinCo Group (if such member is primarily liable for such Tax) on the transfers occurring pursuant to the Transactions; 

  
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 (ii) any Tax resulting from a breach by SpinCo of any representation or covenant
in this Agreement, the Separation and Distribution Agreement or any Ancillary Agreement; 
 (iii) any Tax-Related Losses for which SpinCo is responsible pursuant to Section 7.05 of this Agreement; and 

(iv) any value-added Tax imposed by any Tax Authority on any transfer occurring pursuant to the Transactions to the extent any
member of the SpinCo Group is the transferee with respect to the relevant transfer. 
 The amount for which SpinCo is liable pursuant to Section 2.05(a)(i),
(ii) and (iv) shall include all accounting, legal and other professional fees, and court costs incurred in connection with the relevant Taxes. 

(b) Parent Liability. Parent shall be liable for, and shall indemnify and hold harmless the SpinCo Group from and against any
liability for: 
 (i) subject to Section 2.05(b)(iv), any stamp, sales and use, gross receipts, or other transfer Taxes
imposed by any Tax Authority on any member of the Parent Group (if such member is primarily liable for such Tax) on the transfers occurring pursuant to the Transactions; 

(ii) any Tax resulting from a breach by Parent of any representation or covenant in this Agreement, the Separation and
Distribution Agreement or any Ancillary Agreement; 
 (iii) any Tax-Related Losses
for which Parent is responsible pursuant to Section 7.05 of this Agreement; and 
 (iv) any value-added Tax imposed by
any Tax Authority on any transfer occurring pursuant to the Transactions to the extent any member of the Parent Group is the transferee with respect to the relevant transfer. 

The amounts for which Parent is liable pursuant to Section 2.05(b)(i), (ii) and (iv) shall include all accounting, legal and other professional fees, and
court costs incurred in connection with the relevant Taxes. 
 Section 2.06 Attribution of Taxes. For
purposes of Sections 2.02(c), 2.03(c), and 2.04(c), a Tax and any Tax Items shall be considered attributable to the Varex Business on the one hand and the Parent Business on the other (but not both) to the extent that such Tax and/or Tax Item would
result if such Tax Return were prepared on a separate basis taking into account only the operations and assets of the Varex Business on the one hand and only the operations and assets of the Parent Business on the other hand (but not both), as
applicable. Parent shall determine in good faith and otherwise in accordance with this Agreement which Tax Items are 

  
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properly attributable to assets or activities of the Varex Business (and in the case of a Tax Item that is properly attributable to both the Varex Business and the Parent Business, the allocation
of such Tax Item between the SpinCo Business and the Parent Business). 
 Section 3. Proration of Taxes for Straddle Periods.

 (a) General Method of Proration. In the case of any Straddle Period, Tax Items shall be apportioned between Pre-Deconsolidation Periods and Post-Deconsolidation Periods in accordance with the principles of Treasury Regulations Section 1.1502-76(b) as reasonably interpreted and
applied by Parent. With respect to the Parent Federal Consolidated Income Tax Return for the taxable year that includes the Distribution, Parent shall determine in its sole discretion whether to make an election under Treasury Regulations Section 1.1502-76(b)(2)(ii). SpinCo shall, and shall cause each member of the SpinCo Group to, take all actions necessary to give effect to such election. 

(b) Transactions Treated as Extraordinary Item. In determining the apportionment of Tax Items between Pre-Deconsolidation Periods and Post-Deconsolidation Periods, any Tax Items relating to the Transactions shall be treated as extraordinary items described in Treasury Regulations Section 1.1502-76(b)(2)(ii)(C) and shall (to the extent occurring on or prior to the Deconsolidation Date) be allocated to Pre-Deconsolidation Periods, and any Taxes related to such
items shall be treated under Treasury Regulations Section 1.1502-76(b)(2)(iv) as relating to such extraordinary items and shall (to the extent occurring on or prior to the Deconsolidation Date) be allocated to
Pre-Deconsolidation Periods. 
 Section 4. Preparation and Filing of Tax Returns. 

Section 4.01 General. Except as otherwise provided in this Section 4, Tax Returns shall be prepared and filed
when due (taking into account extensions) by the Person obligated to file such Tax Returns under the Code or applicable Tax Law. The Companies shall provide, and shall cause their Affiliates to provide, assistance and cooperation to one another in
accordance with Section 8 with respect to the preparation and filing of Tax Returns, including by providing information required to be provided pursuant to Section 8. 

Section 4.02 Parent’s Responsibility. Parent has the exclusive obligation and right to
prepare and file, or to cause to be prepared and filed: 
 (a) Parent Federal Consolidated Income Tax Returns for any Tax Periods
ending on, before or after the Deconsolidation Date; 
 (b) Parent State Combined Income Tax Returns, Parent Foreign Combined Income
Tax Returns and any other Joint Returns which Parent reasonably determines are required to be filed (or which Parent chooses to be filed) by the Companies or any of their Affiliates for Tax Periods ending on, before or after the Deconsolidation
Date; and 
 (c) Parent Separate Returns and SpinCo Separate Returns which Parent reasonably determines are required to be filed by
the Companies or any of their Affiliates for Tax Periods ending on, before or after the Deconsolidation Date (limited, in the case of SpinCo Separate Returns, to such Returns as are required to be filed on or prior to the Deconsolidation Date). 

  
 - 14 - 

 Section 4.03 SpinCo’s Responsibility. SpinCo shall
prepare and file, or shall cause to be prepared and filed, all Tax Returns required to be filed by or with respect to members of the SpinCo Group other than those Tax Returns which Parent is required or entitled to prepare and file under
Section 4.02. The Tax Returns required to be prepared and filed by SpinCo under this Section 4.03 shall include (a) any SpinCo Federal Consolidated Income Tax Return for Tax Periods ending after the Deconsolidation Date and
(b) SpinCo Separate Returns required to be filed after the Deconsolidation Date. 
 Section 4.04 Tax Accounting Practices.

 (a) General Rule. Except as otherwise provided in Section 4.04(b), with respect to any Tax Return that SpinCo has the
obligation and right to prepare and file, or cause to be prepared and filed, under Section 4.03, for any Pre-Deconsolidation Period or any Straddle Period (or any Tax Period beginning after the
Deconsolidation Date to the extent items reported on such Tax Return could reasonably be expected to affect items reported on any Tax Return that Parent has the obligation or right to prepare and file for any
Pre-Deconsolidation Period or any Straddle Period), such Tax Return shall be prepared in accordance with past practices, accounting methods, elections or conventions (“Past Practices”) used
with respect to the Tax Returns in question except to the extent (i) otherwise required by a change in applicable law or (ii) as would not have an adverse effect on Parent or its Affiliates. Except as otherwise provided in Section 4.04(b),
Parent shall prepare any Tax Return which it has the obligation and right to prepare and file, or cause to be prepared and filed, under Section 4.02, in accordance with reasonable Tax accounting practices selected by Parent. 

(b) Reporting of Transactions. Except to the extent otherwise required by a change in applicable law or as a result of a Final
Determination, (A) neither Parent nor SpinCo shall, and shall not permit or cause any member of its respective Group to, take any position that is inconsistent with the treatment of (i) the Contribution and Distribution, taken together,
(ii) the Internal Contribution and the First Internal Distribution, taken together, (iii) the Second Internal Distribution, or (iv) the Third Internal Distribution, in each case, as having
Tax-Free Status (or analogous status under state or local law) and, (B) SpinCo shall not knowingly, and shall not knowingly permit or cause any member of the SpinCo Group to, take any position with
respect to an item of income, deduction, gain, loss, or credit on a Tax Return, or otherwise treat such item in a manner which is inconsistent with the manner such item is reported on a Tax Return required to be prepared or filed by Parent pursuant
to Section 4.02 hereof (including, without limitation, the claiming of a deduction previously claimed on any such Tax Return).  

Section 4.05 Consolidated or Combined Tax Returns. SpinCo will elect and join, and will cause its respective
Affiliates to elect and join, in filing any Parent State Combined Income Tax Returns, Parent Foreign Combined Income Tax Returns, and any other Joint Returns that Parent determines are required to be filed by the Companies or any of their Affiliates
(or that Parent chooses to file pursuant to Section 4.02(b)) for Tax Periods ending on, before or after the Deconsolidation Date. With respect to any SpinCo Separate Returns relating to any Tax Period (or portion thereof) ending on or prior to the
Distribution Date, SpinCo will elect and join, and will cause its respective Affiliates to elect and join, in filing consolidated, unitary, combined, or other similar joint Tax Returns, to the extent each entity is eligible to join in such Tax
Returns, if Parent reasonably determines that the filing of such Tax Returns is consistent with past reporting practices, or, in the absence of applicable past practices, will result in the minimization of the net present value of the aggregate Tax
to the entities eligible to join in such Tax Returns. 

  
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 Section 4.06 Right to Review Tax Returns. 

(a) General. The Responsible Company with respect to any material Tax Return shall make such Tax Return (or the relevant
portions thereof), related workpapers, and other supporting documents available for review by the other Company, if requested, to the extent (i) such Tax Return relates to Taxes for which such other Company is or would reasonably be expected to
be liable, (ii) such other Company is or would reasonably be expected to be liable in whole or in part for any additional Taxes owing as a result of adjustments to the amount of Taxes reported on such Tax Return, (iii) such Tax Return
relates to Taxes for which the other Company would reasonably be expected to have a claim for Tax Benefits under this Agreement, or (iv) reasonably necessary for the other Company to confirm compliance with the terms of this Agreement. The
Responsible Company shall use reasonable efforts to make such Tax Return, workpapers, and other supporting documents available for review as required under this paragraph promptly once such Tax Return is materially complete, but in any event no
later than 20 days in advance of the due date for filing such Tax Return (unless the Responsible Company receives a request for review from the other Company within 20 days of the due date for filing such Tax Return, in which case the Responsible
Company shall make such Tax Return, workpapers, and other supporting documents available promptly after the receipt of such request), such that the other Company has a meaningful opportunity to review and comment on such Tax Return and shall use
reasonable efforts to have such Tax Return modified before filing, taking into account the person responsible for payment of the Tax (if any) reported on such Tax Return and whether the amount of Tax liability at issue is material. The Companies
shall attempt in good faith to resolve any disagreement arising out of the review of such Tax Return and, failing such resolution, any disagreement shall be resolved in accordance with the disagreement resolution provisions of Section 14 as
promptly as practicable. For purposes of this Section 4.06(a), a Tax Return is “material” if it could reasonably be expected to reflect (A) Tax liability equal to or in excess of $1 million, (B) a credit or credits equal to
or in excess of $1 million or (C) a loss or losses equal to or in excess of $3 million. 
 (b) Execution of Returns
Prepared by Other Party. In the case of any Tax Return which is required to be prepared and filed by one Company under this Agreement and which is required by law to be signed by the other Company (or by its authorized representative),
the Company which is legally required to sign such Tax Return shall not be required to sign such Tax Return under this Agreement unless there is at least a reasonable basis for the Tax treatment of each material item reported on the Tax Return. 

Section 4.07 SpinCo Carrybacks and Claims for Refund. SpinCo hereby agrees that, unless Parent consents in
writing, (i) no Adjustment Request with respect to any Tax Return with respect to which Parent is the Responsible Company (including any Joint Return) or any other Tax Return reflecting Taxes for which Parent is responsible under Section 2
shall be filed, and (ii) any available elections to waive the right to claim in any Pre-Deconsolidation Period with respect to any Tax Return with respect to which Parent is the Responsible Company
(including any Joint Return) or any Tax Return reflecting Taxes for which both Parent and SpinCo are responsible under Section 2 any SpinCo Carryback arising in a Post-Deconsolidation Period shall be made, and no affirmative election shall be
made to claim any such SpinCo Carryback; 

  
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provided, however, that the parties agree that any such Adjustment Request shall be made with respect to any SpinCo Carryback related to U.S. federal or State Income Taxes, upon the
reasonable request of SpinCo, if such SpinCo Carryback is necessary to prevent the loss of the federal and/or State Income Tax Benefit of such SpinCo Carryback (including, but not limited to, an Adjustment Request with respect to a SpinCo Carryback
of a federal or State capital loss arising in a Post-Deconsolidation Period to a Pre-Deconsolidation Period) and such Adjustment Request, based on Parent’s sole determination, will cause no Tax detriment
to Parent, the Parent Group or any member of the Parent Group. Any Adjustment Request which Parent consents to make under this Section 4.07 shall be prepared and filed by the Responsible Company for the Tax Return to be adjusted. 

Section 4.08 Apportionment of Taxes, Earnings and Profits and Tax Attributes. 

(a) If the Parent Affiliated Group has a Tax Attribute, the portion, if any, of such Tax Attribute apportioned to SpinCo or the members
of the SpinCo Group and treated as a carryover to the first Post Deconsolidation Period of SpinCo (or such member) shall be determined by Parent in accordance with Treasury Regulations Sections 1.1502-21, 1.1502-21T, 1.1502-22, 1.1502-79 and, if applicable, 1.1502-79A. 

(b) No Tax Attribute with respect to consolidated Federal Income Tax of the Parent Affiliated Group, other than those described in
Section 4.08(a), and no Tax Attribute with respect to consolidated, combined or unitary state, local, or foreign Income Tax, in each case, arising in respect of a Joint Return shall be apportioned to SpinCo or any member of the SpinCo Group, except
as Parent (or such member of the Parent Group as Parent shall designate) determines is otherwise required under applicable law. 
 (c)
Parent (or its designee) shall determine the portion, if any, of any Tax Attribute which must (absent a Final Determination to the contrary) be apportioned to SpinCo or any member of the SpinCo Group in accordance with this Section 4.08 and
applicable law and the amount of tax basis and earnings and profits to be apportioned to SpinCo or any member of the SpinCo Group in accordance with this Section 4.08 and applicable law, and shall provide written supporting documentation of the
calculation thereof to SpinCo as soon as reasonably practicable after the information necessary to make such calculation becomes available to Parent. For the absence of doubt, Parent shall not be liable to SpinCo or any member of the SpinCo Group
for any failure of any determination under this Section 4.08 to be accurate under applicable law. 
 (d) The written
documentation delivered by Parent pursuant to Section 4.08(c) shall be binding on SpinCo and each member of the SpinCo Group and shall not be subject to dispute resolution. Except to the extent otherwise required by a change in applicable law or
pursuant to a Final Determination, SpinCo shall not take any position (whether on a Tax Return or otherwise) that is inconsistent with the information contained in such written documentation. 

Section 5. Tax Payments. 

Section 5.01 Payment of Taxes with Respect to Parent Federal Consolidated Income Tax Returns and Parent State Combined
Income Tax Returns. Parent shall pay (a) to the IRS any Tax due with respect to any Parent Federal Consolidated Income Tax Return (including any Federal Income Tax due from the Parent Affiliated Group that is required to be paid as a result
of 

  
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an adjustment to an Parent Federal Consolidated Income Tax Return) and (b) to the applicable Tax Authority any Tax due with respect to any Parent State Combined Income Tax Return (including
any State Income Tax due that is required to be paid as a result of an adjustment to a Parent State Combined Income Tax Return). 

Section 5.02 Payment of Taxes with Respect to Joint Returns (Other Than a Parent Federal Consolidated Income Tax Return
or Parent State Combined Income Tax Return) and Certain Returns of Other Taxes. In the case of (I) any Joint Return (other than a Parent Federal Consolidated Income Tax Return or Parent State Combined Income Tax Return) and (II) any
Return of Other Taxes reflecting Taxes for which both Parent and SpinCo are responsible under Section 2: 
 (a) Payment of Tax Due.
The Responsible Company shall compute the amount of Tax required to be paid to the applicable Tax Authority (taking into account the requirements of Section 4.04 relating to consistent accounting and reporting practices, as applicable) with
respect to any Tax Return on the Payment Date for such Tax Return. The Responsible Company shall pay such amount to such Tax Authority on or before such Payment Date. The Responsible Company shall provide notice to the other Company setting forth
such other Company’s responsibility for the amount of Taxes paid to the Tax Authority and provide proof of payment of such Taxes. 

(b) Computation and Payment of Liability with Respect to Tax Due. Within 30 days following the earlier of (i) the due date
(taking into account extensions) for filing any such Tax Return (excluding any Tax Return with respect to payment of estimated Taxes or Taxes due with a request for extension of time to file) or (ii) the date on which such Tax Return is filed,
if Parent is the Responsible Company, then SpinCo shall pay to Parent the amount, if any, allocable to the SpinCo Group under the provisions of this Agreement, and if SpinCo is the Responsible Company, then Parent shall pay to SpinCo the amount, if
any, allocable to the Parent Group under the provisions of this Agreement, in each case, plus interest computed at the Prime Rate on the amount of the payment based on the number of days from the earlier of (i) the due date of the Tax Return
(including extensions) or (ii) the date on which such Tax Return is filed, to the date of payment. For the avoidance of doubt, however, (x) the 30-day period described herein shall not commence
unless and until the Responsible Company notifies the other Company pursuant to Section 5.02(a) hereof, and (y) interest shall not accrue during any time period where such notification has not been received, unless such notification is received
within the 30-day period described herein, in which case interest shall accrue beginning on the earlier of (i) the due date of the Tax Return (excluding extensions) or (ii) the date on which such Tax
Return is filed. 
 (c) Adjustments Resulting in Underpayments. In the case of any adjustment pursuant to a Final
Determination with respect to any such Tax Return, the Responsible Company shall pay to the applicable Tax Authority when due any additional Tax due with respect to such Tax Return required to be paid as a result of such adjustment pursuant to such
Final Determination. The Responsible Company shall compute the amount attributable to the SpinCo Group or the Parent Group (as the case may be) in accordance with this Agreement and SpinCo shall pay to Parent any amount due Parent (or Parent shall
pay SpinCo any amount due SpinCo) under this Agreement within 30 days from the later of (i) the date the additional Tax was paid by the Responsible Company or, in an instance where no cash payment is due to a Tax Authority, the date of such
Final Determination, or (ii) the date of receipt of a written notice and demand from 

  
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the Responsible Company for payment of the amount due, accompanied by evidence of payment and a statement detailing the Taxes paid and describing in reasonable detail the particulars relating
thereto. Any payments required under this Section 5.02(c) shall include interest computed at the Prime Rate based on the number of days from the date the additional Tax was paid by the Responsible Company (or, in an instance where no cash
payment is due to a Tax Authority, the date of such Final Determination) to the date of the payment under this Section 5.02(c). 

(d) Notwithstanding anything to the contrary herein, if the amount to be paid pursuant to Section 5.02(b) or (c) (in each case,
excluding interest) is in excess of $1 million, then, no later than the later of (i) 5 business days after the date of receipt of a written notice and demand from the Responsible Company for payment of the amount due, accompanied by a statement
detailing the Taxes required to be paid and (ii) 3 business days prior to the due date for the payment of such Tax, SpinCo shall pay to Parent any amount due Parent (or Parent shall pay SpinCo any amount due SpinCo under Section 2. 

Section 5.03 Payment of Separate Company Taxes. Each Company shall pay, or shall cause to be paid, to the applicable
Tax Authority when due all Taxes owed by such Company or a member of such Company’s Group with respect to a Separate Return of Income Taxes and with respect to a Separate Return of Other Taxes (provided that Separate Returns of Other
Taxes described in clause (II) of Section 5.02 shall be governed by Section 5.02). 
 Section 5.04
Indemnification Payments. 
 (a) If any Company (the “Payor”) is required under applicable Tax Law to pay
to a Tax Authority a Tax that another Company (the “Required Party”) is liable for under this Agreement, the Payor shall provide notice to the Required Party of the amount due, accompanied by evidence of payment and a statement
detailing the Taxes paid and describing in reasonable detail the particulars relating thereto. Such Required Party shall have a period of 30 days after the receipt of notice to respond thereto. Unless the Required Party disputes the amount it is
liable for under this Agreement, the Required Party shall reimburse the Payor within 45 days of delivery by the Payor of the notice described above. To the extent the Required Party does not agree with the amount the Payor claims the Required Party
is liable for under this Agreement, the dispute shall be resolved in accordance with Section 14. Any reimbursement shall include interest on the Tax payment computed at the Prime Rate based on the number of days from the date of the payment to
the Tax Authority to the date of reimbursement under this Section 5.04. Notwithstanding anything to the contrary herein, if the amount to be paid pursuant to this Section 5.04 (excluding interest) is in excess of $1 million, then, no
later than the later of (i) 5 business days after delivery by the Payor to the Required Party of an invoice for the amount due, accompanied by a statement detailing the Taxes required to be paid and describing in reasonable detail the particulars
relating thereto, (ii) 3 business days prior to the due date for the payment of such Tax, the Required Party shall pay the Payor. 
 (b)
Any Tax indemnity payment required to be made by the Required Party pursuant to this Agreement shall be reduced by any corresponding Tax Benefit payment required to be made to the Required Party by the other Company pursuant to Section 6.
For the avoidance of doubt, a Tax Benefit payment is treated as corresponding to a Tax indemnity payment to the extent the Tax Benefit realized is directly attributable to the same Tax Item (or adjustment of such Tax Item pursuant to a Final
Determination) that gave rise to the Tax indemnity payment. 
 (c) All indemnification payments under this Agreement shall be made by
Parent directly to SpinCo and by SpinCo directly to Parent; provided, however, that if the Companies mutually agree with respect to any such indemnification payment, any member of the Parent Group, on the one hand, may make such
indemnification payment to any member of the SpinCo Group, on the other hand, and vice versa. 

  
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 Section 6. Tax Benefits. 

Section 6.01 Tax Benefits. 

(a) Except as set forth below, Parent shall be entitled to any refund (and any interest thereon received from the applicable Tax
Authority) of Income Taxes and Other Taxes for which Parent is liable hereunder, SpinCo shall be entitled to any refund (and any interest thereon received from the applicable Tax Authority) of Income Taxes and Other Taxes for which SpinCo is liable
hereunder, and a Company receiving a refund to which another Company is entitled hereunder in whole or in part shall pay over such refund (or portion thereof) to such other Company within 30 days after such refund is received (together with interest
computed at the Prime Rate based on the number of days from the date the refund was received to the date the refund was paid over). 

(b) If a member of the SpinCo Group actually realizes in cash any Tax Benefit as a result of an adjustment pursuant to a Final
Determination that increases Taxes for which a member of the Parent Group is liable hereunder (or reduces any Tax Attribute of a member of the Parent Group) and such Tax Benefit would not have arisen but for such adjustment (determined on a
“with and without” basis), or if a member of the Parent Group actually realizes in cash any Tax Benefit as a result of an adjustment pursuant to a Final Determination that increases Taxes for which a member of the SpinCo Group is liable
hereunder (or reduces any Tax Attribute of a member of the SpinCo Group) and such Tax Benefit would not have arisen but for such adjustment (determined on a “with and without” basis), SpinCo or Parent, as the case may be, shall make a
payment to either Parent or SpinCo, as appropriate, within 30 days following such actual realization of the Tax Benefit, in an amount equal to such Tax Benefit actually realized in cash (including any Tax Benefit actually realized as a result of the
payment), plus interest on such amount computed at the Prime Rate based on the number of days from the date of such actual realization of the Tax Benefit to the date of payment of such amount under this Section 6.01(b). 

(c) No later than 30 days after a Tax Benefit described in Section 6.01(b) is actually realized in cash by a member of the Parent Group
or a member of the SpinCo Group, Parent (if a member of the Parent Group actually realizes such Tax Benefit) or SpinCo (if a member of the SpinCo Group actually realizes such Tax Benefit) shall provide the other Company with a written calculation of
the amount payable to such other Company by Parent or SpinCo pursuant to this Section 6. In the event that Parent or SpinCo disagrees with any such calculation described in this Section 6.01(c), Parent or SpinCo shall so notify the other
Company in writing within 15 days of receiving the written calculation set forth above in this Section 6.01(c). Parent and SpinCo shall endeavor in good faith to resolve such disagreement, and, failing that, the

  
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amount payable under this Section 6 shall be determined in accordance with the disagreement resolution provisions of Section 14 as promptly as practicable. To the extent the amount
payable determined pursuant to this Section 6.01(c) differs from the amount paid pursuant to Section 6.01(b), an appropriate adjusting payment shall be made promptly. 

(d) SpinCo shall be entitled to any refund that is attributable to, and would not have arisen but for, a SpinCo Carryback pursuant to
the proviso set forth in Section 4.07; provided, however, SpinCo shall indemnify and hold the members of the Parent Group harmless from and against any and all collateral Tax consequences resulting from or caused by any such
Carryback, including (but not limited to) the loss or postponement of any benefit from the use of Tax Attributes generated by a member of the Parent Group or an Affiliate thereof if (x) such Tax Attributes expire unutilized, but would have been
utilized but for such Carryback, or (y) the use of such Tax Attributes is postponed to a later Tax Period than the Tax Period in which such Tax Attributes would have been utilized but for such Carryback. Any such payment of such refund made by
Parent to SpinCo pursuant to this Section 6.01(d) shall be recalculated in light of any Final Determination (or any other facts that may arise or come to light after such payment is made, such as a carryback of an Parent Group Tax Attribute to a Tax
Period in respect of which such refund is received) that would affect the amount to which SpinCo is entitled, and an appropriate adjusting payment shall be made by SpinCo to Parent such that the aggregate amount paid pursuant to this Section 6.01(d)
equals such recalculated amount (with interest computed at the Prime Rate). 
 Section 6.02 Parent and SpinCo Income Tax Deductions
in Respect of Certain Equity Awards and Incentive Compensation. 
 (a) Allocation of Deductions. To the extent permitted
by applicable law, Income Tax deductions arising by reason of exercises of options to purchase Parent or SpinCo stock or settlement of restricted stock awards, restricted stock units or performance stock unit awards, in each case, following the
Distribution, with respect to Parent stock or SpinCo stock (such options, restricted stock units, or performance stock unit awards, collectively, “Compensatory Equity Interests”) held by any Person shall be claimed by the issuing
corporation. 
 (b) Withholding and Reporting. Tax reporting and withholding with respect to Compensatory Equity Interests
shall be governed by Section 4.02(e) of the Employee Matters Agreement. 
 Section 7.
Tax-Free Status. 
 Section 7.01 Representations. 

(a) Each of Parent and SpinCo hereby represents and warrants that (A) it has reviewed the Representation Letters and
(B) subject to any qualifications therein, all information, representations and covenants contained in such Representation Letters that relate to such Company or any member of its Group are true, correct and complete. 

(b) SpinCo hereby represents and warrants that it has no plan or intention of taking any action, or failing to take any action (or
causing or permitting any member of its Group to take or fail to take any action), in each case, from and after the Distribution Date, that could 

  
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reasonably be expected to cause any representation or factual statement made in this Agreement, the Separation and Distribution Agreement, the Representation Letters or any of the
Ancillary Agreements to be untrue. 
 (c) SpinCo hereby represents and warrants that, during the
two-year period ending on the Distribution Date, there was no “agreement, understanding, arrangement, substantial negotiations or discussions” (as such terms are defined in Treasury Regulations
Section 1.355-7(h)) by any one or more officers or directors of any member of the SpinCo Group or by any other person or persons with the implicit or explicit permission of one or more of such officers or
directors regarding an acquisition of all or a significant portion of the SpinCo Capital Stock (or any predecessor); provided, however, that no representation is made regarding any such “agreement, understanding, arrangement,
substantial negotiations or discussions” (as such terms are defined in Treasury Regulations 1.355-7(h)) by any one or more officers or directors of Parent. 

Section 7.02 Restrictions on SpinCo.  

(a) SpinCo agrees that it will not take or fail to take, or cause or permit any SpinCo Affiliate to take or fail to take, any action
where such action or failure to act would be inconsistent with or cause to be untrue any material, information, covenant or representation in this Agreement, the Separation and Distribution Agreement, any of the Ancillary Agreements or any
Representation Letter. SpinCo agrees that it will not take or fail to take, or permit any SpinCo Affiliate to take or fail to take, any action which prevents or could reasonably be expected to prevent (A) the
Tax-Free Status, or (B) any other transaction contemplated by the Separation and Distribution Agreement which is intended by the parties to be tax-free from so
qualifying. 
 (b) Reserved. 

(c) SpinCo agrees that, from the date hereof until the first day after the Restriction Period, it will (i) maintain its status as
a company engaged in the SpinCo Active Trade or Business for purposes of Section 355(b)(2) of the Code and (ii) not engage in any transaction that would result in it ceasing to be a company engaged in the SpinCo Active Trade or Business for
purposes of Section 355(b)(2) of the Code. SpinCo further agrees that, from the date hereof until the first day after the Restriction Period, it will cause Internal SpinCo to (A) maintain its status as a company engaged in the Internal SpinCo
Active Trade or Business for purposes of Section 355(b)(2) of the Code and (B) not engage in any transaction that would result in it ceasing to be a company engaged in the Internal SpinCo Active Trade or Business for purposes of Section
355(b)(2) of the Code. 
 (d) SpinCo agrees that, from the date hereof until the first day after the Restriction Period, it will not
(i) enter into any Proposed Acquisition Transaction or, to the extent SpinCo has the right to prohibit any Proposed Acquisition Transaction, permit any Proposed Acquisition Transaction to occur (whether by (a) redeeming rights under a
shareholder rights plan, (b) finding a tender offer to be a “permitted offer” under any such plan or otherwise causing any such plan to be inapplicable or neutralized with respect to any Proposed Acquisition Transaction, or
(c) approving any Proposed Acquisition Transaction, whether for purposes of Section 203 of the DGCL or any similar corporate statute, any “fair price” or other provision of SpinCo’s

  
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charter or bylaws or otherwise), (ii) merge or consolidate with any other Person or liquidate or partially liquidate, (iii) in a single transaction or series of transactions (A) sell or
transfer (other than sales or transfers of inventory in the ordinary course of business) all or substantially all of the assets that were transferred to SpinCo pursuant to the Contribution, (B) sell or transfer 30% or more of the gross assets
of the SpinCo Active Trade or Business or (C) sell or transfer 30% or more of the consolidated gross assets of SpinCo and its Affiliates (in each case, such percentages to be measured based on fair market value as of the Distribution Date),
(iv) redeem or otherwise repurchase (directly or through a SpinCo Affiliate) any SpinCo stock, or rights to acquire stock, except to the extent such repurchases satisfy Section 4.05(1)(b) of Revenue Procedure
96-30 (as in effect prior to the amendment by Revenue Procedure 2003-48), (v) amend its certificate of incorporation (or other organizational documents), or take any
other action, whether through a stockholder vote or otherwise, affecting the voting rights of SpinCo Capital Stock (including, without limitation, through the conversion of one class of SpinCo Capital Stock into another class of SpinCo Capital
Stock), (vi) take any other action or actions (including any action or transaction that would be reasonably likely to be inconsistent with any representation or covenant made in the Representation Letters) which in the aggregate (and taking into
account any other transactions described in this subparagraph (d)) would be reasonably likely to have the effect of causing or permitting one or more persons to acquire, directly or indirectly, stock representing a Fifty-Percent or Greater Interest
in SpinCo or otherwise jeopardize the Tax-Free Status of the Contribution, the Distribution, the Internal Contribution, or any of the Internal Distributions, or (vii) cause or permit Internal SpinCo to
take any action or enter into any transaction described in the preceding clauses (ii), (iii), (iv), (v) or (vi) (substituting references therein to “SpinCo,” the “Contribution,” the “SpinCo Active Trade or Business” and
“SpinCo Capital Stock” with references to “Internal SpinCo,” the “Internal Contribution,” the “Internal SpinCo Active Trade or Business” and “Internal SpinCo Capital Stock”) unless, in each case,
prior to taking any such action set forth in the foregoing clauses (i) through (vii), (A) SpinCo shall have requested that Parent obtain a private letter ruling (or, if applicable, a supplemental private letter ruling) from the IRS and/or any
other applicable Tax Authority in accordance with Section 7.04(b) and (d) of this Agreement to the effect that such transaction will not affect the Tax-Free Status and Parent shall have received such a
private letter ruling in form and substance satisfactory to Parent in its sole and absolute discretion (and in determining whether a private letter ruling is satisfactory, Parent may consider, among other factors, the appropriateness of any
underlying assumptions and management’s representations made in connection with such private letter ruling), or (B) SpinCo shall provide Parent with an Unqualified Tax Opinion in form and substance satisfactory to Parent in its sole and
absolute discretion (and in determining whether an opinion is satisfactory, Parent may consider, among other factors, the appropriateness of any underlying assumptions and management’s representations if used as a basis for the opinion and
Parent may determine that no opinion would be acceptable to Parent) or (C) Parent shall have waived the requirement to obtain such private letter ruling or Unqualified Tax Opinion. 

(e) Certain Issuances of SpinCo Capital Stock. If SpinCo proposes to enter into any Section 7.02(e) Acquisition Transaction or,
to the extent SpinCo has the right to prohibit any Section 7.02(e) Acquisition Transaction, proposes to permit any Section 7.02(e) Acquisition Transaction to occur, in each case, during the period from the date hereof until the first day after the
Restriction Period, SpinCo shall provide Parent, no later than ten days following the signing of any written agreement with respect to the Section 7.02(e) Acquisition Transaction, with a written description of such transaction (including the type
and amount of SpinCo Capital Stock 

  
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to be issued in such transaction) and a certificate of the Chief Financial Officer of SpinCo to the effect that the Section 7.02(e) Acquisition Transaction is not a Proposed Acquisition
Transaction or any other transaction to which the requirements of Section 7.02(d) apply (a “CFO Certificate”). 

Section 7.03 Restrictions on Parent. Parent agrees that it will not take or fail to take, or cause or
permit any member of the Parent Group to take or fail to take, any action where such action or failure to act would be inconsistent with or cause to be untrue any material, information, covenant or representation in this Agreement, the Separation
and Distribution Agreement, any of the Ancillary Agreements or any Representation Letters. Parent agrees that it will not take or fail to take, or cause or permit any member of the Parent Group to take or fail to take, any action which prevents or
could reasonably be expected to prevent (A) the Tax-Free Status, or (B) any other transaction contemplated by the Separation and Distribution Agreement which is intended by the parties to be tax-free from so qualifying. 
 Section 7.04 Procedures Regarding Opinions and Rulings. 

(a) If SpinCo notifies Parent that it desires to take one of the actions described in clauses (i) through (vii) of Section 7.02(d)
(a “Notified Action”), Parent and SpinCo shall reasonably cooperate to attempt to obtain the private letter ruling or Unqualified Tax Opinion referred to in Section 7.02(d), unless Parent shall have waived the requirement to obtain
such private letter ruling or Unqualified Tax Opinion. 
 (b) Rulings or Unqualified Tax Opinions at SpinCo’s Request. At the
reasonable request of SpinCo pursuant to Section 7.02(d), Parent shall cooperate with SpinCo and use its reasonable best efforts to seek to obtain, as expeditiously as possible, a private letter ruling from the IRS (and/or any other applicable Tax
Authority, or if applicable, a supplemental private letter ruling) or cooperate with SpinCo to enable SpinCo to obtain an Unqualified Tax Opinion for the purpose of permitting SpinCo to take the Notified Action. Further, in no event shall Parent be
required to file any request for a private letter ruling under this Section 7.04(b) unless SpinCo represents that (A) it has reviewed the request for such private letter ruling, and (B) all information and representations, if any, relating
to any member of the SpinCo Group, contained in the related private letter ruling documents are (subject to any qualifications therein) true, correct and complete. SpinCo shall reimburse Parent for all reasonable costs and expenses incurred by the
Parent Group in obtaining a private letter ruling or Unqualified Tax Opinion requested by SpinCo within 10 business days after receiving an invoice from Parent therefor. 

(c) Rulings or Unqualified Tax Opinions at Parent’s Request. Parent shall have the right to obtain a private letter ruling
(or, if applicable, a supplemental private letter ruling) from the IRS (and/or any other applicable Tax Authority) or an Unqualified Tax Opinion at any time in its sole and absolute discretion. If Parent determines to obtain a private letter ruling
or an Unqualified Tax Opinion, SpinCo shall (and shall cause each Affiliate of SpinCo to) cooperate with Parent and take any and all actions reasonably requested by Parent in connection with obtaining the private letter ruling or Unqualified Tax
Opinion (including, without limitation, by making any representation or covenant or providing any materials or information requested by the IRS (or other applicable Tax Authority) or Tax Advisor; provided that SpinCo shall not be required to
make (or cause any Affiliate of SpinCo to make) any representation or covenant that is inconsistent with historical facts or as to future matters or events over which it has no control). Parent and SpinCo shall each bear its own costs and expenses
in obtaining a private letter ruling or an Unqualified Tax Opinion requested by Parent. 

  
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 (d) SpinCo hereby agrees that Parent shall have sole and exclusive control over the
process of obtaining any private letter ruling pursuant to Section 7.04(b) or (c), and that only Parent shall apply for such a private letter ruling. In connection with obtaining a private letter ruling pursuant to Section 7.04(b), (A) Parent shall
keep SpinCo informed in a timely manner of all material actions taken or proposed to be taken by Parent in connection therewith; (B) Parent shall (1) reasonably in advance of the submission of any related private letter ruling documents
provide SpinCo with a draft copy thereof, (2) reasonably consider SpinCo’s comments on such draft copy, and (3) provide SpinCo with a final copy; and (C) Parent shall provide SpinCo with notice reasonably in advance of, and
SpinCo shall have the right to attend, any formally scheduled meetings with the IRS (or other applicable Tax Authority) (subject to the approval of the IRS (or other applicable Tax Authority)) that relate to such private letter ruling. Neither
SpinCo nor any SpinCo Affiliate directly or indirectly controlled by SpinCo shall seek any guidance from the IRS or any other Tax Authority (whether written, verbal or otherwise) at any time concerning the Contribution and the Distribution, the
Internal Contribution and the First Internal Distribution, the Second Internal Distribution, or the Third Internal Distribution (including the impact of any transaction on any of the foregoing). 

Section 7.05 Liability for Tax-Related Losses. 

(a) Notwithstanding anything in this Agreement or the Separation and Distribution Agreement to the contrary, subject to
Section 7.05(c), SpinCo shall be responsible for, and shall indemnify and hold harmless Parent and its Affiliates and each of their respective officers, directors and employees from and against, one hundred percent (100%) of any Tax-Related Losses that are attributable to or result from any one or more of the following: (A) the acquisition (other than pursuant to the Contribution or the Distribution) of all or a portion of
SpinCo’s Capital Stock and/or its or its subsidiaries’ assets (including any Internal SpinCo Capital Stock) by any means whatsoever by any Person, (B) any “agreement, understanding, arrangement, substantial negotiations or
discussions” (as such terms are defined in Treasury Regulations Section 1.355-7(h)) by any one or more officers or directors of any member of the SpinCo Group or by any other person or persons with the
implicit or explicit permission of one or more of such officers or directors regarding transactions or events that cause the Distribution or any Internal Distribution to be treated as part of a plan pursuant to which one or more Persons acquire,
directly or indirectly, stock of SpinCo or Internal SpinCo, in each case, representing a Fifty-Percent or Greater Interest therein, (C) any action or failure to act by SpinCo after the Distribution (including, without limitation, any amendment
to SpinCo’s certificate of incorporation (or other organizational documents), whether through a stockholder vote or otherwise) affecting the voting rights of SpinCo stock (including, without limitation, through the conversion of one class of
SpinCo Capital Stock into another class of SpinCo Capital Stock), (D) any act or failure to act by SpinCo or any SpinCo Affiliate described in Section 7.02 (regardless whether such act or failure to act is covered by a private letter ruling,
Unqualified Tax Opinion or waiver described in clause (A), (B) or (C) of Section 7.02(d)), a CFO Certificate described in Section 7.02(e) or a consent described in Section 7.02(g)) or (E) any breach by SpinCo of its agreements and
representations set forth in Section 7.01. 

  
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 (b) Notwithstanding anything in this Agreement or the Separation and Distribution
Agreement to the contrary, subject to Section 7.05(c), Parent shall be responsible for, and shall indemnify and hold harmless SpinCo and its Affiliates and each of their respective officers, directors and employees from and against, one hundred
percent (100%) of any Tax-Related Losses that are attributable to, or result from any one or more of the following: (A) the acquisition (other than pursuant to the Contribution or the Distribution) of all
or a portion of Parent’s stock and/or its or its subsidiaries’ assets (including any capital stock of VMSN, VMSN Holdings, or VMSI Holdings) by any means whatsoever by any Person, (B) any “agreement, understanding, arrangement,
substantial negotiations or discussions” (as such terms are defined in Treasury Regulations Section 1.355-7(h)) by any one or more officers or directors of any member of the Parent Group or by any other
person or persons with the implicit or explicit permission of one or more of such officers or directors regarding transactions or events that cause the Distribution, or any Internal Distribution to be treated as part of a plan pursuant to which one
or more Persons acquire, directly or indirectly, stock of Parent, VMSN, VMSN Holdings, or VMSI Holdings, in each case, representing a Fifty-Percent or Greater Interest therein, (C) any act or failure to act by Parent or a member of the Parent
Group described in Section 7.03 or (D) any breach by Parent of its agreement and representations set forth in Section 7.01(a). 

(c) 
 (i)
To the extent that any Tax-Related Loss is subject to indemnity under both Sections 7.05(a) and (b), responsibility for such Tax-Related Loss shall be shared by Parent
and SpinCo according to relative fault. 
 (ii) Notwithstanding anything in Section 7.05(b) or (c)(i) or any other provision
of this Agreement or the Separation and Distribution Agreement to the contrary: 
 (A) with respect to (I) any Tax-Related Loss resulting from the application of Section 355(e) or Section 355(f) of the Code (other than as a result of an acquisition of a Fifty-Percent or Greater Interest in Parent, VMSN, VMSN Holdings, or
VMSI Holdings) and (II) any other Tax-Related Loss resulting, in whole or in part, from an acquisition after the Distribution of any stock or assets of SpinCo (or any SpinCo Affiliate) by any means
whatsoever by any Person or any action or failure to act by SpinCo affecting the voting rights of SpinCo, SpinCo shall be responsible for, and shall indemnify and hold harmless Parent and its Affiliates and each of their respective officers,
directors and employees from and against, one hundred percent (100%) of such Tax-Related Loss; and 

(B) for purposes of calculating the amount and timing of any Tax-Related Loss for which
SpinCo is responsible under this Section 7.05, Tax-Related Losses shall be calculated by assuming that Parent, the Parent Affiliated Group and each member of the Parent Group (I) pay Tax at the
highest marginal corporate Tax rates in effect in each relevant taxable year and (II) have no Tax Attributes in any relevant taxable year. 

  
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 (iii) Notwithstanding anything in Section 7.05(a) or (c)(i) or any other
provision of this Agreement or the Separation and Distribution Agreement to the contrary, (A) with respect to (I) any Tax-Related Loss resulting from the application of Section 355(e) or Section
355(f) of the Code (other than as a result of an acquisition of a Fifty-Percent or Greater Interest in SpinCo or Internal SpinCo) and (II) any other Tax-Related Loss resulting, in whole or in part, from
an acquisition after the Distribution of any stock or assets of Parent (or any Parent Affiliate) by any means whatsoever by any Person, Parent shall be responsible for, and shall indemnify and hold harmless SpinCo and its Affiliates and each of
their respective officers, directors and employees from and against, one hundred percent (100%) of such Tax-Related Loss; and (B) for purposes of calculating the amount and timing of any Tax-Related Loss for which Parent is responsible under this Section 7.05, Tax-Related Losses shall be calculated by assuming that SpinCo, the SpinCo Group, and each
member of the SpinCo Group (I) pay Tax at the highest marginal corporate Tax rates in effect in each relevant taxable year and (II) have no Tax Attributes in any relevant taxable year. 

(d) SpinCo shall pay Parent the amount of any Tax-Related Losses for which SpinCo is
responsible under this Section 7.05: (A) in the case of Tax-Related Losses described in clause (i) of the definition of Tax-Related Losses no later than two
business days prior to the date Parent files, or causes to be filed, the applicable Tax Return for the year of the Contribution or Distribution, as applicable (the “Filing Date”) (provided that if such Tax-Related Losses arise pursuant to a Final Determination described in clause (a), (b) or (c) of the definition of “Final Determination,” then SpinCo shall pay Parent no later than two business days
prior to the due date for making payment with respect to such Final Determination) and (B) in the case of Tax-Related Losses described in clause (ii) or (iii) of the definition of Tax-Related Losses, no later than two business days after the date Parent pays such Tax-Related Losses. Parent shall pay SpinCo the amount of any Tax-Related Losses (described in clause (ii) or (iii) of the definition of Tax-Related Loss) for which Parent is responsible under this Section 7.05 no later than
two business days after the date SpinCo pays such Tax-Related Losses. Each party shall have the right to review the calculation of any Tax-Related Losses prepared by the
other party, including any related workpapers and other supporting documentation. 
 Section 7.06 Section 336(e)
Election. If Parent determines, in its sole discretion, that a protective election under Section 336(e) of the Code (a “Section 336(e) Election”) shall be made with respect to the Distribution, SpinCo shall
(and shall cause the relevant member of the SpinCo Group to) join with Parent or the relevant member of the Parent Group in the making of such election and shall take any action reasonably requested by Parent or that is otherwise necessary to give
effect to such election (including making any other related election). If a Section 336(e) Election is made with respect to the Distribution, then this Agreement shall be amended in such a manner as is determined by Parent in good faith to take into
account such Section 336(e) Election (including by requiring that, in the event the Contribution and Distribution fail to have Tax-Free Status and Parent is not entitled to indemnification for the Tax-Related Losses arising from such failure, SpinCo shall pay over to Parent any Tax Benefits actually realized in cash by the SpinCo Group or any member of the SpinCo Group arising from the step-up in Tax basis resulting from the Section 336(e) Election); provided, such amounts payable shall be reduced by all reasonable costs incurred by SpinCo to amend any Tax Returns or other governmental
filings related to such Section 336(e) Election. 

  
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 Section 8. Assistance and Cooperation. 

Section 8.01 Assistance and Cooperation. 

(a) Each of the Companies shall provide (and cause its Affiliates to provide) the other and its agents, including accounting firms and
legal counsel, with such cooperation or information as such other Company reasonably requests in connection with Tax matters relating to the Companies and their Affiliates, including (i) preparation and filing of Tax Returns,
(ii) determining the liability for and amount of any Taxes due (including estimated Taxes) or the right to and amount of any refund of Taxes, (iii) examinations of Tax Returns, and (iv) any administrative or judicial proceeding in
respect of Taxes assessed or proposed to be assessed. Such cooperation shall include making available, upon reasonable notice, all information and documents in their possession relating to the other Company and its Affiliates as provided in
Section 9. Each of the Companies shall also make available to the other, as reasonably requested and available, personnel (including officers, directors, employees and agents of the Companies or their respective Affiliates) responsible for
preparing, maintaining, and interpreting information and documents relevant to Taxes, and personnel reasonably required as witnesses for purposes of providing information or documents in connection with any administrative or judicial proceedings
relating to Taxes. 
 (b) Any information or documents provided under this Section 8 or Section 9 shall be kept
confidential by the Company receiving the information or documents, except as may otherwise be necessary in connection with the filing of Tax Returns or in connection with any administrative or judicial proceedings relating to Taxes. Notwithstanding
any other provision of this Agreement or any other agreement, (i) neither Parent nor any Parent Affiliate shall be required to provide SpinCo or any SpinCo Affiliate or any other Person access to or copies of any information (including the
proceedings of any Tax Contest) other than information that relate solely to SpinCo, the business or assets of SpinCo or any SpinCo Affiliate and (ii) in no event shall Parent or any Parent Affiliate be required to provide SpinCo, any
SpinCo Affiliate or any other Person access to or copies of any information if such action could reasonably be expected to result in the waiver of any Privilege. In addition, in the event that Parent determines that the provision of any information
to SpinCo or any SpinCo Affiliate could be commercially detrimental, violate any law or agreement or waive any Privilege, the parties shall use reasonable best efforts to permit compliance with its obligations under this Section 8 or
Section 9 in a manner that avoids any such harm or consequence. 
 Section 8.02 Income Tax Return
Information. SpinCo and Parent acknowledge that time is of the essence in relation to any request for information, assistance or cooperation made by Parent or SpinCo pursuant to Section 8.01 or this Section 8.02. SpinCo and
Parent acknowledge that failure to conform to the deadlines set forth herein or reasonable deadlines otherwise set by Parent or SpinCo could cause irreparable harm. Each Company shall provide to the other Company information and documents relating
to its Group required by the other Company to prepare Tax Returns. Any information or documents the Responsible Company requires to prepare such Tax Returns shall be provided in such form as the Responsible Company reasonably requests and in
sufficient time for the Responsible Company to file such Tax Returns on a timely basis. 

  
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 Section 8.03 Reliance by Parent. If any member of the SpinCo
Group supplies information to a member of the Parent Group in connection with a Tax liability and an officer of a member of the Parent Group signs a statement or other document under penalties of perjury in reliance upon the accuracy of such
information, then upon the written request of such member of the Parent Group identifying the information being so relied upon, the chief financial officer of SpinCo (or any officer of SpinCo as designated by the chief financial officer of SpinCo)
shall certify in writing that to his or her knowledge (based upon consultation with appropriate employees) the information so supplied is accurate and complete. SpinCo agrees to indemnify and hold harmless each member of the Parent Group and its
directors, officers and employees from and against any fine, penalty, or other cost or expense of any kind attributable to a member of the SpinCo Group having supplied, pursuant to this Section 8, a member of the Parent Group with inaccurate or
incomplete information in connection with a Tax liability. 
 Section 8.04 Reliance by SpinCo. If any
member of the Parent Group supplies information to a member of the SpinCo Group in connection with a Tax liability and an officer of a member of the SpinCo Group signs a statement or other document under penalties of perjury in reliance upon the
accuracy of such information, then upon the written request of such member of the SpinCo Group identifying the information being so relied upon, the chief financial officer of Parent (or any officer of Parent as designated by the chief financial
officer of Parent) shall certify in writing that to his or her knowledge (based upon consultation with appropriate employees) the information so supplied is accurate and complete. Parent agrees to indemnify and hold harmless each member of the
SpinCo Group and its directors, officers and employees from and against any fine, penalty, or other cost or expense of any kind attributable to a member of the Parent Group having supplied, pursuant to this Section 8, a member of the SpinCo
Group with inaccurate or incomplete information in connection with a Tax liability. 
 Section 9. Tax Records. 

Section 9.01 Retention of Tax Records. Each Company shall preserve and keep all Tax Records (including emails and
other digitally stored materials) exclusively relating to the assets and activities of its Group for Pre-Deconsolidation Periods, and Parent shall preserve and keep all other Tax Records relating to Taxes of
the Groups for Pre-Deconsolidation Tax Periods, for so long as the contents thereof may become material in the administration of any matter under the Code or other applicable Tax Law, but in any event until
the later of (i) the expiration of any applicable statutes of limitations, or (ii) seven years after the Deconsolidation Date (such later date, the “Retention Date”). After the Retention Date, each Company
may dispose of such Tax Records upon 90 days’ prior written notice to the other Company. If, prior to the Retention Date, a Company reasonably determines that any Tax Records which it would otherwise be required to preserve and keep under this
Section 9 are no longer material in the administration of any matter under the Code or other applicable Tax Law and the other Company agrees, then such first Company may dispose of such Tax Records upon 90 days’ prior notice to the other
Company. Any notice of an intent to dispose given pursuant to this Section 9.01 shall include a list of the Tax Records to be disposed of describing in reasonable detail the files, books, or other records being disposed. The notified Company
shall have the opportunity, at its cost and expense, to copy or remove, within such 90-day period, all or any part of such Tax Records, and the other Company will then dispose of the same Tax Records. If, at
any time prior to the Retention Date, a Company determines to decommission or otherwise discontinue any computer program or 

  
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information technology system used to access or store any Tax Records, then such Company may decommission or discontinue such program or system upon 90 days’ prior notice to the other
Company, and the other Company shall have the opportunity, at its cost and expense, to copy, within such 90-day period, all or any part of the underlying data relating to the Tax Records accessed by or stored
on such program or system. 
 Section 9.02 Access to Tax Records. The Companies and their respective
Affiliates shall make available to each other for inspection and copying during normal business hours upon reasonable notice all Tax Records (and, for the avoidance of doubt, any pertinent underlying data accessed or stored on any computer program
or information technology system) in their possession and shall permit the other Company and its Affiliates, authorized agents and representatives and any representative of a Tax Authority or other Tax auditor direct access during normal business
hours upon reasonable notice to any computer program or information technology system used to access or store any Tax Records, in each case, to the extent reasonably required by the other Company in connection with the preparation of Tax Returns or
financial accounting statements, audits, litigation, or the resolution of items under this Agreement. To the extent any Tax Records are required to be or are otherwise transferred by the Companies or their respective Affiliates to any Person other
than an Affiliate, the Company or its respective Affiliates shall transfer such records to the other Company at such time. 

Section 10. Tax Contests. 

Section 10.01 Notice. Each of the Companies shall provide prompt notice to the other Company of any written
communication from a Tax Authority regarding any pending or threatened Tax audit, assessment or proceeding or other Tax Contest of which it becomes aware related to Taxes for which it may be entitled to indemnification by the other Company
hereunder. Such notice shall include copies of the pertinent portion of any written communication from a Tax Authority and contain factual information (to the extent known) describing any asserted Tax liability in reasonable detail and shall be
accompanied by copies of any notice and other documents received from any Tax Authority in respect of any such matters. The failure of one Company to notify the other of such communication in accordance with the immediately preceding sentences shall
not relieve such other Company of any liability or obligation to pay such Tax or make indemnification payments under this Agreement, except to the extent that the failure timely to provide such notification actually prejudices the ability of such
other Company to contest such Tax liability or increases the amount of such Tax liability. 
 Section 10.02 Control of Tax Contests.

 (a) Separate Company Taxes. In the case of any Tax Contest with respect to any Separate Return (other than a Separate Return
of Other Taxes described in clause (II) of Section 5.02), the Company having liability for the Tax shall have exclusive control over the Tax Contest, including with respect to any settlement of such Tax liability, subject to Section
10.02(e) below. 
 (b) Parent Federal Consolidated Income Tax Return and Parent State Combined Income Tax Return. In the case of any
Tax Contest with respect to any Parent Federal Consolidated Income Tax Return or any Parent State Combined Income Tax Return, Parent shall have exclusive control over the Tax Contest, including with respect to any settlement of such Tax liability,
subject to Section 10.02(e)(i) below. 

  
 - 30 - 

 (c) Parent Foreign Combined Income Tax Return. In the case of any Tax Contest with respect
to any Parent Foreign Combined Income Tax Return, Parent shall have exclusive control over the Tax Contest, including with respect to any settlement of such Tax liability. 

(d) Joint Returns and Certain Other Returns. In the case of any Tax Contest with respect to (I) any Joint Return (other than any
Parent Federal Consolidated Income Tax Return, any Parent State Combined Income Tax Return or any Parent Foreign Combined Income Tax Return) or (II) any Return of Other Taxes described in clause (II) of Section 5.02, (i) Parent
shall control the defense or prosecution of the portion of the Tax Contest directly and exclusively related to any Parent Adjustment, including settlement of any such Parent Adjustment and (ii) SpinCo shall control the defense or prosecution of
the portion of the Tax Contest directly and exclusively related to any SpinCo Adjustment, including settlement of any such SpinCo Adjustment, and (iii) the Companies shall jointly control the defense or prosecution of Joint Adjustments and any
and all administrative matters not directly and exclusively related to any Parent Adjustment or SpinCo Adjustment. In the event of any disagreement regarding any matter described in clause (iii), the provisions of Section 14 of this Agreement
shall apply. 
 (e) Distribution-Related Tax Contests. 

(i) In the event of any Distribution-Related Tax Contest as a result of which SpinCo could reasonably be expected to become
liable for any Tax or Tax-Related Losses and which Parent has the right to administer and control pursuant to Section 10.02(a) or (b) above, (A) Parent shall consult with SpinCo reasonably in advance
of taking any significant action in connection with such Tax Contest, (B) Parent shall offer SpinCo a reasonable opportunity to comment before submitting any written materials prepared or furnished in connection with such Tax Contest,
(C) Parent shall defend such Tax Contest diligently and in good faith as if it were the only party in interest in connection with such Tax Contest, and (D) Parent shall provide SpinCo copies of any written materials relating to such Tax
Contest received from the relevant Tax Authority. Notwithstanding anything in the preceding sentence to the contrary, the final determination of the positions taken, including with respect to settlement or other disposition, in any
Distribution-Related Tax Contest shall be made in the sole discretion of Parent and shall be final and not subject to the dispute resolution provisions of Article VII of the Separation and Distribution Agreement. 

(ii) In the event of any Distribution-Related Tax Contest with respect to any SpinCo Separate Return, (A) SpinCo shall
consult with Parent reasonably in advance of taking any significant action in connection with such Tax Contest, (B) SpinCo shall consult with Parent and offer Parent a reasonable opportunity to comment before submitting any written materials
prepared or furnished in connection with such Tax Contest, (C) SpinCo shall defend such Tax Contest diligently and in good faith as if it were the only party in interest in connection with such Tax Contest, (D) Parent shall be entitled to
participate in such Tax Contest and receive copies of any written materials relating to such Tax Contest received from the relevant Tax Authority, and (E) SpinCo shall not settle, compromise or abandon any such Tax Contest without obtaining the
prior written consent of Parent, which consent shall not be unreasonably withheld. 
 (f) Power of Attorney. Each member of the
SpinCo Group shall execute and deliver to Parent (or such member of the Parent Group as Parent shall designate) any power of attorney or other similar document reasonably requested by Parent (or such designee) in connection with any Tax Contest (as
to which Parent is the Controlling Party) described in this Section 10. 

  
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 Section 11. Effective Date; Termination of Prior Intercompany Tax
Allocation Agreements. This Agreement shall be effective as of the Effective Time. As of the Effective Time, (i) all prior intercompany Tax allocation agreements or arrangements between one or more members of the Parent
Group, on the one hand, and one or more members of the SpinCo Group, on the other hand, shall be terminated, and (ii) amounts due under such agreements as of the date on which the Effective Time occurs shall be settled as of the Effective Time.
Upon such termination and settlement, no further payments by or to Parent or by or to SpinCo, with respect to such agreements shall be made, and all other rights and obligations resulting from such agreements between the Companies and their
Affiliates shall cease at such time. Any payments pursuant to such agreements shall be disregarded for purposes of computing amounts due under this Agreement; provided that to the extent appropriate, as determined by Parent, payments made
pursuant to such agreements shall be credited to SpinCo or Parent, respectively, in computing their respective obligations pursuant to this Agreement, in the event that such payments relate to a Tax liability that is the subject matter of this
Agreement for a Tax Period that is the subject matter of this Agreement. 
 Section 12. Survival of
Obligations. The representations, warranties, covenants and agreements set forth in this Agreement shall be unconditional and absolute and shall remain in effect without limitation as to time. 

Section 13. Treatment of Payments; Tax Gross-Up. 

Section 13.01 Treatment of Tax Indemnity and Tax Benefit Payments. In the absence of any change in Tax treatment
under the Code or other applicable Tax Law, for all Income Tax purposes, the Companies agree to treat, and to cause their respective Affiliates to treat, (i) any indemnity payment required by this Agreement or by the Separation and Distribution
Agreement as either a contribution by Parent to SpinCo or a distribution by SpinCo to Parent, as the case may be, occurring immediately prior to the Distribution; and (ii) any payment of interest or State Income Taxes by or to a Tax Authority,
as taxable or deductible, as the case may be, to the Company entitled under this Agreement to retain such payment or required under this Agreement to make such payment. 

Section 13.02 Tax Gross-Up. If notwithstanding the manner in which Tax
indemnity payments and Tax Benefit payments were reported, there is an adjustment to the Tax liability of a Company as a result of its receipt of a payment pursuant to this Agreement or the Separation and Distribution Agreement, such payment shall
be appropriately adjusted so that the amount of such payment, reduced by all Income Taxes payable with respect to the receipt thereof (but taking into account all correlative Tax Benefits resulting from the payment of such Income Taxes), shall equal
the amount of the payment which the Company receiving such payment would otherwise be entitled to receive. 

  
 - 32 - 

 Section 13.03 Interest Under This Agreement. Anything herein to the
contrary notwithstanding, to the extent one Company (“Indemnitor”) makes a payment of interest to another Company (“Indemnitee”) under this Agreement with respect to the period from the
date that the Indemnitee made a payment of Tax to a Tax Authority to the date that the Indemnitor reimbursed the Indemnitee for such Tax payment, the interest payment shall be treated as interest expense to the Indemnitor (deductible to the extent
provided by law) and as interest income by the Indemnitee (includible in income to the extent provided by law). The amount of the payment shall not be adjusted to take into account any associated Tax Benefit to the Indemnitor or increase in Tax to
the Indemnitee. 
 Section 14. Disagreements. The Companies desire that collaboration will continue between
them. Accordingly, they will try, and they will cause their respective Group members to try, to resolve in good faith all disagreements regarding their respective rights and obligations under this Agreement, including any amendments hereto. In
furtherance thereof, in the event of any dispute or disagreement (other than a High-Level Dispute) (a “Tax Advisor Dispute”) between any member of the Parent Group and any member of the SpinCo Group as to the
interpretation of any provision of this Agreement or the performance of obligations hereunder, the Companies shall negotiate in good faith to resolve the Tax Advisor Dispute. If, within thirty (30) business days, such good faith negotiations do
not resolve the Tax Advisor Dispute, then the matter will be referred to a Tax Advisor acceptable to each of the Companies. The Tax Advisor may, in its discretion, obtain the services of any third-party appraiser, accounting firm or consultant that
the Tax Advisor deems necessary to assist it in resolving such disagreement. The Tax Advisor shall furnish written notice to the Companies of its resolution of any such Tax Advisor Dispute as soon as practical, but in any event no later than 45 days
after its acceptance of the matter for resolution. Any such resolution by the Tax Advisor will be conclusive and binding on the Companies. Following receipt of the Tax Advisor’s written notice to the Companies of its resolution of the Tax
Advisor Dispute, the Companies shall each take or cause to be taken any action necessary to implement such resolution of the Tax Advisor. In accordance with Section 16, each Company shall pay its own fees and expenses (including the fees and
expenses of its representatives) incurred in connection with the referral of the matter to the Tax Advisor. All fees and expenses of the Tax Advisor in connection with such referral shall be shared equally by the Companies. Any High-Level Dispute
shall be resolved pursuant to the procedures set forth in Article VII of the Separation and Distribution Agreement; provided that each of the arbitrators selected in accordance with such Article VII must be Tax Advisors. Nothing in this
Section 14 will prevent either Company from seeking injunctive relief if any delay resulting from the efforts to resolve the Tax Advisor Dispute through the Tax Advisor (or any delay resulting from the efforts to resolve any High-Level Dispute
through the procedures set forth in Article VII of the Separation and Distribution Agreement, as modified by the proviso in the preceding sentence) could result in serious and irreparable injury to either Company. Notwithstanding anything to the
contrary in this Agreement, the Separation and Distribution Agreement or any Ancillary Agreement, Parent and SpinCo are the only members of their respective Group entitled to commence a dispute resolution procedure under this Agreement, and each of
Parent and SpinCo will cause its respective Group members not to commence any dispute resolution procedure other than through such party as provided in this Section 14. 

Section 15. Late Payments. Any amount owed by one party to another party under this Agreement which is not
paid when due shall bear interest at the Prime Rate plus two percent, 

  
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compounded semiannually, from the due date of the payment to the date paid. To the extent interest required to be paid under this Section 15 duplicates interest required to be paid under any
other provision of this Agreement, interest shall be computed at the higher of the interest rate provided under this Section 15 or the interest rate provided under such other provision. 

Section 16. Expenses. Except as otherwise provided in this Agreement, each party and its Affiliates 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. 

Section 17. General Provisions. 

Section 17.01 Addresses and Notices. All notices, requests, claims, demands or other communications under this
Agreement shall be in writing and shall be given or made (and shall be deemed to have been duly given or made upon receipt) by delivery in person, by overnight courier service, or by facsimile with receipt confirmed, to the respective parties
at the following addresses (or at such other address for a party as shall be specified in a notice given in accordance with this Section 17.01): 
  

					
		 	If to Parent:	  	with a copy to:
			
		 	Varian Medical Systems, Inc.	  	Wachtell, Lipton, Rosen & Katz
		 	3100 Hansen Way	  	51 West 52nd Street
		 	Palo Alto, California 94304	  	New York, New York 10019
		 	Attention: Director, Taxes	  	Attention:   David C. Karp
		 	Facsimile: (650) 424-5988	  	                   Ronald C. Chen
		 		  	Facsimile:   (212) 403-2000
			
		 	If to SpinCo:	  	with a copy to:
			
		 	Varex Imaging Corporation	  	Wachtell, Lipton, Rosen & Katz
		 	1678 S. Pioneer Road	  	51 West 52nd Street
		 	Salt Lake City, Utah 84104	  	New York, New York 10019
		 	Attention: Director, Taxes	  	Attention:   David C. Karp
		 	Facsimile: (801) 978-5772	  	                   Ronald C. Chen
		 		  	Facsimile:   (212) 403-2000

 A party may, by notice to the other party, change the address to which such notices are to be given. 

Section 17.02 Counterparts; Entire Agreement; Corporate Power. 

(a) This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement, and shall
become effective when one or more counterparts have been signed by each of the parties and delivered to the other party. 
 (b) This
Agreement and the exhibits, schedules and appendices hereto, contain the entire agreement between the parties with respect to the subject matter hereof and supersede all 

  
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previous agreements, negotiations, discussions, writings, understandings, commitments and conversations with respect to such subject matter. In the event of any inconsistency between this
Agreement and the Separation and Distribution Agreement, or any other agreements relating to the transactions contemplated by the Separation and Distribution Agreement, with respect to matters addressed herein, the provisions of this Agreement shall
control. 
 (c) Parent represents on behalf of itself and each other member of the Parent Group, and SpinCo represents on behalf of
itself and each other member of the SpinCo Group, as follows: 
 (i) each such Person has the requisite corporate or other
power and authority and has taken all corporate or other action necessary in order to execute, deliver and perform this Agreement and to consummate the transactions contemplated hereby; and 

(ii) this Agreement has been duly executed and delivered by it and constitutes a valid and binding agreement of it enforceable
in accordance with the terms thereof. 
 (d) Each party acknowledges that it and each other party may execute this Agreement by
facsimile, stamp or mechanical signature, and that deliver of an executed counterpart of a signature page to this Agreement (whether executed by manual, stamp or mechanical signature) by facsimile or by email in portable document format (PDF) shall
be effective as delivery of such executed counterpart of this Agreement. Each party expressly adopts and confirms each such facsimile, stamp or mechanical signature (regardless of whether delivered in person, by mail, by courier, by facsimile or by
email in portable document format (PDF)) made in its respective name as if it were a manual signature delivered in person, agrees that it will not assert that any such signature or delivery is not adequate to bind such party to the same extent as if
it were signed manually and delivered in person and agrees that, at the reasonable request of the other party at any time, it will as promptly and reasonably practicable cause this Agreement to be manually executed (any such execution to be as of
the date of the initial date thereof) and delivered in person, by mail or by courier. 
 Section 17.03
Waiver. Waiver by a party of any default by the other party of any provision of this Agreement shall not be deemed a waiver by the waiving party of any subsequent or other default, nor shall it prejudice the rights of the other party. No
failure or delay by a party in exercising any right, power or privilege under this Agreement shall operate as a waiver thereof, nor shall a single or partial exercise thereof prejudice any other or further exercise of any other right, power or
privilege. 
 Section 17.04 Severability. If any provision of this Agreement or the application thereof to
any Person or circumstance is determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions hereof, or the application of such provision to Persons or circumstances or in jurisdictions other than
those as to which it has been held invalid or unenforceable, shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby. Upon such determination, the parties shall negotiate in good faith in an effort to
agree upon such a suitable and equitable provision to effect the original intent of the parties. 

  
 - 35 - 

 Section 17.05 Assignability. This Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns; provided, however, no such party hereto may assign its rights or delegate its obligations under this Agreement without the express prior
written consent of the other parties hereto. Notwithstanding the foregoing, no such consent shall be required for the assignment of a party’s rights and obligations under this Agreement in whole in connection with a change of control of a party
so long as the resulting, surviving or transferee person assumes all the obligations of the relevant party hereto by operation of Law or pursuant to an agreement in form and substance reasonably satisfactory to the other party. 

Section 17.06 Further Action. The parties shall execute and deliver all documents, provide all information,
and take or refrain from taking action as may be necessary or appropriate to achieve the purposes of this Agreement, including the execution and delivery to the other parties and their Affiliates and representatives of such powers of attorney or
other authorizing documentation as is reasonably necessary or appropriate in connection with Tax Contests (or portions thereof) under the control of such other parties in accordance with Section 10. 

Section 17.07 Integration. The provisions of this Agreement are solely for the benefit of the parties and are not
intended to confer upon any Person except the parties any rights or remedies hereunder, and there are no third-party beneficiaries of this Agreement and this Agreement shall not provide any third person with any remedy, claim, liability,
reimbursement, claim of action or other right in excess of those existing without reference to this Agreement. 

Section 17.08 Headings. The article, section and paragraph headings contained in this Agreement are for reference
purposes only and shall not affect in any way the meaning or interpretation of this Agreement. 
 Section 17.09
Governing Law. This Agreement (and any claims or disputes arising out of or related hereto or to the transactions contemplated hereby or to the inducement of any party to enter herein, whether for breach of contract, tortious conduct or
otherwise and whether predicated on common law, statute or otherwise) shall be governed by and construed and interpreted in accordance with the Laws of the State of Delaware irrespective of the choice of laws principles of the State of Delaware
including all matters of validity, construction, effect, enforceability, performance and remedies. 
 Section 17.10
Amendment. No provisions of this Agreement shall be deemed waived, amended, supplemented or modified by a party, unless such waiver, amendment, supplement or modification is in writing and signed by the authorized representative of the
party against whom it is sought to enforce such waiver, amendment, supplement or modification. 
 Section 17.11 SpinCo
Subsidiaries. If, at any time, SpinCo acquires or creates one or more subsidiaries that are includable in the SpinCo Group, they shall be subject to this Agreement and all references to the SpinCo Group herein shall thereafter include a
reference to such subsidiaries. 
 Section 17.12 Successors. This Agreement shall be binding on and inure to the
benefit of any successor by merger, acquisition of assets, or otherwise, to any of the parties hereto 

  
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(including but not limited to any successor of Parent or SpinCo succeeding to the Tax attributes of either under Section 381 of the Code), to the same extent as if such successor had been an
original party to this Agreement. 
 Section 17.13 Specific Performance. Subject to the provisions of
Section 14, 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 parties who are, or are to be, thereby aggrieved shall have the right to specific
performance and injunctive or other equitable relief in respect of its or their rights under this Agreement, in addition to any 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 by each of the parties. 

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

			
	 VARIAN MEDICAL SYSTEMS, INC.

		
	By:	 	 /s/ John W. Kuo

	Name:	 	John W. Kuo
	Title:	 	Senior Vice President, General Counsel and Corporate Secretary
	
	VAREX IMAGING CORPORATION
		
	By:	 	 /s/ Kimberley E. Honeysett

	Name:	 	Kimberley E. Honeysett
	Title:	 	Senior Vice President, General Counsel and Corporate Secretary

 [Signature Page to Tax Matters Agreement]EX-10.3

 Exhibit 10.3 

EXECUTION VERSION 

EMPLOYEE MATTERS AGREEMENT 
 BY
AND BETWEEN 
 VARIAN MEDICAL SYSTEMS, INC. 

AND 
 VAREX IMAGING CORPORATION

 DATED AS OF JANUARY 27, 2017 

 TABLE OF CONTENTS 

 

									
	 ARTICLE I DEFINITIONS
	  	 	1	  
				
	 Section 1.01.
	 		  	Definitions	  	 	1	  
	 Section 1.02.
	 		  	Interpretation	  	 	5	  
		
	 ARTICLE II GENERAL PRINCIPLES FOR ALLOCATION OF LIABILITIES
	  	 	6	  
				
	 Section 2.01.
	 		  	General Principles	  	 	6	  
	 Section 2.02.
	 		  	Service Credit	  	 	7	  
	 Section 2.03.
	 		  	Adoption and Transfer and Assumption of Benefit Plans	  	 	7	  
	 Section 2.04.
	 		  	Individual Agreements	  	 	8	  
	 Section 2.05.
	 		  	Collective Bargaining	  	 	9	  
	 Section 2.06.
	 		  	Non-U.S. Regulatory Compliance	  	 	9	  
		
	 ARTICLE III ASSIGNMENT OF EMPLOYEES
	  	 	9	  
				
	 Section 3.01.
	 		  	Assignment and Transfer of Employees	  	 	9	  
	 Section 3.02.
	 		  	At-Will Status	  	 	9	  
	 Section 3.03.
	 		  	Severance	  	 	10	  
	 Section 3.04.
	 		  	Not a Change in Control	  	 	10	  
		
	 ARTICLE IV EQUITY, INCENTIVE AND EXECUTIVE COMPENSATION
	  	 	10	  
				
	 Section 4.01.
	 		  	Generally	  	 	10	  
	 Section 4.02.
	 		  	Equity Incentive Awards	  	 	10	  
	 Section 4.03.
	 		  	Employee Stock Purchase Plan	  	 	14	  
	 Section 4.04.
	 		  	Non-Equity Incentive Plans	  	 	14	  
	 Section 4.05.
	 		  	Director Compensation	  	 	15	  
		
	 ARTICLE V RETIREMENT PLANS
	  	 	15	  
				
	 Section 5.01.
	 		  	Establishment of Plan	  	 	15	  
	 Section 5.02.
	 		  	Rollover of Account Balances	  	 	16	  
	 Section 5.03.
	 		  	Plan Fiduciaries	  	 	16	  
		
	 ARTICLE VI NONQUALIFIED DEFERRED COMPENSATION PLANS
	  	 	16	  
				
	 Section 6.01.
	 		  	Generally	  	 	16	  
	 Section 6.02.
	 		  	Participant Elections	  	 	17	  
	 Section 6.03.
	 		  	Participation; Distributions	  	 	17	  
		
	 ARTICLE VII WELFARE BENEFIT PLANS
	  	 	17	  
				
	 Section 7.01.
	 		  	Welfare Plans	  	 	17	  
	 Section 7.02.
	 		  	COBRA and HIPAA	  	 	18	  
	 Section 7.03.
	 		  	Vacation, Holidays and Leaves of Absence	  	 	19	  

  
 -i- 

									
	 Section 7.04.
	 		  	Severance and Unemployment Compensation	  	 	19	  
	 Section 7.05.
	 		  	Workers’ Compensation	  	 	19	  
	 Section 7.06.
	 		  	Insurance Contracts	  	 	19	  
	 Section 7.07.
	 		  	Third-Party Vendors	  	 	19	  
		
	 ARTICLE VIII NON-U.S. EMPLOYEES
	  	 	20	  
		
	 ARTICLE IX MISCELLANEOUS
	  	 	20	  
				
	 Section 9.01.
	 		  	Information Sharing and Access	  	 	20	  
	 Section 9.02.
	 		  	Preservation of Rights to Amend	  	 	21	  
	 Section 9.03.
	 		  	Fiduciary Matters	  	 	21	  
	 Section 9.04.
	 		  	Further Assurances	  	 	21	  
	 Section 9.05.
	 		  	Counterparts; Entire Agreement; Corporate Power	  	 	22	  
	 Section 9.06.
	 		  	Governing Law	  	 	22	  
	 Section 9.07.
	 		  	Assignability	  	 	23	  
	 Section 9.08.
	 		  	Third-Party Beneficiaries	  	 	23	  
	 Section 9.09.
	 		  	Notices	  	 	23	  
	 Section 9.10.
	 		  	Severability	  	 	24	  
	 Section 9.11.
	 		  	Force Majeure	  	 	25	  
	 Section 9.12.
	 		  	Headings	  	 	25	  
	 Section 9.13.
	 		  	Survival of Covenants	  	 	25	  
	 Section 9.14.
	 		  	Waivers of Default	  	 	25	  
	 Section 9.15.
	 		  	Dispute Resolution	  	 	25	  
	 Section 9.16.
	 		  	Specific Performance	  	 	25	  
	 Section 9.17.
	 		  	Amendments	  	 	25	  
	 Section 9.18.
	 		  	Interpretation	  	 	26	  
	 Section 9.19.
	 		  	Limitations of Liability	  	 	26	  
	 Section 9.20.
	 		  	Mutual Drafting	  	 	26	  

  
 -ii- 

 EMPLOYEE MATTERS AGREEMENT 

This EMPLOYEE MATTERS AGREEMENT, dated as of January 27, 2017 (this “Agreement”), is by and between Varian Medical
Systems, Inc. a Delaware corporation (“Parent”), and Varex Imaging Corporation, a Delaware corporation (“Varex”). 

R E C I T A L S: 
 WHEREAS, the
board of directors of Parent (the “Parent Board”) has determined that it is in the best interests of Parent and its stockholders to create a new publicly traded company that shall operate the Varex Business; 

WHEREAS, in furtherance of the foregoing, the Parent Board has determined that it is appropriate and desirable to separate the Varex Business
from the Parent Business (the “Separation”) and, following the Separation, to make a distribution, on a pro rata basis, to holders of Parent Shares on the Record Date of all of the outstanding Varex Shares owned by Parent (the
“Distribution”); 
 WHEREAS, in order to effectuate the Separation and Distribution, Parent and Varex have entered into a
Separation and Distribution Agreement, dated as of January 27, 2017 (the “Separation and Distribution Agreement”); 

WHEREAS, in addition to the matters addressed by the Separation and Distribution Agreement, the Parties desire to enter into this Agreement to
set forth the terms and conditions of certain employment, compensation and benefit matters; and 
 WHEREAS, the Parties acknowledge that
this Agreement, the Separation and Distribution Agreement and the Ancillary Agreements represent the integrated agreement of Parent and Varex relating to the Separation and Distribution, are being entered into together and would not have been
entered into independently. 
 NOW, THEREFORE, in consideration of the mutual agreements, provisions and covenants contained in this
Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby agree as follows: 

ARTICLE I 
 DEFINITIONS 

Section 1.01. Definitions. For purposes of this Agreement, the following terms shall have the meanings set forth below. Any terms
that are capitalized but not otherwise defined herein shall have the respective meanings assigned to them in the Separation and Distribution Agreement. 

“Adjusted Varex Stock Value” shall mean the product of (a) the Varex Stock Value, multiplied by (b) the
Distribution Ratio. 

 “Agreement” shall have the meaning set forth in the Preamble to this Agreement
and shall include all Schedules hereto and all amendments, modifications, and changes hereto entered into pursuant to Section 9.17. 

“Benefit Plan” shall mean any contract, agreement, policy, practice, program, plan, trust, commitment or arrangement
providing for benefits, perquisites or compensation of any nature from an employer to any Employee, or to any family member, dependent, or beneficiary of any such Employee, including cash or deferred arrangement plans, profit sharing plans,
post-employment programs, pension plans, thrift plans, supplemental pension plans, welfare plans, stock option, stock purchase, stock appreciation rights, restricted stock, restricted stock units, performance stock units, other equity-based
compensation and contracts, agreements, policies, practices, programs, plans, trusts, commitments and arrangements providing for terms of employment, fringe benefits, severance benefits, change in control protections or benefits, travel and
accident, life, accidental death and dismemberment, disability and accident insurance, tuition reimbursement, adoption assistance, travel reimbursement, vacation, sick, personal or bereavement days, leaves of absences and holidays; provided,
however, that the term “Benefit Plan” does not include any government-sponsored benefits, such as workers’ compensation, unemployment or any similar plans, programs or policies or Individual Agreements. 

“COBRA” shall mean the U.S. Consolidated Omnibus Budget Reconciliation Act of 1985, as codified at Section 601 et
seq. of ERISA and at Section 4980B of the Code. 
 “Distribution” shall have the meaning set forth in the
Recitals. 
 “Employee” shall mean any Parent Employee or Varex Employee. 

“ERISA” shall mean the U.S. Employee Retirement Income Security Act of 1974, as amended, and the regulations promulgated
thereunder. 
 “Former Employee” shall mean any individual who is a former employee of the Parent Group as of immediately
prior to the Effective Time. 
 “HIPAA” shall mean the U.S. Health Insurance Portability and Accountability Act of 1996, as
amended, and the regulations promulgated thereunder. 
 “Individual Agreement” shall mean any individual
(a) employment contract, (b) retention, severance or change in control agreement, (c) expatriate (including any international assignee) contract or agreement (including agreements and obligations regarding repatriation, relocation,
equalization of Taxes and living standards in the host country), or (d) other agreement containing restrictive covenants (including confidentiality, non-competition and non-solicitation provisions) between a member of the Parent Group and a
Varex Employee, as in effect immediately prior to the Effective Time. 
 “IRS” shall mean the U.S. Internal Revenue
Service. 
 “Parent” shall have the meaning set forth in the Preamble. 

“Parent 401(k) Plan” shall mean the Varian Medical Systems, Inc. Retirement Plan. 

  
 -2- 

 “Parent Awards” shall mean Parent Option Awards, Parent RSU Awards and Parent
PSU Awards, collectively. 
 “Parent Benefit Plan” shall mean any Benefit Plan established, sponsored or maintained by
Parent or any of its Subsidiaries immediately prior to the Effective Time including any Parent Retained Qualified Plan, but excluding any Varex Benefit Plan. 

“Parent Compensation Committee” shall mean the Compensation Committee of the Parent Board. 

“Parent Deferred Compensation Plans” shall mean the Varian Medical Systems, Inc. 2005 Deferred Compensation Plan, as amended,
and the Varian Medical Systems, Inc. Deferred Compensation Plan, as amended. 
 “Parent Employees” shall have the meaning
set forth in Section 3.01. 
 “Parent ESPP” shall mean the Parent Employee Stock Purchase Plan, as in effect
from time to time. 
 “Parent Non-Equity Incentive Plans” shall mean the corporate non-equity incentive plans of the Parent
Group. 
 “Parent Omnibus Plan” shall mean the Third Amended and Restated Varian Medical Systems, Inc. 2005 Omnibus Stock
Plan, as amended from time to time. 
 “Parent Option Award” shall mean an award of options to purchase Parent Shares
granted pursuant to a Parent Omnibus Plan that is outstanding as of immediately prior to the Effective Time. 
 “Parent PSU
Award” shall mean a performance stock unit award granted pursuant to the Parent Omnibus Plan that is outstanding as of immediately prior to the Effective Time. 

“Parent Ratio” shall mean the quotient obtained by dividing (a) the Pre-Separation Parent Stock Value by (b) the
Post-Separation Parent Stock Value. 
 “Parent Retained Qualified Plans” shall have the meaning set forth in
Section 5.02(a). 
 “Parent RSU Award” shall mean an award of time-based restricted stock units or deferred
stock units granted pursuant to a Parent Omnibus Plan that is outstanding as of immediately prior to the Effective Time. 
 “Parent
Welfare Plan” shall mean any Parent Benefit Plan which is a Welfare Plan. 
 “Parties” shall mean the parties to
this Agreement. 

  
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 “Post-Separation Parent Awards” shall mean Post-Separation Parent Option Awards,
Post-Separation Parent RSU Awards and Post-Separation Parent PSU Awards, collectively. 
 “Post-Separation Parent Option
Award” shall mean a Parent Option Award adjusted as of the Effective Time in accordance with Section 4.02(a). 

“Post-Separation Parent PSU Award” shall mean a Parent PSU Award adjusted as of the Effective Time in accordance with
Section 4.02(c). 
 “Post-Separation Parent RSU Award” shall mean a Parent RSU Award as adjusted as of the
Effective Time in accordance with Section 4.02(b). 
 “Post-Separation Parent Stock Value” shall mean the
simple average of the closing per-share price of Parent Shares trading on the NYSE for each of the first five (5) full Trading Sessions immediately after the Effective Time. 

“Pre-Separation Parent Stock Value” shall mean the closing per-share price of Parent Shares trading “regular way with
due bills” on the NYSE as of the last Trading Session prior to the Effective Time. 
 “Pre-Separation Parent Supplemental
Unemployment Benefit Pay Plan and Trust” shall mean the Parent Supplemental Unemployment Benefit Pay Plan and Trust, as such plan and trust are in effect immediately prior to the Effective Time. 

“Separation” shall have the meaning set forth in the Recitals. 

“Separation and Distribution Agreement” shall have the meaning set forth in the Recitals to this Agreement. 

“Varex” shall have the meaning set forth in the Preamble. 

“Varex 401(k) Plan” shall mean the Varex Imaging Corporation 401(k) Retirement Plan, established by Varex pursuant to
Section 5.03(b). 
 “Varex Awards” shall mean Varex Option Awards and Varex RSU Awards, collectively. 

“Varex Benefit Plan” shall mean any Benefit Plan established, sponsored, maintained or contributed to by a member of the
Varex Group as of or after the Effective Time, including any Varex Retained Qualified Plan and any Benefit Plans assumed or adopted by Varex pursuant to Section 2.03(a) and Section 2.03(b). 

“Varex Board” shall mean the Board of Directors of Varex. 

“Varex Deferred Compensation Plans” shall mean the Varex Imaging Corporation 2016 Deferred Compensation Plan and the Varex
Imaging Corporation Frozen Deferred Compensation Plan, in each case, as adopted by Varex pursuant to Section 6.01(a). 

  
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 “Varex Employees” shall have the meaning set forth in Section 3.01.

 “Varex Omnibus Plan” shall mean the Varex 2016 Omnibus Stock Plan, as established by Varex as of the Effective Time
pursuant to Section 4.01. 
 “Varex Option Award” shall mean an award of options to purchase Varex Shares
assumed by Varex pursuant to the Varex Omnibus Plan in accordance with Section 4.02(a). 
 “Varex Ratio” shall
mean the quotient obtained by dividing (a) the Pre-Separation Parent Stock Value by (b) the Varex Stock Value. 
 “Varex
Retained Qualified Plans” shall have the meaning set forth in Section 5.02(b). 
 “Varex RSU Award”
shall mean an award of time-based restricted stock units or deferred stock units assumed pursuant to the Varex Omnibus Plan in accordance with Section 4.02(b). 

“Varex Stock Value” shall mean the simple average of the closing per-share price of Varex Shares trading on Nasdaq for each
of the first five (5) full Trading Sessions immediately after the Effective Time. 
 “Varex Welfare Plan” shall mean a
Welfare Plan established, sponsored, maintained or contributed to by any member of the Varex Group for the benefit of Varex Employees. 

“Tax” shall have the meaning set forth in the Tax Matters Agreement. 

“Trading Session” shall mean the period of time during any given calendar day, commencing with the determination of the
opening price on the NYSE (for Parent Shares) or Nasdaq (for Varex Shares) and ending with the determination of the closing price on the NYSE (for Parent Shares) or Nasdaq (for Varex Shares), in which trading in Parent Shares or Varex Shares (as
applicable) is permitted on the NYSE (for Parent Shares) or Nasdaq (for Varex Shares). 
 “Transferred Director” shall mean
each Varex non-employee director as of the Effective Time who served as a non-employee director on the Parent Board immediately prior to the Effective Time. 

“Welfare Plan” shall mean any “welfare plan” (as defined in Section 3(1) of ERISA) or a “cafeteria
plan” under Section 125 of the Code, and any benefits offered thereunder, and any other plan offering health benefits (including medical, prescription drug, dental, vision, mental health, substance abuse and retiree health), disability
benefits, or life, accidental death and dismemberment, and business travel insurance, pre-Tax premium conversion benefits, dependent care assistance programs, employee assistance programs, paid time-off programs, contribution funding toward a health
savings account, flexible spending accounts, supplemental unemployment benefits or severance. 
 Section 1.02. Interpretation.
Section 10.15 of the Separation and Distribution Agreement is hereby incorporated by reference. 

  
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 ARTICLE II 

GENERAL PRINCIPLES FOR ALLOCATION OF LIABILITIES 

Section 2.01. General Principles. 

(a) Acceptance and Assumption of Varex Liabilities. Except as otherwise provided by this Agreement, on or prior to the Effective Time,
but in any case prior to the Distribution, Varex and the applicable Varex Designees shall accept, assume and agree faithfully to perform, discharge and fulfill all of the following Liabilities in accordance with their respective terms (each of which
shall be considered a Varex Liability), regardless of when or where such Liabilities arose or arise, or whether the facts on which they are based occurred prior to or subsequent to the Effective Time, regardless of where or against whom such
Liabilities are asserted or determined (including any Liabilities arising out of claims made by Parent’s or Varex’s respective directors, officers, Employees, Former Employees, agents, Subsidiaries or Affiliates against any member of the
Parent Group or the Varex Group) or whether asserted or determined prior to the date hereof, and regardless of whether arising from or alleged to arise from negligence, recklessness, violation of Law, fraud or misrepresentation by any member of the
Parent Group or the Varex Group, or any of their respective directors, officers, Employees, Former Employees, agents, Subsidiaries or Affiliates: 

(i) any and all wages, salaries, incentive compensation, equity compensation, commissions, bonuses and any other employee compensation or
benefits payable to or on behalf of any Varex Employees after the Effective Time, without regard to when such wages, salaries, incentive compensation, equity compensation, commissions, bonuses or other employee compensation or benefits are or may
have been awarded or earned; 
 (ii) any and all Liabilities whatsoever with respect to claims under a Varex Benefit Plan, taking into
account the Varex Benefit Plan’s assumption of Liabilities with respect to Varex Employees that were originally the Liabilities of the corresponding Parent Benefit Plan with respect to periods prior to the Effective Time; and 

(iii) any and all Liabilities expressly assumed or retained by any member of the Varex Group pursuant to this Agreement. 

(b) Acceptance and Assumption of Parent Liabilities. Except as otherwise provided by this Agreement, on or prior to the Effective Time,
but in any case prior to the Distribution, Parent and certain members of the Parent Group designated by Parent shall accept, assume and agree faithfully to perform, discharge and fulfill all of the following Liabilities in accordance with their
respective terms (each of which shall be considered a Parent Liability), regardless of when or where such Liabilities arose or arise, or whether the facts on which they are based occurred prior to or subsequent to the Effective Time, regardless of
where or against whom such Liabilities are asserted or determined (including any Liabilities arising out of claims made by Parent’s or Varex’s respective directors, officers, Employees, Former Employees, agents, Subsidiaries or Affiliates
against any member of the Parent Group or the Varex Group) or whether asserted or determined prior to the date hereof, and regardless of whether arising from or alleged to arise from negligence, recklessness, violation of Law, fraud or
misrepresentation by any member of the Parent Group or the Varex Group, or any of their respective directors, officers, Employees, Former Employees, agents, Subsidiaries or Affiliates: 

  
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 (i) any and all wages, salaries, incentive compensation, equity compensation, commissions,
bonuses and any other employee compensation or benefits payable to or on behalf of any Parent Employees and Former Employees after the Effective Time, without regard to when such wages, salaries, incentive compensation, equity compensation,
commissions, bonuses or other employee compensation or benefits are or may have been awarded or earned; 
 (ii) any and all Liabilities
whatsoever with respect to claims under a Parent Benefit Plan, taking into account a corresponding Varex Benefit Plan’s assumption of Liabilities with respect to Varex Employees that were originally the Liabilities of such Parent Benefit Plan
with respect to periods prior to the Effective Time; and 
 (iii) any and all Liabilities expressly assumed or retained by any member of
the Parent Group pursuant to this Agreement. 
 (c) Unaddressed Liabilities. To the extent that this Agreement does not address
particular Liabilities under any Benefit Plan and the Parties later determine that they should be allocated in connection with the Distribution, the Parties shall agree in good faith on the allocation, taking into account the handling of comparable
Liabilities under this Agreement. 
 Section 2.02. Service Credit. As of the Effective Time, the Varex Benefit Plans shall, and
Varex shall cause each member of the Varex Group to, recognize for each Varex Employee who is employed immediately following the Effective Time by a member of the Varex Group full service with Parent or any of its Subsidiaries or predecessor
entities at or before the Effective Time, to the same extent that such service was recognized by Parent for similar purposes prior to the Effective Time as if such full service had been performed for a member of the Varex Group, for purposes of
eligibility, vesting and determination of level of benefits under any such Varex Benefit Plan. 
 Section 2.03. Adoption and
Transfer and Assumption of Benefit Plans. 
 (a) Adoption by Varex of Benefit Plans. As of no later than the Effective Time,
Varex shall adopt Benefit Plans (and related trusts, if applicable) as contemplated by, and in accordance with, the terms of this Agreement. 

(b) Plans Not Required to Be Adopted. With respect to any Benefit Plan not listed or otherwise addressed in this Agreement, the Parties
shall agree in good faith on the treatment of such plan taking into account the handling of any comparable plan under this Agreement and, notwithstanding that Varex shall not have an obligation to continue to maintain any such plan with respect to
the provision of future benefits from and after the Effective Time, Varex shall remain obligated to pay or provide any previously accrued or incurred benefits to the Varex Employees consistent with Section 2.01(a) of this Agreement. 

(c) Information and Operation. Each Party shall use its commercially reasonable efforts to provide the other Party with information
describing each Benefit Plan election made by an Employee or Former Employee that may have application to such Party’s 

  
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Benefit Plans from and after the Effective Time, and each Party shall use its commercially reasonable efforts to administer its Benefit Plans using those elections. Each Party shall, upon
reasonable request, use its commercially reasonable efforts to provide the other Party and the other Party’s respective Affiliates, agents, and vendors all information reasonably necessary to the other Party’s operation or administration
of its Benefit Plans. 
 (d) No Duplication or Acceleration of Benefits. Notwithstanding anything to the contrary in this Agreement,
the Separation and Distribution Agreement or any Ancillary Agreement, no participant in any Benefit Plan shall receive service credit or benefits to the extent that receipt of such service credit or benefits would result in duplication of benefits
provided to such participant by the corresponding Benefit Plan or any other plan, program or arrangement sponsored or maintained by a member of the Group that sponsors the corresponding Benefit Plan. Furthermore, unless expressly provided for in
this Agreement, the Separation and Distribution Agreement or in any Ancillary Agreement or required by applicable Law, no provision in this Agreement shall be construed to create any right to accelerate vesting distributions or entitlements under
any Benefit Plan sponsored or maintained by a member of the Parent Group or member of the Varex Group on the part of any Employee or Former Employee. 

(e) Transition Services. The Parties acknowledge that the Parent Group or the Varex Group may provide administrative services for
certain of the other Party’s compensation and benefit programs for a transitional period under the terms of the Transition Services Agreement. The Parties agree to enter into a business associate agreement (if required by HIPAA or other
applicable health information privacy Laws) in connection with such Transition Services Agreement. 
 (f) Beneficiaries. References
to Parent Employees, Varex Employees, Former Employees, and current and former non-employee directors of either Parent or Varex, shall be deemed to refer to their beneficiaries, dependents, survivors and alternate payees, as applicable. 

Section 2.04. Individual Agreements. 

(a) Assignment by Parent. To the extent necessary, Parent shall assign, or cause an applicable member of the Parent Group to assign, to
Varex or another member of the Varex Group, as designated by Varex, all Individual Agreements, with such assignment to be effective as of no later than the Effective Time; provided, however, that to the extent that assignment of any
such Individual Agreement is not permitted by the terms of such agreement or by applicable Law, effective as of the Effective Time, each member of the Varex Group shall be considered to be a successor to each member of the Parent Group for purposes
of, and a third-party beneficiary with respect to, such Individual Agreement, such that each member of the Varex Group shall enjoy all of the rights and benefits under such agreement (including rights and benefits as a third-party beneficiary), with
respect to the business operations of the Varex Group; provided, further, that in no event shall Parent be permitted to enforce any Individual Agreement (including any agreement containing non-competition or non-solicitation covenants)
against a Varex Employee for action taken in such individual’s capacity as a Varex Employee other than on behalf of Varex Group as requested by Varex Group in its capacity as a third-party beneficiary. 

  
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 (b) Assumption by Varex. Effective as of the Effective Time, Varex shall assume and honor
any individual agreement to which any Varex Employee is a party with any member of the Parent Group, including any Individual Agreement. 

Section 2.05. Collective Bargaining. No later than the Effective Time, to the extent necessary, Varex shall (a) assume all
collective bargaining agreements (including any national, sector or local collective bargaining agreement) that cover Varex Employees and the Liabilities arising under any such collective bargaining agreements, and (b) join any industrial,
employer or similar association or federation if membership is required for the relevant collective bargaining agreement to continue to apply. 

Section 2.06. Non-U.S. Regulatory Compliance. Parent shall have the authority to adjust the treatment described in this Agreement
with respect to Varex Employees who are located outside of the United States in order to ensure compliance with the applicable Laws or regulations of countries outside of the United States or to preserve the Tax benefits provided under local Tax Law
or regulation before the Distribution. 
 ARTICLE III 

ASSIGNMENT OF EMPLOYEES 

Section 3.01. Assignment and Transfer of Employees. Effective as of no later than the Effective Time and except as otherwise
agreed by the Parties, (a) the applicable member of the Parent Group shall have taken such actions as are necessary to ensure that each individual who is intended to be an employee of the Varex Group as of immediately after the Effective Time
(including any such individual who is not actively working as of the Effective Time as a result of an illness, injury or leave of absence approved by the Parent Human Resources department or otherwise taken in accordance with applicable Law)
(collectively, the “Varex Employees”) is employed by a member of the Varex Group as of immediately after the Effective Time, and (b) the applicable member of the Parent Group shall have taken such actions as are necessary to
ensure that each individual who is intended to be an employee of the Parent Group as of immediately after the Effective Time (including any such individual who is not actively working as of the Effective Time as a result of an illness, injury or
leave of absence approved by the Parent Human Resources department or otherwise taken in accordance with applicable Law) and any other individual employed by the Parent Group as of the Effective Time who is not a Varex Employee (collectively, the
“Parent Employees”) is employed by a member of the Parent Group as of immediately after the Effective Time. Each of the Parties agrees to execute, and to seek to have the applicable Employees execute, such documentation, if any, as
may be necessary to reflect such assignment and/or transfer. 
 Section 3.02. At-Will Status. Nothing in this Agreement
shall create any obligation on the part of any member of the Parent Group or any member of the Varex Group to (a) continue the employment of any Employee or permit the return from a leave of absence for any period after the date of this
Agreement (except as required by applicable Law) or (b) change the employment status of any Employee from “at-will,” to the extent that such Employee is an “at-will” employee under applicable Law. 

  
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 Section 3.03. Severance. The Parties acknowledge and agree that, except as
required by applicable Law, the Separation, Distribution and the assignment, transfer or continuation of the employment of Employees as contemplated by this Section 3.03 shall not be deemed an involuntary termination of employment
entitling any Varex Employee or Parent Employee to severance payments or benefits. 
 Section 3.04. Not a Change in
Control. The Parties acknowledge and agree that neither the consummation of the Separation, Distribution nor any transaction contemplated by this Agreement, the Separation and Distribution Agreement or any other Ancillary Agreement shall
be deemed a “change in control,” “change of control,” or term of similar import for purposes of any Benefit Plan sponsored or maintained by any member of the Parent Group or member of the Varex Group. 

ARTICLE IV 
 EQUITY, INCENTIVE AND
EXECUTIVE COMPENSATION 
 Section 4.01. Generally. Each Parent Award that is outstanding as of immediately prior to the
Effective Time shall be adjusted as described below; provided, however, effective immediately prior to the Effective Time, the Parent Compensation Committee may provide for different adjustments with respect to some or all Parent
Awards to the extent that the Parent Compensation Committee deems such adjustments necessary and appropriate. Any adjustments made by the Parent Compensation Committee pursuant to the foregoing sentence shall be deemed incorporated by reference
herein as if fully set forth below and shall be binding on the Parties and their respective Affiliates. Before the Effective Time, the Varex Omnibus Plan shall be established, with such terms as are necessary to permit the implementation of the
provisions of Section 4.02. 
 Section 4.02. Equity Incentive Awards. 

(a) Option Awards. Each Parent Option Award that is outstanding as of immediately prior to the Effective Time shall be treated as
follows: 
 (i) Parent Employees, Former Employees and Directors. If the holder is a Parent Employee, Former Employee or a
non-employee director of Parent (other than a Transferred Director), such award shall be converted, as of the Effective Time, into a Post-Separation Parent Option Award and shall, except as otherwise provided in this Section 4.02, be
subject to the same terms and conditions (including with respect to vesting and expiration) after the Effective Time as were applicable to such Parent Option Award immediately prior to the Effective Time; provided, however, that from
and after the Effective Time: 
 (A) the number of Parent Shares subject to such Post-Separation Parent Option Award shall be equal to the
product, rounded down to the nearest whole share, of (I) the number of Parent Shares subject to the corresponding Parent Option Award immediately prior to the Effective Time, multiplied by (II) the Parent Ratio; and 

(B) the per share exercise price of such Post-Separation Parent Option Award shall be equal to the quotient, rounded up to the nearest cent,
of (I) the per share exercise price of the corresponding Parent Option Award immediately prior to the Effective Time, divided by (II) the Parent Ratio. 

  
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 Notwithstanding anything to the contrary in this Section 4.02(a)(i), the exercise price, the number
of Parent Shares subject to each Post-Separation Parent Option Award and the terms and conditions of exercise of such options shall be determined in a manner consistent with the requirements of Section 409A of the Code. 

(ii) Varex Employees and Directors. If the holder is a Varex Employee or a Transferred Director, such award shall be converted,
as of the Effective Time, into a Varex Option Award and shall, except as otherwise provided in this Section 4.02, be subject to the same terms and conditions (including with respect to vesting and expiration) after the Effective Time as
were applicable to such Parent Option Award immediately prior to the Effective Time; provided, however, that from and after the Effective Time: 

(A) the number of Parent Shares subject to such Varex Option Award shall be equal to the product, rounded down to the nearest whole share, of
(I) the number of Parent Shares subject to the corresponding Parent Option Award immediately prior to the Effective Time, multiplied by (II) the Varex Ratio; and 

(B) the per share exercise price of such Varex Option Award shall be equal to the quotient, rounded up to the nearest cent, of (I) the
per share exercise price of the corresponding Parent Option Award immediately prior to the Effective Time, divided by (II) the Varex Ratio. 

Notwithstanding anything to the contrary in this Section 4.02(a)(ii), the exercise price, the number of Varex Shares subject to each Varex Option
Award and the terms and conditions of exercise of such options shall be determined in a manner consistent with the requirements of Section 409A of the Code. 

(b) RSU Awards. Each Parent RSU Award that is outstanding as of immediately prior to the Effective Time shall be treated as follows:

 (i) Parent Employees, Former Employees and Directors. If the holder is a Parent Employee, Former Employee or a
non-employee director of Parent (other than a Transferred Director), such award shall be converted, as of the Effective Time, into a Post-Separation Parent RSU Award, and shall, except as otherwise provided in this Section 4.02, be
subject to the same terms and conditions (including with respect to vesting) after the Effective Time as were applicable to such Parent RSU Award as of immediately prior to the Effective Time; provided, however, that from and after the
Effective Time, the number of Parent Shares subject to such Post-Separation Parent RSU Award shall be equal to the product, rounded to the nearest whole share, of (A) the number of Parent Shares subject to the corresponding Parent RSU Share
Award as of immediately prior to the Effective Time, multiplied by (B) the Parent Ratio. 
 (ii) Varex Employees and
Directors. If the holder is a Varex Employee or a Transferred Director, such award shall be converted, as of the Effective Time, into a Varex RSU Award, and shall, except as otherwise provided in this Section 4.02, be subject to
the same terms and conditions (including with respect to vesting) after the Effective Time as were 

  
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applicable to such Parent RSU Award as of immediately prior to the Effective Time; provided, however, that from and after the Effective Time, the number of Varex Shares subject to
such Varex RSU Award shall be equal to the product, rounded to the nearest whole share, of (A) the number of Parent Shares subject to the corresponding Parent RSU Award as of immediately prior to the Effective Time, multiplied by (B) the
Varex Ratio. 
 (c) PSU Awards. Each Parent PSU Award that is outstanding as of immediately prior to the Effective Time shall be
converted, as of the Effective Time, into a Post-Separation Parent PSU Award, and shall, except as otherwise provided in this Section 4.02 and the terms of the award agreement governing the applicable Parent PSU Award, be subject to the
same terms and conditions (including with respect to vesting) after the Effective Time as were applicable to such Parent PSU Award immediately prior to the Effective Time; provided, however, that from and after the Effective Time: 

(i) PSU Awards Held by Parent Employees. In the case of any Parent PSU Award held by a Parent Employee, the number of Parent
Shares subject to such Post-Separation Parent PSU Award shall be equal to the product, rounded to the nearest whole share, obtained by multiplying (A) the number of Parent Shares subject to the corresponding Parent PSU Award immediately prior
to the Effective Time by (B) the Parent Ratio. 
 (ii) PSU Awards (FY 2015-2017) Held by Varex Employees. In the case of
any Parent PSU Award with a fiscal year 2015-2017 performance period held by a Varex Employee, such award shall vest as of immediately prior to the Effective Time on the following terms: 

(A) satisfaction of the performance conditions applicable to such award related to (I) earnings per share shall be determined based on
actual performance as of September 30, 2016 and (II) total shareholder return shall be determined based on actual performance as of immediately prior to the Effective Time, in each case, with performance conditions adjusted to the extent
necessary to reflect a shortened performance period and as determined by the compensation committee of the Parent Board in its sole discretion; 

(B) the number of Parent Shares subject to such Parent PSU Award as of immediately prior to the Effective Time shall be deemed equal to the
product of (I) the number of Parent Shares that would have been payable pursuant to such Parent PSU Award based on the satisfaction of the performance conditions determined pursuant to the immediately preceding clause (A), multiplied by (II)
28/36; and 
 (C) such Parent PSU Award shall be settled as soon as practicable following the Effective Time with respect to the number of
Parent Shares equal to the product, rounded to the nearest whole share, of (I) the number of Parent Shares calculated pursuant to the immediately preceding clause (B), multiplied by (II) the Parent Ratio. 

(iii) PSU Awards (FY 2016-2018) Held by Varex Employees. Any Parent PSU Award with a fiscal year 2016-2018 performance period
held by a Varex Employee shall vest as of immediately prior to the Effective Time on the following terms: 

  
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 (A) satisfaction of the performance conditions applicable to such award related to
(I) earnings per share shall be determined based on actual performance as of September 30, 2016, (II) total shareholder return shall be determined based on actual performance as of immediately prior to the Effective Time and (III) in
the case of such Parent PSU Awards granted in February 2016, revenue shall be determined based on actual performance as of immediately prior to the Effective Time, in each case, with performance conditions adjusted to the extent necessary to reflect
a shortened performance period and as determined by the compensation committee of the Parent Board in its sole discretion; 
 (B) the
number of Parent Shares subject to such Parent PSU Award as of immediately prior to the Effective Time shall be deemed equal to the product of (I) the number of Parent Shares that would have been payable pursuant to such Parent PSU Award based
on the satisfaction of the performance conditions determined pursuant to the immediately preceding clause (A), multiplied by (II) (1) in the case of such Parent PSU Awards granted in November 2015, 16/36 or (2) in the case of such Parent
PSU Awards granted in February 2016, 13/33; and 
 (C) such Parent PSU Award shall be settled as soon as practicable following the
Effective Time with respect to the number of Parent Shares equal to the product, rounded to the nearest whole share, of (I) the number of Parent Shares calculated pursuant to the immediately preceding clause (B), multiplied by (II) the Parent
Ratio. 
 (d) Settlement; Tax Reporting and Withholding. 

(i) Except as otherwise provided in this Section 4.02(d), after the Effective Time, Post-Separation Parent Awards, regardless of
by whom held, shall be settled by Parent, and Varex Awards, regardless of by whom held, shall be settled by Varex. 
 (ii) Upon the
vesting, payment or settlement, as applicable, of Varex Awards, Varex shall be solely responsible for ensuring the satisfaction of all applicable Tax withholding requirements on behalf of each Varex Employee. Upon the vesting, payment or settlement,
as applicable, of Post-Separation Parent Awards, Parent shall be solely responsible for ensuring the satisfaction of all applicable Tax withholding requirements on behalf of each Parent Employee or Former Employee. Following the Effective Time,
Parent shall be responsible for all income Tax reporting in respect of Post-Separation Parent Awards held by Parent Employees, Former Employees and individuals who are or were Parent non-employee directors, and Varex shall be responsible for all
income Tax reporting in respect of Varex Awards held by Varex Employees and Transferred Directors. 
 (iii) Varex shall be responsible for
the settlement of cash dividends or dividend equivalents on any Varex RSU Award held by a Varex Employee or Transferred Director. Prior to the date any such settlement is due, Parent shall pay Varex in cash amounts required to settle any dividends
or dividend equivalents accrued prior to the Effective Time with respect to such Varex RSU Awards. Parent shall be responsible for the settlement of cash dividends or dividend equivalents on any Post-Separation Parent RSU Awards or Post-Separation
Parent PSU Awards held by Parent Employee, Former Employee or non-employee director of Parent. For the avoidance of doubt, the term “dividend equivalents” shall not include any dividend equivalents that are deemed reinvested in Varex
Shares or Parent Shares, consistent with the 

  
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practice with respect to the applicable award prior to the Separation, and Parent or Varex, as applicable, shall adjust the number of shares subject to the applicable Post-Separation Parent Award
or Varex Award, as applicable, to reflect such deemed reinvestment in the manner set forth in the applicable award agreement. 
 (e)
Cooperation. Each of the Parties shall establish an appropriate administration system in order to administer, in an orderly manner, (i) exercises of vested Post-Separation Parent Options and Varex Options, (ii) the vesting and
forfeiture of unvested Post-Separation Parent Awards and Varex Awards, and (iii) the withholding and reporting requirements with respect to all awards. Each of the Parties shall work together to unify and consolidate all indicative data and
payroll and employment information on regular timetables and make certain that each applicable Person’s data and records in respect of such awards are correct and updated on a timely basis. The foregoing shall include employment status and
information required for vesting and forfeiture of awards and Tax withholding/remittance, compliance with trading windows and compliance with the requirements of the Exchange Act and other applicable Laws. 

(f) Registration and Other Regulatory Requirements. Varex agrees to file Forms S-1, S-3 and S-8 registration statements with respect
to, and to cause to be registered pursuant to the Securities Act, the Varex Shares authorized for issuance under the Varex Omnibus Plan, as required pursuant to the Securities Act, not later than the Effective Time and in any event before the date
of issuance of any Varex Shares pursuant to the Varex Omnibus Plan. The Parties shall take such additional actions as are deemed necessary or advisable to effectuate the foregoing provisions of this Section 4.02(f), including compliance
with securities Laws and other legal requirements associated with equity compensation awards in affected non-U.S. jurisdictions. Parent agrees to facilitate the adoption and approval of the Varex Omnibus Plan consistent with the requirements of
Treasury Regulations Section 1.162-27(f)(4)(iii). 
 Section 4.03. Employee Stock Purchase Plan. The administrator of the
Parent ESPP shall take all actions necessary and appropriate to provide that all payroll deductions and other contributions of the participants in the Parent ESPP who are Varex Employees shall cease on or before the Distribution Date. 

Section 4.04. Non-Equity Incentive Plans. 

(a) Corporate Bonus Practices. 

(i) The Varex Group shall be responsible for determining all non-equity bonus awards that would otherwise be payable to Varex Employees for
any performance periods that are open when the Effective Time occurs. The Varex Group shall also determine for Varex Employees (A) the extent to which established performance criteria (as interpreted by the Varex Group, in its sole discretion)
have been met, and (B) the payment level for each Varex Employee. The Varex Group shall assume all Liabilities with respect to any such bonus awards payable to Varex Employees for any performance periods that are open when the Effective Time
occurs and thereafter, and no member of the Parent Group shall have any obligations with respect thereto. 

  
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 (ii) The Parent Group shall be responsible for determining all bonus awards that would otherwise
be payable under the Parent Non-Equity Incentive Plans to Parent Employees or Former Employees for any performance periods that are open when the Effective Time occurs. The Parent Group shall also determine for Parent Employees or Former Employees
(A) the extent to which established performance criteria (as interpreted by the Parent Group, in its sole discretion) have been met, and (B) the payment level for each Parent Employee or Former Employee. The Parent Group shall retain (or
assume as necessary) all Liabilities with respect to any such bonus awards payable to Parent Employees or Former Employees for any performance periods that are open when the Effective Time occurs and thereafter, and no member of the Varex Group
shall have any obligations with respect thereto. 
 (b) Parent Retained Bonus Plans. No later than the Effective Time, the Parent
Group shall continue to retain (or assume as necessary) any incentive plan for the exclusive benefit of Parent Employees and Former Employees, whether or not sponsored by the Parent Group, and, from and after the Effective Time, shall be solely
responsible for all Liabilities thereunder. 
 (c) Varex Retained Bonus Plans. No later than the Effective Time, the Varex Group
shall continue to retain (or assume as necessary) any incentive plan for the exclusive benefit of Varex Employees, whether or not sponsored by the Varex Group, and, from and after the Effective Time, shall be solely responsible for all Liabilities
thereunder. 
 Section 4.05. Director Compensation. Parent shall be responsible for the payment of any fees for service on the
Parent Board that are earned at, before, or after the Effective Time, and Varex shall not have any responsibility for any such payments except as otherwise provided in Article VI with respect to deferred compensation. With respect to any
Varex non-employee director, Varex shall be responsible for the payment of any fees for service on the Varex Board that are earned at any time after the Effective Time and Parent shall not have any responsibility for any such payments.
Notwithstanding the foregoing, Varex shall commence paying quarterly cash retainers to Varex non-employee directors in respect of the quarter in which the Effective Time occurs; provided that (a) if Parent has already paid such
quarter’s cash retainers to Parent non-employee directors prior to the Effective Time, then within thirty (30) days after the Distribution Date, Varex shall pay Parent an amount equal to the portion of such payment that is attributable to
Transferred Directors’ service to Varex after the Distribution Date (other than any amount that is subject to a deferral election and is credited or to be credited to any such director’s account under the Parent Deferred Compensation
Plans), and (b) if Parent has not yet paid such quarter’s cash retainers to Parent non-employee directors prior to the Effective Time, then within thirty (30) days after the Distribution Date, Parent shall pay Varex an amount equal to
the portion of such payment that is attributable to Transferred Directors’ service to Parent on and prior to the Distribution Date. 

ARTICLE V 
 RETIREMENT PLANS 

Section 5.01. Establishment of Plan. Effective on or before the Distribution Date, the Varex Board shall adopt and establish the
Varex 401(k) Plan and a related trust, which shall be intended to meet the qualification requirements of Section 401(a) of the Code (including under Sections 401(k) and (m) of the Code) including the safe-harbor requirements of
Section 

  
 -15- 

 
401(k)(12) of the Code. Varex may make such changes, modifications or amendments to the Varex 401(k) Plan as may be required by applicable Law or as are necessary and appropriate to reflect the
Separation or which result from vendor limitations. Before the Distribution Date, Varex shall provide Parent with (a) a copy of the Varex 401(k) Plan and related trust and applicable IRS volume submitter approval or other IRS favorable
determination letter with respect to the plan and (b) a copy of certified resolutions of the Varex Board (or its authorized committee or other delegate) evidencing adoption of the Varex 401(k) Plan and related trust and the obligations
described in Section 5.02. 
 Section 5.02. Rollover of Account Balances. Varex Employees shall be eligible to
participate in the Varex 401(k) Plan as of no later than the Effective Time to the extent that they were eligible to participate in the Parent 401(k) Plan as of immediately prior to the Effective Time. As soon as reasonably practicable following the
Distribution Date, Varex shall permit each Varex Employee to make contributions of “eligible rollover distributions” (within the meaning of Section 401(a)(31) of the Code) in the form of cash (or, in the case of loans, notes) in an
amount equal to the full account balance distributable to such Varex Employee from the Parent 401(k) Plan to the Varex 401(k) Plan. 

Section 5.03. Plan Fiduciaries. For all periods on and after the Effective Time, the Parties agree that the applicable fiduciaries
of each of the Parent 401(k) Plan and the Varex 401(k) Plan, respectively, shall have the authority with respect to the Parent 401(k) Plan and the Varex 401(k) Plan, respectively, to determine the investment alternatives, the terms and conditions
with respect to those investment alternatives and such other matters as are within the scope of their duties under ERISA and the terms of the applicable plan documents. 

ARTICLE VI 
 NONQUALIFIED DEFERRED
COMPENSATION PLANS 
 Section 6.01. Generally. 

(a) Establishment of the Deferred Compensation Plan. As of no later than the Effective Time, Varex shall establish the Varex Deferred
Compensation Plans and a related rabbi trust. 
 (b) Assumption of Assets and Liabilities from Varex. As of no later than the
Effective Time, Varex shall, and shall cause the Varex Deferred Compensation Plans to, assume all Assets and Liabilities under the Parent Deferred Compensation Plans related to the benefits of Varex Employees and Transferred Directors determined as
of immediately prior to the Effective Time, and the Parent Group and the Parent Deferred Compensation Plans shall be relieved of all Assets and Liabilities related to such benefits. Parent shall retain all Liabilities under the Parent Deferred
Compensation Plans for the benefits for Parent Employees, Former Employees, non-employee directors of Parent as of immediately following the Effective Time and former non-employee directors of Parent (other than the Transferred Directors). From and
after the Effective Time, Varex Employees and Transferred Directors shall cease to be participants in the Parent Deferred Compensation Plans. 

  
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 Section 6.02. Participant Elections. Any election made by a Varex Employee or
Transferred Director under the Parent Deferred Compensation Plans, including without limitation those with respect to compensation deferral, investments, optional forms of benefit, benefit commencement and beneficiaries, shall be recognized for the
same purposes under the Varex Deferred Compensation Plans. No new elections shall be permitted under the Parent Deferred Compensation Plans and Varex Deferred Compensation Plans as a result of the Separation. 

Section 6.03. Participation; Distributions. The Parties acknowledge that none of the transactions contemplated by this Agreement,
the Separation and Distribution Agreement or any Ancillary Agreement shall trigger a payment or distribution of compensation under any of the Parent Deferred Compensation Plans or Varex Deferred Compensation Plans for any participant and,
consequently, that the payment or distribution of any compensation to which such participant is entitled under any such plan shall occur upon such participant’s separation from service from the Parent Group or Varex Group or at such other time
as provided in the applicable deferred compensation plan or participant’s deferral election. 
 ARTICLE VII 

WELFARE BENEFIT PLANS 

Section 7.01. Welfare Plans. 

(a) Establishment of Varex Welfare Plans. The Parties acknowledge and agree that, as of December 31, 2016, the Varex Employees
ceased participation in the Parent Welfare Plans and, as of January 1, 2017, such employees commenced participation in the Varex Welfare Plans. Except as otherwise provided in this Article VII, no Varex Welfare Plan shall provide
coverage to any Parent Employee at any time or any Former Employee after the Effective Time, and no Parent Welfare Plan shall provide coverage to any Varex Employee after January 1, 2017. 

(b) Waiver of Conditions; Benefit Maximums. Varex has and shall continue to use commercially reasonable efforts to cause the Varex
Welfare Plans to: 
 (i) with respect to initial enrollment, waive (A) all limitations as to preexisting conditions, exclusions, and
service conditions with respect to participation and coverage requirements applicable to any Varex Employee, other than limitations that were in effect with respect to the Varex Employee under the applicable Parent Welfare Plan as of immediately
prior to January 1, 2017, and (B) any waiting period limitation or evidence of insurability requirement applicable to a Varex Employee other than limitations or requirements that were in effect with respect to such Varex Employee under the
applicable Parent Welfare Plans as of immediately prior to January 1, 2017; and 
 (ii) take into account (A) with respect to
aggregate annual, lifetime, or similar maximum benefits available under the Varex Welfare Plans, a Varex Employee’s prior claim experience under the Parent Welfare Plans and any Benefit Plan that provides leave benefits; and (B) any
eligible expenses incurred by a Varex Employee and his or her covered dependents during the portion of the plan year of the applicable Parent Welfare Plan ending as of January 1, 2017 to be taken into account under such Varex Welfare Plan for
purposes of satisfying all deductible, coinsurance, and maximum out-of-pocket requirements applicable to such Varex 

  
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Employee and his or her covered dependents for the applicable plan year to the same extent as such expenses were taken into account by Parent for similar purposes prior to January 1, 2017 as
if such amounts had been paid in accordance with such Varex Welfare Plan. 
 (c) Flexible Spending Accounts. The Parties acknowledge
and agree that, as of January 1, 2017, Varex established a flexible spending account benefit plan (the “Varex FSA”). Until March 31, 2017, Varex Employees shall be permitted to submit for reimbursement claims incurred in
respect of 2016 to the flexible spending account benefit plan maintained by Parent in respect of 2016 (the “Parent FSA”), which claims shall be eligible for reimbursement through such date in accordance with the terms of the Parent
FSA. As of March 31, 2017, any remaining balance in excess of $500 in an active Varex Employee’s account under the Parent FSA shall be transferred to the Varex FSA. 

(d) Allocation of Welfare Plan Assets and Liabilities. 

(i) Except as otherwise provided in this Article VII, effective as of the Effective Time, the Parent Group shall retain or
assume, as applicable, and be responsible for all Assets (including any insurance contracts, policies or other funding vehicles) and Liabilities relating to the Parent Welfare Plans, regardless of when arising, and the Varex Group shall retain or
assume, as applicable, and be responsible for all Assets (including any insurance contracts, policies or other funding vehicles) and Liabilities relating to the Varex Welfare Plans, regardless of when arising. 

(ii) For these purposes, a claim or Liability is deemed to be incurred: (A) with respect to medical, dental, vision and/or prescription
drug benefits, upon the rendering of health services giving rise to such claim or Liability; (B) with respect to life insurance, accidental death and dismemberment and business travel accident insurance, upon the occurrence of the event giving
rise to such claim or Liability; and (C) with respect to disability benefits, upon the date of an Employee’s disability, as determined by the disability benefit insurance carrier or claim administrator, giving rise to such claim or
Liability. 
 Section 7.02. COBRA and HIPAA. The Parent Group shall be responsible for complying with, and providing coverage
pursuant to, the health care continuation requirements of COBRA, and the corresponding provisions of the Parent Welfare Plans with respect to any Parent Employees or Former Employees (and their covered dependents) who incur a qualifying event under
COBRA before, as of, or after the Effective Time. Effective as of January 1, 2017, the Varex Group shall assume responsibility for complying with, and providing coverage pursuant to, the health care continuation requirements of COBRA, and the
corresponding provisions of the Varex Welfare Plans with respect to any Varex Employees (and their covered dependents) who incur a qualifying event or loss of coverage under the Varex Welfare Plans as of, or after January 1, 2017. For purposes
of this Section 7.02, any Former Employee who participated in the Varex Welfare Plans as of the date of such Former Employee’s qualifying event under COBRA shall be considered a Varex Employee. The Parties agree that the consummation of
the transactions contemplated by the Separation and Distribution Agreement shall not constitute a COBRA qualifying event for any purpose of COBRA. 

  
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 Section 7.03. Vacation, Holidays and Leaves of Absence. Effective as of no later than
the Effective Time, the Varex Group shall assume all Liabilities of the Varex Group with respect to vacation, holiday, annual leave or other leave of absence, and required payments related thereto, for each Varex Employee, unless otherwise required
by applicable Law. The Parent Group shall retain all Liabilities with respect to vacation, holiday, annual leave or other leave of absence, and required payments related thereto, for each Parent Employee. 

Section 7.04. Severance and Unemployment Compensation. As of the Effective Time, the Varex Group shall assume and be responsible
for any and all Liabilities relating to Varex Employees in respect of severance, unemployment compensation and supplemental unemployment benefits if the event giving rise to the Liability occurred on or after January 1, 2017. The Parent Group
shall retain or assume, as applicable, and be responsible for any and all Liabilities relating to Parent Employees and Former Employees in respect of severance, unemployment compensation and supplemental unemployment benefits, regardless of when
arising. For purposes of this Section 7.04, any Former Employee who is entitled to severance, unemployment compensation or supplemental unemployment benefits under a Varex Benefit Plan shall be considered a Varex Employee. 

Section 7.05. Workers’ Compensation. With respect to claims for workers’ compensation in the United States, (a) the
Varex Group shall be responsible for claims in respect of Varex Employees occurring at or after the Effective Time, and (b) the Parent Group shall be responsible for all claims in respect of Parent Employees and Former Employees, whether
occurring before, at or after the Effective Time, and claims in respect of Varex Employees occurring before the Effective Time. The treatment of workers’ compensation claims by Varex with respect to Parent insurance policies shall be governed
by Section 5.1 of the Separation and Distribution Agreement. 
 Section 7.06. Insurance Contracts. To the extent that any
Welfare Plan is funded through the purchase of an insurance contract or is subject to any stop loss contract, the Parties shall cooperate and use their commercially reasonable efforts to replicate such insurance contracts for Varex or Parent as
applicable (except to the extent that changes are required under applicable Law or filings by the respective insurers) and to maintain any pricing discounts or other preferential terms for both Parent and Varex for a reasonable term. Neither Party
shall be liable for failure to obtain such insurance contracts, pricing discounts, or other preferential terms for the other Party. Each Party shall be responsible for any additional premiums, charges, or administrative fees that such Party may
incur pursuant to this Section 7.06. 
 Section 7.07. Third-Party Vendors. Except as provided below, to the extent
that any Welfare Plan is administered by a third-party vendor, the Parties shall cooperate and use their commercially reasonable efforts to replicate any contract with such third-party vendor for Parent or Varex, as applicable and to maintain any
pricing discounts or other preferential terms for both Parent and Varex for a reasonable term. Neither Party shall be liable for failure to obtain such pricing discounts or other preferential terms for the other Party. Each Party shall be
responsible for any additional premiums, charges, or administrative fees that such Party may incur pursuant to this Section 7.07. 

  
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 ARTICLE VIII 

NON-U.S. EMPLOYEES 
 To the extent
commercially reasonable, Varex Employees who are residents outside of the United States or otherwise are subject to non-U.S. Law and their related benefits and Liabilities shall be treated in the same manner as the Varex Employees who are residents
of the United States and are not subject to non-U.S. Law. Notwithstanding anything in this Agreement to the contrary, all actions taken with respect to non-U.S. Employees or U.S. Employees working in non-U.S. jurisdictions shall be subject to and
accomplished in accordance with applicable Law consistent with the custom of the applicable jurisdictions. 
 ARTICLE IX 

MISCELLANEOUS 
 Section 9.01.
Information Sharing and Access. 
 (a) Sharing of Information. Subject to any limitations imposed by applicable Law, each of
Parent and Varex (acting directly or through members of the Parent Group or the Varex Group, respectively) shall provide to the other Party and its authorized agents and vendors all information necessary (including information for purposes of
determining benefit eligibility, participation, vesting, calculation of benefits) on a timely basis under the circumstances for the Party to perform its duties under this Agreement. Such information shall include information relating to equity
awards under stock plans. To the extent that such information is maintained by a third-party vendor, each Party shall use its commercially reasonable efforts to require the third-party vendor to provide the necessary information and assist in
resolving discrepancies or obtaining missing data. 
 (b) Transfer of Personnel Records and Authorization. Subject to any limitation
imposed by applicable Law and to the extent that it has not done so before the Effective Time, Parent shall transfer to Varex any and all employment records (including any Form I-9, Form W-2 or other IRS forms) with respect to Varex Employees and
other records reasonably required by Varex to enable Varex properly to carry out its obligations under this Agreement. Such transfer of records generally shall occur as soon as administratively practicable at or after the Effective Time. Each Party
shall permit the other Party reasonable access to its Employee records, to the extent reasonably necessary for such accessing Party to carry out its obligations hereunder. 

(c) Access to Records. To the extent not inconsistent with this Agreement, the Separation and Distribution Agreement or any applicable
privacy protection Laws or regulations, reasonable access to Employee-related and benefit plan related records after the Effective Time shall be provided to members of the Parent Group and members of the Varex Group pursuant to the terms and
conditions of Article VI of the Separation and Distribution Agreement. 
 (d) Maintenance of Records. With respect to retaining,
destroying, transferring, sharing, copying and permitting access to all Employee-related information, Parent and Varex shall comply with all applicable Laws, regulations and internal policies, and shall indemnify and hold harmless each other from
and against any and all Liability, Actions, and damages that arise from a failure (by the indemnifying Party or its Subsidiaries or their respective agents) to so comply with all applicable Laws, regulations and internal policies applicable to such
information. 

  
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 (e) Cooperation. Each Party shall use commercially reasonable efforts to cooperate and
work together to unify, consolidate and share (to the extent permissible under applicable privacy/data protection Laws) all relevant documents, resolutions, government filings, data, payroll, employment and benefit plan information on regular
timetables and cooperate as needed with respect to (i) any claims under or audit of or litigation with respect to any employee benefit plan, policy or arrangement contemplated by this Agreement, (ii) efforts to seek a determination letter,
private letter ruling or advisory opinion from the IRS or U.S. Department of Labor on behalf of any employee benefit plan, policy or arrangement contemplated by this Agreement, (iii) any filings that are required to be made or supplemented to
the IRS, U.S. Pension Benefit Guaranty Corporation, U.S. Department of Labor or any other Governmental Authority, and (iv) any audits by a Governmental Authority or corrective actions, relating to any Benefit Plan, labor or payroll practices;
provided, however, that requests for cooperation must be reasonable and not interfere with daily business operations. 
 (f)
Confidentiality. Notwithstanding anything in this Agreement to the contrary, all confidential records and data relating to Employees to be shared or transferred pursuant to this Agreement shall be subject to Section 6.9 of the Separation
and Distribution Agreement and the requirements of applicable Law. 
 Section 9.02. Preservation of Rights to Amend. Except as
set forth in this Agreement, the rights of each member of the Parent Group and each member of the Varex Group to amend, waive, or terminate any plan, arrangement, agreement, program, or policy referred to herein shall not be limited in any way by
this Agreement. 
 Section 9.03. Fiduciary Matters. Parent and Varex each acknowledges that actions required to be taken
pursuant to this Agreement may be subject to fiduciary duties or standards of conduct under ERISA or other applicable Law, and no Party shall be deemed to be in violation of this Agreement if it fails to comply with any provisions hereof based upon
its good-faith determination (as supported by advice from counsel experienced in such matters) that to do so would violate such a fiduciary duty or standard. Each Party shall be responsible for taking such actions as are deemed necessary and
appropriate to comply with its own fiduciary responsibilities and shall fully release and indemnify the other Party for any Liabilities caused by the failure to satisfy any such responsibility. 

Section 9.04. Further Assurances. Each Party hereto shall take, or cause to be taken, any and all reasonable actions, including
the execution, acknowledgment, filing and delivery of any and all documents and instruments that any other Party hereto may reasonably request in order to effect the intent and purpose of this Agreement and the transactions contemplated hereby. 

  
 -21- 

 Section 9.05. Counterparts; Entire Agreement; Corporate Power. 

(a) This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement, and shall become
effective when one or more counterparts have been signed by each of the Parties and delivered to the other Party. 
 (b) This Agreement, the
Separation and Distribution Agreement and the Ancillary Agreements and the Exhibits, Schedules and appendices hereto and thereto contain the entire agreement between the Parties with respect to the subject matter hereof, supersede all previous
agreements, negotiations, discussions, writings, understandings, commitments and conversations with respect to such subject matter, and there are no agreements or understandings between the Parties other than those set forth or referred to herein or
therein. This Agreement, the Separation and Distribution Agreement and the Ancillary Agreements govern the arrangements in connection with the Separation and Distribution and would not have been entered independently. 

(c) Parent represents on behalf of itself and each other member of the Parent Group, and Varex represents on behalf of itself and each other
member of the Varex Group, as follows: 
 (i) each such Person has the requisite corporate or other power and authority and has taken all
corporate or other action necessary in order to execute, deliver and perform this Agreement and to consummate the transactions contemplated hereby; and 

(ii) this Agreement has been duly executed and delivered by it and constitutes a valid and binding agreement of it enforceable in accordance
with the terms hereof. 
 (d) Each Party acknowledges that it and each other Party is executing this Agreement by facsimile, stamp or
mechanical signature, and that delivery of an executed counterpart of a signature page to this Agreement (whether executed by manual, stamp or mechanical signature) by facsimile or by email in portable document format (PDF) shall be effective
as delivery of such executed counterpart of this Agreement. Each Party expressly adopts and confirms each such facsimile, stamp or mechanical signature (regardless of whether delivered in person, by mail, by courier, by facsimile or by email in
portable document format (PDF)) made in its respective name as if it were a manual signature delivered in person, agrees that it will not assert that any such signature or delivery is not adequate to bind such Party to the same extent as if it were
signed manually and delivered in person and agrees that, at the reasonable request of the other Party at any time, it will as promptly as reasonably practicable cause this Agreement to be manually executed (any such execution to be as of the date of
the initial date thereof) and delivered in person, by mail or by courier. 
 Section 9.06. Governing Law. This Agreement (and
any claims or disputes arising out of or related hereto or to the transactions contemplated hereby or to the inducement of any Party to enter herein, whether for breach of contract, tortious conduct or otherwise and whether predicated on common Law,
statute or otherwise) shall be governed by and construed and interpreted in accordance with the Laws of the State of Delaware, irrespective of the choice of Laws principles of the State of Delaware, including all matters of validity, construction,
effect, enforceability, performance and remedies. 

  
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 Section 9.07. Assignability. This Agreement shall be binding upon and inure to the
benefit of the Parties and their respective successors and permitted assigns; provided, however, that neither Party may assign its rights or delegate its obligations under this Agreement without the express prior written consent of the
other Party hereto. Notwithstanding the foregoing, no such consent shall be required for the assignment of a party’s rights and obligations under this Agreement, the Separation and Distribution Agreement and all other Ancillary Agreements
(except as may be otherwise provided in any such Ancillary Agreement) in whole (i.e., the assignment of a party’s rights and obligations under this Agreement and all Ancillary Agreements all at the same time) in connection with a change
of control of a Party so long as the resulting, surviving or transferee Person assumes all the obligations of the relevant party thereto by operation of Law or pursuant to an agreement in form and substance reasonably satisfactory to the other
Party. 
 Section 9.08. Third-Party Beneficiaries. The provisions of this Agreement are solely for the benefit of the Parties
and are not intended to confer upon any other Person except the Parties any rights or remedies hereunder. There are no third-party beneficiaries of this Agreement and this Agreement shall not provide any third person with any remedy, claim,
Liability, reimbursement, claim of action or other right in excess of those existing without reference to this Agreement. Nothing in this Agreement is intended to amend any employee benefit plan or affect the applicable plan sponsor’s right to
amend or terminate any employee benefit plan pursuant to the terms of such plan. The provisions of this Agreement are solely for the benefit of the Parties, and no current or former Employee, officer, director, or independent contractor or any other
individual associated therewith shall be regarded for any purpose as a third-party beneficiary of this Agreement. 
 Section 9.09.
Notices. All notices, requests, claims, demands or other communications under this Agreement shall be in writing and shall be given or made (and shall be deemed to have been duly given or made upon receipt) by delivery in person, by overnight
courier service, to the respective Parties at the following addresses (or at such other address for a Party as shall be specified in a notice given in accordance with this Section 9.09): 

If to Parent (prior to, on or after the Effective Time), to: 

 

			
	Varian Medical Systems, Inc.
	3100 Hansen Way
	Palo Alto, California 94304
	Attention:	  	General Counsel
	Facsimile:	  	(650) 424-5988
	
	with a copy to:
	
	Wachtell, Lipton, Rosen & Katz
	51 West 52nd Street
	New York, New York 10019
	Attention:	  	David Karp
		  	Ronald Chen
	Facsimile:	  	(212) 403-2000

  
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	If to Varex (prior to the Effective Time), to:
	
	Varex Imaging Corporation
	1678 S. Pioneer Road
	Salt Lake City, Utah 84104
	Attn: General Counsel
	Facsimile: (801) 978-5772
	
	with a copy to:
	
	Wachtell, Lipton, Rosen & Katz
	51 West 52nd Street
	New York, New York 10019
	Attention:	  	David Karp
		  	Ronald Chen
	Facsimile:	  	(212) 403-2000
	
	If to Varex (from and after the Effective Time), to:
	
	Varex Imaging Corporation
	1678 S. Pioneer Road
	Salt Lake City, Utah 84104
	Attn: General Counsel
	Facsimile: (801) 978-5772
	
	with a copy to:
	
	Wachtell, Lipton, Rosen & Katz
	51 West 52nd Street
	New York, New York 10019
	Attention:	  	David Karp
		  	Ronald Chen
	Facsimile:	  	(212) 403-2000

 A Party may, by notice to the other Party, change the address to which such notices are to be given.

 Section 9.10. Severability. If any provision of this Agreement or the application thereof to any Person or circumstance is
determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions hereof, or the application of such provision to Persons or circumstances or in jurisdictions other than those as to which it has been held
invalid or unenforceable, shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby. Upon such determination, the Parties shall negotiate in good faith in an effort to agree upon such a suitable and
equitable provision to effect the original intent of the Parties. 

  
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 Section 9.11. Force Majeure. No Party shall be deemed in default of this Agreement
or, unless otherwise expressly provided therein, any Ancillary Agreement for any delay or failure to fulfill any obligation (other than a payment obligation) hereunder or thereunder so long as and to the extent to which any delay or failure in the
fulfillment of such obligation is prevented, frustrated, hindered or delayed as a consequence of circumstances of Force Majeure. In the event of any such excused delay, the time for performance of such obligations (other than a payment obligation)
shall be extended for a period equal to the time lost by reason of the delay. A Party claiming the benefit of this provision shall, as soon as reasonably practicable after the occurrence of any such event, (a) provide written notice to the
other Party of the nature and extent of any such Force Majeure condition; and (b) use commercially reasonable efforts to remove any such causes and resume performance under this Agreement and the Ancillary Agreements, as applicable, as soon as
reasonably practicable. 
 Section 9.12. Headings. The article, section and paragraph headings contained in this Agreement are
for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. 
 Section 9.13.
Survival of Covenants. Except as expressly set forth in this Agreement, the covenants, representations and warranties contained in this Agreement, and Liability for the breach of any obligations contained herein, shall survive the Separation
and Distribution and shall remain in full force and effect. 
 Section 9.14. Waivers of Default. Waiver by a Party of any
default by the other Party of any provision of this Agreement shall not be deemed a waiver by the waiving Party of any subsequent or other default, nor shall it prejudice the rights of the other Party. No failure or delay by a Party in exercising
any right, power or privilege under this Agreement shall operate as a waiver thereof, nor shall a single or partial exercise thereof prejudice any other or further exercise thereof or the exercise of any other right, power or privilege. 

Section 9.15. Dispute Resolution. The dispute resolution procedures set forth in Article VII of the Separation and Distribution
Agreement shall apply to any dispute, controversy or claim arising out of or relating to this Agreement. 
 Section 9.16. Specific
Performance. Subject to the provisions of Article VII of the Separation and Distribution Agreement, 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
Parties who are, or are to be, thereby aggrieved shall have the right to specific performance and injunctive or other equitable relief in respect of its or 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 hereby waived by each of the Parties. 

Section 9.17. Amendments. No provisions of this Agreement shall be deemed waived, amended, supplemented or modified by a Party,
unless such waiver, amendment, supplement or modification is in writing and signed by the authorized representative of the Party against whom it is sought to enforce such waiver, amendment, supplement or modification. 

  
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 Section 9.18. Interpretation. In this Agreement, (a) words in the singular shall
be deemed to include the plural and vice versa and words of one gender shall be deemed to include the other genders as the context requires; (b) the terms “hereof,” “herein,” and “herewith” and words of similar
import shall, unless otherwise stated, be construed to refer to this Agreement as a whole (including all of the Schedules, Exhibits and Appendices hereto and thereto) and not to any particular provision of this Agreement; (c) Article, Section,
Schedule, Exhibit and Appendix references are to the Articles, Sections, Schedules, Exhibits and Appendices to this Agreement unless otherwise specified; (d) unless otherwise stated, all references to any agreement shall be deemed to include
the exhibits, schedules and annexes to such agreement; (e) the word “including” and words of similar import when used in this Agreement shall mean “including, without limitation,” unless otherwise specified; (f) the
word “or” shall not be exclusive; (g) unless otherwise specified in a particular case, the word “days” refers to calendar days; (h) references to “business day” shall mean any day other than a Saturday, a
Sunday or a day on which banking institutions are generally authorized or required by Law to close in the United States or New York, New York; (i) references herein to this Agreement or any other agreement contemplated herein shall be deemed to
refer to this Agreement or such other agreement as of the date on which it is executed and as it may be amended, modified or supplemented thereafter, unless otherwise specified; and (j) unless expressly stated to the contrary in this Agreement,
all references to “the date hereof,” “the date of this Agreement,” “hereby” and “hereupon” and words of similar import shall all be references to January 27, 2017. 

Section 9.19. Limitations of Liability. Notwithstanding anything in this Agreement to the contrary, neither Varex or any member of
the Varex Group, on the one hand, nor Parent or any member of the Parent Group, on the other hand, shall be liable under this Agreement to the other for any indirect, punitive, exemplary, remote, speculative or similar damages in excess of
compensatory damages of the other arising in connection with the transactions contemplated hereby (other than any such Liability with respect to a Third-Party Claim). 

Section 9.20. Mutual Drafting. This Agreement shall be deemed to be the joint work product of the Parties and any rule of
construction that a document shall be interpreted or construed against a drafter of such document shall not be applicable. 
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 -26- 

 IN WITNESS WHEREOF, the Parties have caused this Employee Matters Agreement to be executed by
their duly authorized representatives as of the date first written above. 
  

			
	VARIAN MEDICAL SYSTEMS, INC.
		
	By:	 	 /s/ John W. Kuo

	Name:	 	John W. Kuo
	Title:	 	 Senior Vice President,
 General Counsel and
Corporate Secretary

  

			
	VAREX IMAGING CORPORATION
		
	By:	 	 /s/ Kimberley E. Honeysett

	Name:	 	Kimberley E. Honeysett
	Title:	 	 Senior Vice President,
 General Counsel and
Corporate Secretary

 [Signature Page to Employee Matters Agreement]

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