Document:

Amended and Restated Management Incentive Plan, dated 11/10/2003

 Exhibit 10.7 
  
 VARIAN, INC. 
 MANAGEMENT INCENTIVE PLAN 
 (as amended and restated effective November 10, 2003) 
  
 SECTION 1 
 BACKGROUND, PURPOSE AND DURATION 
  
 1.1 Effective Date. The Plan, as amended and restated, is effective as of November 10, 2003, subject to the approval of the amended and restated Plan by a majority of the shares of the Company’s common
stock which are present in person or by proxy and entitled to vote at the 2004 Annual Meeting of Stockholders of the Company. 
  
 1.2 Purpose of the Plan. The Plan is intended to increase shareholder value and the success of the Company by motivating key executives (1) to
perform to the best of their abilities, and (2) to achieve the Company’s objectives. The Plan’s goals are to be achieved by providing such executives with incentive awards based on the achievement of goals relating to the performance of
the Company and its business units. The Plan is intended to permit the grant of awards that qualify as performance-based compensation under section 162(m) of the Code. 
  
 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 “Actual Award” means as to any Performance Period, the actual award (if any) payable to a Participant for the Performance Period.
Each Actual Award is determined by the Payout Formula for the Performance Period, subject to the Committee’s authority under Section 3.5 to reduce the award otherwise determined by the Payout Formula. 
  
 2.2 “Affiliate” means any corporation or other entity
(including, but not limited to, partnerships and joint ventures) controlling, controlled by, or under common control with the Company. 
  
 2.3 “Base Salary” means as to any Performance Period, the Participant’s annualized salary rate on the last day of the Performance
Period. Such Base Salary shall be before both (a) deductions for taxes or benefits, and (b) deferrals of compensation pursuant to Company-sponsored plans. 
  
 2.4 “Board” means the Board of Directors of the Company. 
  
 2.5 “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.

  

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 2.6 “Committee” means the committee appointed by the Board (pursuant to Section 5.1) to
administer the Plan. 
  
 2.7 “Company” means
Varian, Inc., a Delaware corporation, or any successor thereto. 
  
 2.8 “EBIT” means as to any Performance Period, the Company’s or a business unit’s income before reductions for interest and taxes, determined in accordance with generally accepted accounting principles.

  
 2.9 “EBITA” means as to any Performance
Period, the Company’s or a business unit’s income before reductions for interest, taxes and acquisition-related intangible amortization, determined in accordance with generally accepted accounting principles. 
  
 2.10 “EBITDA” means as to any Performance Period, the
Company’s or a business unit’s income before reductions for interest, taxes, depreciation and amortization, determined in accordance with generally accepted accounting principles. 
  
 2.11 “Earnings Per Share” means as to any Performance
Period, the Company’s or a business unit’s diluted earnings per share, determined in accordance with generally accepted accounting principles. 
  
 2.12 “Employee” means any employee of the Company or of an Affiliate, whether such employee is so employed at the time the Plan is
adopted or becomes so employed subsequent to the adoption of the Plan. 
  
 2.13 “Fiscal Year” means any fiscal year of the Company. 
  
 2.14 “Maximum Award” means as to any Actual Award to any Participant for any Performance Period, the lesser of two hundred percent (200%) of Base Salary or $2 million. 
  
 2.15 “Net Income” means as to any Performance Period, the
Company’s or a business unit’s income after taxes, determined in accordance with generally accepted accounting principles. 
  
 2.16 “Operating Cash Flow” means as to any Performance Period, the Company’s or a business unit’s net cash provided by
operating activities, determined in accordance with generally acceptable accounting principles, less net capital expenditures. 
  
 2.17 “Participant” means as to any Performance Period, an Employee who has been selected by the Committee for participation in the Plan
for that Performance Period. 
  
 2.18 “Payout
Formula” means as to any Performance Period, the formula or payout matrix established by the Committee pursuant to Section 3.4 in order to determine the Actual Awards (if any) to be paid to Participants. The formula or matrix may differ
from Participant to Participant. 
  
 2.19 “Performance
Goals” means the goal(s) (or combined goal(s)) determined by the Committee (in its discretion) to be applicable to a Participant for a Target Award for a 

  

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Performance Period. As determined by the Committee, the Performance Goals for any Target Award applicable to a Participant may provide for a targeted level
or levels of achievement using one or more of the following measures: (a) EBIT, (b) EBITA, (c) EBITDA, (d) Earnings Per Share, (e) Net Income, (f) Operating Cash Flow, (g) Return on Net Assets, (h) Return on Equity, (i) Return on Sales, (j) Revenue,
and (k) Shareholder Return. The Performance Goals may differ from Participant to Participant and from award to award. Prior to the Determination Date, the Committee shall determine whether any significant element(s) shall be included in or excluded
from the calculation of any Performance Goal with respect to any Participants. “Determination Date” means the latest possible date that will not jeopardize a Target Award’s qualification as performance-based compensation under section
162(m) of the Code. 
  
 2.20 “Performance Period”
means any fiscal period not to exceed three consecutive Fiscal Years, as determined by the Committee in its sole discretion. 
  
 2.21 “Plan” means the Varian, Inc. Management Incentive Plan, as set forth in this instrument and as hereafter amended from time to time.

  
 2.22 “Return on Net Assets” means as to any
Performance Period, the percentage equal to the Company’s or a business unit’s EBIT before incentive compensation, divided by the Company’s or business unit’s average net assets, determined in accordance with generally accepted
accounting principles. 
  
 2.23 “Return on
Equity” means as to any Performance Period, the percentage equal to the Company’s Net Income divided by average stockholder’s equity, determined in accordance with generally accepted accounting principles. 
  
 2.24 “Return on Sales” means as to any Performance Period,
the percentage equal to the Company’s or a business unit’s EBIT (after incentive compensation), divided by the Company’s or the business unit’s, as applicable, Revenue, determined in accordance with generally accepted accounting
principles. 
  
 2.25 “Revenue” means as to any
Performance Period, the Company’s or a business unit’s net sales, determined in accordance with generally accepted accounting principles. 
  
 2.26 “Shareholder Return” means as to any Performance Period, the total return (change in share price plus reinvestment of any dividends)
of a Share. 
  
 2.27 “Shares” means shares of the
Company’s common stock, $.01 par value. 
  
 2.28
“Target Award” means the target award payable under the Plan to a Participant for the Performance Period, expressed as a percentage of his or her Base Salary, as determined by the Committee in accordance with Section 3.3.

  
 SECTION 3 
 SELECTION OF PARTICIPANTS AND DETERMINATION OF AWARDS 
  
 3.1 Selection of Participants. The Committee, in its sole discretion, shall select the Employees of the Company who shall be Participants for any
Performance Period. Participation 

  

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in the Plan is in the sole discretion of the Committee, and on a Performance Period by Performance Period basis. Accordingly, an Employee who is a
Participant for a given Performance Period in no way is guaranteed or assured of being selected for participation in any subsequent Performance Period or Periods. 
  
 3.2 Determination of Performance Goals. The Committee, in its sole discretion, shall establish the Performance Goals
for each Participant for the Performance Period. Such Performance Goals shall be set forth in writing. 
  
 3.3 Determination of Target Awards. The Committee, in its sole discretion, shall establish a Target Award for each Participant. Each
Participant’s Target Award shall be determined by the Committee in its sole discretion, and each Target Award shall be set forth in writing. 
  
 3.4 Determination of Payout Formula or Formulae. On or prior to the Determination Date, the Committee, in its sole discretion, shall establish a
Payout Formula or Formulae for purposes of determining the Actual Award (if any) payable to each Participant. Each Payout Formula shall (a) be in writing, (b) be based on a comparison of actual performance to the Performance Goals, (c) provide for
the payment of a Participant’s Target Award if the Performance Goals for the Performance Period are achieved, and (d) provide for an Actual Award greater than or less than the Participant’s Target Award, depending upon the extent to which
actual performance exceeds or falls below the Performance Goals. Notwithstanding the preceding, no Participant’s Actual Award under the Plan may exceed his or her Maximum Award. 
  
 3.5 Determination of Actual Awards. After the end of each Performance Period, the Committee shall certify in writing
the extent to which the Performance Goals applicable to each Participant for the Performance Period were achieved or exceeded. The Actual Award for each Participant shall be determined by applying the Payout Formula to the level of actual
performance which has been certified by the Committee. Notwithstanding any contrary provision of the Plan, the Committee, in its sole discretion, may (a) eliminate or reduce the Actual Award payable to any Participant below that which otherwise
would be payable under the Payout Formula, and (b) determine what Actual Award, if any, will be paid in the event of a termination of employment prior to the end of the Performance Period. The total aggregate Actual Awards under the Plan with
respect to any Performance Period shall not exceed eight percent (8%) of the Company’s EBIT (but before incentive compensation) for the most recent completed Fiscal Year. If the total aggregate Actual Awards with respect to a Performance Period
would exceed this aggregate limit, all such Actual Awards shall be pro-rated on an equal basis among all Participants according to a formula established by the Committee. 
  
 SECTION 4 
 PAYMENT OF AWARDS 
  
 4.1 Right to Receive
Payment. Each Actual Award 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 

  

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than as an unsecured general creditor with respect to any payment to which he or she may be entitled. 
  
 4.2 Timing of Payment. Payment of each Actual Award shall be made
within 120 days after the end of the Performance Period during which the Award was earned. 
  
 4.3 Form of Payment. Each Actual Award normally shall be paid in cash (or its equivalent) in a single lump sum. However, the Committee, in its sole discretion, may declare any Actual Award, in whole or in part,
payable in stock granted under the Company’s Omnibus Stock Plan. The number of Shares granted shall be determined by dividing the cash amount foregone by the fair market value of a Share on the date that the cash payment otherwise would have
been made. For this purpose, “fair market value” shall mean the closing price on the Nasdaq National Market for the day in question. 
  
 4.4 Payment in the Event of Death. If a Participant dies prior to the payment of an Actual Award earned by him or her prior to death for a prior
Performance Period, the Award shall be paid to his or her estate. 
  
 SECTION 5 
 ADMINISTRATION 
  
 5.1 Committee is the Administrator. The Plan shall be administered by the Committee. The Committee shall consist of not less than two (2) members
of the Board. The members of the Committee shall be appointed from time to time by, and serve at the pleasure of, the Board. Each member of the Committee shall qualify as an “outside director” under section 162(m) of the Code. If it is
later determined that one or more members of the Committee do not so qualify, actions taken by the Committee prior to such determination shall be valid despite such failure to qualify. 
  
 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 Employees shall be granted
awards, (b) prescribe the terms and conditions of awards, (c) interpret the Plan and the awards, (d) adopt such procedures and subplans as are necessary or appropriate to permit participation in the Plan by Employees who are foreign nationals or
employed outside of the United States, (e) adopt rules for the administration, interpretation and application of the Plan as are consistent therewith, and (f) 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 and/or officers of the Company; provided, however, that the 

  

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Committee may delegate its authority and powers only with respect to awards that are not intended to qualify as performance-based compensation under section
162(m) of the Code. 
  
 SECTION 6 
 GENERAL PROVISIONS 
  
 6.1 Tax Withholding. The Company shall withhold all applicable taxes from any Actual Award, including any federal, state and local taxes (including
the Participant’s FICA obligation). 
  
 6.2 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. For purposes of the Plan, transfer of
employment of a Participant between the Company and any one of its Affiliates (or between Affiliates) shall not be deemed a Termination of Service. 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 and without regard to when during a Performance Period such exercise occurs, to terminate any individual’s employment with or without cause, and to treat him or her without regard to the
effect which such treatment might have upon him or her as a Participant. 
  
 6.3 Participation. No Employee shall have the right to be selected to receive an award under this Plan, or, having been so selected, to be selected to receive a future award. 
  
 6.4 Indemnification. 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 or any award, 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. 
  
 6.5 Successors. All obligations of the Company under the Plan, with
respect to awards granted hereunder, 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. 
  
 6.6 Beneficiary
Designations. If permitted by the Committee, a Participant under the Plan may name a beneficiary or beneficiaries to whom any vested but unpaid award shall be paid in the event of the Participant’s death. Each such designation shall revoke
all prior designations by the Participant and shall be effective only if given in a form and manner acceptable to the 

  

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Committee. In the absence of any such designation, any vested benefits remaining unpaid at the Participant’s death shall be paid to the
Participant’s estate. 
  
 6.7 Nontransferability of
Awards. No award granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will, by the laws of descent and distribution, or to the limited extent provided in Section 6.6. All
rights with respect to an award granted to a Participant shall be available during his or her lifetime only to the Participant. 
  
 6.8 Deferrals. The Committee, in its sole discretion, may permit a Participant to defer receipt of the payment of cash that would otherwise be
delivered to a Participant under the Plan. Any such deferral elections shall be subject to such rules and procedures as shall be determined by the Committee in its sole discretion. 
  
 SECTION 7 
 AMENDMENT, TERMINATION AND DURATION 
  
 7.1
Amendment, Suspension or Termination. The Board, in its sole discretion, may amend or terminate the Plan, or any part thereof, at any time and for any reason. The amendment, suspension or termination of the Plan shall not, without the consent
of the Participant, alter or impair any rights or obligations under any Target Award theretofore granted to such Participant. No award may be granted during any period of suspension or after termination of the Plan. 
  
 7.2 Duration of the Plan. The Plan shall commence on the date
specified herein, and subject to Section 7.1 (regarding the Board’s right to amend or terminate the Plan), shall remain in effect thereafter. 
  
 SECTION 8 
 LEGAL CONSTRUCTION

  
 8.1 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. 
  
 8.2 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. 
  
 8.3 Requirements of Law. The granting of awards under the Plan shall be subject to all applicable laws, rules and
regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required. 
  
 8.4 Governing Law. The Plan and all awards shall be construed in accordance with and governed by the laws of the State of California, but without
regard to its conflict of law provisions. 
  

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 8.5 Captions. Captions are provided herein for convenience only, and shall not serve as a basis
for interpretation or construction of the Plan. 
  
 EXECUTION

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

					
	 	  	VARIAN, INC.
			
	 Dated: November 10, 2003
	  	By:	 	 /s/ Robert R. Christofk II

	 	  	Name:	 	 Robert R. Christofk II

	 	  	Title:	 	 Vice President, Human Resources

  

 8Amended and Restated Change in Control Agreement, dated 12/31/2003

 Exhibit 10.16 
  
 AMENDED AND RESTATED CHANGE IN CONTROL AGREEMENT 
  
 THIS AMENDED AND RESTATED CHANGE IN CONTROL AGREEMENT (“Agreement”) is entered into effective as of December 31,
2003, by and between VARIAN, INC., a Delaware corporation (the “Company”)1, and Garry W. Rogerson, an
employee of the Company (“Employee”). 
  
 The
Company’s Board of Directors (the “Board”) has determined that it is in the best interest of the Company and its stockholders for the Company to agree to pay Employee termination compensation in the event Employee should leave the
employ of the Company under the circumstances described below. The Board recognizes that the possibility of a proposal from a third person, whether or not solicited by the Company, concerning a possible “Change in Control” of the Company
(as such language is defined in Section 3(d)) will be unsettling to Employee. Therefore, the arrangements set forth in this Agreement are being made to help assure a continuing dedication by Employee to Employee’s duties to the Company
notwithstanding the proposal or occurrence of a Change in Control. The Board believes it imperative, should the Company receive any proposal from a third party, that Employee, without being influenced by the uncertainties of Employee’s own
situation, be able to assess and advise the Board whether such proposals are in the best interest of the Company and its stockholders, and to enable Employee to take action regarding such proposals as the Board might determine to be appropriate. The
Board also wishes to demonstrate to key personnel that the Company desires to enhance management relations and its ability to retain and, if needed, to attract new management, and intends to ensure that loyal and dedicated management personnel are
treated fairly. 
  
 In view of the foregoing, the Company and
Employee agree as follows: 
  

	1.	EFFECTIVE DATE AND TERM OF AGREEMENT. 

  
 This Agreement is effective and binding on the Company and Employee as of the date hereof; provided, however, that, subject to Section 2(d), the
provisions of Sections 3 and 4 shall become operative only upon the Change in Control Date. 
  

	2.	EMPLOYMENT OF EMPLOYEE. 

  
 (a) Except as provided in Sections 2(b), 2(c) and 2(d), nothing in this Agreement shall affect any right which Employee may otherwise have to terminate
Employee’s employment, nor shall anything in this Agreement affect any right which the Company may have to terminate Employee’s employment at any time in any lawful manner. 

	1	“Company” shall include the Company, any successor to the Company’s business and/or assets, and any party which executes and delivers the agreement
required by Section 6(e) or which otherwise becomes bound by the terms and conditions of this Agreement by operation of law or otherwise. 

 (b) In the event of a Potential Change in Control, to be entitled to receive the benefits provided by
this Agreement, Employee will not voluntarily leave the employ of the Company, and will continue to perform Employee’s regular duties and the services specified in the recitals of this Agreement until the Change in Control Date. Should Employee
voluntarily terminate employment prior to the Change in Control Date, this Agreement shall lapse upon such termination and be of no further force or effect. 
  
 (c) If Employee’s employment terminates on or after the Change in Control Date, the Company will provide to Employee the payments and benefits as
provided in Sections 3 and 4. 
  
 (d) If Employee’s
employment is terminated by the Company prior to the Change in Control Date but on or after a Potential Change in Control Date, then the Company will provide to Employee the payments and benefits as provided in Sections 3 and 4 unless the Company
reasonably demonstrates that Employee’s termination of employment neither (i) was at the request of a third party who has taken steps reasonably calculated to effect a Change in Control nor (ii) arose in connection with or in anticipation of a
Change in Control. Solely for purposes of determining the timing of payments and the provision of benefits in Sections 3 and 4 under the circumstances described in this Section 2(d), Employee’s date of termination shall be deemed to be the
Change in Control Date. 
  

	3.	TERMINATION FOLLOWING CHANGE IN CONTROL. 

  
 (a) If a Change in Control shall have occurred, Employee shall be entitled to the benefits provided in Section 4 upon the subsequent termination of
Employee’s employment within the applicable period set forth in Section 4 unless such termination is due to Employee’s death or Disability or is for Cause or is effected by Employee other than for Good Reason (as such terms are defined in
Section 3(d)). 
  
 (b) If following a Change in Control,
Employee’s employment is terminated by reason of Employee’s death or Disability, Employee shall be entitled to death or long-term disability benefits from the Company no less favorable than the most favorable benefits to which Employee
would have been entitled had the death or Disability occurred at any time during the period commencing one (1) year prior to the Change in Control. 
  
 (c) If Employee’s employment shall be terminated by the Company for Cause or by Employee other than for Good Reason during the term of this
Agreement, the Company shall pay Employee’s Base Salary through the date of termination at the rate in effect at the time notice of termination is given, and the Company shall have no further obligations to Employee under this Agreement.

  
 (d) For purposes of this Agreement: 
  
 “Base Salary” shall mean the annual base salary paid to Employee
immediately prior to a Change in Control, provided that such amount shall in no event be less than the annual base salary paid to Employee during the one (1) year period immediately prior to the Change in Control. 
  

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 A “Change in Control” shall be deemed to have occurred if: 
  
 (i) Any individual or group constituting a “person”, as such term
is used in Sections l3(d) and l4(d)(2) of the Exchange Act (other than (A) the Company or any of its subsidiaries or (B) any trustee or other fiduciary holding securities under an employee benefit plan of the Company or of any of its subsidiaries),
is or becomes the beneficial owner, directly or indirectly, of securities of the Company representing thirty percent (30%) or more of the combined voting power of the Company’s outstanding securities then entitled ordinarily (and apart from
rights accruing under special circumstances) to vote for the election of directors; or 
  
 (ii) Continuing Directors cease to constitute at least a majority of the Board; or 
  
 (iii) there occurs a reorganization, merger, consolidation or other corporate transaction involving the Company (a “Transaction”), in each case
with respect to which the stockholders of the Company immediately prior to such Transaction do not, immediately after the Transaction, own more than 50% of the combined voting power of the Company or other corporation resulting from such
Transaction; or 
  
 (iv) all or substantially all of the assets of
the Company are sold, liquidated or distributed; 
  
 provided, however,
that a “Change in Control” shall not be deemed to have occurred under this Agreement if, prior to the occurrence of a specified event that would otherwise constitute a Change in Control hereunder, the disinterested Continuing Directors
then in office, by a majority vote thereof, determine that the occurrence of such specified event shall not be deemed to be a Change in Control with respect to Employee hereunder if the Change in Control results from actions or events in which
Employee is a participant in a capacity other than solely as an officer, employee or director of the Company. 
  
 “Change in Control Date” shall mean the date on which a Change in Control occurs. 
  
 “Cause” shall mean: 
  
 (i) The continued willful failure of Employee to perform Employee’s duties to the Company (other than any such failure resulting from Employee’s
incapacity due to physical or mental illness) after written notice thereof (specifying the particulars thereof in reasonable detail) and a reasonable opportunity to be heard and cure such failure are given to Employee by the Board or a committee
thereof; or 
  
 (ii) The willful commission by Employee of a
wrongful act that caused or was reasonably likely to cause substantial damage to the Company, or an act of fraud in the performance of Employee’s duties on behalf of the Company; or 
  
 (iii) The conviction of Employee for commission of a felony in connection with the performance of Employee’s duties on
behalf of the Company; or 
  

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 (iv) The order of a federal or state regulatory authority having jurisdiction over the Company or its
operations or by a court of competent jurisdiction requiring the termination of Employee’s employment by the Company. 
  
 “Continuing Directors” shall mean the directors of the Company in office on the date hereof and any successor to any such director who was
nominated or selected by a majority of the Continuing Directors in office at the time of the director’s nomination or selection and who is not an “affiliate” or “associate” (as defined in Regulation 12B under the Exchange
Act) of any person who is the beneficial owner, directly or indirectly, of securities representing ten percent (10%) or more of the combined voting power of the Company’s outstanding securities then entitled ordinarily to vote for the election
of directors. 
  
 “Disability” shall mean
Employee’s incapacity due to physical or mental illness such that Employee shall have become qualified to receive benefits under the Company’s long-term disability plan as in effect on the date of the Change in Control. 
  
 “Dispute” shall mean, in the case of termination of Employee’s
employment for Disability or Cause, that Employee challenges the existence of Disability or Cause, and in the case of termination of Employee’s employment for Good Reason, that the Company challenges the existence of Good Reason for termination
of Employee’s employment. 
  
 “Exchange Act” means
the Securities Exchange Act of 1934, as amended. 
  
 “Good
Reason” shall mean: 
  
 (i) The failure to appoint Employee
as Chief Executive Officer of the combined or acquiring entity, reporting to its Board of Directors; or 
  
 (ii) A reduction of Employee’s total compensation as the same may have been increased from time to time after the Change in Control Date other than
(A) a reduction implemented with the consent of Employee or (B) a reduction that is generally comparable (proportionately) to compensation reductions imposed on senior executives of the Company generally; or 
  
 (iii) The failure to provide to Employee the benefits and perquisites,
including participation on a comparable basis in the Company’s stock option, incentive, and other similar plans in which employees of the Company of comparable title and salary grade participate, as were provided to Employee immediately prior
to a Change in Control, or with a package of benefits and perquisites that are substantially comparable in all material respects to such benefits and perquisites provided prior to the Change in Control; or 
  
 (iv) The relocation of the office of the Company where Employee is employed
immediately prior to the Change in Control Date (the “CIC Location”) to a location which is more than 50 miles away from the CIC Location or the Company’s requiring Employee to be based more than 50 miles away from the CIC Location
(except for required travel on the Company’s business to an extent substantially consistent with Employee’s customary business travel obligations in the ordinary course of business prior to the Change in Control Date); or 
  

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 (v) The failure of the Company to obtain promptly upon any Change in Control the express written
assumption of an agreement to perform this Agreement by any successor as contemplated in Section 6(e); or 
  
 (vi) The attempted termination of Employee’s employment for Cause on grounds insufficient to constitute a basis of termination for Cause under this
Agreement; or 
  
 (vii) The failure of the Company to promptly
make any payment into escrow when so required by Section 3(f). 
  
 “Potential Change in Control” shall mean the earliest to occur of (a) the execution of an agreement or letter of intent, the consummation of the transactions described in which would result in a Change in Control, (b) the approval
by the Board of a transaction or series of transactions, the consummation of which would result in a Change in Control, or (c) the public announcement of a tender offer for the Company’s voting stock, the completion of which would result in a
Change in Control; provided, that no such event shall be a “Potential Change in Control” unless (i) in the case of any agreement or letter of intent described in clause (a), the transaction described therein is subsequently
consummated by the Company and the other party or parties to such agreement or letter of intent and thereupon constitutes a “Change in Control”, (ii) in the case of any Board-approved transaction described in clause (b), the transaction so
approved is subsequently consummated and thereupon constitutes a “Change in Control” or (iii) in the case of any tender offer described in clause (c), such tender offer is subsequently completed and such completion thereupon constitutes a
“Change in Control”. 
  
 “Potential Change in
Control Date” shall mean the date on which a Potential Change in Control occurs. 
  
 (e) Any termination of employment by the Company or by Employee shall be communicated by written notice, specify the date of termination, state the specific basis for termination and set forth in reasonable detail the
facts and circumstances of the termination in order to provide a basis for determining the entitlement to any payments under this Agreement. 
  
 (f) If within thirty (30) days after notice of termination is given, the party to whom the notice was given notifies the other party that a Dispute
exists, the parties will promptly pursue resolution of such Dispute with reasonable diligence; provided, however, that pending resolution of any such Dispute, the Company shall pay 75% of any amounts which would otherwise be due Employee
pursuant to Section 4 if such Dispute did not exist into escrow pending resolution of such Dispute and pay 25% of such amounts to Employee. Employee agrees to return to the Company such amounts to which it is ultimately determined that he is not
entitled. 
  

	4.	PAYMENTS AND BENEFITS UPON TERMINATION. 

  
 (a) If within eighteen (18) months after a Change in Control, the Company terminates Employee’s employment other than by reason of Employee’s
death, Disability or for Cause, or if Employee terminates Employee’s employment for Good Reason, then the Employee shall be entitled to the following payments and benefits: 
  

 5 

 (i) The Company shall pay to Employee as compensation for services rendered, no later than five (5)
business days following the date of termination, a lump sum severance payment equal to 2.99 multiplied by the sum of (A) Employee’s Base Salary, (B) the highest annual bonus that was paid to Employee in any of the three fiscal years ending
prior to the date of termination under the Company’s Management Incentive Plan (the “MIP”), and (C) the highest cash bonus for a performance period of more than one fiscal year that was paid to Employee in any of the three fiscal
years ending prior to the date of termination under the MIP. 
  
 (ii) The Company shall pay to Employee as compensation for services rendered, no later than five (5) business days following the date of termination, a lump sum payment equal to a pro rata portion (based on the number of days elapsed during
the fiscal year and/or other bonus performance period in which the termination occurs) of Employee’s target bonus under the MIP for the fiscal year and for any other partially completed bonus performance period in which the termination occurs.

  
 (iii) All waiting periods for the exercise of any stock
options granted to Employee and all conditions or restrictions of any restricted stock granted to Employee shall terminate, and all such options shall be exercisable in full according to their terms, and the restricted stock shall be transferred to
Employee as soon as reasonably practicable thereafter. 
  
 (iv)
Employee’s participation as of the date of termination in the life, medical/dental/vision and disability insurance plans and financial/tax counseling plan of the Company shall be continued on the same terms (including any cost sharing) as if
Employee were an employee of the Company (or equivalent benefits shall be provided) until the earlier of Employee’s commencement of substantially equivalent full-time employment with a new employer or twenty-four (24) months after the date of
termination; provided, however, that after the date of termination, Employee shall no longer be entitled to receive Company-paid executive physicals or, upon expiration of the applicable memberships, Company-paid airline memberships. In the
event Employee shall die before the expiration of the period during which the Company is required to continue Employee’s participation in such insurance plans, the participation of Employee’s surviving spouse and family in the
Company’s insurance plans shall continue throughout such period. 
  
 (v) Employee may elect upon termination to purchase any automobile then in the possession of Employee and subject to a lease of which the Company is the lessor by payment to the Company of the residual value set forth in the lease, without
any increase for remaining lease payments during the term or other lease breakage costs. Employee may elect to have any such payment deducted from any payments due the Employee hereunder. 
  
 (vi) The entire balance credited to Employee’s account under the Company’s Supplemental Retirement Plan shall, no
later than five (5) business days following the date of termination, be paid lump sum in cash to Employee. 
  
 (vii) The termination of Employee’s employment with the Company shall constitute a “retirement” from the Company for purposes of all
Company compensation and benefits plans and programs to the extent Employee is otherwise eligible for “retirement” as defined by the Company immediately prior to the Change in Control. 
  

 6 

 (viii) All payments and benefits provided under this Agreement shall be subject to applicable tax
withholding. 
  
 (b) Following Employee’s termination of
employment for any reason, the Company shall have the unconditional right to reduce any payments owed to Employee hereunder by the amount of any due and unpaid principal and interest on any loans by the Company to Employee and Employee hereby agrees
and consents to such right on the part of the Company. 
  

	5.	GROSS-UP PAYMENT. 

  
 (a) Notwithstanding anything herein to the contrary, if it is determined that any Payment would be subject to the excise tax imposed by Section 4999 of
the Internal Revenue Code of 1986, as amended (the “Code”), or any interest or penalties with respect to such excise tax (such excise tax, together with any interest or penalties thereon, is herein referred to as an “Excise
Tax”), then Employee shall be entitled to an additional payment (a “Gross-Up Payment”) in an amount that will place Employee in the same after-tax economic position that Employee would have enjoyed if the Excise Tax had not applied to
the Payment. The amount of the Gross-Up Payment shall be determined by a nationally-recognized independent public accounting firm designated by agreement between Employee and the Company (the “Accounting Firm”). No Gross-Up Payments shall
be payable hereunder if the Accounting Firm determines that the Payments are not subject to an Excise Tax. 
  
 “Payment” means (i) any amount due or paid to Employee under this Agreement, (ii) any amount that is due or paid to Employee under any plan,
program or arrangement of the Company and its subsidiaries and (iii) any amount or benefit that is due or payable to Employee under this Agreement or under any plan, program or arrangement of the Company and its subsidiaries not otherwise covered
under clause (i) or (ii) hereof which must reasonably be taken into account under Section 280G of the Code in determining the amount the “parachute payments” received by Employee, including, without limitation, any amounts which must be
taken into account under Section 280G of the Code as a result of (A) the acceleration of the vesting of any option, restricted stock or other equity award, (B) the acceleration of the time at which any payment or benefit is receivable by Employee or
(C) any contingent severance or other amounts that are payable to Employee. 
  
 (b) Subject to the provisions of Section 5(c), all determinations required under this Section 5, including whether a Gross-Up Payment is required, the amount of the Payments constituting excess parachute payments, and
the amount of the Gross-Up Payment, shall be made by the Accounting Firm, which shall provide detailed supporting calculations both to Employee and the Company within fifteen days of the date reasonably requested by Employee or the Company on which
a determination under this Section 5 is necessary or advisable. The Company shall pay to Employee the initial Gross-Up Payment within 5 days of the receipt by Employee and the Company of the determination of the Accounting Firm. If the Accounting
Firm determines that no Excise Tax is payable by Employee, the Company shall cause its accountants to provide Employee with an opinion that the Accounting Firm has substantial authority under the Code not to report an Excise Tax on Employee’s
Federal income tax return. Any determination by the Accounting Firm shall be binding upon Employee and the Company. If the initial Gross-Up Payment is insufficient to cover the amount of the Excise Tax that is ultimately determined to be owing by
Employee with respect to any Payment (hereinafter an 

  

 7 

 
“Underpayment”), the Company, after exhausting its remedies under Section 5(c) below, shall promptly pay to Employee an additional Gross-Up Payment
in respect of the Underpayment. 
  
 (c) Employee shall notify the
Company in writing of any claim by the Internal Revenue Service that, if successful, would require the payment by the Company of a Gross-Up Payment. Such notice shall be given as soon as practicable after Employee knows of such claim and shall
apprise the Company of the nature of the claim and the date on which the claim is requested to be paid. Employee agrees not to pay the claim until the expiration of the thirty (30) day period following the date on which Employee notifies the
Company, or such shorter period ending on the date the Taxes with respect to such claim are due (the “Notice Period”). If the Company notifies Employee in writing prior to the expiration of the Notice Period that it desires to contest the
claim, Employee shall: (i) give the Company information reasonably requested by the Company relating to the claim; (ii) take such action in connection with the claim as the Company may reasonably request, including, without limitation, accepting
legal representation with respect to such claim by an attorney reasonably selected by the Company and reasonably acceptable to Employee; (iii) cooperate with the Company in good faith in contesting the claim; and (iv) permit the Company to
participate in any proceedings relating to the claim. Employee shall permit the Company to control all proceedings related to the claim and, at its option, permit the Company to pursue or forgo any and all administrative appeals, proceedings,
hearings, and conferences with the taxing authority in respect of such claim. If requested by the Company, Employee agrees either to pay the tax claimed and sue for refund or contest the claim in any permissible manner and to prosecute such contest
to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts as the Company shall determine; provided, however, that, if the Company directs Employee to pay such claim and
pursue a refund, the Company shall advance the amount of such payment to Employee on an after-tax and interest-free basis (an “Advance”). The Company’s control of the contest related to the claim shall be limited to the issues related
to the Gross-Up Payment and Employee shall be entitled to settle or contest, as the case may be, any other issues raised by the Internal Revenue Service or other taxing authority. If the Company does not notify Employee in writing prior to the end
of the Notice Period of its desire to contest the claim, the Company shall pay to Employee an additional Gross-Up Payment in respect of the excess parachute payments that are the subject of the claim, and Employee agrees to pay the amount of the
Excise Tax that is the subject of the claim to the applicable taxing authority in accordance with applicable law. 
  
 (d) If, after receipt by Employee of an Advance, Employee becomes entitled to a refund with respect to the claim to which such Advance relates, Employee
shall pay the Company the amount of the refund (together with any interest paid or credited thereon after Taxes applicable thereto). If, after receipt by Employee of an Advance, a determination is made that Employee shall not be entitled to any
refund with respect to the claim and the Company does not promptly notify Employee of its intent to contest the denial of refund, then the amount of the Advance shall not be required to be repaid by Employee and the amount thereof shall offset the
amount of the additional Gross-Up Payment then owing to Employee. 
  
 (e) The Company shall indemnify Employee and hold Employee harmless, on an after-tax basis, from any costs, expenses, penalties, fines, interest or other liabilities (“Losses”) incurred by Employee with respect to the exercise by
the Company of any of its rights under this Section 5, including, without limitation, any Losses related to the Company’s decision to contest a claim or any imputed income to Employee resulting from any Advance or action taken on 

  

 8 

 
Employee’s behalf by the Company hereunder. The Company shall pay all legal fees and expenses incurred under this Section 5, and shall promptly
reimburse Employee for the reasonable expenses incurred by Employee in connection with any actions taken by the Company or required to be taken by Employee hereunder. The Company shall also pay all of the fees and expenses of the Accounting Firm,
including, without limitation, the fees and expenses related to the opinion referred to in Section 5(b). 
  

	6.	GENERAL. 

  
 (a) Employee shall retain in confidence under the conditions of the Company’s confidentiality agreement with Employee any proprietary or other
confidential information known to Employee concerning the Company and its business so long as such information is not publicly disclosed and disclosure is not required by an order of any governmental body or court. If required, Employee shall return
to the Company any memoranda, documents or other materials proprietary to the Company. 
  
 (b) While employed by the Company and following the termination of such employment (other than a termination of employment by Employee for Good Reason or by the Company other than for Cause) for a period of two (2)
years, Employee shall not: 
  
 (i) whether for Employee’s
own account or for the account of any other individual, partnership, firm, corporation or other business organization, intentionally solicit, endeavor to entice away from the Company or a subsidiary of the Company (each, a “Protected
Party”), or otherwise interfere with the relationship of a Protected Party with, any person who is employed by a Protected Party or any person or entity who is, or was within the then most recent twelve (12) month period, a customer or client
of a Protected Party; or 
  
 (ii) without the prior written
consent of the Protected Party, in any geographic area in which the Protected Party is then conducting business, directly or indirectly own an interest in, manage, operate, join, control, lend money or render financial or other assistance to or
participate in or be connected with, as an officer, employee, partner, stockholder, consultant or otherwise, any individual, partnership, firm, corporation or other business organization or entity that is engaged in any business in which the
Protected Party is actively engaged at the time; provided, however, that the restrictions in this Section 6(b)(ii) shall not apply to (A) any non-employee directorships held by Employee as of the date hereof or (B) ownership by Employee for
personal investment purposes only of not in excess of 1% of the voting stock of any publicly held corporation. 
  
 Employee acknowledges that a breach of any of the covenants contained in this Section 6(b) may result in material irreparable injury to the Company for
which there is no adequate remedy at law, that it may not be possible to measure damages for such injuries precisely and that, in the event of such a breach, any payments remaining under the terms of this Agreement shall cease and the Company may be
entitled to obtain a temporary restraining order and/or a preliminary or permanent injunction restraining Employee from engaging in activities prohibited by this Section 6(b) or such other relief as may be required to specifically enforce all of the
covenants in this Section 6(b). Employee agrees to and hereby does submit to in personam jurisdiction before each and every such court in the State of California, County of Santa Clara, for that purpose. This Section 6(b) shall survive any
termination of this Agreement. 
  

 9 

 (c) If litigation is brought by Employee to enforce or interpret any provision contained in this
Agreement, the Company shall indemnify Employee for Employee’s reasonable attorney’s fees and disbursements incurred in such litigation and pay prejudgment interest on any money judgment obtained by Employee calculated at the prime rate of
interest in effect from time to time at the Bank of America, San Francisco, from the date that payment should have been made under the Agreement, provided that Employee shall not have been found by the court in which such litigation is pending to
have had no cause in bringing the action, or to have acted in bad faith, which finding must be final with the time to appeal therefrom having expired and no appeal having been taken. 
  
 (d) Except as provided in Section 4, the Company’s obligation to pay to Employee the compensation and to make the
arrangements provided in this Agreement shall be absolute and unconditional and shall not be affected by any circumstance, including, without limitation, any setoff, counterclaim, recoupment, defense or other right which the Company may have against
Employee or anyone else. All amounts payable by the Company hereunder shall be paid without notice or demand. Employee shall not be required to mitigate the amount of any payment provided for in this Agreement by seeking other employment.

  
 (e) The Company shall require any successor, whether direct or
indirect, by purchase, merger, consolidation or otherwise, to all or substantially all of the business and/or assets of the Company, by written agreement to expressly assume and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform it if no such succession had taken place. 
  
 (f) This Agreement shall inure to the benefit of and be enforceable by Employee’s heirs, successors and assigns. If Employee should die while any amounts would still be payable to Employee hereunder if Employee
had continued to live, all such amounts shall be paid in accordance with the terms of this Agreement to Employee’s heirs, successors and assigns. 
  
 (g) For the purposes of this Agreement, notices and all other communications provided for in this Agreement shall be in writing and shall be deemed to
have been duly given when delivered or mailed by United States registered mail, return receipt requested, postage prepaid, addressed as follows: 
  

			
	 If to Employee:
	 	 If to the Company:

		
	 17300 Phillips Avenue
	 	 Varian, Inc.

	 Los Gatos, CA 95030
	 	 3120 Hansen Way

	 	 	 Palo Alto, CA 94304-1030

	 	 	 Attn: Vice President, Human Resources

  
 or to such other address as either
party furnishes to the other in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt. 
  
 (h) This Agreement shall constitute the entire agreement between Employee and the Company concerning the subject matter of this Agreement. 
  

 10 

 (i) The validity, interpretation, construction and performance of this Agreement shall be governed by the
laws of the State of California without giving effect to the provisions, principles or policies thereof relating to choice or conflict of laws. The invalidity or unenforceability of any provision of this Agreement in any circumstance shall not
affect the validity or enforceability of such provision in any other circumstance or the validity or enforceability of any other provision of this Agreement, and, except to the extent such provision is invalid or unenforceable, this Agreement shall
remain in full force and effect. Any provision in this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective only to the extent of such prohibition or unenforceability without invalidating
or affecting the remaining provisions hereof in such jurisdiction, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. This Section 6(i) shall
survive any termination of this Agreement. 
  
 (j) This Agreement
may be terminated by the Company pursuant to a resolution adopted by the Board at any time prior to a Potential Change in Control Date. After a Change in Control Date or a Potential Change in Control Date, this Agreement may only be terminated with
the consent of Employee. 
  
 (k) No agreements or representations,
oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which are not expressly set forth in this Agreement and this Agreement shall supersede all prior agreements, negotiations,
correspondence, undertakings and communications of the parties, oral or written, with respect to the subject matter hereof including, without limitation, the Amended and Restated Change in Control Agreement between Employee and the Company dated as
of February 7, 2003. 
  
 IN WITNESS WHEREOF, the parties
acknowledge that they have read and understand the terms of this Agreement and have executed this Agreement to be effective as of December 31, 2003. 
  

					
	VARIAN, INC.	  	EMPLOYEE
		
	 /s/    ARTHUR W. HOMAN

	  	 /s/    GARRY W. ROGERSON

	By:	  	Arthur W. Homan	  	Garry W. Rogerson
	Title:	  	Vice President, General Counsel	  	 
	 	  	and Secretary	  	 

  

 11

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