Document:

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                                                                   EXHIBIT 10.10

                                                                  EXECUTION COPY

                          REGISTRATION RIGHTS AGREEMENT

                          DATED AS OF JANUARY 31, 2000

                                     BETWEEN

                              KPMG CONSULTING, INC.

                                       AND

                                    KPMG LLP

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                          REGISTRATION RIGHTS AGREEMENT

                  REGISTRATION RIGHTS AGREEMENT (this "Agreement") dated as of
January 31, 2000 between KPMG Consulting, Inc., a Delaware corporation (the
"Company"), and KPMG LLP, a Delaware registered limited liability partnership
("KPMG").

                                    RECITALS

                  WHEREAS, pursuant to that certain Separation Agreement dated
as of December 29, 1999 by and among the Company, KPMG Consulting, LLC, a
Delaware limited liability company, and KPMG (the "Separation Agreement"), KPMG
agreed to cause certain assets and liabilities of its consulting business to be
transferred, directly or indirectly, to the Company (the "Separation");

                  WHEREAS, in connection with the Separation and pursuant to the
Separation Agreement, the Company issued to KPMG and certain of its partners and
principals the Shares (as defined below) and agreed to provide certain rights to
KPMG to cause the Shares to be registered under the Securities Act (as defined
below); and

                  WHEREAS, the parties hereto hereby desire to set forth the
Holders' rights (as defined below) and the Company's obligations to cause the
registration of the Registrable Securities (as defined below) pursuant to the
Securities Act.

                  NOW, THEREFORE, in consideration of the mutual covenants
included in the Separation Agreement, 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 and Usage. As used in this Agreement:

                  1.1. Definitions.

                  Agent. "Agent" means the principal placement agent on an
agented placement of Registrable Securities.

                  Auditor Independence Rules. "Auditor Independence Rules" means
the auditor independence rules as established by the American Institute of
Certified Public Accountants, the Commission, the ISB, the state boards of
accountancy and any other duly constituted regulatory authority, as the same may
be amended from time to time.

                  Commission. "Commission" shall mean the Securities and
Exchange Commission or any successor agency.

                  Common Stock. "Common Stock" shall mean (i) the common stock,
par value $.01 per share, of the Company, and (ii) shares of capital stock of
the Company issued by the Company in respect of or in exchange for shares of
such common stock in connection with any stock dividend or distribution, stock
split-up, recapitalization, recombination or exchange by the Company generally
of shares of such common stock.

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                  Continuously Effective. "Continuously Effective," with respect
to a specified registration statement, shall mean that it shall not cease to be
effective and available for Transfers of Registrable Securities thereunder for
longer than either (i) any ten (10) consecutive business days, or (ii) an
aggregate of fifteen (15) business days during the period specified in the
relevant provision of this Agreement.

                  Demand Registration. "Demand Registration" shall have the
meaning set forth in Section 2.1(i).

                  Demanding Holders. "Demanding Holders" shall have the meaning
set forth in Section 2.1(i).

                  Exchange Act. "Exchange Act" shall mean the Securities
Exchange Act of 1934, as amended.

                  Holder. "Holders" shall mean KPMG and Transferees of KPMG's
Registrable Securities with respect to the rights that such Transferees shall
have acquired in accordance with Section 8, at such times as such Persons shall
own Registrable Securities.

                  Independence Conflict. An "Independence Conflict" shall be
deemed to exist in the event that the Board of Directors of KPMG determines
that, in order to comply with the Auditor Independence Rules, it is necessary or
appropriate for KPMG and/or any or all of the Qualified Partners to divest some
or all of their Registrable Securities.

                  Initial Public Offering. "Initial Public Offering" means the
first public offering of shares of Common Stock registered under the Securities
Act.

                  Initiating Substantial Holder. "Initiating Substantial Holder"
shall have the meaning set forth in Section 2.2.

                  ISB. "ISB" means the Independence Standards Board.

                  Majority Selling Holders. "Majority Selling Holders" means
those Selling Holders whose Registrable Securities included in such registration
represent a majority of the Registrable Securities of all Selling Holders
included therein; provided, however, that with respect to any registration in
which KPMG is a Selling Holder, KPMG shall be the Majority Selling Holder.

                  Partner Securities. "Partner Securities" shall mean: (i) the
shares of Common Stock owned by Qualified Partners on the date hereof, or shares
of Common Stock thereafter acquired, and owned by a Qualified Partner on the
date of determination, (ii) any shares of Common Stock or other securities
issued as (or issuable upon the conversion or exercise of any warrant, right or
other security which is issued as) a dividend or other distribution with respect
to, or in exchange by the Company generally for, or in replacement by the
Company generally of, such shares of Common Stock; and (iii) any securities
issued in exchange for the securities identified in (i) or (ii) in any merger or
reorganization of the Company; provided, however, that Partner Securities shall
not include any securities which have theretofore been registered and sold
pursuant to the Securities Act or which have been sold to the public pursuant to
Rule 144 or any similar rule promulgated by the Commission pursuant to the
Securities Act.

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                  Person. "Person" shall mean any individual, corporation,
partnership, joint venture, association, joint-stock company, limited liability
company, trust, unincorporated organization or government or other agency or
political subdivision thereof.

                  Piggyback Registration. "Piggyback Registration" shall have
the meaning set forth in Section 3.

                  Qualified Partners. "Qualified Partners" means partners and
principals of KPMG.

                  Register, Registered and Registration. "Register",
"registered", and "registration" shall refer to a registration effected by
preparing and filing a registration statement or similar document in compliance
with the Securities Act, and the declaration or ordering by the Commission of
effectiveness of such registration statement or document.

                  Registrable Securities. "Registrable Securities" shall mean,
subject to Section 8: (i) the Shares owned by Holders on the date hereof, or
shares of Common Stock thereafter acquired, and owned by a Holder on the date of
determination, (ii) any shares of Common Stock or other securities issued as (or
issuable upon the conversion or exercise of any warrant, right or other security
which is issued as) a dividend or other distribution with respect to, or in
exchange by the Company generally for, or in replacement by the Company
generally of, such Shares and other Common Stock; and (iii) any securities
issued in exchange for Shares, other Common Stock (or other securities
identified in (ii)) in any merger or reorganization of the Company; provided,
however, that Registrable Securities shall not include any securities which have
theretofore been registered and sold pursuant to the Securities Act or which
have been sold to the public pursuant to Rule 144 or any similar rule
promulgated by the Commission pursuant to the Securities Act. For purposes of
this Agreement, a Person will be deemed to be a Holder of Registrable Securities
whenever such Person has the then-existing right to acquire such Registrable
Securities (by conversion, purchase or otherwise), whether or not such
acquisition has actually been effected.

                  Registrable Securities then outstanding. "Registrable
Securities then outstanding" shall mean, with respect to a specified
determination date, the Registrable Securities owned by all Holders on such
date.

                  Registration Expenses. "Registration Expenses" shall have the
meaning set forth in Section 6.1.

                  Securities Act. "Securities Act" shall mean the Securities Act
of 1933, as amended.

                  Selling Holders. "Selling Holders" shall mean, with respect to
a specified registration pursuant to this Agreement, Holders whose Registrable
Securities are included in such registration.

                  Separation Agreement. "Separation Agreement" shall have the
meaning set forth in the Recitals.

                  Shares. "Shares" shall mean the shares of Common Stock issued
pursuant to the Exchange (as defined in the Separation Agreement).

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                  Shelf Registration. "Shelf Registration" shall have the
meaning set forth in Section 2.2.

                  Substantial Holder. "Substantial Holder" shall mean any Holder
that owned on the date of this Agreement 15% or more of the Registrable
Securities then outstanding and such Transferee, if any, to whom such Person
Transfers Registrable Securities and assigns such Substantial Holder's rights as
a Substantial Holder as permitted by Section 8.

                  Transfer. "Transfer" shall mean and include the act of
selling, giving, transferring, creating a trust (voting or otherwise), assigning
or otherwise disposing of (other than pledging, hypothecating or otherwise
transferring as security) (and correlative words shall have correlative
meanings); provided, however, that any transfer or other disposition upon
foreclosure or other exercise of remedies of a secured creditor after an event
of default under or with respect to a pledge, hypothecation or other transfer as
security shall constitute a "Transfer".

                  Underwriters' Representative. "Underwriters' Representative"
shall mean the managing underwriter, or, in the case of a co-managed
underwriting, the managing underwriter designated as the Underwriters'
Representative by the co-managers.

                  Violation. "Violation" shall have the meaning set forth in
Section 7.1.

                  1.2.     Usage.

                  (i) References to a Person are also references to its assigns
and successors in interest (by means of merger, consolidation or sale of all or
substantially all the assets of such Person or otherwise, as the case may be).

                  (ii) References to Registrable Securities "owned" by a Holder
shall include Registrable Securities beneficially owned by such Person but which
are held of record in the name of a nominee, trustee, custodian, or other agent,
but shall exclude shares of Common Stock held by a Holder in a fiduciary
capacity for customers of such Person.

                  (iii) References to a document are to it as amended, waived
and otherwise modified from time to time and references to a statute or other
governmental rule are to it as amended and otherwise modified from time to time
(and references to any provision thereof shall include references to any
successor provision).

                  (iv) References to Sections or to Schedules or Exhibits are to
sections hereof or schedules or exhibits hereto, unless the context otherwise
requires.

                  (v) The definitions set forth herein are equally applicable
both to the singular and plural forms and the feminine, masculine and neuter
forms of the terms defined.

                  (vi) The term "including" and correlative terms shall be
deemed to be followed by "without limitation" whether or not followed by such
words or words of like import.

                  (vii) The term "hereof," "hereto" and similar terms refer to
this Agreement as a whole.

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                  (viii) The "date of" any notice or request given pursuant to
this Agreement shall be determined in accordance with Section 13.

                  Section 2.        Demand Registration.

                  2.1.

                  (i) At any time, if one or more Holders which own, or have the
right to exercise the registration rights with respect to, an aggregate of 25%
or more of the Registrable Securities then outstanding shall make a written
request to the Company (the "Demanding Holders") to file a registration
statement for the offering of Registrable Securities having a minimum aggregate
offering price of not less than $50,000,000, the Company shall cause there to be
filed with the Commission a registration statement meeting the requirements of
the Securities Act (a "Demand Registration"), and each Demanding Holder shall be
entitled to have included therein (subject to Section 2.7) all or such number of
such Demanding Holder's Registrable Securities (or, in the case of KPMG, all or
such number of its Registrable Securities and, in the event of an Independence
Conflict, all or a portion of the Partner Securities owned by Qualified
Partners) as the Demanding Holder shall request in writing; provided, however,
that unless there is an Independence Conflict (in which case this proviso shall
be inapplicable), no request may be made pursuant to this Section 2.1 if within
ninety (90) days prior to the date of such request a Demand Registration
Statement pursuant to this Section 2.1 shall have been declared effective by the
Commission. Any request made pursuant to this Section 2.1 shall be addressed to
the attention of the Secretary of the Company, and shall specify the number of
Registrable Securities (or Partner Securities held by Qualified Partners) to be
registered, the intended methods of disposition thereof and that the request is
for a Demand Registration pursuant to this Section 2.1(i).
                  (ii) The Company shall be entitled to postpone for up to 90
days the filing of any Demand Registration or Shelf Registration (as defined
below) statement otherwise required to be prepared and filed pursuant to this
Section 2.1 or to suspend the use of the prospectus included in a registration
statement filed pursuant to any Demand Registration or Shelf Registration, if
the Board of Directors of the Company determines, in its good faith reasonable
judgment, that such registration contemplated by the Demanding Holders would be
seriously detrimental to the Company and its stockholders or would delay or
result in the premature disclosure of any financing, merger, acquisition,
divestiture or extraordinary corporate development material to the Company, and
the Company promptly gives the affected Holders notice of such determination by
delivery of a certificate signed by the Chief Executive Officer of the Company;
provided, however, that in the event there is an Independence Conflict, the
Company shall not be permitted to postpone (or continue to postpone) pursuant to
this Section 2.1(ii) the filing of any Demand Registration or Shelf Registration
statement, or suspend (or continue to suspend) the use of any prospectus
included in a registration statement filed pursuant to a Demand Registration or
Shelf Registration.

                  (iii) Whenever the Company shall have received a demand
pursuant to Section 2.1(i) to effect the registration of any Registrable
Securities, the Company shall promptly give written notice of such proposed
registration to all other Holders (if any). Subject to Section 2.7, any such
Holder may, within twenty (20) days after receipt of such notice, request in
writing that

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all of such Holder's Registrable Securities, or any portion thereof designated
by such Holder, be included in the registration.

                  2.2. On or after the date of this Agreement each Substantial
Holder that shall make a written request to the Company (the "Initiating
Substantial Holder"), shall be entitled to have all or any number of such
Initiating Substantial Holder's Registrable Securities (or, in the case of KPMG,
all or such number of its Registrable Securities and, in the event of an
Independence Conflict, all or a portion of the Partner Securities owned by
Qualified Partners) included in a registration with the Commission in accordance
with the Securities Act for an offering on a delayed or continuous basis
pursuant to Rule 415 under the Securities Act (a "Shelf Registration"). Any
request made pursuant to this Section 2.2 shall be addressed to the attention of
the Secretary of the Company, and shall specify the number of Registrable
Securities (or Partner Securities held by Qualified Partners) to be registered,
the intended methods of disposition thereof and that the request is for a Shelf
Registration pursuant to this Section 2.2.

                  2.3. Following receipt of a request for a Demand Registration
or a Shelf Registration, the Company shall, subject to Section 2.1(ii):

                  (i) File the registration statement with the Commission as
promptly as practicable, and shall use the Company's reasonable best efforts to
have the registration declared effective under the Securities Act as soon as
reasonably practicable, in each instance giving due regard to the need to
prepare current financial statements, conduct due diligence and complete other
actions that are reasonably necessary to effect a registered public offering.

                  (ii) Use the Company's reasonable best efforts to keep the
relevant registration statement Continuously Effective (x) if a Demand
Registration, for up to 60 days or until such earlier date as of which all the
Registrable Securities under the Demand Registration statement shall have been
disposed of in the manner described in the Registration Statement, and (y) if a
Shelf Registration, for two years. Notwithstanding the foregoing, if for any
reason the effectiveness of a registration pursuant to this Section 2 is
suspended or, in the case of a Demand Registration, postponed as permitted by
Section 2.1(ii), the foregoing period shall be extended by the aggregate number
of days of such suspension or postponement.

                  2.4. A registration pursuant to this Section 2 shall be on
such appropriate registration form of the Commission as shall (i) be selected by
the Company and be reasonably acceptable to the Majority Selling Holders, or by
the Initiating Substantial Holder, as the case may be, and (ii) permit the
disposition of the Registrable Securities in accordance with the intended method
or methods of disposition specified in the request pursuant to Section 2.1(i) or
Section 2.2, respectively.

                  2.5. The Holders shall be entitled to have their Registrable
Securities included in an unlimited number of Demand Registrations pursuant to
this Section 2.

                  2.6. If any registration pursuant to Section 2 involves an
underwritten public offering (whether on a "firm", "best efforts" or "all
reasonable efforts" basis or otherwise), or an agented offering, the Majority
Selling Holders, or the Initiating Substantial Holder, as the case may be, shall
have the right to select the underwriter or underwriters and manager or managers
to administer such underwritten public offering or the placement agent or agents
for such agented

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offering; provided, however, that each Person so selected shall be reasonably
acceptable to the Company.

                  2.7. Whenever the Company shall effect a registration pursuant
to this Section 2 in connection with an underwritten offering by one or more
Selling Holders of Registrable Securities: (i) if such Selling Holders have
requested the inclusion therein of more than one class of Registrable
Securities, and the Underwriters' Representative or Agent advises each such
Selling Holder in writing that, in its opinion, the inclusion of more than one
class of Registrable Securities would adversely affect such offering, the
Demanding Holders holding at least a majority of the Registrable Securities
proposed to be sold therein by them, shall decide which class of Registrable
Securities shall be included therein in such offering and the related
registration, and the other class shall be excluded; and (ii) if the
Underwriters' Representative or Agent advises each such Selling Holder in
writing that, in its opinion, the amount of securities requested to be included
in such offering (whether by Selling Holders or others) exceeds the amount which
can be sold in such offering within a price range acceptable to the Majority
Selling Holders, securities shall be included in such offering and the related
registration, to the extent of the amount which can be sold within such price
range, and first for the account of the Substantial Holders, and second by all
other Selling Holders.

                  2.8. In the event of an Independence Conflict, KPMG shall be
permitted to exercise its registration rights under this Agreement with respect
to any Partner Securities owned by Qualified Partners.

                  Section 3.        Piggyback Registration.

                  3.1. If at any time the Company proposes to register
(including for this purpose a registration effected by the Company for
stockholders of the Company other than the Holders) Common Stock under the
Securities Act in connection with the public offering solely for cash on Form
S-1, S-2 or S-3 (or any replacement or successor forms), the Company shall
promptly give each Holder of Registrable Securities written notice of such
registration. Upon the written request of each Holder given within 20 days
following the date of such notice, the Company shall cause to be included in
such registration statement and use its reasonable best efforts to be registered
under the Securities Act all the Registrable Securities that each such Holder
shall have requested to be registered (a "Piggyback Registration"); provided,
however, that such right of inclusion shall not apply to any registration
statement covering an underwritten offering of convertible debt securities,
unless the Underwriters' Representative or Agent expressly consents thereto. The
Company shall have the absolute right to withdraw or cease to prepare or file
any registration statement for any offering referred to in this Section 3
without any obligation or liability to any Holder.

                  3.2. If the Underwriters' Representative or Agent shall advise
the Company in writing (with a copy to each Selling Holder) that, in its
opinion, the amount of Registrable Securities requested to be included in such
registration would materially adversely affect such offering, or the timing
thereof, then the Company will include in such registration, to the extent of
the amount and class which the Company is so advised can be sold without such
material adverse effect in such offering: First, all securities proposed to be
sold by the Company for its own account or pursuant to demand registration
rights of stockholders of the Company other than the Holders; second, the
Registrable Securities requested to be included in such registration by

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Holders pursuant to this Section 3 and all other securities being registered
pursuant to the exercise of contractual rights comparable to the rights granted
in this Section 3, pro rata based on the estimated gross proceeds from the sale
thereof; and third all other securities requested to be included in such
registration.

                  3.3. The Holders shall be entitled to have their Registrable
Securities included in an unlimited number of Piggyback Registrations pursuant
to this Section 3.

                  3.4. If the Company has previously filed a registration
statement with respect to Registerable Securities pursuant to Section 2 or
pursuant to this Section 3, and if such previous registration has not been
withdrawn or abandoned, the Company shall not be required to file or cause to be
effected any other registration of any of its equity securities or securities
convertible or exchangeable into or exercisable for its equity securities under
the Securities Act (except on Form S-8 or any successor form), whether on its
own behalf or at the request of any holder or holders of such securities, until
a period of 90 days has elapsed from the effective date of such a previous
registration.

                  Section 4. Registration Procedures. Whenever required under
Section 2 or Section 3 to effect the registration of any Registrable Securities,
the Company shall, as expeditiously as practicable:

                  4.1. Prepare and file with the Commission a registration
statement with respect to such Registrable Securities and use the Company's
reasonable best efforts to cause such registration statement to become
effective; provided, however, that before filing a registration statement or
prospectus or any amendments or supplements thereto, including (if permitted
under the applicable registration form) documents incorporated by reference
after the initial filing of the registration statement and prior to
effectiveness thereof, the Company shall furnish to one firm of counsel for the
Selling Holders (selected by Majority Selling Holders or the Initiating
Substantial Holder, as the case may be), which may be counsel to the Company,
copies of all such documents in the form substantially as proposed to be filed
with the Commission at least four (4) business days prior to filing for review
and comment by such counsel, which opportunity to comment shall include an
absolute right to control or contest disclosure if the applicable Selling Holder
reasonably believes that it may be subject to controlling person liability under
applicable securities laws with respect thereto.

                  4.2. Subject to Section 2.1(ii), prepare and file with the
Commission such amendments and supplements to such registration statement and
the prospectus used in connection with such registration statement as may be
necessary to comply with the provisions of the Securities Act and rules
thereunder with respect to the disposition of all securities covered by such
registration statement. If the registration is for an underwritten public
offering, the Company shall amend the registration statement or supplement the
prospectus whenever required by the terms of the underwriting agreement entered
into pursuant to Section 5.2. Subject to Rule 415 under the Securities Act and
Section 2.1(ii), if the registration statement is a Shelf Registration, the
Company shall amend the registration statement or supplement the prospectus so
that it will remain current and in compliance with the requirements of the
Securities Act for two years after its effective date, and if during such period
any event or development occurs as a result of which the registration statement
or prospectus contains a misstatement of a material fact or omits to state a
material fact required to be stated therein or necessary to make the statements

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therein not misleading, the Company shall promptly notify each Selling Holder,
amend the registration statement or supplement the prospectus so that each will
thereafter comply with the Securities Act and furnish to each Selling Holder of
Registerable Shares such amended or supplemented prospectus, which each such
Holder shall thereafter use in the Transfer of Registerable Shares covered by
such registration statement. Pending such amendment or supplement each such
Holder shall cease making offers or Transfers of Registerable Shares pursuant to
the prior prospectus. In the event that any Registrable Securities included in a
registration statement subject to, or required by, this Agreement remain unsold
at the end of the period during which the Company is obligated to use its
reasonable best efforts to maintain the effectiveness of such registration
statement, the Company may file a post-effective amendment to the registration
statement for the purpose of removing such Securities from registered status.

                  4.3. Furnish to each Selling Holder of Registrable Securities,
without charge, such numbers of copies of the registration statement, any
pre-effective or post-effective amendment thereto, the prospectus, including
each preliminary prospectus and any amendments or supplements thereto, in each
case in conformity with the requirements of the Securities Act and the rules
thereunder, and such other related documents as any such Selling Holder may
reasonably request in order to facilitate the disposition of Registrable
Securities owned by such Selling Holder.

                  4.4. Use the Company's reasonable best efforts (i), if
necessary, to register and qualify the securities covered by such registration
statement under such other securities or Blue Sky laws of such states or
jurisdictions as shall be reasonably requested by the Underwriters'
Representative or Agent (as applicable, or if inapplicable, the Majority Selling
Holders), and (ii) to obtain the withdrawal of any order suspending the
effectiveness of a registration statement, or the lifting of any suspension of
the qualification (or exemption from qualification) of the offer and transfer of
any of the Registrable Securities in any jurisdiction, at the earliest
practicable time; provided, however, that the Company shall not be required in
connection therewith or as a condition thereto to qualify to do business or to
file a general consent to service of process in any such states or
jurisdictions.

                  4.5. In the event of any underwritten or agented offering,
enter into and perform the Company's obligations under an underwriting or agency
agreement (including indemnification and contribution obligations of
underwriters or agents), in usual and customary form, with the managing
underwriter or underwriters of or agents for such offering. The Company shall
also reasonably cooperate with the Majority Selling Holders or Initiating
Substantial Holder, as the case may be, and the Underwriters' Representative or
Agent for such offering in the marketing of the Registerable Shares, including
making available the Company's officers, accountants, counsel, premises, books
and records for such purpose, but the Company shall not be required to incur any
material out-of-pocket expense pursuant to this sentence.

                  4.6. Promptly notify each Selling Holder of any stop order
issued or threatened to be issued by the Commission in connection therewith (and
take all reasonable actions required to prevent the entry of such stop order or
to remove it if entered).

                  4.7. Make generally available to the Company's security
holders copies of all periodic reports, proxy statements, and other information
referred to in Section 10.1 and an earnings statement satisfying the provisions
of Section 11(a) of the Securities Act no later than

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90 days following the end of the 12-month period beginning with the first month
of the Company's first fiscal quarter commencing after the effective date of
each registration statement filed pursuant to this Agreement.

                  4.8. Make available for inspection by any Selling Holder, any
underwriter participating in such offering and the representatives of such
Selling Holder and Underwriter (but not more than one firm of counsel to such
Selling Holders, which may be counsel to the Company), all financial and other
information as shall be reasonably requested by them, and provide the Selling
Holder, any underwriter participating in such offering and the representatives
of such Selling Holder and Underwriter the opportunity to discuss the business
affairs of the Company with its principal executives and independent public
accountants who have certified the audited financial statements included in such
registration statement, in each case all as necessary to enable them to exercise
their due diligence responsibility under the Securities Act; provided, however,
that information that the Company determines, in good faith, to be confidential
and which the Company advises such Person in writing, is confidential shall not
be disclosed unless such Person signs a confidentiality agreement reasonably
satisfactory to the Company or the related Selling Holder of Registrable
Securities agrees to be responsible for such Person's breach of confidentiality
on terms reasonably satisfactory to the Company.

                  4.9. Use the Company's reasonable best efforts to obtain a
so-called "comfort letter" from its independent public accountants, and legal
opinions of counsel to the Company addressed to the Selling Holders, in
customary form and covering such matters of the type customarily covered by such
letters, and in a form that shall be reasonably satisfactory to Majority Selling
Holders or the Initiating Substantial Holder, as the case be. The Company shall
furnish to each Selling Holder a signed counterpart of any such comfort letter
or legal opinion. Delivery of any such opinion or comfort letter shall be
subject to the recipient furnishing such written representations or
acknowledgments as are customarily provided by selling stockholders who receive
such comfort letters or opinions.

                  4.10. Provide and cause to be maintained a transfer agent and
registrar for all Registrable Securities covered by such registration statement
from and after a date not later than the effective date of such registration
statement.

                  4.11. Use all reasonable efforts to cause the Registrable
Securities covered by such registration statement (i) if the Common Stock is
then listed on a securities exchange or included for quotation in a recognized
trading market, to be listed on such securities exchange or included in such
trading market, and (ii) to be registered with or approved by such other United
States or state governmental agencies or authorities as may be necessary by
virtue of the business and operations of the Company to enable the Selling
Holders of Registrable Securities to consummate the disposition of such
Registrable Securities.

                  4.12. Use the Company's reasonable efforts to provide a CUSIP
number for the Registrable Securities prior to the effective date of the first
registration statement including Registrable Securities.

                  4.13. Take such other actions as are reasonably required in
order to expedite or facilitate the disposition of Registrable Securities
included in each such registration.

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                  Section 5. Holders' Obligations. It shall be a condition
precedent to the obligations of the Company to take any action pursuant to this
Agreement with respect to the Registrable Securities of any Selling Holder of
Registrable Securities that such Selling Holder shall:

                  5.1. Furnish to the Company such information regarding such
Selling Holder, the number of the Registrable Securities owned by it, and the
intended method of disposition of such securities as shall be required to effect
the registration of such Selling Holder's Registrable Securities, and to
cooperate with the Company in preparing such registration;

                  5.2. Agree to sell their Registrable Securities to the
underwriters at the same price and on substantially the same terms and
conditions as the Company or the other Persons on whose behalf the registration
statement was being filed have agreed to sell their securities, and to execute
the underwriting agreement agreed to by the Majority Selling Holders (in the
case of a registration under Section 2) or the Company and the Majority Selling
Holders (in the case of a registration under Section 3).

                  Section 6. Expenses of Registration. Expenses in connection
with registrations pursuant to this Agreement shall be allocated and paid as
follows:

                  6.1. With respect to each Demand Registration and Shelf
Registration, the Company shall bear and pay all expenses incurred in connection
with any registration, filing, or qualification of Registrable Securities with
respect to such Demand Registrations for each Selling Holder (which right may be
assigned to any Person to whom Registrable Securities are Transferred as
permitted by Section 8), including all registration, filing and National
Association of Securities Dealers, Inc. fees, all fees and expenses of complying
with securities or blue sky laws, all word processing, duplicating and printing
expenses, messenger and delivery expenses, the reasonable fees and disbursements
of counsel for the Company, and of the Company's independent public accountants,
including the expenses of "cold comfort" letters required by or incident to such
performance and compliance, and, if counsel to the Company is not acting in such
capacity, the reasonable fees and disbursements (up to $25,000) of one firm of
counsel for the Selling Holders of Registrable Securities (selected by Demanding
Holders owning a majority of the Registrable Securities owned by Demanding
Holders to be included in a Demand Registration or by the Initiating Substantial
Holder, as the case may be) (the "Registration Expenses"), but excluding
underwriting discounts and commissions relating to Registrable Securities (which
shall be paid on a pro rata basis by the Selling Holders).

                  6.2. The Company shall bear and pay all Registration Expenses
incurred in connection with any Piggyback Registrations pursuant to Section 3
for each Selling Holder (which right may be Transferred to any Person to whom
Registrable Securities are Transferred as permitted by Section 8), but excluding
underwriting discounts and commissions relating to Registrable Securities (which
shall be paid on a pro rata basis by the Selling Holders).

                  6.3. Any failure of the Company to pay any Registration
Expenses as required by this Section 6 shall not relieve the Company of its
obligations under this Agreement.

                  Section 7. Indemnification; Contribution. If any Registrable
Securities are included in a registration statement under this Agreement:

                                       12

<PAGE>   13

                  7.1. To the extent permitted by applicable law, the Company
shall indemnify and hold harmless each Selling Holder, each Person, if any, who
controls such Selling Holder within the meaning of the Securities Act, and each
officer, director, partner, principal and employee of such Selling Holder and
such controlling Person, against any and all losses, claims, damages,
liabilities and expenses (joint or several), including attorneys' fees and
disbursements and expenses of investigation, incurred by such party pursuant to
any actual or threatened action, suit, proceeding or investigation, or to which
any of the foregoing Persons may become subject under the Securities Act, the
Exchange Act or other federal or state laws, insofar as such losses, claims,
damages, liabilities and expenses arise out of or are based upon any of the
following statements, omissions or violations (collectively a "Violation"):

                  (i) Any untrue statement or alleged untrue statement of a
material fact contained in such registration statement, including any
preliminary prospectus or final prospectus contained therein, or any amendments
or supplements thereto;

                  (ii) The omission or alleged omission to state therein a
material fact required to be stated therein, or necessary to make the statements
therein not misleading; or

                  (iii) Any violation or alleged violation by the Company of the
Securities Act, the Exchange Act, any applicable state securities law or any
rule or regulation promulgated under the Securities Act, the Exchange Act or any
applicable state securities law;

provided, however, that the indemnification required by this Section 7.1 shall
not apply to amounts paid in settlement of any such loss, claim, damage,
liability or expense if such settlement is effected without the consent of the
Company (which consent shall not be unreasonably withheld), nor shall the
Company be liable in any such case for any such loss, claim, damage, liability
or expense to the extent that it arises out of or is based upon a Violation
which occurs in reliance upon and in conformity with written information
furnished to the Company by the indemnified party expressly for use in
connection with such registration. The Company shall also indemnify underwriters
and each person who controls such underwriters (within the meaning of Section 15
of the Securities Act or Section 20 of the Exchange Act) to the same extent as
provided above with respect to the indemnification of the Selling Holders;
provided, however, that the indemnity agreement contained in this Section 7
shall not apply to any underwriter to the extent that any such loss is based on
or arises out of an untrue statement or alleged untrue statement of a material
fact, or an omission or alleged omission to state a material fact, contained in
or omitted from any preliminary prospectus if the final prospectus shall correct
such untrue statement or alleged untrue statement, or such omission or alleged
omission, and a copy of the final prospectus has not been sent or given to such
person at or prior to the confirmation of sale to such person if such
underwriter was under an obligation to deliver such final prospectus and failed
to do so.

                  7.2. To the extent permitted by applicable law, each Selling
Holder shall indemnify and hold harmless the Company, each of its directors,
each of its officers who shall have signed the registration statement, each
Person, if any, who controls the Company within the meaning of the Securities
Act, any other Selling Holder, any controlling Person of any such other Selling
Holder and each officer, director, partner, principal and employee of such other
Selling Holder and such controlling Person, against any and all losses, claims,
damages, liabilities and expenses (joint and several), including attorneys' fees
and disbursements and expenses of

                                       13

<PAGE>   14

investigation, incurred by such underwriters party pursuant to any actual or
threatened action, suit, proceeding or investigation, or to which any of the
foregoing Persons may otherwise become subject under the Securities Act, the
Exchange Act or other federal or state laws, insofar as such losses, claims,
damages, liabilities and expenses arise out of or are based upon any Violation,
in each case to the extent (and only to the extent) that such Violation occurs
in reliance upon and in conformity with written information furnished by such
Selling Holder expressly for use in connection with such registration; provided,
however, that (x) the indemnification required by this Section 7.2 shall not
apply to amounts paid in settlement of any such loss, claim, damage, liability
or expense if settlement is effected without the consent of the relevant Selling
Holder of Registrable Securities, which consent shall not be unreasonably
withheld, and (y) in no event shall the amount of any indemnity under this
Section 7.2 exceed the gross proceeds from the applicable offering received by
such Selling Holder. The Selling Holders shall also indemnify underwriters and
each person who controls such underwriters (within the meaning of Section 15 of
the Securities Act or Section 20 of the Exchange Act) to the same extent as
provided above with respect to the indemnification of the Company; provided,
however, that the indemnity agreement contained in this Section 7 shall not
apply to any underwriter to the extent that any such loss is based on or arises
out of an untrue statement or alleged untrue statement of a material fact, or an
omission or alleged omission to state a material fact, contained in or omitted
from any preliminary prospectus if the final prospectus shall correct such
untrue statement or alleged untrue statement, or such omission or alleged
omission, and a copy of the final prospectus has not been sent or given to such
person at or prior to the confirmation of sale to such person if such
underwriter was under an obligation to deliver such final prospectus and failed
to do so.

                  7.3. Promptly after receipt by an indemnified party under this
Section 7 of notice of the commencement of any action, suit, proceeding,
investigation or threat thereof made in writing for which such indemnified party
may make a claim under this Section 7, such indemnified party shall deliver to
the indemnifying party a written notice of the commencement thereof and the
indemnifying party shall have the right to participate in, and, to the extent
the indemnifying party so desires, jointly with any other indemnifying party
similarly noticed, to assume the defense thereof with counsel mutually
satisfactory to the parties. The failure to deliver written notice to the
indemnifying party within a reasonable time following the commencement of any
such action, if materially prejudicial to its ability to defend such action,
shall relieve such indemnifying party of any liability to the indemnified party
under this Section 7 to the extent of such material prejudice, but shall not
relieve the indemnifying party of any liability that it may have to any
indemnified party otherwise than pursuant to this Section 7. Any fees and
expenses incurred by the indemnified party (including any fees and expenses
incurred in connection with investigating or preparing to defend such action or
proceeding) shall be paid to the indemnified party, as incurred, within thirty
(30) days of written notice thereof to the indemnifying party. Any such
indemnified party shall have the right to employ separate counsel in any such
action, claim or proceeding and to participate in the defense thereof, but the
fees and expenses of such counsel shall be borne by such indemnified party
unless (i) the indemnifying party has agreed to pay such fees and expenses or
(ii) the indemnifying party shall have failed to promptly assume the defense of
such action, claim or proceeding or (iii) the named parties to any such action,
claim or proceeding (including any impleaded parties) include both such
indemnified party and the indemnifying party, and such indemnified party shall
have been advised by counsel that there may be one or more legal defenses
available to it which are

                                       14

<PAGE>   15

different from or in addition to those available to the indemnifying party and
that the assertion of such defenses would create a conflict of interest such
that counsel employed by the indemnifying party could not faithfully represent
the indemnified party (in which case, if such indemnified party notifies the
indemnifying party in writing that it elects to employ separate counsel at the
expense of the indemnifying party, the indemnifying party shall not have the
right to assume the defense of such action, claim or proceeding on behalf of
such indemnified party, it being understood, however, that the indemnifying
party shall not, in connection with any one such action, claim or proceeding or
separate but substantially similar or related actions, claims or proceedings in
the same jurisdiction arising out of the same general allegations or
circumstances, be liable for the reasonable fees and expenses of more than one
separate firm of attorneys (together with appropriate local counsel) at any time
for all such indemnified parties, unless in the reasonable judgment of such
indemnified party a conflict of interest may exist between such indemnified
party and any other of such indemnified parties with respect to such action,
claim or proceeding, in which event the indemnifying party shall be obligated to
pay the fees and expenses of such additional counsel or counsels). No
indemnifying party shall be liable to an indemnified party for any settlement of
any action, proceeding or claim effected without the written consent of the
indemnifying party, which consent shall not be unreasonably withheld.

                  7.4. If the indemnification required by this Section 7 from
the indemnifying party is unavailable to an indemnified party hereunder in
respect of any losses, claims, damages, liabilities or expenses referred to in
this Section 7:

                  (i) The indemnifying party, in lieu of indemnifying such
indemnified party, shall contribute to the amount paid or payable by such
indemnified party as a result of such losses, claims, damages, liabilities or
expenses in such proportion as is appropriate to reflect the relative fault of
the indemnifying party and indemnified parties in connection with the actions
which resulted in such losses, claims, damages, liabilities or expenses, as well
as any other relevant equitable considerations. The relative fault of such
indemnifying party and indemnified parties shall be determined by reference to,
among other things, whether any Violation has been committed by, or relates to
information supplied by, such indemnifying party or indemnified parties, and the
parties' relative intent, knowledge, access to information and opportunity to
correct or prevent such Violation. The amount paid or payable by a party as a
result of the losses, claims, damages, liabilities and expenses referred to
above shall be deemed to include, subject to the limitations set forth in
Section 7.1 and Section 7.2, any legal or other fees or expenses reasonably
incurred by such party in connection with any investigation or proceeding.

                  (ii) The parties hereto agree that it would not be just and
equitable if contribution pursuant to this Section 7.4 were determined by pro
rata allocation or by any other method of allocation which does not take into
account the equitable considerations referred to in Section 7.4(i). No Person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any Person who was
not guilty of such fraudulent misrepresentation.

                  7.5. If indemnification is available under this Section 7, the
indemnifying parties shall indemnify each indemnified party to the full extent
provided in this Section 7 without regard to the relative fault of such
indemnifying party or indemnified party or any other equitable consideration
referred to in Section 7.4.

                                       15

<PAGE>   16

                  7.6. The obligations of the Company and the Selling Holders of
Registrable Securities under this Section 7 shall survive the completion of any
offering of Registrable Securities pursuant to a registration statement under
this Agreement, and otherwise.

                  Section 8. Transfer of Registration Rights. Rights with
respect to Registrable Securities may be Transferred to any Person in connection
with the Transfer to such Person of a number of Registrable Securities equal to
5% or more of the Registrable Securities outstanding on the date of this
Agreement, if (x) any such Transferee shall have executed and delivered to the
Secretary of the Company a properly completed agreement substantially in the
form of Exhibit A, and (y) the Transferor shall have delivered to the Secretary
of the Company, no later than 15 days following the date of the Transfer,
written notification of such Transfer setting forth the name of the Transferor,
name and address of the Transferee, and the number of Registrable Securities
which shall have been so Transferred.

                  Section 9. Holdback. Subject to such exceptions as may be
agreed between the Holders and the Underwriters' Representative or Agent, each
Holder entitled pursuant to this Agreement to have Registrable Securities
included in a registration statement prepared pursuant to this Agreement, if so
requested by the Underwriters' Representative or Agent in connection with an
offering of any Registrable Securities, shall not effect any public sale or
distribution of shares of Common Stock or any securities convertible into or
exchangeable or exercisable for shares of Common Stock, including a sale
pursuant to Rule 144 under the Securities Act (except as part of such
underwritten or agented registration), during the 180-day period (or such other
period as may be agreed between the Holder and such Underwriters' Representative
or Agent) beginning on the date such registration statement is declared
effective under the Securities Act by the Commission, provided that such Holder
is timely notified of such effective date in writing by the Company or such
Underwriters' Representative or Agent; and provided, further, that if the
executive officers and directors of the Company are subject to a "holdback"
period in connection with such offering that is shorter than 180 days, then the
Holders' holdback period shall be shortened to such shorter period. In order to
enforce the foregoing covenant, the Company shall be entitled to impose
stop-transfer instructions with respect to the Registrable Securities of each
Holder until the end of such period.

                  Section 10. Covenants of the Company. The Company hereby
agrees and covenants as follows:

                  10.1. The Company shall file as and when applicable, on a
timely basis, all reports required to be filed by it under the Exchange Act.

                  10.2. The Company shall not, and shall not permit its majority
owned subsidiaries to, effect any public sale or distribution of any shares of
Common Stock or any securities convertible into or exchangeable or exercisable
for shares of Common Stock, during the 180-day period beginning on the
commencement of a public distribution of the Registrable Securities pursuant to
any registration statement prepared pursuant to this Agreement (other than by
the Company pursuant to such registration if the registration is pursuant to
Section 2). The Company shall not effect any registration of its securities
(other than on Form S-4, Form S-8, or any successor forms to such forms or
pursuant to such other registration rights agreements as may be approved in
writing by the Majority Selling Holders or the Initiating Substantial Holder, as
the case may be), or effect any public or private sale or distribution of any of
its securities,

                                       16

<PAGE>   17

including a sale pursuant to Regulation D under the Securities Act, whether on
its own behalf or at the request of any holder or holders of such securities
from the date of a request for a Demand Registration pursuant to Section 2.1
until the earlier of (x) 180 days following the date as of which all securities
covered by such Demand Registration statement shall have been Transferred, and
(y) 180 days following the effective date of such Demand Registration statement,
unless the Company shall have previously notified in writing all Selling Holders
of the Company's desire to do so, and Selling Holders owning a majority of the
Registrable Securities or the Underwriters' Representative, if any, shall have
consented thereto in writing.

                  Section 11. Amendment, Modification and Waivers; Further
Assurances.

                  (i) This Agreement may be amended with the consent of the
Company and Holders owning Registrable Securities possessing a majority in
number of such Registrable Securities then outstanding.

                  (ii) No waiver of any breach of the terms or conditions of
this Agreement shall operate as a waiver of any other breach of such terms and
conditions or any other term or condition, nor shall any failure to enforce any
provision hereof operate as a waiver of such provision or of any other provision
hereof. No written waiver hereunder, unless it by its own terms explicitly
provides to the contrary, shall be construed to effect a continuing waiver of
the provisions being waived and no such waiver in any instance shall constitute
a waiver in any other instance or for any other purpose or impair the right of
the party against whom such waiver is claimed in all other instances or for all
other purposes to require full compliance with such provision.

                  (iii) Each of the parties hereto shall execute all such
further instruments and documents and take all such further action as any other
party hereto may reasonably require in order to effectuate the terms and
purposes of this Agreement.

                  Section 12. Assignment; Benefit. This Agreement and all of the
provisions hereof shall be binding upon and shall inure to the benefit of the
parties hereto and their respective heirs, assigns, executors, administrators or
successors. A Holder may Transfer its rights hereunder to a successor in
interest to the Registrable Securities owned by such assignor only as permitted
by Section 8.

                  Section 13. Miscellaneous.

                  13.1. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING
REGARD TO THE CONFLICT OF LAWS PRINCIPLES THEREOF.

                  13.2. Notices. All notices and requests given pursuant to this
Agreement shall be in writing and shall be made by hand-delivery, first-class
mail (registered or certified, return receipt requested), confirmed facsimile or
overnight air courier guaranteeing next business day delivery to the relevant
address specified on Schedule 1 to this Agreement or in the relevant agreement
in the form of Exhibit A whereby such party became bound by the provisions of
this Agreement. Except as otherwise provided in this Agreement, the date of each
such notice and

                                       17
<PAGE>   18

request shall be deemed to be, and the date on which each such notice and
request shall be deemed given shall be: at the time delivered, if personally
delivered or mailed; when receipt is acknowledged, if sent by facsimile; and the
next business day after timely delivery to the courier, if sent by overnight air
courier guaranteeing next business day delivery.

                  13.3. Entire Agreement; Integration. This Agreement supersedes
all prior agreements between or among any of the parties hereto with respect to
the subject matter contained herein and therein, and such agreements embody the
entire understanding among the parties relating to such subject matter.

                  13.4. Injunctive Relief. Each of the parties hereto
acknowledges that in the event of a breach by any of them of any material
provision of this Agreement, the aggrieved party may be without an adequate
remedy at law. Each of the parties therefore agrees that in the event of such a
breach hereof the aggrieved party may elect to institute and prosecute
proceedings in any court of competent jurisdiction to enforce specific
performance or to enjoin the continuing breach hereof. By seeking or obtaining
any such relief, the aggrieved party shall not be precluded from seeking or
obtaining any other relief to which it may be entitled.

                  13.5. Section Headings. Section headings are for convenience
of reference only and shall not affect the meaning of any provision of this
Agreement.

                  13.6. Counterparts. This Agreement may be executed in any
number of counterparts, each of which shall be an original, and all of which
shall together constitute one and the same instrument.

                  13.7. Severability. If any provision of this Agreement shall
be invalid or unenforceable, such invalidity or unenforceability shall not
affect the validity and enforceability of the remaining provisions of this
Agreement, unless the result thereof would be unreasonable, in which case the
parties hereto shall negotiate in good faith as to appropriate amendments
hereto.

                  13.8. Filing. A copy of this Agreement and of all amendments
thereto shall be filed at the principal executive office of the Company with the
Secretary of the Company.

                  13.9. Termination. This Agreement may be terminated at any
time by a written instrument signed by the parties hereto. Unless sooner
terminated in accordance with the preceding sentence, this Agreement (other than
Section 7 hereof) shall terminate in its entirety on the earlier to occur of (i)
the ten (10) year anniversary of the date of this Agreement, and (ii) such date
as there shall be no Registrable Securities outstanding.

                  13.10. Attorneys' Fees. In any action or proceeding brought to
enforce any provision of this Agreement, or where any provision hereof is
validly asserted as a defense, the successful party shall be entitled to recover
reasonable attorneys' fees (including any fees incurred in any appeal) in
addition to its costs and expenses and any other available remedy.

                  13.11. No Third Party Beneficiaries. Nothing herein expressed
or implied is intended to confer upon any Person (including the Qualified
Partners), other than the parties

                                       18

<PAGE>   19

hereto or their respective permitted assigns, successors, heirs and legal
representatives, any rights, remedies, obligations or liabilities under or by
reason of this Agreement.

                                       19

<PAGE>   20

                  IN WITNESS WHEREOF, this Agreement has been duly executed by
the parties hereto as of the date first written above.

                                    KPMG LLP

                                    By: /s/ Robert W. Alspaugh
                                       ---------------------------------------
                                           Name: Robert W. Alspaugh
                                           Title: Deputy Chairman

                                    KPMG CONSULTING, INC.

                                    By: /s/ Roderick C. McGeary
                                       ---------------------------------------
                                           Name: Roderick C. McGeary
                                           Title: Co-Chief Executive Officer,
                                                  Co-President

                               Signature Page to

                         Registration Rights Agreement

                                       20<PAGE>   1
                                                                   EXHIBIT 10.11

                            STOCK PURCHASE AGREEMENT

                                  by and among

                              CISCO SYSTEMS, INC.,

                                    KPMG LLP

                                       and

                              KPMG CONSULTING, INC.

                          Dated as of December 29, 1999

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>

                                                                                                               Page

<S>              <C>                                                                                          <C>
ARTICLE I PURCHASE AND SALE OF SECURITIES.........................................................................1

         1.1      Purchase and Sale of the Securities.............................................................1
         1.2      The Closing.....................................................................................1
         1.3      Deliveries at the Closing.......................................................................2

ARTICLE II REPRESENTATIONS AND WARRANTIES OF THE COMPANY AND KPMG.................................................2

         2.1      Organization....................................................................................2
         2.2      Authorization, Validity and Enforceability......................................................2
         2.3      No Conflicts....................................................................................3
         2.4      Consents and Approvals..........................................................................3
         2.5      Capitalization..................................................................................4
         2.6      Title to Securities.............................................................................4
         2.7      Subsidiaries....................................................................................5
         2.8      Corporate Documents.............................................................................6
         2.9      Financial Statements............................................................................6
         2.10     Liabilities.....................................................................................6
         2.11     Absence of Changes..............................................................................7
         2.12     Legal Proceedings...............................................................................9
         2.13     Compliance with Laws............................................................................9
         2.14     Licenses and Permits............................................................................9
         2.15     Contracts......................................................................................10
         2.16     Property.......................................................................................11
         2.17     Intellectual Property..........................................................................11
         2.18     Employee Benefit Plans.........................................................................13
         2.19     Employee Relations.............................................................................13
         2.20     Insurance Coverage.............................................................................13
         2.21     Tax Matters....................................................................................13
         2.22     Environmental Matters..........................................................................14
         2.23     Exemption from Registration....................................................................14
         2.24     Transaction Document Representations...........................................................15
         2.25     Use of Proceeds................................................................................15
         2.26     Year 2000 Compliance...........................................................................15
         2.27     No Brokers.....................................................................................16
         2.28     Full Disclosure................................................................................16

ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE INVESTOR.......................................................17

         3.1      Organization of the Investor...................................................................17
         3.2      Authorization, Validity and Enforceability.....................................................17
         3.3      No Conflicts...................................................................................17
         3.4      Consents and Approvals.........................................................................18
         3.5      Legal Proceedings..............................................................................18
</TABLE>

                                       i

<PAGE>   3
                               TABLE OF CONTENTS

<TABLE>
<CAPTION>

                                                                                                               Page

<S>              <C>                                                                                          <C>
         3.6      Investment Intent..............................................................................18
         3.7      Financing......................................................................................18
         3.8      No Brokers.....................................................................................19

ARTICLE IV COVENANTS.............................................................................................19

         4.1      Conduct of Business............................................................................19
         4.2      Access to Information; Consultation; Confidentiality...........................................20
         4.3      Cooperation and Reasonable Efforts.............................................................21
         4.4      Consents and Approvals.........................................................................22
         4.5      Notification of Certain Matters................................................................22
         4.6      Public Announcements...........................................................................22
         4.7      No Solicitation................................................................................22
         4.8      Interim Financial Statements and Investment Reports............................................23
         4.9      Securities Legends.............................................................................24
         4.10     Exclusive Relationship.........................................................................25
         4.11     Additional Capital.............................................................................27
         4.12     Fees of Counsel................................................................................27

ARTICLE V CONDITIONS TO THE OBLIGATION OF THE INVESTOR TO CLOSE..................................................28

         5.1      Representations Warranties and Covenants.......................................................28
         5.2      Consents.......................................................................................28
         5.3      No Injunction or Illegality....................................................................28
         5.4      HSR Act........................................................................................28
         5.5      Opinion of Counsel to the Company..............................................................28
         5.6      Certificates...................................................................................28
         5.7      Certificate of Designation.....................................................................29
         5.8      Election of Directors..........................................................................29
         5.9      Alliance Agreements............................................................................29
         5.10     The Investor Rights Agreement..................................................................29
         5.11     Reservation of Common Stock upon Conversion of the Series A Preferred Stock....................29
         5.12     Separation.....................................................................................29
         5.13     Transfer Taxes.................................................................................29
         5.14     No Material Adverse Change.....................................................................29

ARTICLE VI CONDITIONS TO THE OBLIGATION OF THE COMPANY AND KPMG TO CLOSE.........................................31

         6.1      Representations, Warranties and Covenants......................................................31
         6.2      Consents.......................................................................................31
         6.3      No Injunction or Illegality....................................................................31
         6.4      HSR Act........................................................................................31
         6.5      Certificates...................................................................................31
         6.6      Certificate of Designation.....................................................................31
</TABLE>

                                       ii

<PAGE>   4

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>

                                                                                                               Page

<S>               <C>                                                                                         <C>
         6.7      Alliance Agreements............................................................................32
         6.8      Opinion of Counsel to the Investor.............................................................32
         6.9      Separation.....................................................................................32
         As of the Closing, the Separation shall have been consummated...........................................32

ARTICLE VII SURVIVAL; INDEMNIFICATION............................................................................33

         7.1      Survival.......................................................................................33
         7.2      Indemnification................................................................................33
         7.3      Limitations....................................................................................35

ARTICLE VIII TERMINATION.........................................................................................36

         8.1      Termination of Agreement.......................................................................36
         8.2      Effect of Termination..........................................................................36

ARTICLE IX DEFINITIONS...........................................................................................36

         9.1      Definitions....................................................................................36

ARTICLE X MISCELLANEOUS..........................................................................................42

         10.1     Notices........................................................................................42
         10.2     Fees and Expenses..............................................................................44
         10.3     Specific Performance...........................................................................44
         10.4     Entire Agreement; Waivers and Amendments.......................................................44
         10.5     Assignment; Binding Effect.....................................................................44
         10.6     Severability...................................................................................45
         10.7     No Third Party Beneficiaries...................................................................45
         10.8     Governing Law..................................................................................45
         10.9     Interpretation.................................................................................45
         10.10    Captions.......................................................................................45
         10.11    Counterparts...................................................................................45
</TABLE>

                                      iii

<PAGE>   5

                                    EXHIBITS

Exhibit A         Form of Certificate of Designation

Exhibit B         Form of Investor Rights Agreement

<PAGE>   6

                            STOCK PURCHASE AGREEMENT

                  THIS STOCK PURCHASE AGREEMENT (this "Agreement") is made and
entered into as of December 29, 1999, by and among CISCO SYSTEMS, INC., a
California corporation (the "Investor") , KPMG LLP, a registered Delaware
limited liability partnership ("KPMG"), and KPMG CONSULTING, INC., a Delaware
corporation and a wholly owned subsidiary of KPMG (the "Company"). Certain
capitalized terms used herein shall have the meanings set forth in Article IX.

                                 R E C I T A L S

                  WHEREAS, the Investor wishes to purchase from the Company, and
the Company wishes to issue and sell to the Investor, 5,000,000 shares (the
"Series A Shares") of Series A Mandatorily Redeemable Convertible Preferred
Stock, par value $0.01 per share, of the Company ("Series A Preferred Stock"),
having an aggregate liquidation preference of $1,050,000,000 and the other
rights, preferences and terms set forth in the form of Certificate of
Designation of Series A Mandatorily Redeemable Convertible Preferred Stock of
the Company, attached hereto as Exhibit A (the "Certificate of Designation"),
all upon the terms and subject to the conditions set forth herein; and

                  WHEREAS, following issuance thereof, the Series A Shares shall
be convertible into shares of the Company's Common Stock, par value $.01 per
share ("Common Stock"); and

                  WHEREAS, concurrently herewith, the Company, KPMG Consulting,
LLC, a Delaware limited liability company (the "LLC"), and KPMG are entering
into a separation agreement (the "Separation Agreement"), wherein the Consulting
Business shall be transferred to the Company (the "Separation");

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

                                   ARTICLE I

                         PURCHASE AND SALE OF SECURITIES

                  1.1   Purchase and Sale of the Securities. Upon the terms and
subject to the conditions set forth in this Agreement, the Investor agrees to
purchase from the Company, and the Company agrees to (and KPMG agrees to cause
the Company to) issue and sell to the Investor, the Series A Shares, for an
aggregate cash purchase price of $1,050,000,000 (the "Purchase Price").

                  1.2   The Closing. Subject to the satisfaction or waiver of
all of the conditions to closing set forth in Articles V and VI, the closing
(the "Closing") of the purchase and sale of

<PAGE>   7

the Series A Shares hereunder shall take place at the offices of Brobeck,
Phleger & Harrison LLP, Two Embarcadero Place, 2200 Geng Road, Palo Alto,
California 94303 at 10:00 a.m., Pacific Standard Time, on January 31, 2000, or,
if later, on the third Business Day after the satisfaction or waiver of the
conditions set forth in Articles V and VI, or at such other time, date or place
as may be mutually agreed upon by the parties hereto. The date on which the
Closing occurs is referred to herein as the "Closing Date."

                  1.3   Deliveries at the Closing. At the Closing, (a) the
Company shall, and KPMG shall cause the Company to, issue and deliver to the
Investor certificates, in definitive form, representing the Series A Shares
registered in the name of the Investor or in the name of a wholly owned
Subsidiary of the Investor designated in writing to the Company at least two (2)
Business Days prior to the Closing Date, together with all other documents
required hereunder to be delivered by the Company to the Investor at the
Closing, against (b) the payment by the Investor to the Company of the Purchase
Price, by wire transfer of immediately available funds to an account or accounts
designated by the Company in a written notice delivered to the Investor not
later than two (2) Business Days prior to the Closing Date and the delivery to
the Company of all documents required hereunder to be delivered by the Investor
to the Company at the Closing.

                                   ARTICLE II

             REPRESENTATIONS AND WARRANTIES OF THE COMPANY AND KPMG

                  Except as disclosed in that section of the document of even
date herewith and delivered by KPMG and the Company to the Investor prior to the
execution and delivery of this Agreement (the "Disclosure Schedule")
corresponding to the Section of this Agreement to which any of the following
representations or warranties pertain, KPMG and the Company, jointly and
severally, hereby represent and warrant to the Investor, as of the date of this
Agreement and as of the Closing Date, as follows:

                  2.1   Organization. KPMG is a limited liability partnership,
and the Company is a corporation, and each of KPMG and the Company is duly
organized, validly existing and in good standing under the laws of the
jurisdiction of its organization, and has full partnership or corporate (as the
case may be) power and authority to own, lease and operate its assets and
Properties and to conduct the Consulting Business as currently being conducted.
KPMG is, and the Company will at the Closing be, duly qualified and in good
standing as a foreign partnership or corporation (as the case may be) in all
jurisdictions in which the nature of the Consulting Business or the ownership of
its Properties makes such qualification necessary, except where the failure to
be so qualified or in good standing would not, individually or in the aggregate
together with all other such failures, have a Material Adverse Effect.

                  2.2   Authorization, Validity and Enforceability. The
execution and delivery and performance by each of the Company and KPMG of this
Agreement and each other Transaction Document to which it is a party and the
consummation of the transactions contemplated hereby and thereby by the Company
and KPMG have been duly and validly

                                       2.

<PAGE>   8

authorized by all necessary corporate or partnership (as the case may be) action
on the part of the Company and KPMG and no other corporate or partnership
proceeding on the part of the Company or KPMG is necessary to authorize the
execution, delivery and performance of this Agreement or any other Transaction
Document to which either is a party or the consummation of the transactions
contemplated hereby or thereby. This Agreement has been duly executed and
delivered by the Company and KPMG and (assuming the due authorization, execution
and delivery by the Investor) constitutes the legal, valid and binding
obligation of each of the Company and KPMG, and each other Transaction Document
to which the Company or KPMG is a party is or will, upon due execution and
delivery thereof (assuming the due authorization, execution and delivery thereof
by the other parties thereto), constitute the legal, valid and binding
obligation of each of the Company and KPMG, in each case enforceable against the
Company and KPMG in accordance with its terms, except to the extent such
enforceability may be limited by the effect of any applicable bankruptcy,
reorganization, insolvency, moratorium or similar laws affecting creditors'
rights generally and general principles of equity or public policy (regardless
of whether such enforceability is considered in a proceeding in equity or at
law).

                  2.3   No Conflicts. Assuming all Consents described in clauses
(a) through (c) of Section 2.4 are obtained, made or given (as the case may be),
the execution and delivery by each of the Company and KPMG of this Agreement,
the Certificate of Designation and each other Transaction Document to which it
is a party do not, and the performance by each of the Company and KPMG of its
obligations hereunder and thereunder and the consummation of the transactions
contemplated hereby and thereby will not, conflict with, result in any breach or
violation of, constitute a default under (or an event which with the giving of
notice or the lapse of time or both would constitute a default under), give rise
to any right of termination or acceleration of any right or obligation of any of
the Company, KPMG or their respective Subsidiaries or the Consulting Business
under, or result in the creation or imposition of any Lien or Encumbrance upon
any assets or Properties of the Company or any of its Subsidiaries or the
Consulting Business by reason of the terms of, or result in any other Material
consequence under, (a) the certificate of incorporation, by-laws, partnership
agreement or other charter or organizational documents of the Company, KPMG or
any of their respective Subsidiaries, (b) any Contract to which the Company,
KPMG or any of their respective Subsidiaries is a party or by or to which any of
them or their assets or Properties or the Consulting Business may be bound or
subject, or (c) any applicable order, writ, judgment, injunction, award, decree,
Permit, law, statute, ordinance, rule or regulation other than any such
conflict, breach, violation, default, termination, acceleration, Lien or
Encumbrance or consequence which in the case of clauses (b) and (c) only, would
not, individually or in the aggregate together with all such other conflicts,
breaches, violations, defaults, terminations, accelerations, Liens or
Encumbrances or consequences have a Material Adverse Effect.

                  2.4   Consents and Approvals. Except (a) as required under the
HSR Act, (b) for the filing of the Certificate of Designation with the Secretary
of State of the State of Delaware and (c) where the failure to obtain, make or
give such Consent would not, individually or in the aggregate, have a Material
Adverse Effect, no consent, approval, authorization, license or order of,
registration or filing with, or notice to, any federal, state, local, foreign or
other Governmental Entity or any other Person (collectively, "Consents") is
necessary to be obtained, made or given by the Company, KPMG or any of their
respective Subsidiaries or the Consulting Business in connection with the
execution and delivery by the Company of this Agreement, the

                                       3.

<PAGE>   9

Certificate of Designation or any other Transaction Document to which the
Company is a party, the performance by the Company of its obligations hereunder
and thereunder, and the consummation of the transactions contemplated hereby and
thereby.

                  2.5   Capitalization.

                        (a)   Immediately prior to the Closing, the authorized
capital stock of the Company will consist solely of (i) 1,000,000,000 shares of
Common Stock, not more than 390,000,000 of which will be issued and outstanding,
and (ii) 10,000,000 shares of preferred stock, par value $0.01 per share
("Preferred Stock"), of which the Series A Shares shall have been designated as
Series A Preferred Stock and none of which shares of Series A Preferred Stock
will be issued or outstanding. Effective upon the filing of the Certificate of
Designation and upon consummation of the Closing, all of the authorized shares
of Series A Preferred Stock will be issued and outstanding and sold to the
Investor and no other voting securities of the Company will be issued or
outstanding except as set forth in the immediately preceding sentence. Upon the
conversion of the outstanding shares of Series A Preferred Stock as provided
pursuant to the Certificate of Designation, no such shares shall be reissuable.
Except (i) as set forth above in this paragraph, (ii) for up to 80,000,000
shares of Common Stock issued or issuable upon exercise of options granted under
the Company's stock-based employee benefit plans and (iii) up to 25,000,000
shares of Common Stock issuable in consideration for the acquisition of
consulting businesses from entities which are members, licensees or sublicensees
of KPMG International or an affiliate of the foregoing (each a "KPMG Firm"), no
common stock, preferred stock, equity interest or other equity or equity
derivative securities of any kind of the Company or relating to the Consulting
Business, are (or at the Closing will be) authorized, issued or outstanding. If
the Company adopts stock-based employee benefit plans prior to the Closing, such
plans shall be reasonably acceptable to the Investor.

                        (b)   The Company has not issued any securities in
violation of any preemptive or similar rights. Except as provided in (i) this
Agreement (including the conversion of the Series A Preferred Stock), (ii) for
up to 80,000,000 shares of Common Stock issued or issuable upon exercise of
options granted under the Company's stock-based employee benefit plans, (iii) up
to 25,000,000 shares of Common Stock issuable in consideration for the
acquisition of consulting businesses from KPMG Firms, (iv) the Certificate of
Designation and the Investor Rights Agreement and (v) the Separation Agreement,
there are no subscriptions, options, warrants, calls, commitments, preemptive
rights or other rights of any kind (absolute, contingent or otherwise) to
purchase or otherwise receive, nor any securities or instruments of any kind
convertible into or exchangeable for, any capital stock (including, without
limitation, outstanding, authorized but unissued, unauthorized, treasury or
other shares thereof) or other equity interest, equity security or equity
derivative security of the Company.

                  2.6   Title to Securities.

                        (a)   The Series A Shares, when issued in accordance
with this Agreement, will be duly authorized, validly issued, fully paid,
non-assessable and free and clear of any Liens or Encumbrances (except for (i)
those expressly set forth in this Agreement, the Certificate of Designation or
the Investor Rights Agreement and applicable Federal and state securities laws
and regulations and (ii) any Liens or Encumbrances created by the Investor).

                                       4.

<PAGE>   10

Assuming the filing of the Certificate of Designation, the issuance, sale and
delivery of the Series A Shares as contemplated by this Agreement are not
subject to any preemptive right or right of first refusal. Upon such issuance,
the Investor will acquire good and marketable title to each of the Series A
Shares, free and clear of any Lien or Encumbrance, and will be entitled to all
the rights and benefits of a holder of such securities, subject to the
parenthetical exceptions set forth in clauses (i) and (ii) above in this
paragraph.

                        (b)   The Company covenants, represents and warrants to
the Investor that, at all times from and after the Closing, the Company will
have authorized and will reserve and keep available solely for issuance and
delivery upon conversion of Series A Shares into shares of Common Stock, at
least the number of shares of Common Stock issuable upon such conversion of all
then outstanding Series A Shares (the "Conversion Shares"). All of the
Conversion Shares, when issued in accordance with the Certificate of
Designation, will be duly authorized, validly issued, fully paid, non-assessable
and free and clear of any Liens or Encumbrances, subject (i) to those expressly
set forth in this Agreement, the Certificate of Designation or the Investor
Rights Agreement and in applicable Federal and state securities laws and
regulations and (ii) any Liens or Encumbrances created by the Investor. Assuming
the filing of the Certificate of Designation and the issuance and delivery of
the Conversion Shares as contemplated by this Agreement, the Conversion Shares
are not subject to any preemptive right or right of first refusal (including,
without limitation, pursuant to any of the other Transaction Documents to which
the Company or KPMG are parties), other than any right of first refusal granted
by the Investor to any third party.

                  2.7   Subsidiaries.

                        (a)   Section 2.7 of the Disclosure Schedule sets forth
a true and complete list of all Material Subsidiaries of KPMG relating to the
Consulting Business (other than the Company) and all Material Subsidiaries of
the Company on the date hereof and on the Closing Date. Except for the
Subsidiaries listed in Section 2.7 of the Disclosure Schedule, at the Closing,
the Company will not, directly or indirectly, own any Material interest in any
other Person (other than (i) consulting businesses acquired from KPMG Firms or
(ii) non-controlling equity interests included in the investment portfolios of
the Company and its Subsidiaries).

                        (b)   Each of the Subsidiaries of KPMG related to the
Consulting Business is, and each of the Subsidiaries of the Company will be,
duly qualified and in good standing as a foreign corporation in all
jurisdictions in which the nature of its business or the ownership of its
Properties makes such qualification necessary, except where the failure to be so
qualified or in good standing would not, individually or in the aggregate, have
a Material Adverse Effect.

                        (c)   The Company owns or at the Closing will own all of
the outstanding capital stock, equity securities and direct or indirect equity
interests in each of the Subsidiaries required to be set forth in Section 2.7 of
the Disclosure Schedule, except where the failure to own such stock, securities
or interests would not, individually or in the aggregate, have a Material
Adverse Effect. All of the outstanding capital stock and equity securities or
interests of each Subsidiary of either the Company or KPMG (in the case of KPMG,
relating to the Consulting Business) are duly authorized, validly issued, fully
paid and nonassessable, except

                                       5.

<PAGE>   11

where the failure to be duly authorized, validly issued, fully paid, and
nonassessable would not, individually or in the aggregate, have a Material
Adverse Effect.

                        (d)   No Subsidiary of the Company or KPMG (in the case
of KPMG, relating to the Consulting Business) has issued any securities in
violation of any preemptive or similar rights, and there are no subscriptions,
options, warrants, calls, commitments, preemptive rights or other rights of any
kind (absolute, contingent or otherwise) in favor of any Person other than the
Company, KPMG or any of their respective Subsidiaries to purchase or otherwise
receive, nor any securities or instruments of any kind convertible into or
exchangeable for, any capital stock (including, without limitation, outstanding,
authorized but unissued, unauthorized, treasury or other shares thereof) or
other equity interest, equity security or equity derivative security of any such
Subsidiary of the Company, except where the existence of subscriptions, options,
warrants, calls, commitments, preemptive rights or other rights would not,
individually or in the aggregate, have a Material Adverse Effect.

                  2.8   Corporate Documents. The Company and KPMG have
heretofore delivered or, in the case of Material Subsidiaries, made available
(with reasonable specificity) to the Investor true and complete copies of the
certificate or articles of incorporation, including all amendments thereto, and
by-laws, as currently in effect, and all other charter or organization
documents, of the Company, and each of its Material Subsidiaries related to the
Consulting Business, including all entities which will be Material Subsidiaries
of the Company at the Closing (other than consulting businesses acquired from
KPMG firms). The Company and KPMG have heretofore made available to the Investor
true and complete copies of the minute books of the Company and each such
Material Subsidiary. The minute books of the Company and such Material
Subsidiaries (other than consulting businesses acquired from KPMG Firms)
accurately reflect all Material corporate actions taken at meetings, or by
written consent in lieu of meetings, of the shareholders, boards of directors
and all committees of such boards of directors of the Company. All material
corporate actions taken by the Company and such Material Subsidiaries have been
duly authorized or ratified, and no such corporate actions have been taken in
breach or violation of the certificate or articles of incorporation, by-laws or
other charter or organization documents of the Company.

                  2.9   Financial Statements. The Company and KPMG have
heretofore delivered to the Investor true and complete copies of the Financial
Statements. The Financial Statements were prepared in accordance with GAAP
consistently applied throughout the periods involved, were derived from the
books and records of KPMG and its Subsidiaries and, for the fiscal years
included therein, have been audited by Grant Thornton LLP, certified public
accountants (the "Company Auditors"), and present fairly in all material
respects the financial position of the Consulting Business at the respective
dates thereof and the results of operations of the Consulting Business for the
respective periods then ended, subject, in the case of the unaudited Financial
Statements, to normal year-end adjustments and the absence of full footnote
disclosures in accordance with GAAP.

                  2.10   Liabilities.

                        (a)   None of KPMG, the Company, any of their respective
Subsidiaries or the Consulting Business has any direct or indirect debt,
obligation, loss, damages, deficiency

                                       6.

<PAGE>   12

or other liability of any nature, whether absolute, accrued, contingent or
otherwise ("Liability" or "Liabilities," as the context may require), relating
to the Consulting Business and required by GAAP to be set forth in a financial
statement other than (i) Liabilities set forth in the Financial Statements, (ii)
Liabilities incurred by KPMG and its Subsidiaries since September 30, 1999 in
the ordinary course of business substantially consistent with past practice,
(iii) Liabilities which, individually and in the aggregate, would not have a
Material Adverse Effect, (iv) Liabilities pursuant to the Separation Agreement
and the transactions contemplated thereby, and (v) Liabilities pursuant to this
Agreement, the Transaction Documents and any of the transactions contemplated
hereby and thereby. Notwithstanding the foregoing, no representation and
warranty is made pursuant to this Section 2.10 with respect to any matter that
is specifically addressed by another representation or warranty contained in
this Article II.

                  2.11   Absence of Changes.

                        (a)   Since September 30, 1999, there has been no
Material Adverse Effect.

                        (b)   Except as set forth in Schedule 2.11 hereto and
for the transactions specifically contemplated in the Transaction Documents,
since September 30, 1999, the Consulting Business and the business of the
Company and its Subsidiaries have been conducted only in the ordinary course
substantially consistent with past practice and none of the Company, KPMG (only
in respect of the Consulting Business) or any of their Material Subsidiaries
related to the Consulting Business has:

                        (i)   amended its certificate or articles of
         incorporation, by-laws, partnership agreement, or other charter or
         organizational document, or merged with or into or consolidated with
         any other Person, subdivided or in any way reclassified any shares of
         capital stock or equity interests of the Company or any Material
         Subsidiary related to the Consulting Business or changed or agreed to
         change in any manner the rights of their respective outstanding capital
         stock or equity interests;

                        (ii)   declared, paid or set aside any sum for any
         dividends or declared or made any other distributions of any kind
         (whether in cash, stock, Property, any combination thereof or
         otherwise) in respect of the capital stock or equity interests of the
         Company or any such Material Subsidiary which is not, directly or
         indirectly, wholly owned by KPMG or the Company, or made any direct or
         indirect redemption, retirement, purchase or other acquisition of any
         shares of the capital stock or other equity interests or any bonds,
         debentures, notes, debt instruments, evidences of indebtedness for
         borrowed money or other securities of the Company or any such Material
         Subsidiary which is not, directly or indirectly, wholly owned by KPMG
         or the Company, of any kind;

                        (iii)   except in connection with the establishment of
         revolving credit facilities with commercial lenders and borrowings in
         the ordinary course of business, incurred any indebtedness for borrowed
         money or entered into any commitment to borrow money in an amount in
         excess of $50,000,000 or guarantee any Liability for borrowed money in
         an amount in excess of $50,000,000;

                                       7.

<PAGE>   13

                        (iv)   except as required by GAAP (all of which required
         changes occurring after the date hereof will be disclosed in writing to
         the Investor), made any Material change in its accounting practices or
         made any Material change in depreciation or amortization policies or
         rates adopted by it, in each case relating to the Consulting Business;

                        (v)   suffered any damage, destruction, casualty or
         loss, whether or not covered by insurance, affecting any of its
         Property, which damage, destruction, casualty or loss had or will have,
         individually or in the aggregate, a Material Adverse Effect;

                        (vi)   allowed any purchase, sale, transfer, assignment,
         lease or abandonment of any interest in any tangible or intangible
         asset or Property related to the Consulting Business, other than
         purchases, sales, transfers, assignments, leases and abandonments in
         the ordinary course of business substantially consistent with past
         practice which did not and will not, individually or in the aggregate,
         have a Material Adverse Effect;

                        (vii)   except in the ordinary course of business
         substantially consistent with past practice, entered into any Contract
         or transaction for any capital expenditure or capital contribution, in
         each case related to the Consulting Business and which requires or
         provides for payments in excess of $50,000,000 with respect to any
         individual Contract or transaction or series of related Contracts and
         transactions (excluding any purchases or sales of investment assets in
         the ordinary course of business);

                        (viii)  forgiven or permitted any cancellation of any
         claim, debt or account receivable, other than cancellations which did
         not and will not, individually or in the aggregate, have a Material
         Adverse Effect;

                        (ix)    directly or indirectly made any payment,
         discharge or satisfaction of any Liability in excess of $50,000,000 for
         borrowed money before the same became due in accordance with its terms,
         other than in the ordinary course of business substantially consistent
         with past practice;

                        (x)     except for unrealized gains or losses with
         respect to investment assets (not resulting from any write-down,
         write-off or change in the basis of valuation thereof) and except as
         required by GAAP (all of which required revaluations, write-downs and
         write-offs occurring after the date hereof will be, disclosed in
         writing to the Investor) or otherwise in the ordinary course of
         business substantially consistent with past practice, made any Material
         revaluation of any assets or Properties related to the Consulting
         Business, or Material write-down or write-off of the value of any
         assets or Properties (including, without limitation, any receivables)
         related to the Consulting Business;

                        (xi)   made any loan or advance to any Person, other
         than loans or advances made in the ordinary course of business
         substantially consistent with past practice or in any one case in an
         amount below $50,000,000;

                                       8.

<PAGE>   14

                        (xii)   except for purchases of investment assets made
         in the ordinary course of business and the acquisition of consulting
         businesses from KPMG Firms, made any acquisition of all or any
         substantial part of the assets, Properties, securities or business of
         any other Person in connection with the Consulting Business in an
         amount in excess of $50,000,000;

                        (xiii)  except in the ordinary course of business
         substantially consistent with past practice, hired any new executive
         officers related to the Consulting Business;

                        (xiv)   considered or adopted a plan of complete or
         partial liquidation, dissolution, rehabilitation, restructuring,
         recapitalization, redomestication or other reorganization; or

                        (xv)    entered into any Contract or transaction to do
         any of the foregoing.

                  2.12   Legal Proceedings. There is no action, suit, claim,
proceeding or investigation pending or, to the Knowledge of the Company and
KPMG, threatened against the Company, KPMG or any of their respective
Subsidiaries, or any of their directors, officers, assets or Properties, by or
before any court, other Governmental Entity or arbitrator relating to the
Consulting Business which, individually or in the aggregate, would have a
Material Adverse Effect. There is no outstanding order, writ, judgment,
injunction, award or decree of any court, other Governmental Entity or
arbitrator against the Company, KPMG or any of their respective Subsidiaries, or
any of their directors, officers, assets or Properties relating to the
Consulting Business, which, individually or in the aggregate, is reasonably
likely to have a Material Adverse Effect.

                  2.13   Compliance with Laws. Each of the Company, KPMG (to the
extent relating to the Consulting Business) and their respective Material
Subsidiaries related to the Consulting Business is in compliance with (a) the
terms of its certificate or articles of incorporation, by-laws, partnership
agreement or other charter or organization documents, (b) all applicable laws,
statutes, ordinances, rules, regulations, Permits or other legal requirements,
whether federal, state, local or foreign, and (c) all applicable orders, writs,
judgments, injunctions, awards and decrees of any court, other Governmental
Entity or arbitrator except in the case of each of clauses (a), (b) and (c),
where the failure to comply would not, individually or in the aggregate, have a
Material Adverse Effect. None of the Company, KPMG or any of their respective
Material Subsidiaries (related to the Consulting Business) has received any
written or, to the Knowledge of the Company and KPMG, oral notice of any
violation by the Company, KPMG (relating to the Consulting Business) or any such
Subsidiary of, or default by the Company, KPMG (relating to the Consulting
Business) or any such Subsidiary under, its certificate or articles of
incorporation, by-laws, partnership agreement or other charter or organization
document, any law, statute, ordinance, rule, regulation or other legal
requirement, any order, writ, injunction, award or decree of any court, other
Governmental Entity or arbitrator, or any of its Permits, except for such
violations or defaults which would not, individually or in the aggregate, have a
Material Adverse Effect.

                  2.14   Licenses and Permits. Each of the Company, KPMG and
their respective Subsidiaries possesses all Permits necessary for the ownership
of its assets and Properties related

                                       9.

<PAGE>   15

to the Consulting Business and the conduct of the Consulting Business, except
for Permits, the failure of which to so possess would not, individually or in
the aggregate, have a Material Adverse Effect. All such Material Permits are
valid and in full force and effect in all material respects. There is no action,
proceeding, inquiry or investigation pending or, to the Knowledge of the Company
and KPMG, threatened for or contemplating the suspension, cancellation,
revocation or nonrenewal of any such Material Permit , and neither the Company
nor KPMG has any Knowledge of any existing fact or circumstance which (with or
without notice or lapse of time or both) is reasonably likely to result in the
suspension, limitation, cancellation, revocation or nonrenewal of any such
Material Permit or any limitation of any such Material Permit which would not,
individually or in the aggregate, have a Material Adverse Effect. Neither the
Company, KPMG nor any of their respective Subsidiaries has received any written
or, to the Knowledge of the Company and KPMG, oral notice from any Governmental
Entity that the consummation of the transactions contemplated hereby will result
in the suspension, cancellation, revocation or nonrenewal of any such Material
Permit.

                  2.15  Contracts.

                        (a) Section 2.15 of the Disclosure Schedule contains a
true and complete list of all of the following Contracts relating to the
Consulting Business to which any of the Company, KPMG or their respective
Subsidiaries is a party or by or to which any of them or their assets or
Properties are or may be bound or subject, as each may have been amended,
modified or supplemented:

                        (i)   Contracts which would be required to be filed by
         the Company as an exhibit to a registration statement of the Company on
         Form S-1 if such registration statement were filed on the date hereof;
         and

                        (ii)  Contracts which are material to the Alliance as
         currently contemplated and the transactions currently contemplated by
         the Alliance Documents, or which are material to the performance of any
         of the obligations of the Company, KPMG or any Subsidiary under any of
         the Alliance Documents.

                        (b)   The Company has heretofore delivered or made
available to the Investor true and complete copies of all of the Contracts
required to be set forth in Section 2.15 of the Disclosure Schedule. Each such
Contract required to be set forth in Section 2.15 of the Disclosure Schedule
(other than the Transaction Documents) is valid and binding in accordance with
its terms except to the extent such enforceability may be limited by the effect
of any applicable bankruptcy, reorganization, insolvency, moratorium or similar
law affecting creditors' rights generally and general principles of equity or
public policy (regardless of whether such enforceability is considered in a
proceeding in equity or at law), and is in full force and effect. None of the
Company, KPMG or any of their respective Subsidiaries is in default in any
material respect with respect to any material provision of any Contract required
to be set forth in Section 2.15 of the Disclosure Schedule, nor (to the
Knowledge of the Company and KPMG) does any condition exist that with notice or
lapse of time or both would constitute such a material default thereunder. To
the Knowledge of the Company and KPMG, no other party to any Contract required
to be set forth in the Disclosure Schedule is in default in any material respect
with respect to any such Contract. No Contract required to be set forth in
Section 2.15 of the

                                      10.

<PAGE>   16

Disclosure Schedule contains any provision providing that any such other party
thereto may terminate or cancel the same by reason of the transactions
contemplated by this Agreement or any other Transaction Document (except for any
Contract in which the other party has a termination right at will or upon
notice), and no party has given any written or (to the Knowledge of the Company
and KPMG) oral notice of termination or cancellation of any such Contract or
that it intends to terminate or cancel any such Contract as a result of the
transactions contemplated hereby or thereby.

                  2.16   Property. The Properties owned or leased by the
Company, KPMG and their respective Subsidiaries are sufficient to conduct the
Consulting Business as currently conducted in all Material respects, and the
Material items of personal Properties related thereto are in adequate operating
condition and repair, normal wear and tear excepted. Each of the Company, KPMG
and their respective Subsidiaries has good and marketable title to all of its
respective Material assets and Properties related to the Consulting Business, in
each case free and clear of any Lien or Encumbrance, except (i) for assets and
Properties which have been disposed of in the ordinary course of business since
September 30, 1999, (ii) liens for Taxes not yet due or payable or which are
being contested in good faith and are not Material, (iii) mechanics, and
materialmen's liens arising in the ordinary course of business and not yet due
or delinquent or which are being contested in good faith, and (iv) Liens or
Encumbrances which individually or in the aggregate, do not have a Material
Adverse Effect.

                  2.17  Intellectual Property.

                        (a)   Each of KPMG and the Company, and each of their
respective Subsidiaries own, are licensed under or otherwise possess legally
enforceable rights to use all patents, trademarks, trade names, service marks,
copyrights, and any applications therefor, schematics, technology, know-how,
trade secrets, inventions, ideas, algorithms, processes, computer software
programs or applications (in object code form and in source code form if used by
KPMG, the Company or any of their Subsidiaries in that form), websites,
intranets, extranets, and tangible or intangible proprietary information or
material ("Intellectual Property") that are used by the Company or its
Subsidiaries in, or that KPMG proposes to contribute to the Company for use in,
the Consulting Business ("Consulting Intellectual Property"), except where the
failure to own, license or otherwise possess such rights would not have a
Material Adverse Effect. None of KPMG, the Company or their respective
Subsidiaries has granted any exclusive rights pertaining to the Consulting
Intellectual Property that would have a Material Adverse Effect.

                        (b)   There is no unauthorized use, disclosure,
infringement or misappropriation of any Consulting Intellectual Property by any
third party, including any employee or former employee of KPMG, the Company or
any of their respective Subsidiaries, except where such unauthorized use,
disclosure, infringement or misappropriation would not have a Material Adverse
Effect. Neither KPMG (as related to the Consulting Business), the Company nor
any of their respective Subsidiaries has entered into any agreement to indemnify
any other person against any charge of infringement of any Intellectual
Property, other than indemnification provisions contained in purchase orders or
license agreements arising in the ordinary course of business or indemnification
provisions that, individually or in the aggregate, will not have a Material
Adverse Effect.

                                      11.

<PAGE>   17

                  (c)   Neither KPMG (with respect to the Consulting Business),
the Company, KPMG's Subsidiaries (with respect to the Consulting Business), nor
the Company's Subsidiaries is, nor will they be as a result of the execution and
delivery of this Agreement, the Separation Documents, the Alliance Documents or
the performance of its obligations hereunder and thereunder, in breach of any
license, sublicense or other agreement relating to the Consulting Intellectual
Property or any intellectual property of any third party ("Third Party
Intellectual Property Rights"), except where such breach would not have a
Material Adverse Effect.

                  (d)   All patents, registered trademarks, registered service
marks and registered copyrights related to the Consulting Business, the Company
or their respective Subsidiaries are valid and subsisting and have not been the
subject of any judicial or administrative ruling questioning their validity,
except where any invalidity or any such ruling would not have a Material Adverse
Effect. None of KPMG (as related to the Consulting Business), the Company,
KPMG's Subsidiaries (as related to the Consulting Business), or the Company's
Subsidiaries has been sued in any suit, action or proceeding with respect to
which it has received service of process and which involves a claim of
infringement of any Third Party Intellectual Property, except for suits, actions
or proceedings which will not have a Material Adverse Effect. The manufacturing,
marketing, licensing or sale of any products or services related to the
Consulting Business do not infringe any Third Party Intellectual Property,
except where such infringement would not have a Material Adverse Effect. Neither
KPMG, the Company nor any of their respective Subsidiaries has brought any
action, suit or proceeding for infringement of Consulting Intellectual Property
or breach of any license or agreement involving Consulting Intellectual Property
against any third party, except for any action, suit or proceeding relating to
any infringement or breach which is not anticipated to have a Material Adverse
Effect.

                  (e)   KPMG (as related to the Consulting Business), the
Company, KPMG's Subsidiaries (as related to the Consulting Business), and the
Company's Subsidiaries have secured valid written assignments from all
consultants and employees who contributed to the creation or development of
Consulting Intellectual Property that KPMG, the Company or any of their
respective Subsidiaries does not already own by operation of law, except where
the failure to secure such written assignments would not have a Material Adverse
Effect.

                  (f)   KPMG, the Company and each of their respective
Subsidiaries has taken all reasonable steps consistent with prevailing industry
practice to protect and preserve the confidentiality of all Consulting
Intellectual Property not otherwise protected by patents, patent applications or
copyright ("Confidential Information"), except where the failure to take such
steps will not have a Material Adverse Effect. All use, disclosure or
appropriation of Confidential Information owned by KPMG (as related to the
Consulting Business), the Company or any of their respective Subsidiaries by or
to a third party has been pursuant to the terms of a written agreement between
each such entity and such third party, except where such use, disclosure or
appropriation will not have a Material Adverse Effect. All use, disclosure or
appropriation by KPMG, the Company or any of their respective Subsidiaries of
Confidential Information, relating to the Consulting Business and not owned by
either KPMG, the Company or any of their respective Subsidiaries has been
pursuant to the terms of a written agreement between each such entity and the
owner of such Confidential Information, or is otherwise lawful, except where
such use, disclosure or appropriation will not have a Material Adverse Effect.

                                      12.

<PAGE>   18

                  2.18   Employee Benefit Plans. Upon consummation of the
transactions neither the Company nor its Subsidiaries will have any Material
Liability under Part III of Title I, section 406 or Title IV of ERISA or under
sections 412 or 4975 of the Code with respect to any Plan maintained or
contributed to by KPMG or its Subsidiaries. Immediately after the consummation
of the transactions contemplated by the Separation Documents, no Plan maintained
or contributed to by the Company or its Subsidiaries will be subject to Part III
of Title I or Title IV of ERISA.

                  2.19   Employee Relations. No strike, lockout, Material labor
arbitration or grievance or other Material labor disturbance, and no application
for certification of a collective bargaining agent, is pending or, to the
Knowledge of the Company and KPMG, threatened against the Company, KPMG or any
of their respective Subsidiaries related to the Consulting Business. No
employees of the Company, KPMG or any of their respective Subsidiaries relating
to the Consulting Business are covered by any collective bargaining agreement or
any other Contract with any labor union or association other than agreements and
Contracts which will not have a Material Adverse Effect.

                  2.20   Insurance Coverage. The Company and its Subsidiaries
have such liability, property and casualty, and workers compensation insurance
policies and coverage with respect to the Consulting Business as are generally
carried by similarly situated companies and, to the Knowledge of the Company,
such insurance policies and Contracts provide coverage in amounts and upon terms
that are, in all Material respects, reasonable and adequate for Persons having
similar businesses, operations, Properties and locales as those of the Company,
KPMG and their respective Subsidiaries. At or prior to Closing, the Company will
obtain directors and officers liability insurance providing liability coverage
to all directors of the Company on terms and in amounts which are customary in
light of the Company's size and industry. To the Knowledge of the Company and
KPMG, all insurance policies and Contracts referred to in this Section are valid
and binding in accordance with their terms except to the extent such
enforceability may be limited by the effect of any applicable bankruptcy,
reorganization, insolvency, moratorium or similar law affecting creditors'
rights generally and general principles of equity or public policy (regardless
of whether such enforceability is considered in a proceeding in equity or at
law), and are in full force and effect.

                  2.21  Tax Matters.

                        (a)   All material Tax Returns required to be filed by
or on behalf of the Company and the LLC and each of their subsidiaries have been
timely filed, taking into account any available extension of the relevant filing
date. All such Tax Returns (i) were prepared in all material respects in the
manner required by applicable law, and (ii) were true, correct, and complete in
all material respects. All Taxes shown to be payable on such Tax Returns, and
any assessments of Tax made with respect to such Tax Returns, were paid when
due. No material action, suit, proceeding, investigation, audit, claim, or
assessment is presently pending or, to the Knowledge of each of the Company,
KPMG, and the LLC proposed to be asserted or commenced with respect to any Tax
Return filed by the Company, the LLC or their subsidiaries.

                                      13.

<PAGE>   19

                        (b)   Any material liability for unpaid Taxes of the
Company, the LLC and their subsidiaries for periods or portions of periods
through the date of the Financial Statements is reflected on the Financial
Statements.

                        (c)   The Company, the LLC and each of their
subsidiaries have timely withheld from their employees, customers, and other
payees, and have timely paid, all amounts required to be withheld and paid by
the Tax withholding provisions of applicable federal, state, local, and foreign
law, rule, or regulation in all material respects.

                        (d)   Neither the Company nor the LLC nor any of their
subsidiaries will incur or accrue any material liability for Taxes after the
latest Financial Statements and through the Closing Date other than Taxes in the
ordinary course of business.

                  2.22   Environmental Matters. The Company, KPMG (with respect
to the Consulting Business) and each of their Subsidiaries (related to the
Consulting Business) is in compliance with all Environmental Laws, except where
the failure to be so in compliance would not, individually or in the aggregate,
have a Material Adverse Effect. None of the Company, KPMG (with respect to the
Consulting Business) or any of their respective Subsidiaries (related to the
Consulting Business) has received any written or, to the Knowledge of the
Company and KPMG, oral notice of any Material violation by the Company, KPMG
(with respect to the Consulting Business) or any of their respective
Subsidiaries of, or Material default by any of the same under, any Environmental
Law. There is no action, suit, proceeding or investigation (or, to the Knowledge
of the Company and KPMG, any claim) pending or, to the Knowledge of the Company
and KPMG (with respect to the Consulting Business), threatened against any of
the Company, KPMG or their respective Subsidiaries (related to the Consulting
Business) that alleges any violation of any Environmental Law which would
individually or in the aggregate have a Material Adverse Effect.

                  2.23   Exemption from Registration. Assuming the
representations and warranties of the Investor set forth in Section 3.6 are true
and correct in all material respects, the offer and sale of the Series A Shares
made pursuant to this Agreement will be exempt from the registration
requirements of the Securities Act. Assuming the representations and warranties
of the Investor set forth in Section 3.6 are true and correct in all material
respects on the date of issuance thereof, any issuance and delivery of the
Conversion Shares, to the Investor or a wholly owned Subsidiary of the Investor
(or to a transferee who has obtained such securities in compliance with federal
and state securities laws, assuming that the representations of Section 3.6 are
true and correct in all material respects with respect to such transferee) will
be exempt from the registration requirements of the Securities Act. Neither the
Company nor any Person acting on its behalf has, in connection with the offering
of the Series A Shares or the Conversion Shares, engaged in (a) any form of
general solicitation or general advertising (as those terms are used within the
meaning of Rule 502(c) under the Securities Act), (b) any action involving a
public offering within the meaning of section 4(2) of the Securities Act, (c)
any action which would require the registration of the offering and sale of the
Series A Shares (or any issuance or delivery of the Conversion Shares under the
Securities Act, except pursuant to the Investor Rights Agreement, or (d) any
action which would violate in any material respect any applicable state
securities or "blue sky" laws. The Company has not made and will not make,
directly or indirectly, any offer or sale of capital stock or other equity or
debt security if, as a result, the

                                      14.

<PAGE>   20

offer and sale of the Series A Shares contemplated hereby would fail to be
entitled to exemption from the registration requirements of the Securities Act.
As used herein, the terms "offer" and "sale" have the respective meanings
specified in Section 2(3) of the Securities Act.

                  2.24  Transaction Document Representations.

                        (a)   Schedule 2.24 contains a true and complete list of
all of the Separation Documents. The Company has heretofore delivered to the
Investor true and complete copies of each of the Separation Documents (including
all written notices of the parties pursuant thereto).

                        (b)   None of the Company, KPMG or, to the Knowledge of
the Company and KPMG, any other party to any Transaction Document is in breach
or default in any material respect in respect of any Transaction Document. None
of the Transaction Documents contains any provision providing that any party
thereto may terminate or cancel the same by reason of the transactions
contemplated by this Agreement or any other Transaction Document, or any other
provision which would be altered or otherwise become applicable by reason of
such transactions, and no party has given notice of termination or cancellation
of any Transaction Document or that it intends to terminate or cancel any
Transaction Document.

                        (c)   At the Closing, pursuant to the Separation
Documents, KPMG will have transferred or leased (to the extent KPMG is providing
products or services to the Company pursuant to the Outsourcing Agreement or
leasing assets pursuant to the Leased Asset Agreement) to the Company all
Properties and Subsidiaries relating primarily to the Consulting Business and
all Properties and Subsidiaries necessary to conduct the Consulting Business as
currently conducted in all material respects.

                        (d)   Each of the Company, KPMG and, to the Knowledge of
the Company and KPMG, each other party thereto (other than the Investor) has
performed in all material respects its obligations under each of the Transaction
Documents which have been executed and delivered and to which it is a party.

                  2.25   Use of Proceeds. The Company shall not use more than
$630 million of the net proceeds from the sale of the Series A Shares hereunder
to repay the Intercompany Note to be issued by the Company to KPMG pursuant to
the Separation Agreement. The Company shall use all other net proceeds from the
sale of the Series A Shares hereunder for general corporate purposes, including
performing its obligations under the Alliance Documents.

                  2.26   Year 2000 Compliance. Each of the Company and KPMG
reasonably believe that the Company is Year 2000 Compliant. For purposes of the
foregoing, the phrase "Year 2000 Compliant" means that the Company's computer
systems and applications, including without limitation software and hardware
("Systems"), will function in all Material respects and will not produce
Materially incorrect results when providing or receiving (i) date-related data
from, into and between the Twentieth and Twenty-First Centuries or (ii)
date-related data in connection with any valid date in the Twentieth or
Twenty-First Centuries. To each of the Company's and KPMG's Knowledge, the
Company has no customers, suppliers or vendors (including KPMG and the services
which KPMG will still be providing on behalf of the

                                      15.

<PAGE>   21

Company following the Separation) whose failure to be Year 2000 Compliant would
have a Material Adverse Effect.

                  2.27   No Brokers. Other than the fees and expenses of Morgan
Stanley Dean Witter as disclosed in Schedule 2.27 of the Disclosure Schedule, of
which sixty percent (60%) shall be paid by KPMG and forty percent (40%) shall be
paid by the Company, no broker, finder or investment banker has been retained or
engaged on behalf of the Company, KPMG or any of their respective Subsidiaries
or is entitled to any brokerage, finder's or other fee, compensation or
commission from any such Person in connection with the transactions contemplated
by this Agreement.

                  2.28   Full Disclosure. To the Knowledge of the Company and
KPMG, the Company, KPMG and their respective Subsidiaries have complied in good
faith with all requests of the Investor and its representatives for Material
documents, papers and information relating to the Company, KPMG and their
respective Subsidiaries in connection with the transactions contemplated hereby,
and have not knowingly withheld any Material document, paper or other
information requested by the Investor or any of its representatives in
connection therewith. No representation or warranty made by the Company in this
Agreement (including the Disclosure Schedule) or in any certificate delivered to
the Investor pursuant to Section 5 hereof contains or will contain any untrue
statement of a material fact, or omits or will omit to state a material fact
required to be stated therein or necessary to make the statements contained
herein or therein, in light of the circumstances under which they were made, not
misleading; and, without limiting the foregoing representations and warranties,
it being agreed and understood among the parties that the representations and
warranties are not intended to be and do not constitute a full description of
the business and, therefore, will not contain disclosure of all the risks
associated with an investment in the Series A Shares.

                                      16.

<PAGE>   22

                                  ARTICLE III
                         REPRESENTATIONS AND WARRANTIES
                                 OF THE INVESTOR

                  The Investor hereby represents and warrants to the Company, as
of the date of this Agreement and as of the Closing Date as follows:

                  3.1   Organization of the Investor. The Investor is a
corporation duly organized, validly existing and in good standing under the laws
of its jurisdiction and has full corporate power and authority to execute and
deliver this Agreement and each other Transaction Document to which it is a
party, to perform its obligations hereunder and thereunder and to consummate the
transactions contemplated hereby and thereby.

                  3.2   Authorization, Validity and Enforceability. The
execution, delivery and performance by the Investor of this Agreement and each
other Transaction Document to which it is a party and the consummation of the
transactions contemplated hereby and thereby by the Investor have been duly and
validly authorized by all necessary corporate action on the part of the Investor
and no other corporate proceeding on the part of the Investor is necessary to
authorize the execution, delivery and performance of this Agreement or any other
Transaction Document to which the Investor is a party or the consummation of any
of the transactions contemplated hereby or thereby. This Agreement has been duly
executed and delivered by the Investor and (assuming the due authorization,
execution and delivery by KPMG and the Company) constitutes the legal, valid and
binding obligation of the Investor, and each other Transaction Document to which
the Investor is a party will, upon due execution and delivery thereof (assuming
the due authorization, execution and delivery thereof by the other parties
thereto), constitute the legal, valid and binding obligation of the Investor, in
each case enforceable against the Investor in accordance with its terms, except
to the extent such enforceability may be limited by the effect of any applicable
bankruptcy, reorganization, insolvency, moratorium or similar laws affecting
creditors' rights generally and general principles of equity or public policy
(regardless of whether such enforceability is considered in a proceeding in
equity or at law).

                  3.3   No Conflicts. Assuming all Consents described in clauses
(a) through (c) of Section 3.4 are obtained, made or given (as the case may be),
the execution and delivery by the Investor of this Agreement and each other
Transaction Document to which it is a party do not, and the performance by the
Investor of its obligations hereunder and thereunder and the consummation of the
transactions contemplated hereby and thereby will not, conflict with, result in
any breach or violation of, constitute a default under (or an event which with
the giving of notice or the lapse of time or both would constitute a default
under), (a) the certificate of incorporation, by-laws or other charter or
organizational documents of the Investor, (b) any Contract to which the Investor
is a party or by or to which it or its assets or Properties may be bound or
subject, or (c) any applicable order, writ, judgment, injunction, award, decree,
Permit, law, statute, ordinance, rule or regulation, other than any conflict,
breach, violation or default which in the case of clauses (b) and (c) only,
would not, individually or in the aggregate together with all such other
conflicts, breaches, violations or defaults, have a material adverse effect on
the ability of the Investor to execute and deliver this Agreement or any other
Transaction

                                      17.

<PAGE>   23

Document to which it is a party, perform its obligations hereunder and
thereunder, or consummate the transactions contemplated hereby or thereby.

                  3.4   Consents and Approvals. Except (a) as required under the
HSR Act, (b) as set forth in Schedule 3.4 hereto, and (c) where the failure to
obtain, make or give such Consent would not, individually or in the aggregate,
have a material adverse effect on, or a material adverse change in, the ability
of the Investor to execute and deliver this Agreement or any other Transaction
Document to which it is a party, perform its obligations hereunder and
thereunder, or consummate the transactions contemplated hereby or thereby, no
Consent of any Governmental Entity or other Person is necessary to be obtained,
made or given by the Investor in connection with the execution and delivery by
the Investor of this Agreement or any other Transaction Document to which it is
a party, the performance by the Investor of its obligations hereunder and
thereunder, and the consummation of the transactions contemplated hereby and
thereby.

                  3.5   Legal Proceedings. There is no action, suit, claim,
proceeding or investigation pending or, to the Knowledge of the Investor,
threatened against the Investor or any of its Subsidiaries by or before any
court, other Governmental Entity or arbitrator which, if adversely determined,
individually or in the aggregate, would have a material adverse effect on the
ability of the Investor to execute and deliver this Agreement or any other
Transaction Document to which it is a party, perform its obligations hereunder
or thereunder, or consummate the transactions contemplated hereby or thereby.
There is no outstanding order, writ, judgment, injunction, award or decree of
any court, other Governmental Entity or arbitrator against the Investor which,
individually or in the aggregate, is reasonably likely to have a material
adverse effect on the ability of the Investor to execute and deliver this
Agreement or any other Transaction Document to which it is a party, perform its
obligations hereunder or thereunder, or consummate the transactions contemplated
hereby or thereby.

                  3.6   Investment Intent. The Investor understands that the
Series A Shares and the Conversion Shares (collectively, the "Transaction
Securities") have not been registered under the Securities Act or the securities
laws of any state, and may only be sold or disposed of by the Investor (i)
pursuant to an effective registration statement under the Securities Act or an
applicable exemption from registration thereunder and (ii) in compliance with
any applicable state securities laws. The Transaction Securities will be
acquired by the Investor (or its wholly owned Subsidiary designee) pursuant to
this Agreement for its own account without a view to a distribution or resale
thereof, it being understood that the Investor or such designee shall have the
right to sell or otherwise dispose of any of the Transaction Securities pursuant
to an effective registration statement or an exemption therefrom under the
Securities Act and in compliance with any applicable state securities laws. The
Investor is an "accredited investor" as that term is defined in Rule 501 of
Regulation D under the Securities Act, and either alone or with its advisors has
such knowledge, skill and experience in business, financial and investment
matters that it is capable of evaluating the merits and risks of an investment
in the Transaction Securities as provided in this Agreement.

                  3.7   Financing. The Investor has available sufficient funds
to pay the Purchase Price in cash at the Closing.

                                      18.

<PAGE>   24

                  3.8   No Brokers. No broker, finder or investment banker has
been retained or engaged on behalf of the Investor or is entitled to any
brokerage, finder's or other fee, compensation or commission from the Investor
in connection with the transactions contemplated by this Agreement.

                                   ARTICLE IV

                                    COVENANTS

                  4.1   Conduct of Business.

                        (a)   From the date hereof to and including the Closing
Date, KPMG will cause the Company and each of its Subsidiaries related to the
Consulting Business to, and the Company will, and will cause each of its
Subsidiaries to, (i) conduct their operations in the ordinary course of business
substantially consistent with past practice (except as contemplated hereby and
as contemplated by any of the Transaction Documents), (ii) use all reasonable
efforts to preserve intact the Consulting Business, goodwill and Permits, to
keep available the services of the management and to maintain existing
relationships with customers, agents, distributors, suppliers and others having
business dealings with the Consulting Business, and (iii) maintain the books,
records and accounts in the ordinary manner substantially consistent with prior
practice, except in the case of clauses (ii) and (iii) where the failure to do
so would not, individually or in the aggregate, have a Material Adverse Effect.

                        (b)   Except as expressly contemplated in this Agreement
or the other Transaction Documents, from the date hereof to and including the
Closing Date, KPMG will not permit the Company or any of its other Material
Subsidiaries related to the Consulting Business to, and the Company will not and
will not permit any of its Material Subsidiaries to, directly or indirectly (i)
amend or modify its certificate or articles of incorporation, by-laws or other
charter or organizational documents, (ii) authorize for issuance, issue, sell,
deliver or agree or commit to issue, sell or deliver (whether through the
issuance or granting of options, warrants, call, commitments, subscriptions,
rights to purchase or otherwise) any stock of any class or series or any other
equity interest, or any bonds, debentures, notes, surplus notes, debt
instruments, evidences of indebtedness for borrowed money or other securities of
any kind, including, without limitation, any stock options or stock appreciation
rights, other than as contemplated in the last sentence of Section 2.5(a), (iii)
split, combine or reclassify any shares of its capital stock (except for
dividends by direct or indirect wholly owned Subsidiaries of the Company or
KPMG), or declare, pay or set aside any sum for any dividend or other
distribution (whether in cash, stock or Property, any combination thereof or
otherwise) in respect of its capital stock, or redeem, purchase or otherwise
acquire (or agree to redeem, purchase or otherwise acquire) any Common Stock,
Preferred Stock or any of its other securities or any securities of its
Subsidiaries, (iv) adopt a plan of complete or partial liquidation, dissolution,
rehabilitation, merger, consolidation, restructuring, recapitalization,
redomestication or other reorganization, (v) make any Material change in any
financial reporting, Tax, accounting, actuarial or reserving methods or
practices (unless required to do so in accordance with GAAP or applicable Tax
laws, in which event the Company shall notify the Investor in reasonable detail
as to such required change), (vi) other

                                      19.

<PAGE>   25

than in the ordinary course of business substantially consistent with past
practice (including acquisitions of investment assets which qualify as such) or
in connection with the acquisition of the consulting practices from KPMG Firms,
purchase or sell securities or other investments, or invest or reinvest income
and proceeds in respect thereof, other than pursuant to the Separation or the
Alliance Documents or in accordance with applicable law, (vii) adopt any new
severance or other Plan which is Material, (viii) amend, modify, or terminate
(other than by expiration in accordance with the terms thereof) any Contracts in
a manner which would, individually or in the aggregate, have a Material Adverse
Effect, (ix) amend or modify any Transaction Document or the terms or conditions
of the Separation, except any such amendment or modification which (I) is
required to reflect changes in the ordinary course of business of the Consulting
Business which would not have a Material Adverse Effect thereon or (II) will not
(A) Materially increase the cost of the Separation to the Company, and its
Subsidiaries or (B) have a Material Adverse Effect or a material adverse effect
on the ability of the Investor to execute and deliver this Agreement or any
other Transaction Document to which it is a party, perform its obligations
hereunder or thereunder, or consummate the transactions contemplated hereby or
thereby, (x) amend or modify the contribution formula of any Benefit Plan that
would Materially increase the cost of such Benefit Plan or (xi) without the
prior written consent of the Investor, take any of the other actions described
in Section 2.11 (excluding, for purposes of this clause (xi), those described in
clauses (v), (viii), (ix), (xi) and (xiii) of Section 2.11(b)) or take any
action, or willfully omit to do any act, that would result in any of the
representations and warranties set forth in Article II of this Agreement not
being true in all material respects (or, in the case of any such representations
or warranties which are qualified as to materiality, true in all respects) or
take any action, or omit to do any act, that KPMG or the Company then Knows
would result in any of the conditions set forth in Articles V and VI not being
satisfied by such action.

                        (c) Except as expressly contemplated in this Agreement
or the other Transaction Documents, from the date hereof to and including the
Closing Date, the Investor will not take any action, or willfully omit to do any
act, that would result in any of the representations and warranties set forth in
Article III of this Agreement not being true in all material respects (or, in
the case of any such representations or warranties which are qualified as to
materiality, true in all respects) or take any action, or omit to do any act,
that the Investor then Knows would result in any of the conditions set forth in
Articles V and VI not being satisfied by such action.

                  4.2   Access to Information; Consultation; Confidentiality.

                        (a)   From the date hereof until the Closing, the
Company will, and will cause each of its Subsidiaries to, and KPMG will cause
the Company and each of KPMG's Subsidiaries related to the Consulting Business
to, subject to any applicable confidentiality restrictions of third parties
(which each of the Company and KPMG will use reasonable efforts to remove; it
being understood that in no event shall such reasonable efforts include the
payment of any fee borne by KPMG or the Company or the surrender of any material
right under any agreement) (i) allow the Investor and its officers, employees,
counsel, accountants, consultants and other authorized representatives
("Representatives") to have reasonable access during normal business hours to
the books, records, Contracts, facilities, management and personnel of the
Company, KPMG and each of their respective Subsidiaries involved in the
Consulting Business, (ii) furnish as promptly as practicable to the Investor and
its Representatives all information and documents concerning the Company, KPMG
and their respective Subsidiaries

                                      20.

<PAGE>   26

involved in the Consulting Business that are in the possession of the Company,
as the Investor or its Representatives may reasonably request, and (iii) cause
the respective officers, employees and Representatives of the Company, KPMG and
their respective Subsidiaries to reasonably cooperate in good faith with the
Investor and its Representatives in connection with all such access. In
addition, from the date hereof until the Closing the Company will and will cause
each of its Subsidiaries to, and KPMG will cause the Company and each of KPMG's
Subsidiaries related to the Consulting Business to, use reasonable efforts to
consult with the Investor a reasonable period of time prior to entering into any
Material transaction or arrangement or taking any Material action, in a manner
which will allow the Investor a reasonable opportunity to evaluate and present
its views to the Company regarding such Material transaction, arrangement or
action, it being understood and agreed that the foregoing shall not limit the
Company's discretion with respect to any such matter.

                        (b)   All information and documents provided under this
Section shall be kept confidential by the Investor and its Representatives,
unless any such information or documents (i) is or becomes generally available
to the public (other than as a result of a disclosure by the Investor or any of
its Representatives), (ii) was already known by or available on a
non-confidential basis to the Investor or its Representatives prior to being
furnished by or on behalf of the Company, KPMG and their respective Subsidiaries
hereunder, or (iii) is or becomes available to the Investor or its
Representatives from a third party not bound by, directly or indirectly, any
legal obligation to the Company, KPMG and their respective Subsidiaries to keep
such information confidential. In the event of the termination of this Agreement
in accordance with the terms hereof, the Investor will, upon the request of the
Company, promptly deliver to the Company all written or electronic information
and documents provided above under this Section, and any copies thereof, in the
possession of the Investor or any of its personnel, and destroy any documents,
files or analyses derived from any such confidential information or documents.

                        (c)   Notwithstanding the foregoing, no investigation or
review by the Investor or any of its Representatives shall affect or be deemed
to modify any of the representations, warranties, covenants or agreements of the
Company under this Agreement or otherwise; it being understood that,
notwithstanding any right of the Investor fully to investigate the affairs of
the Company, KPMG and their respective Subsidiaries, and notwithstanding any
knowledge of facts determined or determinable by the Investor pursuant to any
such investigation or right of investigation, the Investor has the right to rely
fully upon the representations, warranties, covenants and agreements of the
Company contained in this Agreement.

                  4.3   Cooperation and Reasonable Efforts. Subject to the terms
and conditions hereof, (a) each of the parties hereto shall reasonably cooperate
with the other, and the Company will cause each of its Subsidiaries to
reasonably cooperate with the Investor, in connection with consummating the
transactions contemplated by this Agreement and the other Transaction Documents,
and (b) each of the parties hereto agrees to, and the Company will cause each of
its Subsidiaries to, use all reasonable efforts to take, or cause to be taken,
all actions, and to do, or cause to be done, all things necessary under
applicable laws and regulations to consummate and make effective the
transactions contemplated by this Agreement or any other Transaction Document.
For purposes of this Section 4.3, the covenant of the parties to use their
"reasonable

                                      21.

<PAGE>   27

efforts" shall not require any party to (i) incur any unreasonable expenses,
(ii) agree to materially limit or adversely affect in any material respect the
conduct of its business or (iii) divest itself of any material assets or
Properties, in each case except as otherwise contemplated hereunder.

                  4.4   Consents and Approvals. As soon as practicable after the
execution of this Agreement, subject to the last sentence of Section 4.3, each
of the parties hereto shall, and the Company shall cause each of its
Subsidiaries to, use all reasonable efforts to obtain any necessary Consents of,
and make any filing with or give any notice to, any Governmental Entities and
other Persons (including, without limitation, (i) pursuant to the HSR Act) as
are required to be obtained, made or given by such party to consummate the
transactions contemplated by this Agreement and the other Transaction Documents.
The parties hereto shall cooperate with one another in exchanging such
information and reasonable assistance as may be required by any such
Governmental Entity or as any other party may reasonably request in connection
with the foregoing.

                  4.5   Notification of Certain Matters. Promptly after becoming
aware thereof, each of the parties hereto shall give notice to the other of (a)
the occurrence or nonoccurrence of any event, the occurrence or nonoccurrence of
which would cause, or is reasonably likely to cause any representation or
warranty of the Company or the Investor, respectively, contained in this
Agreement to be untrue or inaccurate in any material respect (or, in the case of
any representation or warranty which is qualified as to Materiality, untrue or
inaccurate in any respect) at or prior to the Closing and (b) any material
failure of the Company or the Investor, respectively, to comply with or satisfy
any covenant or agreement to be complied with or satisfied by it hereunder;
provided, however, that the delivery of any notice pursuant to this Section 4.5
shall not cure such failure or limit or otherwise affect the remedies available
hereunder to the parties receiving such notice. Without limiting the generality
of the foregoing, from the date hereof through the Closing Date, each of the
parties hereto shall promptly notify the other of any action, suit, claim,
litigation, proceeding or investigation of the type required to be described in
Articles II or III that, to its Knowledge, is commenced or threatened, and of
any material request for additional information or documentary materials by any
Governmental Entity in connection with the transactions contemplated hereby or
by the Transaction Documents. The Company shall, as promptly as practicable,
furnish to the Investor any and all further material filings and submissions
made in connection with the Separation Documents, the Alliance Documents and any
and all material written notices pursuant to the Transaction Documents.

                  4.6   Public Announcements. Each party hereto shall notify the
other prior to issuing any press release or making any public statement
pertaining to this Agreement or the transactions contemplated hereby, and shall
not issue any such press release or make any such public statement without
obtaining the reasonable approval of the other parties prior thereto, except
that each party will in any event have the right to issue any such release or
statement upon advice of its counsel that such issuance is required in order to
comply with any applicable law or any listing agreement with, or rules of, a
national securities exchange to which such party is a party or subject.

                  4.7   No Solicitation. Until the earlier of the consummation
of the transactions contemplated hereby or the termination of this Agreement in
accordance with the terms hereof,

                                      22.

<PAGE>   28

KPMG, the Company, and each of their respective Subsidiaries and their
respective officers, employees, Representatives and agents shall immediately
cease any existing discussions, communications or negotiations, if any, with any
Persons ("Prior Bidders") other than the Investor and its Representatives,
conducted heretofore with respect to any direct or indirect acquisition or
offering of all or any Material portion of the assets or Properties of, or any
capital stock (including, without limitation, Common Stock or Preferred Stock)
or other equity interest in, the Company, KPMG (relating to the Consulting
Business) or any of their respective Subsidiaries or the Consulting Business,
other than as contemplated in the last sentence of Section 2.5(a), or any
business combination with the Company, KPMG (relating to the Consulting
Business) or any of their respective Subsidiaries or the Consulting Business
(whether by merger, consolidation, or otherwise) or any other transaction
inconsistent with the consummation of, or similar in whole or in part to, the
transactions contemplated herein (any of the foregoing, an "Alternative
Transaction"), and will not, directly or indirectly, solicit, encourage,
participate in or initiate discussions or negotiations with, or provide any
information or documents to, or otherwise cooperate in any way with, any Person
(other than the Investor and its Representatives) concerning any Alternative
Transaction. KPMG and the Company shall notify the Investor orally and in
writing if any bona fide proposal relating to an Alternative Transaction (an
"Alternative Transaction Proposal") is received by KPMG, the Company, any of
their respective Subsidiaries or (to the Knowledge of the Company and KPMG)
their Affiliates or Representatives, or if any inquiry is received by, any
information is requested from, or any discussions or negotiations are sought to
be initiated or continued with, any of the foregoing Persons in connection with
an Alternative Transaction or Alternative Transaction Proposal, promptly after
receipt of such Alternative Transaction Proposal, inquiry, request or other
communication. Such written notification shall include the identity of the
Person making such Alternative Transaction Proposal, inquiry, request or other
communication and such other information with respect thereto as is reasonably
necessary to apprise the Investor of the precise nature of such inquiry, request
or other communication, or the material terms of such Alternative Transaction
Proposal, and all other material information relating thereto. The Company shall
use all reasonable efforts to cause any confidential or proprietary materials
relating to the Company, KPMG and their respective Subsidiaries previously
furnished to Prior Bidders or other Persons in connection with an Alternative
Transaction to be promptly returned to the Company.

                  4.8   Interim Financial Statements and Investment Reports.

                        (a)   From the date hereof until the Closing Date, as
soon as practicable (and in any event within five (5) Business Days) after they
become available, the Company shall deliver to the Investor true and complete
copies of (i) the consolidated balance sheet of the Consulting Business as at
the end of each fiscal quarterly or annual period ending after September 30,
1999, and the related consolidated statements of income, retained earnings and
cash flows of the Consulting Business for such interim fiscal year-to-date or
annual period, and (ii) to the extent prepared, all monthly financial statements
of the Company and/or any of its Subsidiaries (collectively, the "Interim
Financial Statements"). In addition, during such period, if and when available,
the Company shall deliver to the Investor true and complete copies of any
budgets, business plans and financial projections, or modifications thereof,
relating to the Consulting Business prepared for or furnished to the Board of
Directors of KPMG.

                                      23.

<PAGE>   29

                        (b)   The Interim Financial Statements will each be
prepared in accordance with GAAP consistently applied throughout the periods
involved (and on a basis consistent with the Financial Statements) and will be
derived from the books and records of the Company, KPMG and their respective
Subsidiaries, and will present fairly in all material respects the consolidated
financial position of the Consulting Business as at the respective dates thereof
and the results of operations of the Consulting Business for the respective
periods then ended, except that quarterly and monthly Interim Financial
Statements will not be required to contain full footnote disclosures in
accordance with GAAP and may be subject to normal year-end audit adjustments.

                  4.9   Securities Legends.

                        (a)   Each certificate evidencing ownership of shares of
Series A Shares shall be stamped or otherwise have endorsed or imprinted thereon
a legend in substantially the following form, so long as applicable:

                  "THE SHARES REPRESENTED BY THIS CERTIFICATE AND ANY SHARES OF
                  COMMON STOCK OF THE CORPORATION ISSUABLE UPON CONVERSION
                  HEREOF MAY NOT BE SOLD OR TRANSFERRED EXCEPT IN ACCORDANCE
                  WITH THE AMENDED AND RESTATED CERTIFICATE OF INCORPORATION OF
                  THE CORPORATION. THE SHARES REPRESENTED BY THIS CERTIFICATE
                  AND ANY SHARES OF COMMON STOCK OF THE CORPORATION ISSUABLE
                  UPON CONVERSION HEREOF MAY NOT BE OFFERED OR SOLD EXCEPT
                  PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
                  SECURITIES ACT OF 1933, AS AMENDED, OR AN APPLICABLE EXEMPTION
                  FROM REGISTRATION THEREUNDER AND IN COMPLIANCE WITH APPLICABLE
                  STATE SECURITIES LAWS. THE SALE OR TRANSFER OF THE SHARES
                  REPRESENTED BY THIS CERTIFICATE AND THE SHARES OF COMMON STOCK
                  ISSUABLE UPON CONVERSION HEREOF IS FURTHER SUBJECT TO
                  RESTRICTIONS CONTAINED IN AN INVESTOR RIGHTS AGREEMENT BY AND
                  AMONG CISCO SYSTEMS, INC., KPMG LLP AND THE COMPANY, A COPY OF
                  WHICH AGREEMENT IS ON FILE AT THE OFFICES OF THE COMPANY."

                        (b)   Each certificate evidencing ownership of
Conversion Shares shall be stamped or otherwise have endorsed or imprinted
thereon a legend in substantially the following form, so long as applicable:

                  "THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
                  REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND
                  MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
                  REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS
                  AMENDED, OR AN APPLICABLE EXEMPTION FROM REGISTRATION
                  THEREUNDER AND IN COMPLIANCE WITH APPLICABLE STATE SECURITIES
                  LAWS. THE SALE OR TRANSFER OF THE SHARES REPRESENTED BY THIS
                  CERTIFICATE IS FURTHER

                                      24.

<PAGE>   30

                  SUBJECT TO RESTRICTIONS CONTAINED IN AN INVESTOR RIGHTS
                  AGREEMENT BY AND AMONG CISCO SYSTEMS, INC., KPMG LLP AND THE
                  COMPANY, A COPY OF WHICH AGREEMENT IS ON FILE AT THE OFFICES
                  OF THE COMPANY."

                        (c)   Notwithstanding the foregoing, upon receipt by the
Company of evidence and documents reasonably satisfactory to it of the
termination of the requirement that all or any part of any of the foregoing
legends be placed upon a certificate and upon the written request of the holders
of the securities represented thereby, the Company shall issue certificates for
such securities that do not bear such legend.

                  4.10  Exclusive Relationship.

                  (a)   During the five (5) years following the Closing,
unless the Alliance Agreement shall have been terminated by the Company (and no
other party) in accordance with its terms, neither KPMG nor the Company will,
directly or indirectly, enter into any agreement, understanding or arrangement
with any of the following companies, including any of their respective
controlled affiliates, subsidiaries, successors or assigns (the "Specified
Companies"), providing for any merger, consolidation or other business
combination involving the Company or sale of all or any Material portion of the
assets of the Company (each, a "Restricted Transaction") to any of the same: (i)
Lucent Technologies Inc., (ii) Nortel Networks Corporation, (iii) Alcatel S.A.
and (iv) a company to be identified by the Investor at or prior to the Closing;
provided, however that the parties hereto agree that during each twelve (12)
month period following the Closing Date (each, an "Election Period"), the
Investor may submit (a "Submission"), on one (1) occasion during each such
Election Period, to both KPMG and the Company a revised list of Specified
Companies (each such revision, a "Specified Company List") set forth in this
Section 4.10, with the understanding that such revised list of Specified
Companies shall (A) on the date thereof, replace the companies listed in clauses
(i), (ii), (iii) and (iv) of this Section 4.10 to the extent that the revised
list of companies is different from the list of companies identified pursuant to
such clauses, (B) include, as contemplated herein, any of their respective
controlled affiliates, subsidiaries, successors or assigns, and (C) not, as
initially set forth in this Section 4.10, exceed four companies (not including,
for the purposes of this paragraph (C), any of their respective controlled
affiliates, subsidiaries, successors or assigns). If the Company determines, in
the reasonable good faith judgment of its Board of Directors, that a Specified
Company, appointed by the Investor to a Specified Company List or pursuant to
clause (iv) above, is a company with which the Company is unable to engage in or
consummate any Restricted Transaction because of the auditor independence rules
promulgated by regulatory bodies (the "Auditor Independence Rules"), including
the U.S. Securities and Exchange Commission, the American Institute of Certified
Public Accountants, the Independence Standards Board, and the state boards of
accountancy (each, a "Preempted Specified Company"), then the Company shall (i)
not be required, during that Election Period, to designate such Preempted
Specified Company or Companies as a Specified Company on the Specified Company
List and (ii) reduce the number of companies that are allowed to be set forth on
the current and any subsequent Specified Company List by the number of such
Preempted Specified Companies. The Investor agrees that any company selected
pursuant to clause (iv) above or any company set forth on a Specified Company
List pursuant to this Section 4.10(a) or 4.10(d) shall be a company that is a
direct competitor of the Investor and that is of comparable significance to

                                      25.

<PAGE>   31

the companies named in clauses (i), (ii), and (iii) above and shall only be
included after consultation with the Company and KPMG.

                        (b)   In the event that any such Preempted Specified
Company is no longer unable to engage in or consummate any Restricted
Transaction with the Company, each of KPMG and the Company shall immediately (i)
provide notice of such change in status regarding any such Preempted Specified
Company to the Investor, (ii) increase the number of companies which are allowed
to be set forth on the current and any subsequent Specified Company List by one,
and (iii) include the Preempted Specified Company as a Specified Company on the
Specified Company List (with the understanding that such a change does not in
any way affect, or take away, the Investor's right to a Submission during any
Election Period as provided in Section 4.10 (a)). It is further understood and
agreed to by the parties hereto that, if the Investor makes a Submission to the
Company, during any Election Period, which adjusts the Specified Companies List
by replacing a Preempted Specified Company with a new Specified Company, then
the Company shall immediately (i) increase the number of companies which are
allowed to be set forth on the current and any subsequent Specified Company List
by one and (ii) include the new Specified Company on the Specified Company List.

                        (c)   Notwithstanding anything in this Agreement or in
any Transaction Document to the contrary, if at any time prior to the fifth
anniversary of the Closing but after the expiration of the Restricted Period:

                              (i)   the Investor directly or indirectly sells,
transfers, assigns, pledges or otherwise disposes of Series A Shares (or the
shares of Common Stock into which such Series A Shares are convertible) in an
amount greater than seventy-five percent (75%) of the Series A Shares (and
shares of Common Stock into which such Series A Shares are convertible) held by
the Investor as of the Closing; and

                              (ii)   the gross revenue of the Company actually
derived from the Alliance is less than Forty Million Dollars ($40,000,000) per
quarter for each of two consecutive quarters;

then the provisions of this Section 4.10, Section 2.5 of the Investor Rights
Agreement, and Section 3 of the Alliance Agreement shall, upon the occurrence of
the events set forth in clauses (i) and (ii), automatically terminate and shall
no longer be applicable to KPMG, the Company, or Cisco.

                        (d)   Notwithstanding anything to the contrary contained
herein, at least thirty (30) days prior to the filing by the Company of a
registration statement with the Securities and Exchange Commission under the
Securities Act of 1933, as amended, regarding an initial public offering of the
common stock of the Company, the Company shall provide notice (the "IPO Notice")
to the Investor of such proposed filing. The date of such notice is referred to
herein as the IPO Notice Date. Within twenty (20) days following the IPO Notice
Date, the Investor shall deliver to the Company a final list of a total of up to
four (4) Specified Companies, none of which may be a company with which the
Company is then unable to engage in or consummate any Restricted Transaction
because of the Auditor Independence Rules. Upon the submission of this final
list of Specified Companies, the Investor shall not have any right to revise or
amend such list until the termination of this Section 4.10; provided, however,
that if the Company files

                                      26.

<PAGE>   32

such registration statement and then withdraws such filing from the Securities
and Exchange Commission, the provisions of Section 4.10(a) shall control and the
Investor may submit a Submission during an Election Period until the Company
elects to deliver another IPO Notice to the Investor.

                        (e)  Notwithstanding anything herein to the contrary,
each of KPMG and the Company shall be permitted to perform its obligations
pursuant to any agreement, understanding or arrangement with any Specified
Company not specified herein or pursuant to Section 4.10(a)(iv) that was entered
into by KPMG or the Company prior to the date such company became a Specified
Company.

                        4.11   Additional Capital. Prior to a Qualified IPO,
KPMG shall lend up to $100 million to the Company, at an interest rate per annum
equal to 1% below the prime rate as announced by the Chase Manhattan Bank N.A.,
and upon other terms and conditions reasonably acceptable to the Investor, to
the extent necessary to enable the Company to meet its contractual commitments
to the Investor under the Alliance Agreement.

                        4.12   Fees of Counsel. At or prior to the Closing, KPMG
shall pay the reasonable fees and expenses of Brobeck, Phleger & Harrison LLP,
special counsel to the Investor, of up to $342,000 incurred in connections with
the transactions contemplated by the Transaction Documents, provided however,
that KPMG shall not be obligated to pay any fees under this Section 4.12 in the
event that this Agreement is terminated prior to Closing.

                                      27.
<PAGE>   33

                                   ARTICLE V

                          CONDITIONS TO THE OBLIGATION
                            OF THE INVESTOR TO CLOSE

                  The obligation of the Investor to purchase the Series A Shares
at the Closing shall be subject to the satisfaction of the following conditions
at or prior to the Closing:

                  5.1 Representations Warranties and Covenants. The
representations and warranties of the Company and KPMG contained in this
Agreement which are qualified as to materiality or Material Adverse Effect shall
be true and correct in all respects, and those not so qualified shall be true
and correct in all material respects, as of the date of this Agreement and as of
the Closing Date with the same force and effect as though made on and as of the
Closing Date, except that any such representations and warranties which are made
as of and relate solely to a specified earlier date (other than the date hereof)
shall be so true and correct as of such earlier date. Each of the Company and
KPMG shall have performed and complied in all material respects with all
covenants, conditions and agreements required to be performed or complied with
by the Company hereunder on or prior to the Closing Date.

                  5.2 Consents. All Consents required in connection with the
purchase and sale of the Series A Shares and the consummation of the Closing
(other than non-Material Consents from third parties) shall have been duly
obtained, made or given and shall be in full force and effect, without the
imposition upon the Investor, the Company, KPMG or any of their respective
Subsidiaries or the Consulting Business of any Material condition, restriction
or required undertaking.

                  5.3 No Injunction or Illegality. No injunction, order, decree
or judgment shall have been issued by any court or other Governmental Entity of
competent jurisdiction and be in effect, and no statute, rule or regulation
shall have been enacted or promulgated by any Governmental Entity and be in
effect, which in each case restrains or prohibits the consummation of the
purchase and sale of the Series A Shares or the issuance of any Conversion
Shares.

                  5.4 HSR Act. The required waiting period applicable to the
purchase and sale of the Series A Shares under the HSR Act shall have expired or
been earlier terminated.

                  5.5 Opinions of Counsel to the Company. The Investor shall
have received, in form and substance reasonably acceptable to the Investor, the
opinion of Sidley & Austin, special counsel to KPMG and the Company and the
opinion of Claudia Taft, the General Counsel of KPMG.

                  5.6 Certificates. Each of KPMG, the Company and their
respective Subsidiaries shall have delivered to the Investor (a) copies of the
resolutions adopted by its Board of Directors and partners or securityholders
(as the case may be), certified as of the Closing Date by the corporate
secretary or assistant secretary of the Company, authorizing and approving this
Agreement and the Transaction Documents and the transactions contemplated hereby
and thereby (including, without limitation, the issuance and sale of the Series
A Shares),

                                       28.

<PAGE>   34

and (b) a certificate dated the Closing Date, signed by an executive
officer of the Company, certifying as to the fulfillment of the conditions set
forth in Sections 5.1, 5.12 and 5.14. In addition, the Company shall have
furnished the Investor with such other certificates and closing documents as the
Investor may reasonably request and which are customary for transactions of the
type contemplated hereby.

                  5.7 Certificate of Designation. The Certificate of Designation
shall have been filed by the Secretary of the State of the State of Delaware,
and shall have become effective.

                  5.8 Election of Directors. The two (2) persons designated by
the Investor shall have been duly elected or appointed as members of the Board
of Directors of the Company, and at least one such person as selected by the
Investor shall have been duly appointed as a member of each committee of such
Board, in each case effective at or prior to the Closing.

                  5.9 Alliance Agreements. The Alliance Documents shall be in
full force and effect in accordance with their terms. Each party to the Alliance
Documents other than the Investor shall have performed and complied in all
material respects with all covenants and agreements required to be performed or
complied with by such party thereunder, and no such party shall be in material
default thereunder. In addition, the representations and warranties of KPMG
contained in the Alliance Documents shall be true and correct in all material
respects as of the Closing Date with the same force and effect as though made on
and as of the Closing Date.

                  5.10 The Investor Rights Agreement. The Company and KPMG shall
have duly executed and delivered an Investor Rights Agreement, substantially in
the form attached hereto as Exhibit B (the "Investor Rights Agreement").

                  5.11 Reservation of Common Stock. The Company shall at the
time of the Closing have reserved enough shares of Common Stock to effect the
issuance of all Conversion Shares.

                  5.12 Separation. As of the Closing, the Separation shall have
been consummated substantially in accordance with the terms of the Separation
Documents and all applicable laws and regulatory requirements and each of the
Separation Documents shall be in full force and effect in accordance with their
terms (it being understood that the Member Agreements for purposes of this
condition shall be considered generally together as a whole and not
individually). Each party to the Separation Agreement shall have performed and
complied in all material respects with all covenants and agreements required to
be performed or complied with by each party thereunder, and no such party shall
be in material default thereunder.

                  5.13 Transfer Taxes. The Company shall have caused all
appropriate stock transfer Tax stamps to be affixed to the certificate or
certificates representing the Series A Shares so sold and delivered, if any.

                  5.14 No Material Adverse Effect. There shall not have occurred
any Material Adverse Effect since the date hereof.

                                      29.
<PAGE>   35

                  5.15 Accounting. The Investor shall be reasonably satisfied
that the Securities and Exchange Commission will permit the Investor to account
for its investment in the Company under the "cost-accounting" method under GAAP.

                                       30.

<PAGE>   36

                                   ARTICLE VI

                          CONDITIONS TO THE OBLIGATION
                        OF THE COMPANY AND KPMG TO CLOSE

                  The obligation of the Company to issue and sell (and of KPMG
to cause the Company to issue and sell) the Series A Shares at the Closing shall
be subject to the satisfaction of the following conditions at or prior to the
Closing:

                  6.1 Representations, Warranties and Covenants. The
representations and warranties of the Investor contained in this Agreement which
are qualified as to materiality or Material Adverse Effect shall be true and
correct in all respects, and those not so qualified shall be true and correct in
all material respects, as of the date of this Agreement and as of the Closing
Date with the same force and effect as though made on and as of the Closing
Date, except that any such representations and warranties which are made as of
and relate solely to a specified earlier date (other than the date hereof) shall
be so true and correct as of such earlier date. The Investor shall have
performed and complied in all material respects with all covenants and
agreements required to be performed or complied with by the Investor hereunder
on or prior to the Closing Date.

                  6.2 Consents. All Consents required in connection with the
purchase and sale of the Series A Shares and the consummation of the Closing
(other than non-Material Consents from third parties) shall have been duly
obtained, made or given and shall be in full force and effect, without the
imposition upon the Company, KPMG or any of their respective Subsidiaries of any
Material condition, restriction or required undertaking.

                  6.3 No Injunction or Illegality. No injunction, order, decree
or judgment shall have been issued by any court or other Governmental Entity of
competent jurisdiction and be in effect, and no statute, rule or regulation
shall have been enacted or promulgated by any Governmental Entity and be in
effect, which in each case restrains or prohibits the consummation of the
purchase and sale of the Series A Shares.

                  6.4 HSR Act. The required waiting period applicable to the
purchase and sale of the Securities under the HSR Act shall have expired or been
earlier terminated.

                  6.5 Certificates. The Investor shall have delivered to KPMG
and the Company (a) a copy of the resolutions adopted by its Board of Directors
or Committee thereof, certified as of the Closing Date by the corporate
secretary or assistant secretary of the Investor, authorizing and approving this
Agreement and the other Transaction Documents to which it is a party and the
transactions contemplated hereby and thereby (including, without limitation, the
purchase of the Series A Shares), and (b) a certificate dated the Closing Date,
signed by an executive officer thereof, certifying as to the fulfillment of the
conditions set forth in Section 6.1.

                  6.6 Certificate of Designation. The Certificate of Designation
shall have been filed with the Secretary of State of the State of Delaware and
shall have become effective.

                                       31.

<PAGE>   37

                  6.7 Alliance Agreements. The Alliance Documents shall be in
full force and effect in accordance with their terms. The Investor shall have
performed and complied in all material respects with all covenants and
agreements required to be performed or complied with by the Investor under the
Alliance Documents, and shall not be in material default thereunder. In
addition, the representations and warranties of the Investor contained in the
Alliance Documents shall be true and correct in all material respects as of the
Closing Date with the same force and effect as though made on and as of the
Closing Date.

                  6.8 Opinion of Counsel to the Investor. KPMG and the Company
shall have received, in form and substance reasonably acceptable to KPMG and the
Company, the opinion of Brobeck, Phleger & Harrison LLP, special counsel to the
Investor.

                  6.9 Separation. As of the Closing, the Separation shall have
been consummated.

                  6.10 Accounting. KPMG and the Company shall be reasonably
satisfied that the Securities and Exchange Commission will permit the Investor
to account for its investment in the Company under the "cost-accounting" method
under GAAP.

                                       32.

<PAGE>   38

                                  ARTICLE VII

                            SURVIVAL; INDEMNIFICATION

                  7.1 Survival. The representations and warranties of the
parties contained in this Agreement, or in any Schedule hereto or any,
certificate delivered pursuant to Section 5.6 or Section 6.5 hereof, shall
survive until the earlier of (i) March 31, 2001 or (ii) December 31, 2000 if,
and only if, the Company has consummated a Qualified IPO by that date; provided,
however, that (a) the representations and warranties set forth in Sections 2.18
(Employee Benefit Plans) and 2.23 (Exemption from Registration) shall expire
upon expiration of all applicable statute of limitations periods, (b) the
representations and warranties set forth in Section 2.21 (Tax Matters) with
respect to a Tax shall survive the Closing and shall terminate and expire upon
the lapse of the statute of limitations for the assessment of such Tax, except
that the representations and warranties with respect to any Tax that is resolved
pursuant to a refund, setoff, or mitigation proceeding shall survive the Closing
and terminate sixty (60) days after the final administrative or judicial
determination thereof, (c) the representations and warranties set forth in
Sections 2.2 (Authorization, Validity and Enforceability) and 2.3 (No
Conflicts), insofar as they relate to the Alliance Documents and/or the Investor
Rights Agreement, shall survive for the period in which the Alliance Documents
or the Investor Rights Agreement are in effect, and (d) the representations and
warranties set forth in Sections 2.5 (Capitalization), 2.6 (Title to
Securities), 2.7 (Subsidiaries) (excluding paragraph (b) thereof), and 2.24(b)
(Transaction Document Representations) shall survive forever. The covenants and
agreements of the parties contained in this Agreement that by their terms are
required to be performed by any party hereto "on or prior to the Closing Date"
shall remain in full force and effect until the first anniversary of the Closing
Date, and all other covenants and agreements hereunder shall remain in full
force and effect in accordance with the terms hereof.

                  7.2 Indemnification.

                      (a) The Company and KPMG, and each of their respective
Subsidiaries, hereby agree to indemnify, defend, and hold harmless the Investor
(and its directors, officers, Affiliates, successors, and assigns) from and
against any out-of-pocket losses, liabilities, damages, costs, or expenses,
including interest, penalties, and reasonable attorneys' fees and expenses,
(collectively, "Losses"), or other diminution in the value of the Series A
Shares, arising out of, based upon, or otherwise resulting from (i) any
inaccuracy in any representation or breach of any warranty of the Company or
KPMG contained in this Agreement or in any Schedule hereto or certificate
delivered pursuant to Article V or (ii) the breach or nonfulfillment of any
covenant, agreement, or other obligation of the Company or KPMG under this
Agreement, the Investor Rights Agreement or the Certificate of Designation; it
being understood that the Company, KPMG and their respective Subsidiaries shall
not be obligated to further indemnify the Investor (and its directors, officers,
Affiliates, successors and assigns) on account of any further diminution in
value of the Series A Shares resulting solely from the payment of any amount due
to the Investor pursuant to Section 7.2(a)(i) or (ii).

                                       33.

<PAGE>   39

                  (b) The Investor hereby agrees to indemnify, defend, and hold
harmless KPMG and the Company (and their respective directors, officers,
partners, principals, Affiliates, successors, and assigns) from and against any
Losses arising out of, based upon, or otherwise resulting from (i) any
inaccuracy in any representation or breach of any warranty of the Investor
contained in this Agreement or in any Schedule hereto or certificate delivered
pursuant to Article VI or (ii) the breach or nonfulfillment of any covenant,
agreement, or other obligation of the Investor under this Agreement, the
Investor Rights Agreement, or the Certificate of Designation.

                  (c) Promptly after the receipt by any party hereto of notice
of any third-party claim or the commencement of any third-party action, suit or
proceeding subject to indemnification hereunder (a "Third-Party Claim"), such
party (the "Indemnified Party") will, if a claim in respect thereto is to be
made against any party obligated to provide indemnification hereunder (the
"Indemnifying Party"), give such Indemnifying Party prompt written notice of
such Third-Party Claim; provided, however, that the failure to provide such
notice will not relieve the Indemnifying Party of any of its obligations, or
impair the right of the Indemnified Party to indemnification pursuant to this
Section 7.2 unless, and only to the extent that, such failure materially
prejudices the Indemnifying Party's opportunity to defend or compromise the
Third-Party Claim or such failure directly increases the amount of
indemnification payments hereunder over and above the amount thereof that would
otherwise have been payable had such notice been provided as aforesaid. If the
Indemnified Party is not a litigant, participant, or real party in interest in
the Third-Party Claim, the Indemnifying Party shall be entitled and required to
assume the defense of such Third-Party Claim and defend the same at its own
expense and shall have sole authority to compromise or settle the same. If the
Indemnified Party is a litigant, participant, or real party in interest in the
Third-Party Claim (an "Interested Third-Party Claim"), the Indemnifying Party
shall have the right, at its option, to defend at its own expense and by its own
counsel such Interested Third-Party Claim, provided that (i) such counsel is
reasonably satisfactory to the Indemnified Party, (ii) the Indemnified Party is
kept reasonably informed of all developments, is furnished with copies of all
documents and papers related thereto, and is given the right to participate in
the defense and investigation thereof at the expense of the Indemnified Party as
provided below, and (iii) such counsel proceeds with diligence and in good faith
with respect thereto. If any Indemnifying Party shall undertake to defend any
Interested Third-Party Claim, it shall notify the Indemnified Party of its
intention to do so promptly (and in any event no later than thirty (30) days)
after receipt of notice of the Interested Third-Party Claim, and the Indemnified
Party agrees to cooperate in good faith with the Indemnifying Party and its
counsel in the defense of such Interested Third-Party Claim. Notwithstanding the
foregoing, the Indemnified Party shall have the right to participate in the
defense and investigation of any such Interested Third-Party Claim with its own
counsel at its own expense, except that the Indemnifying Party shall bear the
expense of one such separate counsel if (A) in the written opinion of counsel to
the Indemnified Party reasonably acceptable to the Indemnifying Party, the use
of counsel of the Indemnifying Party's choice to represent both the Indemnifying
Party and the Indemnified Party in such matter would be expected to give rise to
a conflict of interest, (B) there are or may be legal defenses available to the
Indemnified Party that are different from or additional to those available to
the Indemnifying Party, (C) the Indemnifying Party shall not have employed
counsel to represent the Indemnified Party within a reasonable time after notice
of such Interested Third-Party Claim is given to the Indemnifying Party or after
notice that the Indemnifying Party intends to assume the defense of the
Interested

                                       34.

<PAGE>   40

Third-Party Claim is given to the Indemnified Party, or (D) the
Indemnifying Party shall authorize the Indemnified Party in writing to employ
separate counsel at the expense of the Indemnifying Party. The Indemnifying
Party shall not settle any Interested Third-Party Claim without the prior
written consent of the Indemnified Party, which shall not be unreasonably
withheld (except that no such consent shall be required if such settlement
contains a complete release of all liability related to such Interested
Third-Party Claim). If, under the foregoing provisions, the Indemnified Party
assumes control of the defense of any Interested Third-Party Claim, the
Indemnified Party shall not settle such Interested Third-Party Claim without the
prior written consent of the Indemnifying Party, which shall not be unreasonably
withheld.

                  (d) Except to the extent otherwise required by law, any
indemnity payment made pursuant to this Section 7.2 or other payment made
pursuant to this Agreement shall be treated by the parties and their Affiliates
on their Tax Returns as an adjustment to the consideration being provided for
the Series A Shares hereunder. For purposes of this Section 7.2, Losses shall
include any tax liabilities of the Indemnified Party resulting from the
indemnity payments and shall be reduced by the Indemnified Party by any tax
benefits realized by the Indemnified Party as a result of the losses,
liabilities, damages, costs or expenses included in computing the Losses.

                  (e) Notwithstanding the foregoing, no Indemnified Party shall
be entitled to payment from an Indemnifying Party under this Section 7.2, unless
and until the total value of any claim or claims, whether considered
individually or in the aggregate, exceeds $10,000,000 in value (the "Indemnity
Threshold"). Once the Indemnity Threshold has been exceeded, the Indemnified
Party is entitled to reimbursement for the total value of any claim or claims
(including the initial $10,000,000).

             7.3  Limitations.

                  (a) In no event shall any party be liable hereunder, to
another party to this Agreement, for consequential, special, exemplary or
punitive damages, including, but not limited to, damages consisting of business
interruption or lost profits, damages for lost value of the Company, or damages
computed on a multiple of earnings or similar basis, arising from breach of this
Agreement (it being understood that this Section 7.3 shall in no event limit the
indemnification obligations of Section 7.2 for damages, including consequential,
special, exemplary, or punitive damages, suffered by a third party that are the
subject of a Third-Party Claim).

                  (b) Thirty (30) days after the Closing, the Company shall
assume all obligations of KPMG hereunder and KPMG shall have no further
liability for any representations, warranties, covenants, indemnities or other
agreements included in this Agreement; provided, however, that KPMG shall in any
event remain liable and responsible for (i) any fraud, gross negligence, or
willful misconduct on the part of KPMG and (ii) any breach or default under
Sections 2.24(c) or 4.11 hereof.

                                       35.

<PAGE>   41

                                  ARTICLE VIII

                                   TERMINATION

             8.1  Termination of Agreement. This Agreement may be terminated
prior to the Closing:

                  (a) by either party hereto, upon written notice to the other
if, without fault of the terminating party, the Closing shall not have occurred
on or before February 29, 2000; provided, however, that a party shall not be
entitled to terminate the Agreement on account of this paragraph (a) in the
event that the conditions to Closing have not been satisfied on account of such
party's breach of its representations, warranties or covenants; or

                  (b) by either party hereto, upon written notice to the other,
if the Separation Agreement is terminated or any party thereto becomes unable to
consummate the Separation in accordance with the terms thereof (in each case
without any breach or default by the party so terminating this Agreement); or

                  (c) by either party hereto, upon written notice to the other,
if there has been a material breach or default of any covenant or agreement
hereunder or under any of the Alliance Documents on the part of such other party
or, in the case of any such Alliance Document, any other party thereto, which
breach or default is not curable or, if curable, is not cured within fifteen
(15) Business Days after notice to such party of the breach or default; or

                  (d) at any time by mutual agreement in writing of the parties
hereto.

             8.2  Effect of Termination. In the event of the termination of this
Agreement pursuant to Section 8.1, this Agreement shall thereafter become void
and have no effect, and (subject to the next sentence) no party hereto shall
have any liability or obligation to any other party hereto in respect of this
Agreement, except that the provisions of Section 4.2 (Access to Information;
Consultation; Confidentiality), Section 4.6 (Public Announcements), Section 7.2
(Indemnification), Article X (Miscellaneous), and this Section 8.2 shall survive
any such termination. Nothing herein shall relieve any party from liability for
any breach of any of its representations, warranties, covenants or agreements
contained in this Agreement prior to termination of this Agreement.

                                   ARTICLE IX
                                   DEFINITIONS

             9.1  Definitions. The following terms when used in this Agreement
(including the Schedules and Exhibits hereto) shall have the following
respective meanings:

             "Affiliate" of a Person means any other Person that directly
or indirectly through one or more intermediaries controls, is controlled by or
is under common control with such Person. For purposes of this definition and
the definition of "Subsidiary" below, "control" (or

                                     36.

<PAGE>   42

"controlled," as the context may require) shall have the meaning set forth in
Rule 12b-2 under the Exchange Act.

                  "Agreement" has the meaning set forth in the first paragraph
 of this Agreement.

                  "Alliance" has the meaning set forth in the Alliance
 Agreement.

                  "Alliance Agreement" means that certain Alliance Agreement
dated as of December 15, 1999 between KPMG and the Investor.

                  "Alliance Documents" means the Alliance Agreement and each
other Contract entered into or delivered pursuant to the formation of the
Alliance as of the Closing.

                  "Alternative Transaction" and "Alternative Transaction
Proposal" have the respective meanings set forth in Section 4.7.

                  "Auditor Independence Rules" has the meaning set forth in
Section 4.10.

                  "Business Day" means any day other than a Saturday, Sunday or
other day on which commercial banks in California or New York are required or
authorized by law to be closed.

                  "Certificate of Designation" has the meaning set forth in the
recitals of this Agreement.

                  "Closing" has the meaning set forth in Section 1.2.

                  "Closing Date" has the meaning set forth in Section 1.2.

                  "Code" means the Internal Revenue Code of 1986, as amended,
and the Treasury Regulations promulgated thereunder.

                  "Common Stock" has the meaning set forth in the recitals of
this Agreement.

                  "Company" has the meaning set forth in the first paragraph of
this Agreement.

                  "Company Auditors" has the meaning set forth in Section 2.9.

                  "Consents" has the meaning set forth in Section 2.4.

                  "Consulting Business" has the meaning set forth in the
Separation Agreement. "Consulting Intellectual Property" has the meaning set
forth in Section 2.17.

                  "Contracts" means all written or binding oral contracts,
agreements, undertakings, indentures, notes, debentures, bonds, loans,
instruments, leases, mortgages, franchise, license, commitments or other binding
arrangements.

                  "Conversion Shares" has the meaning set forth in Section 2.6.

                                      37.

<PAGE>   43

                  "Disclosure Schedule" has the meaning set forth in the first
paragraph of Article II.

                  "Election Period" has the meaning set forth in Section 4.10.

                  "Environmental Laws" means the Federal Comprehensive
Environmental Response, Compensation and Liability Act, the Federal Water
Pollution Control Act, the Safe Drinking Water Act, the Federal Clean Water Act,
the Federal Clean Air Act, the Federal Resource Conservation and Recovery Act,
the Hazardous Materials Transportation Act, the Federal Solid Waste Disposal
Act, the Federal Toxic Substances Control Act, the Federal Insecticide,
Fungicide and Rodenticide Act, and the Occupational Safety and Health Act, each
as amended, and all other environmental statutes enacted by any Governmental
Entity, and any executive order, ordinances, rules or regulations promulgated
under any of the foregoing.

                  "ERISA" means the Employee Retirement Income Security Act of
1974, as amended, and the rules and regulations promulgated thereunder.

                  "Financial Statements" means (i) the audited combined
statements of assets and liabilities of the Consulting Business at June 30,
1999, 1998 and 1997 and the related combined statement of revenues and expenses
and combined statements of cash flows of the Consulting Business for the periods
then ended, including in each case the related notes and auditor's report
thereon, and (ii) the unaudited combined statement of assets and liabilities of
the Consulting Business at September 30, 1999 and the related combined statement
of revenues and expenses and combined statement of cash flows of the Consulting
Business for the fiscal year-to-date periods then ended.

                  "GAAP" means United States generally accepted accounting
principles.

                  "Governmental Entity" means any federal, state, local or
foreign government, political subdivision, legislature, court, agency,
department, bureau, commission or other governmental or regulatory authority,
body or instrumentality, including any industry or other non-governmental
self-regulatory organizations.

                  "HSR Act" has the meaning set forth in Section 2.2.

                  "Indemnified Party" and "Indemnifying Party" have the
respective meanings set forth in Section 7.2.

                  "Indemnity Threshold" has the meaning set forth in Section
7.2.

                  "Intellectual Property" has the meaning set forth in Section
2.17.

                  "Interested Third Party Claim" has the meaning set forth in
Section 7.2.

                  "Interim Financial Statements" has the meaning set forth in
Section 4.8.

                  "Investor" has the meaning set forth in the first paragraph of
this Agreement.

                                      38.

<PAGE>   44

                  "Investors' Rights Agreement" has the meaning set forth in
Section 5.10.

                  "IPO Notice" has the meaning set forth in Section 4.10.

                  "IPO Notice Date" has the meaning set forth in Section 4.10.

                  "IRS" means the United States Internal Revenue Service.

                  "Knowledge" means (i) with respect to any natural person, the
actual knowledge, after reasonable inquiry, of such person or (ii) with respect
to any corporation or other entity, the actual knowledge of such party's
executive officers and directors provided that such persons shall have made
reasonable inquiry of those employees of such party whom such executive officers
and directors reasonably believe would have actual knowledge of the matters
represented.

                  "KPMG" has the meaning set forth in the first paragraph of
this Agreement.

                  "KPMG Firms" has the meaning set forth in Section 2.5.

                  "Liability" and "Liabilities" have the meanings set forth in
Section 2.10.

                  "Lien or Encumbrance" means any lien, pledge, mortgage,
security interest, claim, lease, charge, option, right, easement, servitude,
transfer limit, restriction, title defect or other encumbrance.

                  "LLC" has the meaning set forth in the recitals.

                  "Losses" has the meaning set forth in Section 7.2.

                  "Material" means any event, change, condition or effect which
(i) is material to the Consulting Business or, after the Separation, the Company
and its subsidiaries, taken as a whole, or (ii) would have a material adverse
effect on the ability of KPMG, the Company or any other party to execute and
deliver this Agreement, any Separation Document (it being understood that, with
respect to the Member Agreements, this definition of Material considers such
Member Agreements taken as a whole and not individually), any Alliance Document
or any other Transaction Document, to perform its obligations hereunder or
thereunder, or to consummate the sale of Series A Shares hereunder, the
Separation, the formation of the Alliance or any other transaction contemplated
hereunder or thereunder or to prevent or materially alter or delay the purchase
of Series A Shares, the Separation, the formation of the Alliance or any of the
other transactions contemplated by this Agreement.

                  "Material Adverse Effect" means any event, change condition or
effect that individually or in the aggregate together with other events,
changes, conditions or effects (i) is materially adverse to the Consulting
Business or, after the Separation, the Company and its subsidiaries, taken as a
whole, or (ii) would have a material adverse effect on the ability of KPMG, the
Company or any other party to execute and deliver this Agreement, any Separation
Document (it being understood that, with respect to the Member Agreements, this
definition of Material considers such Member Agreements taken as a whole and not
individually), any

                                      39.

<PAGE>   45

Alliance Document or any other Transaction Document, to perform its obligations
hereunder or thereunder, or to consummate the sale of Series A Shares hereunder,
the Separation, the formation of the Alliance or any of the other transactions
contemplated hereunder or thereunder, or to prevent or materially alter or delay
the purchase by the Investor from the Company of Series A Shares, the
Separation, the formation of the Alliance or any of the other transactions
contemplated by this Agreement, other than any event, change, condition or
effect relating to generally applicable economic conditions or relating to
conditions generally applicable to the industry of the Consulting Business in
general.

                  "Member Agreements" shall mean those agreement set forth in
clauses (ii), (iii), (iv), (v) and (vi) under the definition of Separation
Documents in this Section 9.1.

                  "Outsourcing Agreement" shall mean that agreement set forth in
clause (i) under the definition of Separation Documents in Section 9.1.

                  "Permits" means all licenses, certificates of authority,
permits, orders, consents, approvals, registrations, authorizations,
qualifications and filings under any federal, state, local or foreign laws or
with any Governmental Entities.

                  "Person" means any individual, corporation, partnership,
limited liability company, firm, joint venture, association, joint stock
company, trust, unincorporated organization, Governmental Entity or other entity
or organization.

                  "Plan" means "any employee benefit plan" (as that term is
defined in section 3(3) of ERISA), as well as any other formal or informal plan,
arrangement or contract involving direct or indirect compensation, in which any
current or former officers or employees of the Company, KPMG or any of their
respective Subsidiaries involved in the Consulting Business participate, or to
which the Company, KPMG or any of their respective Subsidiaries has any
liability related to the Consulting Business or under which the Company, KPMG or
any of their respective Subsidiaries has any present or future obligations or
liability on behalf of their respective employees or former employees involved
in the Consulting Business or their dependents or beneficiaries, including but
not limited to, each retirement, pension, profit-sharing, thrift, savings,
target benefit, employee stock ownership, cash or deferred, multiple employer,
multiemployer or other similar plan or program, each other deferred or incentive
compensation, bonus, stock option, employee stock purchase, "phantom stock" or
stock appreciation right plan, each other program providing payment or
reimbursement for or of medical, dental or visual care, psychiatric counseling,
or vacation, sick, disability or severance pay and each other "fringe benefit"
plan or arrangement.

                  "Preempted Specified Company" has the meaning set forth in
Section 4.10.

                  "Preferred Stock" has the meaning set forth in Section 2.5.

                  "Prior Bidders" has the meaning set forth in Section 4.7.

                  "Property" means any real, personal or mixed property, whether
tangible or intangible.

                                      40.

<PAGE>   46

                  "Purchase Price" has the meaning set forth in Section 1.1.

                  "Qualified IPO" has the meaning set forth in the Investor
Rights Agreement.

                  "Redemption Value" has the meaning set forth in the
Certificate of Designation.

                  "Representatives" has the meaning set forth in Section 4.2.

                  "Restricted Period" has the meaning set forth in the
Investors' Rights Agreement.

                  "Securities Act" means the Securities Act of 1933, as amended,
and the rules and regulations thereunder.

                  "Separation" has the meaning set forth in the recitals of this
Agreement.

                  "Separation Documents" means the Separation Agreement and each
other Contract (which, viewed singly, is Material) entered into or delivered
pursuant to the same, including the following (as they are each defined in the
Separation Agreement): (i) the Outsourcing Agreement, (ii) the KPMG Qualified
Member Distribution Agreements (not individually, but generally taken as a
whole), (iii) the Consulting Qualified Member Distribution Agreements (not
individually, but generally taken as a whole), (iv) the KPMG Non-Qualified
Member Distribution Agreements (not individually, but generally taken as a
whole), (v) the Consulting Non-Qualified Member Distribution Agreements (not
individually, but generally taken as a whole), (vi) the Consulting Non-Eligible
Member Agreements (not individually, but generally taken as a whole), (vii) the
Registration Rights Agreement, (viii) the Separation Note, and (ix) the Leased
Asset Agreement.

                  "Series A Preferred Stock" and "Series A Shares" have the
respective meanings set forth in the recitals of this Agreement.

                  "Specified Companies" has the meaning set forth in Section
4.10.

                  "Specified Company List" has the meaning set forth in Section
4.10.

                  "Submission" has the meaning set forth in Section 4.10.

                  "Subsidiary" means, with respect to any Person, any entity
controlled (as such term is defined in the definition of "Affiliate" above) by
such Person.

                  "Systems" has the meaning set forth in Section 2.26.

                  "Tax" and "Taxes" mean all income, profits, gains, gross

receipts, net worth, premium, value added, ad valorem, sales, use, excise,
stamp, transfer, franchise, withholding, payroll, employment, occupation,
severance, unemployment insurance, social security and property taxes, and all
other taxes of any kind whatsoever (including estimated taxes), together with
any interest, penalties and additions thereto imposed by any federal, state,
local or foreign government or any agency or political subdivision of any such
government, including all amounts imposed as a result of being a member of an
affiliated or combined group, as a result of

                                      41.

<PAGE>   47
being a transferee or successor in interest or as a result of a contractual
indemnification agreement.

                  "Tax Return" means all returns, reports, elections, estimates,
declarations, information statements and other forms and documents (including
all schedules, exhibits, and other attachments thereto) relating to, and
required to be filed in connection with, any Taxes (including estimated Taxes).

                  "Third Party Claim" has the meaning set forth in Section 7.2.

                  "Transaction Documents" means, collectively, (a) this
Agreement, (b) the Certificate of Designation, (c) the Investor Rights
Agreement, (d) the Alliance Documents, and (e) the Separation Documents, and (f)
each other Contract (which, viewed singly, is Material) entered into or
delivered pursuant to any of the same or the transactions contemplated hereby or
thereby. For purposes of this Agreement, the Separation and the Alliance shall
be deemed a transaction contemplated by this Agreement, and all references to
the "consummation" of the Alliance shall mean the formation of the Alliance.

                  "Transaction Securities" has the meaning set forth in Section
3.6.

                  "Voting Securities" means all outstanding capital stock or
other securities of the Company entitled to vote generally for the election of
directors or on any matters on which the holders of Common Stock are entitled to
vote, whether under ordinary circumstances, contingently or otherwise.

                  "Year 2000 Compliant" has the meaning set forth in Section
2.26.

                                   ARTICLE X

                                  MISCELLANEOUS

             10.1 Notices. Any notices and other communications required to be
given pursuant to this Agreement shall be in writing and shall be effective upon
delivery by hand (against written receipt) or upon receipt if sent by certified
or registered mail (postage prepaid and return receipt requested) or by a
nationally recognized overnight courier service (appropriately marked for
overnight delivery) or upon transmission if sent by telex or facsimile (with
request for immediate confirmation of receipt in a manner customary for
communications of such respective type and with physical delivery of the
communication being made by one of the other means specified in this Section
10.1 as promptly as practicable thereafter) Notices are to be addressed as
follows:

                           (a)      If to KPMG to:

                           KPMG LLP
                           345 Park Avenue
                           New York, New York 10154

                                      42.

<PAGE>   48

                           Attention: Chairman
                           Telecopy No.: (212) 758-9819

                           With a copy to:
                           KPMG LLP
                           280 Park Avenue
                           New York, New York 10017
                           Attention: Claudia Taft
                           Telecopy No.: (212) 909-5485

                           and

                           Sidley & Austin
                           Bank One Plaza
                           10 South Dearborn Street
                           Chicago, Illinois 60603
                           Attention: Paul L. Choi, Esq.
                           Telecopy No.: (312) 853-7036

                           (b)      If to the Company to:

                           KPMG Consulting, Inc.
                           Three Chestnut Ridge Road
                           Montvale, New Jersey 07645
                           Attention: Chief Financial Officer
                           Telecopy No.:    (201) 505-6262

                           with a copy to:

                           KPMG LLP
                           280 Park Avenue
                           New York, New York 10017
                           Attention: Claudia Taft
                           Telecopy No.: (212) 909-5485

                           and

                           Sidley & Austin
                           Bank One Plaza
                           10 South Dearborn Street
                           Chicago, Illinois 60603
                           Attention:  Paul L. Choi, Esq.
                           Telecopy No.: (312) 853-7036

                           (c)      If to the Investor to:

                           Cisco Systems, Inc.

                                      43.

<PAGE>   49

                           170 West Tasman Drive
                           San Jose, California 95134
                           Attention:  Larry Carter
                           Telecopy No.: (408) 526-4545

                           with a copy to:

                           Brobeck, Phleger & Harrison LLP
                           Two Embarcadero Place
                           2200 Geng Road
                           Palo Alto, California 94303
                           Attention: Curtis L. Mo, Esq.
                           Telecopy No.: (650) 496-2885

or to such other respective addresses as any of the parties hereto shall
designate to the others by like notice, provided that notice of a change of
address shall be effective only upon receipt thereof.

             10.2 Fees and Expenses. Except as provided herein, each of the
parties hereto shall pay its own respective fees and expenses (including,
without limitation, the fees and disbursements of any attorneys, accountants,
investment bankers, consultants or other Representatives) incurred in connection
with this Agreement and the transactions contemplated hereby, whether or not
such transactions are consummated.

             10.3 Specific Performance. Each party hereto acknowledges and
agrees that in the event of any breach or default by the other party under this
Agreement, the other party hereto would be irreparably and immediately harmed
and could not be made whole by monetary damages. It is accordingly agreed that
in such case (i) each defaulting party hereto will waive, in any action, suit or
proceeding for specific performance or other relief referred to in this
paragraph, the defense of adequacy of money damages or a remedy at law, and (ii)
the other non-defaulting party shall be entitled, in addition to any other
remedy to which it may be entitled at law or in equity or otherwise, to compel
specific performance of this Agreement or to obtain a temporary restraining
order, preliminary and permanent injunction or other equitable relief or remedy,
in any action, suit or proceeding instituted in any state or federal court.

             10.4 Entire Agreement; Waivers and Amendments. This Agreement
(including the Exhibits and Schedules hereto and the documents and instruments
referred to herein) contains the entire agreement and understanding of the
parties with respect to the subject matter hereof and supersedes all prior
written or oral agreements, representations and understandings with respect
thereto. This Agreement may only be amended or modified, and the terms hereof
may only be waived, by a writing signed by both parties hereto or, in the case
of a waiver, by the party entitled to the benefit of the terms being waived.

             10.5 Assignment; Binding Effect. This Agreement may not be assigned
or delegated, in whole or in part, by either party hereto without the prior
written consent of the other party hereto, except that the Investor shall have
the right at any time, without such consent, to assign its right hereunder to
purchase any or all of the Series A Shares to any wholly owned

                                      44.

<PAGE>   50

Subsidiary of the Investor (in which event, the Investor shall irrevocably and
unconditionally guarantee the performance by such Subsidiary of the Investor's
obligation hereunder to purchase such Series A Shares). Subject to the
foregoing, this Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns.

             10.6 Severability. In the event that any provision of this
Agreement shall be declared invalid or unenforceable by a court of competent
jurisdiction in any jurisdiction, such provision shall, as to such jurisdiction,
be ineffective to the extent declared invalid or unenforceable without affecting
the validity or enforceability of the other provisions of this Agreement, and
the remainder of this Agreement shall remain binding on the parties hereto (so
long as the economic or legal substance of the transactions contemplated hereby
is not affected in any manner adverse to any party). Upon such determination,
the parties shall negotiate in good faith to modify this Agreement so as to
effect the original intent of the parties as closely as possible in a mutually
acceptable manner in order that the transactions contemplated hereby be
consummated as originally contemplated to the greatest extent possible.

             10.7 No Third Party Beneficiaries. This Agreement is for the
benefit of the parties hereto and is not intended to confer upon any other
Person any rights or remedies hereunder. Notwithstanding anything herein to the
contrary, the only Persons entitled to assert any rights or claims hereunder are
KPMG, the Company, and the Investor.

             10.8 Governing Law. This Agreement shall be governed by and
construed in accordance with the internal laws of the State of California,
without giving effect to the principles of conflicts of law thereof.

             10.9 Interpretation. This Agreement is the result of arms-length
negotiations between the parties hereto and has been prepared jointly by the
parties. In applying and interpreting the provisions of this Agreement, there
shall be no presumption that the Agreement was prepared by any one party or that
the Agreement shall be construed in favor of or against any one party.

             10.10 Captions. The Article and Section Headings in this Agreement
are inserted for convenience of reference only, and shall not affect the
interpretation of this Agreement.

             10.11 Counterparts. This Agreement may be executed in counterparts,
each of which shall be deemed an original and all of which together shall be
considered one and the same agreement.

                           [SIGNATURE PAGE TO FOLLOW]

                                      45.

<PAGE>   51

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

                                            CISCO SYSTEMS, INC.

                                            By: /s/ John T. Chambers
                                               -----------------------------
                                            Name: John T. Chambers
                                            Title: President and Chief Executive
                                                   Officer

                                            KPMG LLP

                                            By: /s/ Stephen G. Butler
                                               -----------------------------
                                            Name: Stephen G. Butler
                                            Title: Chairman

                                            KPMG CONSULTING, INC.

                                            By: /s/ Roderick C. McGeary
                                               -----------------------------
                                            Name: Roderick C. McGeary
                                            Title: President and Co-Chief
                                                   Executive Officer

                  [SIGNATURE PAGE TO STOCK PURCHASE AGREEMENT]

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