Document:

Senior Secured Promissory Note and Security Agreement

 Exhibit 10.1 
 Senior Secured Promissory Note and Security Agreement 
  

			
	Aggregate Principal Amount:	  	
	US $8,000,000.00	  	April 24,2012

 IFMI, LLC, a Delaware limited liability company (the
“Company” or “Maker”), having an address at 2929 Arch Street, 17th Floor, Philadelphia, PA 19104, for value received, hereby promises to pay to the order of PrinceRidge Holdings LP, a Delaware limited liability partnership (the “Payee”), the principal
amount of Eight Million and 00/100 Dollars ($8,000,000.00), or so much thereof as shall have been advanced and shall remain unpaid, plus interest on the principal balance thereof from time to time outstanding until the date paid, at the rates set
forth below. This Senior Secured Promissory Note (this “Note”) is made in connection with the exercise of an option to borrow pursuant to Section 5.05(b) of the Fourth Amended and Restated Limited Liability Company Agreement,
dated as of May 31, 2011, of PrinceRidge Partners LLC, a Delaware limited liability company (“PrinceRidge LLC”) and Section 5.05(b) of the Fourth Amended and Restated Limited Partnership Agreement, dated as of May 31,
2011, of PrinceRidge Holdings LP (collectively referred to herein as the “Partnership Agreements”). All capitalized terms used herein and not otherwise defined shall have the same meaning ascribed to them in the Partnership
Agreements. 
 The Maker shall pay interest on the unpaid balance of such principal amount from the date
hereof until the aggregate principal amount is paid in full as set forth herein. Interest shall be payable quarterly on the 10th day of each of August and November 2012 and February 2013, with the final payment due on the date that is one year
from the date of the initial advance under this Note (the “Maturity Date”), in cash at a rate equal to ten percent (10%) per annum (“Interest”). All payments of principal, Interest and fees shall be made in
lawful money of the United States of America in cash or by wire transfer at the address of Payee set forth on the signature page hereof or such other address as Payee may designate in writing to the Maker. All payments hereunder shall be made
without reduction by reason of any set-off, defense or counter-claim whatsoever. The entire unpaid principal balance of this Note and all accrued and unpaid interest thereon, together with all other amounts due and payable hereunder, shall, unless
sooner accelerated in accordance with the terms of this Note, be due and payable in full on the Maturity Date. 
 The Maker may
borrow amounts hereunder from time to time upon written request to Payee for an advance, but in no event shall Payee be required to make any advance hereunder after May 10, 2012. Payee shall have no obligation to make any advance hereunder if
making the same would cause the total amount advanced under this Note to exceed Eight Million and No/100 Dollars ($8,000,000.00). The Maker will request advances hereunder by executing and delivering to Payee a written request for advance and
certification, which will include a certification from the Maker that all representations and warranties made herein by the Maker are true and correct in all respects as of the date of the requested advance, and that no default or Event of Default
is continuing hereunder. Subject to the provisions hereof, Payee shall make the requested advance within two business days after receipt of such written request for advance and certification. 

 1. Representation and Warranties. The Maker represents and warrants to Payee that:

 (a) It is a limited liability company duly organized and validly existing in good standing under the laws of its jurisdiction
of organization with full power and authority to execute, deliver and perform this Note, that this Note has been duly authorized, executed and delivered by it and constitutes its legal, valid, binding and enforceable obligation and that the
execution, delivery and performance of this Note does not and will not violate, constitute a default under or result in a breach of its constitutive documents, any applicable laws or regulations or any material contract, agreement or instrument to
which it is a party or by which it or its property may be bound or subject. 
 (b) The execution and delivery of this Note and
grant of a security interest by Maker, and the performance by Maker of its obligations set forth herein, do not require the consent or approval of any person or entity which has not already been obtained. 

(c) Maker has conducted its business and operations in compliance with all applicable laws except to the extent that non-compliance
therewith would not have a material adverse effect on Maker. Maker is not in default beyond any applicable cure periods under Maker’s certificate of formation or operating agreement. Maker is not in default beyond any applicable cure periods
under any material agreement to which it is a party or by which any of its property may be bound except to the extent that any such default would not have a material adverse effect on Maker, and Maker is not in default with respect to any existing
indebtedness due third persons. 
 (d) Other than as disclosed in publicly available filings with the Securities and Exchange
Commission (the “SEC”) filed by the parent of Maker (“Parent”) on or after December 31, 2010 (collectively, the “SEC Filings”), Maker has filed all federal, state and local tax returns and
other related reports required by any laws to be filed and which are, in each case, material to the conduct of its business, has paid or caused to be paid all taxes, assessments and other governmental charges that are due and payable (except to the
extent that they are being challenged in good faith), and has made adequate provision for the payment of such taxes, assessments or other charges accruing but not yet payable, except for, in each case, such taxes, assessments and other charges as
would not, in the aggregate, have a material adverse effect on Maker, Maker’s ability to repay this Note, or Payee’s interest in the Collateral. Other than with respect to uncertain tax positions disclosed in the SEC Filings, Maker has no
knowledge of any deficiency or additional assessment in connection with any taxes, assessments or charges due from Maker. 
 (e)
No representation or warranty by Maker contained in this Note, or in any document or financial statements submitted to Payee to obtain the credit evidenced by this Note and set forth on Schedule 1(e) hereto, contains any untrue
statement of material fact or omits to state a material fact necessary to make such representation or warranty not misleading in light of the circumstances under which it was made. Other than as may be disclosed in the SEC Filings, Maker is not
aware of any fact which has not been disclosed to Payee in writing which either Maker has determined or Payee has determined (and has notified Maker in writing) materially adversely affects, or which Maker has determined or Payee has determined (and
has notified Maker in writing) will materially adversely affect, the properties, business, profit or condition 

  
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(financial or otherwise) of Maker, or the ability of Maker to perform its obligations under this Note. 
 (f) The audited statement of operations and statement of cash flows for the period ended December 31, 2011 and the audited balance sheet as of December 31, 2011, along with the notes thereto,
all of which is contained in the Annual Report on Form 10-K filed by Parent with the SEC on March 9, 2012, (i) present fairly the financial condition of Parent, together with its consolidated subsidiaries (including Maker), and the results
of Parent’s consolidated operations (including Maker) for the period indicated therein, (ii) were prepared in accordance with generally accepted accounting principles, consistently applied (“GAAP”), (iii) with respect
to all historical data, are true and accurate in all material respects as of the date thereof, and (iv) are not misleading in any material respect. Other than as may be listed on Schedule 1(f) hereto, there has been no material
adverse change in the business, property or condition (financial or otherwise) of Maker since the date of such financial statements. Each Form 10-K and Form 10-Q required by the SEC to be made by Parent since January 1, 2010 has been filed as
and when required (except to the extent appropriate extensions have been obtained and remain in effect), and to Maker’s knowledge, each other filing required by the SEC to be made by Parent since January 1, 2010 has been filed as and when
required (except to the extent appropriate extensions have been obtained and remain in effect). Neither Parent nor Maker has received written notice of any violation of any law, rule or regulation of the SEC by Parent that has not been disclosed in
the SEC Filings or to Payee in writing. 
 (g) Other than as disclosed in the SEC Filings or to the Payee in writing, there are
no actions or proceedings pending, or to Maker’s knowledge, threatened against Maker or any of its property, at law or in equity, or by or before any governmental instrumentality or agency which affects the validity or priority of this Note or
the ability of Maker to fulfill its obligations hereunder. 
 (h) Both immediately prior to and immediately after giving effect
to the transactions contemplated by the terms and provisions of this Note, (i) Maker owned and owns assets whose fair value was and is greater than the amount required to pay all of Maker’s debts (including contingent debts),
(ii) Maker was and is able to pay all of its debts as such debts come due, and (iii) Maker had and has capital sufficient to carry on its business and transactions and all business and transactions in which it is about to engage, in each
case (clauses (i) through (iii)) as determined in accordance with applicable law. 
 (i) Other than as may be disclosed in
the SEC Filings, there are no transactions, arrangements or other relationships between and/or among the Maker or any of its affiliates (as such term is defined in Rule 405 of the Securities Act of 1933, as amended), on the one hand, and any
unconsolidated entity, including, but not limited to, any structured finance, special purpose or limited purpose entity, on the other hand, that could materially adversely affect the Maker’s or any of its affiliates’ liquidity or the
availability of or requirements for their capital resources that have not been disclosed to Payee in writing. 
 (j) Other than
as may be disclosed in the SEC Filings, there are no outstanding loans, advances (except normal advances for business expenses in the ordinary course of business) or guarantees or indebtedness by the Maker or any of its affiliates to or for

  
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the benefit of any of the officers or directors of the Maker, any of its affiliates or any of their respective family members. 

Notwithstanding the foregoing, none of the representations and warranties contained in this Section 1 shall be deemed to cover or
apply to Payee or the business of Payee; provided, that for purposes of Section 1(h)(i) Maker’s current interest in Payee shall be included in Maker’s total assets and for purposes of Section 1(h)(ii) the outstanding principal
amount of this Note shall be included in Maker’s total liabilities. 
 Payee acknowledges and represents that neither the
current PrinceRidge Managers (as defined in the Partnership Agreements) nor the General Counsel of PrinceRidge has actual (and not imputed) knowledge (without any implied duty to investigate) as of the date hereof that any representation or warranty
made herein by Maker is untrue. 
 2. Affirmative Covenants. So long as any amount remains unpaid hereunder, Maker
covenants and agrees as follows: 
 (a) Maker will promptly pay and discharge when due all federal, state and other governmental
taxes, assessments, fees and charges imposed upon it, or upon any of its properties or assets, other than such taxes, assessments, fees, and charges as may be challenged in good faith by Maker or which would not, in the aggregate, have a material
adverse effect on Maker, Maker’s ability to repay this Note, or Payee’s interest in the Collateral. 
 (b) The primary
use of the proceeds of the loan made hereunder shall be to distribute funds to Parent to satisfy early redemptions of the 7-5/8% convertible notes issued by Parent. Maker may also use the proceeds hereof for working capital and general corporate
purposes. 
 (c) Maker will promptly upon the request of Payee provide to Payee such other reasonable information and/or
reasonable reports relating to Maker’s business, operations, properties or prospects as Payee may from time to time reasonably request, provided that Maker shall not be required to develop reports or provide information that are not readily
available on its current accounting systems, and provided, further, that Maker shall not be required to provide such information or reports with respect to JVB Financial Holdings, L.L.C. and its subsidiaries other than on a consolidated basis with
Maker’s other businesses and operations. 
 (d) Maker will maintain its company existence in its state of organization.
Maker will maintain its good standing status in its state of organization except to the extent that any failure to maintain such good standing status would not have a material adverse effect on Maker. 

(e) Promptly upon the occurrence thereof, Maker will provide Payee with written notice of any Event of Default (hereinafter defined), or
any act, event, condition or occurrence that upon the giving of any required notice or the lapse of time, or both, would constitute an Event of Default. In addition, Maker will promptly advise Payee in writing of any condition, act, event or
occurrence which comes to Maker’s attention that would materially prejudice Payee’s rights in connection with any Collateral (hereinafter defined) or this Note, including, if applicable, the material details of any pending or threatened
litigation or any other 

  
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legal or administrative proceeding or investigation pending or threatened against Maker or any lien against the Collateral. Additionally, Maker agrees to provide immediate written notice to Payee
of any default with respect to any material obligation for borrowed money, whether now existing or hereafter created, incurred or arising, or if any such obligation becomes or is declared to be due and payable prior to the expressed maturity
thereof. 
 (f) Maker will conduct its businesses and operations in compliance with (i) all applicable laws and
requirements of all federal, state and local regulatory authorities having jurisdiction, (ii) the provisions of its charter documents, (iii) all agreements and instruments by which it or any of its properties may be bound, and
(iv) all applicable decrees, orders and judgments, except to the extent any violation of the foregoing clauses (i), (iii) or (iv) would not have a material adverse effect on Maker. 

(g) Maker will at all times defend Payee’s and Maker’s rights in the Collateral pledged hereunder, against all persons and all
claims and demands whatsoever, and will, upon request of Payee (i) furnish such further assurances of title as may be reasonably required by Payee, and (ii) do any other acts reasonably necessary to effectuate the purposes and provisions
of this Note, or as required by law or otherwise in order to perfect, preserve, maintain and/or continue the security interests of Payee in the Collateral. 
 3. Negative Covenants. So long as any obligation remains outstanding hereunder or this Note remains in effect, Maker covenants and agrees that, without the prior written consent of Payee, Maker
shall not: 
 (a) Merge or consolidate with any business, company or enterprise unless the surviving entity resulting from such
merger or consolidation expressly assumes the obligations of Maker under this Note. 
 (b) Sell all or substantially all of
Maker’s assets unless the proceeds of such sale are used to fully prepay or otherwise extinguish this Note. 
 (c) Use all
or any part of the loan proceeds to purchase or carry, or to reduce or retire any loan incurred to purchase or carry, any margin stocks (within the meaning of Regulations U, T and X of the Board of Governors of the Federal Reserve System) or to
extend credit to others for the purpose of purchasing or carrying any such margin stocks. 
 (d) Reincorporate or reorganize
itself under the laws of any jurisdiction other than the jurisdiction in which it is incorporated as of the date hereof or change its name or corporate form, in each case without providing at least 10 days prior written notice to Payee. 

(e) At any time do or perform any act which materially and adversely affects the interests or rights of Payee under this Note or which
would materially and adversely affect Payee’s rights and/or remedies under this Note with respect to any Collateral and the validity or priority of Payee’s lien on the Collateral. 

(f) Mortgage, assign, pledge, hypothecate or otherwise encumber or permit any lien, security interest or other encumbrance, including
purchase money liens, whether under conditional or installment sales arrangements or otherwise, to affect the Collateral, unless any 

  
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such lien, security interest or other encumbrance is subordinated to Payee’s lien on the Collateral pursuant to a subordination and intercreditor agreement in form and substance acceptable
to Payee and does not adversely affect the priority of Payee’s lien on the Collateral as a first priority lien. 
 (g)
Incur any indebtedness, whether direct or indirect, except for: (i) unsecured indebtedness; (ii) indebtedness outstanding on the date hereof and disclosed in the SEC Filings; (iii) indebtedness that is secured by assets of Maker other
than the Collateral; or (iv) indebtedness that is secured by the Collateral, but only if the lien in connection therewith is junior to Payee’s lien on the Collateral established in Section 5 hereof pursuant to a subordination and
intercreditor agreement in form and substance acceptable to Payee. Notwithstanding the foregoing, the Maker may incur any additional indebtedness if the proceeds of such additional indebtedness shall be used to prepay or otherwise extinguish this
Note. 
 (h) (i) Modify or amend, in any respect, any of the material terms of any outstanding indebtedness permitted hereunder
and issued and/or delivered prior to the date hereof or any of the documents executed in connection therewith if any such modification or amendment would have a material adverse effect on Maker’s ability to pay the obligations hereunder as and
when due, or (ii) make any voluntary prepayments of amounts owing pursuant to such indebtedness, in each case, without the prior written consent of Payee. 
 4. Event of Default. Upon the occurrence of any of the following events (each, an “Event of Default”): 
 (a) the Maker shall fail to pay any principal, Interest or other amount payable in respect of this Note on the date due and otherwise in accordance with the terms hereof; 

(b) the Maker shall default in the observance or performance of any affirmative covenant contained in this Note and that default shall
continue unremedied for a period of ten (10) calendar days following notice given by Payee; 
 (c) the Maker shall default
in the observance or performance of any negative covenant contained in this Note; 
 (d) any representation in this Note shall
have been at the time made untrue in any material respect; 
 (e) if a default beyond any applicable notice or cure period shall
occur in connection with any material obligation of Maker (or any material obligation of a joint venture for which Maker is liable) for the payment of borrowed money, whether now existing or hereafter created, incurred or arising, or if any such
obligations become or are declared to be due and payable prior to the expressed maturity thereof; 
 (f) the Maker shall file a
petition or commence a proceeding under any bankruptcy, insolvency or similar law of any state or any subdivision thereof or any other nation, state or political entity (whether such petition or proceeding is for relief from debts or for the
appointment or authorization of a receiver, trustee, liquidator, custodian or conservator of the Maker or of the whole or substantially all of its property or any other purpose), or there is filed

  
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against the Maker any such petition or commenced against the Maker any such proceeding, and any such petition or proceeding filed or commenced against the Maker remains undismissed for a period
of sixty (60) calendar days, or if the Maker by any act consents to, approves of or expressly acquiesces in any such petition or proceeding; the Maker shall seek relief under any such law; or the Maker shall make an assignment for the benefit
of creditors; or a court of competent jurisdiction shall enter an order, judgment or decree, or enter an order for relief against the Maker in any case commenced under any such law; or 

(g) the Maker shall take any other action, or the occurrence of any other event caused by Maker, which is deemed an Involuntary Transfer
under the Partnership Agreements; then, after Payee notifies Maker of such Event of Default in writing (the “Default Notice”) and a period of thirty (30) days has elapsed after Maker’s receipt of the Default Notice (such 30-day
period, the “Notice Period”) without such Event of Default being cured, Payee may, by written notice to the Maker (the “Acceleration Notice”), declare this Note to be forthwith due and payable, as to principal, Interest and all
other amounts owing hereunder and may exercise all of its rights and remedies against the Collateral as set forth below; provided, however, that upon the occurrence of an Event of Default described in clause (f) above, all amounts due under
this Note shall automatically be due and payable without the requirement of any notice to the Maker or any further act of the Payee. At any time during the Notice Period with respect to any Event of Default, Maker may cure such Event of Default, and
if all then existing Events of Default for which a Default Notice has been provided are cured, no Acceleration Notice shall be provided with respect to such cured Events of Default. The remedies provided herein, which may be exercised only after the
end of the Notice Period and after delivery of the Acceleration Notice, shall be cumulative and in addition to any other remedy available to the Payee under this Note, the Partnership Agreements or under applicable law, or otherwise. No delay on the
part of Payee in exercising any rights hereunder shall operate as a waiver of such rights. For the avoidance of doubt, to the extent that the exercise by Payee of any remedy or right hereunder would require the vote or action of the Board of
Managers of Payee, the exercise of any such remedy or right shall be considered an Interested Transaction pursuant to the terms of the Partnership Agreements, and any foreclosure by the Payee upon the Collateral pursuant to the terms of this Note
shall be an Involuntary Transfer pursuant to the terms of the Partnership Agreements. Nothing herein shall be construed to limit or otherwise infringe upon any rights of Maker during the Notice Period, including its voting rights under the
Partnership Agreements, its rights to designate the IFMI Managers to the Board of Managers, or the rights of any IFMI Manager to vote as a member of the Board of Managers with respect to any matter. Notwithstanding anything set forth in this Note to
the contrary, Payee agrees that following an Event of Default (other than an Event of Default pursuant to clause (f) above), it will not take action to foreclose upon its security interest in the Collateral during the Notice Period. 

5. Grant of Security Interest. To secure all of Maker’s obligations under this Note, Maker hereby grants, pledges, and
transfers to Payee a first priority security interest in all of Maker’s right, title and interest in and to 100% of Maker’s Capital Account in Payee and PrinceRidge LLC and 100% of Maker’s Units in Payee and PrinceRidge LLC held on
the date hereof: including, without limitation, all of Maker’s right, title and interest in and to any and all distributions, proceeds and any other amounts payable to Maker, whether cash or otherwise, with respect to the foregoing, whether now
owned or hereafter acquired (collectively, the “Collateral”). Maker and Payee acknowledge and agree that (i) the balance of Maker’s Capital 

  
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Account in Payee is $38,959,699.90 and in PrinceRidge LLC is $33,277.76 (each as of March 31, 2012), (ii) Maker owns 264,488 Profit Units and 267,153 Equity Units of Payee and 2,500
Profit and Equity Units of PrinceRidge LLC and (iii) Maker owns the Collateral free and clear of all liens, security interests, claims, charges, restrictions and encumbrances whatsoever, and no part of the Collateral is subject to any previous
assignment. Payee shall have all rights and remedies of a secured party under the New York Uniform Commercial Code, and all other applicable laws, provided that Payee shall not be permitted to acquire any of the Collateral or retain the Collateral
for its own account. Except to the extent permitted in this Note, Maker shall keep the Collateral free and clear of all liens, security interests, claims, charges, restrictions and encumbrances whatsoever, and shall not sell, assign, pledge,
transfer, mortgage or otherwise dispose of all or any part of the Collateral. Payee is hereby authorized to file a UCC-1 financing statement (the “UCC-1”) among the records of Maker’s jurisdiction of formation that describes
the Collateral, and Maker hereby represents that upon such filing, Payee shall have a valid and perfected first priority lien on and security interest in the Collateral. Additionally, to further evidence the foregoing security interest, Maker shall
execute and deliver to Payee a blank assignment and assumption agreement with respect to the Units. In addition to all rights and remedies available under the New York Uniform Commercial Code and under other applicable law, Payee shall have the
right for and in the name, place and stead of Maker, to execute endorsements, assignments and other instruments of conveyance or transfer with respect to all or any part of the Collateral following an Event of Default and the expiration of any
applicable Notice Period. In furtherance of the foregoing, Maker hereby irrevocably appoints Payee as Maker’s attorney-in-fact and proxy solely to, following an Event of Default and the expiration of any applicable Notice Period, receive,
endorse and collect all instruments made payable to Maker representing any dividend, interest payment or other distribution in respect of any Collateral and to give full discharge for the same. This power is coupled with an interest and is
irrevocable. In the event of a sale of all or any part of the Collateral by Payee such sale may include a best efforts auction process whereby bids by current holders of Units will be accepted. At the request of Payee, Maker shall execute such
further documents as Payee may from time to time request to record or perfect any sale of the Collateral and/or Collateral assignment to a foreclosure purchaser or to more fully carry out the intent hereof. Maker shall remain liable for any
deficiency resulting from any sale of the Collateral, or any part thereof, in accordance with this Note and shall pay any such deficiency forthwith on demand. Upon payment in full of all obligations under this Note (other than contingent
indemnification claims) and termination of all of Payee’s commitments to lend hereunder, (x) Payee’s lien on the Collateral shall immediately, and without any required action by any party, be released, and (y) Payee shall
promptly file a statement terminating the UCC-1, and if Payee does not file such termination statement within three (3) business days of such payment in full, Maker is hereby authorized to do so. 

6. Prepayment. This Note may be prepaid in whole or in part at any time and from time to time without premium, penalty or fee,
together with Interest accrued on the amount prepaid to the date of any such prepayment. 
 7. Indemnification. The Maker
hereby indemnifies and holds harmless the Payee, its affiliates and each of their respective directors, officers, employees, agents, legal counsel and advisors (each an “Indemnified Party”) from and against any and all actions,
claims, damages, losses, liabilities, fines, penalties, costs and expenses of any kind (including, without limitation, counsel fees and disbursements in connection with any subpoena, investigative, administrative or

  
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judicial proceeding, whether or not the Indemnified Party shall be designated a party thereto) which may be incurred by the Indemnified Party or which may be claimed against the Indemnified
Party, in each case as a result of any claim or action by a third party (other than any member of the Board of the Managers) by reason of or in connection with the execution, delivery or performance of this Note or any transaction contemplated by,
or action taken or omitted to be taken by the Payee under, this Note; provided, however, that no Indemnified Party hereto shall be entitled to indemnification against losses or damages to the extent such losses or damages arise out of such
Indemnified Party’s gross negligence or willful misconduct, as finally determined by a court of competent jurisdiction. Nothing in this paragraph is intended to limit the Maker’s obligations contained elsewhere in this Note or in the
Partnership Agreements. Without prejudice to the survival of any other obligation of the Maker hereunder, the indemnities and obligations of the Maker contained in this paragraph shall survive the payment in full of all obligations hereunder.

 8. Payments by Maker. Except as otherwise provided herein, all payments made by the Maker hereunder will be made
without setoff, counterclaim or other defense. All such payments shall be free and clear of and without deduction for any present or future income, stamp or other taxes, levies, imposts, deductions, charges, fees, withholding, restrictions or
conditions of any nature now or hereafter imposed, levied, collected, withheld or assessed by any jurisdiction or by any political subdivision or taxing authority thereof or therein, and all interest, penalties or similar liabilities. 

9. Waivers. Other than as specifically provided herein, the parties hereto, including the Company and all endorsers of this Note,
hereby waive presentment, demand, notice, protest and all other demands and notices in connection with the delivery, acceptance, performance or enforcement of this Note. Maker hereby acknowledges that all rights and interests of Payee hereunder and
all agreements and liens and all obligations of Maker hereunder, shall remain in full force and effect and shall be absolute and unconditional irrespective of any circumstance which might otherwise constitute a defense available to, or a discharge
of Maker in respect of its obligations hereunder (other than payment in full of this Note and termination of all of Payee’s commitments to lend hereunder). 
 10. Transfers. Payee may not transfer all or any portion of this Note or any of its rights hereunder without the consent of the Company. Upon any such transfer consented to by the Company, the
Company will prepare a new Note in the denomination indicated by Payee, deliver such new Note as instructed by the Payee and make appropriate entries on the Note registry maintained at the Company’s offices. The Company may treat the person in
whose name this Note is registered on the Note registry maintained at such office as the holder hereof for all purposes and the Company shall not be affected by any notice to the contrary. 

11. Successors and Assigns. Subject to Section 10, this Note shall be binding upon and shall inure to the benefit of the
Company, Payee and their respective successors and assigns, provided that the Company may not assign or transfer any of its rights or obligations hereunder without the prior written consent of Payee. 

12. Savings Clause. Notwithstanding the foregoing or any other provision contained in this Note, nothing herein contained shall
authorize or permit the exaction by or payment of 

  
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interest to Payee where the same would be unlawful or prohibited by any applicable law or would violate the applicable usury law of any jurisdiction. In any such event, this Note shall
automatically be deemed amended to permit interest charged at an amount equal to, but not greater than, the maximum permitted by law. 
 13. Payments. Whenever any payment of principal of or interest on this Note or payment of any other amount due hereunder shall be stated to be due on a day that is not a Business Day such payment
shall be due on the next succeeding Business Day and such extension of time shall be included in the computation of the payment of interest, if any, due in connection with any such payment. For the purposes hereof, “Business Day”
shall mean any day other than a Saturday, Sunday or a day on which banking institutions in New York, New York are authorized or required by law to close. 
 14. Amendments. This Note may be amended only by an agreement in writing, which is signed by the party or parties against whom enforcement of any waiver, change, modification or discharge is
sought. 
 15. Notices. Except as otherwise provided herein, all notices, demands and other communications
(“notices”) to either party hereto under this Note shall be in writing and shall be delivered or sent to the attention of the General Counsel, the Chief Operating Officer and the Chief Financial Officer of such party at the address shown
below its name on the signature pages hereof, or to such other address as may be given by proper notice. Any notice given hereunder shall not be deemed effective until actually received. 

16. Expenses. The Maker hereby agrees to pay on demand all costs and expenses (including without limitation, all fees and expenses
of counsel to the Payee) incurred by the Payee in connection with the enforcement of Payee’s rights, and the collection of all amounts due, hereunder. 
 17. Governing Law. THIS NOTE AND ANY DOCUMENTS AND INSTRUMENTS DELIVERED IN CONNECTION HEREWITH AND THE RIGHTS AND DUTIES OF THE MAKER AND PAYEE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED
IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK (EXCLUDING THE LAWS APPLICABLE TO CONFLICTS OR CHOICE OF LAW THAT WOULD RESULT IN THE APPLICATION OF ANY LAW OTHER THAN THE LAW OF THE STATE OF NEW YORK). THE MAKER AGREES THAT ANY SUIT FOR THE
ENFORCEMENT OF THIS NOTE MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK, IN NEW YORK COUNTY OR ANY FEDERAL COURT SITTING THEREIN AND CONSENTS TO THE EXCLUSIVE JURISDICTION OF SUCH COURTS AND SERVICE OF PROCESS IN ANY SUCH SUIT BEING MADE UPON
THE MAKER BY MAIL AT THE ADDRESS OF SUCH PERSON AT ITS PRINCIPAL PLACE OF BUSINESS OR RESIDENCE, IF AN INDIVIDUAL. THE MAKER AND PAYEE HEREBY WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH SUIT OR ANY SUCH COURT OR
THAT SUCH SUIT IS BROUGHT IN AN INCONVENIENT FORUM. 

  
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 18. Waiver of Jury Trial. The parties hereto knowingly, voluntarily and expressly
waive all right to trial by jury in any action, proceeding or counterclaim enforcing or defending any rights arising out of or relating to this Note. 
 19. Invalidity. Invalidation of any one or more of the provisions of this Note shall in no way affect any of the other provisions of this Note which shall remain in full force and effect.

 20. Offset/Deductions. Maker hereby acknowledges and agrees that Payee has the right to offset against the obligations
owing hereunder, without notice, any and all cash, credits, distributions or repurchase proceeds owing to Maker in accordance with Section 7.03, Section 8.03, Section 10.01(c) and otherwise in accordance with the terms of the
Partnership Agreements. 
 21. No Stay in Event of Bankruptcy. Maker acknowledges and agrees that (i) in the event
of the filing of any voluntary or involuntary petition in bankruptcy by or against Maker, it shall not seek a ruling or request any other party to seek a ruling to enforce or extend the automatic stay provided by Section 362 of the Bankruptcy
Code, or seek a supplemental stay or any other relief, whether injunctive or otherwise, pursuant to Section 105 of the Bankruptcy Code or any other provision of the Bankruptcy Code, or in law or in equity, to stay, interdict, condition, reduce,
or inhibit the ability of Payee to enforce any rights it has by virtue of this Note, at law or in equity, or any other rights Payee has, whether now or hereafter acquired, against any person or entity which is not a debtor in such bankruptcy
proceedings or against any property owned by any such non-debtor; and (ii) Payee shall be entitled to, and Maker hereby agrees that Payee shall have, relief from the automatic stay in bankruptcy or any similar or supplemental stay to exercise
all of its rights and remedies under this Note and applicable law. 
 22. Continuing Enforcement. If, after receipt of
any payment of all or any part of this Note, Payee is compelled or reasonably agrees, for settlement purposes, to surrender such payment to any person or entity upon reasonably determining that such payment is void or voidable as a preference or
fraudulent conveyance, an impermissible setoff, or a diversion of trust funds, then this Note shall continue in full force and effect or be reinstated, as the case may be, and Maker shall be liable for, and shall indemnify, defend and hold harmless
Payee with respect to the full amount so surrendered. The provisions of this Section shall survive the cancellation or termination of this Note and shall remain effective notwithstanding the payment of the obligations evidenced hereby, the release
of any security interest, lien or encumbrance securing this Note or any other action which Payee may have taken in reliance upon its receipt of such payment. Any cancellation, release or other such action shall be deemed to have been conditioned
upon any payment of the obligations evidenced hereby having become final and irrevocable. 
 [Remainder of Page Intentionally
Blank; Signature Page and Schedules Follow] 

  
 11 

 IN WITNESS WHEREOF, this Note has been executed and delivered on the date first above
written by duly authorized representatives of the Company. 
  

					
	IFMI, LLC
		
	By:	 	 /s/ Daniel G. Cohen

		 	Name:	 	Daniel G. Cohen
		 	Title:	 	Chief Executive Officer
		 	Address:
		 	2929 Arch Street
		 	Philadelphia, PA 19104
		 	Attention: Chief Executive Officer
	
	ADDRESS OF PAYEE:
	
	c/o PrinceRidge Holdings LP
	1633 Broadway
	28th Floor
	New York, New York 10019
	Attn: General Counsel and Chief Operating Officer

  

			
	Acknowledged and Accepted:
	
	PrinceRidge Holdings LP
		
	By:	 	 /s/ John P. Costas

	Name:	 	 John P. Costas

	Title:	 	 Chairman

		
	By:	 	 /s/ Michael T. Hutchins

	Name:	 	 Michael T. Hutchins

	Title:	 	 Chief Executive Officer

 [Signature Page to Secured Promissory Note] 

 Schedule 1(e) 
 IFMI Projected Cash Balances 3/31/12 to 3/31/13 

  
 13 

 Schedule 1(f) 

 

	•	 	 1Q12 negative mark-to-market adjustment of $5,420,760 (as currently estimated) in the value of the Company’s indirect investment in Star Asia
Finance. 

  

	•	 	 1Q12 payment by IFMI LLC of the $2,250,000 contribution to a non-ordinary course legal settlement related to the Leawood matter, on behalf of the
Company’s wholly-owned subsidiary Cohen & Company Financial Management LLC, which was party to the related settlement. 

  
 14Registrant's Third Amended and Restated 2005 Omnibus Stock Plan

 Exhibit 10.1 
 VARIAN MEDICAL SYSTEMS, INC. 
 THIRD AMENDED AND RESTATED 

2005 OMNIBUS STOCK PLAN 

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
			
	 SECTION 1
	  	BACKGROUND AND PURPOSE	  	 	1	  
			
	 1.1
	  	 Effective Date
	  	 	1	  
	 1.2
	  	 Purpose of the Plan
	  	 	1	  
			
	 SECTION 2
	  	DEFINITIONS	  	 	1	  
			
	 2.1
	  	 “1934 Act”
	  	 	1	  
	 2.2
	  	 “Affiliate”
	  	 	1	  
	 2.3
	  	 “Award”
	  	 	1	  
	 2.4
	  	 “Award Agreement”
	  	 	1	  
	 2.5
	  	 “Board”
	  	 	1	  
	 2.6
	  	 “Code”
	  	 	1	  
	 2.7
	  	 “Committee”
	  	 	1	  
	 2.8
	  	 “Company”
	  	 	2	  
	 2.9
	  	 “Consultant”
	  	 	2	  
	 2.10
	  	 “Deferred Stock Unit”
	  	 	2	  
	 2.11
	  	 “Director”
	  	 	2	  
	 2.12
	  	 “Disability”
	  	 	2	  
	 2.13
	  	 “EBIT”
	  	 	2	  
	 2.14
	  	 “EBITDA”
	  	 	2	  
	 2.15
	  	 “Earnings Per Share”
	  	 	2	  
	 2.16
	  	 “Employee”
	  	 	2	  
	 2.17
	  	 “Exercise Price”
	  	 	2	  
	 2.18
	  	 “Fair Market Value”
	  	 	2	  
	 2.19
	  	 “Fiscal Year”
	  	 	2	  
	 2.20
	  	 “Grant Date”
	  	 	2	  
	 2.21
	  	 “Incentive Stock Option”
	  	 	2	  
	 2.22
	  	 “Net Income”
	  	 	2	  
	 2.23
	  	 “Net Orders”
	  	 	2	  
	 2.24
	  	 “Non-employee Director”
	  	 	3	  
	 2.25
	  	 “Non-qualified Stock Option”
	  	 	3	  
	 2.26
	  	 “Operating Cash Flow”
	  	 	3	  
	 2.27
	  	 “Option”
	  	 	3	  
	 2.28
	  	 “Participant”
	  	 	3	  
	 2.29
	  	 “Performance Goals”
	  	 	3	  
	 2.30
	  	 “Performance Period”
	  	 	3	  
	 2.31
	  	 “Performance Share”
	  	 	3	  
	 2.32
	  	 “Performance Unit”
	  	 	3	  
	 2.33
	  	 “Period of Restriction”
	  	 	3	  
	 2.34
	  	 “Plan”
	  	 	3	  
	 2.35
	  	 “Prior Plans”
	  	 	4	  
	 2.36
	  	 “Restricted Stock”
	  	 	4	  
	 2.37
	  	 “Restricted Stock Units”
	  	 	4	  
	 2.38
	  	 “Retirement”
	  	 	4	  
	 2.39
	  	 “Return on Assets”
	  	 	4	  
	 2.40
	  	 “Return on Equity”
	  	 	4	  
	 2.41
	  	 “Return on Sales”
	  	 	4	  
	 2.42
	  	 “Revenue”
	  	 	4	  
	 2.43
	  	 “Rule 16b-3”
	  	 	4	  
	 2.44
	  	 “Section 16 Person”
	  	 	4	  
	 2.45
	  	 “Shareholder Return”
	  	 	4	  
	 2.46
	  	 “Shares”
	  	 	4	  
	 2.47
	  	 “Stock Appreciation Right” or “SAR”
	  	 	4	  

  
 -i-

 TABLE OF CONTENTS 

(continued) 
  

									
	 	 	 	  	 	  	Page	 
			
	 2.48
	 	 “Subsidiary”
	  	 	4	  
	 2.49
	 	 “Termination of Service”
	  	 	4	  
			
	 SECTION 3
	 	 ADMINISTRATION
	  	 	5	  
			
	 3.1
	 	 The Committee
	  	 	5	  
	 3.2
	 	 Authority of the Committee
	  	 	5	  
	 3.3
	 	 Delegation by the Committee
	  	 	5	  
	 3.4
	 	 Non-employee Directors
	  	 	5	  
	 3.5
	 	 Decisions Binding
	  	 	5	  
			
	 SECTION 4
	 	 SHARES SUBJECT TO THE PLAN
	  	 	5	  
			
	 4.1
	 	 Number of Shares
	  	 	5	  
	 4.2
	 	 Lapsed Awards
	  	 	6	  
	 4.3
	 	 Adjustments in Awards and Authorized Shares
	  	 	6	  
			
	 SECTION 5
	 	 STOCK OPTIONS
	  	 	6	  
			
	 5.1
	 	 Grant of Options
	  	 	6	  
	 5.2
	 	 Award Agreement
	  	 	6	  
	 5.3
	 	 Exercise Price
	  	 	6	  
		 	 5.3.1
	  	 Non-qualified Stock Options
	  	 	6	  
		 	 5.3.2
	  	 Incentive Stock Options
	  	 	6	  
		 	 5.3.3
	  	 Substitute Options
	  	 	7	  
	 5.4
	 	 Expiration of Options
	  	 	7	  
		 	 5.4.1
	  	 Expiration Dates
	  	 	7	  
		 	 5.4.2
	  	 Death of Participant
	  	 	7	  
		 	 5.4.3
	  	 Committee Discretion
	  	 	7	  
	 5.5
	 	 Exercisability of Options
	  	 	7	  
	 5.6
	 	 Payment
	  	 	7	  
	 5.7
	 	 Restrictions on Share Transferability
	  	 	8	  
	 5.8
	 	 Certain Additional Provisions for Incentive Stock Options
	  	 	8	  
		 	 5.8.1
	  	 Exercisability
	  	 	8	  
		 	 5.8.2
	  	 Termination of Service
	  	 	8	  
		 	 5.8.3
	  	 Company and Subsidiaries Only
	  	 	8	  
		 	 5.8.4
	  	 Expiration
	  	 	8	  
			
	 SECTION 6
	 	 STOCK APPRECIATION RIGHTS
	  	 	8	  
			
	 6.1
	 	 Grant of SARs
	  	 	8	  
	 6.2
	 	 Exercise Price and Other Terms
	  	 	8	  
	 6.3
	 	 SAR Agreement
	  	 	8	  
	 6.4
	 	 Expiration of SARs
	  	 	8	  
	 6.5
	 	 Payment of SAR Amount
	  	 	9	  
	 6.6
	 	 Payment Upon Exercise of SAR
	  	 	9	  
			
	 SECTION 7
	 	 RESTRICTED STOCK AND RESTRICTED STOCK UNITS
	  	 	9	  
			
	 7.1
	 	 Grant of Restricted Stock and Restricted Stock Units
	  	 	9	  
	 7.2
	 	 Restricted Stock and Restricted Stock Units Agreement
	  	 	9	  
	 7.3
	 	 Transferability
	  	 	9	  
	 7.4
	 	 Other Restrictions
	  	 	9	  
		 	 7.4.1
	  	 General Restrictions
	  	 	9	  
		 	 7.4.2
	  	 Section 162(m) Performance Restrictions
	  	 	9	  
		 	 7.4.3
	  	 Legend on Certificates
	  	 	9	  

  
 -ii-

 TABLE OF CONTENTS 

(continued) 
  

									
	 	 	 	  	 	  	Page	 
			
	 7.5
	 	 Removal of Restrictions
	  	 	10	  
	 7.6
	 	 Voting Rights
	  	 	10	  
	 7.7
	 	 Dividends and Other Distributions
	  	 	10	  
	 7.8
	 	 Return of Restricted Stock to Company
	  	 	10	  
			
	 SECTION 8
	 	 PERFORMANCE UNITS AND PERFORMANCE SHARES
	  	 	10	  
			
	 8.1
	 	 Grant of Performance Units and Shares
	  	 	10	  
	 8.2
	 	 Initial Value
	  	 	10	  
	 8.3
	 	 Performance Objectives and Other Terms
	  	 	10	  
		 	 8.3.1
	  	 General Performance Objectives
	  	 	10	  
		 	 8.3.2
	  	 Section 162(m) Performance Objectives
	  	 	10	  
	 8.4
	 	 Earning of Performance Units and Performance Shares
	  	 	11	  
	 8.5
	 	 Form and Timing of Payment
	  	 	11	  
	 8.6
	 	 Cancellation
	  	 	11	  
			
	 SECTION 9
	 	 NON-EMPLOYEE DIRECTORS
	  	 	11	  
			
	 9.1
	 	 Non-Employee Director Options
	  	 	11	  
	 9.2
	 	 Terms of Options
	  	 	11	  
		 	 9.2.1
	  	 Option Agreement
	  	 	11	  
		 	 9.2.2
	  	 Exercise Price
	  	 	11	  
		 	 9.2.3
	  	 Exercisability
	  	 	11	  
		 	 9.2.4
	  	 Expiration of Options
	  	 	11	  
		 	 9.2.5
	  	 Death of Director
	  	 	12	  
		 	 9.2.6
	  	 Not Incentive Stock Options
	  	 	12	  
		 	 9.2.7
	  	 Other Terms
	  	 	12	  
	 9.3
	 	 Substitute Options
	  	 	12	  
	 9.4
	 	 Elections by Non-employee Directors
	  	 	12	  
	 9.5
	 	 Deferred Stock Units
	  	 	12	  
	 9.6
	 	 Terms of Deferred Stock Units
	  	 	12	  
		 	 9.6.1
	  	 Deferred Stock Unit Agreement
	  	 	12	  
		 	 9.6.2
	  	 Vesting
	  	 	12	  
		 	 9.6.3
	  	 Payment
	  	 	12	  
		 	 9.6.4
	  	 Other Terms
	  	 	13	  
			
	 SECTION 10
	 	 MISCELLANEOUS
	  	 	13	  
			
	 10.1
	 	 No Effect on Employment or Service
	  	 	13	  
	 10.2
	 	 Participation
	  	 	13	  
	 10.3
	 	 Indemnification
	  	 	13	  
	 10.4
	 	 Successors
	  	 	13	  
	 10.5
	 	 Beneficiary Designations
	  	 	13	  
	 10.6
	 	 Nontransferability of Awards
	  	 	13	  
	 10.7
	 	 No Rights as Stockholder
	  	 	13	  
	 10.8
	 	 Withholding Requirements
	  	 	14	  
	 10.9
	 	 Withholding Arrangements
	  	 	14	  
	 10.10
	 	 Deferrals
	  	 	14	  
	 10.11
	 	 Dividend Equivalents
	  	 	14	  
	 10.12
	 	 Prohibition on Repricings
	  	 	14	  
	 10.13
	 	 Maximum Term of Options and SARs
	  	 	14	  
	 10.14
	 	 Restatement of Financial Results
	  	 	14	  
			
	 SECTION 11
	 	 AMENDMENT, TERMINATION AND DURATION
	  	 	15	  

  
 -iii-

 TABLE OF CONTENTS 

(continued) 
  

							
	 	  	 	  	Page	 
			
	 11.1
	  	Amendment, Suspension or Termination	  	 	15	  
	 11.2
	  	Duration of the Plan	  	 	15	  
			
	 SECTION 12
	  	LEGAL CONSTRUCTION	  	 	15	  
			
	 12.1
	  	Gender and Number	  	 	15	  
	 12.2
	  	Severability	  	 	15	  
	 12.3
	  	Requirements of Law	  	 	15	  
	 12.4
	  	Governing Law	  	 	15	  
	 12.5
	  	Captions	  	 	15	  
		
	EXECUTION	  	 	15	  

  
 -iv-

 VARIAN MEDICAL SYSTEMS, INC. 

THIRD AMENDED AND RESTATED 
 2005 OMNIBUS STOCK PLAN 
 SECTION 1 

BACKGROUND AND PURPOSE 
 1.1 Effective Date. The Varian medical Systems, Inc. 2005 Omnibus Stock Plan was originally adopted by Varian Medical Systems, Inc., a Delaware corporation, on November 19, 2004 and
became effective upon its approval by a majority of the shares of the common stock of the Company’s stockholders on February 17, 2005. On December 7, 2005, the Board approved an amended and restated Plan, which was approved at the
Company’s 2006 Annual Meeting of Stockholders. On November 17, 2006, the Board approved the second amended and restated Plan, which was approved at the Company’s 2007 Annual Meeting of Stockholders. On November 11, 2011 (the
“Adoption Date”), the Board approved this third amended and restated Plan, provided that this Plan amendment and restatement is approved by a vote of the majority of the shares of the common stock of the Company which are present in person
or by proxy and entitled to vote at the Company’s 2012 Annual Meeting of Stockholders. 
 1.2 Purpose of the Plan.
The Plan is intended to increase incentives and to encourage Share ownership on the part of (1) employees of the Company and its Affiliates, (2) consultants who provide significant services to the Company and its Affiliates, and
(3) directors of the Company who are employees of neither the Company nor any Affiliate. The Plan also is intended to further the growth and profitability of the Company. 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 “1934 Act” means the Securities Exchange Act of 1934, as amended. Reference to a specific section of the 1934 Act or regulation thereunder shall include such section or regulation,
any valid regulation promulgated under such section, and any comparable provision of any future legislation or regulation amending, supplementing or superseding such section or regulation. 

2.2 “Affiliate” means any corporation or any other entity (including, but not limited to, partnerships and joint
ventures) controlling, controlled by, or under common control with the Company. 
 2.3 “Award” means,
individually or collectively, a grant under the Plan of Non-qualified Stock Options, Incentive Stock Options, SARs, Restricted Stock, Restricted Stock Units, Performance Units, Performance Shares or Deferred Stock Units. 

2.4 “Award Agreement” means the written agreement setting forth the terms and provisions applicable to each Award
granted under the Plan. 
 2.5 “Board” means the Board of Directors of the Company. 

2.6 “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.

 2.7 “Committee” means the committee appointed by the Board (pursuant to Section 3.1) to administer the
Plan. 

  
 1 

 2.8 “Company” means Varian Medical Systems, Inc., a Delaware
corporation, or any successor thereto. 
 2.9 “Consultant” means any consultant, independent contractor, or
other person who provides significant services to the Company or its Affiliates, but who is neither an Employee nor a Director. 

2.10 “Deferred Stock Unit” means a Deferred Stock Unit granted pursuant to Section 9.5. 

2.11 “Director” means any individual who is a member of the Board. 

2.12 “Disability” means a permanent and total disability within the meaning of section 22(e)(3) of the Code,
provided that in the case of Awards other than Incentive Stock Options, the Committee in its discretion may determine whether a permanent and total disability exists in accordance with uniform and non-discriminatory standards adopted by the
Committee from time to time. Notwithstanding the foregoing, to the extent “Disability” is used to establish a payment event with respect to any Award subject to section 409A of the Code, “Disability” shall have the meaning set
forth in section 409A of the Code and the applicable guidance issued by the Secretary of the Treasury thereunder. 
 2.13
“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. 

2.14 “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. 

2.15 “Earnings Per Share” means as to any Performance Period, the Company’s or a business unit’s Net Income,
divided by a weighted average number of common shares outstanding and dilutive common equivalent shares deemed outstanding, determined in accordance with generally accepted accounting principles. 

2.16 “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. 
 2.17 “Exercise Price”
means the price at which a Share may be purchased by a Participant pursuant to the exercise of an Option. 
 2.18
“Fair Market Value” means the last quoted per share selling price for Shares on the relevant date, or if there were no sales on such date, the last quoted per share price for Shares on the next date on which there were sales of
Shares. Notwithstanding the preceding, for federal, state and local income tax reporting purposes, fair market value shall be determined by the Committee in accordance with uniform and nondiscriminatory standards adopted by it from time to time.

 2.19 “Fiscal Year” means the fiscal year of the Company. 

2.20 “Grant Date” means, with respect to an Award, the date that the Award was granted. 

2.21 “Incentive Stock Option” means an Option to purchase Shares which is designated as an Incentive Stock Option and is
intended to meet the requirements of section 422 of the Code. 
 2.22 “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. 
 2.23 “Net Orders” means as to any Performance Period, the Company’s or a business unit’s net orders calculated (and reviewed by the Company’s external independent auditors
in accordance with agreed standard procedures) for and reported in the Company’s quarterly financial earnings press release filed by the Company on a Current Report on Form 8-K. 

  
 2 

 2.24 “Non-employee Director” means a Director who is an employee of neither
the Company nor of any Affiliate. 
 2.25 “Non-qualified Stock Option” means an option to purchase Shares which
is not intended to be an Incentive Stock Option. 
 2.26 “Operating Cash Flow” means as to any Performance
Period, the Company’s or a business unit’s sum of Net Income plus depreciation and amortization less capital expenditures plus changes in working capital comprised of accounts receivable, inventories, other current assets, trade accounts
payable, accrued expenses, product warranty, advance payments from customers and long-term accrued expenses, determined in accordance with generally acceptable accounting principles. 

2.27 “Option” means an Incentive Stock Option or a Non-qualified Stock Option. 

2.28 “Participant” means an Employee, Consultant, or Non-employee Director who has an outstanding Award. 

2.29 “Performance Goals” means the goal(s) (or combined goal(s)) determined by the Committee (in its discretion) to be
applicable to a Participant with respect to an Award. As determined by the Committee, the Performance Goals applicable to an Award may provide for a targeted level or levels of achievement using one or more of the following measures: (a) EBIT,
(b) EBITDA, (c) Earnings Per Share, (d) Net Income, (e) Operating Cash Flow, (f) Return on Assets, (g) Return on Equity, (h) Return on Sales, (i) Revenue, (j) Shareholder Return, (k) orders or Net
Orders, (l) expenses, (m) cost of goods sold, (n) profit/loss or profit margin, (o) working capital, (p) operating income, (q) cash flow, (r) market share, (s) return on equity, (t) economic value add,
(u) stock price of the Company’s stock, (v) price/earning ratio, (w) debt or debt-to-equity ratio, (x) accounts receivable, (y) cash, (z) write-off, (aa) assets, (bb) liquidity, (cc) operations, (dd) intellectual
property (e.g., patents), (ee) product development, (ff) regulatory activities, (gg) manufacturing, production or inventory, (hh) mergers, acquisitions or divestitures, (ii) financings, (jj) days sales outstanding, (kk) backlog,
(ll) deferred revenue, and (mm) employee headcount. 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 Participant. “Determination Date” means the latest possible date that will not jeopardize an Award’s qualification as performance-based
compensation under section 162(m) of the Code. Notwithstanding the previous sentence, for Awards not intended to qualify as performance-based compensation, “Determination Date” shall mean such date as the Committee may determine in
its discretion. 
 2.30 “Performance Period” means any fiscal period not to exceed three consecutive Fiscal
Years, as determined by the Committee in its sole discretion. 
 2.31 “Performance Share” means a Performance
Share granted to a Participant pursuant to Section 8. 
 2.32 “Performance Unit” means a Performance Unit
granted to a Participant pursuant to Section 8. 
 2.33 “Period of Restriction” means the period during
which shares of Restricted Stock are subject to forfeiture and/or restrictions on transferability. 
 2.34 “Plan”
means the Varian Medical Systems, Inc. Third Amended and Restated 2005 Omnibus Stock Plan, as set forth in this instrument and as hereafter amended from time to time. 

  
 3 

 2.35 “Prior Plans” means the Varian Medical Systems, Inc. Omnibus
Stock Plan approved by the Company’s stockholders effective April 3, 1999 and the Varian Medical Systems, Inc. 2000 Stock Plan adopted by the Company’s Board of Directors effective November 17, 2000. 

2.36 “Restricted Stock” means an Award granted to a Participant pursuant to Section 7. 

2.37 “Restricted Stock Units” means a Restricted Stock Unit granted to a Participant pursuant to Section 7.

 2.38 “Retirement” means, in the case of an Employee or a Non-employee Director, “Retirement” as
defined pursuant to the Company’s or the Board’s Retirement Policies, as they may be established from time to time. With respect to a Consultant, no Termination of Service shall be deemed to be on account of “Retirement.”

 2.39 “Return on 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 average net Company or business unit, as applicable, assets, determined in accordance with generally accepted accounting principles. 

2.40 “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. 
 2.41
“Return on Sales” 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 the business unit’s, as applicable,
Revenue, determined in accordance with generally accepted accounting principles. 
 2.42 “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. 
 2.43 “Rule 16b-3” means Rule 16b-3 promulgated under the 1934 Act, as amended, and any future regulation amending, supplementing or superseding such regulation. 

2.44 “Section 16 Person” means a person who, with respect to the Shares, is subject to section 16 of the 1934 Act.

 2.45 “Shareholder Return” means as to any Performance Period, the total return (change in share price plus
reinvestment of any dividends) of a Share. 
 2.46 “Shares” means shares of the Company’s common stock,
$1.00 par value. 
 2.47 “Stock Appreciation Right” or “SAR” means an Award, granted alone, in
connection or in tandem with a related Option, that pursuant to Section 6 is designated as a SAR. 
 2.48
“Subsidiary” means any corporation in an unbroken chain of corporations beginning with the Company if each of the corporations other than the last corporation in the unbroken chain then owns stock possessing fifty percent
(50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. 

2.49 “Termination of Service” means (a) in the case of an Employee, a cessation of the employee-employer
relationship between an Employee and the Company or an Affiliate for any reason, including, but not by way of limitation, a termination by resignation, discharge, death, Disability, Retirement, or the disaffiliation of an Affiliate, but excluding
any such termination where there is a simultaneous reemployment by the Company or an Affiliate; (b) in the case of a Consultant, a cessation of the service relationship between a Consultant and the Company or an Affiliate for any reason,
including, but not by way of limitation, a termination by resignation, discharge, death, Disability, or the disaffiliation of an Affiliate, but excluding any such termination where there is a simultaneous re-engagement of the consultant by the
Company or an Affiliate; and (c) in the case of 

  
 4 

 
a Non-employee Director, a cessation of the Non-employee Director’s service on the Board for any reason. Notwithstanding the foregoing, to the extent that “Termination of Service”
is used to establish a payment event with respect to any Award subject to section 409A of the Code, “Termination of Service” shall have the same meaning as “separation from service” as that term is defined in section 409A of the
Code and the applicable guidance issued by the Secretary of the Treasury thereunder. 
 SECTION 3 

ADMINISTRATION 
 3.1 The Committee. The Plan shall be administered by the Committee. The Committee shall consist of not less than two (2) Directors. 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 (a) a “non-employee director” under Rule 16b-3, (b) an “independent director” under section 303A.02 of the New York
Stock Exchange listing standards rules, and (c) 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. 
 3.2 Authority of the Committee. 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 and Consultants shall be granted Awards, (b) prescribe the terms and conditions of the Awards (other than the Options granted to Non-employee Directors pursuant to Section 9),
(c) interpret the Plan and the Awards, (d) adopt such procedures, agreements, arrangements, sub plans and terms as are necessary or appropriate to permit participation in the Plan by Employees, Consultants and Directors 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. Notwithstanding any
contrary provision of the Plan, the Committee may reduce the amount payable under any Award (other than an Option) after the grant of such Award. 
 3.3 Delegation by the Committee. The Committee, in its sole discretion and on such terms and conditions as it may provide, may delegate all or any part of its authority and powers under the Plan to
one or more directors and/or officers of the Company; provided, however, that the Committee may not delegate its authority and powers (a) with respect to Section 16 Persons, (b) in any way which would jeopardize the Plan’s
qualification under Rule 16b-3, or (c) with respect to Awards which are intended to qualify as performance-based compensation under section 162(m) of the Code. 
 3.4 Non-employee Directors. Notwithstanding any contrary provision of this Section 3, the Board shall administer Section 9 of the Plan, and the Committee shall exercise no discretion with
respect to Section 9. In the Board’s administration of Section 9 and the Awards and any Shares granted to Non-employee Directors, the Board shall have all of the authority and discretion otherwise granted to the Committee with respect
to the administration of the Plan. 
 3.5 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. 

SECTION 4 

SHARES SUBJECT TO THE PLAN 
 4.1 Number of Shares. Prior to this request for approval of this third amended and restated Plan, and subject to adjustment as provided in Section 4.3, the total number of Shares available for
issuance under the Plan shall not exceed 18,950,000, plus such number of Shares as are granted pursuant to substitute Options under Sections 5.3.3 and 9.3. No further grants may be made under the Prior Plans, but Shares authorized for issuance under
the Prior Plans that have not been issued under the prior Plans may be issued pursuant to Awards granted under this Plan in addition to the number of Shares specified immediately above. In addition, if an award previously granted under the Prior
Plans terminates, expires, or lapses for any reason, any Shares subject to such award shall again be available to be the subject of an Award under the Plan. Shares issued under the Plan may be either authorized but unissued Shares or treasury
Shares. Upon approval of this third amended and restated Plan by the 

  
 5 

 
stockholders of the Company, an additional 6,000,000 Shares shall be available for issuance under the Plan. For purposes of this Section 4.1, effective with respect to Awards granted on or
after the date the stockholders of the Company approve this third amended and restated Plan, any Shares that are subject to Awards of Options or Stock Appreciation Rights shall be counted against the limit stated in this Section 4.1 as one
(1) Share for every (1) Share issued, and any shares issued in connection with Awards other than Options and Stock Appreciation Rights shall be counted against the limit stated in this Section 4.1 as 2.6 Shares for every one
(1) Share issued. Except as provided in Section 4.2, if fewer Shares are issued in settlement of an Award than were covered by such Award, then the Shares not issued shall not be available for issuance under the Plan. All of the Shares
available for issuance under the Plan may be issued as Incentive Stock Options. 
 4.2 Lapsed Awards. If an Award
terminates, expires, or lapses for any reason, any Shares subject to such Award (plus the number of additional shares, if any, that counted against the share pool using the share counting rule in effect at the time the Award was granted) again shall
be available to be the subject of an Award. In addition, Shares issued pursuant to Awards assumed or issued in substitution of other awards in connection with the acquisition by the Company of an unrelated entity shall not reduce the maximum number
of Shares issuable under Section 4.1. 
 4.3 Adjustments in Awards and Authorized Shares. 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, the Committee shall adjust the number and
class of Shares which may be delivered under the Plan, the number, class, and price of Shares subject to outstanding Awards, and the numerical limit of Section 5.1 in such manner as the Committee (in its sole discretion) shall determine to be
appropriate to prevent the dilution or diminution of such Awards. In the case of Options granted to Non-employee Directors, the foregoing adjustments shall be made by the Board. Notwithstanding the preceding, the number of Shares subject to any
Award always shall be a whole number. 
 SECTION 5 
 STOCK OPTIONS 
 5.1 Grant of Options. Subject to the terms and
provisions of the Plan, Options may be granted to Employees and Consultants at any time and from time to time as determined by the Committee in its sole discretion. The Committee, in its sole discretion, shall determine the number of Shares subject
to each Option, provided that during any Fiscal Year, no Participant shall be granted Options covering more than 4,000,000 Shares. The Committee may grant Incentive Stock Options, Non-qualified Stock Options, or a combination thereof. Non-Qualified
Stock Options may be granted under the Plan pursuant to Section 9 to Non-employee Directors by the Board, which shall determine the terms of such Options. 
 5.2 Award Agreement. Each Option shall be evidenced by an Award Agreement that shall specify the Exercise Price, the expiration date of the Option, the number of Shares to which the Option
pertains, any conditions to exercise of the Option, and such other terms and conditions as the Committee, in its discretion, shall determine. The Award Agreement shall specify whether the Option is intended to be an Incentive Stock Option or a
Non-qualified Stock Option. 
 5.3 Exercise Price. Subject to the provisions of this Section 5.3, the Exercise Price
for each Option shall be determined by the Committee in its sole discretion. 
 5.3.1 Non-qualified Stock
Options. In the case of a Non-qualified Stock Option, the Exercise Price shall be not less than one hundred percent (100%) of the Fair Market Value of a Share on the Grant Date. 

5.3.2 Incentive Stock Options. In the case of an Incentive Stock Option, the Exercise Price shall be not less than
one hundred percent (100%) of the Fair Market Value of a Share on the Grant Date; provided, however, that if on the Grant Date, the Employee (together with persons whose stock ownership is attributed to the Employee pursuant to section
424(d) of the Code) owns stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or any of its Subsidiaries, the Exercise Price shall be not less than one hundred and ten
percent (110%) of the Fair Market Value of a Share on the Grant Date. 

  
 6 

 5.3.3 Substitute Options. Notwithstanding the provisions of Sections
5.3.1 and 5.3.2, in the event that the Company or an Affiliate consummates a transaction described in section 424(a) of the Code (e.g., the acquisition of property or stock from an unrelated corporation), persons who become Employees or
Consultants on account of such transaction may be granted Options in substitution for options granted by their former employer. If such substitute Options are granted, the Committee, in its sole discretion and consistent with section 424(a) of
the Code, shall determine the exercise price of such substitute Options. 
 5.4 Expiration of Options. 

5.4.1 Expiration Dates. Subject to Section 10.13, except as set forth in each Award Agreement, each Option
shall terminate no later than the first to occur of the following events: 
 (a) The expiration of seven
(7) years from the Grant Date; or 
 (b) The expiration of three (3) months from the date of the
Participant’s Termination of Service for a reason other than the Participant’s death, Disability or Retirement; or 
 (c) The expiration of one (1) year from the date of the Participant’s Termination of Service by reason of Disability; or 

(d) The expiration of three (3) years from the date of the Participant’s Retirement (subject to
Section 5.8.2 regarding Incentive Stock Options); or 
 (e) The date of the Participant’s Termination
of Service by the Company for cause (as determined by the Company). 
 5.4.2 Death of Participant. Subject
to Section 10.13, notwithstanding Section 5.4.1, if a Participant who is an Employee dies prior to the expiration of his or her Options, his or her Options shall be exercisable until the expiration of three (3) years after the date of
death. If a Participant who is a Consultant dies prior to the expiration of his or her Options, the Committee, in its discretion, may provide that his or her Options shall be exercisable for up to three (3) years after the date of death.

 5.4.3 Committee Discretion. Subject to the limits of Sections 5.4.1, 5.4.2 and 10.13, the Committee, in
its sole discretion, (a) shall provide in each Award Agreement when each Option expires and becomes unexercisable, and (b) may, after an Option is granted and before such Option expires, extend the maximum term of the Option (subject to
Section 5.8.4 regarding Incentive Stock Options). 
 5.5 Exercisability of Options. Options granted under the Plan
shall be exercisable at such times and be subject to such restrictions and conditions as the Committee shall determine in its sole discretion. After an Option is granted, the Committee, in its sole discretion, may accelerate the exercisability of
the Option. If a Participant dies while an Employee, the exercisability of his or her Options shall be fully accelerated to the date of Termination of Service. 
 5.6 Payment. Options shall be exercised by the Participant’s delivery of a written notice of exercise to the Secretary of the Company (or its designee), setting forth the number of Shares with
respect to which the Option is to be exercised, accompanied by full payment for the Shares. 
 Upon the exercise of any Option,
the Exercise Price shall be payable to the Company in full in cash or its equivalent. The Committee, in its sole discretion, also may permit exercise (a) by tendering previously acquired Shares having an aggregate Fair Market Value at the time
of exercise equal to the total Exercise Price, or (b) by any other means which the Committee, in its sole discretion, determines both to provide legal consideration for the Shares and to be consistent with the purposes of the Plan. 

  
 7 

 As soon as practicable after receipt of a written notification of exercise and full payment
for the Shares purchased, the Company shall deliver to the Participant (or the Participant’s designated broker) Share certificates (which may be in book entry form) representing such Shares. 

5.7 Restrictions on Share Transferability. The Committee may impose such restrictions on any Shares acquired pursuant to the
exercise of an Option as it may deem advisable, including, but not limited to, restrictions related to applicable Federal securities laws, the requirements of any national securities exchange or system upon which Shares are then listed or traded, or
any blue sky or state securities laws. 
 5.8 Certain Additional Provisions for Incentive Stock Options. 

5.8.1 Exercisability. The aggregate Fair Market Value (determined on the Grant Date(s)) of the Shares with respect
to which Incentive Stock Options are exercisable for the first time by any Employee during any calendar year (under all plans of the Company and its Subsidiaries) shall not exceed $100,000. 

5.8.2 Termination of Service. If any portion of an Incentive Stock Option is exercised more than three
(3) months after the Participant’s Termination of Service for any reason other than Disability or death (unless (a) the Participant dies during such three-month period, and (b) the Award Agreement or the Committee permits later
exercise), the portion so exercised shall be deemed a Non-qualified Stock Option. 
 5.8.3 Company and
Subsidiaries Only. Incentive Stock Options may be granted only to persons who are employees of the Company or a Subsidiary on the Grant Date. 
 5.8.4 Expiration. No Incentive Stock Option may be exercised after the expiration of seven (7) years from the Grant Date; provided, however, that if the Option is granted to an Employee who,
together with persons whose stock ownership is attributed to the Employee pursuant to section 424(d) of the Code, owns stock possessing more than ten percent (10%) of the total combined voting power of all classes of the stock of the
Company or any of its Subsidiaries, the Option may not be exercised after the expiration of five (5) years from the Grant Date. 
 SECTION 6 
 STOCK APPRECIATION RIGHTS 

6.1 Grant of SARs. Subject to the terms and conditions of the Plan, SARs may be granted to Employees and Consultants at any time
and from time to time as shall be determined by the Committee, in its sole discretion. The Committee shall have complete discretion to determine the number of SARs granted to any Participant, provided that during any Fiscal Year, no Participant
shall be granted SARs covering more than 2,000,000 Shares. 
 6.2 Exercise Price and Other Terms. The Committee, subject
to the provisions of the Plan, shall have complete discretion to determine the terms and conditions of SARs granted under the Plan. However, the exercise price of a SAR shall be not less than one hundred percent (100%) of the Fair Market Value
of a Share on the Grant Date. 
 6.3 SAR Agreement. Each SAR grant shall be evidenced by an Award Agreement that shall
specify the exercise price, the term of the SAR, the conditions of exercise, and such other terms and conditions as the Committee, in its sole discretion, shall determine. 
 6.4 Expiration of SARs. A SAR granted under the Plan shall expire upon the date determined by the Committee, in its sole discretion, and set forth in the Award Agreement. Notwithstanding the
foregoing, the rules of Section 5.4 and 10.13 also shall apply to SARs. 

  
 8 

 6.5 Payment of SAR Amount. Upon exercise of a SAR, a Participant shall be entitled to
receive payment from the Company in an amount determined by multiplying: 
 (a) The difference between the Fair
Market Value of a Share on the date of exercise over the exercise price; times 
 (b) The number of Shares with
respect to which the SAR is exercised. 
 6.6 Payment Upon Exercise of SAR. At the discretion of the Committee, payment
for a SAR may be in cash, Shares or a combination thereof. 
 SECTION 7 

RESTRICTED STOCK AND RESTRICTED STOCK UNITS 
 7.1 Grant of Restricted Stock and Restricted Stock Units. Subject to the terms and provisions of the Plan, the Committee, at any time and from time to time, may grant Shares of Restricted Stock or
Restricted Stock Units to Employees and Consultants in such amounts as the Committee, in its sole discretion, shall determine. The Committee, in its sole discretion, shall determine the number of Shares to be granted to each Participant, provided
that during any Fiscal Year, no Participant shall be granted more than 400,000 Shares of Restricted Stock or Restricted Stock Units. 
 7.2 Restricted Stock and Restricted Stock Units Agreement. Each Award of Restricted Stock or Restricted Stock Units shall be evidenced by an Award Agreement that shall specify the Period of
Restriction, the number of Shares granted, any price to be paid for the Shares, and such other terms and conditions as the Committee, in its sole discretion, shall determine. Unless the Committee determines otherwise, Shares of Restricted Stock
shall be held by the Company as escrow agent until the restrictions on such Shares have lapsed. 
 7.3 Transferability.
Shares of Restricted Stock or Restricted Stock Units may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated until the end of the applicable Period of Restriction. 

7.4 Other Restrictions. The Committee, in its sole discretion, may impose such other restrictions on Shares of Restricted Stock or
Restricted Stock Units as it may deem advisable or appropriate, in accordance with this Section 7.4. 

7.4.1 General Restrictions. The Committee may set restrictions based upon the achievement of specific performance
objectives (Company-wide, business unit or individual), applicable federal or state securities laws, or any other basis determined by the Committee in its discretion. 

7.4.2 Section 162(m) Performance Restrictions. For purposes of qualifying grants of Restricted Stock and Restricted
Stock Units as “performance-based compensation” under section 162(m) of the Code, the Committee, in its discretion, may set restrictions based upon the achievement of Performance Goals. The Performance Goals shall be set by the
Committee on or before the latest date permissible to enable the Restricted Stock or Restricted Stock Units to qualify as “performance-based compensation” under section 162(m) of the Code. In granting Restricted Stock or Restricted
Stock Units which is intended to qualify under section 162(m) of the Code, the Committee shall follow any procedures determined by it from time to time to be necessary or appropriate to ensure qualification of the Restricted Stock or Restricted
Stock Units under section 162(m) of the Code (e.g., in determining the Performance Goals). 
 7.4.3
Legend on Certificates. The Committee, in its discretion, may legend the certificates representing Restricted Stock to give appropriate notice of such restrictions. For example, the Committee may determine that some or all certificates
representing Shares of Restricted Stock shall bear the following legend: 
 “The sale or other transfer of the shares of
stock represented by this certificate, whether voluntary, involuntary, or by operation of law, is subject to certain restrictions on transfer as set forth in the Varian Medical Systems, Inc. 2005 Omnibus Stock Plan, and in a Restricted Stock
Agreement. A copy of the Plan and such Restricted Stock Agreement may be obtained from the Secretary of Varian Medical Systems, Inc.” 

  
 9 

 7.5 Removal of Restrictions. Shares of Restricted Stock covered by each Restricted
Stock grant made under the Plan shall be released from escrow as soon as practicable after the last day of the Period of Restriction. The Committee, in its discretion, may accelerate the time at which any restrictions shall lapse, and remove any
restrictions. After the restrictions have lapsed, the Participant shall be entitled to have any legend or legends under Section 7.4 removed from his or her Share certificate, and the Shares shall be freely transferable by the Participant.

 7.6 Voting Rights. During the Period of Restriction, Participants holding Shares of Restricted Stock granted hereunder
may exercise full voting rights with respect to those Shares, unless otherwise provided in the Award Agreement. 
 7.7
Dividends and Other Distributions. During the Period of Restriction, Participants holding Shares of Restricted Stock shall be entitled to receive all dividends and other distributions paid with respect to such Shares unless otherwise provided
in the Award Agreement. If any such dividends or distributions are paid in Shares, the Shares shall be subject to the same restrictions on transferability and forfeitability as the Shares of Restricted Stock with respect to which they were paid.

 7.8 Return of Restricted Stock to Company. On the date set forth in the Award Agreement, the Restricted Stock for
which restrictions have not lapsed shall revert to the Company and again shall become available for grant under the Plan. 

SECTION 8 

PERFORMANCE UNITS AND PERFORMANCE SHARES 
 8.1 Grant of Performance Units and Shares. Performance Units and Performance Shares may be granted to Employees and Consultants at any time and from time to time, as shall be determined by the
Committee, in its sole discretion. The Committee shall have complete discretion in determining the number of Performance Units and Performance Shares granted to any Participant, provided that during any Fiscal Year, no more than 400,000 Performance
Shares or Performance Units may be granted to any Participant. 
 8.2 Initial Value. Each Performance Unit shall have an
initial value that is established by the Committee on or before the Grant Date, provided that such value shall not exceed the Fair Market Value of a Share on the Grant Date. Each Performance Share shall have an initial value equal to the Fair Market
Value of a Share on the Grant Date. 
 8.3 Performance Objectives and Other Terms. The Committee shall set performance
objectives in its discretion, which, depending on the extent to which they are met, will determine the number or value of Performance Units or Shares that will be paid out to the Participants. The Committee may set performance objectives based upon
the achievement of Company-wide, business unit, or individual goals, or any other basis determined by the Committee in its discretion. The time period during which the performance objectives must be met shall be called the “Performance
Period.” Each Award of Performance Units or Shares shall be evidenced by an Award Agreement that shall specify the Performance Period, and such other terms and conditions as the Committee, in its sole discretion, shall determine. 

8.3.1 General Performance Objectives. The Committee may set performance objectives based upon the achievement of
Company-wide, business unit or individual goals, or any other basis determined by the Committee in its discretion. 
 8.3.2 Section 162(m) Performance Objectives. For purposes of qualifying grants of Performance Units or Shares as “performance-based compensation” under section 162(m) of the
Code, the 

  
 10 

 
Committee, in its discretion, may determine that the performance objectives applicable to Performance Units or Shares shall be based on the achievement of Performance Goals. The Performance Goals
shall be set by the Committee on or before the latest date permissible to enable the Performance Units or Shares to qualify as “performance-based compensation” under section 162(m) of the Code. In granting Performance Units or Shares
which are intended to qualify under section 162(m) of the Code, the Committee shall follow any procedures determined by it from time to time to be necessary or appropriate to ensure qualification of the Performance Units or Shares under
section 162(m) of the Code (e.g., in determining the Performance Goals). 
 8.4 Earning of Performance Units and
Performance Shares. After the applicable Performance Period has ended, the Participant shall be entitled to receive a payout of the number of Performance Units or Shares earned during the Performance Period, depending upon the extent to which
the applicable performance objectives have been achieved. After the grant of a Performance Unit or Share, the Committee, in its sole discretion, may reduce or waive any performance objectives for Award. 

8.5 Form and Timing of Payment. Payment of earned Performance Units or Performance Shares shall be made as soon as
practicable after the expiration of the applicable Performance Period. The Committee, in its sole discretion, may pay such earned Awards in cash, Shares or a combination thereof. 

8.6 Cancellation. On the date set forth in the Award Agreement, all unearned or unvested Performance Units or Performance Shares
shall be forfeited to the Company, and again shall be available for grant under the Plan. 
 SECTION 9 

NON-EMPLOYEE DIRECTORS 
 9.1 Non-Employee Director Options. Subject to the terms and provisions of the Plan, Non-qualified Stock Options may be issued to Non-employee Directors at any time and from time to time, as
determined by the Board in its sole discretion, including the number of Shares subject to each Option, and the terms and conditions of such Awards. 
 9.2 Terms of Options. 
 9.2.1 Option Agreement. Each
Option granted pursuant to this Section 9 shall be evidenced by a written stock option agreement, which shall be executed by the Non-employee Director and the Company. 

9.2.2 Exercise Price. The Exercise Price for the Shares subject to each Option granted pursuant to this
Section 9 shall be one hundred percent (100%) of the Fair Market Value of such Shares on the Grant Date. 
 9.2.3 Exercisability. Unless provided otherwise in an Award Agreement, each Option granted pursuant to this Section 9 shall be fully exercisable on the Grant Date. 

9.2.4 Expiration of Options. Subject to Section 10.13, unless provided otherwise in an Award Agreement, each
Option shall terminate upon the first to occur of the following events: 
 (a) The expiration of seven
(7) years from the Grant Date; or 
 (b) The expiration of three (3) months from the date of the
Non-employee Director’s Termination of Service for a reason (including, but not limited to the Non-Employee Director’s resignation) other than death, Disability, completion of the Participant’s term as a Director or Retirement; or

 (c) The expiration of three (3) years from the date of the Non-employee Director’s Termination of
Service by reason of completion of the Participant’s term as a Director, Disability or Retirement. 

  
 11 

 9.2.5 Death of Director. Subject to Section 10.13,
notwithstanding Section 9.2.4, if a Non-employee Director dies prior to the expiration of his or her options in accordance with Section 9.2.4, his or her options shall terminate three (3) years after the date of his or her death.

 9.2.6 Not Incentive Stock Options. Options granted pursuant to this Section 9 shall not be
designated as Incentive Stock Options. 
 9.2.7 Other Terms. Unless provided otherwise in an Award
Agreement, all provisions of the Plan not inconsistent with this Section 9 shall apply to Options granted to Non-employee Directors; provided, however, that Section 5.2 (relating to the Committee’s discretion to set the terms and
conditions of Options) shall be inapplicable with respect to Non-employee Directors. 
 9.3 Substitute Options.
Notwithstanding the provisions of Section 9.2.2, in the event that the Company or an Affiliate consummates a transaction described in section 424(a) of the Code (e.g., the acquisition of property or stock from an unrelated corporation),
persons who become Non-employee Directors on account of such transaction may be granted Options in substitution for options granted by their former employer. If such substitute Options are granted, the Committee, in its sole discretion and
consistent with section 424(a) of the Code, shall determine the exercise price of such substitute Options. 
 9.4
Elections by Non-employee Directors. Pursuant to such procedures as the Board (in its discretion) may adopt from time to time, each Non-employee Director may elect to forego receipt of all or a portion of the annual retainer, committee chair
fees, meeting attendance fees and other cash compensation otherwise due to the Non-employee Director in exchange for Shares. The number of Shares received by any Non-employee Director shall equal the amount of foregone compensation divided by the
Fair Market Value of a Share on the date that the compensation otherwise would have been paid to the Non-employee Director, rounded up to the nearest whole number of Shares. In addition, pursuant to such procedures as the Board (in its discretion)
may adopt from time to time, each Non-employee Director may elect to forego receipt of all or a portion of the annual retainer, committee chair and meeting attendance fees and other cash compensation otherwise due to the Non-employee Director in
exchange for an Option to purchase Shares. The number of Shares subject to such an Option received by any Non-employee Director shall equal the amount of foregone compensation multiplied by four (4) and divided by the Fair Market Value of a
Share on the date that the compensation otherwise would have been paid to the Non-employee Director, rounded up to the nearest whole number of Shares. All Options granted pursuant to this Section 9.4 shall be subject to the restrictions of
Section 9.2. 
 9.5 Deferred Stock Units. Subject to the terms and provisions of the Plan, Awards of Deferred Stock
Units may be granted to Non-employee Directors at any time and from time to time, as determined by the Board in its sole discretion, including the number of Deferred Stock Units subject to each Award and the terms and conditions of such Awards.

 9.6 Terms of Deferred Stock Units. 

9.6.1 Deferred Stock Unit Agreement. Deferred Stock Units granted pursuant to Section 9.5 shall be evidenced
by a written Award Agreement, which shall be executed by the Non-employee Director and the Company. 
 9.6.2
Vesting. Unless otherwise provided in an Award Agreement, Awards of Deferred Stock Units shall vest over a period of not less than one year from the date of grant, and may vest pro rata over such time. Vesting may be accelerated in limited
situations such as death of the Non-employee Director and change in control of the Company. 
 9.6.3
Payment. Except as may be provided in an Award Agreement, Deferred Stock Unit Awards will be paid in Shares. Awards of Deferred Stock Units may be paid in a lump sum or in installments or, in accordance with procedures established by the
Committee, on a deferred basis subject to the requirements of Section 409A of the Code. 

  
 12 

 9.6.4 Other Terms. Unless provided otherwise in an Award Agreement,
all provisions of the Plan applicable to Restricted Stock Units not inconsistent with Section 9.5 and this Section 9.6 shall apply to Deferred Stock Units granted to Non-employee Directors. 

SECTION 10 

MISCELLANEOUS 
 10.1 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. 
 10.2 Participation. No Employee or Consultant 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. 
 10.3
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 Agreement, 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. 
 10.4 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. 
 10.5 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 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 and, subject to the terms of the Plan and of
the applicable Award Agreement, any unexercised vested Award may be exercised by the administrator or executor of the Participant’s estate. 
 10.6 Nontransferability of Awards. Except as provided below, 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 10.5. All rights with respect to an Award granted to a Participant shall be available during his or her lifetime only to the Participant. Notwithstanding the
foregoing, the Committee, or the Board in the case of Awards to Non-Employee Directors, may, in its sole discretion, permit the transfer of an Award to an individual or entity other than the Company (each transferee thereof a “Permitted
Assignee”), subject to such restrictions as the Committee, or the Board, in its sole discretion may impose. 
 10.7 No
Rights as Stockholder. Except to the limited extent provided in Sections 7.6 and 7.7, no Participant (nor any beneficiary) shall have any of the rights or privileges of a stockholder of the Company with respect to any Shares issuable pursuant to
an Award (or exercise thereof), 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 Participant (or beneficiary).

  
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 10.8 Withholding Requirements. Prior to the delivery of any Shares or cash pursuant
to an Award (or exercise thereof), the Company shall have the power and the right to deduct or withhold, or require a Participant to remit to the Company, an amount sufficient to satisfy federal, state, local and foreign taxes (including the
Participant’s FICA obligation) required to be withheld with respect to such Award (or exercise thereof). Notwithstanding any contrary provision of the Plan, if a Participant fails to remit to the Company such withholding amount within the time
period specified by the Committee (in its discretion), the Participant’s Award may, in the Committee’s discretion, be forfeited and in such case the Participant shall not receive any of the Shares subject to such Award. 

10.9 Withholding Arrangements. The Committee, in its sole discretion and pursuant to such procedures as it may specify from time
to time, may permit or require a Participant to satisfy all or part of the minimum required tax withholding obligations in connection with an Award by (a) having the Company withhold otherwise deliverable Shares, or (b) delivering to the
Company already-owned Shares having a Fair Market Value equal to the amount required to be withheld. The Fair Market Value of the Shares to be withheld or delivered shall be determined as of the date that the taxes are required to be withheld.

 10.10 Deferrals. The Committee, in its sole discretion, may permit a Participant to defer receipt of the payment of
cash or the delivery of Shares 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.
Notwithstanding the foregoing, any deferral under this Section 10.10 shall be made in accordance with the provisions of section 409A of the Code and the applicable guidance issued by the Secretary of the Treasury thereunder. 

10.11 Dividend Equivalents. Subject to the provisions of the Plan and any Award Agreement, the recipient of an Award (including,
without limitation, any deferred Award) may, if so determined by the Committee, or the Board in the case of Awards to Non-Employee Directors, be entitled to receive, currently or on a deferred basis, cash or stock dividends, or cash payments in
amounts equivalent to cash or stock dividends on Shares (“dividend equivalents”) with respect to the number of Shares covered by the Award, as determined by the Committee, or the Board in the case of Non-Employee Directors, in its sole
discretion, and the Committee or Board may provide that such amounts (if any) shall be deemed to have been reinvested in additional Shares or otherwise reinvested. 
 10.12 Prohibition on Repricings. Options and SARs may not be repriced without the approval of the Company’s stockholders. For this purpose, “reprice” means that that the
Company has: (a) lowered or reduced the Exercise Price of outstanding Options and/or outstanding SARs after they have been granted, (b) canceled an Option and/or a SAR when the applicable Exercise Price exceeds the Fair
Market Value of the underlying Shares in exchange for cash or another Award and (c) taken any other action with respect to an Option and/or a SAR that would be treated as a repricing under the rules and regulations of the principal
securities market on which the Shares are traded. An adjustment pursuant to Section 4.3 shall not be treated as a repricing. 
 10.13 Maximum Term of Options and SARs. Notwithstanding anything in Sections 5, 6 and 9 to the contrary, no Option or SAR granted after February 15, 2007 shall have a term that exceeds seven
(7) years from the Grant Date. 
 10.14 Restatement of Financial Results. Notwithstanding anything to the contrary
set forth in the Plan or any Award Agreement, in the event of a restatement of incorrect financial results, the Board will review the conduct of executive officers in relation to the restatement. If the Board determines that an
executive officer has engaged in misconduct or other violations of the Company’s code of ethics in connection with the restatement, the Board would, in its discretion, take appropriate action to remedy the
misconduct, including, without limitation, seeking reimbursement of any portion of performance-based or incentive compensation paid or awarded to the executive under the Plan that is greater than would have been paid or awarded if calculated
based on the restated financial results, to the extent not prohibited by governing law. For this purpose, the term “executive officer” means executive officers as defined by the Securities Exchange Act of 1934, as amended. Such action
by the Board would be in addition to any other actions the Board or the Company may take under the Company’s policies, as modified from time to time, or any actions imposed by law enforcement, regulators or other authorities. 

  
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 SECTION 11 
 AMENDMENT, TERMINATION AND DURATION 
 11.1 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 Award theretofore issued to such Participant. Any amendment shall also, to the extent required by applicable law or regulation, be subject to stockholder approval. No Award may be granted during any
period of suspension or after termination of the Plan. 
 11.2 Duration of the Plan. This third amended and restated Plan
shall, subject to Section 11.1 (regarding the Board’s right to amend or terminate the Plan), remain in effect for ten (10) years from the Adoption Date. Without further stockholder approval, no Incentive Stock Option may be granted
under the Plan after ten (10) years from the Adoption Date. 
 SECTION 12 

LEGAL CONSTRUCTION 
 12.1 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. 
 12.2 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. 

12.3 Requirements of Law. The granting of Awards and the issuance of Shares 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. 
 12.4 Governing Law. The Plan and all Award Agreements 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. 
 12.5 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 Medical Systems, Inc., by its duly authorized officer, has executed the Plan on the date indicated below.

  

					
		 		 	Varian Medical Systems, Inc.
			
	Dated: February 9, 2012	 		 	 By: /s/ John W. Kuo

		 		 	John W. Kuo
		 		 	Corporate Vice President, General Counsel & Secretary

  
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