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AMENDMENT NO. 2

Dated as of November 12, 2002

to

RECEIVABLES LOAN AGREEMENT

Dated as of January 22, 2002

     THIS AMENDMENT NO. 2 (this “Amendment”) dated as of November 12, 2002 is
entered into by and among AGERE SYSTEMS RECEIVABLES FUNDING LLC, a Delaware
limited liability company (the “Borrower”), AGERE SYSTEMS INC., a Delaware
corporation, as collection agent (the “Collection Agent”), the entities parties
hereto as “CONDUIT LENDERS”, “RELATED COMMITTED LENDERS” and “LENDER AGENTS” and
WESTLB AG, NEW YORK BRANCH (formerly known as Westdeutsche Landesbank
Girozentrale, New York Branch), as agent for the Lenders (in such capacity, the
“Agent”).

PRELIMINARY STATEMENTS

     A. The Borrower, the Conduit Lenders, the Related Committed Lenders, the
Lender Agents and the Agent are parties to that certain Receivables Loan
Agreement dated as January 22, 2002 (as amended or otherwise modified prior to
the date hereof, the “Receivables Loan Agreement”). Capitalized terms used and
not otherwise defined herein shall have the meanings ascribed to them in the
Receivables Loan Agreement.

     B. The parties hereto have agreed to amend the Receivables Loan Agreement
and the Fee Letter on the terms and conditions hereinafter set forth.

     NOW, THEREFORE, in consideration of the premises set forth above, and other
good and valuable consideration the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:

     SECTION 1. Amendments to Receivables Loan Agreement. The Receivables Loan
Agreement is hereby amended as follows:

     1.1 The last sentence of Section 1.7 is amended in its entirety to read as
follows:

       “Such prepayments (if in part) shall be applied ratably to the Loans of
the Lenders (or, in the case of a prepayment of a Terminated Lender Group
pursuant to Section 9.6(b), ratably to the Lenders in such Terminated Lender
Group) in accordance with their respective Loan Amounts, applied with respect to
each such Lender as specified by the Borrower or, in the absence of such
specification, first to such Lender’s Prime Tranches, if any, and second to the
other Tranches applicable to the Loan Amount of such Lender with the shortest
remaining maturities unless otherwise specified by the Borrower.”

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     1.2 The last two sentences of Section 2.3(a) are hereby amended in their
entirety to read as follows:

       “On each Settlement Date prior to the Liquidity Termination Date, all
Collections so set aside during the preceding Settlement Period shall be applied
where applicable by the Collection Agent (or, if the Agent is then in control of
any Collections, by the Agent) in the following order:

       (i) ratably to the Lenders, all Interest due and payable on such date;

       (ii) all fees and other amounts due and payable to the Agent and the
Lender Agents;

       (iii) ratably to the Lenders in any Terminated Lender Group the unpaid
Loan Amounts held by each such Lender (if any);

       (iv) ratably to the Lenders, all other amounts due and payable to the
Lenders under the Transaction Documents;

       (v) to the Collection Agent, an amount equal to the Collection Agent Fee
due and payable on such date; and

       (vi) to the Borrower.

       On the last day of each Tranche Period for Loan Amounts of the Committed
Lenders that ends prior to the next succeeding Settlement Date, the Collection
Agent (or, if the Agent is then in control of any Collections, the Agent) shall
(x) pay Interest due and payable to such Committed Lenders from amounts set
aside for such purpose pursuant to Section 3.2(a) during such Settlement Period
and (y) in the case of any Terminated Lender Group, repay all Loan Amounts held
by such Committed Lenders (but only to the extent there are Collections
available for such purpose in excess of the Collections required to be set aside
for the payment of amounts described in clauses (i) and (ii) above).”

     1.3 Section 9.6(b) is amended in its entirety to read as follows:

       “(b) If, in connection with any proposed amendment or waiver, discharge
or termination with respect to any of the provisions of this Agreement, any
Lender Group fails to give its consent thereto within fifteen (15) days of the
Borrower’s request for such consent, then the Borrower shall have the right to
either (A) replace each such non-consenting Lender Group with one or more
replacement Lender Groups so long as at the time of such replacement, each such
replacement Lender Group consents to the proposed amendment, waiver, discharge
or termination or (B) terminate such non-consenting Lender Group’s Commitment (a
“Terminated Lender Group”) and either (1) prepay in full such Terminated Lender
Group’s outstanding Loan Amounts in accordance with Section 1.7 or (2) cause
such Terminated Lender Group’s outstanding Loan Amounts to be repaid out of
Collections pursuant to Section 2.3.”

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     1.4 Clause (d) of the definition of “Liquidity Termination Date” in
Schedule I is amended to change the date set forth therein from “January 21,
2003” to “November 11, 2003”.

     1.5 The definition of “Loss and Dilution Reserve” in Schedule I is amended
in its entirety to read as follows:

       “Loss and Dilution Reserve” means, at any time, the product of (i) the
greater of (a) 10% and (b) the sum of (x) the Applicable Stress Factor (as
defined below) times the average Delinquency Ratio for the most recent three
Settlement Periods plus (y) the Applicable Stress Factor times the average
Dilution Ratio for the most recent three Settlement Periods multiplied by
(ii) the Eligible Receivables Balance at such time. As used herein, “Applicable
Stress Factor” means 2.5; provided that (i) so long as the Collection Agent’s
Liquidity is less than $200,000,000 but greater than or equal to $100,000,000,
the Applicable Stress Factor shall be 3.0 and (ii) so long as the Collection
Agent’s Liquidity is less than $100,000,000, the Applicable Stress Factor shall
be 4.0.

     1.6 Clause (f) of the definition of “Termination Event” in Schedule I is
amended to delete the words “the average Dilution Ratio for the most recent
three Settlement Periods exceeds 13% for the most recent three Settlement
Periods” and to substitute therefor the following:

       “the average Dilution Ratio for the most recent three Settlement Periods
exceeds 10%”.

     1.7 Clause (j) of the definition of “Termination Event” in Schedule I is
deleted and the following substituted therefor:

       “(j) any of the following shall occur:

       (x) the Collection Agent’s Consolidated EBITDA for any fiscal quarter
shall be less than the amount set forth below opposite such fiscal quarter:

  Fiscal Quarter Ended

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Amount

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      December 31, 2002 $(90,200,000)       March 31, 2003 $(63,000,000)      
June 30, 2003 $(18,900,000)       September 30, 2003 $44,200,000       December
31, 2003 $41,800,000  

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       (y) the Collection Agent’s Consolidated Net Worth at the end of any
fiscal quarter shall be less than the amount set forth below opposite such
fiscal quarter:

  Fiscal Quarter Ended

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Amount

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      December 31, 2002 $1,410,100,000       March 31, 2003 $1,243,600,000      
June 30, 2003 $1,145,300,000       September 30, 2003 $1,118,500,000      
December 31, 2003 $1,084,600,000  

       or (z) the Capital Expenditures of the Collection Agent for any fiscal
year set forth below shall exceed the amount set forth below opposite such
fiscal year:

  Fiscal Quarter Ended

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Amount

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      September 30, 2003 $148,300,000  

     1.8 Schedule I is further amended to add the following new definitions in
appropriate alphabetical order:

       “Capital Expenditures” shall mean, for any period, the aggregate of all
expenditures by Agere and its Subsidiaries for the acquisition or leasing
(pursuant to a capital lease) of fixed or capital assets or additions to
equipment (including replacements, capitalized repairs and improvements during
such period) that should be capitalized under GAAP on a consolidated balance
sheet of Agere and its Subsidiaries; provided that Agere may, in connection with
any lease conversion, exclude from such expenditure the amount recorded on
Agere’s financial statements as a capital expenditure as a result of a
conversion of an operating lease to a capital lease and also exclude from such
expenditure any capital lease that was initially intended to be an operating
lease.

       “Consolidated EBITDA” shall mean for any period, Consolidated Net Income
for such period plus, without duplication and to the extent reflected as a
charge in the statement of such Consolidated Net Income for such period, the sum
of (a) income tax expense, (b) interest expense, amortization or write-off of
debt discount and debt issuance costs and commissions, discounts and other fees
and charges associated with Debt (including the Loans), (c) depreciation and
amortization expense, (d) amortization of intangibles (including, but not
limited to, goodwill) and organization costs, (e) charges or expenses relating
to purchased in-process research and development, (f) non-cash business
restructuring charges and related non-cash charges and expenses taken by Agere
after September 30, 2002, (g) up to $342,000,000 in the aggregate of cash
business restructuring charges and related cash charges and expenses taken by
Agere after September 30, 2002, (h) any extraordinary, unusual or non-recurring
non-cash expenses or losses (including, whether or not otherwise includable as a
separate item in the statement of such Consolidated Net Income for such period,
non-cash losses on sales of assets outside of the ordinary course of business),
and (i) any other non-cash charges, and minus, to the extent included in the
statement of such Consolidated Net Income for such period, the sum of (i)
interest income, (ii) any extraordinary, unusual or non-recurring income or
gains (including, whether or not otherwise includable as a separate item in the
statement of such Consolidated Net Income for such period, gains on the sales of
assets outside of the ordinary course of business) and (iii) any other non-cash
income, all as determined on a consolidated basis.

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       “Consolidated Net Income” shall mean, for any period, the consolidated
net income (or loss) of Agere and its Subsidiaries, determined on a consolidated
basis in accordance with GAAP; provided that there shall be excluded the income
(or deficit) of any Person accrued prior to the date it becomes a Subsidiary of
Agere or is merged into or consolidated with Agere or any of its Subsidiaries.

       “Consolidated Net Worth” shall mean, at any date, all amounts that would,
in conformity with GAAP, be included on a consolidated balance sheet of Agere
and its Subsidiaries under stockholders’ equity at such date plus any goodwill
write-off plus the after-tax effects of up to an aggregate amount of
$1,200,000,000 of pre-tax business restructuring charges and related charges and
expenses taken by Agere after June 30, 2002 provided that, to the extent that
any of such $1,200,000,000 of charges and expenses are taken in cash, not more
than $342,000,000 in the aggregate of such cash charges and expenses may be
included in the calculation of “Consolidated Net Worth”, plus the non-cash
equity effect of statement of Financial Accounting Standards No. 87 associated
with the minimum liability adjustment.

       “Liquidity” shall mean, at any date, the sum of (a) the aggregate amount
of cash, cash equivalents and other financial assets (as defined in Section
8-102(a)(9) of the UCC as in effect in the State of New York) maturing within
one year maintained by Agere and its Subsidiaries at such date and (b) the
amount of any unused commitments then available to be drawn by Agere or any
Subsidiary under any revolving credit facility in effect as of such date.

       “Terminated Lender Group” has the meaning specified in Section 9.6(b).

     SECTION 2. Amendment to Fee Letter. The third paragraph of the Fee Letter
is hereby amended in its entirety to read as follows:

  “The Program Fee Rate shall be determined in accordance with the ratings grid
set forth below based on the Parent’s long-term unsecured debt rating from
Moody’s and S&P:

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  RATINGS PROGRAM FEE RATE             BBB+/Baa1 (or higher) 0.375%      
BBB/Baa2 0.50%       BBB-/Baa3 0.625%       BB+/Ba1 0.75%       BB/Ba2 0.875%  
    BB-/Ba3 1.00%       B+/B1 1.50%       B/B2 2.00%       B-/B3 (or lower)
3.00%"  

     SECTION 3. Conditions Precedent. This Amendment shall become effective and
be deemed effective with the exception of SECTION 1.4, as of the date hereof
upon satisfaction of the following conditions precedent:

     3.1 The Agent shall have received counterparts of this Amendment duly
executed by the Borrower, the Collection Agent, the Lenders, the Lender Agents
and the Agent.

     3.2 Each Lender Agent shall have received such approvals and ratings
confirmations, if any, as are required for its Related Conduit Lender with
respect to this Amendment.

     3.3 The Borrower shall have paid all fees and expenses of counsel for the
Agent incurred by the Agent in connection with the transactions contemplated
hereby through the date hereof.

     3.4 Each Lender Agent shall have received a duly executed fee letter
between the Borrower and such Lender Agent in form and substance satisfactory to
such Lender Agent, and all fees required to be paid by the Borrower on or prior
to the date hereof pursuant to the terms of each such fee letter shall have been
paid in full.

     It is understood that SECTION 1.4 of this Amendment shall become effective
and be deemed effective once the credit insurance payment has been paid in full
to AIG and the payment of all other fees pursuant to the executed fee letters
have also been paid.

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     SECTION 4. Covenants, Representations and Warranties of the Borrower and
Collection Agent.

     4.1 Upon the effectiveness of this Amendment, each of the Borrower and the
Collection Agent hereby reaffirms all covenants, representations and warranties
made by it in the Receivables Loan Agreement and agrees that all such covenants,
representations and warranties shall be deemed to have been remade as of the
effective date of this Amendment.

     4.2 Each of the Borrower and the Collection Agent hereby represents and
warrants that (i) this Amendment constitutes the legal, valid and binding
obligation of such party, enforceable against such party in accordance with its
terms and (ii) upon the effectiveness of this Amendment, no Termination Event
shall exist under the Receivables Loan Agreement.

     SECTION 5. Reference to and Effect on the Receivables Loan Agreement.

     5.1 Upon the effectiveness of this Amendment, each reference in the
Receivables Loan Agreement to “this Agreement,” “hereunder,” “hereof,” “herein,”
“hereby” or words of like import shall mean and be a reference to the
Receivables Loan Agreement as amended hereby, and each reference to the
Receivables Loan Agreement in any other document, instrument and agreement
executed and/or delivered in connection with the Receivables Loan Agreement
shall mean and be a reference to the Receivables Loan Agreement as amended
hereby.

     5.2 Except as specifically amended hereby, the Receivables Loan Agreement
and all other documents, instruments and agreements executed and/or delivered in
connection therewith shall remain in full force and effect and are hereby
ratified and confirmed.

     5.3 Except as expressly provided herein, the execution, delivery and
effectiveness of this Amendment shall not operate as a waiver of any right,
power or remedy of the Lenders, the Lender Agents or the Agent under the
Receivables Loan Agreement or any other document, instrument, or agreement
executed in connection therewith, nor constitute a waiver of any provision
contained therein.

     SECTION 6. Governing Law. THIS AMENDMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS (INCLUDING SECTION 5-1401 OF THE
GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK, BUT OTHERWISE WITHOUT REGARD
TO THE LAW OF CONFLICTS) OF THE STATE OF NEW YORK.

     SECTION 7. Execution in Counterparts. This Amendment may be executed in any
number of counterparts and by different parties hereto in separate counterparts,
each of which when so executed and delivered shall be deemed to be an original
and all of which taken together shall constitute but one and the same
instrument.

     SECTION 8. Headings. Section headings in this Amendment are included herein
for convenience of reference only and shall not constitute a part of this
Amendment for any other purpose.

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     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed by their respective officers thereunto duly authorized as of the date
first written above.

AGERE SYSTEMS RECEIVABLES FUNDING LLC, as Borrower

By: /s/ GARY WOJTASZEK
——————————————
Name: Gary Wojtaszek
Title: Vice President

AGERE SYSTEMS INC., as Collection Agent

By: /s/ JOHN W. GAMBLE, JR.
——————————————
Name: John W. Gamble, Jr.
Title: Senior Vice President & Treasurer

WESTLB AG, NEW YORK BRANCH, as a Related Committed Lender, as Lender Agent and
as Agent

By: /s/ MARK SADOK
——————————————
Name: Mark Sadok
Title: Executive Director

By: /s/ RICHARD BIANCHI
——————————————
Name: Richard Bianchi
Title: Director-Global Securitization Americas

DRESDNER BANK AG, NEW YORK AG, NEW YORK BRANCH, as a Related Committed Lender
and as Lender Agent

By: /s/ TIMOTHY C. MADIGAN
——————————————
Name: Timothy C. Madigan
Title: Director

By: /s/ DAVID TAYLOR
——————————————
Name: David Taylor
Title: Associate

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PARADIGM FUNDING LLC, as a Conduit Lender

By: /s/ PATRICIA C. HARRIS
——————————————
Name: Patricia C. Harris
Title: Vice President

BEETHOVEN FUNDING CORPORATION, as a Conduit Lender

By: /s/ CHRISTOPHER T. BURT
——————————————
Name: Christopher T. Burt
Title: Vice President

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