On November 9, 2012, the Compensation and Management Development Committee (the "Compensation Committee") of the Board of Directors of Varian Medical Systems, Inc. (the "Company") approved new compensation arrangements for certain of the Company's executive officers. Set forth below are the annual base salaries for fiscal year 2013 for those individuals:

        Elisha W. Finney,
           Executive Vice President, Finance and
           Chief Financial Officer                               $ 573,735
        Kolleen T. Kennedy,
           Senior Vice President and
           President, Oncology Systems                           $ 550,066
        Robert H. Kluge,
           Senior Vice President and President, X-ray Products   $ 463,316
        John W. Kuo,
           Senior Vice President, General Counsel and
           Corporate Secretary                                   $ 417,027

In addition, the Compensation Committee approved increases to the percentage of salary that these executive officers can achieve if the goals under the Company's Management Incentive Plan are achieved. Effective for fiscal year 2013, target awards (i.e., 100% goal achievement) for the individuals listed below will be the percentage of base salary that appears opposite his or her name.

Elisha W. Finney 83%
Kolleen T. Kennedy 83%
Robert H. Kluge 78%
John W. Kuo 68%

The above executive officers will not be eligible to participate in the Company's Employee Incentive Plan commencing in fiscal year 2013.