Exhibit 10.32

[Letterhead of John T. Dickson]
President & CEO

December 22, 2003

Ms. Rae F. Sedel
Managing Director
Russell Reynolds Associates Limited
24 James Square
London SW1Y 4HZ

Subject: Kevin Pennington – Capital Loss Agreement

Dear Rae,

In confirmation of our conversation in London on December 16th, I propose that
we extend the agreement (attached) covering Kevin’s investment in his Lehigh
Valley property through to December 27, 2007. If you agree, would you please
initial this memo and the attachment and return it to me.

Thank you.

/s/ John T. Dickson

John T. Dickson

Att.

Copy to:
Jean Rankin
Hap Wagner

      Rae F. Sedel   Date

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[Letterhead of John T. Dickson]
President & CEO

July 27, 2001

Dear Kevin:

This letter will modify your employment agreement dated December 27, 2000 (the
“Letter”). Terms used herein and not defined have the meanings ascribed to them
in the Letter.

Agere Systems Inc. (“Agere”) agrees that if, prior to December 27, 2003, your
employment with Agere is terminated for any reason other than “cause,” and if
you have not entered into a contract for the sale of your house for a contracted
sale price at least equal to the “minimum price” within three months after any
such termination, and provided that you have used your best efforts to sell your
house for at least the minimum price, Agere will, at its option, either (i)
purchase the house from you at the minimum price or (ii) reimburse you for any
difference between the minimum price and actual price at which you contract for
the sale of
your house. For purposes of this Letter, the “minimum price” is your initial
purchase price and up to $350,000 of additional documented capital improvements.

If you agree, please indicate by signing the enclosed copy of this letter.

/s/ John T. Dickson           John T. Dickson         12/21/03 Proposed to
Extend to 12/27/2007       Accepted and Agreed:   /s/ John T. Dickson       /s/
Kevin P. Pennington   Agreed/Declined ---------- Kevin P. Pennington   Rae Sedel
     

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