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                                                                    EXHIBIT 10.7

                             VIASYS HEALTHCARE INC.

                    DEFERRED COMPENSATION PLAN FOR DIRECTORS

SECTION 1. PARTICIPATION. Any director of Viasys Healthcare Inc. (the "Company")
may elect to have such percentage as he or she may specify of the fees otherwise
payable to him or her deferred and paid to him or her as provided in this Plan.
A director who is also an employee of the Company or any subsidiary or parent of
the Company, shall not be eligible to participate in this Plan. Each election
shall be made by notice in writing delivered to the Secretary of the Company, in
such form as the Secretary shall designate, and each election shall be
applicable only with respect to fees earned subsequent to the date of the
election for the period designated in the form. The term "participant" as used
herein refers to any director who shall have made an election. No participant
may defer the receipt of any fees to be earned after the later to occur of
either (a) the date on which the participant shall retire from or otherwise
cease to engage in his or her principal occupation or employment or (b) the date
on which he or she shall cease to be a director of the Company, or such earlier
date as the Board of Directors of the Company (the "Board"), may designate (the
"deferral termination date"). In the event that the participant's deferral
termination date is the date on which he or she ceases to engage in his or her
principal occupation or employment, the participant or a personal representative
shall advise the Company of that date by written notice delivered to the
Secretary of the Company.

SECTION 2. ESTABLISHMENT OF DEFERRED COMPENSATION ACCOUNTS. There shall be
established for each participant a bookkeeping account to be designated as that
participant's deferred compensation account.

SECTION 3. ALLOCATIONS TO DEFERRED COMPENSATION ACCOUNTS. There shall be
allocated to each participant's deferred compensation account, as of the end of
each quarter, an amount equal to his or her fees for that quarter which that
participant shall have elected to have deferred pursuant to Section 1.

SECTION 4. STOCK UNITS AND STOCK UNIT ACCOUNTS. All amounts allocated to a
participant's deferred compensation account pursuant to Section 3 and Section 5
shall be converted, at the end of each quarter, into stock units by dividing the
accumulated balance in the deferred compensation account as of the end of that
quarter by the average last sale price per share of the Company's common stock
as reported in The Wall Street Journal, for the five business days up to and
including the last business day of that quarter. The number of stock units, so
determined, rounded to the nearest one-hundredth of a share, shall be credited
to a separate stock unit account to be established for the participant, and the
aggregate value thereof, as determined herein, shall be charged to the
participant's deferred compensation account. No amounts credited to the
participant's deferred compensation account pursuant to Section 5 subsequent to
the close of the fiscal year in which occurs the participant's deferral
termination date shall be converted into stock units. Any such amount shall be
distributed in cash as provided in Section 8. A maximum number of 25,000 shares
of the Company's common stock may be represented by stock units credited under
this Plan, subject to proportionate adjustment in the event of any stock
dividend, stock split or other capital change affecting the Company's common
stock.

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SECTION 5. CASH DIVIDEND CREDITS. Additional credits shall be made to a
participant's deferred compensation account, until all distributions shall have
been made from the participant's stock unit account, in amounts equal to the
cash dividends (or the fair market value of dividends paid in property other
than dividends payable in common stock of the Company) which the participant
would have received from time to time had he or she been the owner on the record
dates for the payment of such dividends of the number of shares of the Company's
common stock equal to the number of units in his or her stock unit account on
those dates.

SECTION 6. STOCK DIVIDEND CREDITS. Additional credits shall be made to a
participant's stock unit account, until all distributions shall have been made
from the participant's stock unit account, of a number of units equal to the
number of shares of the Company's common stock, rounded to the nearest
one-hundredth share, which the participant would have received from time to time
as stock dividends had he or she been the owner on the record dates for the
payments of such stock dividends of the number of units of the Company's common
stock equal to the number of units credited to his or her stock unit account on
those dates.

SECTION 7. ADJUSTMENTS IN THE EVENT OF CERTAIN TRANSACTIONS. In the event of a
stock dividend, stock split or combination of shares, or other distribution with
respect to holders of Common Stock other than normal cash dividends, the number
of units then credited to a partipant's stock unit account shall be
appropriately adjusted on the same basis. In the event of any recapitalization,
merger or consolidation involving the Company, any transaction in which the
Company becomes a subsidiary of another entity, any sale or other disposition of
all or a substantial portion of the assets of the Company or any similar
transaction, as determined by the Board, the Board in its discretion may
terminate the Plan pursuant to Section 12.

SECTION 8. DISTRIBUTION OF STOCK AND CASH AFTER PARTICIPANT'S DEFERRAL
TERMINATION DATE. When a participant's deferral termination date shall occur,
the Company shall become obligated to make the distributions prescribed in the
following paragraphs (a) and (b).

     (a)  The Company shall distribute to the participant the number of shares
of the common stock of the Company which shall equal the total number of units
accumulated in his or her stock unit account as of the close of the fiscal year
in which the participant's deferral termination date occurs. Such distribution
of stock shall be made in ten annual installments, unless, at least six months
prior to his or her deferral termination date, the participant shall have
elected, by notice in writing filed with the Secretary of the Company, to have
such distribution made in five annual installments. In either such case, the
installments shall be of as nearly equal number of shares as practicable,
adjusted to reflect any changes pursuant to Sections 6 and 7 in the number of
units remaining in the participant's stock unit account. The first such
installment shall be distributed within 60 days after the close of the fiscal
year in which the participant's deferral termination date occurs. The remaining
installments shall be distributed at annual intervals thereafter. Anything
herein to the contrary notwithstanding, the Company shall have the option, if
its Board of Directors shall by resolution so determine, in lieu of making
distribution in ten or five annual installments as set forth above, to
distribute stock or any remaining installments thereof in a single distribution
at any time following the close of the fiscal year in which the participant's
deferral termination date occurs. Distribution of stock

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made hereunder may be made from shares of common stock held in the treasury
and/or from authorized but previously unissued shares of common stock.

     (b)  The Company shall distribute to the participant sums in cash equal to
the balance credited to his or her deferred compensation account as of the close
of the fiscal year in which his or her deferral termination date occurs plus
such additional amounts as shall be credited thereto from time to time
thereafter pursuant to Section 5. The cash distribution shall be made on the
same dates as the annual distributions made pursuant to paragraph (a) above, and
each cash distribution shall consist of the entire balance credited to the
participant's deferred compensation account at the time of the annual
distribution.

     If a participant's deferral termination date shall occur by reason of his
or her death or if he or she shall die after his or her deferral termination
date but prior to receipt of all distributions of stock and cash provided for in
this Section 8, all stock and cash remaining distributable hereunder shall be
distributed to such beneficiary as the participant shall have designated in
writing and filed with the Secretary of the Company or, in the absence of
designation, to the participant's legal representative. Such distributions shall
be made in the same manner and at the same intervals as they would have been
made to the participant had he or she continued to live.

SECTION 9. PARTICIPANT'S RIGHTS UNSECURED. The right of any participant to
receive distributions under Section 8 shall be an unsecured claim against the
general assets of the Company. The Company may, but shall not be obligated to,
acquire shares of its outstanding common stock from time to time in anticipation
of its obligation to make such distributions, but no participant shall have any
rights in or against any shares of stock so acquired by the Company. All such
stock shall constitute general assets of the Company and may be disposed of by
the Company at such time and for such purposes as it may deem appropriate.

SECTION 10. CHANGE IN CONTROL

     10.1. IMPACT OF EVENT

     In the event of a "Change in Control" as defined in Section 10.2, the Plan
shall terminate and full distribution shall be made from all participants'
deferred compensation accounts and stock unit accounts effective upon the Change
in Control.

     10.2. DEFINITION OF "CHANGE IN CONTROL"

     "CHANGE IN CONTROL" means an event or occurrence set forth in any one or
more of subsections (a) through (d) below (including an event or occurrence that
constitutes a Change in Control under one of such subsections but is
specifically exempted from another such subsection):

     (a)  the acquisition by an individual, entity or group (within the meaning
of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as
amended (the "Exchange Act")) (a "Person") of beneficial ownership of any
capital stock of the Company if, after such acquisition, such Person
beneficially owns (within the meaning of Rule 13d-3 promulgated under

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the Exchange Act) 40% or more of either (i) the then-outstanding shares of
common stock of the Company (the "Outstanding Common Stock") or (ii) the
combined voting power of the then-outstanding securities of the Company entitled
to vote generally in the election of directors (the "Outstanding Voting
Securities"); PROVIDED, HOWEVER, that for purposes of this subsection (a), the
following acquisitions of shares of Common Stock shall not constitute a Change
in Control: (i) any acquisition by the Company, (ii) any acquisition by any
employee benefit plan (or related trust) sponsored or maintained by the Company
or any corporation controlled by the Company, or (iii) any acquisition by any
corporation pursuant to a transaction which complies with clauses (i) and (ii)
of subsection (c) of this definition; or

     (b)  such time as the Continuing Directors (as defined below) do not
constitute a majority of the Board (or, if applicable, the Board of Directors of
a successor corporation to the Company), where the term "Continuing Director"
means at any date a member of the Board (i) who was a member of the Board as of
the date of the adoption of the original Plan by the Board or (ii) who was
nominated or elected subsequent to such date by at least a majority of the
directors who were Continuing Directors at the time of such nomination or
election or whose election to the Board was recommended or endorsed by at least
a majority of the directors who were Continuing Directors at the time of such
nomination or election; PROVIDED, HOWEVER, that there shall be excluded from
this clause (ii) any individual whose initial assumption of office occurred as a
result of an actual or threatened election contest with respect to the election
or removal of directors or other actual or threatened solicitation of proxies or
consents, by or on behalf of a person other than the Board; or

     (c)  the consummation of a merger, consolidation, reorganization,
recapitalization or statutory share exchange involving the Company or a sale or
other disposition of all or substantially all of the assets of the Company in
one or a series of transactions (a "Business Combination"), unless, immediately
following such Business Combination, each of the following two conditions is
satisfied: (i) all or substantially all of the individuals and entities who were
the beneficial owners of the Outstanding Common Stock and Outstanding Voting
Securities immediately prior to such Business Combination beneficially own,
directly or indirectly, more than 60% of the then-outstanding shares of common
stock and the combined voting power of the then-outstanding securities entitled
to vote generally in the election of directors, respectively, of the resulting
or acquiring corporation in such Business Combination (which shall include,
without limitation, a corporation which as a result of such transaction owns the
Company or substantially all of the Company's assets either directly or through
one or more subsidiaries) (such resulting or acquiring corporation is referred
to herein as the "Acquiring Corporation") in substantially the same proportions
as their ownership, immediately prior to such Business Combination, of the
Outstanding Common Stock and Outstanding Voting Securities, respectively; and
(ii) no Person (excluding the Acquiring Corporation or any employee benefit plan
(or related trust) maintained or sponsored by the Company or by the Acquiring
Corporation) beneficially owns, directly or indirectly, 40% or more of the then
outstanding shares of common stock of the Acquiring Corporation, or of the
combined voting power of the then-outstanding securities of such corporation
entitled to vote generally in the election of directors; or

     (d)  approval by the stockholders of the Company of a complete liquidation
or dissolution of the Company.

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SECTION 11. RIGHTS NOT TRANSFERABLE. Rights under this Plan are not transferable
by a participant other than by will or the laws of descent and distribution, and
are exercisable during the participant's lifetime only by the participant.

SECTION 12. AMENDMENT AND TERMINATION OF THE PLAN. The Board of Directors of the
Company may amend or terminate the Plan at any time and from time to time,
PROVIDED, however, that no amendment adversely affecting credits already made to
any participant's deferred compensation account or stock unit account may be
made without the consent of that participant or, if that participant has died,
that participant's beneficiary. Upon termination of the Plan, the Company shall
be obligated to distribute to the participant either of the following as the
Board of Directors of the Company, in its sole discretion, may determine: (i)
the number of shares of the common stock of the Company which shall equal the
total number of units accumulated in the participant's stock unit account as of
the effective date of termination of the Plan or (ii) a sum in cash equal to the
balance credited to the participant's deferred compensation account as of the
effective date of termination of the Plan.

SECTION 13. GOVERNING LAW. The provisions of the Plan shall be governed by and
interpreted in accordance with the laws of the State of Delaware, without regard
to any conflicts of law.

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                                                                    EXHIBIT 10.9

THERMO
ELECTRON CORPORATION

81 Wyman Street
Post Office Box 9046
Waltham, MA  02254-9046

                                                             September 24, 2001

Mr. Randy Thurman
46 Wyndemere Lake Drive
Chester Springs, PA  19425

Dear Randy:

     You have requested that the number of shares of Viasys Healthcare Inc.
common stock reserved for issuance under the Viasys equity incentive plan be
increased from the previously agreed upon 15% of the issued and outstanding
shares of Viasys common stock on the distribution date to 18% of the issued and
outstanding shares of Viasys common stock on the distribution date in order to
accommodate the larger than anticipated number of shares of Viasys common stock
for converted Thermo Electron stock options as well as your recommended stock
option grants to Viasys employees. Thermo Electron was unwilling to so increase
the size of the plan without a reduction in the number of shares of Viasys
common stock underlying the stock options outstanding on the distribution date
to no more than 15% of the issued and outstanding shares of Viasys common stock
on that date.

     In connection with the foregoing, you have volunteered to reduce the size
of your initial stock option grant to 1,400,000. I will inform the Viasys Board
of Directors of your voluntary gesture, and my expectation is that they will
take it into account in making future compensation decisions. In order to effect
your willingness to so reduce the size of your initial stock option grant,
Section 7 of your Employment Agreement is hereby amended and restated to read as
follows:

     "7.  INITIAL STOCK OPTION AWARD. The Company shall grant to the Executive a
7-year non-qualified stock option to purchase 1,400,000 shares of Stock (the
"Initial Stock Option") at an exercise price per share equal to $9.25. Such
grant shall be substantially in accordance with and subject to the terms and
conditions of the Stock Option Agreement attached hereto as EXHIBIT C and
incorporated herein by reference, which the Company and the Executive shall
enter into as soon as practicable after the date hereof."
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                                      -2-

     If the foregoing is acceptable to you, kindly sign a copy of this letter
indicating your acceptance and agreement and return the executed copy to my
attention.

                                         Thermo Electron Corporation

                                         By: /s/ Richard F. Syron
                                            ----------------------------------
                                            Richard F. Syron
                                            Chairman and Chief Executive Officer

Accepted and agreed to as of the date first set forth above:

     /s/ Randy H. Thurman
     -------------------------------
     Randy H. Thurman, individually

Accepted and agreed to as of the date first set forth above with respect to the
amendment to the Employment Agreement:

     VIASYS HEALTHCARE INC.

     /s/ Randy H. Thurman
     ----------------------------
     Randy H. Thurman
     President and Chief Executive Officer

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