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Exhibit 10.3  

 
 

FIFTH AMENDMENT TO LEASE    
  

    This Amendment is made as of October 19, 2000 between UNIVERSITY STREET PROPERTIES IV, LLC, a Delaware
limited liability company ("Landlord") and PACIFICA BANK, a Washington state banking corporation
("Tenant"). 

RECITALS  

    A.  Pursuant
to a Lease dated March 31, 1998 between Tenant's predecessor in interest, Pacifica Joint Venture, and The Trustees under the Will and of the Estate
of James Campbell, Deceased (the "Original Landlord"), as amended by a First Amendment to Lease dated as of May 1, 1998, a Second Amendment to
Lease dated as of June 12, 1998, a Third Amendment to Lease dated as of May 28, 1999, and a Fourth Amendment to Lease dated as of May 24, 2000 (as amended, the
"Lease"), Tenant is leasing certain premises (the "Current Premises") in the building presently known as
Skyline Tower located at 10900 N.E. 4th Street in Bellevue, King County, Washington (the "Building"). The current term of
the Lease will expire on August 31, 2003. The Current Premises and the Building are more particularly described in the Lease. Landlord is the current owner of the Building and the holder of all
of the rights of the Original Landlord under the Lease. Capitalized terms used in this Amendment and not otherwise defined will have the meanings given to such terms in the Lease. 

    B.  Tenant
desires to expand the Current Premises to include certain space with an agreed area of 2,917 rentable square feet located on the ground floor of the Building
and commonly referred to as Suite 100B, and certain space with an agreed area of 1,150 rentable square feet located on the second floor of the Building and commonly referred to as Suite 205
(collectively the "Additional Space"). The Additional Space is marked with crosshatching on the floor plan of the Building attached to this
Amendment as Exhibit A. Landlord and Tenant have agreed to amend the Lease to add the Additional Space to the Premises and to extend the term of
the Lease as provided in this Amendment. 

AGREEMENT  

    In consideration of the mutual covenants contained in this Amendment, and the mutual covenants contained in the Lease, Landlord and Tenant agree as follows: 

    1.  Expansion of the Premises.  Effective as of the Expansion Commencement Date (as defined in
Paragraph 4 of this Amendment), the Lease is amended so that all references in the Lease to the "Premises" will mean the Current Premises and the Additional Space, having an agreed area of
14,869 rentable square feet. 

    2.  Extension of Lease Term.  The term of the Lease is hereby extended to August 31, 2007. 

    3.  Building Rentable Area.  Tenant acknowledges the area of the Building has been remeasured in
accordance with current BOMA standards (i.e., the Standard Method for Measuring Floor Area in Office Buildings specified in ANSI/BOMA Publication Z65.1-1996, approved June 7, 1996
by American National Standards Institute, Inc.) and the Building contains 407,344 rentable square feet. Landlord and Tenant agree that Item 2 of the Basic Lease Provisions is amended so that
the Building Rentable Area is 407,344 square feet. 

    4.  Expansion Commencement Date.  The "Expansion Commencement
Date" will be the earlier of (a) the date the Tenant Improvements (as defined in Paragraph 7 of this Amendment) are substantially complete to the extent that
Tenant may reasonably use and occupy the Additional Space for the purpose for general office purposes, or (b) March 1, 2001. As of the date this Amendment has been executed by both
Landlord and Tenant, Tenant may enter the Additional Space for the sole purpose of 

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causing the Tenant Improvements to be constructed. Upon such entry, all of Tenant's covenants and obligations under the Lease (except those regarding payment of rent) will be applicable to the
Additional Space. 

    5.  Amendments to Basic Lease Provisions.  Effective as of the Expansion Commencement Date, the following
Basic Lease Provisions will be amended as follows: 

	Item 1.	 	Description of Premises:  The Premises contain an agreed area of 14,869 rentable square feet.
	

Item 3.	
 	
Tenant's Share of Operating Expenses and Real Property Taxes:  3.65%.
	

Item 5.	
 	
Annual Base Rent:
	

 	
 	

(a)	
 	

From the Expansion Commencement Date through August 31, 2001—$386,594.00.
	

 	
 	

(b)	
 	

From September 1, 2001 through August 31, 2003—$401,463.00.
	

 	
 	

(c)	
 	

From September 1, 2003 through August 31, 2005—$416,332.00.
	

 	
 	

(d)	
 	

From September 1, 2005 through August 31, 2007—$431,201.00.
	

Item 6.	
 	
Monthly Installments of Base Rent:
	

 	
 	

(a)	
 	

From the "Expansion Commencement Date" through August 31, 2001—$32,216.17.
	

 	
 	

(b)	
 	

From September 1, 2001 through August 31, 2003—$33,455.25.
	

 	
 	

(c)	
 	

From September 1, 2003 through August 31, 2005—$34,694.33.
	

 	
 	

(d)	
 	

From September 1, 2005 through August 31, 2007—$35,933.42.

    6.  Renewal Options.  Paragraph 46.3 of the Lease is amended to read as follows: 

    46.3  Renewal Option.  So long as Tenant is not then in default under this Lease, on the terms and
conditions stated in this Paragraph 46.3, Tenant shall have the option to extend the term of this Lease for up to two (2) additional sixty (60) month periods (the
"First Additional Term" and the "Second Additional Term", respectively). The renewal option for the
Second Additional Term may be exercised only if the renewal option for the First Additional Term has been exercised. The First Additional Term and the Second Additional Term are collectively referred
to as the "Additional Terms", and separately as an "Additional Term". To exercise its option to extend
this Lease for an Additional Term, Tenant must deliver to Landlord a written notice (an "Option Notice") exercising its renewal option at least twelve
(12) months (but not more than eighteen (18) months) prior to the date the then Lease Term will expire, together with a then current financial statement of Tenant. If such financial
statement(s) show a material adverse change in Tenant's financial condition since the date of this Lease, at Landlord's option, Tenant's exercise of its renewal option shall be null and void. The
extension options granted to Tenant pursuant to this paragraph are personal to Tenant and may not be exercised by or for the benefit of any assignee or sublessee of Tenant, except for assignees or
sublessees expressly permitted under Paragraphs 15(f) and 15(g) of this Lease or an "Authority" (defined in Paragraph 46.12 below). All of the terms and conditions of this Lease shall apply
during each Additional Term except (i) the base annual rent shall be the "fair market rent" (defined below) for the Premises as agreed to by Landlord and Tenant or determined by arbitration as
set forth below; (ii) unless otherwise agreed by Landlord in writing, there shall be no further renewal options after the commencement of the Second Additional Term; and (iii) Landlord
shall have no tenant improvement obligations with respect to the Premises except as otherwise agreed in writing by Landlord. When the rental rate 

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for an Additional Term is determined, whether by agreement of the parties or pursuant to arbitration as provided below, Landlord and Tenant shall enter into a lease extension agreement setting forth
the new base rent for the Premises and such other terms as may be applicable. If at the time Tenant delivers the Option Notice to Landlord, or at any time between such date and the commencement date
of the applicable Additional Term, Tenant defaults under this Lease and fails to cure its default within the applicable cure period, if any, Landlord may declare the Option Notice null and void by
written notice to Tenant. The term "fair market rent" means the rate per rentable square foot that a willing, non-equity tenant would pay in
an arms-length transaction for comparable space in the Building and in comparable buildings in the central business district of Bellevue, Washington, for leases having a five
(5) year term, taking into account the then condition of the improvements in the Premises. Landlord and Tenant agree the base annual rent for each Additional Term shall be determined as
follows: 

     (i) Landlord
shall advise Tenant in writing ("Landlord's Notice") of Landlord's determination of fair market rent not
later than thirty (30) days after receiving the Option Notice. Within thirty (30) days after receiving Landlord's Notice, Tenant shall notify Landlord in writing
("Tenant's Notice") whether or not Tenant accepts Landlord's determination of the fair market rent. If Tenant disagrees with Landlord's determination of
fair market rent, Tenant's Notice shall set forth Tenant's determination of fair market rent. If Tenant fails to give Tenant's Notice to Landlord within such thirty (30) day period, then the
Option Notice shall be deemed null and void, unless otherwise agreed in writing by Landlord and Tenant. If Tenant does not accept Landlord's determination of fair market rent, and Tenant has given
Tenant's Notice, the parties (or their designated representatives) shall promptly meet and attempt to agree on the fair market rent. If the parties have not agreed on the fair market rent within
ninety
(90) days after Landlord receives the Option Notice, and Tenant's renewal option is still in effect in accordance with the terms of this paragraph, then unless otherwise agreed in writing by
the parties, the parties shall submit the matter to arbitration in accordance with the terms of the following paragraphs. The last day of such ninety (90) day period (as the same may be
extended by the written agreement of the parties) is referred to in this Lease as the "Arbitration Commencement Date". 

    (ii) The
arbitration will be conducted by three MAI real estate appraisers who have been active over the five (5) year period ending on the Arbitration
Commencement Date in the appraisal of downtown properties in Bellevue, Washington. One appraiser will be selected by Tenant, one appraiser will be selected by Landlord, and the third appraiser will be
selected by the two appraisers so chosen. If the two appraisers chosen by the parties cannot agree on a third appraiser within ten (10) days after the date the second appraiser has been
appointed, the third appraiser will be appointed by the Seattle office of the American Arbitration Association upon the application of either party. Each party shall select its appraiser within ten
(10) days after the Arbitration Commencement Date. If either party fails to select its appraiser within such ten (10) day period, and the other party timely selects its appraiser, then
the appraiser selected by the other party shall be the sole arbitrator for determining fair market rent. 

    (iii) Within
thirty (30) days after the selection of the third appraiser (or if only one appraiser is to render the decision as provided in subparagraph
(ii) above, within thirty (30) days after the last day of the above-referenced ten (10) day period), the appraiser(s) shall determine fair market. If more than one appraiser has
been appointed, the decision of a majority of the appraisers shall control. If a majority of the appraisers do not agree within the stipulated time period, then each appraiser shall in writing render
his or her separate determination as to fair market rent within five (5) days after the expiration of the thirty (30) day period. In such case, the three determinations shall be averaged
to determine the fair market rent; however, if the lowest fair market rent or the highest fair market rent is ten percent (10%) lower or higher, as applicable, than the middle fair market rent, then
the low fair market rent and/or the high fair market rent, as 

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applicable, shall be disregarded and the remaining fair market rent(s) will be averaged in order to establish the fair market rent. 

    (iv) Both
parties may submit any information to the arbitrators for their consideration, with copies to the other party. The arbitrators shall have the right to consult
experts and competent authorities for factual information or evidence pertaining to the determination of fair market rent. The arbitrators shall render their decision and award in writing with
counterpart copies to each party. The arbitrators shall have no power to modify the provisions of this Lease. The determination of the arbitrators will be final and binding upon Landlord and Tenant.
The cost of the arbitration will be paid by Landlord if the fair market rent determined by arbitration is ninety percent (90%) or less than the fair market rent specified in Landlord's Notice; by
Tenant if the fair market rent determined by arbitration is one
hundred ten percent (110%) or more than the fair market rent specified in Tenant's Notice; and otherwise shall be shared equally by Landlord and Tenant. 

    7.  Right of First Offer—Suite 250.  So long as Tenant is not in default under the Lease, on
the terms and conditions set forth in this Paragraph 6, Tenant shall have a right of first offer to lease Suite 250 of the Building (which has an agreed rentable area of 2,290 square feet) when
it becomes available (the "Additional RFO Space"). Prior to leasing the Additional RFO Space to any third party, Landlord will first advise Tenant in
writing of the date the Additional RFO Space will be available for the commencement of tenant improvement work. Tenant shall have seven (7) business days after receiving such notice from
Landlord to notify Landlord in writing that Tenant desires to expand the Premises to include all of the Additional RFO Space. If Tenant does not timely notify Landlord of Tenant's desire to lease the
Additional RFO Space, Landlord shall be free to lease the Additional RFO Space to any person or entity on whatever terms or conditions Landlord desires. If Tenant timely notifies Landlord of Tenant's
desire to lease the Additional RFO Space, Landlord and Tenant shall promptly enter into a lease amendment adding the Additional RFO Space to the Premises. All of the terms and conditions of the Lease,
including the then rental rate per square foot and the term will be applicable to the Additional RFO Space. In addition, if the Additional RFO Space is added to the Premises, Tenant shall be entitled
to four (4) additional parking spaces. 

    8.  Construction of Tenant Improvements.  

    (a) Tenant
has inspected the Additional Space, is familiar with the condition of the Additional Space and agrees to accept possession of the Additional Space in its
current condition, AS-IS; except that Landlord at its expense will replace the remaining single pane windows in Suite 100B of the Additional Space with Building standard double pane
windows. Tenant shall cause those improvements necessary for its use of the Additional Space (the "Tenant Improvements") to be constructed by TCI
Construction, Inc. (the "Contractor") in accordance with plans and specifications approved by Landlord, which approval will not be unreasonably
withheld or delayed. The construction contract between Tenant and Contractor will be subject to the approval of Landlord, which approval will not be unreasonably withheld or delayed. All work must be
done by Contractor on behalf of Tenant in a good and workmanlike manner. 

    (b) Landlord
will reimburse Tenant in an amount not to exceed $46,820.00 for all costs of completing the work, including the Contractor's fees, design fees, Landlord's
coordination fees (not in excess of two percent (2%) of the balance of the cost of the work), architect's fees, demolition costs, permit fees and any applicable taxes. Tenant shall pay all additional
costs to design and complete the Tenant Improvements. Tenant shall indemnify, defend and hold Landlord harmless from and against any and all liens, losses, damages, claims or expenses (including
reasonable attorneys' fees) arising out of or in any way related to the design and construction of the Tenant Improvements, except to the extent that any such liens, losses, claims or expenses result
from the negligence or intentional misconduct of Landlord or its agents or employees. Tenant agrees that if 

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Contractor or any subcontractor or other person or entity performing work or supplying materials or equipment in connection with the Tenant Improvements files a lien against the Building or the
Premises, then at Landlord's request, Tenant shall purchase and record a bond in the type required under RCW 60.04.161 in order to release the Building, the Premises and the real property on which the
Building is located from the lien. When the Tenant Improvements are completed, Tenant shall deliver to Landlord a full and complete unconditional lien release from Contractor and any subcontractors
designated by Landlord. 

    9.  Parking.  Eight (8) additional parking permits for unreserved parking will be allocated to
tenant. The total parking allocation will become thirty (30), which includes thirty (30) parking permits for unreserved monthly parking. Landlord also agrees that Tenant's customers shall be
entitled to fifteen (15) minutes of free parking in the Building parking garage. 

    10.  Non-Renewal Fee.  Paragraph 5 of the Fourth Amendment to the Lease is hereby
deleted and is now null and void. 

    11.  Brokers.  Tenant represents and warrants to Landlord it has dealt with no real estate brokers or
salespersons in connection with this Amendment, other than the property manager of the Building, Unico Properties, Inc. ("Manager"). Landlord
shall pay Manager such commissions as are due and payable to Manager in connection with this Amendment, as set forth in a separate agreement between Landlord and Manager. If any person or entity other
than Manager claims a real estate fee or commission or other such fee in connection with the subject transaction, and such claim is based on actual or alleged oral or written agreements or
understandings with Tenant, Tenant shall indemnify, defend and hold Landlord harmless from any such claims or demands (including attorneys' fees) incurred by Landlord as a result of any such claim or
demand. 

    12.  No Other Changes.  Except as specifically modified by this Amendment, all of the terms and
conditions of the Lease remain unchanged and in full force and effect. If any of the terms or conditions of the Lease conflict with any of the terms and conditions of this Amendment, this Amendment
will control. 

	 	 	LANDLORD:
	

 	
 	
UNIVERSITY STREET PROPERTIES IV, LLC,

a Delaware limited liability company
	

 	
 	

By	
 	
UNICO Properties, Inc., its managing agent
	

 	
 	

 	
 	

By	
 	

/s/ Donald M. Wise
 Donald M. Wise,
 Senior Vice President

[Signature of Tenant on next page]  

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	 	 	TENANT:
	

 	
 	
PACIFICA BANK, a Washington state banking corporation
	

 	
 	

By	
 	

/s/ John D. Huddleston

	 	 	Name	 	John D. Huddleston

	 	 	Title	 	Senior Vice President/

Chief Financial Officer

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	STATE OF WASHINGTON	 	)	 	 
	 	 	)	 	ss.
	COUNTY OF KING	 	)	 	 

    On
this 27th day of November, 2000, before me, the undersigned, a Notary
Public in and for the State of Washington, duly commissioned and sworn personally appeared Donald M. Wise, known to me to be the Senior Vice President
of UNICO PROPERTIES, INC., managing agent of UNIVERSITY STREET PROPERTIES IV, LLC, the limited
liability company that executed the foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said limited liability company, for the purposes therein
mentioned, and on oath stated that he was authorized to execute said instrument. 

    I
certify that I know or have satisfactory evidence that the person appearing before me and making this acknowledgment is the person whose true signature appears on this document. 

    WITNESS
my hand and official seal hereto affixed the day and year in the certificate above written. 

	 	 	/s/ Elsbeth Wintermuth
	 	 	

	 	 	Signature
	

 	
 	

Elsbeth Wintermuth
	 	 	
 Print Name
	 	 	NOTARY PUBLIC in and for the State of Washington, residing at Bellevue.
	 	 	My commission expires 5-12-04.
	

(Notary Stamp)

	

 	

 

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	STATE OF WASHINGTON	 	)	 	 
	 	 	)	 	ss.
	COUNTY OF KING	 	)	 	 

    On
this 17th day of November, 2000, before me, the undersigned, a Notary Public in and
for the State of Washington, duly commissioned and sworn personally appeared John D. Huddleston, known to me to be the  Senior Vice President/Chief Financial
Officer of PACIFICA BANK, the Washington state banking corporation
that executed the foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said bank corporation, for the purposes therein mentioned, and on oath stated
that he/she was authorized to execute said instrument. 

    I
certify that I know or have satisfactory evidence that the person appearing before me and making this acknowledgment is the person whose true signature appears on this document. 

    WITNESS
my hand and official seal hereto affixed the day and year in the certificate above written. 

	 	 	/s/ Michael G. Benoit
	 	 	
 Signature
	 	 	Michael G. Benoit
	 	 	
 Print Name
	 	 	NOTARY PUBLIC in and for the State of Washington, residing at Seattle.
	 	 	My commission expires 5-12-04.
	

(Notary Stamp)	
 	

 

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EXHIBIT A    
  

FLOOR PLAN SHOWING ADDITIONAL SPACE  

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FIFTH AMENDMENT TO LEASE

EXHIBIT A<PAGE>

                                                                    EXHIBIT 10.4

                         CHANGE-IN-CONTROL SEVERANCE AGREEMENT

                         Edwards Lifesciences Corporation

                         April 2000
<PAGE>

CONTENTS

-------------------------------------------------------------------------------
Article 1. Definitions                                                        1

Article 2. Severance Benefits                                                 4

Article 3. Form and Timing of Severance Benefits                              7

Article 4. Excise Tax                                                         7

Article 5. The Company's Payment Obligation                                   8

Article 6. Term of Agreement                                                  8

Article 7. Legal Remedies                                                     9

Article 8. Successors                                                         9

Article 9. Miscellaneous                                                      9

<PAGE>

CHANGE-IN-CONTROL SEVERANCE AGREEMENT
EDWARDS LIFESCIENCES CORPORATION

      THIS CHANGE-IN-CONTROL SEVERANCE AGREEMENT is made, entered into, and is
effective as of the _______ day of ________, 2000 (hereinafter referred to as
the "Effective Date"), by and between Edwards Lifesciences Corporation (the
"Company"), a Delaware corporation, and ____________________ (the "Executive").

      WHEREAS, the Executive is currently employed by the Company in a key
management capacity; and

      WHEREAS, the Executive possesses considerable experience and knowledge of
the business and affairs of the Company concerning its policies, methods,
personnel, and operations; and

      WHEREAS, the Company is desirous of assuring insofar as possible, that it
will continue to have the benefit of the Executive's services; and the Executive
is desirous of having such assurances; and

      WHEREAS, the Company recognizes that circumstances may arise in which a
Change in Control of the Company occurs, through acquisition or otherwise,
thereby causing uncertainty of employment without regard to the Executive's
competence or past contributions. Such uncertainty may result in the loss of the
valuable services of the Executive to the detriment of the Company and its
shareholders; and

      WHEREAS, both the Company and the Executive are desirous that any proposal
for a Change in Control will be considered by the Executive objectively and with
reference only to the business interests of the Company and its shareholders;
and

      WHEREAS, the Executive will be in a better position to consider the
Company's best interests if the Executive is afforded reasonable security, as
provided in this Agreement, against altered conditions of employment which could
result from any such Change in Control.

      NOW, THEREFORE, in consideration of the foregoing and of the mutual
covenants and agreements of the parties set forth in this Agreement, and of
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto, intending to be legally bound, agree as
follows:

ARTICLE 1. DEFINITIONS

      Wherever used in this Agreement, the following terms shall have the
meanings set forth below and, when the meaning is intended, the initial letter
of the word is capitalized:

      1.1     "AGREEMENT" means this Change-in-Control Severance Agreement.

                                       1
<PAGE>

      1.2     "BASE SALARY" means, at any time, the then-regular annual rate
of pay which the Executive is receiving as annual salary, excluding amounts:
(i) received under short- or long-term incentive or other bonus plans,
regardless of whether or not the amounts are deferred or (ii) designated by
the Company as payment toward reimbursement of expenses.

      1.3     "BOARD" means the Board of Directors of the Company.

      1.4     "CAUSE" shall be determined solely by the Board in the exercise
of good faith and reasonable judgment, and shall mean the occurrence of any
one or more of the following:

               (i)    A continuing material breach by the Executive of the
                      duties and responsibilities of the Executive, which duties
                      shall not differ in any material respect from the duties
                      and responsibilities of the Executive during the 90-day
                      period immediately prior to a Change in Control (other
                      than as a result of incapacity due to a physical or mental
                      condition or illness), which breach is demonstrably
                      willful and deliberate on the Executive's part, is
                      committed in bad faith and without a reasonable belief
                      that such a breach is in the best interests of the
                      Company, and is not remedied in a reasonable period of
                      time after receipt of written demand for substantial
                      performance is delivered to the Executive by the Board
                      that specifically identifies the manner in which the Board
                      believes the Executive has breached such duties and
                      responsibilities; or

               (ii)   The Executive's willfully engaging in conduct that is
                      demonstrably and materially injurious to the Company,
                      monetarily or otherwise; or

               (iii)  The Executive's conviction of a felony.

      However, no act or failure to act on the Executive's part shall be deemed
"willful" unless done, or omitted to be done, by the Executive not in good faith
and without reasonable belief that the action or omission was in the best
interest of the Company.

      1.5     "CHANGE IN CONTROL" of the Company shall mean the occurrence of
any one of the following events:

               (a)    Any "Person," as such term is used in Sections 13(d) and
                      14(d) of the Securities Exchange Act of 1934 (as amended)
                      (other than the Company, any corporation owned, directly
                      or indirectly, by the stockholders of the Company in
                      substantially the same proportions as their ownership of
                      stock of the Company, and any trustee or other fiduciary
                      holding securities under an employee benefit plan of the
                      Company or such proportionately owned corporation), is or
                      becomes the "beneficial owner" (as defined in Rule 13d-3
                      under the Securities Exchange Act of 1934, as amended),
                      directly or indirectly, of securities of the Company
                      representing thirty percent (30%) or more of the combined
                      voting power of the Company's then outstanding securities;
                      or

               (b)    During any period of not more than twenty-four (24)
                      months, individuals who at the beginning of such period
                      constitute the Board of Directors of the Company,

                                       2
<PAGE>

                      and any new director (other than a director designated by
                      a Person who has entered into an agreement with the
                      Company to effect a transaction described in Sections
                      1.5(a), 1.5(c), or 1.5(d) of this Section 1.5) whose
                      election by the Board or nomination for election by the
                      Company's stockholders was approved by a vote of at least
                      two-thirds (2/3) of the directors then still in office who
                      either were directors at the beginning of the period or
                      whose election or nomination for election was previously
                      so approved, cease for any reason to constitute at least a
                      majority thereof; or

               (c)    The consummation of a merger or consolidation of the
                      Company with any other entity, other than: (i) a merger or
                      consolidation which would result in the voting securities
                      of the Company outstanding immediately prior thereto
                      continuing to represent (either by remaining outstanding
                      or by being converted into voting securities of the
                      surviving entity) more than sixty percent (60%) of the
                      combined voting power of the voting securities of the
                      Company or such surviving entity outstanding immediately
                      after such merger or consolidation; or (ii) a merger or
                      consolidation effected to implement a recapitalization of
                      the Company (or similar transaction) in which no Person
                      acquires more than thirty percent (30%) of the combined
                      voting power of the Company's then outstanding securities;
                      or

              (d)    The Company's stockholders approve a plan of complete
                     liquidation or dissolution of the Company, or an agreement
                     for the sale or disposition by the Company of all or
                     substantially all of the Company's assets (or any
                     transaction having a similar effect).

      1.6     "CODE" means the Internal Revenue Code of 1986, as amended.

      1.7     "COMPANY" means Edwards Lifesciences Corporation, a Delaware
corporation (including any and all subsidiaries), or any successor thereto as
provided in Article 8 herein.

      1.8     "DISABILITY" shall have the meaning ascribed to such term in
the Executive's governing long-term disability plan as of the Effective Date.

      1.9     "EFFECTIVE DATE" means the date specified in the opening
sentence of this Agreement.

      1.10    "EFFECTIVE DATE OF TERMINATION" means the date on which a
Qualifying Termination occurs, as provided in Section 2.2 herein, which
triggers the payment of Severance Benefits hereunder.

      1.11    "GOOD REASON" means, without the Executive's express written
consent, the occurrence after a Change in Control of the Company of any one
or more of the following:

              (i)     The assignment of the Executive to duties materially
                      inconsistent with the Executive's authorities, duties,
                      responsibilities, and status (including offices, titles,
                      and reporting requirements) as an executive and/or officer
                      of the Company, or a material reduction or alteration in
                      the nature or status of the Executive's authorities,
                      duties, or responsibilities from those in effect as of
                      ninety (90)

                                       3
<PAGE>

                      calendar days prior to the Change in Control, other than
                      an insubstantial and inadvertent act that is remedied by
                      the Company promptly after receipt of notice thereof given
                      by the Executive;

              (ii)    The Company's requiring the Executive to be based at a
                      location in excess of fifty (50) miles from the location
                      of the Executive's principal job location or office
                      immediately prior to the Change in Control; except for
                      required travel on the Company's business to an extent
                      substantially consistent with the Executive's then present
                      business travel obligations;

              (iii)   A reduction by the Company of the Executive's Base Salary
                      in effect on the Effective Date hereof, or as the same
                      shall be increased from time to time;

               (iv)   The failure of the Company to continue in effect any of
                      the Company's short- and long-term incentive compensation
                      plans, or employee benefit or retirement plans, policies,
                      practices, or other compensation arrangements in which the
                      Executive participates, unless the Executive is permitted
                      to participate in other plans that provide the Executive
                      with substantially comparable benefits; or the failure by
                      the Company to continue the Executive's participation
                      therein on substantially the same basis, both in terms of
                      the amount of benefits provided and the level of the
                      Executive's participation relative to other participants,
                      as existed immediately prior to the Change in Control of
                      the Company;

              (v)     The failure of the Company to obtain a satisfactory
                      agreement from any successor to the Company to assume and
                      agree to perform the Company's obligations under this
                      Agreement, as contemplated in Article 8 herein; and

              (vi)    The Company, or any successor company, commits a material
                      breach of any of the material provisions of this
                      Agreement.

      The Executive's right to terminate employment for Good Reason shall not be
affected by the Executive's incapacity due to physical or mental illness. The
Executive's continued employment shall not constitute consent to, or a waiver of
rights with respect to, any circumstance constituting Good Reason herein.

      1.12    "QUALIFYING TERMINATION" means any of the events described in
Section 2.2 herein, the occurrence of which triggers the payment of Severance
Benefits hereunder.

      1.13    "SEVERANCE BENEFITS" means the payment of severance
compensation as provided in Section 2.3 herein.

ARTICLE 2. SEVERANCE BENEFITS

      2.1     RIGHT TO SEVERANCE BENEFITS. The Executive shall be entitled to
receive from the Company Severance Benefits as described in Section 2.3
herein, if there has been a Change in Control of the Company and if, within
twenty-four (24) calendar months thereafter, the Executive's employment with
the Company shall end for any reason specified in Section 2.2 herein as being
a Qualifying Termination.

                                       4
<PAGE>

      The Executive shall not be entitled to receive Severance Benefits if he is
terminated for Cause, or if his employment with the Company ends due to death,
Disability, voluntary normal retirement (as defined under the then established
rules of the Company's tax-qualified retirement plan), or due to a voluntary
termination of employment for a reason other than that specified in Section
2.2(b) herein.

      2.2     QUALIFYING TERMINATION. The occurrence of either of the
following events within twenty-four (24) calendar months after a Change in
Control of the Company shall trigger the payment of Severance Benefits to the
Executive under this Agreement:

               (a)    The Company's involuntary termination of the Executive's
                      employment without Cause; or

               (b)    The Executive's voluntary employment termination for Good
                      Reason.

      In addition, if the Executive's employment is involuntarily terminated
without Cause by the Company within six (6) months prior to a Change in Control,
such termination shall also be considered a Qualifying Termination occurring
during the twenty-four (24) month period following a Change in Control. For
purposes of this Agreement, a Qualifying Termination shall not include a
termination of employment by reason of death, Disability, or voluntary normal
retirement (as such term is defined under the then established rules of the
Company's tax-qualified retirement plan), the Executive's voluntary termination
for a reason other than that specified in Section 2.2(b) herein, or the
Company's involuntary termination for Cause.

      2.3     DESCRIPTION OF SEVERANCE BENEFITS. In the event that the
Executive becomes entitled to receive Severance Benefits, as provided in
Sections 2.1 and 2.2 herein, the Company shall pay to the Executive and
provide him with total Severance Benefits equal to all of the following:

              (a)    A lump-sum amount equal to the Executive's unpaid Base
                     Salary, accrued vacation pay, unreimbursed business
                     expenses, and all other items earned by and owed to the
                     Executive through and including the Effective Date of
                     Termination.

              (b)    A lump-sum amount equal to the Executive's annual target
                     bonus amount, established under the annual bonus plan in
                     which the Executive is then participating, for the bonus
                     plan year in which the Executive's Effective Date of
                     Termination occurs, multiplied by a fraction the numerator
                     of which is the number of full completed months in the
                     bonus plan year through the Effective Date of Termination,
                     and the denominator of which is twelve (12). This payment
                     will be in lieu of any other payment to be made to the
                     Executive under the annual bonus plan in which the
                     Executive is then participating for that plan year.

              (c)    A lump-sum amount equal to three (3) multiplied by the
                     higher of the Executive's annual rate of Base Salary in
                     effect upon the Effective Date of Termination, or the
                     Executive's highest annual rate of Base Salary in effect
                     during the twelve (12) months preceding the date of the
                     Change in Control.

                                       5
<PAGE>

              (d)    A lump-sum amount equal to three (3) multiplied by the
                     higher of the Executive's annual target bonus established
                     under the annual bonus plan in which the Executive is then
                     participating for the bonus plan year in which the
                     Executive's Effective Date of Termination occurs, or the
                     actual annual bonus payment made to the Executive under the
                     annual bonus plan in which the Executive participated in
                     the year preceding the year in which the Effective Date of
                     Termination occurs.

              (e)    All long-term incentive awards shall be subject to the
                     treatment provided under the Company's Long-Term Stock
                     Incentive Compensation Program (as amended, or any
                     successor plans thereto) and/or the applicable award
                     agreements thereunder.

              (f)    A continuation for thirty-six (36) months of the
                     Executive's medical insurance and dental insurance
                     coverage. These benefits shall be provided by the Company
                     to the Executive beginning immediately upon the Effective
                     Date of Termination. Such benefits shall be provided to the
                     Executive at the same coverage level (with all premium
                     costs borne by the Company) as in effect as of the
                     Executive's Effective Date of Termination for a period of
                     thirty-six (36) months following the Executive's Effective
                     Date of Termination.

                     Notwithstanding the above, these medical and dental
                     insurance benefits shall be discontinued prior to the end
                     of the stated continuation period in the event the
                     Executive receives substantially similar benefits from a
                     subsequent employer, as determined solely by the Board in
                     good faith. However, if the benefits received from the
                     subsequent employer do not cover the preexisting medical
                     conditions of the Executive or a covered member of the
                     Executive's family, the continuation period shall continue,
                     but not beyond the thirty-sixth (36th) month following the
                     Executive's Effective Date of Termination. For purposes of
                     enforcing this offset provision, the Executive shall be
                     deemed to have a duty to keep the Company informed as to
                     the terms and conditions of any subsequent employment and
                     the corresponding benefits earned from such employment and
                     shall provide, or cause to provide, to the Company in
                     writing correct, complete, and timely information
                     concerning the same.

              (g)    For a period of up to thirty-six (36) months following a
                     Change in Control, the Executive shall be entitled, at the
                     expense of the Company, to receive standard outplacement
                     services from a nationally recognized outplacement firm of
                     the Executive's selection. However, the Company's total
                     obligation shall not exceed seventy-five thousand dollars
                     ($75,000.00).

      2.4     TERMINATION DUE TO DISABILITY. Following a Change in Control,
if the Executive's employment is terminated with the Company due to
Disability, the Executive's benefits shall be determined in accordance with
the Company's retirement, insurance, and other applicable plans and programs
then in effect.

      2.5     TERMINATION DUE TO RETIREMENT OR DEATH. Following a Change in
Control, if the Executive's employment with the Company is terminated by
reason of his voluntary normal retirement (as defined under the then
established rules of the Company's tax-qualified retirement

                                       6
<PAGE>

plan), or death, the Executive's benefits shall be determined in accordance with
the Company's retirement, survivor's benefits, insurance, and other applicable
programs then in effect.

      2.6     TERMINATION FOR CAUSE OR BY THE EXECUTIVE OTHER THAN FOR GOOD
REASON. Following a Change in Control, if the Executive's employment is
terminated either: (i) by the Company for Cause; or (ii) voluntarily by the
Executive for a reason other than that specified in Section 2.2(b) herein,
the Company shall pay the Executive his full Base Salary at the rate then in
effect, accrued vacation, and other items earned by and owed to the Executive
through the Effective Date of Termination, plus all other amounts to which
the Executive is entitled under any compensation plans of the Company at the
time such payments are due, and the Company shall have no further obligations
to the Executive under this Agreement.

      2.7     NOTICE OF TERMINATION. Any termination of the Executive's
employment by the Company for Cause or by the Executive for Good Reason shall
be communicated by Notice of Termination to the other party. For purposes of
this Agreement, a "Notice of Termination" shall mean a written notice which
shall indicate the specific termination provision in this Agreement relied
upon, and shall set forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Executive's employment
under the provision so indicated.

ARTICLE 3. FORM AND TIMING OF SEVERANCE BENEFITS

      3.1     FORM AND TIMING OF SEVERANCE BENEFITS. The Severance Benefits
described in Sections 2.3(a), 2.3(b), 2.3(c), and 2.3(d) herein shall be paid
in cash to the Executive in a single lump sum as soon as practicable
following the Effective Date of Termination, but in no event beyond ten (10)
calendar days from such date. The Severance Benefits described in Section
2.3(f) shall be provided over the period specified; the Severance Benefits
described in Section 2.3(g) shall be paid or provided as and when invoiced.

      3.2     WITHHOLDING OF TAXES. The Company shall withhold from any
amounts payable under this Agreement all federal, state, city, or other taxes
as legally shall be required.

ARTICLE 4. EXCISE TAX

      4.1     EXCISE TAX PAYMENT. If any portion of the Severance Benefits or
any other payment under this Agreement, or under any other agreement with, or
plan of the Company (in the aggregate, "Total Payments") would constitute an
"excess parachute payment," such that a golden parachute excise tax is due,
the Company shall provide to the Executive, in cash, an additional payment in
an amount sufficient to cover the full cost of any excise tax and all of the
Executive's additional state and federal income, excise, and employment taxes
that arise on this additional payment (cumulatively, the "Full Gross-Up
Payment"), such that the Executive is in the same after-tax position as if he
had not been subject to the excise tax. For this purpose, the Executive shall
be deemed to be in the highest marginal rate of federal and state taxes. This
payment shall be made as soon as possible following the date of the
Executive's Qualifying Termination, but in no event later than ten (10)
calendar days from such date.

      For purposes of this Agreement, the term "excess parachute payment" shall
have the meaning assigned to such term in Section 280G of the Internal Revenue
Code, as amended (the "Code"), and the term "excise tax" shall mean the tax
imposed on such excess parachute payment pursuant to Sections 280G and 4999 of
the Code.

                                       7
<PAGE>

      4.2     SUBSEQUENT RECALCULATION. In the event the Internal Revenue
Service subsequently adjusts the excise tax computation herein described, the
Company shall reimburse the Executive for the full amount necessary to make
the Executive whole on an after-tax basis (less any amounts received by the
Executive that the Executive would not have received had the computations
initially been computed as subsequently adjusted), including the value of any
underpaid excise tax, and any related interest and/or penalties due to the
Internal Revenue Service.

ARTICLE 5. THE COMPANY'S PAYMENT OBLIGATION

      5.1     PAYMENT OBLIGATIONS ABSOLUTE. The Company's obligation to make
the payments and the arrangements provided for herein shall be absolute and
unconditional, and shall not be affected by any circumstances including,
without limitation, any offset, counterclaim, recoupment, defense, or other
right which the Company may have against the Executive or anyone else. All
amounts payable by the Company hereunder shall be paid without notice or
demand. Each and every payment made hereunder by the Company shall be final,
and the Company shall not seek to recover all or any part of such payment
from the Executive or from whomsoever may be entitled thereto, for any
reasons whatsoever.

      The Executive shall not be obligated to seek other employment in
mitigation of the amounts payable or arrangements made under any provision of
this Agreement, and the obtaining of any such other employment shall in no
event effect any reduction of the Company's obligations to make the payments
and arrangements required to be made under this Agreement, except to the
extent provided in Section 2.3(f) herein.

      5.2     CONTRACTUAL RIGHTS TO BENEFITS. This Agreement establishes and
vests in the Executive a contractual right to the benefits to which he is
entitled hereunder. However, nothing herein contained shall require or be
deemed to require, or prohibit or be deemed to prohibit, the Company to
segregate, earmark, or otherwise set aside any funds or other assets, in
trust or otherwise, to provide for any payments to be made or required
hereunder.

ARTICLE 6. TERM OF AGREEMENT

      This Agreement will commence on the Effective Date first written above,
and shall continue in effect irrevocably for three (3) full calendar years.
However, at the end of the first year of such three-year (3) period, this
Agreement shall be extended automatically for one (1) additional year, unless
the Company notifies the Executive in writing, prior to the occurrence of the
automatic extension, that the term of this Agreement will not be extended.
Moreover, upon the end of each subsequent year, this Agreement shall also be
extended automatically for one (1) additional year, unless the Company
otherwise notifies the Executive in writing prior to the occurrence of such
automatic extension. In the case where the Company properly notifies the
Executive that the Agreement will no longer be extended, the Agreement will
terminate at the end of the term, or extended term, then in progress.

      However, in the event a Change in Control occurs during the original or
any extended term, this Agreement will remain in effect for twenty-four (24)
months beyond the month in which such Change in Control occurred.

                                       8
<PAGE>

ARTICLE 7. LEGAL REMEDIES

      7.1     DISPUTE RESOLUTION. The Executive shall have the right and
option to elect to have any good faith dispute or controversy arising under
or in connection with this Agreement settled by litigation or arbitration. If
arbitration is selected, such proceeding shall be conducted by final and
binding arbitration before a panel of three (3) arbitrators in accordance
with the rules and under the administration of the American Arbitration
Association.

      7.2     PAYMENT OF LEGAL FEES. In the event that it shall be necessary
or desirable for the Executive to retain legal counsel and/or to incur other
costs and expenses in connection with the enforcement of any or all of his
rights under this Agreement, the Company shall pay (or the Executive shall be
entitled to recover from the Company) the Executive's attorneys' fees, costs,
and expenses in connection with a good faith enforcement of his rights
including the enforcement of any arbitration award. This shall include,
without limitation, court costs and attorneys' fees incurred by the Executive
as a result of any good faith claim, action, or proceeding, including any
such action against the Company arising out of, or challenging the validity
or enforceability of this Agreement or any provision hereof.

ARTICLE 8. SUCCESSORS

      The Company shall require any successor (whether direct or indirect, by
purchase, merger, reorganization, consolidation, acquisition of property or
stock, liquidation, or otherwise) of all or substantially all of the assets
of the Company by agreement, in form and substance satisfactory to the
Executive, 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 if no such succession had taken place. Regardless of whether such
agreement is executed, this Agreement shall be binding upon any successor in
accordance with the operation of law and such successor shall be deemed the
"Company" for purposes of this Agreement.

ARTICLE 9. MISCELLANEOUS

      9.1     EMPLOYMENT STATUS. This Agreement is not, and nothing herein
shall be deemed to create, an employment contract between the Executive and
the Company or any of its subsidiaries. Subject to the terms of any
employment contract between the Executive and the Company, the Executive
acknowledges that the rights of the Company remain wholly intact to change or
reduce at any time and from time to time his compensation, title,
responsibilities, location, and all other aspects of the employment
relationship, or to discharge him prior to a Change in Control (subject to
such discharge possibly being considered a Qualifying Termination pursuant to
Section 2.2).

      9.2     ENTIRE AGREEMENT. This Agreement contains the entire
understanding of the Company and the Executive with respect to the subject
matter hereof. In addition, the payments provided for under this Agreement in
the event of the Executive's termination of employment shall be in lieu of
any severance benefits payable under any employment contract between the
Executive and the Company or any severance plan, program, or policy of the
Company to which he might otherwise be entitled.

      9.3     NOTICES. All notices, requests, demands, and other
communications hereunder shall be sufficient if in writing and shall be
deemed to have been duly given if delivered by hand or if sent by registered
or certified mail to the Executive at the last address he has filed in
writing with the Company or, in the case of the Company, at its principal
offices.

                                       9
<PAGE>

      9.4     EXECUTION IN COUNTERPARTS. This Agreement may be executed by
the parties hereto in counterparts, each of which shall be deemed to be an
original, but all such counterparts shall constitute one and the same
instrument, and all signatures need not appear on any one counterpart.

      9.5     CONFLICTING AGREEMENTS. The executive hereby represents and
warrants to the Company that his entering into this Agreement, and the
obligations and duties undertaken by him hereunder, will not conflict with,
constitute a breach of, or otherwise violate the terms of, any other
employment or other agreement to which he is a party, except to the extent
any such conflict, breach, or violation under any such agreement has been
disclosed to the Board in writing in advance of the signing of this Agreement.

      9.6     SEVERABILITY. In the event any provision of this Agreement
shall be held illegal or invalid for any reason, the illegality or invalidity
shall not affect the remaining parts of the Agreement, and the Agreement
shall be construed and enforced as if the illegal or invalid provision had
not been included. Further, the captions of this Agreement are not part of
the provisions hereof and shall have no force and effect.

      Notwithstanding any other provisions of this Agreement to the contrary,
the Company shall have no obligation to make any payment to the Executive
hereunder to the extent, but only to the extent, that such payment is prohibited
by the terms of any final order of a Federal or state court or regulatory agency
of competent jurisdiction; provided, however, that such an order shall not
affect, impair, or invalidate any provision of this Agreement not expressly
subject to such order.

      9.7     MODIFICATION. No provision of this Agreement may be modified,
waived, or discharged unless such modification, waiver, or discharge is
agreed to in writing and signed by the Executive and by a member of the
Board, as applicable, or by the respective parties' legal representatives or
successors.

      9.8     APPLICABLE LAW. To the extent not preempted by the laws of the
United States, the laws of Delaware shall be the controlling law in all
matters relating to this Agreement without giving effect to principles of
conflicts of laws.

      IN WITNESS WHEREOF, the parties have executed this Agreement as of this
_____ day of _________, 2000.

                                       10

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