|AMENDMENT NO. 1 AND
WAIVER


Dated as of August 29,
2002


to


RECEIVABLES LOAN
AGREEMENT


Dated as of January 22,
2002


THIS
AMENDMENT NO. 1 AND WAIVER (this Amendment and Waiver) dated
as of August 29, 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 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 Borrower has requested a waiver with respect to any Termination Event that
may arise under Receivables Loan Agreement by reason of any breach of the
covenant set forth in Section 6.01(b) of the Agere Credit Facility with respect
to the fiscal quarter ended September 30, 2002. The Conduit Lenders, the Related
Committed Lenders, the Lender Agents and the Agent have agreed to grant such
waiver on the terms and conditions hereinafter set forth.


C. The
parties hereto have also agreed to amend the Receivables Loan Agreement 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. Waiver. The Conduit Lenders, the Related Committed Lenders, the Lender
Agents and the Agent hereby waive any Termination Event that may arise under the
Receivables Loan Agreement by reason of any breach of the covenant set forth in
Section 6.01(b) of the Agere Credit Facility with respect to the fiscal quarter
ended September 30, 2002.



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


2.1
Clause (xiii) of the definition of Eligible Receivable is amended in its
entirety to read as follows:
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (xiii)
the aggregate outstanding balance of which, when added to the aggregate outstanding
balance of Eligible Receivables originated by Agere Systems Singapore Pte. Ltd., would
not cause the aggregate outstanding balance of Eligible Receivables originated by Agere
Systems Singapore Pte. Ltd. to exceed 60% of the Eligible Receivables Balance.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2.3
The definition of Loss and Dilution Reserve 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) 2.5 times the average Delinquency Ratio for the most recent three
Settlement Periods plus (y) 2.5 times the average Dilution Ratio for the most recent
three Settlement Periods multiplied by (ii) the Eligible Receivables Balance at such
time.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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


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


3.2
The Agent shall have received for the account of the Related Committed Lenders
in each Lender Group in accordance with their respective pro rata shares an
amendment fee equal to 0.20% of the Aggregate Commitment.


3.3
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 and Waiver.


3.4
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.


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


4.1
Upon the effectiveness of this Amendment and Waiver, 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 and Waiver.


2
4.2
Each of the Borrower and the Collection Agent hereby represents and warrants
that (i) this Amendment and Waiver 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 and Waiver, 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 and Waiver, 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 and Waiver 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 AND WAIVER 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 and Waiver 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 and Waiver are included herein for
convenience of reference only and shall not constitute a part of this Amendment and
Waiver for any other purpose.


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INTENTIONALLY LEFT BLANK]


3
IN
WITNESS WHEREOF, the parties hereto have caused this Amendment and Waiver 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: President
| |  | ------------------------------------------------------------------------------------------------------------------------------

| |  | AGERE SYSTEMS INC., as Collection Agent
By: /s/ JOHN W. GAMBLE, JR.

Name: John W. Gamble, Jr.
Title: Senior Vice President & Treasurer
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------

| |  | WESTDEUTSCHE LANDESBANK GIROZENTRALE, NEW YORK BRANCH,
as a Related Committed Lender, as Lender Agent and as Agent
By: /s/ JON A. HELLBUSCH

Name: Jon A. Hellbusch
Title: Director-Global Securitization Americas
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/ WILL AGUIAR

Name: Will Aguiar
Title: Vice President
By: /s/ TIMOTHY C. MADIGAN

Name: Timothy C. Madigan
Title: Director
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| |  | PARADIGM FUNDING LLC, as a Conduit Lender
By: /s/ EVELYN ECHEVARRIA

Name: Evelyn Echevarria
Title: Vice President
| |  | --------------------------------------------------------------------------------------------------------------------------------

| |  | BEETHOVEN FUNDING CORPORATION, as a Conduit Lender
By: /s/ BERNARD J. ANGELO

Name: Bernard J. Angelo
Title: Vice President
| |  | -----------------------------------------------------------------------------------------------------------------------------------------

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