Document:

Description of Certain Compensatory Arrangements

 Exhibit 10.19 
 Description of Certain Compensatory Arrangements 
 Executive Compensation 
 Varian Medical Systems, Inc. (the “Company”) does not have a written employment agreement with any of its named executive officers (determined
by reference to the Company’s 2007 proxy statement dated December 29, 2006). On November 20, 2007, the Compensation and Management Development Committee (the “Compensation Committee”) of the Company’s Board of Directors
(the “Board”) approved new compensation arrangements for the Company’s Principal Executive Officer, Principal Financial Officer, and the other named executive officers. Set forth below are the current annual base salaries and the base
salaries that will go into effect on December 29, 2007: 
  

							
	 Name
	  	Current
Base Salary	  	Base Salary as
of 12/29/07
	 Timothy E. Guertin,
Corporate President and Chief Executive Officer
	  	$	800,000	  	$	835,000
	 Elisha W. Finney,
Corporate Senior Vice President, Finance and Chief Financial Officer
	  	$	475,000	  	$	495,000
	 Dow R. Wilson,
Corporate Executive Vice President and President, Oncology Systems
	  	$	560,000	  	$	580,000
	 Robert H. Kluge,
Corporate Vice President and President, X-ray Products
	  	$	377,000	  	$	392,000
	 John W. Kuo,
Corporate Vice President, General Counsel and Corporate Secretary
	  	$	330,000	  	$	345,000

 On November 16, 2007, the Compensation and Management Development Committee also set the
performance goals for fiscal year 2008 under the Company’s Management Incentive Plan (“MIP”) for the named executive officers and certain other executives. In the case of Timothy E. Guertin, Elisha W. Finney and John W. Kuo, payments
under the MIP will be based 50% on a percentage growth of earnings before interest and taxes (“EBIT”) for the Company as a whole, 25% on growth in revenue for the Company and 25% on growth in net orders for the Company as a whole. In the
case of Dow R. Wilson, payment under the MIP will be based 25% on the percentage growth in EBIT for the Company as a whole, 12.5% on growth in revenue for the Company as a whole, 12.5% on growth in net orders for the Company as a whole, 25% on the
percentage growth in EBIT for the Oncology Systems business segment, 12.5% on growth in revenue for the Oncology Systems business segment and 12.5% on growth in net orders for the Oncology Systems business segment. In the case of Robert H. Kluge,
payment under the MIP will be based 30% on the percentage growth in EBIT for the Company as a whole, 12.5% on growth in revenue for the Company as a whole, 7.5% on growth in net orders for the Company as a whole, 30% on the percentage growth in EBIT
for the X-ray Products business segment, 12.5% on growth in revenues for the X-ray Products business segment and 7.5% on growth in net orders for the X-ray Products business segment. Payment under the MIP may vary from $0 to 200% of base salary
based upon achievement under these performance goals. 

 Set forth below are the percentages of base salary each of these individuals would receive if the target
and maximum levels under the MIP are achieved: 
  

							
	 Name
	  	Target	 	 	Maximum	 
	 Timothy E. Guertin
	  	100	%	 	200	%
	 Elisha W. Finney
	  	80	%	 	160	%
	 Dow R. Wilson
	  	80	%	 	160	%
	 Robert H. Kluge
	  	60	%	 	120	%
	 John W. Kuo
	  	60	%	 	120	%

 These executive officers have also been extended certain perquisites by the Compensation
Committee, such as use of a leased automobile under the Company’s Executive Car Program. Under the Executive Car Program, the Company provides a leased vehicle costing up to $80,000 for the Chief Executive Officer and leased vehicles costing up
to $66,000 for the other named executive officers. Insurance, maintenance expenses and fuel costs are also included in the Executive Car Program. Participants have an option to purchase the car at the end of its three-year lease period or upon
retirement at the lower of its depreciated book value or its fair market value (based on the Kelley Blue Book Auto Market Report wholesale value). 
 The Company does not permit its executives to use the Company’s fractionally owned aircraft for purely personal trips. However, the Company allows and includes in an executive’s compensation aircraft use attributable to permitted
spousal use of the fractionally owned aircraft for business purposes and spousal travel on commercial airplanes deemed valuable and appropriate for business purposes. The amount of compensation for permitted spousal use of the
Company’s fractionally owned aircraft is equal to the greater of: (a) the incremental cost to us of the usage by the spouse, and (b) the price of a first-class commercial airline ticket for the same trip. 
 The Company reimburses executive officers and non-executive officers for financial planning, estate planning, tax planning, tax return preparation and
financial counseling services (to a maximum of $6,500 per year and unlimited for the Chief Executive Officer). The Company also reimburses certain individuals, including all executive officers and non-executive officers, for annual medical
examinations (up to a maximum of $1,500 per year). Beginning on January 1, 2006, reimbursement for personal taxes paid on all perquisites, with the exception of leased vehicles, was discontinued. The elimination of reimbursement for personal
taxes associated with leased vehicles is being phased-in as each applicable lease expires. 
 Additionally, for the benefit of the
executives, the Company also provides a Company supplemental contribution match representing retirement contributions which could not be contributed to the executives’ qualified retirement accounts due to Internal Revenue Code limitations. The
Company also permits executives to participate in the Company’s Deferred Compensation Plan and in compensation and benefit programs generally available to all other U.S. employees, such as the Company’s Employee Incentive Plan, Employee
Stock Purchase Plan, 401(k) Retirement Program and supplemental life and disability insurance programs. 
 Mr. Wilson’s
employment is governed by an offer letter that provides for certain additional compensation. Please refer to Exhibits 10.17 and 10.18 of the Company’s Annual Report on Form 10-K for the fiscal year ended September 28, 2007. 

 Compensation of Directors 
 Annual Cash Compensation. Each non-employee director receives an annual retainer of $45,000, except that the lead director receives an annual
retainer of $60,000. The chairs of the Compensation and Management Development Committee and the Nominating and Corporate Governance Committee also receive an additional $10,000 annual retainer for serving in these positions, and the chair of the
Audit Committee receives an additional $15,000. Each non-employee director also receives $2,000 for each Board meeting attended ($1,000 if the Board meeting was an in-person meeting and the director attended by telephone or video conference), and
$1,500 for each committee meeting attended ($750 if the committee meeting was an in-person meeting and the director attended by telephone or video conference). Directors who are employees receive no compensation for their services as directors. All
directors, however, receive reimbursement for out-of-pocket expenses of the directors’ and the directors’ spouses (including tax reimbursement for spousal expenses) associated with attending Board and committee meetings and for expenses
related to directors’ continuing education programs. Currently, directors may convert their annual retainers into options to purchase shares of the Company’s common stock at the rate of $1 cash to $4 of stock options, at an exercise price
equal to the fair market value of the common stock on the grant date, which is the date that the cash compensation otherwise would have been paid. Under the Company’s equity compensation plans, the fair market value is equal to the closing
price of the Company’s common stock on the date of grant. These options are immediately exercisable and expire seven years after the grant date unless terminated earlier. Directors may alternatively elect to defer their retainer and/or meeting
fees under the Company’s Deferred Compensation Plan. Effective February 15, 2008, non-employee directors may no longer elect to receive options for shares of the Company’s common stock in lieu of cash compensation, but may elect to
receive such compensation as full-value shares of the Company’s common stock, at a value equal to the fair market value of the Company’s common stock on the date that the foregone cash compensation otherwise would have been paid.

 Equity Compensation. Currently, each new non-employee director receives an initial grant of non-qualified stock options for 16,000
shares of common stock and a grant of 4,000 Deferred Stock Units. Each continuing non-employee director receives an annual grant of non-qualified stock options for 8,000 shares of common stock and a grant of 2,000 Deferred Stock Units. Effective
February 15, 2008, the Board will no longer award an initial grant of stock options or Deferred Stock Units to a new non-employee director, and will grant to each continuing non-employee director an annual award of an option to purchase 5,000
shares of the Company’s common stock and an annual award of Deferred Stock Units having a fair market value on the date of grant of $100,000, based on the fair market value of the Company’s common stock on the date of grant. 
 Compensation for Levy as a Non-Executive Employee 
 In his role as a non-executive employee of the Company, Dr. Levy receives the following compensation, effective as of the close of business on February 16, 2007: 
  

	 	•	 	 base salary of $320,000; 

  

	 	•	 	 provision of a leased office space at a fair market value; 

  

	 	•	 	 provision of a part-time administrator; and 

  

	 	•	 	 eligibility for the Corporation’s non-executive employee health and welfare benefit plans, subject to his election and contributions towards those benefit
plans, subject to his election and contributions towards those benefit plans. 

 Dr. Levy is not eligible to participate in the Company’s Management Incentive Plan and in any
executive perquisite programs, including the Executive Car Program and reimbursement for executive physicals. He is also not eligible for equity awards, paid personal leave accrual or for any supplemental retirement contributions in excess of the
Company’s matching contributions under the Varian Medical Systems, Inc. Retirement Plan (the Company’s 401(k) Plan). On November 16, 2007, the Board reduced Dr. Levy’s base salary from $320,000 to $160,000, to be
effective as of the close of business on February 15, 2008. All other compensation will remain the same 
 In his role as a
non-executive employee of the Company (and in addition to his responsibilities as Chairman of the Board), Dr. Levy provides on-going advice and counsel to the management of the Company on strategic business and technological matters, and has
involvement with investor groups and key customers.Form of Registrant's Nonqualified Stock Option Agreement

 Exhibit 10.22 
 VARIAN MEDICAL SYSTEMS, INC. 
 SECOND AMENDED AND RESTATED 
 2005 OMNIBUS STOCK PLAN 
 NONQUALIFIED
STOCK OPTION AGREEMENT 
 Varian Medical Systems, Inc. (the “Company”) hereby grants the employee (“Employee”) named
on the Summary of Grant Award (the “Grant Summary”), a nonqualified stock option under the Company’s Second Amended and Restated 2005 Omnibus Stock Plan (the “Plan”), to purchase shares of common stock of the Company
(“Shares”) from the date of this Agreement (the “Grant Date”) and expiring on the Expiration. The maximum number of Shares purchasable pursuant to this option (“Shares Granted”), the purchase price per Share and the
option expiration date (the “Expiration Date”) are stated on the Grant Summary.* However, as provided in the Terms and Conditions of 2005 Omnibus Stock Plan Nonqualified Stock Option attached hereto as Appendix A (US), this option may
expire earlier than the Expiration Date. Subject to the provisions of Appendix A and of the Plan, the principal features of this option are as follows: 
  

			
	 Scheduled Vesting Dates:
	  	 Number of Shares**

		
	Date one (1) year from Grant Date	  	1/3rd of Shares Granted
	Date 13th month from Grant Date through 36th month from Grant date	  	1/36th of Shares Granted

  

	*	See “Grant Summary” page on the service provider web-site. 

  

	**	Shares vest in only whole share increments, fractions of shares vest only when they equal whole share increments. 

  

			
	 Event Triggering Termination of Option:
	  	 Maximum Time to Exercise
 After Triggering Event***:

		
	 Termination of Service for cause
	  	None
	 Termination of Service due to Disability
	  	1 year
	 Termination of Service due to Retirement
	  	3 years
	 Termination of Service due to death
	  	3 years
	 All other Terminations of Service
	  	3 months

  

	***	However, in no event may this option be exercised after the Expiration Date. 

 Your acceptance online at the service provider web-site or, when provided, your signature of a copy of this Nonqualified Stock Option Agreement, indicates your agreement and understanding that this option is subject
to all of the terms and conditions contained in Appendix A and the Plan. For example, important additional information on vesting and termination of this option is contained in Paragraphs 4 through 6 of Appendix A. ACCORDINGLY, PLEASE BE SURE TO
READ ALL OF APPENDIX A AND THE PLAN, WHICH CONTAINS THE SPECIFIC TERMS AND CONDITIONS OF THIS OPTION. YOU CAN REQUEST A COPY OF THE PLAN BY CONTACTING THE CORPORATE HUMAN RESOURCES OFFICE IN PALO ALTO, CALIFORNIA. 

 APPENDIX A 
 US 
 TERMS AND CONDITIONS OF NONQUALIFIED STOCK OPTION 
 1. Grant of Option. The Company hereby grants to the Employee under the Plan, as a separate incentive in connection with his or her employment and
not in lieu of any salary or other compensation for his or her services, a nonqualified stock option to purchase, on the terms and conditions set forth in this Agreement and the Plan, all or any part of an aggregate of the number of Shares Granted
as specified on the “Summary of Grant Award” page of the service provider web-site. 
 2. Exercise Price. The purchase price
per Share for this option (the “Exercise Price”) shall be the Grant Price in USD as specified on the “Summary of Grant Award” page of the service provider web-site, which is the Fair Market Value of a Share on the Grant Date.

 3. Number of Shares. The number and class of Shares specified in Paragraph 1 above, and/or the Exercise Price, are subject to
adjustment by the Committee 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. In the event an Employee’s termination of service due to the Employee’s Retirement within one (1) year following the Grant Date, then the number of Shares Granted shall be adjusted proportionally by the time during such one
(1) year period that the Employee remained an employee of the Company (based upon a 365 day year). For example, if the Employee is granted an option for 6,000 shares of Common Stock of the Company and the Employee terminated service due to
the Employee’s Retirement 30 days after the Grant Date, then the Employee’s number of Shares Granted would be reduced from 6,000 shares to 493 shares (6,000 x 30/365) and the balance of the Shares Granted would be cancelled.

 4. Vesting Schedule. Except as otherwise provided in this Agreement, the
right to exercise this option will vest as to thirty-three and one-third percent (33-1/3%) of the Shares specified in Paragraph 1 above on the first anniversary date of the Grant Date, and as to an additional 1/36th of the shares on each succeeding monthly anniversary date, until the right to exercise this option shall have vested with respect to one hundred percent (100%) of such Shares.
On any scheduled vesting date, vesting actually will occur only if the Employee has been continuously employed by the Company or an Affiliate from the Grant Date until such scheduled vesting date, or the vesting date occurs within three
(3) years following the Employee’s Termination of Service due to the Employee’s Retirement. Notwithstanding the foregoing, in the event of the Employee’s Termination of Service due to death, if the right to exercise any of the
Shares specified in Paragraph 1 had not yet vested, then the right to exercise such Shares will vest on the date of the Employee’s Termination of Service. 
 5. Expiration of Option. In the event of the Employee’s Termination of Service for any reason other than Retirement, Disability, death or for cause, the Employee may, within three (3) months after the
date of such Termination, or prior to the Expiration Date, whichever shall first occur, exercise any vested but unexercised portion of this option. In the event of the Employee’s Termination of Service due to Disability, the Employee may,
within one (1) year after the date of such Termination, or prior to the Expiration Date, whichever shall first occur, exercise any vested but unexercised portion of this option. In the event of the Employee’s Termination of Service due to
Retirement, the Employee may, within three (3) years from the date of such Termination, or prior to the Expiration Date, whichever shall first occur, exercise any vested but unexercised portion of this option. In the event of the
Employee’s Termination of Service by the Company for cause (as determined by the Company), the Employee may not exercise any portion of this option that is unexercised on the date of such Termination. 
  

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 6. Death of Employee. In the event that the Employee dies while in the employ of the Company
and/or an Affiliate or during the three (3) month, three (3) year or one (1) year periods referred to in Paragraph 5 above, the Employee’s designated beneficiary, or if either no beneficiary survives the Employee or the Committee
does not permit beneficiary designations, the administrator or executor of the Employee’s estate, may, within three (3) years after the date of death, or prior to the Expiration Date, whichever shall first occur, exercise any vested but
unexercised portion of the option. Any such transferee must furnish the Company (a) written notice of his or her status as a transferee, (b) evidence satisfactory to the Company to establish the validity of the transfer of this option and
compliance with any laws or regulations pertaining to such transfer, and (c) written acceptance of the terms and conditions of this option as set forth in this Agreement. 
 7. Persons Eligible to Exercise Option. This option shall be exercisable during the Employee’s lifetime only by the Employee. The option
shall not be transferable by the Employee, except by (a) a valid beneficiary designation made in a form and manner acceptable to the Committee, or (b) will or the applicable laws of descent and distribution. 
 8. Exercise of Option. This option may be exercised by the person then entitled to do so as to any Shares which may then be purchased (a) by
giving written notice of exercise to the Secretary of the Company (or his or her designee), specifying the number of full Shares to be purchased and accompanied by full payment of the Exercise Price (and the amount of any income or other taxes the
Company determines is required to be withheld by reason of such exercise), and (b) by giving satisfactory assurances in writing if requested by the Company, signed by the person exercising the option, that the Shares to be purchased upon such
exercise are being purchased for investment and not with a view to the distribution thereof. In the absolute discretion of the Committee, the person entitled to exercise the option may elect to satisfy the tax-withholding requirement described in
subparagraph (a) above by having the Company withhold Shares or by delivering to the Company already-owned Shares. No partial exercise of this option may be for less than ten (10) Share lots or multiples thereof. 
 9. Suspension of Exercisability. If at any time the Company shall determine, in its discretion, that the listing, registration or qualification of
the Shares upon any securities exchange or under any state or federal law, or the consent or approval of any governmental regulatory authority, is necessary or desirable as a condition of the purchase of Shares hereunder, this option may not be
exercised, in whole or in part, unless and until such listing, registration, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Company. The Company shall make reasonable efforts to
meet the requirements of any such state or federal law or securities exchange and to obtain any such consent or approval of any such governmental authority. 
 10. No Rights of Stockholder. Neither the Employee (nor any beneficiary) shall be or have any of the rights or privileges of a stockholder of the Company in respect of any of the Shares issuable pursuant to the
exercise of this option, unless and until certificates representing such Shares shall have been issued, recorded on the records of the Company or its transfer agents or registrars, and delivered to the Employee (or beneficiary). 
  

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 11. No Effect on Service. The Employee’s employment with the Company and its Affiliates is on
an at-will basis only. Accordingly, subject to any written, express employment with the Employee, nothing in this Agreement or the Plan shall confer upon the Employee any right to continue to be employed by the Company or any Affiliate or shall
interfere with or restrict in any way the rights of the Company or the Affiliate, which are hereby expressly reserved, to terminate the employment of the Employee at any time for any reason whatsoever, with or without good cause. Such reservation of
rights can be modified only in an express written contract executed by a duly authorized officer of the Company or the Affiliate employing or otherwise engaging the Employee. For purposes of this Agreement, the transfer of the employment of the
Employee between the Company and any one of its Affiliates (or between Affiliates) shall not be deemed a Termination of Service. Nothing herein contained shall affect the Employee’s right to participate in and receive benefits under and in
accordance with the then current provisions of any pension, insurance or other employee welfare plan or program of the Company or any Affiliate. 
 12. Address for Notices. Any notice to be given to the Company under the terms of this Agreement shall be addressed to the Company, in care of its Secretary, at 3100 Hansen Way, Palo Alto, California 94304, or at such other address
as the Company may hereafter designate in writing. 
 13. Option is Not Transferable. Except as otherwise expressly provided herein,
this option and the rights and privileges conferred hereby may not be transferred, pledged, assigned or otherwise hypothecated in any way (whether by operation of law or otherwise) and shall not be subject to sale under execution, attachment or
similar process. Upon any attempt to transfer, pledge, assign, hypothecate or otherwise dispose of this option, or of any right or privilege conferred hereby, or upon any attempted sale under any execution, attachment or similar process, this option
and the rights and privileges conferred hereby immediately shall become null and void. 
 14. Maximum Term of Option. Notwithstanding
any other provision of this Agreement, this option is not exercisable after the Expiration Date. 
 15. Binding Agreement. Subject to
the limitation on the transferability of this option contained herein, this Agreement shall be binding upon and inure to the benefit of the heirs, legatees, legal representatives, successors and assigns of the parties hereto. 
 16. Conditions to Exercise. The Exercise Price for this option must be paid in the legal tender of the United States (including, in the
Committee’s sole discretion, by means of a broker-assisted cashless exercise) or, in the Committee’s sole discretion, in Shares of equivalent value. Exercise of this option will not be permitted until satisfactory arrangements have been
made for the payment of the appropriate amount of withholding taxes (as determined by the Company). If the Employee fails to remit to the Company such withholding amount within the time period specified by the Committee (in its discretion), the
award may be forfeited and in such case the Employee shall not receive any of the Shares subject to this Agreement. 
 17. Plan
Governs. This Agreement is subject to all of the terms and provisions of the Plan. In the event of a conflict between one or more provisions of this Agreement and one or more provisions of the Plan, the provisions of the Plan shall govern.
Capitalized terms and phrases used and not defined in this Agreement shall have the meaning set forth in the Plan. 
 18. Committee
Authority. The Committee shall have all discretion, power, and authority to interpret the Plan and this Agreement and to adopt such rules for the administration, interpretation and application of the Plan as are consistent therewith. All actions
taken and all 

  

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interpretations and determinations made by the Committee in good faith shall be final and binding upon the Employee, the Company and all other interested
persons, and shall be given the maximum deference permitted by law. No member of the Committee shall be personally liable for any action, determination or interpretation made in good faith with respect to the Plan or this Agreement. 
 19. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California, without reference to
its principles of conflicts of law. 
 20. Captions. The captions provided herein are for convenience only and are not to serve as a
basis for the interpretation or construction of this Agreement. 
 21. Agreement Severable. In the event that any provision in this
Agreement shall be held invalid or unenforceable, such provision shall be severable from, and such invalidity or unenforceability shall not be construed to have any effect on, the remaining provisions of this Agreement. 
 22. Retirement Definition and Fortifier. For purposes of this Agreement, Retirement shall mean an employee’s voluntary termination of
employment at age 65 or above, or at age 55 with a minimum of 10 years employment with the Company, provided, however, that in the event employee commences employment with a company which competes with the Company in any of Company’s business,
including but not limited to, equipment, software or other products for the treatment of cancer, X-ray tubes, flat panel imaging devices and industrial X-ray imaging devices, Company may, in its sole discretion, terminate this Agreement, including
the vesting of any options or other grants which remain unvested as of the date employee commences employment with the competitive company. 
 23. Modifications to the Agreement. This Agreement constitutes the entire understanding of the parties on the subjects covered. The Employee expressly warrants that he or she is not executing this Agreement in reliance on any
promises, representations, or inducements other than those contained herein. Modifications to this Agreement or the Plan can be made only in an express written contract executed by a duly authorized officer of the Company. 
  

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