Document:

Amended and Restated Varian, Inc. Supplemental Retirement Plan

 Exhibit 10.9 
  
 VARIAN, INC. 
 SUPPLEMENTAL RETIREMENT PLAN 
 (as amended and restated effective November 11, 2004) 
  
 SECTION 1 
 BACKGROUND, PURPOSE AND DURATION 
  
 1.1 Effective Date. The Plan is effective as of the date on which VAI distributes shares of the Company’s common stock to the stockholders of VAI. 
  
 1.2 Purpose of the Plan. The purpose of the Plan is to provide
deferred compensation consisting of (a) elective deferrals and (b) allocations of Matching Contributions and Profit-Sharing Contributions that exceed the amounts that the Dollar Limitations permit to be allocated under the Retirement Plan, but that
are otherwise calculated by reference to the Retirement Plan. 
  
 SECTION 2 
 DEFINITIONS 
  
 The following words and phrases shall have the following meanings unless a different meaning is plainly required by the context: 
  
 2.1 “Code” means the Internal Revenue Code of 1986, as
amended. Reference to a specific section of the Code or regulation thereunder shall include such section or regulation, any valid regulation promulgated thereunder, and any comparable provision of any future legislation or regulation amending,
supplementing or superseding such section or regulation. 
  
 2.2
“Committee” means the Compensation Committee of the Company’s Board of Directors. 
  
 2.3 “Company” means Varian, Inc., a Delaware corporation, or any successor thereto. 
  
 2.4 “Compensation Ceiling” means the limitation described in
section 401(a)(17) of the Code, adjusted as prescribed by the Code. The Compensation Ceiling for plan years beginning in 1999 is $160,000. 
  
 2.5 “Dollar Limitations” means (a) the Compensation Ceiling and (b) the limitation on annual additions described in section 415(c)(1) of
the Code, adjusted in each case as prescribed by the Code. 

 2.6 “Eligible Earnings” shall have the meaning given to such term in the Retirement
Plan, except that Eligible Earnings for purposes of this Plan shall not be subject to the Compensation Ceiling. 
  
 2.7 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended. Reference to a specific section of ERISA shall include
such section, any valid regulation promulgated thereunder, and any comparable provision of any future legislation amending, supplementing or superseding such section. 
  
 2.8 “Participant” means an individual who is eligible to participate in the Plan pursuant to Section 3 and
for whose benefit an amount is credited to a Reserve Account pursuant to Section 3. 
  
 2.9 “Plan” means the Varian, Inc. Supplemental Retirement Plan, as set forth in this instrument and as hereafter amended from time to time. 
  
 2.10 “Plan Year” means the calendar year; provided, however,
that the Plan’s first Plan Year shall be a short Plan Year beginning on the Plan’s initial effective date. 
  
 2.11 “Reserve Account” means the unfunded bookkeeping account described in Section 3.2. 
  
 2.12 “Retirement Plan” means the Varian, Inc. Retirement
Plan, as amended from time to time. 
  
 2.13
“Unforeseeable Emergency” means a severe financial hardship to the Participant resulting from a sudden and unexpected illness or accident of the Eligible Participant or of a dependent of the Participant, from a loss of the
Participant’s property due to casualty or from other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant. A hardship shall not constitute an Unforeseeable Emergency under the
Plan to the extent that it is or may be relieved: 
  
 (a) Through reimbursement or compensation, by insurance or otherwise; 
  
 (b) By liquidation of the Participant’s assets, to the extent that the liquidation of such assets would not itself cause severe
financial hardship; or 
  
 (c) By discontinuing
deferrals under this Plan or under any other plan of the Company as soon as permissible. 
  
 An Unforeseeable Emergency under the Plan shall in no event include the need to send a child to college or the desire to purchase a home. 
  
 2.14 “VAI” means Varian Associates, Inc., a Delaware corporation. 
  

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 2.15 “Valuation Date” means the last day of each calendar quarter. 
  
 Any capitalized terms used in the Plan and not defined herein shall have the
meaning provided in the Retirement Plan. 
  
 SECTION 3

 ELIGIBILITY, PARTICIPATION, RESERVE ACCOUNTS AND CREDITS 
  
 3.1 Eligibility and Participation. Participation in the Plan shall be limited to: 
  
 (a) Officers of the Company (not including any officer
holding the office of only Assistant Secretary or Assistant Treasurer) who are active Retirement Plan participants; 
  
 (b) Participants in the Retirement Plan whose Eligible Earnings under the Retirement Plan are limited by the Compensation Ceiling; and

  
 (c) Any other participant in the Retirement
Plan who is designated by the Committee. 
  
 At the beginning of a
particular Plan Year, the Company, in its sole discretion, may determine that one or more individuals qualify as Participants for the Plan Year pursuant to Subsection (b) based upon such individual’s current salary rate and target bonus
compensation (to the extent includible in Eligible Earnings). Any such determination shall be valid for that Plan Year, regardless of whether the individual’s Eligible Earnings at the end of the Retirement Plan’s plan year actually exceed
the Compensation Ceiling. For purposes of Subsection (a), an individual shall be deemed to be an active Retirement Plan participant if he or she first becomes eligible to participate in the Retirement Plan during the Plan Year and fails to make
contributions to the Retirement Plan during the Plan Year because any contributions to the Retirement Plan, when added to contributions he or she made to a prior employer’s plan during the Plan Year, would exceed the limitation under section
402(g) of the Code. 
  
 3.2 Reserve Account. The Company
shall establish on its books a special unfunded Reserve Account for each Participant. As of each Valuation Date, the Company shall credit interest on the balance in each Reserve Account (not including any amounts credited under Sections 3.3, 3.4 and
3.5 below during the calendar quarter then ending). The interest credited to the Reserve Account shall be established from time to time by the Committee. 
  
 3.3 Matching Contributions. As of each Valuation Date in a Plan Year following the later of the date when the Participant’s contributions to
the Retirement Plan (and any previous employer’s plan) reach the limitation in effect under Code section 402(g) (which limitation is $10,000 for 1999), or the date when the Participant’s Eligible Earnings paid during the Plan Year reach
the Compensation Ceiling, the Company shall credit to a Participant’s Reserve Account an amount determined as follows: 
  

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 (a) First, an initial matching credit shall be calculated by determining the amount equal
to 6% of the Participant’s Eligible Earnings received during the Plan Year to date that are in excess of the Compensation Ceiling; 
  
 (b) Second, the amount calculated under Subsection (a) above shall be reduced (but not below zero) by the amount of credits determined
under this Section 3.3 for the Participant for prior Valuation Dates during the Plan Year; and 
  
 (c) The remainder (if any) shall be the amount credited to the Participant’s Reserve Account under this Section 3.3. 
  
 3.4 Profit-Sharing Contributions. As of the Valuation Date coinciding
with or next following the date when the Company makes a Profit-Sharing Contribution under the Retirement Plan, the Company shall credit to a Participant’s Reserve Account an amount determined as follows: 
  
 (a) First, the hypothetical amount of the Participant’s
share of the Profit-Sharing Contribution shall be calculated, based on the assumption that the Dollar Limitations do not apply; 
  
 (b) Second, the amount calculated under Subsection (a) above shall be reduced (but not below zero) by the actual amount of the
Participant’s share of the Profit-Sharing Contribution; and 
  
 (c) The remainder (if any) shall be the amount credited to the Participant’s Reserve Account under this Section 3.4. 
  
 3.5 Elective Deferrals. An individual who is eligible to participate in the Plan pursuant to Section 3.1 may elect to defer a portion of his
Eligible Earnings with respect to a calendar year by filing a written deferral election with the Company during the Election Period. Any such election shall specify the percentage of Eligible Earnings to be deferred, which percentage shall be no
higher than the maximum deferral percentage permitted under the Retirement Plan. A deferral election shall apply only to Eligible Earnings to be paid following the date when the Participant’s Retirement Plan contributions exceed the limitation
in effect under Section 402(g) of the Code ($10,000 for 1999). 
  
 Deferral elections may be made and revoked any number of times during the Election Period, but any deferral election that has been submitted and has not been revoked at the end of the Election Period then becomes irrevocable. Normally, the
Election Period is the month of December and the deferral election applies to the following calendar year. However, a special Election Period applies with respect to the calendar year when an individual first becomes eligible to participate in the
Plan. In any such case, the Participant’s Election Period is the 30-day period after the Company’s written notice of eligibility is given, and such a Participant’s deferral election applies to the remainder of the then-current
calendar year following the close of the Election Period. There is also a special Election Period applicable to 1999, the calendar year 
  

 4 

 in which this Plan was established. That Election Period is the 30-day period after the Company’s written notice of
eligibility is given to Participants, and any such Participant’s deferral election applies to the remainder of 1999 following the close of the Election Period. 
  
 Any other provision of the Plan notwithstanding, the Committee, at its sole discretion, may reduce the level of deferral
elections or decline altogether to accept an individual’s deferral election. 
  
 SECTION 4 
 DISTRIBUTIONS 
  
 4.1 Right to Receive Payment. Any amount that may become payable under the Plan shall be paid solely from the general
assets of the Company. Nothing in this Plan shall be construed to create a trust or to establish or evidence any Participant’s claim of any right other than as an unsecured creditor with respect to any payment to which he or she may be
entitled. 
  
 4.2 Timing of Payment — In General.
Following the termination of a Participant’s employment with the Company and its subsidiaries, the Company shall pay to the Participant the balance credited to his or her Reserve Account. Payment shall be made in cash at such time(s) and in
such form (including a lump sum or installments) as the Committee shall determine, in its sole discretion. If the Committee determines that payment is to be made in the form of installments, such installments shall be paid quarterly over a period
not to exceed five years. Solely with respect to the portion of a Participant’s Reserve Account attributable to amounts deferred (within the meaning of Section 409A of the Code) after December 31, 2004, payment shall occur in a single lump sum
as soon as reasonably practicable following the termination of the Participant’s employment; provided, however, that payment to “specified employees” (within the meaning of Section 409A of the Code) in connection with a termination of
employment (other than upon death) shall occur no sooner than six (6) months after such termination. 
  
 4.3 Accelerated In-Service Payment in Case of Emergency. In the event of a Participant’s Unforeseeable Emergency, upon application by the
Participant, the Committee may determine in its sole discretion that distribution of all or a portion of the Participant’s Reserve Account shall be made on a date prior to the Participant’s termination of employment. Distributions on
account of an Unforeseeable Emergency shall be permitted only to the extent reasonably needed to satisfy the Participant’s need. 
  
 4.4 In-Service Distribution With Penalty. Solely with respect to the portion of a Participant’s Reserve Account attributable to amounts
deferred (within the meaning of Section 409A of the Code) prior to January 1, 2005, upon application by a Participant, the Committee may determine in its sole discretion that distribution of all or a portion of the Participant’s Reserve Account
shall be made prior to the Participant’s termination of employment (even in the absence of an Unforeseeable Emergency). All distributions under this Section 4.4 shall be reduced by a penalty equal to six percent of the amount otherwise
distributable, which penalty 
  

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 shall be forfeited to the Company. A Participant who has received a distribution under this Section 4.4 shall thereafter
be ineligible to make elective deferrals to the Plan. 
  
 4.5
Payment in the Event of Death. In the event of a Participant’s death before the entire Reserve Account has been distributed to him or her, the unpaid balance remaining in the Participant’s Reserve Account shall be paid to his or her
beneficiary or beneficiaries under the Retirement Plan, at such time(s) and in such form as the Committee shall determine in its sole discretion. Solely with respect to the portion of a Participant’s Reserve Account attributable to amounts
deferred (within the meaning of Section 409A of the Code) after December 31, 2004, payment shall occur in a single lump sum as soon as reasonably practicable following the Participant’s death. 
  
 SECTION 5 
 ADMINISTRATION 
  
 5.1 Committee is the Administrator. The Plan shall be administered by the Committee. 
  
 5.2 Committee Authority. It shall be the duty of the Committee to administer the Plan in accordance with the Plan’s provisions. The Committee
shall have all powers and discretion necessary or appropriate to administer the Plan and to control its operation including, but not limited to, the power to (a) determine which Retirement Plan participants shall be eligible to participate in this
Plan, (b) determine the amounts to be credited to Reserve Accounts, (c) determine whether to grant applications for accelerated payments pursuant to Sections 4.3 and 4.4, (d) determine distributions to be made in the event of death pursuant to
Section 4.5, (e) interpret the Plan, (f) adopt such rules for the administration, interpretation and application of the Plan as are consistent therewith and (g) interpret, amend or revoke any such rules. 
  
 5.3 Decisions Binding. All determinations and decisions made by the
Committee, the Board and any delegate of the Committee pursuant to the provisions of the Plan shall be final, conclusive and binding on all persons, and shall be given the maximum deference permitted by law. 
  
 5.4 Delegation by the Committee. The Committee, in its sole discretion
and on such terms and conditions as it may provide, may delegate all or part of its authority and powers under the Plan to one or more directors, officers or employees of the Company. 
  
 SECTION 6 
 CLAIMS AND REVIEW PROCEDURES 
  
 6.1
Application for Benefits. Any application for benefits under the Plan shall be submitted to the Committee at the Company’s principal office. Such application shall be in writing and on the prescribed form, if any, and shall be signed by
the applicant. 
  

 6 

 6.2 Denial of Applications. In the event that any application for benefits is denied in whole or
in part, the Committee shall notify the applicant in writing of the right to a review of the denial. Such written notice shall set forth, in a manner calculated to be understood by the applicant, specific reasons for the denial, specific references
to the Plan provisions on which the denial was based, a description of any information or material necessary to perfect the application, an explanation of why such material is necessary, and an explanation of the Plan’s review procedure. Such
written notice shall be given to the applicant within 90 days after the Committee receives the application, unless special circumstances require an extension of time for processing the application. In no event shall such an extension exceed a period
of 90 days from the end of the initial 90-day period. If such an extension is required, written notice thereof shall be furnished to the applicant before the end of the initial 90-day period. Such notice shall indicate the special circumstances
requiring an extension of time and the date by which the Committee expects to render a decision. If written notice is not given to the applicant within the period prescribed by this Section 6.2, the application shall be deemed to have been denied
for purposes of Section 6.3 upon the expiration of such period. 
  
 6.3 Request for Review. Any person whose application for benefits is denied in whole or in part (or such person’s duly authorized representative) may appeal the denial by submitting to the Committee a request for a review of
such application within 90 days after receiving written notice of denial. The Committee shall give the applicant or such representative an opportunity to review pertinent documents (except legally privileged materials) in preparing such request for
review and to submit issues and comments in writing. The request for review shall be in writing and shall be addressed to the Committee at the Company’s principal office. The request for review shall set forth all of the ground on which it is
based, all facts in support of the request, and any other matters which the applicant deems pertinent. The Committee may require the applicant to submit such additional facts, documents, or other material as it may deem necessary or appropriate in
making its review. 
  
 6.4 Decision on Review. The
Committee shall act upon each request for review within 60 days after receipt thereof, unless special circumstances require an extension of time for processing, but in no event shall the decision on review be rendered more that 120 days after the
Committee receives the request for review. If such an extension is required, written notice thereof shall be furnished to the applicant before the end of the initial 60-day period. The Committee shall give prompt, written notice of its decision to
the applicant and to the Company. In the event that the Committee confirms the denial of the application for benefits in whole or in part, such notice shall set forth, in a manner calculated to be understood by the applicant, the specific reasons
for such denial and specific references to the Plan provisions on which the decision is based. To the extent that the Committee overrules the denial of the application for benefits, such benefits shall be paid to the applicant. 
  
 6.5 Exhaustion of Administrative Remedies. No legal or equitable
action for benefits under the Plan shall be brought unless and until the claimant (a) has submitted a written application for benefits in accordance with Section 6.1, (b) has been notified that the application is denied, (c) has filed a written
request for a review of the application in accordance with 
  

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 Section 6.3, and (d) has been notified in writing that the Committee has affirmed the denial of the application;
provided, however, that an action may be brought after the Committee has failed to act on the claim within the time prescribed in Section 6.2 and Section 6.4, respectively. 
  
 SECTION 7 
 GENERAL PROVISIONS 
  
 7.1 Tax Withholding.
The Company shall withhold all applicable taxes from any payment under this Plan, including any federal, state and local taxes (including the Participant’s FICA obligation). 
  
 7.2 No Effect on Employment or Service. Nothing in the Plan shall interfere with or limit in any way the right of the
Company to terminate any Participant’s employment or service at any time, with or without cause. Employment with the Company and its affiliates is on an at-will basis only. The Company expressly reserves the right, which may be exercised at any
time, to terminate any individual’s employment with or without cause, and to treat him or her without regard to the effect that such treatment might have upon him or her as a Participant. 
  
 7.3 Participation. No individual shall have the right to be selected
to participate in the Plan for any particular Plan Year. 
  
 7.4
Indemnification. To the extent permitted by ERISA, each person who is or shall have been a member of the Committee, or of the Board, shall be indemnified and held harmless by the Company against and from (a) any loss, cost, liability, or
expense that may be imposed upon or reasonably incurred by him or her in connection with or resulting from any claim, action, suit, or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action taken
or failure to act under the Plan and (b) from any and all amounts paid by him or her in settlement thereof, with the Company’s approval, or paid by him or her in satisfaction of any judgment in any such claim, action, suit, or proceeding
against him or her, provided he or she shall give the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her own behalf. The foregoing right of indemnification
shall not be exclusive of any other rights of indemnification to which such persons may be entitled under the Company’s Certificate of Incorporation or Bylaws, by contract, as a matter of law, or otherwise, or under any power that the Company
may have to indemnify them or hold them harmless. 
  
 7.5
Successors. All obligations of the Company under the Plan shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or
substantially all of the business or assets of the Company. 
  
 7.6 Nontransferability of Awards. No portion of any Participant’s Reserve Account may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, and any act 
  

 8 

 in violation of this Section shall be void. All rights with respect to a Participant’s Reserve Account shall be
available during his or her lifetime only to the Participant. 
  
 SECTION 8 
 AMENDMENT, TERMINATION AND DURATION 
  
 8.1 Amendment, Suspension or Termination. The Company, in its sole discretion, may amend or terminate the Plan, or
any part thereof, at any time and for any reason. The Company shall also have the authority to distribute all or a portion of any Participant’s Reserve Account at any time, regardless of whether the Plan is then being terminated. The amendment,
suspension or termination of the Plan shall not, without the consent of the Participant, alter or impair any rights or obligations under the Plan; provided, however, that the Company may without such consent amend the Plan to conform to the
provisions of the American Jobs Creation Act of 2004 with respect to amounts deferred (within the meaning of Section 409A of the Code) after December 31, 2004. 
  

8.2 Duration of the Plan. The Plan shall commence on the date specified herein and, subject to Section 8.1 (regarding the Company’s right
to amend or terminate the Plan), shall remain in effect thereafter. 
  
 SECTION 9 
 LEGAL CONSTRUCTION 
  

9.1 Gender and Number. Except where otherwise indicated by the context, any masculine term used herein also shall include the feminine; the
plural shall include the singular and the singular shall include the plural. 
  
 9.2 Severability. In the event any provision of the Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be
construed and enforced as if the illegal or invalid provision had not been included. 
  
 9.3 Requirements of Law. Benefits provided under the Plan shall be subject to all applicable laws, rules and regulations, and to such approvals by any governmental agencies as may be required. 
  
 9.4 Governing Law. The Plan shall be construed in accordance with
governed by ERISA and, to the extent not preempted by ERISA, by the laws of the State of California, but without regard to its conflict of law provisions. 
  
 9.5 Captions. Captions are provided herein for convenience only, and shall not serve as a basis for interpretation or construction of the Plan.

  

 9 

 EXECUTION 
  

IN WITNESS WHEREOF, Varian, Inc. by its duly authorized officer, has executed the Plan on the date indicated below. 
  

					
	 	 	 VARIAN, INC.

			
	 Dated: November 11, 2004
	 	 By:
	 	 /s/ Robert R. Christofk II

	 	 	 Name:
	 	 Robert R. Christofk II

	 	 	 Title:
	 	 Vice President, Human Resources

  

 10Form of Nonqualified Stock Option Agreement

 Exhibit 10.12 
  
 FORM OF 
 VARIAN, INC. 
 OMNIBUS STOCK PLAN 
 NONQUALIFIED STOCK OPTION AGREEMENT 
 FOR NON-EMPLOYEE DIRECTORS 
  
 Varian, Inc. (the “Company”) hereby grants you, [NAME OF NON-EMPLOYEE DIRECTOR]
(the “Director”), a nonqualified stock option under the Company’s Omnibus Stock Plan (the ”Plan”), to purchase shares of common stock of the Company (“Shares”). The date of this Agreement is [GRANT DATE] (the
“Grant Date”). The latest date this option will expire is [EXPIRATION DATE TEN YEARS FROM GRANT DATE] (the “Expiration Date”). However, as provided in Appendix A (attached hereto), this option may expire earlier than the
Expiration Date. Subject to the provisions of Appendix A and of the Plan, the principal features of this option are as follows: 
  

							
	 Maximum Number of Shares
 Purchasable with
this Option:
	  	[NUMBER A]	    	Purchase Price per Share:	  	[PRICE]
				
	Scheduled Vesting Date:	  	 	    	Number of Shares:	  	 
				
	[GRANT DATE]	  	 	    	[NUMBER A]	  	 

  

			
	 Event Triggering
 Termination of
Option:

	  	Maximum Time to Exercise
After Triggering Event*:

	 Termination of Service due to Disability
	  	3 years
	 Termination of Service due to Retirement
	  	3 years
	 Termination of Service due to death
	  	3 years
	 Termination of Service due to completion of term as Director
	  	3 years
	 Termination of Service due to resignation
	  	1 month
	 All other Terminations of Service
	  	3 months

	*	However, in no event may this option be exercised after the Expiration Date (except in certain cases of the death of the Director). 

  
 Your signature below indicates your agreement and understanding that this option is subject
to all of the terms and conditions contained in Appendix A and the Plan. For example, important additional information on vesting and termination of this option is contained in Paragraphs 4 through 6 of Appendix A. ACCORDINGLY, PLEASE BE SURE TO
READ ALL OF APPENDIX A, WHICH CONTAINS THE SPECIFIC TERMS AND CONDITIONS OF THIS OPTION. 
  

							
	VARIAN, INC.	 	 	 	DIRECTOR
				
	 By
	 	  

	 	 	 	

	 Name:
	 	 	 	 	 	[NAME]
	 Title:
	 	 	 	 	 	 

 APPENDIX A 
  

TERMS AND CONDITIONS OF NON-QUALIFIED STOCK OPTION 
  
 1. Grant of Option. The Company hereby grants to the Director under the Plan, as a separate incentive in connection with his or her service and not
in lieu of any other compensation for his or her services, a non-qualified stock option to purchase, on the terms and conditions set forth in this Agreement and the Plan, all or any part of an aggregate of [NUMBER A] Shares. This option is not
intended to qualify as an “incentive stock option” under Section 422 of the Internal Revenue Code of 1986, as amended. 
  
 2. Exercise Price. The purchase price per Share for this option (the “Exercise Price”) shall be [PRICE]. 
  
 3. Number of Shares. The number and class of Shares specified in
Paragraph 1 above, and/or the Exercise Price, are subject to adjustment by the Board of Directors of the Company (the “Board”) in the event of any merger, reorganization, consolidation, recapitalization, separation, liquidation, stock
dividend, split-up, Share combination or other change in the corporate structure of the Company affecting the Shares. 
  
 4. Vesting Schedule. The right to exercise this option is scheduled to vest fully as of the Grant Date. 
  
 5. Expiration of Option. In the event of the Director’s
Termination of Service for any reason other than Disability, Retirement, resignation, completion of term as a Director or death, the Director may, within three (3) months after the date of such Termination, or prior to the Expiration Date, whichever
shall first occur, exercise this option. In the event of the Director’s Termination of Service due to Disability, or completion of term as a Director, Retirement, the Director may, within three (3) years after the date of such Termination, or
prior to the Expiration Date, whichever shall first occur, exercise this option. In the event of the Director’s Termination of Service due to resignation, the Director may, within one (1) month after the date of such termination, or prior to
the Expiration Date, whichever shall first occur, exercise this option. 
  
 6. Death of Director. In the event that the Director dies while in the employ of the Company or during the one (1) month, three (3) month or three (3) year periods referred to in Paragraph 5 above, the Director’s designated
beneficiary, or if either no beneficiary survives the Director or the Board does not permit beneficiary designations, the administrator or executor of the Director’s estate, may, within three (3) years after the date of death, exercise this
option. Any such transferee must furnish the Company (a) written notice of his or her status as a transferee, (b) evidence satisfactory to the Company to establish the validity of the transfer of this option and compliance with any laws or
regulations pertaining to such transfer, and (c) written acceptance of the terms and conditions of this option as set forth in this Agreement. 
  
 7. Persons Eligible to Exercise Option. This option shall be exercisable during the Director’s lifetime only by the Director. The option shall
not be transferable by the Director, except by (a) a valid beneficiary designation made in a form and manner acceptable to the Board, or (b) will or the applicable laws of descent and distribution. 
  

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 8. Exercise of Option. This option may be exercised by the person then entitled to do so as to any
Shares which may then be purchased (a) by giving written notice of exercise to the Secretary of the Company (or his or her designee), specifying the number of full Shares to be purchased and accompanied by full payment of the Exercise Price (and the
amount of any income or other taxes the Company determines is required to be withheld by reason of such exercise), and (b) by giving satisfactory assurances in writing if requested by the Company, signed by the person exercising the option, that the
Shares to be purchased upon such exercise are being purchased for investment and not with a view to the distribution thereof. In the absolute discretion of the Board, the person entitled to exercise the option may elect to satisfy the tax
withholding requirement described in subparagraph (a) above by having the Company withhold Shares or delivering to the Company already-owned Shares. No partial exercise of this option may be for less than ten (10) Share lots or multiples thereof.

  
 9. Suspension of Exercisability. If at any time the
Company shall determine, in its discretion, that the listing, registration or qualification of the Shares upon any securities exchange or under any state or federal law, or the consent or approval of any governmental regulatory authority, is
necessary or desirable as a condition of the purchase of Shares hereunder, this option may not be exercised, in whole or in part, unless and until such listing, registration, qualification, consent or approval shall have been effected or obtained
free of any conditions not acceptable to the Company. The Company shall make reasonable efforts to meet the requirements of any such state or federal law or securities exchange and to obtain any such consent or approval of any such governmental
authority. 
  
 10. No Rights of Stockholder. Neither the
Director (nor any beneficiary) shall be or have any of the rights or privileges of a stockholder of the Company in respect of any of the Shares issuable pursuant to the exercise of this option, unless and until certificates representing such Shares
shall have been issued, recorded on the records of the Company or its transfer agents or registrars, and delivered to the Director (or beneficiary). 
  
 11. No Effect on Service. Nothing in this Agreement or the Plan shall confer upon the Director any right to continue service on the Board of the
Company or its Subsidiaries (as the case may be). 
  
 12.
Address for Notices. Any notice to be given to the Company under the terms of this Agreement shall be addressed to the Company, in care of its Secretary at 3120 Hansen Way, Palo Alto, California 94304, or at such other address as the Company
may hereafter designate in writing. 
  
 13. Option is Not
Transferable. Except as otherwise expressly provided herein, this option and the rights and privileges conferred hereby may not be transferred, pledged, assigned or otherwise hypothecated in any way (whether by operation of law or otherwise) and
shall not be subject to sale under execution, attachment or similar process. Upon any attempt to transfer, pledge, assign, hypothecate or otherwise dispose of this option, or of any right or privilege conferred hereby, or upon any attempted sale
under any execution, attachment or similar process, this option and the rights and privileges conferred hereby immediately shall become null and void. 
  
 14. Maximum Term of Option. Notwithstanding any other provision of this Agreement except paragraph 6 above relating to the death of the Director
(in which case this option is exercisable to the extent set forth therein), this option is not exercisable after the Expiration Date. 
  
 15. Binding Agreement. Subject to the limitation on the transferability of this option contained herein, this Agreement shall be binding upon and
inure to the benefit of the heirs, legatees, legal representatives, successors and assigns of the parties hereto. 
  
 16. Conditions to Exercise. The Exercise Price for this option must be paid in the legal tender of the United States (including, in the
Board’s sole discretion, by means of a broker-assisted cashless exercise) or, in the Board’s sole discretion, in Shares of equivalent value that (a) were previously issued to the Director and (b) have been held by the Director for at least
six (6) months 
  

 3 

 prior thereto. Exercise of this option will not be permitted until satisfactory arrangements have been made for the
payment of the appropriate amount of withholding taxes (as determined by the Company). If the Director fails to remit to the Company such withholding amount within the time period specified by the Board (in its discretion), the award may be
forfeited and in such case the Director shall not receive any of the Shares subject to this Agreement. 
  
 17. Plan Governs. This Agreement is subject to all of the terms and provisions of the Plan. In the event of a conflict between one or more
provisions of this Agreement and one or more provisions of the Plan, the provisions of the Plan shall govern. Capitalized terms and phrases used and not defined in this Agreement shall have the meaning set forth in the Plan. 
  
 18. Governing Law. This Agreement shall be governed by and construed
in accordance with the laws of the State of California, without reference to its principles of conflicts of law. 
  
 19. Board Authority. The Board shall have all discretion, power, and authority to interpret the Plan and this Agreement and to adopt such rules for
the administration, interpretation and application of the Plan as are consistent therewith. All actions taken and all interpretations and determinations made by the Board in good faith shall be final and binding upon the Director, the Company and
all other interested persons, and shall be given the maximum deference permitted by law. No member of the Board shall be personally liable for any action, determination or interpretation made in good faith with respect to the Plan or this Agreement.

  
 20. Captions. The captions provided herein are for
convenience only and are not to serve as a basis for the interpretation or construction of this Agreement. 
  
 21. Agreement Severable. In the event that any provision in this Agreement shall be held invalid or unenforceable, such provision shall be
severable from, and such invalidity or unenforceability shall not be construed to have any effect on, the remaining provisions of this Agreement. 
  
 22. Modifications to the Agreement. This Agreement constitutes the entire understanding of the parties on the subjects covered. The Director
expressly warrants that he or she is not executing this Agreement in reliance on any promises, representations, or inducements other than those contained herein. Modifications to this Agreement or the Plan can be made only in an express written
contract executed by a duly authorized officer of the Company. 
  
 o 0 o 
  

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