Document:

Amendment No. 3 to Indenture dated October 18, 2002

 EXHIBIT 10.1 
  
 EXECUTION COPY 
  
 AMENDMENT NO. 3 
  
 Dated as of July 1, 2003 
  
 THIS AMENDMENT NO. 3 (the “Amendment”) is entered into as of July 1, 2003 by and among EDUCATION FUNDING RESOURCES, LLC, (the “Issuer”), EDUCATION LENDING SERVICES, INC. (the
“Master Servicer”), CRC FUNDING, LLC (as successor to CORPORATE RECEIVABLES CORPORATION) and CAFCO, LLC (as successor to CORPORATE ASSET FUNDING COMPANY, INC.) (each a “Conduit Lender”), the financial institutions
party to the “Indenture” (as defined below) from time to time as “Committed Lenders (each a “Committed Lender” and, together with the Conduit Lenders, the “Lenders”), CITICORP NORTH AMERICA, INC.
(“CNAI”) as agent for the Lenders (the “Agent”) and FIFTH THIRD BANK, as indenture trustee (the “Indenture Trustee”) and as eligible lender trustee (the “Eligible Lender Trustee”).
Capitalized terms used herein and not defined herein shall have the meanings given to such terms in the Indenture. 
  
 PRELIMINARY STATEMENTS 
  
 A. The Issuer, the Master Servicer, the Lenders, the Agent, the Indenture Trustee and the Eligible Lender Trustee are parties to that certain Indenture dated as of October 18, 2002 (as amended, restated, supplemented
or otherwise modified from time to time, the “Indenture”). 
  
 B. The Issuer has requested that the Lenders and the Agent amend the Indenture and the Lenders and the Agent have agreed to amend the Indenture on the terms and conditions set forth herein. 
  
 NOW, THEREFORE, in consideration of the premises set forth above, and other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 
  
 SECTION 1. Amendments to the Indenture. Effective as of the “Amendment Effective Date” (as defined below) and subject to the satisfaction
of the conditions precedent set forth in Section 2 below: 
  
 (a) Section 13.13 of the Indenture is hereby amended and restated in its entirety to read as follows: 
  
 SECTION 13.13 Confidentiality. 
  
 (a) Notwithstanding any other provision herein, each of the parties hereto (and each employee, representative or other agent of each such
party) may disclose to any and all persons, without limitation of any kind, the U.S. tax treatment and U.S. tax 

 
structure (the “Structure and Tax Aspects”) of the transaction (the “Transaction”) contemplated by this Agreement and the
Transaction Documents and all materials of any kind (including opinions or other tax analyses) that are provided to such party relating to such U.S. tax treatment and U.S. tax structure, other than any information for which nondisclosure is
reasonably necessary in order to comply with applicable securities laws. 
  
 (b) Subject to the provisions of the foregoing paragraph (a), each of the Issuer and the Master Servicer agrees that it shall not (and shall not allow any of its Affiliates to) disclose to any Person or entity the
existence of this Agreement, the other Transaction Documents or the terms hereof (including, without limitation, any specific pricing information provided by the Agent and its Affiliates or the amount or terms of any fees payable to the Agent and
its Affiliates in connection with the Transaction) or the structure of the Transaction, any related structures developed by the Agent and its Affiliates for the Issuer or the Master Servicer, any related analyses, computer models, information or
documents, any written or oral reports from the Agent and its Affiliates to the Issuer or the Master Servicer or any related written information, to the extent that such items do not constitute Structure and Tax Aspects or the existence and status
of any ongoing negotiations between the Issuer and its Affiliates and the Agent and its Affiliates concerning the Transaction (collectively, the “Product Information”), except to its and its Affiliates’ employees, officers,
directors, advisors, representatives, accountants, legal counsel and agents (collectively, the “Company Representatives”) who have a need to know the Product Information for the purpose of assisting in the negotiation and completion
of the Transaction and who agree to be bound by the provisions of this Section 13.13 and to use such Product Information only in connection with the Transaction and not for any other purpose. The Issuer will be responsible for any failure of
any Company Representative to comply with the provisions of this Section 13.13. “Product Information” shall not include, however, information that is a matter of general public knowledge or has heretofore been or is hereafter
published in any source generally available to the public other than as a result of a disclosure by any person required to keep such information confidential as provided in this section. The Issuer, the Master Servicer and any of their respective
Affiliates may disclose Product Information to the extent required by applicable law, regulation, subpoena or other legal process or as requested by any governmental agency or other regulatory authority (including, without limitation, any
self-regulatory authority) with jurisdiction over the Issuer, the Master Servicer or any of their respective Affiliates. 
  
 (c) Each of the Secured Parties agrees (i) to keep all non-public information with respect to the Issuer and the Master Servicer and their
respective Affiliates which such Secured Party receives pursuant to the Transaction Documents (collectively, the “Issuer Information”) confidential and to disclose Issuer Information only to those of its officers, employees, agents,
accountants, legal counsel and other representatives of the Secured Parties (collectively, the “Secured Party Representatives”), to the rating agencies or to their Program Support Providers which, in each case, may have a need to
know or review such Issuer Information for the purpose of assisting in the negotiation, completion, administration and evaluation of the Transaction (ii) to use the Issuer 
  

 2 

 
Information only in connection with the Transaction and not for any other purpose; and (iii) to cause its related Secured Party Representatives to comply
with the provisions of this Section 13.13(c). The provisions of this Section 13.13(c) shall not apply to any Issuer Information that is a matter of general public knowledge or that has heretofore been made available to the public by
any Person other than such Secured Party Representative or that is required to be disclosed by law or is requested by any authority with jurisdiction over any Secured Party or Secured Party Representative or any of its Affiliates. 
  
 (d) Notwithstanding the foregoing, the Issuer Information
may be disclosed by any Secured Party to permitted assignees and participants and potential assignees and participants in the Transaction to the extent such disclosure is made pursuant to a written agreement of confidentiality substantially similar
to this Section 13.13. 
  
 (e) The
provisions of this Section 13.13 shall survive the termination of this Agreement. 
  
 (b) The definition of “Commitment” contained in Appendix A to the Indenture is hereby amended and restated in its entirety to read as follows: 
  
 “ ‘Commitment’ means the obligation of
a Committed Lender to make Advances pursuant to the Agreement in an amount not to exceed, in aggregate, the amount set forth opposite such Committed Lender’s name on the signature pages to Amendment No. 3, dated as of July 1, 2003, to the
Agreement, as such amount may be modified from time to time in accordance with the terms of the Agreement.” 
  
 (c) The definition of “Program Limit” contained in Appendix A to the Indenture is hereby amended and restated in its entirety to read as
follows: 
  
 “ ‘Program
Limit’ means (i) for the period from (and including) July 1, 2003 to (but excluding) the earlier of (A) September 30, 2003 or (B) such date requested by the Issuer and agreed to in writing by the Agent, an amount equal to $750,000,000 and
(ii) otherwise, $500,000,000.” 
  
 SECTION 2. Effective
Date. This Amendment shall become effective, as of the date first above written (the “Amendment Effective Date”), upon receipt by the Agent of (i) six (6) copies of this Amendment duly executed by each of the Issuer, the Master
Servicer, the Lenders, the Agent, the Indenture Trustee and the Eligible Lender Trustee, (ii) a secretary’s certificate from each of the Issuer and the Master Servicer certifying resolutions for the Issuer and the Master Servicer approving the
execution and delivery of the Amendment and (iii) an amendment fee in an amount equal to $25,000 in immediately available funds (which shall be fully earned and non-refundable as of the date paid). 
  
 SECTION 3. Covenants, Representations and Warranties of the Issuer and the
Master Servicer. 
  

 3 

 3.1 Upon the effectiveness of this Amendment, the Issuer and the Master Servicer each hereby reaffirms
all covenants, representations and warranties made by it in the Indenture and agrees that all such covenants, representations and warranties shall be deemed to have been re-made as of the Amendment Effective Date. 
  
 3.2 As of the Amendment Effective Date, each of the Issuer and the Master
Servicer represents and warrants to the Lenders and the Agent that: 
  
 (a) the representations and warranties made by it in the Indenture are true and correct with the same effect as if made on and as of the Amendment Effective Date (except to the extent such representations and warranties expressly refer to
an earlier date, in which case they were true and correct as of such earlier date); 
  
 (b) after giving effect to the amendments and waivers contained herein, no Unmatured Event of Termination or Event of Termination exists or will result from the execution of this Amendment; 
  
 (c) no event or circumstance has occurred since October 18, 2002 that has
resulted, or could reasonably be expected to result in a Material Adverse Change; 
  
 (d) each of the Indenture and this Amendment has been duly authorized by proper corporate proceedings of the Issuer and the Master Servicer and constitutes the legal, valid and binding obligation of the Issuer and the
Master Servicer enforceable against the Issuer and the Master Servicer in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of
creditors’ rights generally and general principles of equity which may limit the availability of equitable remedies; and 
  
 (e) this Amendment does not affect the enforceability of the Indenture against the Issuer or the Master Servicer, except as such enforceability may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and general principles of equity which may limit the availability of equitable remedies.

  
 SECTION 4. Effect on the Indenture. 
  
 4.1 On and after the Amendment Effective Date, each reference in the
Indenture to “this Indenture”, “this Agreement”, “hereunder”, “hereof”, “herein” or words of like import, and all references to the Indenture in any and all agreements, instruments, documents, notes,
certificates and other writings of every kind and nature shall be deemed to mean and be a reference to the Indenture as amended hereby. The Indenture and other documents, instruments and agreements executed and/or delivered in connection therewith
shall remain in full force and effect and are hereby ratified and confirmed. 
  
 4.2 The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of the Lenders or the Agent under the 
  

 4 

 
Indenture or any of the other Transaction Documents, nor constitute a waiver of any provision contained therein, except as specifically set forth herein.

  
 4.3 Each party hereto agrees and acknowledges that this
Amendment constitutes a “Transaction Document” under and as defined in the Indenture. 
  
 SECTION 5. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (INCLUDING
SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW BUT OTHERWISE WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES). 
  
 SECTION 6. Execution in Counterparts. This Amendment may be executed in any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which taken together shall constitute but one and the same instrument. Delivery of an executed counterpart of this Amendment by facsimile shall
be deemed as effective as delivery of an originally executed counterpart. Any party delivering an executed counterpart of this Amendment by facsimile will also deliver an original executed counterpart, but the failure of any party to so deliver an
original executed counterpart of this Amendment will not affect the validity or effectiveness of this Amendment. 
  
 SECTION 7. Successors and Assigns. This Amendment shall be binding upon and shall inure to the benefit of each of the Issuer, the Master Servicer,
the Lenders, the Agent, the Indenture Trustee, the Eligible Lender Trustee and their respective successors and assigns. 
  
 SECTION 8. Headings. Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of
this Amendment for any other purpose. 
  
 SECTION 9.
Agent’s Expenses. The Issuer agrees to promptly reimburse the Agent for all of the reasonable out-of-pocket expenses, including, without limitation, legal fees, it has heretofore or hereafter incurred or incurs in connection with the
preparation, negotiation and execution of this Amendment and all other instruments, documents and agreements executed and delivered in connection with this Amendment. 
  
 SECTION 10. Integration. This Amendment contains the entire understanding of the parties hereto with regard to the
subject matter contained herein. This Amendment supersedes all prior or contemporaneous negotiations, promises, covenants, agreements and representations of every nature whatsoever with respect to the matters referred to in this Amendment, all of
which have become merged and finally integrated into this Amendment. Each of the parties hereto understands that in the event of any subsequent litigation, controversy or dispute concerning any of the terms, conditions or provisions of this
Amendment, no party shall be entitled to offer or introduce into evidence any oral promises or oral agreements between the parties relating to the subject matter of this Amendment not included or referred to herein and not reflected by a writing
included or referred to herein. 
  

 5 

 SECTION 11. No Course of Dealing. The Agent and the Lenders have entered into this Amendment on
the express understanding with the Issuer and the Master Servicer that in entering into this Amendment the Agent and the Lenders are not establishing any course of dealing with the Issuer or the Master Servicer. The Agent’s and the
Lenders’ rights to require strict performance with all of the terms and conditions of the Indenture and the other Transaction Documents shall not in any way be impaired by the execution of this Amendment. None of the Agent and the Lenders shall
be obligated in any manner to execute any further amendments or waivers and if such waivers or amendments are requested in the future, assuming the terms and conditions thereof are satisfactory to them, the Agent and the Lenders may require the
payment of fees in connection therewith. 
  
 [REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK] 
  

 6 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed on the date first set
forth above by their respective officers thereto duly authorized, to be effective as hereinabove provided. 
  

	 EDUCATION FUNDING RESOURCES, LLC,
 as Issuer

		
	 By:
	 	 /s/ Perry D. Moore

	 Name:
	 	 PERRY D. MOORE

	 Title:
	 	 SVP-Finance

	
	 EDUCATION LENDING SERVICES, INC.,
 as Master Servicer

		
	 By:
	 	 /s/ Perry D. Moore

	 Name:
	 	 PERRY D. MOORE

	 Title:
	 	 SVP-Finance

  
 Amendment No.
3 
 dated as of July 1, 2003 
 to Indenture 
 dated as of October 18, 2002 

	 CRC FUNDING, LLC (as successor to CORPORATE
 RECEIVABLES CORPORATION),
 as Conduit Lender

		
	 By:
	 	 CITICORP NORTH AMERICA, INC.,

	 	 	 its attorney-in-fact

		
	 By:
	 	 /s/ Sumeet Wadhera

	 Name:
	 	SUMEET WADHERA
	 Title:
	 	Vice President
	
	 CAFCO, LLC (as successor to CORPORATE ASSET
 FUNDING COMPANY, INC.),
 as Conduit Lender

		
	 By:
	 	 CITICORP NORTH AMERICA, INC.,

	 	 	 its attorney-in-fact

		
	 By:
	 	 /s/ Sumeet Wadhera

	 Name:
	 	SUMEET WADHERA
	 Title:
	 	Vice President

  
 Amendment No.
3 
 dated as of July 1, 2003 
 to Indenture 
 dated as of October 18, 2002 

	Commitments:	 	 	 	 
			
	(i) During the period from (and including) July 1, 2003 to (but excluding) the earlier of (A) September 30, 2003 or (B) such date requested by the Issuer and agreed to in
writing by the Agent, $500,000,000 and (ii) otherwise, $250,000,000.	 	 	 	 CITIBANK, N.A.,
 as Committed Lender with respect to CRC Funding,
 LLC

	 	 	 	 	 By:
	 	 /s/ Sumeet Wadhera

	 	 	 	 	 Name:
	 	SUMEET WADHERA
	 	 	 	 	 	 	 Title:
	 	Vice President
	 	 	 	 	 	 	 	 	 
	 $250,000,000
	 	 	 	 CITIBANK, NA.,
 as Committed Lender with respect to CAFCO, LLC

					
	 	 	 	 	 	 	 By:
	 	 /s/ Sumeet Wadhera

	 	 	 	 	 	 	 Name:
	 	SUMEET WADHERA
	 	 	 	 	 	 	 Title:
	 	Vice President

  
 Amendment No. 3

 dated as of July 1, 2003 
 to Indenture 
 dated as of October 18, 2002 

	 	 	 	 	 CITICORP NORTH AMERICA, INC.,
 as Agent

				
	 	 	 	 	 By:
	 	 /s/ Sumeet Wadhera

	 	 	 	 	 Name:
	 	SUMEET WADHERA
	 	 	 	 	 	 	 Title:
	 	Vice President
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 FIFTH THIRD BANK,
 as Indenture Trustee and as Eligible Lender Trustee

					
	 	 	 	 	 	 	 By:
	 	 /s/ Christine M. Schaub

	 	 	 	 	 	 	 Name:
	 	 CHRISTINE M. SCHAUB

	 	 	 	 	 	 	 Title:
	 	 Vice President

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 Acknowledged and Agreed to
 as of the date first written above:
	 	 	 	 	 	 
				
	 CITIBANK. N.A.,
 as Letter of Credit Provider
	 	 	 	 	 	 
					
	 By:
	 	 /s/ Sumeet Wadhera

	 	 	 	 	 	 
	 Name:
	 	SUMEET WADHERA	 	 	 	 	 	 
	 Title:
	 	Vice President	 	 	 	 	 	 

  
 Amendment No. 3

 dated as of July 1, 2003 
 to Indenture 
 dated as of October 18, 2002<PAGE>
                                                               Exhibit 10.01

June 24, 2003

PERSONAL & CONFIDENTIAL
-----------------------

Mr. Thomas J. Friel
983 Baileyana Road
Hillsborough, CA  94010

Dear Tom:

On behalf of Heidrick & Struggles International, Inc., I am pleased to confirm
the terms of your new employment arrangement.

Title and Duties. You will serve as Chief Executive Officer of Heidrick &
Struggles International, Inc. (the "Company"), effective as of June 24, 2003
(the "Effective Date"), reporting to the Board of Directors of the Company. You
will also have the role of Chairman of the Board of Directors of the Company.

Base Salary. Your base salary will be $600,000 annually, subject to review by
the Board of Directors at no more than 24 month intervals.

Target Bonus. Your bonus target for 2003 is 100% of base salary (in accordance
with Tier I of the Management Incentive Plan) to be paid when bonuses are paid
to executive officers in March of 2004. For 2003, your bonus will be guaranteed
at target level on a pro rata basis for the period of time following the
Effective Date. Additionally, your 2004 bonus will be guaranteed at target level
on a pro rata basis for the period from January 1, 2004 through the first
anniversary of the Effective Date. The bonuses (other than the 2003/2004
guaranteed amounts) are discretionary and are not earned until approved by the
Compensation Committee and/or the Board of Directors of the Company. The annual
bonus (other than the 2003/2004 guaranteed amounts) will be payable only if you
are in the Company's employ on the regular bonus payment date.

Incentive Compensation and Other Plans. You will be eligible to participate in
the incentive and other executive compensation plans applicable from time to
time for executive officers, including at present, without limitation, the
performance share plan, the annual bonus plan (described above) and the
management stock option plan, copies of which have been provided to you. With
respect to the performance share plan, you will participate on a pro rata basis
in Cycle II (covering 2003 through 2005). You shall also be eligible to
participate in the Change In Control Severance Plan in Tier One. In addition,
you will be covered by the Company's Severance Plan in the tier for Top
Management; provided (i) the terms "Cause" and "Good Reason" shall have the
meanings defined below and any resignation by you for Good Reason shall be
deemed a termination by the Company without Cause under the Severance Plan and
(ii) any reduction in your base salary or bonus opportunity that constitutes
Good Reason shall be disregarded in determining the severance payment due to
you.

Sign-On Arrangements.

     Options. On the Effective Date, you will receive a stock option grant to
     purchase 100,000 shares of Heidrick & Struggles International, Inc. common
     stock. The options will be granted

<PAGE>

Mr. Thomas J. Friel
June 24, 2003
Page 2

     at the closing price of the common stock as reported on NASDAQ on the date
     of grant, will vest 33.3% per year over a three year period, and will have
     a five year term.

     Restricted Stock Units. On the Effective Date, you will receive a grant of
     50,000 restricted stock units ("RSUs"). The RSUs will vest 33.3% per year
     over a three year period.

Benefits. You will be eligible to participate in the Company's benefit programs
at the same level as the other senior executives of the Company. The Company's
benefit programs include group health and life/AD&D insurance, long-term
disability, short-term disability salary continuation, time-off benefits
(vacation, paid holidays, paid sick time), the Flexible Spending Account and the
Heidrick & Struggles, Inc. 401(k) Profit-Sharing and Retirement Plan. The
Company's benefit programs, bonus programs and policies are reviewed from time
to time by Company management and may be modified, amended, or terminated at any
time.

Expenses. The Company's Physical Examinations Policy will continue to apply to
you. The Financial Planning Program for Senior Partners will also continue to
apply to you. The Company will reimburse you for all of your reasonably incurred
business expenses in accordance with its policies, including first class air
travel and reimbursement of travel expenses by your spouse when appropriate for
business purposes or, when appropriate, as an alternative to having you travel.

Confidentiality. Your employment with the Company under this Agreement
necessarily involves your access to and understanding of certain trade secrets
and confidential information pertaining to the business of the Company and its
affiliates. During the term of your employment with the Company and thereafter,
you will not, directly or indirectly, without the prior written consent of the
Company, disclose or use for the benefit of any person, corporation or other
entity, or for yourself any and all files, trade secrets or other confidential
information concerning the internal affairs of the Company and its affiliates,
including, but not limited to, information pertaining to its clients, services,
products, earnings, finances, operations, methods or other activities; provided,
however, that the foregoing shall not apply to information which is of public
record or is generally known, disclosed or available to the general public or
the industry generally (other than as a result of your breach of this covenant).
Notwithstanding the foregoing, you may disclose such information as is required
by law during any legal proceeding or to your personal representatives and
professional advisers and, with respect to such personal representatives and
professional advisers, you shall inform them of your obligations hereunder and
take all reasonable steps to ensure that such professional advisers do not
disclose the existence or substance thereof. Further, you shall not, directly or
indirectly, remove or retain, and upon termination of employment for any reason
you shall return to the Company, any records, computer disks, computer
printouts, business plans or any copies or reproductions thereof, or any
information or instruments derived therefrom, arising out of or relating to the
business of the Company and its affiliates or obtained as a result of your
employment by the Company.

Non-Solicitation/Non-Competition. During the term of your employment with the
Company and for a period of six-months after the termination of your employment
with the Company, you shall not (i) become an employee of, consultant to, or
otherwise provide services to, any principal competitor of the Company and its
affiliates, (ii) directly or indirectly solicit or hire, or assist any other
person in

<PAGE>

Mr. Thomas J. Friel
June 24, 2003
Page 3

soliciting or hiring, any employee of the Company or its affiliates (as of your
termination of employment with the Company) or any person who, as of such date,
was in the process of being recruited by the Company or its affiliates, or
induce any such employee to terminate his or her employment with the Company or
its affiliates, (iii) work on the account of any client of the Company or any of
its affiliates with whom you have had a direct relationship or supervisory
responsibility in the 24 months preceding such termination, or (iv) hire,
solicit for hire, or assist any other person in soliciting or hiring any
employment candidate with whom you had contact during the 24 months preceding
such termination.

Definitions.

The term "Good  Reason"  shall mean (i) a diminution  of the amount of your base
salary or target bonus or benefits or level of eligibility  for stock options or
other incentive  programs unless such diminution is consistent with other senior
executives  of the  Company,  or (ii)  the  elimination  of your  position  or a
diminution of  responsibilities  associated with your position.  Notwithstanding
the  foregoing,  an action by the  Company  which is cured  within 30 days after
receipt of written notice of such occurrence shall not constitute Good Reason.

The term "Cause" shall mean (a) fraud, or the  embezzlement or  misappropriation
of funds or  property of the Company or any of its  affiliates  by you,  (b) the
conviction of, or the entrance of a plea of guilty or nolo contendere by you, to
a felony or a crime  involving  moral  turpitude;  (c)  neglect,  misconduct  or
willful  malfeasance which is materially  injurious to the Company or any of its
affiliates;  or (d)  willful  failure or refusal to perform  your  duties,  or a
willful, material breach of contract.

Other Legal Matters.

You will be an "employee at will" unless or until you and the Company otherwise
agree in writing. The purpose of this arrangement is to permit either of us to
terminate employment and compensation at any time with or without Cause or Good
Reason, except for such period of notice as may be expressly provided in writing
under written Company employment policies in effect at the time of such
termination. Your initial and continuing employment will be subject to your
having the ability to work legally in the United States.

You have advised the Company that your execution and performance of the terms of
this Agreement do not and will not violate any other agreement binding on you or
the rights of any third parties and you understand that in the event this advice
is not accurate the Company will not have any obligation to you under this
Agreement.

This letter agreement contains our entire understanding and can be amended only
in writing and signed by you and the General Counsel or Chief Human Resources
Officer. This letter supercedes all prior arrangements or agreements pertaining
to your employment with the Company. You specifically acknowledge that no
promises or commitments have been made to you that are not set forth in this
letter.

<PAGE>

Mr. Thomas J. Friel
June 24, 2003
Page 4

Any controversy or claim arising out of or relating to this agreement or for the
breach thereof, or your employment, including without limitation any statutory
claims (for example, claims for discrimination including but not limited to
discrimination based on race, sex, sexual orientation, religion, national
origin, age, marital status, handicap or disability; and claims relating to
leaves of absence mandated by state or federal law), breach of any contract or
covenant (express or implied), tort claims, violation of public policy or any
other alleged violation of statutory, contractual or common law rights (and
including claims against the Company's officers, directors, employees or agents)
if not otherwise settled between the parties, shall be conclusively settled by
arbitration to be held in Chicago, Illinois, in accordance with the American
Arbitration Association's Employment Dispute Resolution Rules (the "Rules").
Arbitration shall be the parties' exclusive remedy for any such controversies,
claims or breaches. The parties agree they shall not seek any award for punitive
damages for any claims they may have under this Agreement. The parties also
consent to personal jurisdiction in Chicago, Illinois with respect to such
arbitration. The award resulting from such arbitration shall be final and
binding upon both parties. Judgment upon said award may be entered in any court
having jurisdiction. This Agreement will be governed by the laws of the State of
Illinois, without regards to the conflict of laws provisions of any
jurisdiction.

You and the Company hereby waive the right to pursue any claims, including but
not limited to employment termination - related claims, through civil litigation
outside the arbitration procedures of this provision, unless otherwise required
by law. You and the Company each have the right to be represented by counsel
with respect to arbitration of any dispute pursuant to this paragraph. The
arbitrator shall be selected by agreement between the parties, but if they do
not agree on the selection of an arbitrator within 30 days after the date of the
request for arbitration, the arbitrator shall be selected pursuant to the Rules.

In the event of any arbitration hereunder, the parties agree each shall bear its
or his own attorneys' fees and costs associated with or arising from such
arbitration or other proceeding.

                                        Yours sincerely,

                                        /s/  Fritz E. Freidinger
                                        ----------------------------------------
                                        Fritz E. Freidinger
                                        General Counsel and Corporate Secretary

I hereby accept the terms and conditions of employment as outlined above:

/s/ Thomas J. Friel                                            08/12/2003
--------------------------------------                         -----------------
Thomas J. Friel                                                Date

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