Document:

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                                                                    Exhibit 10.2

                            REORGANIZATION AGREEMENT
                            ------------------------

     This Reorganization Agreement is made and entered into as of August 25,
2000 (the "Agreement") by and among Arthur D. Little, Inc., a Massachusetts
corporation ("Parent"), and c-quential, Inc., a Delaware corporation ("Sub").

     WHEREAS, Parent has, as part of its global management and technology
consulting business, developed a niche practice that focuses on the
telecommunications, information technology, media and electronic (the "Time
Industries") industries (such practice, the "Sub Business");

     WHEREAS, the Board of Directors of Parent has determined that the interests
of Parent and its stockholders would be best served by separating its businesses
into two companies, one consisting of the Sub Business and the other consisting
of Parent's remaining businesses (the "Retained Business");

     WHEREAS, in furtherance of the foregoing, Parent wishes to transfer and
assign, and cause the members of its Group to transfer and assign, to Sub and
the members of the Sub Group substantially all of the assets and properties
relating to the Sub Business as specified in this Agreement in exchange for (i)
the assumption by Sub and the members of the Sub Group of certain liabilities
and obligations relating to the Sub Business as specified in this Agreement and
(ii) the issuance to ADLI, a wholly-owned subsidiary of Parent and the parent of
Sub, or a subsidiary thereof, of 499,950 shares of Sub's Class A Common Stock
and 499,950 shares of Sub's Class B Common Stock (together, the "Sub Shares");

     WHEREAS, Sub is willing to assume, and to cause its Group members to
assume, such liabilities and obligations and to issue the Sub Shares in
exchange for such assets and properties (the "Reorganization");

     WHEREAS, Sub has filed for an initial public offering ("IPO") of an amount
of its common stock pursuant to the registration statement (the "IPO
Registration Statement") on Form S-1 (File No. 333-36652) filed with the United
States Securities and Exchange Commission (the "Commission") pursuant to the
Securities Act of 1933, as amended, which IPO Registration Statement the parties
contemplate will become effective in or about September 2000 and which offering
will be consummated in accordance therewith shortly thereafter (the "IPO Closing
Date"); and

     WHEREAS, Parent and Sub have determined that it is necessary and desirable
to set forth the principal corporate transactions required to effect the
Reorganization and the other agreements that will govern certain other matters
in connection with the Reorganization.

     NOW, THEREFORE, in consideration of the foregoing and the other agreements
and covenants contained herein, and for other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the parties hereto
agree as follows:
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SECTION 1.  DEFINITIONS.
            -----------

     SECTION 1.1  GENERAL.  As used in this Agreement, capitalized terms defined
immediately after their use shall have the respective meanings thereby provided
and the following terms shall have the following meanings (such meanings to be
equally applicable to both the singular and plural forms of the terms defined):

     Action:  any action, claim, suit, arbitration, inquiry, subpoena, discovery
request, proceeding or investigation by or before any court or grand jury, any
governmental or other regulatory or administrative agency or commission or any
arbitration tribunal.

     ADLI:  Arthur D. Little International, Inc., a Delaware corporation.

     Affiliate:  with respect to any Person, a Person that, directly or
indirectly, through one or more intermediaries, controls, or is controlled by,
or is under the common control with, such specified Person; provided, however,
that Parent and Sub shall not be deemed to be Affiliates of each other for
purposes of this Agreement or any Ancillary Agreement.  A person shall be deemed
to control another Person if such first Person possesses, directly or
indirectly, the power to direct, or cause the direction of, the management and
policies of the second Person, whether through the ownership of voting
securities, by contract or otherwise.

     Ancillary Agreements:  the Conveyancing and Assumption Instruments, the
Corporate Services Agreement, the Use and Occupancy Agreement, the Intellectual
Property Agreement, the Registration Rights Agreement and the Tax Allocation
Agreement.

     Assumed Debt Obligations: shall mean the Foreign Bank Obligations and the
US Debt Obligations in the amounts set forth on Annex II hereto.

     Assumed Liabilities:  collectively, all of the Liabilities and other
obligations of Parent and the other members of the Parent Group listed on Annex
II hereto.

     Bids, Quotations and Proposals:  the bids, quotations or proposals which
have been submitted or made by the Sub Business, or by a member of the Parent
Group on behalf of the Sub Business, which are outstanding as of the Effective
Date.

     Books and Records: the books and records of Parent and the other members of
the Parent Group (or true and complete copies thereof), including all
computerized books and records owned by Parent or the other members of the
Parent Group, which relate principally to the Sub Business, including, without
limitation, all such books and records relating to Transferred Employees, the
purchase of materials, supplies and services, dealings with customers of the Sub
Business.

     Code:  the Internal Revenue Code of 1986, as amended.

     Commission: shall have the meaning set forth in the fifth WHEREAS clause of
this Agreement.

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     Contactica Purchase Agreements: collectively, the Stock Purchase Agreement
dated February 1, 1999 by and among ADLI, Paul Berriman, Alvin Botting and
Malcolm Way, and the Stock Purchase Agreement dated February 1, 1999 by and
among ADLI, Simon C. Fawthrop, Simon C. Turpin, Martin Malden and J. Gerald
MacNamee.

     Contributed Assets:  collectively, all of the assets and properties of
Parent and the other members of the Parent Group identified on Annex I hereto.

     Conveyancing and Assumption Instruments:  collectively, the various
agreements, asset transfer agreements, share exchange agreements, bills of sale,
assignments and assumption agreements, instruments and other documents to be
entered into in order to effect the transfer by Parent and the members of the
Parent Group of the Contributed Assets to Sub and the members of the Sub Group,
and the assumption by Sub and the members of the Sub Group of the Assumed
Liabilities, in the manner contemplated by this Agreement.

     Corporate Services Agreement:  the Corporate Services Agreement, in the
form of Exhibit 1 attached hereto, pursuant to which Parent and the other
members of the Parent Group will provide to Sub and the other members of the Sub
Group certain corporate services on the terms and conditions specified therein.

     Designated Industry: means the business of (A) providing such management,
technology and strategic consulting services as have been provided by the Sub
Business prior to and up to the date of this Agreement to such types of Persons
in the telecommunications, information technology, media and electronic
industries as have received such services from the Sub Business prior to and up
to the date of this Agreement, and (B) providing such financial modeling
services as have been provided by the Sub Business prior to and up to the date
of this Agreement to financial advisors and financial institutions with respect
to the telecommunications, information technology, media and electronic
industries.

     Debt Agreements: collectively, the U.S. Debt Agreements and the Foreign
Bank Agreement.

     Disclosing Party: shall have the meaning set forth in Section 8.9.2 hereof.

     Dispute: shall have the meaning set forth in Section 11.1 hereof.

     Effective Date: Unless otherwise provided in this Agreement, or in any
agreement to be executed in connection with this Agreement, the effective time
and date of each transfer of property, assumption of liability, license,
undertaking, or agreement in connection with the Reorganization shall be 1:00
a.m., Eastern Standard time, August 26, 2000 or such other date as may be fixed
by the Board of Directors of Parent.

     Exchange Act: the Securities and Exchange Act of 1934, as amended, and the
rules and regulations promulgated thereunder.

     Foreign Bank Agreements: shall mean the General Business Conditions and
Credit Confirmation Agreement by and between ADLI and Deutschebank A.G.

                                       3
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     Foreign Bank Obligations: shall mean all of the obligations of Parent and
ADLI under and in connection with the Foreign Bank Agreements to repay
indebtedness.

     Governmental Authority: any federal, state, local, foreign or international
court, government, department, commission, board, bureau, agency, official or
other regulatory, administrative or governmental authority.

     Group:  the members of the Parent Group or Sub Group, as applicable.

     Holdings:  c-quential holdings, Inc., a Delaware corporation.

     Indemnifiable Losses:  with respect to any claim by an Indemnified Party
for indemnification authorized pursuant to Section 6 hereof, any and all losses,
liabilities, claims, damages, obligations, payments, costs and expenses
(including, without limitation, the costs and expenses of any and all Actions,
demands, assessments, judgments, settlements and compromises relating thereto
and reasonable attorneys' fees and disbursements in connection therewith)
suffered by such Indemnified Party with respect to such claim.

     Indemnified Party:  any Person who is entitled to receive payment from an
Indemnifying Party pursuant to Section 6 hereof.

     Indemnifying Party:  any party who is required to pay any other Person
pursuant to Section 6 hereof.

     Indemnity Payment: the amount an Indemnifying Party is required to pay an
Indemnified Party pursuant to Section 6 hereof.

     Independent Director: with respect to Sub, shall mean a member of the Sub
Board of Directors who is not an employee or officer of Sub or an officer,
employee or director of Parent or a member of the Parent Group, and with respect
to Parent, shall mean a member of the Parent Board of Directors who is not an
employee or officer of Parent or a member of the Parent Group.

     Information:  means information, whether or not patentable or
copyrightable, in written, oral, electronic or other tangible or intangible
forms, stored in any medium, including studies, reports, records, books,
contracts, instruments, surveys, discoveries, ideas, concepts, know-how,
techniques, designs, specifications, drawings, blueprints, diagrams, models,
prototypes, samples, flow charts, data, computer data, disks, diskettes, tapes,
computer programs or other software, marketing plans, customer names,
communications by or to attorneys (including attorney-client privileged
communications), memos and other materials prepared by attorneys or under their
direction (including attorney work product), and other technical, financial,
employee or business information or data.

     Insurance Proceeds:  those monies received by an insured from an insurance
carrier or paid by an insurance carrier on behalf of the insured.

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     Intellectual Property Agreement:  the Intellectual Property Agreement, in
the form of Exhibit 2 attached hereto, pursuant to which Parent is contributing
to Sub the use of certain intellectual property.

     IPO:  shall have the meaning set forth in the fifth WHEREAS clause of this
Agreement.

     IPO Closing Date: shall have the meaning set forth in the fifth WHEREAS
clause of this Agreement.

     IPO Liabilities:  means any Liabilities relating to, arising out of or
resulting from any untrue statement or alleged untrue statement of a material
fact or omission or alleged omission to state a material fact required to be
stated therein or necessary to make the statements therein not misleading, with
respect to all information contained in the IPO Registration Statement or any
preliminary, final or supplemental prospectus forming a part of the IPO
Registration Statement.

     IPO Registration Statement:  shall have the meaning set forth in the sixth
WHEREAS clause.

     Liabilities:  any and all debts, liabilities and obligations, whether or
not accrued, contingent (known or unknown) or reflected on a balance sheet,
including without limitation those arising under any law, rule, regulation,
Action, order or consent decree of any governmental entity or any judgment of
any court of any kind or any award of any arbitrator of any kind, and those
arising under any contract, commitment or undertaking.

     Nasdaq:  shall have the meaning set forth in Section 5.1.3 hereof.

     Parent:  Arthur D. Little, Inc., a Massachusetts corporation.

     Parent Common Stock:  the common stock of Parent, par value $.01 per share.

     Parent Group:  Parent and each subsidiary and Affiliate of Parent,
exclusive of the Persons included in the Sub Group immediately after the
Effective Date.

     Parent Insurance Policies:  all policies and contracts of any kind pursuant
to which insurance carriers provide insurance coverage to Parent in respect of
claims or occurrences relating to, without limitation, property damage, business
interruption, transit, extended coverage, employee crime, general liability,
products liability, errors and omissions, automobile liability, employer's
liability and workers' compensation.

     Parent Stock Plans:  all plans maintained by Parent that permit employees
of Parent or Sub to purchase Parent Common Stock, other than plans qualified
under Section 401(a) of the Code and Parent Stock Option Plans.

     Parent Stock Option Plans:  all plans maintained by Parent that provide for
grants of options to purchase shares of Parent Common Stock to employees of
Parent and its affiliated persons.

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     Parent Stock Options:  options to acquire Parent Common Stock granted under
the Parent Stock Option Plans.

     Person:  any individual, partnership, corporation, limited liability
company, association, trust, joint venture, unincorporated organization or other
entity.

     Plan:  has the meaning set forth in Section 2.2 hereof.

     Privilege:  shall have the meaning set forth in Section 8.10.1 hereof.

     Privileged Information:  shall have the meaning set forth in Section 8.10.1
hereof.

     Receiving Party:  shall have the meaning set forth in Section 8.9.2 hereof.

     Registration Rights Agreement:  the Registration Rights Agreement, in the
form of Exhibit 3 attached hereto, pursuant to which Sub is granting to ADLI (or
another member of the Parent Group) the right to register shares of Sub Common
Stock on the terms and conditions specified therein.

     Reorganization: the transaction referred as such in the fourth WHEREAS
clause of this Agreement.

     Retained Business:  the business of Parent referred to as such in the
second WHEREAS clause of this Agreement.

     Retained Liabilities:  collectively, all of the Liabilities of the Parent
Group as of the Effective Date, other than the Assumed Liabilities, including,
without limitation, the deferred purchase price obligations under the Contactica
Purchase Agreements.

     Retained Receivables:  shall mean all of the receivables relating to the
Sub Business as of the Effective Date, including, without limitation, any
receivables which relate to any work-in-process performed by Parent or a member
of the Parent Group prior to the Effective Date, but excluding receivables
transferred to a Sub Group member in connection with a Subsidiary Transfer.

     Restricted Area:  means each country of the world in which Sub and the Sub
Group members are, collectively, as of the date of this Agreement or at any time
prior to the Termination Date, conducting any business activities.

     Securities Act:  the Securities Act of 1933, as amended, and the rules and
regulations promulgated thereunder.

     Sub:  c-quential, Inc., a Delaware corporation.

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     Sub Business:  means the management and technology consulting practice
historically operated by the Parent Group, known as the "TIME practice," which
focuses on the Time Industries.

     Sub Common Stock:  Collectively, the Class A common stock, par value $.01
per share,  and Class B common stock, par value $.01 per share, of Sub.

     Sub Employees:  shall have the meaning set forth in Section 9.2 hereof.

     Sub Group:  Sub, each subsidiary and Affiliate of Sub immediately after the
Effective Date and each Person that becomes a subsidiary or Affiliate of Sub
after the Effective Date.

     Sub Shares:  shall have the meaning set forth in the third WHEREAS clause
of this Agreement.

     Subsidiary Transfers:  the transfers by Parent and the members of the
Parent Group of shares of capital stock of its subsidiaries in [Argentina,
Portugal, Netherlands and Spain] as set forth in Annex III hereto.

     Tax Allocation Agreement:  the Tax Allocation Agreement, substantially in
the form of Exhibit 4 attached hereto.

     Termination Date:  shall have the meaning set forth in Section 8.11.

     Third Party Claims:  shall have the meaning set forth in Section 6.3.1
hereof.

     Time Industries:  shall have the meaning set forth in the First WHEREAS
clause of this Agreement.

     Transferred Employees:  the employees of Parent and the other members of
the Parent Group immediately prior to the Effective Date who commence work on
behalf of Sub and the other members of the Sub Group as of the Effective Date.

     US Debt Obligations: shall mean all of the obligations of  Parent and ADLI
under the US Debt Agreements to repay indebtedness.

     US Debt Agreements: shall mean (i) the Amended and Restated Credit
Agreement dated April 25, 2000 by and among Parent, ADLI, CitiBank, N.A. and the
Lenders identified therein, and all other agreements executed in connection
therewith, and (ii) the Amended and Restated Note Purchase Agreement dated April
25, 2000 by and among Parent and the Noteholders party thereto, and all other
agreements executed in connection therewith.

     Use and Occupancy Agreement:  the Use and Occupancy Agreement, in the form
of Exhibit 5 attached hereto, pursuant to which Parent and the other members of
the Parent Group will provide to Sub and the other members of the Sub Group use
and occupancy of certain properties as specified therein.

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SECTION 2.  REORGANIZATION AND RELATED TRANSACTIONS.
            ---------------------------------------

     SECTION 2.1  THE REORGANIZATION.

          SECTION 2.1.1  Subject to the terms and conditions of this Agreement
(including, without limitation, Section 3 below), as of the Effective Date,
Parent hereby assigns, transfers, conveys and delivers, and causes each member
of the Parent Group to deliver, to Sub or the applicable member of the Sub
Group, and Sub hereby accepts, and causes the applicable members of the Sub
Group to accept, from Parent and the applicable members of the Parent Group, all
right, title and interest in and to the Contributed Assets, and contributes and
enters into the Ancillary Agreements, in a transaction or transactions described
in Section 351 of the Code, all as specified in more detail in Annex III
attached hereto.  Without limiting the generality of the foregoing, Parent shall
first assign, transfer, convey and deliver to ADLI, and ADLI shall accept from
Parent, the Contributed Assets held by Parent, and immediately thereafter, ADLI
shall assign, transfer and deliver to Sub or another member of the Sub Group,
and Sub, on its behalf and on behalf of the members of the Sub Group, shall
accept from ADLI, the Contributed Assets then held by ADLI in each case in
accordance with a Conveyancing and Assumption Instrument satisfactory to the
parties.

          SECTION 2.1.2  Subject to Section 7.3 hereof, to the extent that any
such conveyances, assignments, transfers and deliveries shall not have been so
consummated on the Effective Date, Parent and Sub shall cooperate to effect such
consummation as promptly thereafter as shall be practicable, it nonetheless
being understood and agreed by Parent and Sub that neither shall be liable in
any manner to any Person who is not a party to this Agreement other than a
member of the Parent Group or the Sub Group for any failure of any of the
transfers contemplated by this Section 2 to be consummated on or subsequent to
the Effective Date.  Each party agrees to use best efforts to have the Sub
Business which is not so transferred to be run in the ordinary course of
business and consistent with the Plan and the terms of this Agreement.  Whether
or not all of the Contributed Assets or the Assumed Liabilities shall have been
legally transferred to Sub and the applicable member of the Sub Group as of the
Effective Date, (i) Parent and Sub agree that, as of the Effective Date, Sub and
the other members of the Sub Group shall have, and shall be deemed to have
acquired, complete and sole beneficial ownership over all of the Contributed
Assets, together with all of the rights, powers and privileges (except as
provided in Section 8.10 hereof) incident thereto, and (ii) shall be deemed to
have assumed in accordance with the terms of this Agreement all of the Assumed
Liabilities and all of the Parent Group's duties, obligations and
responsibilities incident thereto, in each case as if such assignment and
assumption in fact had occurred on the Effective Date.

     SECTION 2.2  SUBSIDIARIES.  Parent and Sub shall cause each of the members
of their respective Group and all foreign subsidiaries and divisions to execute
such Conveyancing and Assumption Instruments, local asset and share transfer
agreements, assignments, assumptions, novations and other documents as shall be
necessary to carry out the assignment and transfer of the Contributed Assets and
assumption of the Assumed Liabilities as more fully described in Annex III
hereto (the "Plan") to effect the purposes of this Agreement with respect to
their respective operations both inside and outside the United States.

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     SECTION 2.3  PARENT APPROVAL.  Parent shall cooperate with Sub in
effecting, and if so requested by Sub, Parent shall, as the sole stockholder of
ADLI, which is the principal stockholder of Sub, approve or ratify any actions
which are reasonably necessary or desirable to be taken by Sub to effectuate the
transactions contemplated by this Agreement in a manner consistent with the
terms of this Agreement, the Plan and the Ancillary Agreements including,
without limitation, (a) the election or appointment of directors and officers of
Sub to serve in such capacities following the Effective Date and (b) the
approval of appropriate plans, agreements and arrangements for Transferred
Employees and non-employee members of Sub's board of directors.

     SECTION 2.4  WORKING CAPITAL ADVANCES.  At the Effective Date, Parent
agrees to make certain funds available to Sub and the other members of the Sub
Group for general working capital purposes in connection with the
Reorganization, and thereafter until the IPO Closing Parent further agrees to
make available to Sub and the members of the Sub Group such other amounts as Sub
may reasonably request from time to time, which amounts shall be paid by Sub to
Parent on the IPO Closing Date.

SECTION 3.  ASSUMPTION AND RETENTION OF LIABILITIES; ISSUANCE OF SHARES.
            -----------------------------------------------------------

     SECTION 3.1  ASSUMED LIABILITIES.  Upon the terms and subject to the
conditions set forth in this Agreement and in addition to any other Liabilities
otherwise expressly assumed by Sub and the Sub Group pursuant to this Agreement,
the Ancillary Agreements or any other agreement contemplated by this Agreement,
Sub hereby agrees with Parent, and shall cause the members of the Sub Group
(with the except of any members of the Sub Group that are classified as foreign
corporations for U.S. tax purposes), to assume, pay, perform and discharge in
due course any and all Assumed Liabilities.  Without limiting the generality of
the foregoing, with respect to the Assumed Debt Obligations, on the Effective
Date, ADLI shall first assume from Parent the Assumed Debt Obligations, and
immediately thereafter, Sub shall assume from ADLI all of the Assumed Debt
Obligations, in each case in accordance with a Conveyancing and Assumption
Instrument satisfactory to the parties.

     SECTION 3.2  RETAINED LIABILITIES.  Upon the terms and subject to the
conditions set forth in this Agreement and in addition to any other liabilities
otherwise expressly retained by Parent pursuant to this Agreement, the Ancillary
Agreements or any other agreement contemplated by this Agreement, Parent hereby
agrees with Sub that Parent and the other members of the Parent Group shall pay,
perform and discharge in due course any and all Retained Liabilities.

     SECTION 3.3  ISSUANCE OF SHARES.  Upon the terms and subject to the
conditions set forth in this Agreement, Sub hereby issues to ADLI (or another
member of the Parent Group as described on Annex III), in consideration of the
Plan and the transactions contemplated by this Agreement, the Sub Shares.

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SECTION 4.  DOCUMENTS AND ITEMS TO BE DELIVERED ON THE EFFECTIVE DATE.
            ----------------------------------------------------------

     SECTION 4.1  DOCUMENTS TO BE DELIVERED BY PARENT.  On the Effective Date,
or such other date as agreed in connection with the consummation the Plan,
Parent shall contribute, transfer and deliver, or will cause the member of the
Parent Group to contribute, transfer and deliver, to Sub and the members of the
Sub Group all of the following items and agreements (collectively, together with
all agreements and documents contemplated by such agreements, the "Ancillary
Agreements"):

          SECTION 4.1.1  A duly executed Intellectual Property Agreement;

          SECTION 4.1.2  A duly executed Tax Allocation Agreement;

          SECTION 4.1.3  A duly executed Corporate Services Agreement;

          SECTION 4.1.4  A duly executed Use and Occupancy Agreement;

          SECTION 4.1.5  A duly executed Registration Rights Agreement;

          SECTION 4.1.6  Resignations of each person who is an officer or
director of Parent or a member of the Parent Group, immediately prior to the
Effective Date, and who will be employee, officer or director of Sub from and
after the Effective Date; and

          SECTION 4.1.7  Such other agreements, documents or instruments as
Parent reasonably believes are necessary or desirable in order to achieve the
purposes hereof.

     SECTION 4.2  DOCUMENTS TO BE DELIVERED BY SUB.  As of the Effective Date,
Sub will, and shall cause the members of the Sub Group to, deliver to Parent or
the applicable member of the Parent Group, all of the following:

          SECTION 4.2.1  In each case where Sub or a member of the Sub Group is
a party to any agreement or instrument referred to in Section 4.1, a duly
executed counterpart of such agreement or instrument;

          SECTION 4.2.2  A certificate or certificates representing the Sub
Shares; and,

          SECTION 4.2.3  Resignations of each person who is an officer or
director of Sub, immediately prior to the Effective Date, and who will be an
employee, officer or director of Parent from and after the Effective Date.

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SECTION 5.  INTENTIONALLY OMITTED.
            ---------------------
SECTION 6.  SURVIVAL, INDEMNIFICATION, CLAIMS AND OTHER MATTERS.
            ---------------------------------------------------

     SECTION 6.1  SURVIVAL OF AGREEMENTS.

          SECTION 6.1.1  All covenants and agreements of the parties in this
Agreement and the Ancillary Agreements shall survive the Effective Date;
provided, however, that the term of any Section hereof or Ancillary Agreement
which by its terms is limited to a finite period shall survive as set forth
herein or therein, as applicable.

          SECTION 6.1.2  Except as specifically provided herein, the provisions
of this Section 6 shall terminate and be of no further force and effect on the
third anniversary of the IPO Closing Date.

          Such termination shall in no way limit the obligations of Sub with
respect to the Assumed Liabilities or the obligations of Parent with respect to
the Retained Liabilities and related indemnification rights under this
Agreement, which shall survive indefinitely.

          SECTION 6.1.3  The obligations of Sub and Parent under Sections 6, 7
and 8 of this Agreement shall survive the sale or other transfer by either of
them of any assets or businesses or the assignment by either of them of any
Liabilities.  To the extent that Parent or a member of the Parent Group
transfers to another party (other than Sub or a member of the Sub Group) any of
the Retained Liabilities (except for such amounts of Retained Liabilities which
in any individual instance are not material), Parent shall cause such transferee
of such Retained Liabilities to assume specifically its obligations with respect
thereto under this Agreement and to fulfill its obligations related to such
Retained Liabilities.  To the extent Sub or a member of the Sub Group transfers
to another party any of the Assumed Liabilities (except for such amounts of
Assumed Liabilities which in any individual instance are not material), Sub
shall cause such transferee to assume specifically its obligations with respect
thereto under this Agreement and to fulfill its obligations related to such
Assumed Liabilities.  The failure of the transferee to fulfill its obligations
with respect to the Retained Liabilities or the Assumed Liabilities shall not
relieve Parent or Sub, or any member of their respective Group, as the case may
be, of its obligations hereunder with respect thereto.

     SECTION 6.2  INDEMNIFICATION.

          SECTION 6.2.1  Parent, on its behalf and on behalf of the other
members of the Parent Group, shall indemnify, defend and hold harmless Sub, each
member of the Sub Group and each of their respective directors, officers,
employees and agents from and against any and all Indemnifiable Losses incurred
by any of them arising out of or due to, directly or indirectly, (a) any Third
Party Claims in connection with any of the Retained Liabilities or Employee
Liabilities, (b) any claims, including Third Party Claims, in connection with
the operations of the Sub Business prior to the Effective Date, including,
without limitation, any claims with respect to Liabilities of the Persons
transferred by the Parent Group to the Sub Group in connection with the
Subsidiary Transfers and securities law matters (other than any IPO
Liabilities), (c) Third Party Claims that Parent, or another member of the
Parent Group, failed to perform or violated any provision of this Agreement
which is to be performed or complied with by Parent or such member of the Parent
Group, as applicable or (d) breaches of this Agreement or any of the Ancillary
Agreements by Parent or a member of the Parent Group.

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          SECTION 6.2.2  Sub, on its behalf and on behalf of the other members
of the Sub Group, shall indemnify, defend and hold harmless Parent, each other
member of the Parent Group, and each of their respective directors, officers,
employees and agents from and against any and all Indemnifiable Losses incurred
by any of them arising out of or due to, directly or indirectly, (a) any Third
Party Claims in connection with any of the Assumed Liabilities, (b) Third Party
Claims that Sub, or the other members of the Sub Group, failed to perform or
violated any provision of this Agreement which is to be performed or complied
with by Sub or the other members of the Sub Group, as applicable, (c) breaches
of this Agreement by Sub or the other members of the Sub Group, or (d) any IPO
Liabilities.

          SECTION 6.2.3  Amounts required to be paid pursuant to this Section 6
are hereinafter sometimes collectively called "Indemnity Payments" and are
individually called an "Indemnity Payment").  The amount by which any party (an
"Indemnifying Party") is required to pay to any other party (an "Indemnified
Party") pursuant to Section 6.2.1 or Section 6.2.2 shall be reduced (including
retroactively) by any Insurance Proceeds or other amounts actually recovered by
such Indemnified Party in reduction of the related Indemnifiable Loss.  If an
Indemnified Party shall have received an Indemnity Payment in respect of an
Indemnifiable Loss and shall subsequently actually receive Insurance Proceeds or
other amounts (such as judgment or settlement amounts) in respect of such
Indemnifiable Loss, then such Indemnified Party shall pay to such Indemnifying
Party a sum equal to the lesser of the amount of such Insurance Proceeds or
other amounts actually received or the net amount of Indemnity Payments actually
received previously.  The Indemnified Party agrees that the Indemnifying Party
shall be subrogated to such Indemnified Party under any insurance policy.

          SECTION 6.2.4  PARENT'S AND SUB'S RESPECTIVE OBLIGATIONS PURSUANT TO
SECTION 6.2.1(d) AND SECTION 6.2.2(c) SHALL, BE LIMITED TO DIRECT AND ACTUAL
DAMAGES, TO THE EXCLUSION OF INCIDENTAL, CONSEQUENTIAL OR SPECIAL DAMAGES.  THIS
SECTION 6.2.4 SHALL NOT APPLY TO (a) ANY FAILURE BY SUB OR THE SUB GROUP MEMBERS
TO ASSUME, PAY, PERFORM OR DISCHARGE ANY AND ALL ASSUMED LIABILITIES, (b) ANY
FAILURE BY PARENT OR THE PARENT GROUP MEMBERS TO PAY, PERFORM OR DISCHARGE ANY
AND ALL RETAINED LIABILITIES OR (c) ANY BREACH BY PARENT OR SUB, OR THE MEMBERS
OF THEIR RESPECTIVE GROUP, OF THEIR RESPECTIVE INDEMNITY OBLIGATIONS UNDER THIS
AGREEMENT, INCLUDING THE INDEMNITY OBLIGATIONS SET FORTH IN THIS SECTION 6.

          SECTION 6.2.5  Indemnification obligations contained elsewhere in this
Agreement shall be subject to the provisions of this Section 6.

                                       12
<PAGE>

     SECTION 6.3  PROCEDURE FOR INDEMNIFICATION OF THIRD PARTY CLAIMS.

          SECTION 6.3.1  If a party shall receive notice of any claim or Action
brought, asserted, commenced or pursued by any Person not a party to this
Agreement (herein referred to as a "Third Party Claim"), with respect to which
the other party is or may be obligated to make an Indemnity Payment, it shall
give such other party prompt written notice thereof (including any pleadings
relating thereto) after becoming aware of such Third Party Claim, specifying in
reasonable detail the nature of the Third Party Claim and the amount or
estimated amount thereof to the extent then feasible (which estimate shall not
be conclusive of the final amount of such claim); provided, however, that the
failure of a party to give notice as provided in this Section 6.3.1 shall not
relieve the other party of its indemnification obligations under this Section 6,
except to the extent that such other party is actually prejudiced by such
failure to give notice.

          SECTION 6.3.2  The Indemnifying Party may elect to defend or seek to
settle or compromise any Third Party claim as to which a claim for
indemnification hereunder has been asserted, at the Indemnifying Party's own
expense and by counsel selected by the Indemnifying Party and reasonably
acceptable to the Indemnified Party, by so notifying the Indemnified Party
within thirty (30) days after the Indemnified Party has given notice of the
Third Party Claim in accordance with Section 6.3.1 hereof (or such earlier time
as may be necessary for the Indemnified Party to submit a responsive pleading
required in connection with the Third Party Claim).  Unless the Indemnifying
Party fails to assume the defense or to seek to settle or compromise the Third
Party Claim in a timely manner, the Indemnifying Party shall not be liable to
the Indemnified Party for any legal or other expenses subsequently incurred by
the Indemnified Party in connection with the defense, settlement or compromise
of the Third Party Claim; provided, however, that if, in the reasonable judgment
of the Indemnified Party, based on the advice of counsel, a conflict of interest
between the Indemnified Party and the Indemnifying Party exists with respect to
the Third Party Claim, the Indemnified Party shall have the right to employ one
counsel selected by it and reasonably acceptable to the Indemnifying Party, and
in that event, the reasonable fees and expenses of such separate counsel shall
be paid by the Indemnifying Party.  Once the Indemnifying Party has assumed the
defense of any Third Party Claim, it must actively and diligently defend or seek
to settle or compromise the Third Party Claim until conclusion of the matter,
unless the Indemnified Party agrees to the Indemnifying Party's withdrawal.

          SECTION 6.3.3  If the Indemnifying Party responds to a notice of Third
Party Claim by denying its obligation to indemnify the person or entity claiming
a right of defense and indemnification under this Agreement, or if the
Indemnifying Party fails to defend in a timely manner, the Indemnified Party
shall be entitled to defend or seek to settle or compromise such Third Party
Claim by counsel selected by it.  In addition, if it is later determined,
through procedures referenced in Section 11 of this Agreement, or by agreement
of the parties, that the Indemnifying Party wrongly denied its indemnification
obligation with respect to, or failed to timely defend, such claim, then the
Indemnifying Party shall (a) reimburse the Indemnified Party for all costs and
expenses (other than salaries of officers and employees) reasonably incurred by
the Indemnified Party in connection with its defense, settlement or compromise
of the Third Party Claim and (b) be estopped from challenging a judgment, order,
settlement or compromise resolving the Third Party Claim entered into in good
faith by the Indemnified Party (if such

                                       13
<PAGE>

claim has been resolved prior to the conclusion of the proceeding between the
Indemnified Party and the Indemnifying Party). The Indemnifying Party, after
initially rejecting a claim for defense or indemnification by the Indemnified
Party, may, at any time prior to the resolution of the Third Party Claim, assume
the defense of, or seek to settle or compromise said claim, provided that (i)
the Indemnifying Party reimburses the Indemnified Party for all costs and
expenses (other than salaries of officers and employees) reasonably incurred by
the Indemnified Party in connection with the defense of such claim (including
costs incurred in the transition of the defense from the Indemnified Party to
the Indemnifying Party) and (ii) the assumption of the defense of the Third
Party Claim will not prejudice or cause harm to the Indemnified Party.

          SECTION 6.3.4  With respect to any Third Party Claim relating to any
matter subject to a claim for indemnification hereunder, no party shall enter
into any compromise or settlement or consent to the entry of any judgment which
(a) does not include as a term thereof the giving by the third party of a
release to the Indemnified Party of all further liability in respect of such
Third Party Claim or (b) imposes any obligation on the Indemnified Party without
said Indemnified Party's written consent (which consent shall not be
unreasonably withheld), except an obligation to pay money which the Indemnifying
Party has agreed to pay on behalf of the Indemnified Party.  In the event that
an Indemnified Party enters into any such compromise, settlement or consent
without the written consent of the Indemnifying Party (other than as
contemplated by Section 6.3.3 hereof), the entry of such compromise, settlement
or consent shall relieve the Indemnifying Party of its indemnification
obligation related to the Third Party Claim underlying such compromise,
settlement or consent.

          SECTION 6.3.5  Upon final judgment, determination, settlement or
compromise of any Third Party Claim, and unless otherwise agreed to by the
parties in writing, the Indemnifying Party shall pay promptly on behalf of the
Indemnified Party, or to the Indemnified Party in reimbursement of any amount
theretofore required to be paid by it, the amount so determined by final
judgment, determination, settlement or compromise.  Upon the payment in full by
the Indemnifying Party of such amount, the Indemnifying Party shall succeed to
the rights of such Indemnified Party to the extent not waived in settlement,
against the third party who made such Third Party Claim and any other Person who
may have been liable to the Indemnified Party with respect to the indemnified
matter.

          SECTION 6.3.6  If the Indemnifying Party elects to defend or to seek
to settle or compromise the Third Party Claim, the Indemnified Party shall make
available to the Indemnifying Party any personnel or any books, records or other
documents within its control or which it otherwise has the ability to make
available that are necessary or appropriate for such defense, settlement or
compromise, and shall otherwise cooperate in the defense, settlement or
compromise of the Third Party Claim; provided, however, that nothing in this
Section 6.3.6 shall be deemed to require the-waiver of any privilege, including
attorney-client privilege, or protection afforded by the attorney work product
doctrine.  In addition, regardless of the party actually defending a Third Party
Claim for which there is an indemnity obligation under Section 6.2 hereof, the
parties shall give each other regular status reports relating to such action
with detail sufficient to permit the other party to assert and protect its
rights and obligations under this Agreement.

                                       14
<PAGE>

          SECTION 6.3.7  The provisions of this Section 6.3 shall survive in
perpetuity and shall be the exclusive procedures for any Third Party Claims
subject to the provisions of Section 6.2.1 or 6.2.2 hereof.

     SECTION 6.4  OTHER CLAIMS.  Any claim on account of an Indemnifiable Loss
which does not result from a Third Party Claim shall be asserted by written
notice from the Indemnified Party to the Indemnifying Party.  The Indemnifying
Party shall have a period of sixty (60) days (or such shorter time period as may
be required by law as indicated by the Indemnified Party in the written notice)
within which to respond.  If the Indemnifying Party does not respond within such
sixty (60) day (or lesser) period, the Indemnifying Party shall be deemed to
have accepted responsibility to make payment and shall have no further right to
contest the validity of such claim.  If the Indemnifying Party does respond
within such sixty (60) day (or lesser) period and rejects such claim in whole or
in part, the Indemnified Party shall be free to pursue resolution of the matter
as provided in Section 11 hereof.

     SECTION 6.5  NO BENEFICIARIES.  Except to the extent expressly provided
otherwise in this Section 6, the indemnification provided for by this Section 6
shall not inure to the benefit of any third party or parties and shall not
relieve any insurer who would otherwise be obligated to pay any claim of the
responsibility with respect thereto or, solely by virtue of the indemnification
provisions hereof, provide any subrogation rights with respect thereto and each
party agrees to waive such rights against the other to the fullest extent
permitted.

     SECTION 6.6  NAMED PARTIES.  The parties hereto acknowledge that it may not
be feasible to substitute Sub for Parent as a named party in Actions, whether
domestic or foreign, constituting Assumed Liabilities.  In such event, Parent
shall remain as a named party, but, following the Effective Date, Sub shall
assume the defense of any such Action in accordance with the provisions of
Section 6.3 hereof and Parent and the other members of the Parent Group shall
cooperate with Sub as contemplated by Section 6.3 and Section 8 hereof.

     SECTION 6.7  ORDER OF PRECEDENCE.  Except as set forth in this following
sentences, the provisions of this Section 6 shall govern any dispute or matter
covered hereby that arises under any Ancillary Agreement or Conveyancing and
Assumption Instruments.  Notwithstanding the foregoing, this Section 6 shall not
operate to terminate or reduce any obligation or liability existing or arising
under the Tax Allocation Agreement.  To the extent that the provisions of this
Section 6 are inconsistent with the provisions of the Tax Allocation Agreement
with respect to the subject matters thereof, the provisions of the Tax
Allocation Agreement shall control.

SECTION 7.  CERTAIN ADDITIONAL MATTERS RELATED TO THE TRANSFER OF THE SUB
            -------------------------------------------------------------
            BUSINESS.
            --------

     SECTION 7.1  CONVEYANCING AND ASSUMPTION INSTRUMENTS.  In connection with
the transfer, conveyance, assignment and delivery of the Contributed Assets and
the assumption of the Assumed Liabilities contemplated by this Agreement, Parent
and Sub agree to execute, or cause to be executed by the appropriate member of
their Group, and to deliver to each other, as appropriate, the Conveyancing and
Assumption Instruments.

                                       15
<PAGE>

     SECTION 7.2  NO REPRESENTATIONS OR WARRANTIES.  Except as provided in
Section 2.1 hereof, Sub understands and agrees that Parent is not in this
Agreement or in any other agreement or document contemplated by this Agreement,
representing or warranting in any way (a) as to the value or freedom from
encumbrance of, or as to any other matter concerning, any Contributed Assets or
(b) as to the legal sufficiency to convey title to any Contributed Assets of the
execution, delivery and filing of the Conveyancing and Assumption Instruments,
IT BEING UNDERSTOOD THAT ALL SUCH ASSETS ARE BEING TRANSFERRED AS IS, WHERE IS
and without any representation or warranty of any kind, express or implied (the
implied warranties of merchantability and fitness for a particular purpose being
hereby specifically disclaimed), and that Sub shall bear the economic and legal
risk that any conveyance of such assets shall prove to be insufficient or that
Sub's title to any such assets shall be other than good and marketable and free
from encumbrances.  Similarly, Sub understands and agrees that Parent is not in
this Agreement or in any other agreement or document contemplated by this
Agreement representing or warranting in any way that the obtaining of the
consents or approvals, the execution and delivery of any amendatory agreements
and the making of the filings and applications contemplated by this Agreement
shall satisfy the provisions of all applicable laws or judgments, it being
understood and agreed that, subject to Section 7.3 hereof, Sub shall bear the
economic and legal risk that any necessary consents or approvals are not
obtained or that any requirements of law or judgments are not complied with.
The foregoing, however, shall not limit any responsibilities which Parent may
have to use its commercially reasonable efforts to effect transfers under the
other provisions of this Agreement.

     SECTION 7.3  FURTHER ASSURANCES; SUBSEQUENT TRANSFERS.

          SECTION 7.3.1  Each of Parent and Sub will execute and deliver, and
shall cause the members of their respective Group to execute and deliver, such
further instruments of conveyance, transfer and assignment and will take such
other actions as each of them may reasonably request of the other in order to
effectuate the purposes of this Agreement and to carry out the Plan and the
other terms hereof.  Without limiting the generality of the foregoing, at any
time and from time to time after the Effective Date, at the reasonable request
of Sub and without the payment of any further consideration, Parent will, and
will cause the appropriate member of the Parent Group to, execute and deliver to
Sub such other instruments of transfer, conveyance, assignment and confirmation
and take such action as Sub may reasonably deem necessary or desirable in order
to more effectively transfer, convey and assign to Sub or a Sub Group member and
to confirm Sub's (or such Sub Group member's) title to all of the Contributed
Assets, to put Sub in actual possession and operating control thereof and to
permit Sub to exercise all rights with respect thereto (including, without
limitation, rights under contracts and other arrangements as to which the
consent of any third party to the transfer thereof shall not have previously
been obtained) and Sub will execute and deliver to Parent all instruments,
undertakings or other documents and take such other action as Parent may
reasonably deem necessary or desirable in order to have Sub and the other
members of the Sub Group fully assume and discharge the Assumed Liabilities and
relieve Parent and the members of the Parent Group of any liability or
obligations with respect thereto and evidence the same to third parties.
Notwithstanding the foregoing, Parent and Sub shall not be obligated, in
connection with the foregoing, to expend monies other than reasonable out-of-
pocket expenses and attorneys' fees.

                                       16
<PAGE>

          SECTION 7.3.2  Parent and Sub will use their best efforts to obtain
any consent, approval or amendment required to novate and/or assign all
agreements, leases, licenses and other rights of any nature whatsoever relating
to the Contributed Assets to Sub; provided, however, that Parent shall not be
obligated to pay any consideration therefor (except for filing fees and other
administrative charges) to the third party from whom such consents, approvals
and amendments are requested.  In the event and to the extent that Parent is
unable to obtain any such required consent, approval or amendment and the third
party to such agreement, contract, license or lease objects to the assignment
thereof, (a) Parent, or the applicable Parent Group member, shall continue to be
bound thereby and (b) unless not permitted by law or the terms thereof, Sub
shall pay, perform and discharge fully all the obligations of Parent, or the
applicable Parent Group member, thereunder from and after the Effective Date and
indemnify Parent and any Parent Group member for all Indemnifiable Losses
arising out of such performance by Sub or a Sub Group member.  Parent shall,
without the payment of any further consideration, pay and remit to Sub promptly
any and all monies, rights and other considerations received in respect of such
performance.  Parent shall exercise or exploit its rights and options under all
such agreements, leases, licenses and other rights and commitments referred to
in this Section 7.3.2 only as reasonably directed by Sub and at Sub's expense.
If and when any such consent shall be obtained or such agreement, lease, license
or other right shall otherwise become assignable or able to be novated, Parent
shall promptly assign and novate all rights and obligations thereunder to Sub
without payment of further consideration and Sub shall, without the payment of
any further consideration, assume such rights and obligations.  To the extent
that the assignment of any contract or agreement (or their proceeds) pursuant to
this Section 7.3 is prohibited by law or not otherwise obtained, the assignment
provisions of this Section shall operate to create a subcontract with Sub and
the applicable Sub Group member to perform each relevant unassignable contract
at a subcontract price equal to one hundred percent (100%) of the monies, rights
and other considerations received by Parent with respect to the performance by
Sub and the applicable Sub Group member under such subcontract.

     SECTION 7.4  BIDS, QUOTATIONS AND PROPOSALS.  All Bids, Quotations and
Proposals included in the Contributed Assets shall be transferred to the Sub
Group to the extent permitted by law.  Parent and Sub shall work together and
use their best efforts to preserve such Bids, Quotations and Proposals and
facilitate the award of contracts pursuant thereto consistent with applicable
laws and regulations.  Any contracts awarded pursuant to an outstanding Bid,
Quotation or Proposal shall be considered an agreement and treated in the same
manner as provided for in the last two sentences of Section 7.3.2 hereof.

     SECTION 7.5  CERTAIN INTERCOMPANY ARRANGEMENTS.  Following the Effective
Date, the parties agree to discuss in good faith the provision of any services
and products to be provided by the other, but which inadvertently were not the
subject of an Ancillary Agreement or other written agreement.  Nothing in this
Section 7.5, however, shall require or authorize Parent or Sub to provide and
charge each other for any services other than on the terms and conditions
specified in this Agreement, the Corporate Services Agreement or the other
Ancillary Agreements.

                                       17
<PAGE>

     SECTION 7.6  DEBT AGREEMENTS.  Parent shall not, and shall cause ADLI and
the other members of the Parent Group not to, take any action or omit to take
any action that would cause or result in an event of default under the Debt
Agreements.  Parent shall promptly notify Sub of any notice of default under the
Debt Agreements, and agrees to use its best efforts to promptly cure such event
of default and cooperate with Sub in furtherance of the foregoing.

     SECTION 7.7  COLLECTION OF RETAINED RECEIVABLES.  Sub shall, as agent for
Parent, have the sole and exclusive right to collect the Retained Receivables in
accordance with Parent's normal collection processes and procedures.  So long as
the Retained Receivables are the obligation of Sub, neither Parent nor its
agents shall make any solicitation for collection purposes nor institute
litigation for the collection of any amounts due thereunder, except for such
Retained Receivables which Sub has consented to Parent's collection thereof.
All payments received by Sub in respect of the Retained Receivables shall be for
Parent's account.  Sub shall remit to Parent within fifteen (15) days of the end
of each calendar month any and all amounts received by Sub in respect of the
Retained Receivables, together with a written report for such month specifying
the amounts paid and the Person from whom payment was made, as well as any other
supporting documentation reasonably requested by Parent. The payment by an
account debtor shall be applied to the Retained Receivable of such account
debtor in inverse order of aging, commencing with the oldest invoice, unless the
account debtor's payment specifically identifies the Retained Receivable for
which such payment is being made.  Notwithstanding the foregoing, nothing
contained in this Section 7.7 shall be construed to grant Parent any right with
respect to any receivables accrued in connection with Sub's operation of the Sub
Business on or after the Effective Date. To the extent that Parent has received,
prior to the Effective Date, payments from clients in respect of services to be
performed by Sub after the Effective Date, Parent shall retain such advance
payments, and, after the Effective Date Parent shall remit to Sub within fifteen
(15) days of the end of each calendar month any and all amounts from such
retained advance payments in respect of services performed by Sub during such
calendar month.

     SECTION 7.8  LEGEND ON SUB SHARES.  Parent, on behalf of ADLI (or such
other member of the Parent Group may hold the Sub Shares), acknowledges and
agrees that each certificate representing the Sub Shares will bear the following
legend or one substantially similar thereto:

          "The securities represented by this certificate have not been
registered under the Securities Act of 1933, as amended (the "Act"), and may not
be offered, sold, transferred, hypothecated or otherwise assigned except
pursuant to (1) a registration statement with respect to such securities which
is effective under the Act or (2) an available exemption from such registration
under the Act."

     SECTION 7.9  SUPPLIES AND DOCUMENTS.  Sub shall have the right to use
existing supplies and documents (including without limitation invoices, purchase
orders, forms, labels, shipping materials, catalogues, sales brochures,
operating manuals, instructional documents and similar materials, and
advertising material) which have imprinted thereon the name "Arthur D. Little"
or trademarks, logotypes or variations comprising the name "Arthur D. Little"
for a period not to exceed six (6) months following the IPO Closing Date;
provided, however, that Sub agrees (a) to use only such supplies and documents
existing in inventory as of the Effective Date, (b) to conspicuously state on
such supplies and documents when used that they are not documents of Sub and (c)
not to order or utilize in any manner any additional supplies and documents
containing the name "Arthur D. Little."  The foregoing shall be subject to and
shall not in any way modify the provisions of the Intellectual Property
Agreement.

                                       18
<PAGE>

SECTION 8.  GENERAL COVENANTS REGARDING INFORMATION, SERVICES, CONFIDENTIALITY,
            -------------------------------------------------------------------
            NON-COMPETITION AND VOTING.
            --------------------------

     SECTION 8.1  GENERALLY.  Each of Parent and Sub agrees to provide, or cause
the members of its Group to provide, to each other, at any time before or after
the Effective Date, as soon as reasonably practicable after written request
therefor, any Information in the possession or under the control of such party
that the requesting party reasonably needs (i) to comply with reporting,
disclosure, filing or other requirements imposed on the requesting party
(including under applicable securities laws) by a Government Authority having
jurisdiction over the requesting party, (ii) for use in any other judicial
regulatory, administrative or other proceeding or in order to satisfy audit,
accounting, claims, regulatory, litigation or other similar requirements, (iii)
to comply with its obligations under this Agreement or any Ancillary Agreement
or (iv) in connection with the ongoing businesses of Parent or Sub, as the case
may be; provided, however, that in the event that any party determines that any
such provision of Information could be commercially detrimental, violate any law
or agreement, or waive any attorney-client privilege, the parties shall take all
reasonable measures to permit the compliance with such obligations in a manner
that avoids any such harm or consequence.

     SECTION 8.2  INTERNAL ACCOUNTING CONTROLS; FINANCIAL INFORMATION.  After
the Effective Date, (i) each party shall maintain in effect at its own cost and
expense adequate systems and controls for its business to the extent necessary
to enable the other party to satisfy its reporting, accounting, audit and other
obligations, and (ii) each party shall provide, or cause its Group to provide,
to the other party (and the members of its Group) in such form as such
requesting party shall request, at no charge to the requesting party, all
financial and other data and information as the requesting party determines
necessary or advisable in order to prepare its financial statements and reports
or filings with any Governmental Authority.

     SECTION 8.3  OWNERSHIP OF INFORMATION.  Any Information owned by a party
that is provided to a requesting party pursuant to this Section 8 shall be
deemed to remain the property of the providing party.  Unless specifically set
forth herein, nothing contained in this Agreement shall be construed as granting
or conferring rights of license or otherwise in any such Information.

     SECTION 8.4  RECORD RETENTION.  To facilitate the possible exchange of
Information pursuant to this Section 8 and other provisions of this Agreement
after the Effective Date, each party agrees to use its reasonable commercial
efforts to retain all Information in its respective possession or control on the
Effective Date substantially in accordance with the policies of Parent as in
effect on the Effective Date.  However, except as set forth in the Tax
Allocation Agreement, at any time after the Effective Date, each party may amend
its respective record retention policies at such party's discretion; provided,
however, that if a party desires to effect the amendment within three (3) years
after the IPO Closing Date, the amending party must give thirty (30) days prior
written notice of such change in the policy to the other party to this
Agreement.

                                       19
<PAGE>

     SECTION 8.5  DESTRUCTION.  No party will destroy, or permit any member of
its Group to destroy, any Information that exists on the Effective Date (other
than Information that is permitted to be destroyed under the current record
retention policies of Parent and that falls under the categories listed in
Section 8.1) without first using its reasonable commercial efforts to notify the
other party of the proposed destruction and giving the other party the
opportunity to take possession of such Information prior to such destruction.

     SECTION 8.6  LIMITATION OF LIABILITY.  No party shall have any liability to
any other party in the event that any Information exchanged or provided pursuant
to this Section 8 is found to be inaccurate, in the absence of gross negligence
or willful misconduct by the party providing such Information.  No party shall
have any liability to any other party if any Information is destroyed or lost
after reasonable commercial efforts by such party to comply with the provisions
of Section 8.4.

     SECTION 8.7  OTHER AGREEMENTS PROVIDING FOR EXCHANGE OF INFORMATION.  The
rights and obligations granted under this Section 8 are subject to any specific
limitations, qualifications or additional provisions on the sharing, exchange or
confidential treatment of Information set forth in this Agreement and any
Ancillary Agreement.

     SECTION 8.8  PRODUCTION OF WITNESSES; RECORDS; COOPERATION.  After the
Effective Date, except in the case of a legal or other proceeding by one party
against another party (which shall be governed by such discovery rules as may be
applicable under Section 11 or otherwise), each party hereto shall use its
reasonable commercial efforts to make available to each other party, upon
written request, the former, current and future directors, officers, employees,
other personnel and agents of such party as witnesses and any books, records or
other documents within its control or which it otherwise has the ability to make
available, to the extent that any such person (giving consideration to business
demands of such directors, officers, employees, other personnel and agents) or
books, records or other documents may reasonably be required in connection with
Actions in which the requesting party may from time to time be involved,
regardless of whether such legal, administrative or other proceeding is a matter
with respect to which indemnification may be sought hereunder.  The requesting
party shall bear all costs and expenses in connection therewith.

     SECTION 8.9  CONFIDENTIALITY.

          SECTION 8.9.1  Each of Parent and Sub shall, and shall use its best
efforts to cause the members of its Group and each of their respective officers,
employees, agents, consultants, advisors and Affiliates to, hold, in strict
confidence and not disclose to another Person, except as provided herein or
unless compelled to disclose by judicial or administrative process or, in the
opinion of counsel (which may be in-house counsel), by other requirements of
law, confidential information concerning the other party.

          SECTION 8.9.2  For purposes of this Section 8.9, confidential
information about a particular party (referred to herein as the "Disclosing
Party") shall mean information known by the other party (referred to herein as
the "Receiving Party") on the Effective Date and reasonably understood by the
receiving party to be confidential and related to the disclosing party's
business interests, or disclosed confidentially by the disclosing party to the
receiving party after the Effective Date under the terms and for the purposes of
this Agreement or any of the Ancillary Agreements except for:  (a) information
which is or becomes generally available to the public

                                       20
<PAGE>

other than as a result of a disclosure by the Disclosing Party; (b) information
learned by the Receiving Party on a non-confidential basis for the first time
after the Effective Date, but prior to any disclosure by the Disclosing Party;
(c) information developed by the Receiving Party independent of any confidential
information of the Disclosing Party which is known by the receiving party on the
Date or disclosed by the Disclosing Party thereafter; and (d) information which
becomes available to the Receiving Party on a non-confidential basis from a
source other than the Disclosing Party if such source was not subject to any
prohibition against transmitting the information to the Receiving Party.

          SECTION 8.9.3  Each party shall protect confidential information of
the other party by using the same degree of care, but no less than a reasonable
degree of care, to prevent the unauthorized disclosure of the other party's
confidential information as the party uses to protect its own confidential
information of a like nature.

          SECTION 8.9.4  Each party shall use its best efforts to insure that
the members of its Group and all of its and their officers, employees, agents,
consultants, advisors and Affiliates agree to be bound by the foregoing
restrictions on use and disclosure of confidential information as a condition to
receiving such information; provided, that such party will be responsible for
any breach of such confidentiality provisions by any such person.

     SECTION 8.10  PRIVILEGED MATTERS.

          SECTION 8.10.1   Parent and Sub agree to maintain, preserve and assert
all privileges that either party may have, including, without limitation, any
privilege or protection arising under or relating to any attorney-client or
accountant-client relationship that existed prior to the Effective Date
("Privilege" or "Privileges").  Parent and Sub shall be entitled in perpetuity
to require the assertion or decide whether to consent to the waiver of any and
all Privileges which, in the case of Sub, relate to the Sub Business and, in the
case of Parent, relate to the Retained Business.  Parent and Sub shall each use
the same degree of care as it would with respect to itself so as not to waive-
any Privilege which could be asserted by the other party under applicable law,
without the prior written consent of the other party.  The rights and
obligations created by this Section 8.10 shall apply to all information as to
which, but for the Reorganization, Parent or Sub would have been entitled to
assert or did assert the protection of a Privilege ("Privileged Information"),
including, but not limited to, (a) all information generated prior to the
Effective Date but which, after the Reorganization, is in the possession of the
other party or its Group, (b) all communications subject to a Privilege
occurring prior to the Effective Date between counsel for Parent and any
individual who, at the time of the communication, was an employee of Parent,
regardless of whether such employee is or becomes an employee of Sub, and (c)
all information generated, received or arising after the Effective Date that
refers or relates to Privileged Information generated, received or arising prior
to the Effective Date.

          SECTION 8.10.2 Upon the receipt by either party of any subpoena,
discovery or other request which arguably calls for production or disclosure of
Privileged Information of the other party and whenever either party obtains
knowledge that any current or former employee of such party has received any
subpoena, discovery or other request which arguably calls of the production or
disclosure of Privileged Information of the other party, such party shall
promptly

                                       21
<PAGE>

notify the other party of the existence of the request and shall provide the
other party with a reasonable opportunity to review the information and to
assert any rights it may have under this Section 8.10 or otherwise to prevent
the production or disclosure of Privileged Information. Neither party will
produce or disclose any information covered by a Privilege of the other party
under this Section 8.10 unless (a) the other party has provided its express
written consent to such production or disclosure or (b) a court of competent
jurisdiction has entered a final, non-appealable order finding that the
information is not entitled to protection under any applicable Privilege.

          SECTION 8.10.3   Parent's transfer of Information to Sub, and each
party's agreement to permit the other party to possess Privileged Information
occurring or generated prior to the Effective Date, are made in reliance on each
party's agreement, as set forth in this Section 8.10, to maintain the
confidentiality of Privileged Information and to maintain, preserve and assert
all applicable Privileges.  The access to information granted or permitted by
this Agreement, the agreement to provide witnesses and individuals pursuant to
Section 8.8 hereof and transfer of Privileged Information to Sub pursuant to
this Agreement shall not be deemed a waiver of any Privilege that has been or
may be asserted under this Section 8.10 or otherwise.  Nothing in this Agreement
shall operate to reduce, minimize or condition the rights granted to either
party in, or the obligations imposed upon either party by, this Section 8.10.

     SECTION 8.11  NON-COMPETITION AND NON-SOLICITATION.

          SECTION 8.11.1   Parent covenants and agrees that it will not, and it
will cause each member of the Parent Group not to, for a period beginning on the
Effective Date and ending on the earlier of (a) the third anniversary of the IPO
Closing Date and (b) the date on which the Parent Group no longer own shares of
Sub Common Stock representing at least forty percent (40%) of the total voting
power of Sub (in either case, the "Termination Date"), directly or indirectly,
anywhere in the Restricted Area (i) engage or participate in any activity in the
Designated Industry, (ii) invest in, make loans to or assist (whether as owner,
part-owner, shareholder, partner, member, consultant, or in any other capacity)
any Person whose activities, products or services are, in whole or in part, in
the Designated Industry (a "Competitive Enterprise") or (iii) employ directly or
indirectly, attempt to employ, recruit or otherwise solicit, induce or influence
any individual to leave an employment or service relationship with Sub or the
other members of the Sub Group. Notwithstanding the foregoing Parent and the
members of the Parent Group (i) may make passive investments in a Competitive
Enterprise, the shares of which are publicly traded, if the Parent Group's
aggregate investment in such Competitive Enterprise constitutes less than five
percent (5%) of the equity ownership of such Competitive Enterprise, (ii) may
engage in transactions and activities with Sub and the members of the Sub Group
as contemplated by the Ancillary Agreements, (iii) may own, directly or
indirectly up to one hundred percent (100%) of the capital stock of Sub, and
(iv) may acquire (by merger, asset purchase, joint venture or otherwise) another
Person, or a subsidiary, affiliate, operating division, practice or business
line or segment of such Person (the "Acquired Business"), which constitutes a
Competitive Enterprise (the "Competitive Business"); provided, however, that in
the case of this clause (iv) immediately following the closing of the
acquisition of such Acquired Business, Parent (X) offers to Sub the right to
purchase or acquire such Competitive Business and (Y) negotiates in good faith
with Sub to transfer or sell the Competitive Business to Sub on terms mutually
acceptable to Parent and the Independent Directors of Sub; provided, further,
that the Independent Directors of Sub may at any time deliver written notice
(the "Rejection Notice") to Parent indicating that Sub has no intention of
acquiring or negotiating the acquisition of the Competitive Business, and in
such event, Parent shall, within one year from the date of the Rejection Notice,
take such actions as are necessary to cause the Acquired Business, or any part
thereof, to cease being a Competitive Business.
                                       22
<PAGE>

     Without implied limitation, the foregoing covenant shall prohibit the
Parent Group from (i) hiring, attempting to hire or otherwise soliciting, for
itself or on behalf of any entity or person, any officer, director, consultant
or other employee of Sub or member of the Sub Group, and (ii) encouraging,
whether for itself or on behalf of any entity or person, any officer, director,
consultant or other employee to terminate his or her relationship or employment
with Sub or any member of the Sub Group.

          SECTION 8.11.2   Sub covenants and agrees that it will not, and it
will cause each member of the Sub Group not to, for a period beginning of the
Effective Date and ending on the Termination Date, directly or indirectly,
employ, attempt to employ, recruit or otherwise solicit, induce or influence any
individual to leave an employment or service relationship with Parent or the
other members of the Parent Group.

     SECTION 8.12  ELECTION OF SUB DIRECTORS.   For so long as the Parent Group
owns in the aggregate at least forty percent (40%) of the total voting power of
Sub, Parent, on behalf of the Parent Group, hereby covenants and agrees that
whenever there shall be submitted to the stockholders of Sub nominees to serve
as members of the Board of Directors of Sub, the Parent Group shall vote all of
such shares of the voting Sub Common Stock to elect individuals to the Board of
Directors of Sub such that at least a majority of the Board of Directors of Sub
do not consist of individuals who are directors, officers or employees of Parent
or a member of the Parent Group.

     SECTION 8.13  MAIL AND OTHER COMMUNICATIONS.  Each of Parent and Sub agrees
to forward or direct (as appropriate) to the other party any mail or other
communications intended for such other party which is received by it.

     SECTION 8.14   ORDER OF PRECEDENCE.  To the extent that the provisions of
this Section 8 are inconsistent with the provisions of the Tax Allocation
Agreement with respect to the subject matter thereof, the provisions of the Tax
Allocation Agreement shall control.

SECTION 9.  EMPLOYEE MATTERS AND BENEFITS.
            -----------------------------

     SECTION 9.1  EMPLOYMENT.  At the Effective Date, Sub, or the appropriate
Sub Group member, shall offer employment to each Transferred Employee at an
annual compensation rate no less than such Transferred Employee's current annual
compensation rate with Parent or the Parent Group member.  Following the
Reorganization, such compensation shall be subject to

                                       23
<PAGE>

Sub's normal review procedures with respect to compensation. Sub, or the
appropriate Sub Group member, shall continue the status of a Transferred
Employee on leave of absence or short or long term disability absence, and shall
recall, reinstate or terminate the employment of such Transferred Employee in
accordance with the leave of absence policy applicable to the Transferred
Employee that was in effect when the Transferred Employee's leave of absence
began. Anything contained in this Section 9.1 to the contrary notwithstanding,
neither Sub nor a Sub Group member shall be obligated to employ any person who
declines employment with Sub or a Sub Group member and such person shall not be
considered a Transferred Employee.

     SECTION 9.2  RETIREMENT PLANS.  As of the Effective Date, Sub may become a
participating employer in each of Parent's retirement plans with respect to its
employees and the employees of the members of the Sub Group (collectively, "Sub
Employees").  Sub, and each member of the Sub Group, may remain a participating
employer until the Parent Group ceases to own at least fifty percent (50%) in
the aggregate of Sub Common Stock.  Sub shall be solely responsible for
contributions required under such plans for the Sub Employees from and after the
Effective Date, and Parent shall be solely responsible for contributions for
Transferred Employees accrued prior to the Effective Date, including any
unfunded liability under any defined benefit plan.  Sub shall also be solely
responsible for its share of any administrative expenses under Parent's
retirement plans.  Parent shall remain solely responsible for any stock
repurchase obligation under its retirement plans with respect to any Sub
Employee.

     SECTION 9.3  WELFARE PLANS.  As of the Effective Date, Sub may become a
participating employer in each of Parent's welfare and fringe benefit plans and
programs with respect to the Sub Employees.  Sub, and each member of the Sub
Group, may remain a participating employer in each such plan or program until
Parent Group ceases to own at least fifty percent (50%) in the aggregate of Sub
Common Stock.  Sub shall be solely responsible for contributions, liabilities
and obligations under such plans and programs for the Sub Employees from and
after the Effective Date, and Parent shall be solely responsible for
contributions, liabilities and obligations under such plans and programs for
Transferred Employees accrued prior to the Effective Date.  Any Sub Employee who
retires from Sub while Sub is a participating employer of Parent's retiree
health plan and who meets the eligibility requirements for retiree health under
said plan may elect to remain in such plan through age 65, subject to payment of
all required premium payments.

     SECTION 9.4  OTHER LIABILITIES AND OBLIGATIONS.  As of the Effective Date,
to the extent required by applicable law, rule or regulation, Sub and the
applicable Sub Group members shall assume and be solely responsible for all
Liabilities whatsoever of Parent with respect to claims made by or with respect
to Transferred Employees relating to their employment by the Parent Group in
connection with the Sub Business, including, without limitation, accrued
holiday, vacation and other termination (including severance) benefits
(collectively, "Employee Liabilities").  In the absence of such law, rule or
regulation, all such Liabilities shall be treated as Retained Liabilities for
purposes of this  Agreement.  Parent shall be solely responsible for salaries,
wages and other incentive bonus compensation earned by Transferred Employees but
not paid before the Effective Date.  Without limiting the foregoing, nothing in
this Agreement or in the transactions contemplated hereby shall be construed as
giving any Transferred Employee any rights to termination benefits (including
severance) on account of the Reorganization.  Sub

                                       24
<PAGE>

shall, with respect to any participation of the Sub Employees, assist Parent in
the administration of claims and benefits under the relevant plan and cooperate
with Parent and its auditors and benefits administrators. In addition, the
parties agree that, to the extent permitted by applicable law, matters arising
out of or resulting from foreign plans and non-U.S.-related employment of
Transferred Employees be handled in a manner which is consistent with comparable
U.S. matters as set forth herein.

     SECTION 9.5  PRESERVATION OF RIGHTS TO AMEND OR TERMINATE PLANS.  No
provision of this Agreement, including, without limitation, the agreement of
Parent or Sub that it will make a contribution or payment to or under any plan
referred to herein for any period, shall be construed as a limitation on the
right of Parent or Sub to amend or terminate such plan which Parent or Sub would
otherwise have under the terms of such plan or otherwise.

     SECTION 9.6  REIMBURSEMENT.  Parent and Sub acknowledge that each may incur
costs and expenses (including, without limitation, contributions to plans and
the payment of insurance premiums) pursuant to any of the employee benefit,
welfare or compensation plans, programs or arrangements which are, as set forth
in this Agreement, the responsibility of the other party.  Accordingly, Parent
and Sub agree to reimburse each other, as soon as practicable but in any event
within thirty (30) days of receipt from the other of appropriate verification,
for all such costs and expenses, except to the extent that such reimbursement
would be duplicative of the obligations of the parties set forth in the
Corporate Services Agreement.

     SECTION 9.7  STOCK OPTION PLANS AND PARENT STOCK PLANS.

          SECTION 9.7.1  Parent shall cause the Parent Stock Option Plans and
Parent Stock Options to be interpreted so that employment of the Transferred
Employees by Sub and the other Sub Group members shall be treated as employment
with Parent for purposes of the Parent Stock Option Plans' provisions causing
outstanding Parent Stock Options to expire upon the termination of employment of
the Transferred Employees and for purposes of Parent Stock Options Plans'
provisions causing outstanding Parent Stock to be repurchased by Parent upon the
termination of employment of the Transferred Employees.  Sub agrees to promptly
notify Parent of the termination of employment for any reason of each
Transferred Employee who is a holder of Parent Stock Options or who participates
in Parent Stock Plans for Parent's use in administering the Parent Stock Option
Plans and Parent Stock Plans.

          SECTION 9.7.2  Any and all tax withholding and employment taxes
(including the paying over of such taxes to the government) and related
reporting required in connection with the exercise of a Parent Stock Option by
any Transferred Employee or in connection with the issuance of Parent Common
Stock under a Parent Stock Plan to any Transferred Employee shall be the
responsibility of Sub.  Parent shall not be required to deliver any shares of
Parent Common Stock to any Transferred Employee until it shall have received
satisfactory evidence that the Transferred Employee has remitted all required
tax withholding to Sub.  Sub shall hold Parent harmless against any employment
tax liabilities, including interest and penalties, asserted against Parent by
reason of any failure of Sub properly and timely to withhold and pay over, pay
or report any amounts described in this paragraph as being the responsibility of
Sub.  Parent and Sub agree to share relevant information and otherwise cooperate
with respect to tax matters

                                       25
<PAGE>

pertaining to Parent Stock Options or Parent Common Stock issued under Parent
Stock Plans, so that the employers' withholding, reporting and employment tax
payment obligations relating thereto are satisfied and any tax benefits or
liabilities associated therewith are properly allocated between Parent and Sub.
Parent shall remain solely responsible for any repurchase obligations under the
Parent Stock Plans and Parent Stock Option Plans; provided, however, that such
rights shall not arise until a Transferred Employee ceases to be employed by Sub
or a member of the Sub Group.

SECTION 10.  INSURANCE.
             ---------

     SECTION 10.1  GENERAL.  Parent shall keep in effect all policies under the
Parent Insurance Policies in effect as of the date hereof insuring the
Contributed Assets and operations of the Sub Business after the Effective Date
as set forth in the Corporate Services Agreement or any other Ancillary
Agreement, unless Sub shall have earlier obtained appropriate coverage and
notified Parent in writing to that effect.

SECTION 11.  DISPUTE RESOLUTION.
             ------------------

     SECTION 11.1   NEGOTIATION AND BINDING ARBITRATION.  In the event a
dispute, controversy or claim between Parent and Sub or any of their respective
Group members arises out of or relates to this Agreement, the Ancillary
Agreements (other than the Tax Allocation Agreement, which shall be governed by
the relevant provision of such agreement) or any other agreement entered into
pursuant hereto or thereto (collectively, a "Dispute"), Parent and Sub agree to
abide by the following procedures to resolve any such Dispute.

     SECTION 11.2   NEGOTIATION.  In the event of a Dispute, the claiming party
shall first give written notice to the other party, describing briefly the
nature of the Dispute and the remedies it is claiming.  Each party shall then
select two of its Independent Directors to meet, no later than  ten (10) days
after the receipt of such notice, and on such other occasions as determined by
such individuals to be necessary, to attempt in good faith to negotiate a
resolution of such Dispute.  If the four (4) individuals do not mutually resolve
the Dispute on behalf of the partners within thirty (30) days of receipt of such
notice, the Dispute shall then be resolved in accordance with certain Section
11.3 below.

     SECTION 11.3  DISPUTE RESOLUTION.  Any Dispute that is not resolved
pursuant to Section 11.2, shall be resolved solely and exclusively by binding
arbitration to be conducted before JAMS/Endispute, Inc. as its successor.  The
arbitration shall be held in Boston, Massachusetts before a single arbitrator
and shall be conducted in accordance with the rules and regulations promulgated
by JAMS/Endispute, Inc. unless specifically modified herein.

     The parties covenant and agree that the arbitration shall commence within
sixty (60) days of the date on which a written demand for arbitration is filed
by either Parent or Sub with JAMS/Endispute.  In connection with the arbitration
proceeding, the arbitrator shall have the power to order the production of
documents by each party and any third-party witnesses; however, the arbitrator
shall not have the power to order the taking of depositions, the answering of
interrogatories or the response to requests for admission.  In connection with
any arbitration,

                                       26
<PAGE>

each party shall provide to the other, no later than seven business days before
the date of the arbitration, the identity of all persons that may testify at the
arbitration and a copy of all documents that may be introduced at the
arbitration or considered or used by a party's witness or expert. The
arbitrator's decision and award shall be made and delivered within six (6)
months of the selection of the arbitrator and judgment on the award may be
entered by any court having competent jurisdiction. The arbitrator's decision
shall set forth a reasoned basis for any award of damages or finding of
liability. The arbitrator shall not have power to award damages in excess of
actual compensatory damages and shall not multiply actual damages or award
punitive damages or any other damages that are specifically excluded under this
Agreement, and each party hereby irrevocably waives any claim to such damages.

     The parties covenant and agree that they will participate in the
arbitration in good faith and that they will share equally its costs except as
otherwise provided herein.  This clause applies equally to requests for
temporary, preliminary or permanent injunctive relief, except that in the case
of temporary or preliminary injunctive relief any party may proceed in court
without prior arbitration for the limited purpose of avoiding immediate and
irreparable harm. The provisions of this Section 11.3 shall be enforceable in
any court of competent jurisdiction, and the parties shall bear their own costs
in the event of any proceeding to enforce this Agreement except as otherwise
provided herein.  The arbitrator may in his or her discretion assess costs and
expenses (including the reasonable legal fees and expenses of the prevailing
party) against any party to a proceeding.  Any party unsuccessfully refusing to
comply with an order of the arbitrators shall be liable for costs and expenses,
including attorneys' fees, incurred by the other party in enforcing the award.

     SECTION 11.4  CONSENT TO JURISDICTION.   Each of Parent and Sub irrevocably
and unconditionally consents to the exclusive jurisdiction of JAMS/Endispute,
Inc. to resolve all Disputes between Parent and Sub or any member of their
respective Group arising out of or relating to this Agreement, the Ancillary
Agreements or any other agreement entered into pursuant hereto or thereto, and
further consents to the jurisdiction of the courts of the Commonwealth of
Massachusetts for the purposes of enforcing the arbitration provisions of
Section 11.1 of this Agreement.  Each party further irrevocably waives any
objection to proceeding before JAMS/Endispute based upon lack of personal
jurisdiction or to the laying of venue and further irrevocably and
unconditionally waives and agrees not to make a claim in any court that
arbitration before JAMS/Endispute, Inc. has been brought in an inconvenient
forum.

     SECTION 12.  MISCELLANEOUS.
                  -------------

     SECTION 12.1  AMENDMENT AND WAIVER.  The provisions of this Agreement,
including, without limitation, this Section, may not be waived and this
Agreement shall not be amended or modified except in accordance with this
Section.  The provisions of this Agreement may be waived only by the written
consent of a majority of the Independent Directors of the party that is the
beneficiary of the particular provision being waived.  No failure or delay by
any party in exercising any right or remedy hereunder shall operate as a waiver
thereof, and a waiver of a particular right or remedy on one occasion shall not
be deemed a waiver of any other right or remedy or a waiver on any subsequent
occasion.  The provisions of this Agreement may be amended, modified or
supplemented only by the written consent of a majority of the Independent
Directors of each of the parties.

                                       27
<PAGE>

     SECTION 12.2  EXPENSES.  Except as otherwise provided in this Agreement,
any Ancillary Agreement or any other agreement being entered into by Parent and
Sub and their respective Group members pursuant to this Agreement, Sub shall pay
all investment banking, legal, accounting, printing, governmental filing,
listing, distribution agent and similar fees, costs and expenses incurred in
connection with the Reorganization, the IPO (whether or not payable as of the
Effective Date) and the transactions contemplated by this Agreement.  To the
extent any of the foregoing expenses have previously been paid or incurred by
Parent, Sub shall reimburse Parent for all such expenses, including the expenses
directly incurred by Parent in connection with the services Parent and its
employees and agents performed in furtherance of any of the foregoing.

     SECTION 12.3  NOTICES.  All notices, requests, demands and other
communications under this Agreement shall be in writing and shall be deemed to
have been duly given (a) on the date of service if served personally on the
party to whom notice is given, (b) on the day of transmission if sent via
facsimile transmission to the facsimile number given below, provided that
telephonic confirmation of receipt is obtained promptly after completion of the
transmission, (c) on the business day after delivery to a nationally recognized
overnight courier service or the Express Mail service maintained by the United
States Postal Service, provided receipt of delivery has been confirmed, or (d)
on the fifth day after mailing, provided receipt of delivery is confirmed, if
mailed to the party to whom notice is to be given, by first class mail,
registered or certified, postage prepaid, properly addressed and return receipt
requested, to the party as follows:

     If to Parent, at:  Arthur D. Little, Inc.
                        Acorn Park
                        Suite 2500
                        Cambridge, MA  02140
                        Facsimile:  (617) 498-5000
                        Attn: President

     with a copy to:    Arthur D. Little, Inc.
                        Acorn Park
                        Suite 2500
                        Cambridge, MA  02140
                        Facsimile:  (617) 498-5000
                        Attn: General Counsel

     If to Sub, at:     c-quential, Inc.
                        Seestrasse 185
                        CH-8800 Thalwil, Zurich
                        Attention: President
                        Facsimile No.:

                                       28
<PAGE>

     with a copy to:    Goodwin, Procter & Hoar  LLP
                        Exchange Place
                        Boston, MA  02109
                        Facsimile:  (617) 523-1231
                        Attn:  Stuart M. Cable, P.C.

     Either party may change its address for receiving notices by written notice
given to the other party in the manner provided above.

     SECTION 12.4  [INTENTIONALLY OMITTED]

     SECTION 12.5  SUCCESSORS AND ASSIGNS.  This Agreement shall inure to the
benefit of, and be binding upon and enforceable against the respective
successors and assigns of the parties hereto, provided that this Agreement may
not be assigned by either party without the prior written consent of the other
party, and any attempt to assign any rights or obligations hereunder without
such consent shall be void.

     SECTION 12.6  ENTIRE AGREEMENT, PARTIES IN INTEREST.  This Agreement
(including the schedules, annexes and exhibits hereto and the Ancillary
Agreements) comprises the entire agreement between the parties hereto as to the
subject matter hereof and supersedes all prior agreements and understandings
between them relating thereto and, except as provided in Section 6.2 hereof, is
not intended to confer upon any Person other than the parties hereto (including
the members of each party's Group and their respective successors and permitted
assigns) any rights or remedies hereunder.

     SECTION 12.7  SEVERABILITY.  If any term or provision of this Agreement or
the application thereof to any person or circumstance shall to any extent be
invalid or unenforceable, the remainder of this Agreement or the application of
such terms or provisions to persons or circumstances other than those as to
which it is invalid or unenforceable shall not be affected thereby and each term
and provision of this Agreement shall be valid and enforced to the fullest
extent permitted by law.

     SECTION 12.8  CAPTIONS.  Captions and headings are supplied herein for
convenience only and shall not be deemed a part of this Agreement for any
purpose.

     SECTION 12.9  ANNEXES, ETC.  The Annexes, Schedules and Exhibits shall be
construed with and as part of this Agreement to the same extent as if the same
had been set forth verbatim herein.

     SECTION 12.10  GOVERNING LAW.  This Agreement shall be governed by and
construed in accordance with the internal substantive laws of the Commonwealth
of Massachusetts, without giving effect to the principles of conflicts of laws
thereof.

                                       29
<PAGE>

     SECTION 12.11  COUNTERPARTS.  This Agreement may be executed in several
counterparts, and all counterparts so executed shall constitute one agreement,
binding upon the parties hereto, notwithstanding that the parties are not
signatory to the same counterpart.

                           [Signatures on next page]

                                       30
<PAGE>

     IN WITNESS WHEREOF, the parties have caused this Agreement to be duly
executed by their authorized representatives as an agreement under seal, all as
of the day and year first written above.

                              ARTHUR D. LITTLE, INC., a Massachusetts
                              corporation

                              By:   /s/ Mark A. Brodsky
                                    -------------------------------------
                              Name:  Mark A. Brodsky
                              Title: Exec. Vice President

                              C-QUENTIAL, INC., a Delaware corporation

                              By:   /s/ Lorenzo C. Lamadrid
                                    -------------------------------------
                              Name:  Lorenzo C. Lamadrid
                              Title: Director

                                       31
<PAGE>

                                    ANNEX I
                                    -------

                               CONTRIBUTED ASSETS
                               ------------------

     Contributed Assets: the following assets owned by Parent and the members of
the Parent Group relating principally to the Sub Business as of the Effective
Date, as follows:

     (a) all of Parent's right and interest in, to, under and relating to all
agreements, contracts and leases, whether written or oral, of Parent relating to
the Sub Business, including, without limitation, the Contactica Purchase
Agreements;

     (b) all of Parent's right and interest in, to and under all outstanding
Bids, Quotations and Proposals pertaining to the Sub Business to the extent that
such Bids, Quotations and Proposals can be transferred or assigned; all of
Parent's right and interest in, to and under all contracts and agreements
awarded to Parent before or after the Effective Date pertaining to the Sub
Business, as assignee if those contracts are assignable and assigned or
transferred by operation of law; or as a right to payment by Parent to Sub of a
subcontract price equal to the monies, rights and other considerations received
by Parent under contracts and agreements awarded to Parent before or after the
Effective Date pertaining to the Sub Business if assignment of those contracts
and/or agreements and/or the proceeds therefrom is prohibited by law or not
otherwise obtained;

     (c) all rights and interests of Parent in and with respect to the patents,
trademarks, copyrights, trade secrets, know-how and other intellectual property
concerning the Sub Business to the extent, but only to the extent, such rights
are being licensed to Sub pursuant to, and in accordance with, the Intellectual
Property Agreement;

     (d) all of the Books and Records (or copies thereof);

     (e) all permits and licenses held by Parent which are transferable and
which relate principally to the Sub Business;

     (f)  all intangible assets, other than intellectual property rights, of
Parent used in the Sub Business, including customer lists, marketing and other
data, and goodwill;

     (g)  all trucks, automobiles and other vehicles owned by Parent which are
used in the Sub Business and are identified on Appendix I attached hereto; and

     (h)  the shares of capital stock of the entities in connection with the
Subsidiary Transfers.

                                       32
<PAGE>

                                    ANNEX II
                                    --------

                              ASSUMED LIABILITIES
                              -------------------

     Assumed Liabilities:  all Liabilities and obligations relating to or
arising from the operation of the Sub Business (other than the Retained
Liabilities), whether before or after the Effective Date, including but not
limited to:

     (a) all Liabilities and obligations of Parent and the Parent Group members
pursuant to, under or relating to all agreements, contracts and leases, whether
written or oral, of Parent relating to the Sub Business and the Contributed
Assets (other than the liabilities in respect of the deferred purchase price
obligations under the Contactica Purchase Agreements);

     (b) all Liabilities under all outstanding Bids, Quotations and Proposals
pertaining to the Sub Business to the extent such Bids, Quotations and Proposals
can be transferred or assigned; and all contracts awarded to Parent before or
after the Effective Date pertaining to the Sub Business, as (i) an assignee if
those contracts are assignable and assigned or transferred by operation of law,
or (ii) subcontractor if assignment of those contracts and/or proceeds therefrom
is prohibited by law or not otherwise obtained;

     (c) all Liabilities and obligations to or with respect to Transferred
Employees not specifically retained by Parent pursuant to the Agreement,
including, without limitation, withholding, payroll and employment taxes
pursuant to Section 9 of the Agreement;

     (d) the Liabilities and obligations being assumed by or agreed to be
performed by Sub pursuant to any other agreement being entered into in
connection with the Agreement, including, without limitation, the Ancillary
Agreements; and

(e)  $40,00,000 of aggregate principal amount of U.S. Debt Obligations (in
proportionate amounts among such U.S. Debt Agreements).

                                       33
<PAGE>

                                   ANNEX III
                                   ---------

                                      Plan

See Attached

860235.11

                                       34<PAGE>

                                                                    Exhibit 10.3

                         CORPORATE SERVICES AGREEMENT
                         ----------------------------

     This Agreement is dated as of August 25, 2000, between Arthur D. Little,
Inc., a Massachusetts corporation ("Parent"), and c-quential, Inc., a Delaware
corporation ("Sub").

     WHEREAS, Parent and Sub have entered into a Reorganization Agreement dated
as of August 25, 2000 (the "Reorganization Agreement") pursuant to which Parent,
together with the other members of the Parent Group, is assigning and
transferring to Sub and the other members of the Sub Group certain assets
associated with the Sub Business in exchange for the assumption by Sub and the
other members of the Sub Group of certain liabilities and obligations associated
with such Sub Business and the issuance by Sub to Arthur D. Little,
International, Inc., a Delaware corporation and the parent of Sub (or a designee
thereof as contemplated by the Reorganization Agreement), the Sub Shares on such
terms and conditions as are contained therein; and

     WHEREAS, the Reorganization Agreement provides that Parent and Sub shall
enter into an agreement relating to certain transition services to be provided
by the parties to the other parties and the members of their Group with respect
to the Sub Business after the Effective Date as well as certain other
arrangements, and this Agreement is entered into in order to fulfill that
provision.

     NOW, THEREFORE, in consideration of the foregoing and the other agreements
and covenants contained herein, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

SECTION 1.  DEFINITIONS.
            -----------

     Section 1.1  Defined Terms.  For purposes of this Agreement, the following
                  -------------
terms shall have the following meanings:

     "Additional Services" shall mean Additional Sub Services and Additional
Parent Services, collectively.

     "Additional Parent Services" shall have the meaning set forth in Section
2.2 hereof.

     "Additional Sub Services" shall have the meaning set forth in Section 2.2
hereof.

     "Ancillary Agreements" shall have the meaning given to such term in the
Reorganization Agreement.

     "Assumed Contracts" shall mean the client contracts in effect on the date
hereof comprising part of the Sub Business which were assigned by Parent and the
members of the Parent Group to Sub or a member of the Sub Group but for which
the consent to such assignment by the third party client, or novation, had not
been obtained as of the Effective Date.

     "Cross-Consulting Services" shall have the meaning set forth in Section 5
hereof.
<PAGE>

     "Cross-Consulting Services Fee" shall mean, with respect to any specific
matter in which a party receives Cross-Consulting Services hereunder, an amount
which is equal to eighty-five percent (85%) of the gross professional service
revenues received by the recipient of such Cross-Consulting Services from a
client in respect of such matter.

     "Effective Date" shall have the meaning given to such term in the
Reorganization Agreement.

     "Group" shall have the meaning given to such term in the Reorganization
Agreement.

     "Independent Directors" with respect to Sub, shall mean a member of the Sub
Board of Directors who is not an employee or officer of Sub or an officer,
employee or director of Parent or a member of the Parent Group, and with respect
to Parent, shall mean a member of the Parent Board of Directors who is not an
employee or officer of Parent or a member of the Parent Group.

     "IPO Closing Date" shall have the meaning given to such term in the
Reorganization Agreement.

     "Parent" shall mean Arthur D. Little, Inc., a Massachusetts corporation.

     "Parent Group" shall have the meaning given to such term in the
Reorganization Agreement.

     "Parent Services" shall mean the services set forth on Schedule A attached
                                                            ----------
hereto from time to time.

     "Provider" shall mean the provider of Services hereunder.

     "Recipient" shall mean the recipient of any Services hereunder.

     "Reorganization Agreement" shall have the meaning set forth in the
recitals.

     "Services" shall mean the Parent Services and Sub Services, collectively.

     "Sub" shall mean c-quential, Inc., a Delaware corporation.

     "Sub Business" shall have the meaning given to such term in the
Reorganization Agreement.

     "Sub Group" shall have the meaning given to such term in the Reorganization
Agreement.

     "Sub Services" shall mean the services set forth on Schedule B attached
                                                         ----------
hereto from time to time.

     "Sub Shares" shall have the meaning given to such term in the
Reorganization Agreement.

     "Term" shall have the meaning set forth in Section 7.1 hereof.

                                       2
<PAGE>

     Section 1.2  Capitalized Terms.  All other capitalized terms used herein
                  -----------------
and not defined shall have the meanings given to them in the Reorganization
Agreement.

SECTION 2.  SERVICES TO BE PROVIDED.
            -----------------------

     Section 2.1  Scope Of Services.
                  -----------------

          (a) During the Term of this Agreement, upon the written request from
time to time made by Sub, Parent agrees to provide, and agrees to cause the
members of the Parent Group to provide to Sub and the members of the Sub Group,
and Sub agrees to purchase from Parent, on its behalf and on behalf of the other
members of the Sub Group, the Parent Services described in Schedule A attached
hereto, on the terms and conditions set forth herein.  Subject to the provisions
of Section 7.2(b) hereof, Sub may elect to discontinue any Parent Service at any
time in accordance with Section 7.2(a) hereof.

          (b) During the Term of this Agreement, upon the written request from
time to time made by Parent, Sub agrees to provide to Parent and the members of
the Parent Group, and Parent agrees to purchase from Sub, on its behalf and on
behalf of the other members of the Parent Group, the Sub Services described in
Schedule B attached hereto, on the terms and conditions set forth herein.
Subject to the provision of Section 7.2 (b) hereof, Parent may elect to
discontinue any Sub Service at any time in accordance with section 7.2(a)
hereof.

     Section 2.2  Additional Services.
                  -------------------

          (a) From time to time after the Effective Date, Sub may request that
Parent provide additional administrative and support services (the "Additional
Parent Services") to Sub until such time as Sub is able to otherwise contract or
arrange for such services.

          (b) From time to time after the Effective Date, Parent may request
that Sub provide additional administrative and support services (the "Additional
Sub Services") to Parent until such time as Parent is able to otherwise contract
or arrange for such services.

          (c) Upon a request for such Additional Services, Parent and Sub shall
negotiate in good faith as to the scope of such Additional Services and the
terms and conditions under which such Additional Services may be provided by the
Provider; provided that, unless otherwise agreed to by the parties, such
Additional Services will be provided only to the extent, and on a basis
comparable to that, provided by the Provider with respect to its own operations.
Any mutually agreed-upon Additional Services to be provided by a Provider or
another member of the Provider's Group will be added to the applicable service
schedule, and such Additional Services will be deemed to be a "Parent Service"
or "Sub Parent Service," as applicable, and a "Service" for all purposes under
this Agreement unless expressly stated otherwise in this Agreement.

     Section 2.3  Limitations On Services.
                  -----------------------

          (a) Each Service furnished pursuant to this Agreement shall be in all
material respects equivalent to and limited to the same type, quality, quantity
and timeliness of such service that the Provider provides to its own
organization and personnel, and to those of the other

                                       3
<PAGE>

members of the Provider's Group. Each party acknowledges that the other may make
changes from time to time in the manner of performing the Services if such
Provider is making similar changes for itself, any member of its Group, or its
respective business. Each party further acknowledges that such Services will be
performed by those employees of such Provider who perform similar services for
such Provider in the normal course of their employment. Accordingly, except as
otherwise agreed upon by the parties, neither party shall be obligated to make
available any incremental Services to the extent that doing so would
unreasonably interfere with the performance of any employee of such party in
connection with his or her responsibilities to the other, require additional
staff or otherwise cause an unreasonable burden to the other, any member of the
its Group, or their respective business. Each party acknowledges and agrees that
duly authorized agents of the other shall have the right to enter their premises
to the extent reasonably necessary or convenient to provide the Services.

          (b) If a Provider ceases to provide any of the Services to its own
business units or if the level of such Services is reduced for any reason, such
Provider may also cease to provide or reduce the level of such Services provided
to the Recipient under this Agreement.  Each party agrees to provide the other
as promptly as practicable notice of any substantial change in the level of such
Services provided under this Agreement, but in no event shall such Provider
provide less than ninety (90) days advance notice of such date of any Service
discontinuance.

          (c) Neither party shall be required to provide any Service to the
extent the performance of such Service becomes "impracticable" as a result of a
cause or causes outside the reasonable control of such party, including
unfeasible technological requirements, or to the extent the performance of such
Services would require such party to violate any applicable laws, rules or
regulations or would result in the breach of any license, lease or other
applicable contract.

SECTION 3. CHARGES AND PAYMENTS.
           --------------------

          Section 3.1 Charges for Services. Except as specifically set forth on
                      --------------------
Schedule A and Schedule B attached hereto, it is the intention of the parties
----------     ----------
hereto that the charges for Services to be provided pursuant to this Agreement
shall be determined and allocated for each jurisdiction in accordance with
methods consistent with past practices and procedures observed by Parent and Sub
prior to the effective date concerning intercompany services and accounts (i.e.,
based on the proportionate amount of direct employee compensation of the parties
in such jurisdiction), with a view in every case toward providing the Provider
with a reimbursement of fully allocated direct and indirect costs of providing
Services but without any profit to such Provider.

     Charges for each Service shall be determined on a monthly basis.  With
respect to any Services which are provided for a period which is less than a
full calendar month, or where the scope of such services is changed in
accordance with Section 2.3(b) during such period, the charges with respect to
such Service shall be appropriately pro-rated.

                                       4
<PAGE>

     Section 3.2  Payments For Services.
                  ---------------------

          (a) As soon as practicable, but in no event more than fifteen (15)
days, following the last business day of a calendar month during which this
Agreement is in effect, Provider shall submit to Recipient a written invoice for
the aggregate amount to be charged to Recipient for Services rendered during the
month prior to the just completed month; provided, that each such invoice shall
                                         --------
indicate the amount of charges being assessed for each Service provided and
shall include such documentation as is reasonably necessary to substantiate such
amounts.  Recipient shall pay to Provider the invoiced amount within thirty (30)
days after receipt of an invoice.

          (b) Whenever the provision of any Service pursuant to this Agreement
is terminated for any reason, Provider shall, as promptly as practicable, but in
no event more than fifteen (15) business days, after the termination of such
Service, submit to Recipient a written invoice for the aggregate amount still
owed to Provider with respect to such Service, together with such documentation
as is reasonably necessary to substantiate such amounts. Recipient shall pay to
Provider the invoiced amount within thirty (30) days after receipt of an
invoice.

     Section 3.3  Taxes or Other Governmental Charges.  All federal, state,
                  -----------------------------------
foreign and local taxes, charges, fees and similar liabilities, except taxes
based on Provider's net income, which are levied on either party in connection
with the provision of any Services hereunder, shall be for Recipient's account
and paid directly by Provider or, if required to be paid by Recipient, shall be
added to the next invoice.  Provider shall provide Recipient with evidence of
the payment of any such taxes by Provider with such invoice.  Notwithstanding
the foregoing, to the extent that the provisions of this Section 3.3 are
inconsistent with the provisions of the Tax Allocation Agreement with respect to
the subject matters thereof, the provisions of the Tax Allocation Agreement
shall control.

     Section 3.4  Out-Of-Pocket/Direct Expenses.  To the extent it is not
                  -----------------------------
duplicative of Recipient's payment obligations set forth in Section 3.1 above,
Recipient agrees to pay directly or to reimburse Provider for all reasonable
out-of-pocket and direct expenses incurred by Provider in respect of the
provision of any Services, including, without limitation, all reasonable
expenses for outside accounting, legal, recruiting, consulting, marketing and
other professional services.  All payments or reimbursements to be made under
this Section 3.4 by Recipient shall, except as otherwise provided herein, be
made not later than thirty (30) days following receipt by Recipient of an
invoice therefor.

     Section 3.5  Performance Under Other Agreements.  Notwithstanding anything
                  ----------------------------------
to the contrary contained herein, neither party shall be charged under this
Agreement for any obligations that are specifically required to be performed
under the Reorganization Agreement or any other Ancillary Agreement and any such
other obligations shall be performed and charged for (if applicable) in
accordance with the terms of the Reorganization Agreement or such other
Ancillary Agreement.

                                       5
<PAGE>

     SECTION 4. INDEPENDENT CONTRACTOR STATUS.
                -----------------------------

     In carrying out the provisions of this Agreement, each party is and shall
be deemed to be for all purposes a separate and independent entity, and no
partnership, joint venture or other arrangement shall be deemed to have been
created hereunder.  Provider shall select its employees and agents, and such
employees and agents shall be under the exclusive and complete supervision and
control of Provider.  Provider hereby acknowledges responsibility for full
payment of wages and other compensation to all employees and agents engaged in
the performance of the Services hereunder.  It is the express intent of this
Agreement that Provider shall render and perform the Services as an independent
contractor in accordance with its own standards, subject to its compliance with
the provisions of this Agreement.

     SECTION 5. AGREEMENTS REGARDING CROSS-CONSULTING.
                -------------------------------------

     In addition to the other Services provided herein, Parent shall make
available to Sub, at the request of Sub, the services of Parent's management
consultants and other professionals, and Sub shall make available to Parent, at
the request of Parent, the services of Sub's management consultants and other
professionals (in either case, "Cross-Consulting Services").  The Cross-
Consulting Services shall be in all material respects limited to the type,
quality, quantity and timeliness of such services that the party providing such
Cross-Consulting Services provides on behalf of itself and the other members of
its Group, and shall be limited as to the general availability of the party (and
its employees and consultants) providing such Cross-Consulting Services and as
would not otherwise conflict with the interests of such providing party.  The
recipient of such Cross-Consulting Services shall pay the provider of such Cross
Consulting Services, within thirty (30) days of receipt of payment therefor from
the client in respect of the performance of such Cross-Consulting Services, the
Cross-Consulting Services Fee.  Notwithstanding the foregoing, the provisions of
this Section 5 shall in no way limit the obligations and rights of the parties
in respect of the Assumed Contracts, including, without limitation, the
obligation of Parent or the applicable Parent Group Member to forward to Sub one
hundred percent (100%) of the fees received by Parent or such Parent Group
Member under an Assumed Contact for services performed by Sub or a Sub Group
Member from and after the Effective Date, as provided in Section 7.3.2 of the
Reorganization Agreement.

     SECTION 6. LIMITED LIABILITY; INDEMNIFICATION.
                ----------------------------------

     Section 6.1  Limited Liability.  Neither party shall be liable to the other
party for any special, indirect, incidental, exemplary or consequential damages,
or for loss of profits or revenues, whether arising in contract, tort (including
negligence), under any warranty or otherwise, arising out of its performance or
non-performance under this Agreement or the termination of this Agreement, even
if Parent or Sub, as the case may be, has been advised of the possibilities of
such damages.

     Section 6.2  Disclaimer of Warranty.  NEITHER PARENT NOR SUB MAKES ANY
REPRESENTATIONS OR WARRANTIES WHATSOEVER, EXPRESS OR IMPLIED, INCLUDING, WITHOUT
LIMITATION ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE, WITH RESPECT TO THE SERVICES TO BE PROVIDED BY IT UNDER THIS AGREEMENT.
In the event

                                       6
<PAGE>

the performance or non-performance of any Service to be provided hereunder
results in direct damages to Recipient, Provider shall be liable only to the
extent such performance or non-performance was the result of Provider's gross
negligence or willful misconduct, and Provider's maximum, cumulative and sole
liability to Recipient for such direct damages shall be limited to an amount up
to the aggregate amount actually paid by the Recipient to Provider for such
Service up to the date of the performance or non-performance giving rise to the
direct damages. Recipient acknowledges that such payment constitutes fair and
reasonable compensation for any direct damages. Notice of any claim for direct
damages must be made within one (1) year of the date of the event giving rise to
such claim and such claim must specify the damage amount claimed and a
description of the Service and the act or omission giving rise to the claim.

     Section 6.3 Indemnification.  Recipient, on its behalf and on behalf of the
other members of its Group, agrees to indemnify and hold harmless Provider and
the other members of its Group, and each of their respective directors,
officers, employees, agents, representatives, shareholders, transferees,
successors and assigns against any claims, actions, demands, judgments, losses,
costs, expenses, damages and liabilities (including reasonable attorneys' fees
and disbursements) related to or arising out of or connected with such Services,
regardless of the legal theory asserted.  The foregoing indemnity applies to
claims, actions and demands for which Provider may be, or may be claimed to be,
partially or solely liable; provided that the foregoing indemnity will not apply
with respect to any claim for direct damages asserted by Recipient against
Provider as provided in Section 6.2 above.

     SECTION 7. TERM OF AGREEMENT

     Section 7.1  Term.  This Agreement shall become effective on the Effective
                  ----
Date and shall remain in effect until the earlier of (a) the discontinuance or
termination of all Services to be provided hereunder in accordance with the
Section 7.2 of this Agreement and (b) the third anniversary of the date of the
IPO Closing Date (such period, the "Term"), unless earlier terminated by the
mutual agreement of the parties.

     Section 7.2  Discontinuation or Termination of Services.
                  ------------------------------------------
          (a) A Recipient may discontinue its use of any such Service (i) upon
written notice given to Provider of such Service not less than one hundred
twenty (120) days prior to the proposed date of Service discontinuance or (ii)
immediately upon the bankruptcy or insolvency of Provider.  In addition, upon
the occurrence and continuance of a breach or default by either party in
connection with the provision of, or payment for, any Service hereunder for a
period of ten (10) days after written notice thereof has been given to the
defaulting party, the non-defaulting party may terminate such Service and shall
have no further obligation to the other party with respect thereto.  Upon
termination of this Agreement or any Service to be provided hereunder, all
unpaid fees with respect to Services provided prior to the date of termination
of this Agreement or such Services, as applicable, shall be due and payable
within thirty (30) days of the date of termination.  Notwithstanding any
termination of this Agreement or any Services to be provided hereunder, the
provisions of Sections 3, 5, 6 and 8 shall remain in effect indefinitely or
until such time as the obligations of both parties hereunder shall have been
fully discharged.

                                       7
<PAGE>

          (b) Once a Service is discontinued or terminated in accordance with
the terms of this Agreement, Provider shall, upon the request of Recipient, not
again be obligated to later reinstate such Service; provided, however, that to
                                                    --------  -------
the extent Provider is thereafter requested to provide any discontinued or
terminated Service to Recipient, including any transition-related assistance
necessary for any other organization to perform the discontinued or terminated
Service, and Provider consents to provide such Service, the obligation of
Provider to provide such service shall be subject to the limitations set forth
in Section 2.3 hereof, and Provider shall be entitled to compensation reflecting
the actual costs incurred by Provider with respect thereto consistent with the
general payment terms contained herein.

     SECTION 8.  MISCELLANEOUS.
                 -------------

     Section 8.1  Force Majeure.  Anything contained in this Agreement to the
                  -------------
contrary notwithstanding, Provider's performance of its duties and obligations
hereunder shall be excused to the extent that failure of performance is caused
by any act of force majeure, including, but not limited, to acts of God or the
public enemy, acts of the government in its sovereign capacity, fires, floods,
epidemics, quarantine restrictions, freight embargoes, strikes, unusually severe
weather, sabotage or any other or similar event or casualty beyond the
reasonable control of Provider; provided, however, that Recipient shall not be
                                -----------------
obligated to pay Provider for such Services to the extent that Provider is
unable to perform as a result of a force majeure condition.  Provider shall
promptly notify Recipient of such events and make every reasonable effort to
restore such Services.  Notwithstanding the foregoing, Recipient shall be
responsible for making its own alternative arrangements with respect to
interrupted Services during the pendency of any force majeure condition.

     Section 8.2 Access to Information; Confidentiality. The provisions of
                 --------------------------------------
Section 8 of the Reorganization Agreement relating to the access to information
and confidentiality shall apply with respect to any information obtained or
learned by either party from the other party in connection with the parties'
performance of their respective obligations hereunder. This Section shall
survive the termination of this Agreement.

     Section 8.3 Dispute Resolution. All disputes, controversies or claims
                 ------------------
between Parent and Sub arising out of or relating to this Agreement, including,
without limitation, the breach, interpretation or validity of any term or
condition hereof, shall be resolved in accordance with the provisions of the
Reorganization Agreement relating to dispute resolution.

     Section 8.4 Amendment and Waiver. The provisions of this Agreement,
                 --------------------
including, without limitation, this Section, may not be waived and this
Agreement shall not be amended or modified except in accordance with this
Section. The provisions of this Agreement may be waived only by the written
consent of a majority of the Independent Directors of the party which is the
beneficiary of the particular provision being waived. No failure or delay by any
party in exercising any right or remedy hereunder shall operate as a waiver
thereof, and a waiver of a particular right or remedy on one occasion shall not
be deemed a waiver of any other right or remedy or a waiver on any subsequent
occasion. The provisions of this Agreement may be amended, modified or
supplemented only by the written consent of a majority of the Independent
Directors of each of the parties.

                                       8
<PAGE>

     Section 8.5 Notices. Any notice to any party hereto given pursuant to this
                 -------
Agreement shall be in writing and shall be given by the means, and to the
addresses, set forth in the "Notices" section of the Reorganization Agreement.

     Section 8.6  Successors and Assigns. This Agreement may not be assigned by
                  ----------------------
either party without the prior written consent of the other party, and any
attempt to assign any rights or obligations hereunder without such consent shall
be void; provided, however, that either party may assign or transfer this
         -----------------
Agreement without the consent of the non-assigning party to an entity that
succeeds to all or substantially all of the business, assets or capital stock of
such party. This Agreement shall inure to the benefit of, and be binding upon
and enforceable against the respective successors and assigns of the parties
hereto.

     Section 8.7 Entire Agreement; Parties in Interest. This Agreement
                 -------------------------------------
(including the Schedules hereto and the applicable provisions of the
Reorganization Agreement and other Ancillary Agreements) comprises the entire
agreement between the parties hereto as to the subject matter hereof and
supersedes all prior agreements and understandings between them relating thereto
and, except as provided in Section 6.3 above, is not intended to confer upon any
person other than the parties hereto (including their successors and permitted
assigns) any rights or remedies hereunder.

     Section 8.8 Severability. If any term or provision of this Agreement or the
                 ------------
application thereof to any person or circumstance shall to any extent be invalid
or unenforceable, the remainder of this Agreement or the application of such
terms or provisions to persons or circumstances other than those as to which it
is invalid or unenforceable shall not be affected thereby and each term and
provision of this Agreement shall be valid and enforced to the fullest extent
permitted by law.

     Section 8.9 Captions. Captions and headings are supplied herein for
                 --------
convenience only and shall not be deemed a part of this Agreement for any
purpose.

     Section 8.10 Governing Law. This Agreement shall be governed by and
                  -------------
construed in accordance with the internal substantive laws of the Commonwealth
of Massachusetts, without giving effect to the principles of conflicts of laws
thereof.

     Section 8.11  Counterparts.  This Agreement may be executed in several
                   ------------
counterparts, and all counterparts so executed shall constitute one agreement,
binding upon the parties hereto, notwithstanding that the parties are not
signatory to the same counterpart.

                         [Signature page follows next]

                                       9
<PAGE>

     IN WITNESS WHEREOF, Parent and Sub have caused this Agreement to be duly
executed by their authorized representatives as an agreement under seal as of
the day and year first written above.

                                    PARENT:

                                    ARTHUR D. LITTLE, INC., a
                                    Massachusetts corporation

                                    By:/s/ Mark A. Brodsky
                                       ---------------------------
                                       Name:  Mark A. Brodsky
                                       Title: Exec. Vice President

                                    SUB:

                                    C-QUENTIAL, INC., a Delaware
                                    corporation

                                    By:/s/ Lorenzo C. Lamadrid
                                       ---------------------------
                                       Name:  Lorenzo C. Lamadrid
                                       Title: Director

                                       10
<PAGE>

                                  SCHEDULE A

                                PARENT SERVICES

1.  Payroll.
    -------
    Services to include preparation of payroll checks for Sub employees,
    maintenance of Sub employee payroll records, and any other ancillary
    payroll functions required.

2.  Accounting and Treasury.
    -----------------------

    Services to include assisting Sub's accounting department and auditors with
    general and specific accounting services, including preparation of
    financial and regulatory statements, filings with the Securities and
    Exchange Commission, such as Forms 10-K, 10-Q and 8-K, proxy statements and
    annual reports to stockholders, internal audit support services, and review
    of compliance with financial and accounting procedures.  Treasury services
    shall include assisting Sub in establishing bank accounts, managing cash
    accounts and currency exchange matters.

3.  Corporate Records.
    -----------------

    Services to include maintenance of corporate records and minute books,
    coordination with stock transfer agent, administration of option plans and
    issuances and stock repurchase programs.

4.  Tax Preparation.
    ---------------

    Services include assisting Sub in the preparation and filing of all tax
    returns, including federal, state and local corporate income taxes, state
    franchise taxes, local property taxes, state and local withholding taxes,
    all foreign taxes, value added tax returns, preparing for meetings with tax
    authorities and audits, and tax research and planning.

5.  Human Resources and Benefits Administration.
    -------------------------------------------

    Services include arranging and procuring general liability, property and
    casualty and other business insurance coverage, workers' compensation
    coverage, assistance with human resources functions, including maintaining
    personnel records, compliance with applicable laws and regulations
    regarding employees and labor in general, adoption of employee handbook and
    procedures for recruiting, hiring, promoting and terminating employees.

6.  Training.
    --------

    Services to include the provision and coordination of professional training
    for Sub's employees and consultants, including internal and external
    seminars and educational conferences and retreats, including, without
    limitation, training through the engagement of APDI; provided, however, the
    cost of Sub of such APDI services shall equal the cost Parent charges to
    the other members of the Parent Group.

                                       11
<PAGE>

7.  Risk Management.
    ---------------
    Services to include assisting Sub with minimizing exposure to liabilities
    and to maintain contacts with insurance brokers and carriers.

8.  Legal Services.
    --------------

    Services to include access to Parent's in-house counsel staff for legal
    advice and assistance in general corporate affairs and business
    transactions, compliance with regulatory matters (including, without
    limitation, matters in respect of federal and state securities laws),
    advice and services with respect to intellectual property matters, and
    coordinating contact and use of outside counsel.

9.  Information and Technology and other Administrative Support.
    -----------------------------------------------------------

    Services to include data processing and telecommunications assistance,
    secretarial and administrative assistance and support, graphics,
    photocopying and general office services.

10. Personal Property and Vehicles.
    ------------------------------

    Services to include the use of telecommunications equipment, including
    voice and data transmission equipment, photocopying equipment, computer
    hardware and peripherals and miscellaneous office furniture, including
    desks, chairs, filing cabinets and storage units, as well as the use of
    motor vehicles.

11. Miscellaneous.
    -------------
    Such other services as may be reasonably necessary from time to time in the
    operation of the Sub Business during the Term.

                                       12
<PAGE>

                                  SCHEDULE B
                                  ----------

                                 SUB SERVICES

1.   Payroll.
     -------

     Services to include preparation of payroll checks for Parent employees,
     maintenance of Parent employee payroll records, and any other ancillary
     payroll functions required.

2.   Accounting and Treasury.
     -----------------------

     Services to include assisting Parent's accounting department and auditors
     with general and specific accounting services, including, as applicable,
     preparation of financial and regulatory statements, filings with the
     Securities and Exchange Commission, such as Forms 10-K, 10-Q and 8-K, proxy
     statements and annual reports to stockholders, internal audit support
     services, and review of compliance with financial and accounting
     procedures.  Treasury services shall include assisting Parent in
     establishing bank accounts, managing cash accounts and currency exchange
     matters.

3.   Corporate Records.
     -----------------

     Services to include maintenance of corporate records and minute books,
     coordination with stock transfer agent, as applicable, administration of
     option plans and issuances and stock repurchase programs.

4.   Tax Preparation.
     ---------------

     Services include assisting Parent in the preparation and filing of all tax
     returns, including federal, state and local corporate income taxes, state
     franchise taxes, local property taxes, state and local withholding taxes,
     all foreign taxes, value added tax returns, preparing for meetings with tax
     authorities and audits, and tax research and planning.

5.   Human Resources and Benefits Administration.
     -------------------------------------------

     Services include arranging and procuring general liability, property and
     casualty and other business insurance coverage, workers' compensation
     coverage, assistance with human resources functions, including maintaining
     personnel records, compliance with applicable laws and regulations
     regarding employees and labor in general, adoption of employee handbook and
     procedures for recruiting, hiring, promoting and terminating employees.

6.   Training.
     --------

     Services to include the provision and coordination of professional training
     for Parent's employees and consultants, including internal and external
     seminars and educational conferences and retreats.

                                       13
<PAGE>

7.   Risk Management.
     ---------------

     Services to include assisting Parent with minimizing exposure to
     liabilities and to maintain contacts with insurance brokers and carriers.

8.   Legal Services.
     --------------

     Services to include access to Sub's in-house counsel staff for legal advice
     and assistance in general corporate affairs and business transactions,
     compliance with regulatory matters (including, without limitation, matters
     in respect of federal and state securities laws), advice and services with
     respect to intellectual property matters, and coordinating contact and use
     of outside counsel.

9.   Information and Technology and other Administrative Support.
     -----------------------------------------------------------

     Services to include data processing and telecommunications assistance,
     secretarial and administrative assistance and support, graphics,
     photocopying and general office services.

10.  Personal Property and Vehicles.
     ------------------------------

     Services to include the use of telecommunications equipment, including
     voice and data transmission equipment, photocopying equipment, computer
     hardware and peripherals and miscellaneous office furniture, including
     desks, chairs, filing cabinets and storage units, as well as the use of
     motor vehicles.

11.  Miscellaneous.
     -------------
     Such other services as may be reasonably necessary from time to time in the
     operation of the Parent's business during the Term.

                                       14

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