EX-10.2





 Exhibit 10.2 
  





 
 



 
 November 25, 2020 

Re: Acceleration of Certain Compensation 

Christopher A. Toth 
 c/o Varian Medical Systems, Inc. 

3100 Hansen Way 
 Palo Alto CA 94304 

Dear Chris: 
 This letter memorializes our
recent discussions concerning tax planning in connection with the anticipated 2021 consummation of the transactions contemplated by the Agreement and Plan and Merger, by and among Siemens Healthineers Holding I GMBH, Falcon Sub Inc., Varian Medical
Systems, Inc. (the “Company”) and Siemens Medical Solutions USA, Inc., dated as of August 2, 2020 (the “Merger Agreement”). 

RSUs. Effective as of December 1, 2020 (the “Acceleration Date”), you and the Company hereby agree that
the 11,594 restricted stock units granted to you by the Company on August 21, 2020 (the “RSUs”) shall become fully vested. As of the Acceleration Date, the Company shall deliver to you a number of Shares (as defined below) that
corresponds to the number of RSUs, less withholding for applicable taxes (which withholding shall be determined based upon the maximum individual rates in each applicable jurisdiction). 

Stock Options. Effective as of the Acceleration Date, all Company stock options that you hold that are unvested as of
immediately prior to the Acceleration Date (such options, the “Accelerated Stock Options”) shall become fully vested. You hereby agree that as of the Acceleration Date, all vested stock options that you hold (including the
Accelerated Stock Options) shall be deemed immediately exercised, and as soon as reasonably practicable following such date, the Company shall deliver to you a number of shares of Company common stock that corresponds to the number of stock
options so exercised, less withholding for applicable taxes (which withholding shall be determined based upon the maximum individual rates in each applicable jurisdiction) and the aggregate exercise price due upon the exercise of such stock options.

 2021 LTIP Award. On, or as soon as practicable following, the Acceleration Date, but in no event later than December 31,
2020, the Company will make you a cash payment of $2,500,000, subject to applicable tax withholding. You hereby acknowledge and agree that such payment is being made in lieu of an equity compensation award for the Company’s 2021 fiscal year.
The Company acknowledges that the amount of such payment represents your annual long-term incentive opportunity for purposes of clause (ii) of the definition of Good Reason set forth in Section 3 of the CIC Agreement. 

Damages Upon a Voluntary Termination. You hereby agree that if your employment terminates due to a Voluntary Termination (as defined
below), then, within ten business days following the termination of your employment, you shall pay to the Company the Repayment Amount (as defined below); provided that if such Voluntary Termination does not occur prior to the Closing Date, the
Repayment Amount shall be limited to the 2021 LTIP Repayment Amount. 

  
 Varian Confidential 














 



 
  

 Removal of Cutback Provision. You and the Company hereby agree that
(i) Section 5(a) of the CIC Agreement is hereby shortened to retain the first sentence thereof and the final sentence thereof but to eliminate the portion of such paragraph in between such sentences and (ii) the definitions set forth
in Section 5(f)(iii) and 5(f)(v) of the CIC Agreement are hereby eliminated. 
 Certain Definitions. For purposes hereof, the
following terms shall be defined as set forth below. 
 “2021 LTIP Repayment Amount” means the product of (i) the after-tax amount delivered to you pursuant to the “2021 LTIP Award” paragraph above multiplied by (ii) if the Voluntary Termination occurs (w) prior to November 20, 2021, 1.0, (x) on or
after November 20, 2021 but prior to November 20, 2022, 2/3, (y) on or after November 20, 2022 but prior to November 20, 2023, 1/3, and (z) on or after November 20, 2023, zero. 

“CIC Agreement” means the Change in Control Agreement, dated as of August 1, 2020, between you and the Company. 

“Equity Plan” means the Company’s Fifth Amended and Restated 2005 Omnibus Stock Plan. 

“Option Repayment Amount” means a cash amount equal to the product of (i) the Fair Market Value (as defined in the
Equity Plan) of a Share on the date of your Voluntary Termination, multiplied by (ii) the net number of Shares delivered pursuant to this letter in respect of the Accelerated Stock Options that would not have vested prior to or on the date of
your Voluntary Termination if not for the accelerated vesting and settlement contemplated hereby. 
 “Repayment Amount”
means the sum of the Option Repayment Amount, RSU Repayment Amount and the 2021 LTIP Repayment Amount. 
 “RSU Repayment
Amount” means a cash amount equal to the product of (i) the Fair Market Value of a Share on the date of your Voluntary Termination, multiplied by (ii) the net number of Shares delivered pursuant to this letter in respect of RSUs
that would not have vested prior to or on the date of your Voluntary Termination if not for the accelerated vesting and settlement contemplated hereby. For purposes of the preceding sentence, Shares delivered hereunder shall be determined on a tranche-by-tranche net basis, such that the amount that would not have vested shall with respect to a particular award mean the net Shares after tax withholding delivered
hereunder in respect of such tranche. 
 “Share” has the meaning set forth in the Equity Plan. 

“Voluntary Termination” means a termination of your employment (i) by the Company for Cause (as defined in the CIC
Agreement) or (ii) by you other than for Good Reason (as defined in the CIC Agreement). A termination of your employment due to your death or Disability (as defined pursuant to the applicable award agreement) shall not constitute a Voluntary
Termination. 

  
 Varian Confidential 














 



 
  

 This letter shall be governed by, and construed in accordance with, the laws of the State of
Delaware without reference to its conflict of law rules. 
 Please indicate your agreement to the terms set forth above by your signature
below. 
  

					
	Sincerely,
	
	Varian Medical Systems, Inc.
		
	By:	 	 /s/ Michael D. Hutchinson

		 	Name:	 	Michael D. Hutchinson
		 	Title:	 	SVP, Chief Legal Officer


  

	
	Accepted and Acknowledged:
	
	 /s/ Christopher Toth

	Christopher Toth
	
	Dated: November 25, 2020


  
 Varian Confidential