Document:

<PAGE>

                                                                   EXHIBIT 10.21

                          TRANSITION SERVICES AGREEMENT
                          -----------------------------

     THIS TRANSITION SERVICES AGREEMENT (the "Agreement") is made and entered
into this 30th day of April, 2003 (the "Effective Date") by and between
Community Choice Michigan, Inc., a Michigan corporation ("COMMUNITY"), and
Molina Healthcare of Michigan, Inc., a Michigan corporation ("MOLINA
HEALTHCARE").

                                    RECITALS
                                    --------

     A. COMMUNITY is licensed as a health maintenance organization in the State
of Michigan;

     B. MOLINA HEALTHCARE is licensed as a health maintenance organization in
the State of Michigan;

     C. COMMUNITY has agreed to provide, and MOLINA HEALTHCARE desires to
purchase, certain short-term transition services to facilitate the orderly and
expeditious transition of the COMMUNITY enrollees that are assigned to MOLINA
HEALTHCARE by the Michigan Department of Community Health pursuant to the
Coordination Agreement at Exhibit A.

     NOW THEREFORE, in consideration of the mutual promises and covenants
contained herein, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, and intending to be legally bound,
the parties do hereby agree as follows:

     1. Transition Services. During the term hereof, COMMUNITY shall use its
        -------------------
best efforts to provide or provide as applicable to MOLINA HEALTHCARE the
services listed and described in Exhibit A attached hereto and incorporated
herein by this reference (collectively, the "Transition Services"). In addition
to the services listed in Exhibit A, COMMUNITY shall use its best efforts to
procure computer support services necessary to perform the Transition Services.
COMMUNITY shall arrange necessary personnel to perform the Transition Services
as COMMUNITY determines are reasonably necessary to render the Transition
Services in accordance with the terms of this Agreement (collectively, the
"Personnel") and COMMUNITY shall use its best efforts to provide MOLINA
HEALTHCARE with access to the Personnel as necessary to provide the Transition
Services. COMMUNITY shall exercise reasonable care and business judgment in
procuring the necessary assistance in order to provide the Transition Services
and shall ensure the performance of the Transition Services to the same
standards of timeliness and quality as COMMUNITY would apply to the performance
of similar services for COMMUNITY.

     2. Term. This Agreement shall commence on April 30, 2003 and shall continue
        ----
thereafter for ninety (90) days, unless or until terminated pursuant to Section
4 below.

     3. Consideration. MOLINA HEALTHCARE shall pay COMMUNITY an aggregate fee of
        -------------
$1,320,900.00 as consideration for the Transition Services set forth in Exhibit
A to this Agreement and for the facilitation of the membership transfer. The fee
shall be payable by MOLINA HEALTHCARE to COMMUNITY within five (5) business days
after receipt of any necessary regulatory approval and the completion of
services listed in Exhibit A. If MOLINA HEALTHCARE and COMMUNITY mutually agree
to expand the scope of the Transition

<PAGE>

Services, the parties shall agree upon the appropriate fair market value
compensation for any such additional services. MOLINA HEALTHCARE shall not be
responsible for payment, to COMMUNITY or any third party, of the cost of any
medical/health care services provided to COMMUNITY enrollees authorized by
COMMUNITY for dates of service on or before June 30, 2003 or received while
enrolled in COMMUNITY.

     4. Termination. This Agreement shall terminate upon the occurrence of one
        -----------
of the following acts or events:

          4.1  the mutual written consent of the parties hereto;

          4.2  upon twenty (20) days advance written notice in the event a party
               hereto breaches a material agreement or covenant contained in
               this Agreement and such breach has not been waived by the
               nonbreaching party or cured to the reasonable satisfaction of the
               nonbreaching party within twenty (20) days of the date of the
               written notice of such a breach.

     5. Remedies for Breach. No provision of this agreement shall affect, be
        -------------------
construed as, or operate as a waiver of the right of the party aggrieved by any
breach of this Agreement to be compensated for any injury or damage resulting
therefrom which is incurred either before or after termination of this
Agreement.

     6. Proprietary Material. All books, records, data, work product and other
        --------------------
documents relating to the businesses of each party and their respective
affiliates (the "Owner") including, without limitation, all employee records,
medical records, data, information, software, and manuals (collectively, the
"Proprietary Material"), whether or not prepared by the Personnel or otherwise
coming into the possession or control of the Personnel or of the other party as
a result of or in connection with the performance of the Transition Services,
shall be and remain the exclusive property of the Owner, and the other party
shall not at any time, directly or indirectly, assert any interest or property
rights therein. Such Proprietary Material shall not be used for any purpose
other than in connection with the provision of Transition Services. Each party
shall establish and maintain reasonable precautions against the destruction or
loss of any such Proprietary Materials. Upon the expiration or termination of
this Agreement, and without any further action, each party shall cause all such
materials and all copies of the Proprietary Materials to be returned to the
Owner thereof in such format, electronic or otherwise, as the Owner may
reasonably request as soon as reasonably possible following the effective date
of the expiration or termination.

     7. Confidentiality. Each party acknowledges that, in the course of this
        ---------------
business relationship, it may become aware of or come into possession of certain
confidential or proprietary information of the other party including but not
limited to the Proprietary Material. Each party agrees to maintain the
confidentiality of such confidential and proprietary information and agrees not
to disclose such confidential and proprietary information to third parties, make
copies, or use the information for any purpose other than as necessary to
perform its obligations under this Agreement, without the prior written
permission of the Owner of the information. Each party agrees to return all
copies of any such information when all services to be performed under this
Agreement have been performed. Each party agrees that it will comply with
applicable state and federal privacy law

<PAGE>

with respect to the handling of information pursuant to this Agreement. This
section shall survive any termination or expiration of this Agreement.

     8. Intellectual Property. MOLINA HEALTHCARE acknowledges that nothing in
        ---------------------
this Agreement shall be deemed to constitute a transfer or assignment to MOLINA
HEALTHCARE, or the license or right to use by MOLINA HEALTHCARE, of any (a)
trademarks, service marks, trade names, logos, business and product names,
slogans, and registrations and applications for registrations thereof; (b) works
in which copyright may be claimed (including software), and registrations and
applications for registrations thereof; (c) inventions, processes, designs,
formulae, trade secrets, know-how, confidential technical information, product
specifications and confidential business information (including all of the
foregoing as they relate to software and hardware); (d) intellectual property
rights similar to any of the foregoing; and (e) copies and tangible embodiments
thereof (in whatever form or medium, including electronic media) owned or
licensed by COMMUNITY that may be used by COMMUNITY or the Personnel in the
provision of the Transition Services hereunder ("Intellectual Property"). MOLINA
HEALTHCARE further acknowledges and agrees that all books, records, data, work
product, and other documents of COMMUNITY and its affiliates relating to the
Intellectual Property including, without limitation, all software and manuals,
coming into the possession or control of MOLINA HEALTHCARE and its affiliates
and their employees or agents, as a result of or in connection with the
performance of the Transition Services, shall be and remain the exclusive
property of COMMUNITY, and MOLINA HEALTHCARE and its affiliates shall not at any
time, directly or indirectly, assert any interest or property rights therein.
The Intellectual Property (or any part of such) shall not be used by MOLINA
HEALTHCARE or its affiliates for any purpose other than as provided in this
Agreement in connection with the Transition Services. MOLINA HEALTHCARE shall
establish and maintain reasonable precautions against infringement, destruction
or loss of any such materials or the dissemination of any of such materials
without the prior consent of COMMUNITY. Upon the expiration or termination of
this Agreement, and without any further action by COMMUNITY, MOLINA HEALTHCARE
shall cause all Intellectual Property and all copies thereof to be returned to
COMMUNITY as soon as reasonably possible following the effective date of the
expiration or termination in such format, electronic or otherwise, as COMMUNITY
may reasonably request. In the event of the termination of a portion of the
Transition Services, MOLINA HEALTHCARE shall return all such materials and all
copies thereof related to the terminated Transition Services (if possible) to
COMMUNITY as soon as reasonably possible following the effective date of the
termination of such Transition Services in such format, electronic or otherwise,
as the COMMUNITY may reasonably request. MOLINA HEALTHCARE acknowledges that a
breach of any provision of this Section 7 by MOLINA HEALTHCARE or its affiliates
would cause irreparable damage and substantial prejudice to COMMUNITY.
Accordingly, notwithstanding any other provision hereof, MOLINA HEALTHCARE
agrees that, in the event of any such breach, COMMUNITY shall have, in addition
to its legal and any equitable remedies, the right to injunctive relief as
permitted by law, without posting bond.

     9. Responsibility for Personnel. Through its Management Services
        ----------------------------
Agreement with Evercare, COMMUNITY shall use best efforts to cause the personnel
to cooperate with MOLINA HEALTHCARE and its affiliates in performing the
Transition Services. COMMUNITY, pursuant to its Management Services Agreement
shall ensure payment by Evercare of any and all wages, salaries and benefits
paid to the personnel and any and all

<PAGE>

premiums, contributions and taxes for workers' compensation insurance,
unemployment compensation, disability insurance and all similar obligations or
expenses relating to the personnel now or hereafter imposed by any federal,
state or local governmental authority which are imposed with respect to or
measured by wages, salaries or other compensation paid or to be paid by Evercare
to the personnel pursuant to the Management Services Agreement.

     10. Indemnity. COMMUNITY shall indemnify, defend and hold harmless MOLINA
         ---------
HEALTHCARE and its affiliates from and against any and all actual damages,
including reasonable attorney's fees and costs incurred by them that are
proximately caused by any gross negligence or willful misconduct by COMMUNITY
occurring within the course and scope of this Agreement; provided that COMMUNITY
shall not be liable for any consequential damages. MOLINA HEALTHCARE shall
indemnify, defend and hold harmless COMMUNITY and its affiliates from and
against any and all actual damages, including reasonable attorney's fees and
costs incurred by them that are proximately caused by any gross negligence or
willful misconduct by MOLINA HEALTHCARE occurring within the course and scope of
this Agreement; provided that MOLINA HEALTHCARE shall not be liable for any
consequential damages.

     11. Arbitration. All claims and controversies arising out of or in
         -----------
connection with this Agreement shall be subject to binding arbitration by a
single arbitrator in accordance with the commercial arbitration rules of the
American Arbitration Association, and judgment on the reward rendered by the
arbitrator may be entered in any court having jurisdiction hereof. The
prevailing party in any arbitration proceeding hereunder as determined by the
arbitrator shall be entitled to recover reasonable attorney's fees and costs.
Nothing herein shall prohibit a party from seeking equitable relief in a court
of law to maintain the status quo while an arbitration is pending hereunder. Any
arbitration must be initiated within one year after the controversy or claim
arose and was discovered or should have been discovered with reasonable
diligence or such claim shall be deemed waived. The parties shall not be
entitled to punitive damages. Any arbitration pursuant to this Agreement shall
take place in Michigan. This agreement to arbitrate shall survive any expiration
or termination of this Agreement.

     12. Approvals and Consents.
         ----------------------

          (a)  As applicable, each party shall provide releases from providers
          ---  authorizing COMMUNITY to share credentialing files with MOLINA
               HEALTHCARE.

          (b)  Each party shall obtain approvals, authorizations, consents and
          ---  other actions required to be obtained from, and make any
               filings and provide any notices required to be made with or given
               to, any person, judicial authority or governmental authority in
               connection with the transactions contemplated by this Agreement
               that shall be in full force and effect (without any term,
               condition or restriction reasonably unacceptable to either
               party), and any waiting period required by applicable law or any
               governmental authority shall have expired or been earlier
               terminated. The parties shall be furnished with appropriate
               evidence, reasonably satisfactory to it and its counsel, of the
               granting of any such approvals, authorizations, consents and
               other actions, the making of any such filings and the giving of
               any such notices. Additionally, the transactions contemplated
               hereunder will comply with all applicable HIPAA regulations.

<PAGE>

     13. Notices.  Any and all notices, requests, consents, demands and other
         -------
communications required or permitted to be given hereunder shall be in writing
and shall be deemed to have been duly given (i) when delivered, if sent by
registered or certified mail (return receipt requested), (ii) when delivered, if
delivered personally, or (iii) on the second following business day, if sent by
United States Express Mail or overnight courier, in each case to the parties at
the following addresses (or at such other addresses as shall be specified by
like notice) with postage or delivery charges prepaid:

                  If to COMMUNITY:          Community Choice Michigan
                                            P.O. Box 279
                                            Lincoln, MI 48742
                                            Attn: Christine Baumgardner

                  With a copy to:           Butzel Long
                                            100 Bloomfield Parkway, Ste 200
                                            Bloomfield Hills, MI 48304
                                            Attention: Timothy M. Wittebort

                  If to MOLINA HEALTHCARE:

                                            Molina Healthcare of Michigan, Inc.
                                            100 W. Big Beaver, Ste. 600
                                            Troy, MI. 48084
                                            Attn: Roman T. Kulich

                  With a copy to:           Molina Healthcare, Inc.
                                            One Golden Shore Drive
                                            Long Beach, CA 90803
                                            Attention: John Molina

                                            Molina Healthcare, Inc.
                                            2277 Fair Oaks Boulevard, Suite 440
                                            Sacramento, CA 95825
                                            Attention: Mark L. Andrews

     14. No Third Party Beneficiaries.  Nothing herein expressed or implied is
         ----------------------------
intended to confer upon any person, other than the parties and their respective
permitted assigns, any rights, obligations or liabilities under or by reason of
this Agreement.

     15. Interpretation. No provision of this Agreement is to be interpreted for
         --------------
or against any party hereto because that party or that party's legal
representatives drafted such provision. The headings that are used in this
Agreement are for convenience only and shall not affect, in any manner, the
meaning of interpretation of this Agreement.

<PAGE>

     16. Severability. If any term, provision, condition or covenant of this
         ------------
Agreement or the application thereof to any party or circumstance shall be held
to be invalid or unenforceable to any extent, then the remainder of this
Agreement and the application of such term, provision, condition or covenant to
persons or circumstances other than those as to whom or which it is held to be
invalid or unenforceable, shall not be affected thereby, and each term,
provision, condition and covenant of this Agreement shall be valid and
enforceable to the fullest extent permitted by law.

     17. Counterparts. This Agreement may be executed in any number of
         ------------
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same agreement, binding on both of the
parties hereto.

     18. Successors and Assigns.  All of the terms and provisions of this
         ----------------------
Agreement shall be binding upon and shall inure to the benefit of and be
enforceable by the respective successors and assigns of the parties hereto.
Neither party may assign or delegate any rights or obligations set forth in this
Agreement without the prior written consent of the other party; provided, that
MOLINA HEALTHCARE shall have the right, subject to obtaining appropriate
regulatory approvals, to assign its rights and delegate its obligations, without
relieving itself of its obligations hereunder, to one or more affiliates.

     19. Entire Agreement.  This Agreement contains the entire understanding
         ----------------
between the parties hereto with respect to the subject matter of this Agreement
and supersedes any and all prior contemporaneous agreements, understandings, and
statements, oral or written, between the parties concerning or affecting the
subject matter hereof.

     20. Governing Law. This Agreement shall be governed by and construed and
         -------------
enforced in accordance with the laws of the State of Michigan.

     21. Independent Contractor.  The parties hereto understand and agree that
         ----------------------
this Agreement does not make either of them an agent or legal representative of
the other for any purpose whatsoever. No party is granted, by this Agreement or
otherwise, any right or authority to assume or create any obligation or
responsibility, express or implied, on behalf of or in the name of any other
party, or to bind any other party in any manner whatsoever. The parties
expressly acknowledge (i) that COMMUNITY is an independent contractor with
respect to MOLINA HEALTHCARE and its affiliates in all respects, including,
without limitation, the provision of the Transition Services, and (ii) that the
parties are not partners, joint venturers, employees or agents of or with each
other.

     22. Remedies Cumulative.  The remedies of the parties hereto shall be
         -------------------
cumulative to the extent permitted by law, and may be exercised partially,
concurrently or separately. The exercise of one remedy shall not be doomed to
the exercise of any other remedy.

     23. Non-waiver. Except as provided in Section 10, no failure on the part of
         ----------
a party to exercise any remedy or right under this Agreement and no delay in the
exercise of any such remedy or right shall operate as a waiver.

     24. Modifications, Amendments and Waivers.  This Agreement may be amended,
         -------------------------------------
modified, or supplemented only by written agreement of the parties.

<PAGE>

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first above written.

MOLINA HEALTHCARE OF MICHIGAN, INC.        COMMUNTY CHOICE MICHIGAN, INC.

By: /s/  Roman T. Kulich                   By: /s/  Christine M. Baumgardner
   -------------------------------             --------------------------------

Title: President & CEO                     Title: President, Board of Directors
      ----------------------------               ------------------------------

<PAGE>

                                    EXHIBIT A

                             Coordination Agreement
                                     Between
                         Community Choice Michigan, Inc.
                                       And
                       Molina Healthcare of Michigan, Inc.

This Agreement is entered into this 30th day of April, 2003 by and between
Molina Healthcare of Michigan, Inc. (MOLINA) and Community Choice Michigan, Inc.
(COMMUNITY).

     WHEREAS, MOLINA and COMMUNITY desire to minimize disruption of the existing
patient/physician relationship for COMMUNITY assigned members upon COMMUNITY's
withdrawal from the Medicaid program; and

     WHEREAS, with the support of the Medical Services Administration of the
Michigan Department of Community Health and in order to minimize disruption of
the patient/physician relationship, COMMUNITY and MOLINA desire to effect a
transfer of COMMUNITY's Medicaid members to MOLINA; and

     WHEREAS, the Medical Services Administration office of the Michigan
Department of Community Health has defined a set of responsibilities for the
plan transferring the Medicaid members and a set of responsibilities for the
plan accepting the Medicaid members; and

     WHEREAS, COMMUNITY has agreed to transfer the Medicaid members that are
currently in the practices listed on Attachment A to MOLINA, subject to approval
by the Medical Services Administration of the Michigan Department of Community
Health and each Medicaid member's right of choice, effective July 1, 2003.

     NOW, THEREFORE, in consideration of the mutual promises and covenants set
forth herein, the adequacy, sufficiency and receipt of which are hereby
acknowledged, the Parties agree as follows:

COMMUNITY Responsibilities:
--------------------------

1.   COMMUNITY shall notify all Medicaid members affected by this transition.
     Mailings to Medicaid members will occur by May 12 , 2003.

2.   COMMUNITY shall notify physicians or their responsible organizations of
     this transition. This notification will occur by May 12 , 2003.

3.   COMMUNITY shall provide as of June 27, 2003 to MOLINA a listing of open
     authorizations on Medicaid members to be transferred to MOLINA. This
     listing will be supplied based upon information from the Medical Service
     Administration identifying Medicaid members who have enrolled with MOLINA.

4.   COMMUNITY will be financially responsible for an inpatient stay through the
     date of discharge for any Medicaid members that were admitted to an acute
     care setting prior to 12:00 a.m. on July 1, 2003. Upon discharge, MOLINA
     will assume financial responsibility for the Medicaid members.

5.   COMMUNITY shall provide the transition services listed on Attachment B.

6.   COMMUNITY agrees that it will keep confidential all information disclosed
     by MOLINA to COMMUNITY and will use such information only for the purposes
     described in this Agreement. COMMUNITY will use at least the same degree of
     care in maintaining the confidentiality of MOLINA's information as
     COMMUNITY uses in maintaining the confidentiality of its own information.

MOLINA Responsibilities:
-----------------------

<PAGE>

1.   MOLINA will assume financial responsibility for the provision of COMMUNITY
     authorized services for each Medicaid member transferred to MOLINA from
     COMMUNITY, effective July 1, 2003, except for Medicaid members who remain
     inpatients as noted in COMMUNITY's Responsibilities, item number 4.

2.   MOLINA will assure continuity of care for transferred Medicaid members by
     allowing patients to continue receiving previously arranged treatment until
     treatment is completed or the Medicaid member can be reasonably brought
     into the MOLINA network. MOLINA will be financially responsible for
     services authorized by COMMUNITY for all claims with dates of service from
     July 1, 2003, except as provided in COMMUNITY's Responsibilities, item
     number 4.

3.   MOLINA will assure that all primary care physicians to which Medicaid
     members are assigned are credentialed and contracted by MOLINA. In the
     event that primary care physician credentialing/contracting is not final as
     of the date of this Agreement, MOLINA will make out of network assignments
     to ensure that the Medicaid member can continue to see his or her primary
     care physician. Primary care physicians must be credentialed and contracted
     by MOLINA no later than ninety (90) days after July 1, 2003. As applicable,
     each party shall provide releases from providers authorizing COMMUNITY to
     share credentialing files with MOLINA as provided in attachment B.

4.   MOLINA will assume financial responsibility on July 1, 2003 for Medicaid
     members who are receiving treatment in a skilled nursing facility or
     rehabilitative facility.

5.   MOLINA will submit a revised provider file to Michigan Enrolls to add
     former COMMUNITY providers for Medicaid members by May 13, 2003.

6.   MOLINA agrees to abide by any administrative hearing decisions regarding
     Medicaid members transferred from COMMUNITY.

7.   MOLINA will indemnify and hold harmless COMMUNITY and all of its agents,
     directors, officers, employees and contracted providers, against any and
     all expenses, losses, liabilities and damages (including, without
     limitation, attorney fees, judgements, fines, and amounts paid in
     settlement) incurred in connection with any threatened, pending or
     completed action, suit or proceeding, whether civil, criminal,
     administrative, or investigative that directly or indirectly arises out of
     alleged wrongful use or disclosure by MOLINA or its agents, directors,
     officers, employees, or contracted providers of information regarding
     Medicaid members released to MOLINA by COMMUNITY pursuant to this
     Agreement.

8.   MOLINA agrees that it will keep confidential all information disclosed by
     COMMUNITY to MOLINA and will use such information only for the purposes
     described in this Agreement. MOLINA will use at least the same degree of
     care in maintaining the confidentiality of COMMUNITY's information as
     MOLINA uses in maintaining the confidentiality of its own information.

The parties acknowledge that the above-described transition is subject to
approval by the State of Michigan.

Community Choice                            Molina Healthcare of Michigan, Inc.
Michigan, Inc.

By: /s/  Christine M. Baumgardner           By: /s/  Roman T. Kulich
   ------------------------------              --------------------------------

Chairperson Board of Directors              President & Chief Executive Officer

Date: 4/30/03                               Date:  4/30/03
     ----------------------------                ------------------------------

<PAGE>

                                  Attachment B
                                  ------------
                      Molina Healthcare \ Community Choice
                      ------------------------------------
                               Transition Services

I    Membership Services:
     -------------------

     a.   Detailed eligibility list with PCP assignment: Molina to supply
          format;

     b.   Coordinate notification to members regarding change;

     c.   List of outstanding member grievances and appeals.

II   Medical Management:
     ------------------

     a.   List of outstanding prior authorizations and/or referrals that extend
          beyond the transition date;

     b.   List of members receiving care on an inpatient basis on the transition
          date;

     c.   List of members identified as pregnant and/or receiving prenatal care;

     d.   List of members in case management;

     e.   List of members in a Disease Management program (e.g. Asthma,
          diabetes, or State flagged as a Child with Special Healthcare Needs);

     f.   List of newborns delivered in the two previous months prior to
          transition.

III  Pharmacy:
     --------

     a.   One month of pharmacy claims data in NCPDP format;

     b.   List of outstanding prior authorizations (with weekly updates) that
          are approved beyond the transition date;

     c.   Copy of existing formulary and prior authorization requirements;

     d.   List of the top 50 high cost patients over the last quarter.

IV   Provider Network/Service Area:
     -----------------------------

     a.   Coordinate notification to providers regarding change;

     b.   List of zip codes for Medicaid;

     c.   List of outstanding provider grievances and appeals.

V    Information Services (based upon Molina's requested data elements):
     --------------------

     a. Data history including:

         i.   Member history (6 months)

        ii.   Claims/encounter history (6 months)

       iii.   Provider (6 months) including capitation reports iv. UM history
              (6 months)

VI   Credentialing:
     -------------

     a.   Credentialing FilesEXHIBIT 4.3

                                                              [Execution Copy]

------------------------------------------------------------------------------

                         REGISTRATION RIGHTS AGREEMENT

                                 by and among

                              AGERE SYSTEMS INC.

                                      and

                              U.S. TRUST COMPANY, N.A.,
              as investment manager of certain assets held by the
                        AGERE SYSTEMS INC. MASTER TRUST

                          Dated as of March 14, 2003

-----------------------------------------------------------------

<PAGE>

         This REGISTRATION RIGHTS AGREEMENT (the "Agreement") is made and
entered into as of March 14, 2003, by and between Agere Systems Inc., a
Delaware corporation, with offices located at 1110 American Parkway NE, Lehigh
Valley Central Campus, Allentown, PA 18109 (the "Company") and U.S. Trust
Company, N.A. (the "Investment Manager"), as investment manager of certain
assets held by the Agere Systems Inc. Master Trust (the "Master Trust").

                                R E C I T A L S

         WHEREAS, the Master Trust for the Agere Systems Inc. Represented
Pension Plan will receive a voluntary contribution from the Company of
18,750,000 shares of the Company's Class A common stock (the "Common Shares").

         WHEREAS, pursuant to an Investment Management Agreement dated as of
March 14, 2003, the Investment Committee of the Company has appointed
U.S. Trust Company, N.A. to act as an independent fiduciary with respect to
certain assets held by the Master Trust and to make all decisions regarding
such assets.

         WHEREAS, the Common Shares will be among the assets managed by the
Investment Manager.

         WHEREAS, in order to induce (a) the Investment Committee of the
Company to accept the contribution and (b) U.S. Trust Company, N.A. to act as
an independent fiduciary with respect to certain assets held by the Master
Trust and to make all decisions regarding such assets, the Company has agreed
to provide the registration rights set forth in this Agreement;

         NOW THEREFORE, in consideration of the mutual covenants and
undertakings contained herein, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, and subject to
and on the terms and conditions herein set forth, the parties hereto agree as
follows:

1.   Definitions

         As used in this Agreement, the following capitalized terms shall have
the following meanings:

         "Broker-Dealer" means any broker or dealer registered as such under
the Exchange Act.

         "Business Day" shall mean any day except Saturday, Sunday and any day
that is in New York City a legal holiday or a day on which banking
institutions or securities exchanges are authorized or required by law or
other governmental action to close.

         "Common Shares" shall have the meaning set forth in first recital
hereto.

         "Common Stock" shall mean all of the Company's authorized and issued
Class A common stock, par value $.01 per share, and Class B common stock, par
value $.01 per share, as may be outstanding from

<PAGE>

time to time and such other classes of common stock as may be authorized by
the Company's certificate of incorporation and issued.

         "Company" shall have the meaning set forth in the preamble hereto.

         "Demand Registration Notice" shall have the meaning set forth in
Section 2(a).

         "Demand Registration Rights Limit" shall have the meaning set forth
in Section 2(b) hereof.

         "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended, any rules and regulations promulgated thereunder, and any successor
thereto, all as the same shall be in effect from time to time.

         "Investment Manager" shall have the meaning set forth in the preamble
hereto.

         "Losses" shall have the meaning set forth in Section 7(a) hereof.

         "Master Trust" shall have the meaning set forth in the preamble
hereto.

         "NASD" shall mean the National Association of Securities Dealers, Inc.

         "Opinion of Counsel" shall mean a written opinion of counsel, who may
be an employee of or counsel for the Company and who shall be reasonably
acceptable to the Investment Manager, acting on behalf of the Master Trust.

         "Person" shall mean an individual, firm, limited liability company or
partnership, joint venture, corporation, joint stock company, trust or
unincorporated organization, incorporated or unincorporated association,
government (or any department, agency or political subdivision thereof) or
other entity of any kind, and shall include any successor (by merger or
otherwise) of such entity.

         "Piggyback Registration" shall have the meaning set forth in Section
3(a) hereof.

         "Proposed Registration" shall have the meaning set forth in Section
3(a) hereof.

         "Prospectus" shall mean the prospectus included in any Registration
Statement, all amendments and supplements to such prospectus and all material
incorporated by reference in such prospectus.

         "Registration Expenses" shall have the meaning set forth in Section 6
hereof.

         "Registrable Securities" shall mean all or any portion of the Common
Shares and any securities that may be issued or distributed

                                      2
<PAGE>

or be issuable in respect thereof by way of stock dividend, stock split or
other distribution, merger, consolidation, exchange offer, recapitalization or
reclassification or similar transaction or exercise or conversion of any of
the foregoing; provided, however, any such security shall cease to be a
Registrable Security when:

                  (i) a Registration Statement with respect to the sale of
         such security shall have been declared effective under the Securities
         Act and such security shall have been disposed of in accordance with
         such Registration Statement,

                  (ii) the holding period for such security pursuant to Rule
         144(d) has elapsed with respect to the Master Trust and the
         Investment Manager, acting on behalf of the Master Trust, may sell
         such securities subject to Rule 144(e)(i), or

                  (iii) the Company has received an Opinion of Counsel or such
         other evidence reasonably satisfactory to each of the Company and the
         Investment Manager, acting on behalf of the Master Trust, that such
         security may otherwise be publicly resold without registration or
         qualification under the Securities Act.

         "Registration Statement" shall mean any registration statement of the
Company filed with, or to be filed with, the SEC under the rules and
regulations promulgated under the Securities Act that registers or may be used
to register Registrable Securities pursuant to the provisions of this
Agreement, amendments to such Registration Statement, including post-effective
amendments, and including the Prospectus contained therein, and any amendments
or supplements thereto, and all exhibits and all material incorporated or
deemed incorporated by reference in such Registration Statement or Prospectus.

         "Rule 144" means Rule 144 (or any successor provision), including any
amendments thereto, under the Securities Act, as the same may be in effect
from time to time.

         "Securities Act" shall mean the Securities Act of 1933, as amended,
and any rules and regulations promulgated thereunder, and any successor
thereto, all as the same may be in effect from time to time.

         "SEC" shall mean the Securities and Exchange Commission.

         "Shelf Registration Statement" means a Registration Statement on Form
S-3 (or any successor form or other appropriate form under the Securities Act)
for an offering to be made on a delayed or continuous basis pursuant to Rule
415 of the Securities Act (or any similar rule that may be adopted by the
SEC).

         "Suspension Period" shall have the meaning set forth in Section 2(f)
hereof.

         "Suspension Notice" shall have the meaning set forth in Section 2(f)
hereof.

                                      3
<PAGE>

         "Underwritten Offering" shall mean a registration in which securities
of the Company are sold to an underwriter on a firm commitment basis for
reoffering to the public.

2.       Demand Registrations

         (a) Notice. Subject to the provisions of the next paragraph, the
Investment Manager, acting on behalf of the Master Trust, may at any time make
a written request (a "Demand Registration Notice") to the Company for
registration with the SEC under and in accordance with the provisions of the
Securities Act of all or a part of its Registrable Securities. All requests
made pursuant to this paragraph will specify the aggregate number of
Registrable Securities to be registered and will also specify the intended
methods of disposition thereof, including whether the sale or transfer of
Registrable Securities shall be in the form of an Underwritten Offering.
Unless the Company delivers a Suspension Notice pursuant to Section 2(f)
hereof or no Registrable Securities remain outstanding, upon receipt of a
Demand Registration Notice:

                  (i) if no Shelf Registration Statement is on file with the
         SEC and currently effective, the Company shall file a Registration
         Statement relating to such Demand Registration Notice no later than
         fifteen Business Days (or such later date as the Corporation and the
         Investment Manager, acting on behalf of the Master Trust, may agree)
         after receipt of such Demand Registration Notice and use all
         reasonable efforts to cause such Registration Statement to be
         declared effective under the Securities Act, or

                  (ii) if a Shelf Registration Statement is on file with the
         SEC and currently effective, the Company shall within fifteen
         Business Days (or such later date as the Company and the Investment
         Manager, acting on behalf of the Master Trust, may agree) make any
         required amendment or supplement to the prospectus and/or any
         required post-effective amendment to the Shelf Registration Statement
         and use all reasonable efforts to cause any such post-effective
         amendment to be declared effective under the Securities Act.

         (b) Restrictions. The Master Trust will, in the aggregate, be
entitled to request the filing of five Registration Statements (the "Demand
Registration Rights Limit") with respect to which the Company will pay the
related Registration Expenses; provided, that, the Company will not be
obligated to register any Registrable Securities pursuant to this Section 2
unless the Demand Registration Notice requests that at least 25% of the then
outstanding Registrable Securities then held by the Master Trust be
registered. The Company shall not be required to effect more than two
registrations pursuant to this Section 2 in any calendar year.

         (c) Effectiveness. The Company shall be deemed to have effected a
Demand Registration if the applicable Registration Statement is declared
effective by the SEC and remains effective for not less than 30 days (or such
shorter period as will terminate when all Registrable Securities have been
sold or withdrawn).

                                      4
<PAGE>

         (d) Selection of Underwriters. If at any time or from time to time
the Investment Manager, acting on behalf of the Master Trust, desires to sell
Registrable Securities in an Underwritten Offering, the investment banker or
investment bankers and manager or managers that will administer the offering
will, after consultation with the Company, be selected by the Investment
Manager, acting on behalf of the Master Trust, provided that such investment
bankers and managers must be of nationally recognized standing and reasonably
satisfactory to the Company and provided, further, that the Company shall have
the right to select one co-managing underwriter reasonably acceptable to the
Investment Manager, acting on behalf of the Master Trust.

         (e) Periodic blackouts. In no event shall the Company be required to
file a Registration Statement or have such a Registration Statement declared
effective in the period beginning on the 15th day of the last month before the
end of any fiscal quarter and ending 24 hours following the filing with the
SEC of the Company's Form 10-Q (or Form 10-K, as applicable) with respect to
such fiscal quarter. If any time period provided for in Section 2(a) would
otherwise expire during the blackout period, then such time period shall be
extended so that it will expire at the end of the tenth Business Day following
the end of the blackout period set forth in this Section 2(e).

         (f) Delay in Filing; Suspension of Registration. In addition to the
periodic blackout periods set forth in Section 2(e) hereof, the Company may
suspend (i) its obligation to file a Registration Statement or (ii) the use of
the Prospectus, in each case for a period not to exceed 45 days in the
aggregate in any three-month period or 90 days in the aggregate in any
12-month period (the "Suspension Period") if the filing of a Registration
Statement or use of the Prospectus would be adverse to the Company as
determined by the Company in its sole reasonable judgment, including, without
limitation, because such filing or use would require (x) disclosure of
non-public information regarding the acquisition or divestiture of assets,
pending corporate developments or similar events, (y) the preparation of
additional financial statements not then available or (z) because of an
upcoming public filing with the SEC, upon giving prompt written notice (a
"Suspension Notice") to the Investment Manager, on behalf of the Master Trust,
which notice need not specify the nature of the event giving rise to such
suspension. In the event of such a suspension, the obligations of the Company
in respect of any Demand Registration Notice shall be suspended, and the
Investment Manager, acting on behalf of the Master Trust, agrees to suspend
use of the Prospectus in connection with a sale or offer to sell Registrable
Securities upon receipt of the Suspension Notice and further agrees to keep
confidential the fact that the Company has exercised its rights pursuant to
this Section 2(f) and any other information related to such exercise. The
Company shall immediately notify the Investment Manager, on behalf of the
Master Trust, upon the termination of any Suspension Period and amend or
supplement the Prospectus, if necessary, in accordance with Section 5(d)
hereof.

         (g) Demand Withdrawal. If the Investment Manager, acting on behalf of
the Master Trust, submits a Demand Registration Notice to the Company pursuant
to Section 2(a) hereof and later determines not

                                      5
<PAGE>

to sell or transfer any Registrable Securities in connection with such notice,
the Investment Manager, acting on behalf of the Master Trust, shall give
prompt notice to the Company that the Registration Statement requested is no
longer required and that the request is thereby withdrawn. Upon receipt of
such notice, the Company shall cease all efforts to effect the filing of the
Registration Statement and shall take all action necessary and reasonably
practicable to prevent the commencement of effectiveness of any Registration
Statement that it is preparing or has prepared in connection with such a
withdrawn request. Notwithstanding the withdrawal of the Master Trust's
request, the withdrawn Demand Registration Notice shall be deemed a
registration of such Registrable Securities for the purposes of the Demand
Registration Rights Limit.

         (h) Registration Statement Form. Registrations under this Section 2
shall be on such appropriate registration form of the SEC (i) as shall be
selected by the Company and as shall be reasonably acceptable to the
Investment Manager, acting on behalf of the Master Trust, and (ii) as shall
permit the disposition of the Registrable Securities in accordance with the
intended method or methods of disposition as specified by the Investment
Manager, acting on behalf of the Master Trust, in its related Demand
Registration Notice.

3.       Piggyback Registration Rights

         (a) Rights to Piggyback. Subject to the last sentence of this
paragraph, whenever the Company proposes to register any shares of Common
Stock (or securities convertible into or exchangeable or exercisable for
shares of the Common Stock) under the Securities Act (a "Proposed
Registration") and the registration form to be used may be used for the
registration of the Registrable Securities (a "Piggyback Registration"), the
Company will give written notice of such Proposed Registration as soon as
practicable to the Investment Manager, on behalf of the Master Trust, and
will, subject to Section 3(b) below, include in such Piggyback Registration
such Registrable Securities as the Company has received written request for
inclusion therein from the Investment Manager, acting on behalf of the Master
Trust, within 10 Business Days after receipt of the Company's notice.
Registrable Securities with respect to which such a request for Piggyback
Registration has been received will be registered by the Company and offered
to the public pursuant to this Section 3 on the same terms and subject to the
same conditions applicable to the Proposed Registration of shares of the
Common Stock to be sold by the Company or by Persons selling under such
Proposed Registration. The Master Trust will not be entitled to include
Registrable Securities pursuant to this paragraph 3(a) in any Registration
Statement (i) except as otherwise permitted by Section 2 hereof and (ii)
pertaining to the registration of any securities of the Company in connection
with mergers, acquisitions, exchange offers, subscription offers, dividend
reinvestment plans or stock options, (iii) a registration on Form S-4 or S-8
or any successor to such forms, (iv) a registration of shares of the Common
Stock solely relating to an offering and sale to employees or directors of the
Company pursuant to any employee stock plan or other employee benefit plan
arrangement or (v) pursuant to any shelf registration under Rule 415 of the
Securities Act. If at any time after giving written notice of its intention to
register any securities and prior

                                      6
<PAGE>

to the effective date of the related registration statement, the Company shall
determine for any reason not to register or to delay registration of such
shares of Common Stock, the Company may, at its election, give written notice
of such determination to the Investment Manager, on behalf of the Master
Trust, and, (x) in the case of a determination not to register, shall be
relieved of its obligation to register any Registrable Securities in
connection with such registration, and (y) in the case of a determination to
delay registering, shall be permitted to delay registering any Registrable
Securities for the same period as the delay in registering such other
securities.

         (b) Priority on Piggyback Registrations. If the managing underwriter
or underwriters advise the Company in writing, in the case of an Underwritten
Offering, or the Company reasonably believes, in the case of a Piggyback
Registration that is not being underwritten, that in its or their opinion, the
number of securities proposed to be registered exceeds the number that can be
sold in such offering without being likely to have a significant adverse
effect on the price, timing or distribution of the shares of Common Stock
offered thereby or the market for the Common Stock, the Company will include
in such Piggyback Registration the number of Common Shares that, in the
opinion of such underwriter or underwriters, can be sold as follows: (i)
first, 100% of the shares of Common Stock that the Company and any other
Person (other than the Master Trust) exercising a contractual right to demand
registration proposes to sell, (ii) second, and only if all of the Common
Stock referred to in clause (i) have been included, the Registrable Securities
requested to be included in such registration by the Investment Manager,
acting on behalf of the Master Trust, and (iii) third, and only if all of the
Common Stock referred to in clauses (i) and (ii) have been included, other
shares of Common Shares requested to be included in such registration.

         (c) Selection of Underwriters. If any Piggyback Registration is an
Underwritten Offering, the Investment Manager, acting on behalf of the Master
Trust, shall be consulted regarding (but shall not have control over) the
selection of a managing underwriter or underwriters to administer the
offering.

         (d) Withdrawal from a Piggyback Registration. The Investment Manager,
acting on behalf of the Master Trust, shall be permitted to withdraw all or a
part of the Registrable Securities requested to be registered in a Piggyback
Registration at any time; provided, however, that the Company shall be
entitled to reimbursement from the Master Trust for any SEC registration fees
incurred by the Company in connection with the registration of such
Registrable Securities to the extent permitted by law.

4.       Black-Out Periods

         (a) Restrictions on Sale by the Master Trust. In the event of a
registration under the Securities Act (except in the case of a registration on
Form S-8 or any successor form thereto) or an offering under a Shelf
Registration Statement of the Company's equity securities or securities
convertible into, exchangeable or exercisable for the Company's equity
securities, the Investment

                                      7
<PAGE>

Manager, acting on behalf of the Master Trust, agrees, if requested by the
Company or any managing underwriter in an Underwritten Offering and upon at
least two days' notice, not to effect any public sale or distribution of
Common Shares, including a sale pursuant to Rule 144 under the Securities Act
(except as part of such registration), during such period as is specified by
the Company or the managing underwriters in writing to the Investment Manager,
on behalf of the Master Trust; provided, however, that such period may not
exceed 97 days and may begin no earlier than seven days before the date
reasonably expected by the Company or such managing underwriters to be the
date of the related Prospectus or Prospectus supplement, as the case may be.

         (b) Restrictions on Sale by the Company. In the event of a
registration of Registrable Securities pursuant to Section 2 hereof the
Company agrees, if requested in writing by the Investment Manager, acting on
behalf of the Master Trust, or any managing underwriter and upon at least two
days' notice, not to effect any public sale or distribution, including any
sale pursuant to Rule 144 under the Securities Act, of any shares of Common
Stock of Company or any securities convertible into, exchangeable or
exercisable for shares of the Company's Common Stock during the period
specified by the Investment Manager, acting on behalf of the Master Trust, or
such managing underwriter in such notice; provided, however, that such period
may not exceed 97 days and may begin no earlier than seven days before the
date reasonably expected by the Investment Manager, acting on behalf of the
Master Trust, or such managing underwriter to be the date of the related
Prospectus or Prospectus supplement, as the case may be. Notwithstanding the
foregoing, the Company may effect a public sale or distribution of securities
of the type described above and during the periods described above if the same
is made (i) pursuant to a registration statement on Form S-4 or S-8 or any
successor form to such forms or (ii) as part of any registration of securities
for offering and sale to employees or directors of the Company pursuant to any
employee stock plan or other employee benefit plan.

5.       Registration Procedures

         In connection with the Company's obligation to file Registration
Statements pursuant to Sections 2 and 3 hereof, the Company shall use all
reasonable efforts to effect such registration to permit the sale of the
related Registrable Securities in accordance with the intended method or
methods of disposition thereof, and in connection therewith the Company shall:

                  (a) before filing a Registration Statement or Prospectus or
         any amendments or supplements thereto (excluding amendments caused by
         the filing of a report under the Exchange Act), furnish to the
         Investment Manager, on behalf of the Master Trust, and the
         underwriters, if any, copies of all such documents proposed to be
         filed, and to use all reasonable efforts to reflect in each such
         document, when so filed with the SEC, such comments as the Investment
         Manager, acting on behalf of the Master Trust, may reasonably and
         promptly propose, unless, in the Opinion of Counsel, statements
         therein are as required by applicable law;

                                      8
<PAGE>

                  (b) Subject to Section 2(c) and (d) hereof, the Company
         shall ensure that (i) any Registration Statement, any amendment
         thereto, any Prospectus forming a part thereof and any amendment or
         supplement thereto comply in all material respects with the
         Securities Act; (ii) any such Registration Statement and any
         amendment thereto does not, when it becomes effective, contain an
         untrue statement of a material fact or omit to state a material fact
         required to be stated therein or necessary to make the statements
         therein not misleading and (iii) any Prospectus forming a part of any
         such Registration Statement, and any amendment or supplement to such
         Prospectus, does not include an untrue statement of a material fact
         or omit to state a material fact necessary in order to make the
         statements therein, in light of the circumstances under which they
         were made, not misleading; provided, that the Company makes no
         representation with respect to information included therein in
         reliance upon and in conformity with information furnished to the
         Company in writing by such underwriter or the Investment Manager,
         acting on behalf of the Master Trust.

                  (c) notify in writing the Investment Manager, on behalf of
         the Master Trust, and the managing underwriters, if any, as promptly
         as reasonably practicable,

                           (1) when the Registration Statement or any
                  post-effective amendment thereto has become effective and
                  when a supplement to the Prospectus, if any, has been filed,

                           (2) of any request by the SEC following
                  effectiveness of a Registration Statement for amendments or
                  supplements to the Registration Statement or the Prospectus
                  or for additional information (other than a request relating
                  to a review of the Company's Exchange Act filings),

                           (3) of the issuance by the SEC of any stop order
                  suspending the effectiveness of the Registration Statement
                  or the initiation of any proceedings for that purpose,

                           (4) of the receipt by the Company of any
                  notification with respect to the suspension of the
                  qualification (or the exemption from qualification) of the
                  Registrable Securities included in any Registration
                  Statement for sale in any jurisdiction or the initiation or
                  threat of any proceeding for such purpose,

                           (5) of the happening of (but not the nature or
                  details concerning) any event or the existence of any state
                  of facts that requires the making of any changes in a
                  Registration Statement or the Prospectus included therein so
                  that, as of such date, such Registration Statement and
                  Prospectus, as the case may be, are not misleading and do
                  not contain an untrue statement of a material fact and do
                  not omit to state a material fact required to be stated
                  therein or necessary to make the

                                      9
<PAGE>

                  statements therein (in the case of the Prospectus, in light
                  of the circumstances under which they were made) not
                  misleading,

                           (6) of the determination by the Company that a
                  post-effective amendment to a Registration Statement
                  covering Registrable Securities would be appropriate,

                           (7) of the commencement or termination of any
                  Suspension Period pursuant to Section 2(f) hereof, and

                           (8) of the Company's suspension of the use of a
                  Prospectus relating to Registrable Securities as a result of
                  any of the events or circumstances described in paragraphs
                  (2) through (7) above, and of the termination of any such
                  suspension.

         The Investment Manager shall keep confidential the fact that the
Company has suspended the use of a Prospectus pursuant to this Section 5(c)and
any other information related to such suspension, including the occurrence of
any of the events or circumstances in paragraphs (2) through (7) above.

                  (d) upon the occurrence of any event described in Section
         5(c)(5) hereof, the Company shall promptly prepare and file with the
         SEC a post-effective amendment to any Registration Statement covering
         the Registrable Securities (and use all reasonable efforts to cause
         it to become effective as promptly as practicable) or an amendment or
         supplement to the related Prospectus or any document incorporated
         therein by reference or file a document which is incorporated or
         deemed to be incorporated by reference in such Registration Statement
         or Prospectus, as the case may be, so that, as thereafter delivered
         to purchasers of the Registrable Securities included therein, the
         Registration Statement and the Prospectus, in each case as then
         amended or supplemented, will not include an untrue statement of a
         material fact or omit to state any material fact required to be
         stated therein or necessary in order to make the statements therein
         (in the case of the Prospectus, in light of the circumstances under
         which they were made) not misleading and, in the case of a
         post-effective amendment, use all reasonable efforts to cause it to
         become effective as promptly as practicable; provided, however, that
         the Company's obligations under this Section 5(d) shall be suspended
         if the Company has suspended the use of the Prospectus in accordance
         with Section 2(f) hereof and given notice of such suspension to the
         Investment Manager, on behalf of the Master Trust, it being
         understood that the Company's obligations under this Section 5(d)
         shall be automatically reinstated at the end of such Suspension
         Period;

                  (e) make every reasonable effort to obtain the withdrawal of
         any order suspending the effectiveness of a Registration Statement
         covering Registrable Securities or the lifting of any suspension of
         the qualification (or exemption from qualification) of any of the
         Registrable Securities for

                                      10
<PAGE>

         offer or sale in any jurisdiction at the earliest possible moment;

                  (f) if reasonably requested by the Investment Manager,
         acting on behalf of the Master Trust, or the managing underwriter or
         underwriters, if any, use all reasonable efforts to promptly
         incorporate in a Prospectus supplement or post-effective amendment to
         a Registration Statement covering Registrable Securities such
         information provided in writing to the Company as the managing
         underwriters, if any, and the Investment Manager, acting on behalf of
         the Master Trust, agree should be included therein relating to the
         sale of the Registrable Securities, including, without limitation,
         information with respect to the number of Registrable Securities
         being sold to such underwriters, the purchase price being paid
         therefor by such underwriters and with respect to any other terms of
         the Underwritten Offering of the Registrable Securities to be sold in
         such offering; and make all required filings of such Prospectus
         supplement or post-effective amendment reasonably promptly after
         being notified of the matters to be incorporated in such Prospectus
         supplement or post-effective amendment; provided, however, that the
         Company shall not be required to take any action under this Section
         5(f) that is not, in the Opinion of Counsel, in compliance with
         applicable law;

                  (g) deliver to the Investment Manager, on behalf of the
         Master Trust, and the underwriters, if any, without charge, as many
         copies of the Prospectus (including each preliminary prospectus, if
         any) and any amendments or supplements thereto as such Persons may
         reasonably request; subject to Sections 2(f), 4(a) and 5(c), the
         Company consents to the use of the Prospectus or any amendment or
         supplement thereto by the Investment Manager, acting on behalf of the
         Master Trust, and each of the underwriters, if any, in connection
         with the offering and sale of the Registrable Securities covered by
         such Prospectus or amendment or supplement thereto;

                  (h) use all reasonable efforts to register or qualify for
         offer and sale (or obtain an exemption from registration or
         qualification) or assist the Master Trust in obtaining such a
         registration, qualification or exemption of Registrable Securities
         registered pursuant to a Registration Statement, and maintain such
         registration, qualification or exemption for so long as required,
         under the securities or blue sky laws of such jurisdictions of or
         within the United States of America as the Investment Manager, acting
         on behalf of the Master Trust, or any managing underwriter reasonably
         requests in writing and do any and all other acts or things necessary
         or advisable to enable the disposition of such Registrable Securities
         in such jurisdictions pursuant to the applicable Registration
         Statement; provided that the Company will not be required to qualify
         generally to do business or as a dealer in securities in any
         jurisdiction where it is not then so qualified, take any action which
         would subject it to general service of process in any such
         jurisdiction where it is not then so subject, or take any action
         which would subject it to taxation in any

                                      11
<PAGE>

         jurisdiction where it is not then so subject (other than taxes
         relating to the Registrable Securities);

                  (i) consistent with the terms of the Registrable Securities,
         cooperate with the Investment Manager, acting on behalf of the Master
         Trust, and the managing underwriters, if any, to facilitate the
         timely preparation and delivery of certificates representing
         Registrable Securities to be sold pursuant to a Registration
         Statement free of any restrictive legends and registered in such
         names as the Investment Manager, acting on behalf of the Master
         Trust, or any managing underwriters may request at least two Business
         Days prior to the settlement of sales of Registrable Securities
         pursuant to such Registration Statement;

                  (j) subject to the exceptions contained in the proviso of
         Section 5(h), use its reasonable efforts to cause the Registrable
         Securities covered by a Registration Statement to be registered with
         or approved by such other governmental agencies, authorities or
         self-regulatory organizations of or within the United States of
         America as may be necessary to enable the Master Trust or the
         underwriters, if any, to consummate the disposition of such
         Registrable Securities as contemplated by the applicable Registration
         Statement; without limitation to the foregoing, the Company shall
         cooperate with the Investment Manager, acting on behalf of the Master
         Trust, and the underwriters, if any, in connection with any filings
         required to be made with the NASD in connection with the offering
         under a Registration Statement (including, without limitation, such
         as may be required by the NASD Rule 2710 or 2720 by the Investment
         Manager, acting on behalf of the Master Trust, or such underwriters
         in that regard);

                  (k) use all reasonable efforts to cause the Registrable
         Securities registered pursuant to a Registration Statement to be
         listed on the New York Stock Exchange (or, if the Company's Common
         Stock is not then listed on the New York Stock Exchange, the
         principal securities exchange or quotation system on which such
         Common Stock is then listed) no later than the date such Registration
         Statement is declared effective and, in connection therewith, to make
         such filings as may be required under the Exchange Act and to have
         such filings declared effective as and when required thereunder;

                  (l) enter into such agreements (including an underwriting
         agreement) and take all such other appropriate actions in connection
         therewith consistent with the Company's past practice and as may be
         reasonably requested by the Investment Manager, acting on behalf of
         the Master Trust, and the underwriters, if any, in order to expedite
         or facilitate the disposition of those Registrable Securities covered
         by a Registration Statement and in connection therewith:

                           (1) make such representations and warranties to the
                  Investment Manager, Master Trust and the underwriters, if
                  any, in form, substance and scope as are customarily made by
                  issuers to underwriters in

                                      12
<PAGE>

                  Underwritten Offerings and consistent with the Company's
                  past practice;

                           (2) obtain opinions of counsel to the Company and
                  updates thereof (which counsel and opinions in form, scope
                  and substance shall be reasonably satisfactory to the
                  managing underwriters, if any, and the Investment Manager,
                  acting on behalf of the Master Trust) addressed to each of
                  the Investment Manager, Master Trust and the underwriters,
                  if any, covering: (i) in the case of an Underwritten
                  Offering, the matters customarily covered in opinions
                  requested in Underwritten Offerings consistent with the
                  Company's past practice and (ii) in the case of offerings
                  not involving an underwriter, the matters addressed by Rule
                  10b-5 of the Exchange Act and stating that the Registration
                  Statement complies, as to form, with the requirements of the
                  Securities Act;

                           (3) obtain "cold comfort" letters and updates
                  thereof from the Company's current and former independent
                  certified public accountants (and, if necessary, any other
                  independent certified public accountants of any subsidiary
                  of the Company or of any business acquired by the Company
                  for which financial statements and financial data are, or
                  are required to be, included in the Registration Statement)
                  addressed to the Investment Manager, Master Trust and the
                  underwriters, if any, and in customary form and covering
                  matters of the type customarily covered in "cold comfort"
                  letters in connection with Underwritten Offerings and
                  consistent with the Company's past practice (provided the
                  Investment Manager, acting on behalf of the Master Trust,
                  and the underwriters, if any, furnish the accountants, prior
                  to the date such "cold comfort" letter is required to be
                  delivered, with such representations as the accountants
                  customarily require in similar situations);

                           (4) the Company shall deliver such documents and
                  certificates as may be reasonably requested by the
                  Investment Manager, acting on behalf of the Master Trust,
                  and the managing underwriters, if any, to evidence
                  compliance with clause (1) above and with any customary
                  conditions contained in the underwriting agreement or other
                  agreement entered into by the Company and consistent with
                  the Company's past practice; and

                       (5) if an underwriting agreement is entered into, the
                  same shall set forth in full indemnification and
                  contribution provisions and procedures that are no less
                  favorable than those of Section 7 hereof;

The actions set forth in (1) through (4) shall be done at each closing under
such underwriting or similar agreement and to the extent required thereunder;

                  (m) make available for inspection during normal business
         hours by a representative of any underwriter participating in

                                      13
<PAGE>

         any disposition pursuant to a Registration Statement covering
         Registrable Securities, and any attorney or accountant retained by
         such underwriter, all pertinent financial and other records,
         pertinent corporate documents and properties of the Company and its
         subsidiaries as is customary for due diligence examinations in
         connection with public offerings, and cause the Company's officers,
         directors and employees to supply all relevant information reasonably
         requested by any such representative, underwriter, attorney or
         accountant in connection with the Registration Statement; provided,
         however, that any information that is provided by the Company shall
         be kept confidential by the Investment Manager or any such
         underwriter, attorney or accountant, unless disclosure thereof is
         made in connection with a court, administrative or regulatory
         proceeding or required by law, or such information has become
         available to the public generally through the Company or through a
         third party without an accompanying obligation of confidentiality;
         and

                  (n) otherwise use its reasonable best efforts to comply with
         all applicable law and rules and regulations of the SEC and make
         generally available to its security holders as soon as practicable
         but in any event not later than 18 months after (i) the effective
         date of the applicable Registration Statement, (ii) the effective
         date (as defined in Rule 158(c) under the Securities Act) of each
         post-effective amendment to any Registration Statement covering
         Registrable Securities and (iii) the date of each filing by the
         Company of an Annual Report on Form 10-K with the SEC that is
         incorporated by reference or deemed to be incorporated by reference
         in the Registration Statement, an earnings statement satisfying the
         provisions of Section 11(a) of the Securities Act and Rule 158
         promulgated by the SEC thereunder.

                  (o) In the event that any Broker-Dealer shall underwrite any
         Registrable Securities or participate as a member of an underwriting
         syndicate or selling group or "assist in the distribution" (within
         the meaning of the NASD Rules) thereof, whether as a holder of such
         Registrable Securities or as an underwriter, a placement or sales
         agent or a broker or dealer in respect thereof, or otherwise, the
         Company shall assist such Broker-Dealer in complying with the NASD
         Rules, including, without limitation, by, if the NASD Rules shall so
         require:

                     (i) engaging a "qualified independent underwriter" (as
         defined in the NASD Rules) to participate in the preparation of the
         Registration Statement, to exercise customary standards of due
         diligence with respect thereto and, if any portion of the offering
         contemplated by the Registration Statement is an Underwritten
         Offering or is made through a placement or sales agent, to recommend
         the price of such Registrable Securities;

                     (ii) indemnifying any such qualified independent
         underwriter to the extent of the indemnification and contribution
         provisions and procedures that are no less favorable than those of
         Section 7 hereof; and

                                      14
<PAGE>

                     (iii) providing such information to such Broker-Dealer as
         may be required in order for such Broker-Dealer to comply with the
         requirements of the NASD Rules.

         The Company may require the Investment Manager, acting on behalf of
the Master Trust, to furnish in writing to the Company such information
regarding itself, the Master Trust and the distribution of the Registrable
Securities as the Company may from time to time reasonably request and the
obligations of the Company to the Investment Manager and Master Trust
hereunder shall be expressly conditioned on the compliance of the Investment
Manager and Master Trust with such request.

         The Investment Manager, acting on behalf of the Master Trust, agrees
that, upon receipt of any notice pursuant to Section 5(c)(8) from the Company,
the Investment Manager, acting on behalf of the Master Trust, will forthwith
discontinue disposition of Registrable Securities until the Investment
Manager's receipt of the copies of the supplemented or amended Prospectus
contemplated by Section 5(d) hereof, or until it is advised in writing by the
Company that the use of the Prospectus may be resumed, and, if so directed by
the Company, the Investment Manager, acting on behalf of the Master Trust,
will deliver to the Company (at the Company's expense) all copies, other than
permanent file copies then in the Investment Manager's possession, of the
Prospectus covering such Registrable Securities current at the time of receipt
of such notice, provided, that, the foregoing shall not prevent the sale,
transfer or other disposition of Registrable Securities by the Master Trust,
in a transaction which is exempt from, or not subject to, the registration
requirements of the Securities Act, so long as the Master Trust does not and
is not required to deliver the applicable Prospectus or Registration Statement
in connection with such sale, transfer or other disposition, as the case may
be.

6.       Registration Expenses

         The Company shall bear all expenses incurred in connection with the
performance of its obligations under Sections 2 and 3 hereof and shall
reimburse the Investment Manager and the Master Trust for the reasonable fees
and disbursements of one firm or counsel designated by the Investment Manager
to act as counsel for the Investment Manager and the Master Trust in
connection therewith. Notwithstanding the provisions of this Section 6, the
Master Trust, to the extent permitted by applicable law, shall bear the
expense of any broker's commission, agency fee or underwriter's discount or
commission.

7.       Indemnification

            (a) Indemnification by the Company. The Company agrees to
indemnify and hold harmless each of the Master Trust and the Investment
Manager, the directors, officers, employees and agents thereof and each Person
who controls the Master Trust or the Investment Manager within the meaning of
either the Securities Act or the Exchange Act against any and all losses,
claims, damages or liabilities, joint or several, to which they or any of them
may

                                      15
<PAGE>

become subject under the Securities Act, the Exchange Act or other Federal or
state statutory law or regulation, at common law or otherwise (collectively,
"Losses"), insofar as such Losses (or actions in respect thereof) arise out of
or are based upon any untrue statement or alleged untrue statement of a
material fact contained in the Registration Statement under which such
Registrable Securities are to be registered under the Securities Act as
originally filed or in any amendment thereof, or in any preliminary or final
Prospectus contained therein, or in any amendment thereof or supplement
thereto (each such document, a "Registration Document"), or arise out of or
are based upon the omission or alleged omission to state in any Registration
Document a material fact required to be stated therein or necessary to make
the statements therein (in the case of a Prospectus, in light of the
circumstances under which they were made)not misleading, and agrees to
reimburse each such indemnified party, as incurred, for any legal or other
expenses reasonably incurred by them in connection with investigating or
defending any such loss, claim, damage, liability or action; provided,
however, that the (i) Company will not be liable in any such case to the
extent that any such loss, claim, damage or liability arises out of or is
based upon any such untrue statement or alleged untrue statement or omission
or alleged omission made therein in reliance upon and in conformity with
written information relating to the assets of the Master Trust controlled by
the Investment Manager or to the Investment Manager furnished to the Company
by or on behalf of Investment Manager specifically for inclusion therein and
(ii) with respect to any untrue statement or omission of material fact made in
any Preliminary Prospectus, the indemnity agreement contained in this Section
7(a) shall not inure to the benefit of either the Master Trust or the
Investment Manager, to the extent that any such loss, claim, damage or
liability of such Underwriter occurs under the circumstance where it shall be
determined by a court of competent jurisdiction by final and non-appealable
judgment that (w) the Company had previously furnished copies of the
Prospectus relating to the Registrable Securities to the Investment Manager,
on behalf of the Master Trust, (x) delivery of the Prospectus relating to the
Registrable Securities was required by the Act to be made to the Person
asserting any such loss, claim, damage or liability, (y) the untrue statement
or alleged untrue statement or omission or alleged omission of a material fact
contained in the preliminary Prospectus was corrected in the final Prospectus
relating to the Registrable Securities and (z) there was not sent or given to
such Person, at or prior to the written confirmation of the sale of such
securities to such Person, a copy of the final Prospectus relating to the
Registrable Securities; provided, however, that the Company shall not be
liable to either of the Master Trust or Investment Manager if the use of a
Registration Statement or the related Prospectus occurred during a period when
use of such Prospectus has been suspended pursuant to Section 2(f) or Section
5(c)(8) hereof, provided, in each case, that the Investment Manager, on behalf
of the Master Trust, received prior notice of such suspension.

            (b) Indemnification by the Master Trust. The Investment Manager
agrees, to the extent permitted by applicable law, to indemnify and hold
harmless the Company, each of its directors, each of its officers who signs
the Registration Statement, and each Person who controls the Company within
the meaning of either the

                                      16
<PAGE>

Securities Act or the Exchange Act, to the same extent as the foregoing
indemnity to each of the Master Trust and Investment Manager, but only with
reference to written information relating to the assets of the Master Trust
controlled by the Investment Manager or to the Investment Manager, as the case
may be, furnished to the Company by or on behalf of the Master Trust or
Investment Manager specifically for inclusion in the documents referred to in
the foregoing indemnities.

            (c) Notices of Claims, Etc. Promptly after receipt by an
indemnified party under this Section 7 of notice of the commencement of any
action, such indemnified party will, if a claim in respect thereof is to be
made against the indemnifying party under this Section 7, notify the
indemnifying party in writing of the commencement thereof; but the failure so
to notify the indemnifying party (i) will not relieve it from liability under
paragraph (a) or (b) above unless and to the extent it did not otherwise learn
of such action and such failure results in the forfeiture by the indemnifying
party of substantial rights and defenses and (ii) will not, in any event,
relieve the indemnifying party from any obligations to any indemnified party
other than the indemnification obligation provided in paragraph (a) or (b)
above. The indemnifying party shall be entitled to appoint counsel of the
indemnifying party's choice at the indemnifying party's expense to represent
the indemnified party in any action for which indemnification is sought (in
which case the indemnifying party shall not thereafter be responsible for the
fees and expenses of any separate counsel retained by the indemnified party or
parties except as set forth below); provided, however, that such counsel shall
be satisfactory to the indemnified party. Notwithstanding the indemnifying
party's election to appoint counsel to represent the indemnified party in an
action, the indemnified party shall have the right to employ separate counsel
(including local counsel), and the indemnifying party shall bear the
reasonable fees, costs and expenses of such separate counsel if (i) the use of
counsel chosen by the indemnifying party to represent the indemnified party
would present such counsel with a conflict of interest, (ii) the actual or
potential defendants in, or targets of, any such action include both the
indemnified party and the indemnifying party and the indemnified party shall
have reasonably concluded that there may be legal defenses available to it
and/or other indemnified parties which are different from or additional to
those available to the indemnifying party, (iii) the indemnifying party shall
not have employed counsel reasonably satisfactory to the indemnified party to
represent the indemnified party within a reasonable time after notice of the
institution of such action or (iv) the indemnifying party shall authorize the
indemnified party to employ separate counsel at the expense of the
indemnifying party. An indemnifying party will not, without the prior written
consent of the indemnified parties, which shall not be unreasonably withheld,
settle or compromise or consent to the entry of any judgment with respect to
any pending or threatened claim, action, suit or proceeding in respect of
which indemnification or contribution may be sought hereunder (whether or not
the indemnified parties are actual or potential parties to such claim or
action) unless such settlement, compromise or consent includes an
unconditional release of each indemnified party from all liability arising out
of such claim,

                                      17
<PAGE>

action, suit or proceeding. The indemnifying party or parties shall not be
liable under this Agreement with respect to any settlement made by any
indemnified party or parties without prior written consent, which consent
shall not be unreasonably withheld, by the indemnifying party or parties to
such settlement.

            (d) Contribution. In the event that the indemnity provided in
paragraph (a) or (b) of this Section 7 is unavailable to or insufficient to
hold harmless an indemnified party for any reason, each indemnifying party
agrees to contribute to the Losses (including legal or other expenses
reasonably incurred in connection with investigating or defending same) to
which such indemnified party may be subject in such proportion as is
appropriate to reflect the relative benefits received by the indemnifying
party on the one hand and by the indemnified party on the other hand. If the
allocation provided by the immediately preceding sentence is unavailable for
any reason, the indemnifying parties shall contribute in such proportion as is
appropriate to reflect not only such relative benefits but also the relative
fault of the indemnifying party on the one hand and of the indemnified party
on the other in connection with the statements or omissions which resulted in
such Losses as well as any other relevant equitable considerations. Relative
fault shall be determined by reference to, among other things, whether any
untrue or any alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information provided by
the indemnifying party on the one hand or the indemnified party on the other,
the intent of the parties and their relative knowledge, access to information
and opportunity to correct or prevent such untrue statement or omission. The
parties hereto agree that it would not be just and equitable if contribution
were determined by pro rata allocation or any other method of allocation which
does not take account of the equitable considerations referred to above.
Notwithstanding the provisions of this paragraph (d), no Person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any Person who was not
guilty of such fraudulent misrepresentation. For purposes of this Section 7,
each Person who controls either the Master Trust or the Investment Manager
within the meaning of either the Securities Act or the Exchange Act and each
director, officer, employee and agent of such Person shall have the same
rights to contribution as the Master Trust or Investment Manager, as the case
may be, and each Person who controls the Company within the meaning of either
the Securities Act or the Exchange Act, each officer of the Company who shall
have signed the Registration Statement covering the Registrable Securities and
each director of the Company shall have the same rights to contribution as the
Company, subject in each case to the applicable terms and conditions of this
paragraph (d).

8.       Miscellaneous

         (a) Remedies. The Master Trust, in addition to being entitled to
exercise all rights provided herein and granted by law, including recovery of
damages, will be entitled to specific performance of its rights under this
Agreement in accordance with the terms and conditions of this Agreement. The
Company agrees that

                                      18
<PAGE>

monetary damages would not be adequate compensation for any loss incurred by
reason of a breach by it of the provisions of this Agreement and that the
Master Trust may be irreparably harmed by such failure and hereby agrees to
waive the defense in any action for specific performance that a remedy at law
would be adequate.

         (b) No Inconsistent Agreements. The Company has not, as of the date
hereof, and will not on or after the date of this Agreement enter into any
agreement with respect to its securities which is inconsistent with the rights
granted to the Master Trust in this Agreement or otherwise conflicts with the
provisions hereof.

         (c) Amendments and Waivers. The provisions of this Agreement,
including the provisions of this sentence, may not be amended, qualified,
modified or supplemented, and waivers or consents to departures from the
provisions hereof may not be given unless each of the parties hereto has given
its written consent.

         (d) Notices. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand-delivery, first-class
mail, telecopier, or courier guaranteeing overnight delivery:

                  (i) if to the Investment Manager, initially at its address
         at 515 South Flower Street, Suite 2700, Los Angeles, CA 90071-2291,
         Attention: Mr. Charles Wert, Executive Vice President; and

                  (ii) if to the Company, initially at its address at 1110
         American Parkway NE, Lehigh Valley Central Campus, Allentown, PA
         18109, Attention: Corporate Secretary,

and thereafter at such other address, notice of which is given in accordance
with the provisions of this Section 11(e).

         All such notices and communications shall be deemed to have been duly
given: at the time delivered by hand, if personally delivered; five business
days after being deposited in the mail, postage prepaid, if mailed; when
receipt acknowledged, if telecopied; and on the next business day, if timely
delivered to a courier guaranteeing overnight delivery.

         (e) Successors and Assigns. This Agreement shall be binding upon,
shall inure to the benefit of and shall be enforceable by the respective
successors of the parties hereto and the directors, trustees (including,
without limitation, any successor trustee for the Master Trust), officers,
employees, agents and controlling Persons of the parties. Except for an
assignment to a successor trustee, none of the rights or obligations under
this Agreement shall be assigned by the Investment Manager or Master Trust
without the consent of the Company or by the Company without the consent of
the Investment Manager, acting on behalf of the Master Trust.

         (f) Counterparts. This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be

                                      19
<PAGE>

an original and all of which taken together shall constitute one and the same
agreement.

         (g) Headings. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

         (h) Governing Law; Consent to Jurisdiction.

                  (i) This Agreement shall be governed by and construed in
         accordance with the laws of the State of New York applicable to
         agreements made in and to be performed in said state.

                  (ii) To the fullest extent permitted by applicable law, each
         party hereto (i) agrees that any claim, action or proceeding by such
         party seeking any relief whatsoever arising out of, or in connection
         with, this Agreement or the transactions contemplated hereby shall be
         brought only in the United States District Court for the Southern
         District of New York and in any New York State court located in the
         Borough of Manhattan and not in any other State or Federal court in
         the United States of America or any court in any other country, (ii)
         agrees to submit to the exclusive jurisdiction of such courts located
         in the State of New York for purposes of all legal proceedings
         arising out of, or in connection with, this Agreement or the
         transactions contemplated hereby and (iii) irrevocably waives any
         objection which it may now or hereafter have to the laying of the
         venue of any such proceeding brought in such a court and any claim
         that any such proceeding brought in such a court has been brought in
         an inconvenient forum.

         (i) Severability. In the event that any one or more of the provisions
contained herein, or the application thereof in any circumstances, is held
invalid, illegal or unenforceable in any respect for any reason, the validity,
legality and enforceability of any such provision in every other respect and
of the remaining provisions hereof shall not be in any way impaired or
affected thereby, it being intended that all of the rights and privileges of
the parties hereto shall be enforceable to the fullest extent permitted by
law.

         (j) Entire Agreement. This Agreement is intended by the parties as a
final expression of their agreement and intended to be a complete and
exclusive statement of the agreement and understanding of the parties hereto
in respect of the subject matter contained herein. There are no restrictions,
promises, warranties or undertakings other than those set forth or referred to
herein with respect to the registration rights granted by the Company with
respect to the Registrable Securities. This Agreement supersedes all prior
agreements and understandings between the parties with respect to such subject
matter.

         (k) Termination. This Agreement and the obligations of the parties
hereunder except for any liabilities or obligations under Section 7 hereof,
shall terminate on the date upon which the Master Trust no longer holds any
Registrable Securities.

                                      20
<PAGE>

         IN WITNESS WHEREOF, the parties have executed this Agreement as of
the date first written above.

         AGERE SYSTEMS INC.

         By:/s/ Paul Bento
         Name: Paul Bento
         Title: Vice President

         U.S. TRUST COMPANY, N.A.,
         as investment manager of certain assets held by the
         Agere Systems Inc. Master Trust

         By:/s/ Norman P. Goldberg
         Name: Norman P. Goldberg
         Title: Managing Director

                                      21
<PAGE>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}]]