|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.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|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.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2
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 | Amount        | 
| | -------------------- | ------------- | 
|
| | 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   | 

|3
|-

| | (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 | Amount         | 
| | -------------------- | -------------- | 
|
| | 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 | Amount       | 
| | -------------------- | ------------ | 
|
| | 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.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4
|-

| | 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:
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5
|-

| | 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.


6
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.


7
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
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8
|-

| |  | 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
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------

|9
|-