Document:

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                                                                   Exhibit 10.32

   SalomonSmithBarney
A member of citigroup

    February 24, 2003

    American Financial Realty Trust
    1725 The Fairway
    Jenkintown, PA 19046

    Attention:   Nicholas S. Schorsch
                 President and Chief Executive Officer

    Ladies and Gentlemen:

    Salomon Smith Barney Inc. ("Salomon Smith Barney") is pleased to confirm our
    appointment by American Financial Realty Trust ("AFRT" or the "Company") to
    serve as a structuring and corporate advisor to AFRT with respect to its
    anticipated initial public offering or private placement (the "Offering").

    1.   In connection with its engagement hereunder, Salomon Smith Barney
         shall:

         a)   review the business and operations of the Company and its
              historical and projected financial condition;

         b)   provide strategic advice with respect to capital raising,
              including advice, in cooperation with the Co-Book-runners (as
              defined below), in connection with the preparation of an offering
              memorandum (the "Memorandum") and other related documentation
              (together with the Memorandum, the "Offering Materials")
              describing the Company and the terms of the Offering;

         c)   advise the Company with respect to the strategy to be formulated
              by the Company and the Co-Book-runners for marketing the common
              shares in the Offering;

         d)   advise the Company with respect to its financial structuring and
              corporate strategy;

         e)   provide such other investment banking services as are customary
              for similar transactions and as may be mutually agreed upon by
              the Company and Salomon Smith Barney;

         f)   agree, if requested by the Company, to be named in a mutually
              agreeable place within any prospectus or offering memorandum used
              in the Offering as a financial advisor to the Company;

         g)   SSB and Citicorp North America, Inc. (collectively "Citi/SSB")
              agree to use good faith efforts to arrange a Senior Secured Credit
              Facility (the "Facility") of at least $150 million, on a best
              efforts basis, and to provide a commitment for up to $40 million
              of the Facility. The foregoing is not a commitment and any

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         commitment would be subject to (i) Citi/SSB's satisfaction with the
         results of its due diligence, and (ii) final credit approval by
         Citi/SSB for its financing under the Facility.

2.   Notwithstanding anything to the contrary contained herein,

     a)  Salomon Smith Barney acknowledges that the Company has engaged
         Friedman, Billings, Ramsey & Co., Inc. ("FBR") and Banc of America
         Securities LLC ("BAS" and, together with FBR, the "Co-Book-runners") as
         the co-lead, exclusive co-book-running managers of the Offering, and
         under this engagement the Co-Book-runners have agreed (i) to jointly
         arrange for a road show presentation to prospective investors and
         participating underwriters' salespeople, (ii) to select co-managers
         with the participation of the Company, (iii) to determine the members
         of the underwriting syndicate (including economic fee splits between
         such members) and the allocation of the underwritten securities among
         them for resale to the public, and (iv) in the case of FBR, to have
         sole responsibility for stabilization of the common shares in the
         Offering. The Company expects that the Co-Book-runners' duties will
         include, but are not limited to, (a) advising the Company with respect
         to the preparation and drafting of the registration statement and the
         prospectus contained therein relating to the Offering, (b) the actual
         marketing of the Company's common shares in the Offering, including
         without limitation organizing, scheduling, arranging and preparing
         materials relating to a road show, (c) taking orders and allocating
         shares to fill orders in the Offering, (d) settling the Offering and
         (e) undertaking such other duties and responsibilities as are
         customarily undertaken by the book-running managing underwriters in an
         initial public offering of securities.

     b)  Salomon Smith Barney agrees that, in connection with SSB's advisory
         services hereunder, it will not contact any accounts for the purpose of
         marketing or distributing the Company's common shares in the Offering,
         and it will not be present on or otherwise participate in any manner
         whatsoever, directly or indirectly, in, or otherwise advise the Company
         with respect to, any discussions or negotiations between the Company
         and the Co-Book-runners regarding proposed modifications to the
         underwriting agreement between the Company and the underwriters in the
         Offering.

3.   As compensation for Salomon Smith Barney's services hereunder, the Company
     hereby agrees to pay Salomon Smith Barney an advising fee (the "Advising
     Fee") of (a) $1,500,000, if the gross proceeds, excluding piggybacks and
     underwriter discounts, from the Offering are less than $500,000,000 or (b)
     $2,000,000, if the gross proceeds, excluding piggybacks and underwriter
     discounts, from the Offering equal or exceed $500,000,000, payable in cash
     as follows:

     a)  $1,000,000 payable upon SSB entering into a commitment agreement to
         establish the Facility on terms acceptable to the Company;

     b)  the balance of the Advising Fee shall be paid upon consummation of the
         Offering.

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          Notwithstanding anything contained herein to the contrary, in the
          event that Salomon Smith Barney participates in the Offering as an
          underwriter, this Advising Fee Agreement will be terminated and the
          Company and Salomon Smith Barney will execute a separate underwriting
          agreement under new terms and conditions.

     4.   Whether or not the Offering is consummated, the Company agrees to
          reimburse Salomon Smith Barney, upon request, for all its reasonable
          out-of-pocket expenses incurred in connection herewith (including,
          without limitation, fees and expenses of its legal counsel and any
          expenses relating to due diligence investigations, if applicable) up
          to a maximum amount of $25,000 in the aggregate; provided, however,
          that any individual expense in excess of $5,000 must be approved in
          writing by the Company or else the Company shall not provide
          reimbursement for the amount in excess of $5,000.

     5.   Salomon Smith Barney's engagement hereunder will commence on the date
          hereof and will continue until the earliest of the consummation of the
          Offering, the termination of the Offering and nine months after the
          date hereof, unless: (i) Citi/SSB has extended credit to the Company,
          then the engagement shall continue until the Offering is consummated
          or the maturity of the Facility or (ii) extended or terminated by
          mutual written consent; provided, however, that no such expiration or
          termination shall affect the indemnification, contribution and
          confidentiality obligations of the Company, the right of Salomon Smith
          Barney to receive any fees payable hereunder or fees that have accrued
          prior to such termination.

     6.   The Company and Salomon Smith Barney have entered into a separate
          letter agreement, dated the date hereof, providing for the
          indemnification of Salomon Smith Barney in connection with Salomon
          Smith Barney's engagement hereunder, the terms of which are
          incorporated into this agreement in their entirety.

     7.   The Company recognizes and confirms that Salomon Smith Barney in
          acting pursuant to this engagement will be using publicly available
          information and information in reports and other materials provided by
          others, including, without limitation, information provided by or on
          behalf of the Company and that Salomon Smith Barney does not assume
          responsibility for and may rely, without independent verification on
          the accuracy and completeness of any such information. The Company
          agrees to furnish or cause to be furnished to Salomon Smith Barney all
          necessary or appropriate information for use in its engagement and
          hereby warrants that any information relating to the Company or the
          Offering that is furnished to SSB by or on the behalf of the Company
          will be true and correct in all material respects and not misleading.
          The Company agrees that any information or advice rendered by Salomon
          Smith Barney or any of or representatives in connection with this
          engagement is for the confidential use of the Company only in its
          evaluation of the Offering and the Company will not, and will not
          permit any third party to, use it for any other purpose or disclose or
          otherwise refer to such advice or information, or to Salomon Smith
          Barney, in any manner without our prior written consent.

     8.   The Company should be aware that Salomon Smith Barney and/or its
          affiliates may be providing or in the future provide financial or
          other services to other parties with conflicting interests. However,
          consistent with our long-standing policy to hold in confidence the
          affairs of our customers, we will not use confidential information
          obtained from the Company except in connection with our services to,
          and relationship with, the

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              Company, nor will we use on the Company's behalf any confidential
              information obtained from any other customer. The Company hereby
              consents to Salomon Smith Barney's future communications with BAS
              and FBR with respect to Offering. The Company hereby agrees that
              Salomon Smith Barney and/or an affiliate thereof, including,
              without limitation, Citigroup Inc., will have the right to
              purchase the Company's securities for its own account and that any
              such purchase will not constitute a conflict of interest for
              purposes of Salomon Smith Barney's engagement hereunder.

         9.   Salomon Smith Barney may, at our own expense, place announcements
              or advertisements in financial newspapers and journals describing
              our services hereunder, provided that all announcements,
              advertisements, etc. are first approved by the Company and counsel
              of the Company. The Company shall have the right to have any such
              announcements or advertisements relating to the Offering reviewed
              by FBR and BAS.

         10.  This agreement is governed by the laws of the State of New York,
              U.S.A. without regard to conflicts of law principles. The Company
              and Salomon Smith Barney agree to waive trial by jury in any
              action, proceeding or counterclaim brought by or on behalf of
              either party with respect to any matter whatsoever relating to or
              arising out of any actual or proposed transaction or the
              engagement of or performance by Salomon Smith Barney hereunder.
              With respect to all matters relating to this agreement, the
              Company hereby irrevocably (a) submits to the non-exclusive
              jurisdiction of any New York State or Federal Court sitting in the
              State of New York, County of New York, U.S.A.; (b) agrees that all
              claims related hereto may be heard and determined in such courts;
              (c) waives the defense of an inconvenient forum; (d) agrees that a
              final judgment of such courts shall be conclusive and may be
              enforced in another jurisdiction by suit on the judgment or in
              any other manner provided by law; and (e) waives any immunity
              (sovereign or otherwise) from jurisdiction or any court or from
              any legal process that it or its properties or assets has or may
              acquire.

         11.  The Company acknowledges that Salomon Smith Barney is acting as an
              independent contractor in connection with its engagement hereunder
              and not in any other capacity including as a fiduciary. Salomon
              Smith Barney may render the services hereunder through any of its
              affiliates as it deems appropriate. Neither this engagement nor
              the delivery of any advice in connection with this engagement is
              intended to confer rights upon any persons not a party hereto
              (including security holders, employees or creditors of the
              Company) as against Salomon Smith Barney or our affiliates or
              their respective directors, officers, agents and employees.

         12.  Salomon Smith Barney acknowledges that its engagement and fees
              hereunder are required to be disclosed in the prospectus for any
              public Offering under Item 508(e) of Regulation S-K of the
              Securities Act of 1933, as amended, and in the application of the
              managing underwriters in any public Offering to the National
              Association of Securities Dealers, Inc. (the "NASD") under Rule
              2710 of the NASD's Conduct Rules.

         13.  This agreement contains the entire agreement between us and
              supersedes all prior understandings, whether written or oral. This
              agreement may be executed in counterparts. This agreement may not
              be amended except in writing signed by all parties hereto.

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We look forward to working with you on this important transaction. Please
confirm that the foregoing is in accordance with your understanding of our
agreement by signing and returning to us a copy of this letter.

Very truly yours,

SALOMON SMITH BARNEY INC.

By /s/ Paul Ingrassia
  --------------------------------------
       Paul Ingrassia
       Managing Director
       Real Estate & Lodging Group

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

AMERICAN FINANCIAL REALTY TRUST

By /s/ Sonya A. Hoffman
  --------------------------------------
       Sonya A. Hoffman
       Senior Vice President

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February 24, 2003

SALOMON SMITH BARNEY INC.
388 GREENWICH STREET
NEW YORK, NEW YORK 10013

Ladies and Gentlemen:

        In connection with the engagement by letter agreement of even date of
Salomon Smith Barney Inc. ("SSB") to assist us with the Offering, including
modifications of future additions to such engagement and related activities
prior to the date of this agreement (the "engagement"), we agree that we will
indemnify and hold harmless you and your affiliates and their respective
directors, officers, agents and employees and each other person controlling you
or any of your affiliates (collectively, the "indemnified parties"), to the full
extent lawful, from and against any losses, expenses, claims or proceedings
(collectively, "losses") (i) related to or arising out of (A) oral or written
information provided by us, our employees or our other agents, which information
either we or you provide to any actual or potential buyers, sellers, investors
or offerees, or (B) any other action or failure to act by us, our directors,
officers, agents or employees or by you or any indemnified party at our request
or with our consent, or (ii) otherwise related to or arising out of the
engagement or any transaction or conduct in connection therewith, except that
this clause (ii) shall not apply with respect to any losses that are finally
judicially determined to have resulted primarily from the gross negligence or
willful misconduct of such indemnified party.

        In the event that the foregoing indemnity is unavailable to any
indemnified party for any reason, we agree to contribute to any losses related
to or arising out of the engagement or any transaction or conduct in connection
therewith as follows. With respect to such losses referred to in clause (i) of
the preceding paragraph, each of us shall contribute in such proportion as is
appropriate to reflect the relative benefits received (or anticipated to be
received) by you, on the one hand, and by us and our security holders, on the
other hand, from the actual or proposed transaction arising in connection with
the engagement. With respect to any other losses, and for losses referred to in
clause (i) of the preceding paragraph if the allocation provided by the
immediately preceding sentence is unavailable for any reason, each of us shall
contribute in such proportion as is appropriate to reflect not only the relative
benefits as set forth above, but also the relative fault of each of us in
connection with the statements, omissions or other conduct that resulted in such
losses, as well as any other relevant equitable considerations. Benefits
received (or anticipated to be received) by us and our security holders shall be
deemed to be equal to the aggregate cash consideration and value of securities
or any other property payable, issuable, exchangeable or transferable in such
transaction or proposed transaction, and benefits received by you shall be
deemed to be equal to the compensation paid by us to you in connection with the
engagement (exclusive of amounts paid for reimbursement of expenses or paid
under this agreement). Relative fault shall be determined by reference to, among
other things, whether any alleged untrue statement or omission or any other
alleged conduct relates to information provided by us or other conduct by us (or
our employees or other agents), on the one hand, or by you, on the other hand.
You and we agree that it would not be just and equitable if contribution were
determined by pro rata allocation or by any other method of allocation that does
not take account of the equitable considerations referred to above.
Notwithstanding anything to the contrary above, in no event shall you be
responsible for any amounts in excess of the amount of the compensation actually
paid by us to you in connection with the engagement (exclusive of amounts paid
for reimbursement of expenses or paid under this agreement).

        We agree that we will not, without prior written consent of SSB, settle
any pending or threatened claim or proceeding related to or arising out of the
engagement or any actual or proposed transactions or other conduct in connection
therewith (whether or not you or any indemnified party is a party to such claim
or proceeding) unless such settlement includes a provision unconditionally
releasing you and each other indemnified party from, and holding all such
persons harmless against, all liability in respect of claims by

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any releasing party related to or arising out of the engagement or any
transactions or conduct in connection therewith. We will also promptly reimburse
each indemnified party for all expenses (including counsel fees and expenses) as
they are incurred by such indemnified party in connection with investigating,
preparing for, defending, or providing evidence in, any pending or threatened
claim or proceeding related to or arising out of the engagement or any actual or
proposed transaction or other conduct in connection therewith or otherwise in
respect of which indemnification or contribution may be sought hereunder
(whether or not you or any indemnified party is a party to such claim or
proceeding) or in enforcing this agreement.

     We further agree that no indemnified party shall have any liability
(whether direct or indirect, in contract or tort or otherwise) to us or any of
our affiliates, creditors or security holders for or in connection with the
engagement or any actual or proposed transactions or other conduct in connection
therewith except for losses incurred by us that are finally judicially
determined to have resulted primarily from the gross negligence or willful
misconduct of such indemnified party.

     The foregoing agreement is in addition to any rights you may have at common
law or otherwise and shall be binding on and inure to the benefit of any
successors, assigns, and personal representatives of us and each indemnified
party. This agreement is governed by the laws of the State of New York, without
regard to such state's rules concerning conflicts of laws. Solely for purposes
of enforcing this agreement, we hereby consent to personal jurisdiction, service
of process and venue in any court in which any claim or proceeding that is
subject to this agreement is brought against you. Any right to trial by jury
with respect to any claim or proceeding related to or arising out of the
engagement, or any transaction or conduct in connection therewith or this
agreement is waived. This agreement shall remain in full force and effect
notwithstanding the completion or termination of the engagement.

                                        Very truly yours,

                                        AMERICAN FINANCIAL REALTY TRUST

                                        By:  /s/ Sonya A. Huffman
                                             -------------------------------
                                                 Sonya A. Huffman
                                                 Senior Vice President

Agreed:

SALOMON SMITH BARNEY INC.

By:  /s/ Paul Ingrassia
     ---------------------------------
         Paul Ingrassia
         Managing Director
         Real Estate & Lodging GroupAmended and Restated Change of Control Agreement - Allen J. Lauer

Exhibit 10.11 
 
AMENDED AND RESTATED CHANGE IN CONTROL AGREEMENT 
 
THIS AMENDED AND RESTATED CHANGE IN CONTROL AGREEMENT
(“Agreement”) is entered into effective as of February 7, 2003, by and between VARIAN, INC., a Delaware corporation (the “Company”)1, and Allen J. Lauer, an employee of the Company (“Employee”). 
 
The Company’s Board of Directors (the “Board”) has determined that it is in the best interest of the Company and its
stockholders for the Company to agree to pay Employee termination compensation in the event Employee should leave the employ of the Company under the circumstances described below. The Board recognizes that the possibility of a proposal from a third
person, whether or not solicited by the Company, concerning a possible “Change in Control” of the Company (as such language is defined in Section 3(d)) will be unsettling to Employee. Therefore, the arrangements set forth in this Agreement
are being made to help assure a continuing dedication by Employee to Employee’s duties to the Company notwithstanding the proposal or occurrence of a Change in Control. The Board believes it imperative, should the Company receive any proposal
from a third party, that Employee, without being influenced by the uncertainties of Employee’s own situation, be able to assess and advise the Board whether such proposals are in the best interest of the Company and its stockholders, and to
enable Employee to take action regarding such proposals as the Board might determine to be appropriate. The Board also wishes to demonstrate to key personnel that the Company desires to enhance management relations and its ability to retain and, if
needed, to attract new management, and intends to ensure that loyal and dedicated management personnel are treated fairly. 
 
In view of the foregoing, the Company and Employee agree as follows: 
 
1.     EFFECTIVE DATE AND TERM OF AGREEMENT. 
 
This Agreement is effective and binding on the Company and
Employee as of the date hereof; provided, however, that, subject to Section 2(d), the provisions of Sections 3 and 4 shall become operative only upon the Change in Control Date. 
 
2.     EMPLOYMENT OF EMPLOYEE. 
 
(a) Except as provided in Sections 2(b), 2(c) and 2(d),
nothing in this Agreement shall affect any right which Employee may otherwise have to terminate Employee’s employment, nor shall anything in this Agreement affect any right which the Company may have to terminate Employee’s employment at
any time in any lawful manner. 

1 “Company” shall include the Company, any successor to the Company’s business and/or assets, and any party which
executes and delivers the agreement required by Section 6(e) or which otherwise becomes bound by the terms and conditions of this Agreement by operation of law or otherwise. 

 
(b) In the
event of a Potential Change in Control, to be entitled to receive the benefits provided by this Agreement, Employee will not voluntarily leave the employ of the Company, and will continue to perform Employee’s regular duties and the services
specified in the recitals of this Agreement until the Change in Control Date. Should Employee voluntarily terminate employment prior to the Change in Control Date, this Agreement shall lapse upon such termination and be of no further force or
effect. 
 
(c) If Employee’s employment
terminates on or after the Change in Control Date, the Company will provide to Employee the payments and benefits as provided in Sections 3 and 4. 
 
(d) If Employee’s employment is terminated by the Company prior to the Change in Control Date but on or after a Potential Change in
Control Date, then the Company will provide to Employee the payments and benefits as provided in Sections 3 and 4 unless the Company reasonably demonstrates that Employee’s termination of employment neither (i) was at the request of a third
party who has taken steps reasonably calculated to effect a Change in Control nor (ii) arose in connection with or in anticipation of a Change in Control. Solely for purposes of determining the timing of payments and the provision of benefits in
Sections 3 and 4 under the circumstances described in this Section 2(d), Employee’s date of termination shall be deemed to be the Change in Control Date. 
 
3. TERMINATION FOLLOWING CHANGE IN CONTROL. 
 
(a) If a Change in Control shall have occurred, Employee shall be entitled to the benefits provided in
Section 4 upon the subsequent termination of Employee’s employment within the applicable period set forth in Section 4 unless such termination is due to Employee’s death or Disability or is for Cause or is effected by Employee other than
for Good Reason (as such terms are defined in Section 3(d)). 
 
(b) If following a Change in Control, Employee’s employment is terminated by reason of Employee’s death or Disability, Employee shall be entitled to death or long-term disability benefits from the Company no less favorable
than the most favorable benefits to which Employee would have been entitled had the death or Disability occurred at any time during the period commencing one (1) year prior to the Change in Control. 
 
(c) If Employee’s employment shall be terminated by the
Company for Cause or by Employee other than for Good Reason during the term of this Agreement, the Company shall pay Employee’s Base Salary through the date of termination at the rate in effect at the time notice of termination is given, and
the Company shall have no further obligations to Employee under this Agreement. 
 
(d) For purposes of this Agreement: 
 
“Base Salary” shall mean the annual base salary paid to Employee immediately prior to a Change in Control, provided that such amount shall in no event be less than the annual base salary paid
to Employee during the one (1) year period immediately prior to the Change in Control. 
 

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A “Change
in Control” shall be deemed to have occurred if: 
 
(i) Any individual or group constituting a “person”, as such term is used in Sections l3(d) and l4(d)(2) of the Exchange Act (other than (A) the Company or any of its subsidiaries or (B) any trustee or other
fiduciary holding securities under an employee benefit plan of the Company or of any of its subsidiaries), is or becomes the beneficial owner, directly or indirectly, of securities of the Company representing thirty percent (30%) or more of the
combined voting power of the Company’s outstanding securities then entitled ordinarily (and apart from rights accruing under special circumstances) to vote for the election of directors; or 
 
(ii) Continuing Directors cease to constitute
at least a majority of the Board; or 
 
(iii) there occurs a reorganization, merger, consolidation or other corporate transaction involving the Company (a “Transaction”), in each case with respect to which the stockholders of the Company immediately prior to such
Transaction do not, immediately after the Transaction, own more than 50% of the combined voting power of the Company or other corporation resulting from such Transaction; or 
 
(iv) all or substantially all of the assets of the Company are sold, liquidated or
distributed; 
 
provided, however, that a “Change in
Control” shall not be deemed to have occurred under this Agreement if, prior to the occurrence of a specified event that would otherwise constitute a Change in Control hereunder, the disinterested Continuing Directors then in office, by a
majority vote thereof, determine that the occurrence of such specified event shall not be deemed to be a Change in Control with respect to Employee hereunder if the Change in Control results from actions or events in which Employee is a participant
in a capacity other than solely as an officer, employee or director of the Company. 
 
“Change in Control Date” shall mean the date on which a Change in Control occurs. 
 
“Cause” shall mean: 
 
(i) The continued willful failure of Employee to perform Employee’s duties to the Company (other than any such
failure resulting from Employee’s incapacity due to physical or mental illness) after written notice thereof (specifying the particulars thereof in reasonable detail) and a reasonable opportunity to be heard and cure such failure are given to
Employee by the Board or a committee thereof; or 
 
(ii) The willful commission by Employee of a wrongful act that caused or was reasonably likely to cause substantial damage to the Company, or an act of fraud in the performance of Employee’s duties on behalf of the Company; or

 
(iii) The conviction of Employee
for commission of a felony in connection with the performance of Employee’s duties on behalf of the Company; or 
 

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(iv) The order of a federal or state regulatory authority having jurisdiction over the Company or its operations or by a court of competent jurisdiction requiring the termination of Employee’s employment by the Company.

 
“Continuing Directors” shall mean the
directors of the Company in office on the date hereof and any successor to any such director who was nominated or selected by a majority of the Continuing Directors in office at the time of the director’s nomination or selection and who is not
an “affiliate” or “associate” (as defined in Regulation 12B under the Exchange Act) of any person who is the beneficial owner, directly or indirectly, of securities representing ten percent (10%) or more of the combined voting
power of the Company’s outstanding securities then entitled ordinarily to vote for the election of directors. 
 
“Disability” shall mean Employee’s incapacity due to physical or mental illness such that Employee shall have become
qualified to receive benefits under the Company’s long-term disability plan as in effect on the date of the Change in Control. 
 
“Dispute” shall mean, in the case of termination of Employee’s employment for Disability or Cause, that Employee challenges
the existence of Disability or Cause, and in the case of termination of Employee’s employment for Good Reason, that the Company challenges the existence of Good Reason for termination of Employee’s employment. 
 
“Exchange Act” means the Securities Exchange Act of
1934, as amended. 
 
“Good Reason” shall
mean: 
 
(i) The failure to appoint
Employee as Chief Executive Officer of the combined or acquiring entity, reporting to its Board of Directors; or 
 
(ii) A reduction of Employee’s total compensation as the same may have been increased from time to time after the
Change in Control Date other than (A) a reduction implemented with the consent of Employee or (B) a reduction that is generally comparable (proportionately) to compensation reductions imposed on senior executives of the Company generally; or

 
(iii) The failure to provide to
Employee the benefits and perquisites, including participation on a comparable basis in the Company’s stock option, incentive, and other similar plans in which employees of the Company of comparable title and salary grade participate, as were
provided to Employee immediately prior to a Change in Control, or with a package of benefits and perquisites that are substantially comparable in all material respects to such benefits and perquisites provided prior to the Change in Control; or

 
(iv) The relocation of the
office of the Company where Employee is employed immediately prior to the Change in Control Date (the “CIC Location”) to a location which is more than 50 miles away from the CIC Location or the Company’s requiring Employee to be based
more than 50 miles away from the CIC Location (except for required travel on the Company’s business to an extent substantially consistent with Employee’s customary business travel obligations in the ordinary course of business prior to the
Change in Control Date); or 
 

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(v) The failure of the Company to obtain promptly upon any Change in Control the express written assumption of an agreement to perform this Agreement by any successor as contemplated in Section 6(e); or 
 
(vi) The attempted termination of
Employee’s employment for Cause on grounds insufficient to constitute a basis of termination for Cause under this Agreement; or 
 
(vii) The failure of the Company to promptly make any payment into escrow when so required by Section 3(f). 
 
“Potential Change in Control” shall mean the
earliest to occur of (a) the execution of an agreement or letter of intent, the consummation of the transactions described in which would result in a Change in Control, (b) the approval by the Board of a transaction or series of transactions, the
consummation of which would result in a Change in Control, or (c) the public announcement of a tender offer for the Company’s voting stock, the completion of which would result in a Change in Control; provided, that no such event shall
be a “Potential Change in Control” unless (i) in the case of any agreement or letter of intent described in clause (a), the transaction described therein is subsequently consummated by the Company and the other party or parties to such
agreement or letter of intent and thereupon constitutes a “Change in Control”, (ii) in the case of any Board-approved transaction described in clause (b), the transaction so approved is subsequently consummated and thereupon constitutes a
“Change in Control” or (iii) in the case of any tender offer described in clause (c), such tender offer is subsequently completed and such completion thereupon constitutes a “Change in Control”. 
 
“Potential Change in Control Date” shall mean the
date on which a Potential Change in Control occurs. 
 
(e) Any termination of employment by the Company or by Employee shall be communicated by written notice, specify the date of termination, state the specific basis for termination and set forth in reasonable detail the facts and
circumstances of the termination in order to provide a basis for determining the entitlement to any payments under this Agreement. 
 
(f) If within thirty (30) days after notice of termination is given, the party to whom the notice was given notifies the other party that
a Dispute exists, the parties will promptly pursue resolution of such Dispute with reasonable diligence; provided, however, that pending resolution of any such Dispute, the Company shall pay 75% of any amounts which would otherwise be due
Employee pursuant to Section 4 if such Dispute did not exist into escrow pending resolution of such Dispute and pay 25% of such amounts to Employee. Employee agrees to return to the Company such amounts to which it is ultimately determined that he
is not entitled. 
 
4. PAYMENTS
AND BENEFITS UPON TERMINATION. 
 
(a) If within
eighteen (18) months after a Change in Control, the Company terminates Employee’s employment other than by reason of Employee’s death, Disability or for Cause, or if Employee terminates Employee’s employment for Good Reason, then the
Employee shall be entitled to the following payments and benefits: 
 

5 

 
(i) The Company shall pay to Employee as compensation for services rendered, no later than five (5) business days following the date of termination, a lump sum severance payment equal to 2.99 multiplied by the sum of (A)
Employee’s Base Salary, (B) the highest annual bonus that was paid to Employee in any of the three fiscal years ending prior to the date of termination under the Company’s Management Incentive Plan (the “MIP”), and (C) the
highest cash bonus for a performance period of more than one fiscal year that was paid to Employee in any of the three fiscal years ending prior to the date of termination under the MIP. 
 
(ii) The Company shall pay to Employee as compensation for services rendered, no later than
five (5) business days following the date of termination, a lump sum payment equal to a pro rata portion (based on the number of days elapsed during the fiscal year and/or other bonus performance period in which the termination occurs) of
Employee’s target bonus under the MIP for the fiscal year and for any other partially completed bonus performance period in which the termination occurs. 
 
(iii) All waiting periods for the exercise of any stock options granted to Employee and all conditions or restrictions of
any restricted stock granted to Employee shall terminate, and all such options shall be exercisable in full according to their terms, and the restricted stock shall be transferred to Employee as soon as reasonably practicable thereafter.

 
(iv) Employee’s
participation as of the date of termination in the life, medical/dental/vision and disability insurance plans and financial/tax counseling plan of the Company shall be continued on the same terms (including any cost sharing) as if Employee were an
employee of the Company (or equivalent benefits shall be provided) until the earlier of Employee’s commencement of substantially equivalent full-time employment with a new employer or twenty-four (24) months after the date of termination;
provided, however, that after the date of termination, Employee shall no longer be entitled to receive Company-paid executive physicals or, upon expiration of the applicable memberships, Company-paid airline memberships. In the event Employee
shall die before the expiration of the period during which the Company is required to continue Employee’s participation in such insurance plans, the participation of Employee’s surviving spouse and family in the Company’s insurance
plans shall continue throughout such period. 
 
(v) Employee may elect upon termination to purchase any automobile then in the possession of Employee and subject to a lease of which the Company is the lessor by payment to the Company of the residual value set forth in the lease,
without any increase for remaining lease payments during the term or other lease breakage costs. Employee may elect to have any such payment deducted from any payments due the Employee hereunder. 
 
(vi) The entire balance credited to
Employee’s account under the Company’s Supplemental Retirement Plan shall, no later than five (5) business days following the date of termination, be paid lump sum in cash to Employee. 
 
(vii) The termination of Employee’s
employment with the Company shall constitute a “retirement” from the Company for purposes of all Company compensation and benefits plans and programs to the extent Employee is otherwise eligible for “retirement” as defined by the
Company immediately prior to the Change in Control. 
 

6 

(viii)    All payments and benefits provided under
this Agreement shall be subject to applicable tax withholding. 
 
(b)    Following Employee’s termination of employment for any reason, the Company shall have the unconditional right to reduce any payments owed to Employee hereunder by the amount of any due and unpaid
principal and interest on any loans by the Company to Employee and Employee hereby agrees and consents to such right on the part of the Company. 
 
5.     GROSS-UP PAYMENT. 
 
(a)    Notwithstanding anything herein to the contrary, if it is determined that any
Payment would be subject to the excise tax imposed by Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”), or any interest or penalties with respect to such excise tax (such excise tax, together with any interest or
penalties thereon, is herein referred to as an “Excise Tax”), then Employee shall be entitled to an additional payment (a “Gross-Up Payment”) in an amount that will place Employee in the same after-tax economic position that
Employee would have enjoyed if the Excise Tax had not applied to the Payment. The amount of the Gross-Up Payment shall be determined by a nationally-recognized independent public accounting firm designated by agreement between Employee and the
Company (the “Accounting Firm”). No Gross-Up Payments shall be payable hereunder if the Accounting Firm determines that the Payments are not subject to an Excise Tax. 
 
“Payment” means (i) any amount due or paid to Employee under this Agreement, (ii) any amount that
is due or paid to Employee under any plan, program or arrangement of the Company and its subsidiaries and (iii) any amount or benefit that is due or payable to Employee under this Agreement or under any plan, program or arrangement of the Company
and its subsidiaries not otherwise covered under clause (i) or (ii) hereof which must reasonably be taken into account under Section 280G of the Code in determining the amount the “parachute payments” received by Employee, including,
without limitation, any amounts which must be taken into account under Section 280G of the Code as a result of (A) the acceleration of the vesting of any option, restricted stock or other equity award, (B) the acceleration of the time at which any
payment or benefit is receivable by Employee or (C) any contingent severance or other amounts that are payable to Employee. 
 
(b)    Subject to the provisions of Section 5(c), all determinations required under this Section 5, including whether
a Gross-Up Payment is required, the amount of the Payments constituting excess parachute payments, and the amount of the Gross-Up Payment, shall be made by the Accounting Firm, which shall provide detailed supporting calculations both to Employee
and the Company within fifteen days of the date reasonably requested by Employee or the Company on which a determination under this Section 5 is necessary or advisable. The Company shall pay to Employee the initial Gross-Up Payment within 5 days of
the receipt by Employee and the Company of the determination of the Accounting Firm. If the Accounting Firm determines that no Excise Tax is payable by Employee, the Company shall cause its accountants to provide Employee with an opinion that the
Accounting Firm has substantial authority under the Code not to report an Excise Tax on Employee’s Federal income tax return. Any determination by the Accounting Firm shall be binding upon Employee and the Company. If the initial Gross-Up
Payment is insufficient to cover the amount of the Excise Tax that is ultimately determined to be owing by Employee with respect to any Payment (hereinafter an 

 

7 

“Underpayment”), the Company, after exhausting its remedies under Section 5(c) below, shall promptly pay to Employee an additional
Gross-Up Payment in respect of the Underpayment. 
 
(c)    Employee shall notify the Company in writing of any claim by the Internal Revenue Service that, if successful, would require the payment by the Company of a Gross-Up Payment. Such notice shall be given as
soon as practicable after Employee knows of such claim and shall apprise the Company of the nature of the claim and the date on which the claim is requested to be paid. Employee agrees not to pay the claim until the expiration of the thirty (30) day
period following the date on which Employee notifies the Company, or such shorter period ending on the date the Taxes with respect to such claim are due (the “Notice Period”). If the Company notifies Employee in writing prior to the
expiration of the Notice Period that it desires to contest the claim, Employee shall: (i) give the Company information reasonably requested by the Company relating to the claim; (ii) take such action in connection with the claim as the Company may
reasonably request, including, without limitation, accepting legal representation with respect to such claim by an attorney reasonably selected by the Company and reasonably acceptable to Employee; (iii) cooperate with the Company in good faith in
contesting the claim; and (iv) permit the Company to participate in any proceedings relating to the claim. Employee shall permit the Company to control all proceedings related to the claim and, at its option, permit the Company to pursue or forgo
any and all administrative appeals, proceedings, hearings, and conferences with the taxing authority in respect of such claim. If requested by the Company, Employee agrees either to pay the tax claimed and sue for refund or contest the claim in any
permissible manner and to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts as the Company shall determine; provided, however, that, if the
Company directs Employee to pay such claim and pursue a refund, the Company shall advance the amount of such payment to Employee on an after-tax and interest-free basis (an “Advance”). The Company’s control of the contest related to
the claim shall be limited to the issues related to the Gross-Up Payment and Employee shall be entitled to settle or contest, as the case may be, any other issues raised by the Internal Revenue Service or other taxing authority. If the Company does
not notify Employee in writing prior to the end of the Notice Period of its desire to contest the claim, the Company shall pay to Employee an additional Gross-Up Payment in respect of the excess parachute payments that are the subject of the claim,
and Employee agrees to pay the amount of the Excise Tax that is the subject of the claim to the applicable taxing authority in accordance with applicable law. 
 
(d)    If, after receipt by Employee of an Advance, Employee becomes entitled to a refund with respect to the claim to
which such Advance relates, Employee shall pay the Company the amount of the refund (together with any interest paid or credited thereon after Taxes applicable thereto). If, after receipt by Employee of an Advance, a determination is made that
Employee shall not be entitled to any refund with respect to the claim and the Company does not promptly notify Employee of its intent to contest the denial of refund, then the amount of the Advance shall not be required to be repaid by Employee and
the amount thereof shall offset the amount of the additional Gross-Up Payment then owing to Employee. 
 
(e)    The Company shall indemnify Employee and hold Employee harmless, on an after-tax basis, from any costs,
expenses, penalties, fines, interest or other liabilities (“Losses”) incurred by Employee with respect to the exercise by the Company of any of its rights under this Section 5, including, without limitation, any Losses related to the
Company’s decision to contest a claim or any imputed income to Employee resulting from any Advance or action taken on 

 

8 

Employee’s behalf by the Company hereunder. The Company shall pay all legal fees and expenses
incurred under this Section 5, and shall promptly reimburse Employee for the reasonable expenses incurred by Employee in connection with any actions taken by the Company or required to be taken by Employee hereunder. The Company shall also pay all
of the fees and expenses of the Accounting Firm, including, without limitation, the fees and expenses related to the opinion referred to in Section 5(b). 
 
6. GENERAL. 
 
(a) Employee shall retain in confidence under the conditions of the Company’s confidentiality agreement with Employee any proprietary
or other confidential information known to Employee concerning the Company and its business so long as such information is not publicly disclosed and disclosure is not required by an order of any governmental body or court. If required, Employee
shall return to the Company any memoranda, documents or other materials proprietary to the Company. 
 
(b) While employed by the Company and following the termination of such employment (other than a termination of employment by Employee for
Good Reason or by the Company other than for Cause) for a period of two (2) years, Employee shall not: 
 
(i) whether for Employee’s own account or for the account of any other individual, partnership, firm, corporation or
other business organization, intentionally solicit, endeavor to entice away from the Company or a subsidiary of the Company (each, a “Protected Party”), or otherwise interfere with the relationship of a Protected Party with, any person who
is employed by a Protected Party or any person or entity who is, or was within the then most recent twelve (12) month period, a customer or client of a Protected Party; or 
 
(ii) without the prior written consent of the Protected Party, in any geographic area in
which the Protected Party is then conducting business, directly or indirectly own an interest in, manage, operate, join, control, lend money or render financial or other assistance to or participate in or be connected with, as an officer, employee,
partner, stockholder, consultant or otherwise, any individual, partnership, firm, corporation or other business organization or entity that is engaged in any business in which the Protected Party is actively engaged at the time; provided,
however, that the restrictions in this Section 6(b)(ii) shall not apply to (A) any non-employee directorships held by Employee as of the date hereof or (B) ownership by Employee for personal investment purposes only of not in excess of 1% of the
voting stock of any publicly held corporation. 
 
Employee acknowledges that a breach of any of the covenants contained in this Section 6(b) may result in material irreparable injury to the Company for which there is no adequate remedy at law, that it may not be possible to measure
damages for such injuries precisely and that, in the event of such a breach, any payments remaining under the terms of this Agreement shall cease and the Company may be entitled to obtain a temporary restraining order and/or a preliminary or
permanent injunction restraining Employee from engaging in activities prohibited by this Section 6(b) or such other relief as may be required to specifically enforce all of the covenants in this Section 6(b). Employee agrees to and hereby does
submit to in personam jurisdiction before each and every such court in the State of California, County of Santa Clara, for that purpose. This Section 6(b) shall survive any termination of this Agreement. 
 

9 

 
(c) If
litigation is brought by Employee to enforce or interpret any provision contained in this Agreement, the Company shall indemnify Employee for Employee’s reasonable attorney’s fees and disbursements incurred in such litigation and pay
prejudgment interest on any money judgment obtained by Employee calculated at the prime rate of interest in effect from time to time at the Bank of America, San Francisco, from the date that payment should have been made under the Agreement,
provided that Employee shall not have been found by the court in which such litigation is pending to have had no cause in bringing the action, or to have acted in bad faith, which finding must be final with the time to appeal therefrom having
expired and no appeal having been taken. 
 
(d)
Except as provided in Section 4, the Company’s obligation to pay to Employee the compensation and to make the arrangements provided in this Agreement shall be absolute and unconditional and shall not be affected by any circumstance, including,
without limitation, any setoff, counterclaim, recoupment, defense or other right which the Company may have against Employee or anyone else. All amounts payable by the Company hereunder shall be paid without notice or demand. Employee shall not be
required to mitigate the amount of any payment provided for in this Agreement by seeking other employment. 
 
(e) The Company shall require any successor, whether direct or indirect, by purchase, merger, consolidation or otherwise, to all or
substantially all of the business and/or assets of the Company, by written agreement to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such
succession had taken place. 
 
(f) This Agreement
shall inure to the benefit of and be enforceable by Employee’s heirs, successors and assigns. If Employee should die while any amounts would still be payable to Employee hereunder if Employee had continued to live, all such amounts shall be
paid in accordance with the terms of this Agreement to Employee’s heirs, successors and assigns. 
 
(g) For the purposes of this Agreement, notices and all other communications provided for in this Agreement shall be in writing and shall
be deemed to have been duly given when delivered or mailed by United States registered mail, return receipt requested, postage prepaid, addressed as follows: 
 

	 If to Employee:
	 	 If to the Company:

	
	 	 	 Varian, Inc.

	 	 	 3120 Hansen Way

	 	 	 Palo Alto, CA 94304-1030

	 	 	 Attn: Vice President, Human Resources

 
or to such other address
as either party furnishes to the other in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt. 
 
(h) This Agreement shall constitute the entire agreement between Employee and the Company concerning the subject matter of this Agreement.

 

10 

 
(i) The
validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of California without giving effect to the provisions, principles or policies thereof relating to choice or conflict of laws. The
invalidity or unenforceability of any provision of this Agreement in any circumstance shall not affect the validity or enforceability of such provision in any other circumstance or the validity or enforceability of any other provision of this
Agreement, and, except to the extent such provision is invalid or unenforceable, this Agreement shall remain in full force and effect. Any provision in this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective only to the extent of such prohibition or unenforceability without invalidating or affecting the remaining provisions hereof in such jurisdiction, and any such prohibition or unenforceability in any jurisdiction shall
not invalidate or render unenforceable such provision in any other jurisdiction. This Section 6(i) shall survive any termination of this Agreement. 
 
(j) This Agreement may be terminated by the Company pursuant to a resolution adopted by the Board at any time prior to a Potential Change
in Control Date. After a Change in Control Date or a Potential Change in Control Date, this Agreement may only be terminated with the consent of Employee. 
 
(k) No agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by
either party which are not expressly set forth in this Agreement and this Agreement shall supersede all prior agreements, negotiations, correspondence, undertakings and communications of the parties, oral or written, with respect to the subject
matter hereof including, without limitation, the Amended and Restated Change in Control Agreement between Employee and the Company dated as of April 2, 1999. 
 
IN WITNESS WHEREOF, the parties acknowledge that they have read and understand the terms of this Agreement and have executed this
Agreement to be effective as of February 7, 2003. 
 

	 VARIAN, INC.
	 	 	 	 EMPLOYEE

	
	 /s/    Arthur W. Homan        
        

	 	 	 	 /s/    Allen J.
Lauer        

	 By:
	 	     Arthur W. Homan
	 	 	 	         Allen J.
Lauer        

	 Title:
	 	     Vice President, General Counsel and Secretary
	 	 	 	 	 	 

 
 

11

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