Document:

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                                                                    CONFIDENTIAL

CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE
OMITTED PORTIONS.

                                  AMENDMENT ONE

                                     TO THE

                 OEM SOFTWARE LICENSE AND DISTRIBUTION AGREEMENT

         This Amendment One ("Amendment One") to the OEM Software License and
Distribution Agreement between Commerce One, a California corporation ("Commerce
One"), with principal offices at 1600 Riviera Ave, Walnut Creek, California,
94596 and PeopleSoft, Inc., a Delaware corporation ("PeopleSoft"), with
principal offices at 4460 Hacienda Drive, Pleasanton, California 94588-8615
dated as of June 5, 1999 (the "Agreement"), is effective as of January 22, 2000
(the "Amendment Effective Date").

Now therefore the parties hereby agree as follows:

Capitalized terms defined in the Agreement shall have the same meaning in this
Amendment One as in the Agreement.

         1. AS OF THE AMENDMENT EFFECTIVE DATE, THE FOLLOWING PROVISIONS ARE
HEREBY AMENDED, MODIFIED OR ADDED TO SECTION 2 AS FOLLOWS:

                  2.6      "Distribute" or "Distribution" means selling,
                           sublicensing, transmitting, marketing, or otherwise
                           distributing the Products, PeopleSoft.Net, Branded
                           MarketSite, MarketSite Auction Services, Enterprise
                           Portal Service or the MarketSite Services.

                  2.8      "End User" shall include, in addition to any third
                           party licensed to use, but not to further Distribute,
                           the BuySite Products and/or the PeopleSoft Products,
                           an end user customer who accesses the MarketSite
                           Software for the electronic procurement of products
                           and/or services from one or more Suppliers for use in
                           the day-to-day operation of such end user's business.
                           "Auction Site End Users" means all end users of the
                           Auction Site, including without limitation, bidders
                           and sellers.

                  2.13     "MarketSite Services" means the MarketSite Direct and
                           MarketSite Indirect Services and shall include
                           PeopleSoft.Net operated using the MarketSite
                           Software.

                  2.14     "MRO Portal" means a multisupplier and multiproduct
                           line merchant portal designed primarily to facilitate
                           trading for operating resources (goods or services
                           which are used to operate a business, excluding goods
                           or services which are primarily used to directly
                           contribute to products, services or other

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                           revenue generating activities which a business
                           provides to its customers or uses to support its
                           internal administrative operations). Operating
                           resources shall include, but not be limited to,
                           industrial parts and supplies, computer equipment and
                           peripherals, goods and services required to maintain
                           plant, property and equipment. Without limiting the
                           foregoing, such multisupplier and multiproduct line
                           merchant portal shall not include any and all portals
                           which are not: (1) multisupplier; (2) multiproduct
                           line; (3) do not offer both (a) goods; and (b)
                           services for the purposes set forth above; or (4)
                           directed to government markets.

                  2.17     "PeopleSoft Product" shall mean PeopleSoft's
                           software product, as described in Attachment F as
                           amended.

                  2.20    "Specified Companies" means the list of entities set
                          out on Attachment H, as amended.

                  2.23    "Enterprise BuySite" means the license granted to
                          PeopleSoft by Commerce One in Section 3.1 (l).

                  2.24    "First Commercial Shipment" or "FCS" of a product or
                          service shall mean the first commercial release of
                          the PeopleSoft Product to third party customers. For
                          the avoidance of doubt, First Commercial Shipment, or
                          FCS, shall not include trial, "Beta," or similar
                          shipments that are not commonly considered commercial
                          release on a general basis to third party customers.

                  2.25    "Hosted BuySite" shall mean offering the BuySite
                          Products in Object Code only in a hosted manner for
                          use by End Users.

                  2.26    "MarketSite Software" means the computer software
                          programs licensed in Section 3.1 (h) and 3.1(m).

                  2.27    "PeopleSoft.Net " means any electronic commerce
                          service operated by PeopleSoft that includes as a
                          component the MarketSite Software provided by
                          agreement to third parties but hosted by PeopleSoft
                          or Commerce One.

                  2.28    "Branded MarketSite Service" shall mean the service
                          offered by PeopleSoft to End Users via the MarketSite
                          Software operated by PeopleSoft but which is
                          separately branded with a third party's identifying
                          marks. Commerce One currently anticipates changing
                          the name of Branded MarketSite service to `Commerce
                          Portal'.

                  2.29    "Transaction Revenues" shall mean all revenues
                          received by PeopleSoft which have been derived
                          directly from transactions performed by End Users
                          using the MarketSite Software.

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                   2.30   "Blended Transaction Rate" shall mean the average
                          transaction fee for each transaction type during the
                          same period, for transactions performed using the
                          MarketSite Software or the MarketSite Auction
                          Software. The Blended Transaction Rate shall be
                          calculated quarterly based on contracts entered into
                          by both parties in the prior quarter and shall be
                          subject to adjustment by mutual agreement of the
                          parties. In the event that the parties are unable to
                          agree on an adjustment to the Blended Transaction
                          Rate, the prior quarter's Blended Rate shall govern
                          until such time as the parties are able to resolve
                          their dispute.

                   2.31   "Blended License Fee" shall mean the average of
                          Commerce One Net Fees and PeopleSoft Net Fees (during
                          the same period), for the BuySite Products and
                          PeopleSoft Products, respectively. The Blended
                          License Fee shall be calculated on a quarterly basis
                          and shall compare license fees for substantially
                          equivalent license grants, including comparisons of
                          number of seats licensed, to the extent applicable.

                  2.32    "Documentation" means any on-line help files or
                          written instruction manuals regarding the use of the
                          MarketSite Software and MarketSite Auction Software.

                  2.33    "Supplier" means an entity that provides or offers to
                          provide products and/or services to End Users.

                  2.      As of the Amendment Effective Date, the following
                  provisions of Article 3 shall be amended as follows and all of
                  the amendments in this Section 3 shall be subject to the terms
                  and conditions of this Agreement, as amended.:

                  (a) Section 3.1(f) shall be deleted in its entirety and
         replaced with the words "intentionally omitted."

                  (b) Section 3.1(h) is hereby deleted in its entirety and shall
         be replaced with the following:

                  3.1(h)(i) COMMERCE ONE MARKETSITE LICENSE. (i) Commerce One
                  hereby grants to PeopleSoft, a non-exclusive,
                  non-transferable, worldwide right and license to use the
                  MarketSite Software, including any and all localizations and
                  translations thereto which Commerce One owns or has a right to
                  license and PeopleSoft shall reimburse any license fees
                  associated with such localizations or translations owed by
                  Commerce One to any unrelated third parties as a result of
                  PeopleSoft's use, to: (a) install the MarketSite Software on
                  computer hardware servers owned or operated by PeopleSoft or a
                  related entity (each such physical location (which may include
                  one or more adjacent buildings) an "Installation"); (b)
                  provide an unlimited number of End Users and Suppliers with
                  remote access to the MarketSite Software via such servers; and
                  (c) use the Documentation in connection with such use of the
                  MarketSite Software. The scope of the MarketSite Software
                  license grant in this Section 3.1(h) shall include the

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                  right to integrate independently developed business services
                  in the MarketSite Software using Commerce One XML Commerce
                  Connectors licensed to PeopleSoft as part of the MarketSite
                  Software license. This license transfers to PeopleSoft neither
                  title nor any proprietary or intellectual property rights to
                  the MarketSite Software, Documentation, or any copyrights,
                  patents, or trademarks, embodied or used in connection
                  therewith, except for the rights expressly granted herein.
                  PeopleSoft shall have the right to an unlimited number of
                  Installations, provided that no Installations outside the
                  United States (the "International Installations") shall be
                  installed prior to January 1, 2001. and provided further that
                  none of the International Installations shall be located in
                  any Territory which is set forth in EXHIBIT B of Amendment One
                  ("Territory") until the later to occur of January 1, 2001 or
                  the expiry of such Global Trading Web Partner's exclusivity in
                  such Territory. Notwithstanding the foregoing, such
                  International Installations may be located in the United
                  Kingdom beginning any time after August 1, 2000. For all
                  International Installations installed by PeopleSoft in excess
                  of two (2) International Installations, PeopleSoft shall be
                  required to pay to Commerce One a licensing fee as set forth
                  in Section 12.2 of Attachment B.

                  3.1(h)(iii) Commerce One shall issue to PeopleSoft, as soon as
                  practicable, one (1) machine-readable copy of the MarketSite
                  Software and MarketSite Auction Software, along with one (1)
                  copy of the on-line Documentation. Commerce One will provide
                  PeopleSoft with written copies of the Documentation at
                  Commerce One's standard charges. PeopleSoft may copy the
                  Documentation.

                  3.1(h)(iv) PeopleSoft will be entitled to make a reasonable
                  number of machine-readable copies of the MarketSite Software
                  and MarketSite Auction Software for backup or archival
                  purposes and for the Installations as permitted by Section 3.1
                  above. PeopleSoft shall maintain accurate and up-to-date
                  records of the number and location of all copies of the
                  MarketSite Software and inform Commerce One in writing of such
                  location(s). All copies of the MarketSite Software will be
                  subject to all terms and conditions of this Agreement.
                  Whenever PeopleSoft is permitted to copy or reproduce all or
                  any part of the MarketSite Software, all titles, trademark
                  symbols, copyright symbols and legends, and other proprietary
                  markings must be reproduced.

                  3.1(h)(v) The parties shall have good faith discussions
                  regarding reasonable End User license language for the
                  protection of both Commerce One and PeopleSoft. Commerce One
                  hereby grants PeopleSoft a nontransferable, nonexclusive,
                  worldwide right and license under Commerce One's Trademarks as
                  defined in Section 10 of the Agreement, as amended, and set
                  forth in Attachment C of the Agreement to display the Commerce
                  One icon in connection with the provision and promotion of the
                  MarketSite Service.

                  2.       Section 3.1(i) shall be added as follows:

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                  3.1(i) BRANDED MARKETSITE DISTRIBUTION LICENSE. Commerce One
                  hereby grants and PeopleSoft hereby accepts, a non-exclusive,
                  nontransferable, worldwide right and license to Distribute the
                  Branded MarketSite Service to or for use by End Users.

                  Section 3.1(j) shall be added as follows:

                  3.1(j) COMMERCE ONE MARKETSITE AUCTION SERVICES LICENSE.
                  Commerce One grants to PeopleSoft during the term of this
                  Agreement, a non-exclusive, non-transferable, worldwide right
                  and license to use the MarketSite Auction Software, including
                  any and all localizations and translations thereto which
                  Commerce One owns or has a right to license and PeopleSoft
                  shall reimburse any license fees associated with such
                  localizations or translations owed by Commerce One to any
                  unrelated third parties as a result of PeopleSoft's use, for
                  use in conjunction with the MarketSite Software for the
                  purpose of providing Auction Services and to Distribute
                  directly or by sublicense the MarketSite Auction Service.
                  Within sixty (60) days of the FCS of the MarketSite Auction
                  Software, Commerce One shall deliver the MarketSite Auction
                  Software to PeopleSoft. As of the Amendment Effective Date and
                  until the delivery of the MarketSite Auction Software to
                  PeopleSoft, Commerce One shall host the Auction Sites on
                  servers owned or controlled by Commerce One, for PeopleSoft's
                  use and Distribution. As soon as technically and commercially
                  practical after the delivery of the MarketSite Auction
                  Software to PeopleSoft, PeopleSoft shall assume control of
                  hosting the Auction Sites on servers owned or controlled by
                  PeopleSoft or its related entities. The MarketSite Auction
                  Software shall contain an Administrative Module for the
                  Auction Site through which PeopleSoft can control the Auction
                  Services parameters. PeopleSoft will determine the look and
                  feel of the User Interfaces for the Auction Sites. PeopleSoft
                  shall be responsible to utilize the Administrative Module to
                  program all HTML code to create and/or customize the User
                  Interface. Commerce One will use commercially reasonable
                  efforts to assist PeopleSoft in developing the User Interface
                  for the Auction Site. As used in this section, the following
                  definitions shall apply:

                  "Auction Services" mean services using the MarketSite Auction
                  Software where bidders set the ultimate sales price of the
                  goods or services offered for sale on the Auction Sites,
                  including without limitation, auctions of all types (e.g.,
                  traditional, Dutch, English, reverse, quick-win).

                  "Auction Site" means the web site operated by Commerce One or
                  PeopleSoft and created by Commerce One on behalf of PeopleSoft
                  pursuant to this Agreement where, among other things,
                  AuctionSite End Users can buy and sell items through Auction
                  Services.

                  "MarketSite Auction Software" means the computer software
                  programs, to be developed by Commerce One.

                  "User Interface" means the area where the overall site
                  navigation, banner advertising and look and feel associated
                  with each Auction Site is displayed.

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                  Section 3.1(k) shall be added as follows:

                  3.1(k) ENTERPRISE PORTAL DISTRIBUTION LICENSE. Commerce One
                  hereby grants and PeopleSoft hereby accepts, a non-exclusive,
                  nontransferable, worldwide right and license to Distribute the
                  Enterprise Portal Service (as defined below) to or for use by
                  End Users. Enterprise Portal Service shall be defined as a
                  Branded MarketSite Service which is restricted by the terms of
                  the associated license to permit only the licensee's own
                  direct or indirect procurement of goods and services through
                  PeopleSoft.Net or any other MarketSite Service.

                  Section 3.1(l) shall be added as follows:

                  3.1(l) ENTERPRISE BUYSITE LICENSE. Commerce One hereby grants,
                  and PeopleSoft hereby accepts, a non-exclusive,
                  non-transferable, world-wide license to operate BuySite
                  Products internally in Object Code format for PeopleSoft's own
                  direct or indirect procurement of goods and services through
                  PeopleSoft.Net or any other MarketSite Service.

                  Section 3.1(m) shall be added as follows:

                  3.1(m) The licenses granted in Subsections 3.1(g) to 3.1(l)
                  above shall include the most current version of the MarketSite
                  Software, MarketSite Auction Software or software related to
                  MarketSite Software. Modifications, enhancements or versions
                  (which contain substantially equivalent functionality) shall
                  be offered to PeopleSoft on terms comparable to those offered
                  to third parties, when such modifications, enhancements or
                  versions are offered to two or more third parties for license
                  or use. In addition, Commerce One shall provide all updates
                  and upgrades made available to Commerce One customers under
                  Support and Maintenance agreements to PeopleSoft. The parties
                  shall enter into a MarketSite Software Source Code Escrow
                  Agreement and a MarketSite Auction Software Escrow Agreement
                  (which MarketSite Auction Software source code will not be
                  required to be deposited until within thirty (30) days after
                  FCS) within thirty (30) days of the Amendment Effective Date.
                  If the parties are unable to agree on terms and conditions of
                  such Source Code Escrow Agreement, the parties will agree to
                  be bound by Commerce One's outside escrow agent's standard
                  terms and conditions. At a minimum, MarketSite Software and/or
                  MarketSite Auction Software Source Code release shall be
                  triggered upon bankruptcy or failure to support and maintain
                  the MarketSite Software and/or MarketSite Auction Software.

         4. AS OF THE AMENDMENT EFFECTIVE DATE, THE FOLLOWING PROVISIONS OF
ARTICLE 4 SHALL BE AMENDED AS FOLLOWS:

         Section 4.1 shall be replaced in its entirety with the following:

                  4.1  PEOPLESOFT.NET ACCESS DISTRIBUTION LICENSE. Subject to
                       the terms and conditions of this Agreement, as amended,
                       and commencing with the First Commercial

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                       Shipment of PeopleSoft.Net, PeopleSoft hereby grants to
                       Commerce One and Commerce One accepts a non-exclusive
                       nontransferable, worldwide right and license to
                       Distribute access to PeopleSoft.Net.

         5. AS OF THE AMENDMENT EFFECTIVE DATE, THE FOLLOWING PROVISIONS OF
ARTICLE 5 SHALL BE AMENDED AS FOLLOWS:

                  Section 5.1.

                  (a)      All references in this Section to January 1, 2001
                           shall be replaced with the words "one (1) year from
                           the First Commercial Shipment of the PeopleSoft
                           Product."

                  (b)      Section 5.1(a) shall cease to be of further force and
                           effect.

                  (c)      Add the words "other than the Branded MarketSite
                           Service and Auction Service or as otherwise necessary
                           for PeopleSoft to exercise its rights hereunder."
                           immediately after the words "shall use the MarketSite
                           Services as its exclusive MRO Portals and PeopleSoft
                           shall not Distribute or develop any other hosted MRO
                           Portals" in lines 4 and 5. In addition, add the words
                           " Notwithstanding the foregoing, PeopleSoft has the
                           right to connect PeopleSoft.Net and any other
                           PeopleSoft portal to any other MRO Portal in order to
                           conduct business and can enter into any agreement to
                           reasonably facilitate connection to such other
                           portal." immediately after the words "during the
                           period of this exclusivity." in lines 6 and 7.

                  Section 5.2

                  (a)      Section 5.2 shall cease to be of further force and
                           effect.

                  Section 5.3

                  (a)      All references in this Section to January 1, 2001
                           shall be replaced with the words "one (1) year from
                           the First Commercial Shipment of the PeopleSoft
                           Product."

                  As of the Amendment Effective Date, Section 5.5 shall be
amended in its entirety as follows:

                  5.5(a) Commerce One agrees to promote the PeopleSoft
                  consulting services as a preferred implementor of Commerce One
                  Products in the PeopleSoft Named Accounts, as amended.
                  Commerce One agrees to include PeopleSoft, at no additional
                  fee, as a member of Commerce One's Preferred Global Consulting
                  Partner program. This program is currently referred to as the
                  Premier Alliance Partner program.

                  5.5(b) The parties agree to negotiate in good faith to make
                  the PeopleSoft Product the only procurement product that
                  Commerce One directly Distributes following the First
                  Commercial Release of the PeopleSoft Product and following
                  product due diligence

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                  by Commerce One of the features and functionality of
                  PeopleSoft Product and its applicability to Commerce One
                  End Users, which due diligence will not be unreasonably
                  delayed. If the parties do not enter into a definitive
                  agreement regarding the foregoing within ninety (90) days
                  after the commencement of negotiations, subject to
                  Section 18.13(c), neither party shall have any further
                  obligations under this Section 5.5(b).

6. AS OF THE AMENDMENT EFFECTIVE DATE, ARTICLE 7 SHALL BE AMENDED BY DESIGNATING
THE FIRST PARAGRAPH OF ARTICLE 7 AS SECTION "7.1" AND THE FOLLOWING NEW
PARAGRAPH IS ADDED AS SECTION 7.2:

                  7.2 PEOPLESOFT LOCKUP RELEASE AND INCLUSION IN REGISTERED
         OFFERING. Commerce One hereby releases PeopleSoft from, and shall
         obtain a release from Credit Suisse First Boston to release PeopleSoft
         from, the market stand-off provisions of Section 6.1 of that certain
         Share Purchase and Master Strategic Relationship Agreement, dated June
         5, 1999, by and between Commerce One and PeopleSoft and any "lock-up"
         agreement executed by PeopleSoft in connection with Commerce One's
         initial public offering. In the event that, prior to June 5, 2000,
         Commerce One files a registration statement with the Securities and
         Exchange Commission to register a public, underwritten public offering
         of its common stock for cash, Commerce One shall, at such time, use all
         reasonable efforts to obtain the approval of its registration rights
         holders and the underwriters of such offering to PeopleSoft's sale of
         up to fifteen percent of the secondary shares of Commerce One common
         stock offered as part of the offering. In the event such approvals are
         obtained, if required, PeopleSoft shall be permitted to participate in
         the offering to the extent described above, subject to the same general
         terms and conditions applicable to other selling stockholders
         participating in the offering (including, without limitation, terms and
         conditions relating to the right of the underwriters to cutback the
         number of shares of common stock to be sold by selling stockholders in
         the offering).

    7.  AS OF THE AMENDMENT EFFECTIVE DATE, ARTICLE 9 SHALL BE AMENDED BY ADDING
        THE FOLLOWING IN ITS ENTIRETY AS SECTION 9.7:

                  9.7 TARGET PEOPLESOFT.NET LAUNCH DATE. Commerce One and
         PeopleSoft shall establish a target date of sixty (60) days from the
         Amendment Effective Date for the launch of PeopleSoft.Net on the
         MarketSite Software platform (the "Target Date"). Each party shall use
         all reasonable efforts to achieve such date, including the allocation
         of technical and business resources and personnel. Notwithstanding the
         foregoing, Commerce One shall be obligated to contribute professional
         services equal to [*] dollars ([*]) in value (calculated
         using Commerce One's standard professional services rates) based on
         work performed consistent with the workplan described below and as
         otherwise reasonably requested by PeopleSoft. All additional
         professional services charges on the part of Commerce One shall be
         reimbursable at Commerce One's standard professional services rates.
         Commerce One agrees to staff such professional services with
         individuals with Commerce One implementation experience and Commerce
         One shall use reasonable efforts to ensure that the majority of such
         professional services individuals are Commerce One employees.
         PeopleSoft shall have the right to reasonably request that Commerce One
         remove

[*]= CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

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         and replace particular service professionals provided under this
         subsection. In the event the parties are unable to achieve the Target
         Date, the parties shall agree to complete the launch no later than
         one-hundred and twenty (120) days from the Amendment Effective Date,
         provided however, the foregoing dates are contingent upon the parties
         mutually agreeing to a workplan. For each day that the launch is
         delayed beyond one hundred twenty (120) days of the Amendment Effective
         Date and such delay is attributable to Commerce One, the duration of
         the effectiveness of Section 5.1 shall be reduced by a like number of
         days. If the parties do not agree upon a reasonable workplan within
         fourteen (14) days of the Amendment Effective Date, the foregoing dates
         are moved out by one full day for each full day in excess of fourteen
         (14) days that it takes to complete the workplan, subject to Section
         18.13(c).

                  8. As of the Amendment Effective Date, Article 10 shall be
         amended in its entirety by adding the following as Section 10.3:

                           10.3. COMMERCE ONE LOGO. PeopleSoft shall have the
                  right but not the obligation to place the Commerce One
                  Trademark or logo on the PeopleSoft Product.

                  9. As of the Amendment Effective Date, Section 11.1 shall be
         amended by designating the first paragraph of Section 11.1 as Section
         "11.1(a)" and the following new paragraph is added as Section 11.1(b):

                  (b) COMMERCE ONE PROPRIETARY RIGHTS. Title to and ownership of
                  all copies of the Enterprise BuySite, Hosted BuySite,
                  MarketSite Software, Branded MarketSite Service, Auction
                  Software and Auction Service and associated software whether
                  in machine-readable or printed form, and including, without
                  limitation, Derivative Works thereof provided by Commerce One
                  hereunder, compilations, or collective works thereof and all
                  related technical know-how and all intellectual property
                  rights therein (including without limitation rights in
                  patents, copyrights, and trade secrets applicable thereto),
                  are and shall remain the exclusive property of Commerce One
                  and its suppliers. PeopleSoft shall not take any action to
                  jeopardize, limit or interfere in any manner with Commerce
                  One's ownership of and rights with respect to the Enterprise
                  BuySite, Hosted BuySite, MarketSite Software, Branded
                  MarketSite Service, MarketSite Auction Software and Auction
                  Service. PeopleSoft shall have only those rights in or to the
                  Enterprise BuySite, Hosted BuySite, MarketSite Software,
                  Branded MarketSite Service, MarketSite Auction Software and
                  MarketSite Auction Service and associated software granted to
                  it pursuant to this Agreement. Notwithstanding the foregoing,
                  title to and ownership of (i) all software, documentation,
                  data and other intellectual property, and all rights therein
                  (including without limitation rights in patents, copyrights,
                  know-how and trade secrets applicable thereto) developed by
                  PeopleSoft or for PeopleSoft or licensed by PeopleSoft (other
                  than from Commerce One) are and shall remain the exclusive
                  property of PeopleSoft and its licensors and suppliers, as
                  applicable. In addition, and notwithstanding the foregoing,
                  PeopleSoft will own all rights in and to the PeopleSoft.Net
                  after removal of the MarketSite Software.

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         10. As of the Amendment Effective Date, Article 18 shall be amended by
         adding the following new paragraphs as Section 18.17 and 18.18
         respectively:

                  18.17 As of the Amendment Effective Date, the provisions of
                  sections 11.2, 13.1, 13.1, 13.3, 14.2, 14.3, 14.5, 15.1, and
                  17.1 shall apply MUTATIS MUTANDIS to Enterprise BuySite,
                  Hosted BuySite, MarketSite Software, Branded MarketSite
                  Service, MarketSite Auction Software and Auction Service.

                  18.18 As of the Amendment Effective Date, the provisions of
                  sections 14.1, 14.4, 14.5, and 17.1 shall apply MUTATIS
                  MUTANDIS to PeopleSoft.Net.

                             AMENDMENTS TO ATTACHMENT B

1.       AS OF THE AMENDMENT EFFECTIVE DATE, SECTION 6 IN ATTACHMENT B SHALL BE
         AMENDED AS FOLLOWS:

                  (c) Section 1 of Attachment B shall be amended in its entirety
as follows:

                  "PeopleSoft Net Fees" means the actual amount of license fees,
         royalties or other consideration received by PeopleSoft with respect to
         the BuySite Products or PeopleSoft Products, or with respect to the
         licensing, sublicensing, or other Distribution of the BuySite Products
         or the PeopleSoft Product. In each case set forth above, PeopleSoft Net
         Fees shall exclude sales, use and value-added taxes, third party
         software royalty payments (excluding royalties owed herein), imputed
         fees for bundled maintenance, and training and consulting services (not
         to exceed PeopleSoft's standard published prices for such services). In
         addition, barter, equity or other noncash consideration received shall
         be valued at fair market value; provided however, PeopleSoft's internal
         Use of the BuySite Product shall not be included in the calculation of
         PeopleSoft Net Fees.

                  "Commerce One Net Fees" means the actual amount of license
         fees, royalties or other consideration received by Commerce One with
         respect to the BuySite Products, or with respect to the licensing,
         sublicensing, or other Distribution of the BuySite Products. In each
         case set forth above, Commerce One Net Fees shall exclude sales, use
         and value-added taxes, third party software royalty payments (excluding
         royalties owed herein), imputed fees for bundled maintenance, and
         training and consulting services (not to exceed Commerce One's standard
         published prices for such services). In addition, barter, equity or
         other noncash consideration received shall be valued at fair market
         value.

                  (d) Section 6. ADVANCE ROYALTY. The second and third sentences
of Section 6 in Attachment B shall be amended in its entirety as follows:

                  6.1 Beginning on the Amendment Effective Date, PeopleSoft's
         right to credit against prepaid Product Royalties shall expire at the
         following rate: (a)$[*] upon the expiration of the first half of
         the calendar year of 2000 (b) an additional $[*] upon the
         expiration of the third calendar quarter of 2000, and (c) the remaining
         advance prepaid royalty at the end of the fourth calendar quarter of
         2000. PeopleSoft has paid total advance

[*]= CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

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         Product royalties of [*] dollars ([*]) and Commerce One
         acknowledges receipt of such payment. For greater clarity, royalties
         due and payable by PeopleSoft to Commerce One pursuant to Section 6.2
         shall be set-off against any prepaid royalties remaining. Only in the
         event that such royalties payable by PeopleSoft are less than the
         amounts set forth above during the corresponding period, then such
         prepaid royalties shall expire in accordance with the expiration
         schedule as set forth above.

                  6.2 The following payments shall be credited against the
         advanced royalty payment described in paragraph 6.1 above: PeopleSoft
         Net Fees from: BuySite Products, PeopleSoft Product, Branded
         MarketSite, the first year of the MarketSite license Maintenance Fee
         and royalties based on Transaction Revenues.

                  6.3 PeopleSoft and Commerce One shall use good faith efforts
         to work cooperatively to manage sales activities including, when
         requested by the other, providing reasonable sales support, on a time
         and materials basis, and coordinating sales activities.

         Subsections (b) and (c) of Section 6 in Attachment B shall be deleted
in their entirety and shall be of no further force or effect.

         2.       AS OF THE AMENDMENT EFFECTIVE DATE, SECTION 7 OF ATTACHMENT B
                  SHALL BE AMENDED IN ITS ENTIRETY AS FOLLOWS:

                  (a) "ROYALTIES FOR BUYSITE PRODUCTS. PeopleSoft shall pay
                  Commerce One a royalty of [*] percent ([*]) of all
                  PeopleSoft Net Fees received solely for the license or
                  sublicense of the BuySite Product beginning on the Effective
                  Date of this Amendment and continuing one year from the date
                  of PeopleSoft Product FCS. Commerce One shall pay PeopleSoft a
                  royalty of [*] percent ([*]) of all Commerce One Net Fees
                  received solely for the Distribution of the BuySite Product to
                  a PeopleSoft Named Account beginning on the Effective Date of
                  this Amendment and continuing one year from the date of
                  PeopleSoft Product FCS. Neither party shall be entitled to any
                  royalty on revenues received by the other from sharing in
                  Hosted BuySite subscription revenues generated by third party
                  licensees or any other subscription revenue from any other
                  products. In addition, Commerce One will not be entitled to a
                  share of any revenue received by PeopleSoft for providing
                  hosting services to licensees of Hosted BuySite.
                  Notwithstanding the foregoing, any Commerce One Net. Fees
                  received from a Grandfathered Reseller as a result of a
                  license into a PeopleSoft Named Account, as amended, shall not
                  be subject to such royalty split, and in such case, Commerce
                  One shall not owe a royalty to PeopleSoft in relation thereto.

                  (b) BRANDED MARKETSITE LICENSE ROYALTY. PeopleSoft shall pay
                  to Commerce One a royalty for each Branded MarketSite Services
                  license entered into by and between PeopleSoft and third party
                  licensees equal to the greater of [*] percent ([*]) of the
                  actual sales price for the Branded MarketSite Services license
                  or [*] percent ([*]) of the Average Sales Price (ASP) for
                  substantially equivalent Branded MarketSite

[*]= CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                          -11-

<PAGE>

                  Services licensed by either Commerce One or its Distributors
                  in the prior fiscal quarter. Notwithstanding the foregoing,
                  PeopleSoft shall have the right to request a report
                  summarizing the license fees paid to Commerce One and
                  Distributors by third party licensees of the Branded
                  MarketSite Services during the prior fiscal quarter. For
                  purposes of determining ASP, factors such as geography,
                  size of entity licensed and scope of other service offerings
                  shall be considered in evaluating similar transactions.

                  (c) MARKETSITE AUCTION SERVICES ROYALTY. PeopleSoft agrees to
                  pay a royalty to Commerce One during the term of the Agreement
                  equal to [*] percent ([*]) of all Blended Transaction
                  Revenues generated using the MarketSite Auction Services.

         3.       AS OF THE AMENDMENT EFFECTIVE DATE, SECTION 8 OF ATTACHMENT B
                  SHALL BE AMENDED IN ITS ENTIRETY AS FOLLOWS:

                  (a) ROYALTIES FOR PEOPLESOFT PRODUCTS. Subject to Section 14.2
                  of Attachment B, the royalties payable by PeopleSoft to
                  Commerce One for licensing or sublicensing the PeopleSoft
                  Products pursuant to Section 3 of the Agreement shall be equal
                  to only [*] percent ([*]) of all PeopleSoft Net Fees
                  beginning on the Effective Date of this Amendment and
                  continuing one year from the date of the PeopleSoft Product
                  FCS. For the avoidance of doubt, Commerce One shall not
                  receive any royalty on revenues received by PeopleSoft from
                  sharing in Hosted PeopleSoft Product subscription revenues
                  generated by third party licensees or any revenue received by
                  PeopleSoft for providing hosting services to licensees of the
                  PeopleSoft Product.

         2.       AS OF THE AMENDMENT EFFECTIVE DATE, SECTION 12 IN ATTACHMENT B
SHALL BE AMENDED BY ADDING THE FOLLOWING:

         PEOPLESOFT NET ACCESS FEE

                  Commerce One shall pay to PeopleSoft a royalty equal to [*]
         percent ([*]) of all consideration received by Commerce One for
         Distribution of access to PeopleSoft.Net

         MARKETSITE ROYALTIES: For purposes of clarity, where a royalty shall be
payable to Commerce One under Section 12 (d)-(f) below, the royalty shall be
determined by reference to only one of the following calculations and no single
transaction shall be subject to more than one royalty calculation.

                  (d) PeopleSoft shall pay to Commerce One [*] percent ([*])
         of all Transaction Revenues (calculated using the appropriate Blended
         Transaction Rate) received through operation of PeopleSoft.Net
         including all International Installations.

                  (e) PeopleSoft shall pay to Commerce One [*] percent ([*])
                  of all Transaction Revenues (calculated using the appropriate
                  Blended Transaction Rate) received from third party licensees
                  of the Branded MarketSite Service or the Enterprise Portal
                  Services.

[*]= CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                        -12-

<PAGE>

                  (f) For customers that connect to the MarketSite Services
                  through the PeopleSoft Product, Commerce One shall pay a
                  royalty to PeopleSoft of [*] percent ([*]) of all
                  Transaction Revenues (calculated using the appropriate Blended
                  Transaction Rate).

                  (g) The International Installation licensing fee shall be
                   calculated as follows: [*]percent ([*]) off of the mean
                   price charged by Commerce One for all similar installations
                   of MarketSite Software licensed by Commerce One in the prior
                   quarter. In the event there are no similar installations of
                   MarketSite Software licensed by Commerce One in the prior
                   quarter, the licensing fee shall be based on, at PeopleSoft's
                   sole option, either the mean price charged by Commerce One
                   for all installations of MarketSite Software licensed by
                   Commerce One in the prior quarter or a fee to be negotiated
                   in good faith by the parties.

         All other provisions of Section 12 shall cease to be of any further
force and effect.

         3. As of the Amendment Effective Date, Section 13 in Attachment B shall
be amended in its entirety to read as follows:

                  PeopleSoft shall pay to Commerce One for support and
         maintenance of the MarketSite Software an annual maintenance fee (the
         "Maintenance Fee"). The Maintenance Fee shall be [*]
         dollars ([*]) annually; provided, however, the parties
         agree to review the Maintenance Fee on an annual basis on or before the
         anniversary of the Amendment Effective Date. Notwithstanding the
         foregoing, in the event the parties do not agree on the Maintenance Fee
         prior to the anniversary of the Amendment Effective Date for any given
         year, the Maintenance Fee shall remain at [*] dollars ([*]) per
         annum. The Maintenance Fee shall be due annually within thirty (30)
         days of the anniversary of the Amendment Effective Date.
         PeopleSoft shall report the Maintenance Fee in the first quarterly
         royalty report, as required under this Agreement, of each
         year. Commerce One and PeopleSoft shall within thirty (30) days of the
         Amendment Effective Date execute a maintenance agreement with terms and
         conditions at least as favorable as those offered to others.

         4. As of the Amendment Effective Date, Section 14 in Attachment B shall
be amended by adding the following:

                  14.2 Minimum Royalties for BuySite Products and PeopleSoft
         Products. The minimum royalty payable to either Commerce One or
         PeopleSoft under Sections 7 and 8 of Attachment B shall be equal to
         [*] percent ([*]) of the Blended License Fee. The minimum royalty
         shall be subject to review and if necessary adjustment by mutual
         agreement of the parties. In the event that the parties are unable to
         agree that the [*] percent ([*]) of the Blended License Fee is the
         appropriate minimum royalty for any particular quarter, the prior
         quarter's minimum royalty shall govern until such time as the parties
         are able to resolve their dispute.

[*]= CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                          -13-

<PAGE>

         5. As of the Amendment Effective Date, the following shall be added to
the end of Attachment B as Section 17:

                  17 With respect to Blended Transaction Rate, Blended License
         Fee, or other similar provisions, the Parties recognize that the
         products and services included herein are typically Distributed in
         complex transactions involving multiple products, services and
         occasionally other consideration. In determining amounts attributable
         to equivalent products or services the Parties shall make fair and
         reasonable allocations of the fees received or to be received to all of
         the elements included in the transaction.

                           AMENDMENTS TO ATTACHMENT C

                  AS OF THE AMENDMENT EFFECTIVE DATE ATTACHMENT C SHALL BE
AMENDED BY ADDING THE FOLLOWING:

                  MARKETSITE AUCTION SERVICES

                           AMENDMENTS TO ATTACHMENT F

         AS OF THE AMENDMENT EFFECTIVE DATE, EXHIBIT F AMENDED IN ITS ENTIRETY
BY ADDING THE FOLLOWING:

         The PeopleSoft Product is what is currently known as PeopleSoft
         eProcurement in its current form or as subsequently modified, (and
         shall include subsequent versions thereof), which offers web-based
         procurement capabilities designated to enable companies to reduce their
         indirect goods purchasing costs while increasing their overall supply
         chain efficiency. Cost reductions are achieved through user-friendly
         application functionality designed to reduce off-contract, or "rogue,"
         purchases, automate manual processes, improve leverage with suppliers
         and provide links to a dynamic trading community.

         The PeopleSoft Product currently incorporates parts of the BuySite
         Product Source Code or Derivative Works thereof. Future versions of the
         PeopleSoft Product may also be developed without any such BuySite
         Product Source Code or Derivative Works thereof. PeopleSoft shall be
         entirely free to determine the features and functionality of the
         PeopleSoft Product using internal resources, contracted resources or
         through acquisition either in whole or in part.

         For the avoidance of doubt, PeopleSoft Product shall not include the
         PeopleSoft Purchasing product, or any versions, modifications, or
         updates thereof, provided such PeopleSoft Purchasing product is
         primarily targeted at purchasing professional and not directed at
         casual users and provided that PeopleSoft's eProcurement product is
         marketed as the preferred procurement/purchasing solution directed at
         casual users and non-purchasing professionals within an organization.
         For greater clarity, nothing in this definition of the PeopleSoft
         Product shall include any and all other PeopleSoft products developed
         by or on behalf of

                                       -14-

<PAGE>

         PeopleSoft including but not limited to PeopleSoft ERP products,
         analytic products and other products not explicitly defined above.

         The PeopleSoft Product, as it is currently known and as it may be
         further developed and enhanced, is distinct from the BuySite product,
         which is a Commerce One marketed and sold product and PeopleSoft shall
         not owe a royalty both under Sections 2(a) and 3(a) of Section 7, as
         amended, for the same product.

         5. As of the Amendment Effective Date, Attachment I of the Agreement
shall be deleted in its entirety and replaced by the words "Intentionally
Omitted."

         6. As of the Amendment Effective Date, Attachment G of the Agreement
shall be amended by deleting the list of PeopleSoft Named Accounts in its
entirety and replacing such list of PeopleSoft Named Accounts with the list set
forth in EXHIBIT A to this Amendment One. Commerce One accepts the list of
PeopleSoft Named Accounts set forth in EXHIBIT A to this Amendment One provided
that PeopleSoft shall, within thirty (30) days of the Amendment Effective Date,
provide further information to Commerce One detailing the scope of the license
grant contained in the accounts agreements with PeopleSoft and the names of the
entity entitled to such license within the thirty (30) PeopleSoft Named Accounts
set forth in EXHIBIT C and provided further that the scope of the licenses
granted and the names of the entity entitled to such license within the thirty
(30) PeopleSoft Named Accounts shall be used for the purposes of defining
PeopleSoft Named Accounts in Section 7(a) of Attachment B, as amended.

         7. Except as provided below PeopleSoft hereby acknowledges that no fees
or royalties or payments of any kind are due and payable from Commerce One to
PeopleSoft based on the license of BuySite and/or MarketSite to General Motors
and its affiliates (which shall be defined as any company in which General
Motors has a forty-nine percent (49%) interest) and to Banacci. Notwithstanding
the foregoing, both parties acknowledge and agree that any other distribution
made pursuant to this Agreement which were completed and effective on or before
the Amendment Effective Date shall be governed by the Agreement as it existed
prior to the execution of this Amendment One. Notwithstanding the foregoing, on
revenues received by Commerce One from Banacci for the Distribution of BuySite
into the PeopleSoft Named Accounts, Commerce One shall pay to PeopleSoft a [*]
percent ([*]) royalty on revenues received by Commerce One.

         8. As of the Amendment Effective Date, Attachment H of the Agreement
shall be amended by adding the names "MRO.com, Vertical.net, and Aspect
Development" to the end of the list of Commerce One Specified Companies and
adding the name "JD Edwards, Evolve, Icarian" to the end of the list of
PeopleSoft Specified Companies.

         9. Commerce One agrees to grant PeopleSoft a membership in the Global
Trade Web (GTW) and PeopleSoft agrees to become a member of the GTW, which seat
shall at a minimum be equivalent to that granted to any other counsel member,
and to abide by the revenue sharing and global cooperation policies of the GTW.
PeopleSoft shall have the right to withdraw from the GTW at any time.
Notwithstanding the foregoing, PeopleSoft agrees to use commercially reasonable
efforts work with the GTW members to establish technical and business
relationships.

[*]= CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.
                                       -15-

<PAGE>

         10. As of the Amendment Effective Date, Commerce One shall grant
PeopleSoft a seat on the Global Trading Web Counsel.

         11. In the event of any inconsistency or conflict between this
Amendment One and the Agreement, the terms, conditions and provisions of this
Amendment One shall govern and control.

         12. This Amendment One and the Agreement constitute the entire and
exclusive agreement between the parties with respect to this subject matter. All
previous discussions and agreements with respect to this subject matter are
superceded by the Agreement and Amendment One.

         IN WITNESS WHEREOF, the parties hereto have caused duly authorized
representatives to sign this Amendment One as of the Amendment Effective Date.

PEOPLESOFT                             COMMERCE ONE

By:_________________________           By:_______________________

Title:______________________           Title:____________________

Date:_______________________           Date:_____________________

                                       -16-

<PAGE>

EXHIBIT A

PEOPLESOFT NAMED ACCOUNTS

[See Attached Page]
[*]

[*]=  CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION.  CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

<PAGE>

EXHIBIT B

GLOBAL TRADING WEB PARTNERS
[*]

[*]=  CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION.  CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

<PAGE>

EXHIBIT C

SPECIFIC PEOPLESOFT NAMED ACCOUNTS
[*]

[*]=  CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION.  CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       -2-<PAGE>

                       THE AFFILIATED MANAGERS GROUP, INC.
                            DEFINED CONTRIBUTION PLAN

PREAMBLE

     This Plan shall be known as The Affiliated Managers Group, Inc. Defined
Contribution Plan (the "Plan"). The object of the Plan is to provide certain
select management employees of the Affiliated Managers Group, Inc. ("AMG")
with an ownership interest in AMG and certain investments managed by AMG's
affiliates and subsidiaries and to align the interests of those employees
with those of AMG's shareholders.

     The Plan is not intended to be qualified under Section 401(a) of the
Internal Revenue Code of 1986, as amended, and is not subject to the Employee
Retirement Income Security Act of 1974, as amended.

                                    ARTICLE I

                                   DEFINITIONS

     Section I.1 "Account" means one or more of a Participant's AMG Stock
Account, a Participant's Affiliate Investments Account or the Unallocated
Account, as the context requires.

     Section I.2 "Administrative Committee" means the committee of the Board
appointed by the Board to administer the Plan.

     Section I.3 "Affiliate Investment" means an equity investment by the Trust
in investment products managed or advised by an affiliate or subsidiary of AMG.

     Section I.4 "Affiliate Investments Account" means the separate account
established in the name of each Participant under Section 4.1 to hold cash (and
Affiliate Investments purchased with such cash) that has been allocated to such
Participant and any distribution received with respect to such cash or Affiliate
Investments.

     Section I.5 "AMG Stock Account" means the separate account established in
the name of each Participant under Section 4.1 to hold cash, shares of Stock and
any distributions received with respect to such Stock.

     Section I.6 "Beneficiary" means the person or persons (including a trust or
estate) who are entitled to receive any benefit payable hereunder by reason of
the death of a Participant, as designated pursuant to Section 9.1.

     Section I.7 "Board" means the Board of Directors of AMG.
<PAGE>

     Section I.8 "Cause" means any of the following: (a) the Participant's
conviction, whether following trial or by plea of guilty or nolo contendere (or
similar plea), in a criminal proceeding (i) on a misdemeanor charge involving
fraud, false statements or misleading omissions, wrongful taking, embezzlement,
bribery, forgery, counterfeiting or extortion, or (ii) on a felony charge or
(iii) on an equivalent charge to those in clauses (i) and (ii) in jurisdictions
which do not use those designations; (b) the Participant's willful or grossly
negligent failure to perform duties owed to AMG; (c) the Participant's willful
violation of any securities or commodities laws, any rules or regulations issued
pursuant to such laws, or the rules and regulations of any securities or
commodities exchange or association of which AMG or any of its subsidiaries or
affiliates is a member; or (d) the Participant's willful violation of any Firm
policy concerning hedging or confidential or proprietary information, or
material violation of any other Firm policy as in effect from time to time. The
determination as to whether "Cause" has occurred shall be made by the
Administrative Committee. In the event the Administrative Committee believes
that a Participant has engaged in of any of Causes (b) through (d) above, the
Administrative Committee shall give written notice to such Participant of such
Cause with sufficient particularity to permit the Participant to cure such Cause
within 30 days following such written notice. The Administrative Committee shall
also have the authority to waive the consequences under the Plan of the
existence or occurrence of any of the events, acts or omissions constituting
"Cause".

     Section I.9 "Change in Control" means the consummation of a merger,
consolidation, statutory share exchange or similar form of corporate transaction
involving AMG (a "Reorganization") or sale or other disposition of all or
substantially all of AMG's assets to an entity that is not an affiliate of AMG
(a "Sale"), that in each case requires the approval of AMG's stockholders under
the law of AMG's jurisdiction of organization, whether for such Reorganization
or Sale (or the issuance of securities of AMG in such Reorganization or Sale),
unless, immediately following such Reorganization or Sale, at least a majority
of the members of the board of directors (or similar officials in the case of an
entity other than a corporation) of the parent entity (or, if there is no parent
entity, the surviving entity) following the consummation of the Reorganization
or Sale were, at the time of the Board's approval of the execution of the
initial agreement providing for such Reorganization or Sale, individuals (the
"Incumbent Directors") who either (1) were members of the Board on the Effective
Date or (2) became directors subsequent to the Effective Date and whose election
or nomination for election was approved by a vote of at least two-thirds of the
Incumbent Directors then on the Board (either by a specific vote or by approval
of AMG's proxy statement in which such persons are named as a nominee for
director); but provided further that any such individual whose initial
assumption of office is in connection with an actual or threatened election
contest relating to the election of members of the Board or other actual or
threatened solicitation of proxies or consents by or on behalf of a person other
than the Board, including by reason of agreement intended to avoid or settle any
such actual or threatened contest or solicitation, shall not be considered an
Incumbent Director.

     Section I.10 "Code" means the Internal Revenue Code of 1986, as amended,
from time to time.
<PAGE>

     Section I.11 "Disability" means a disability as defined in any long-term
disability plan of AMG or, in the absence of such plan, the inability of the
Participant to perform the functions of his or her position with AMG for a
period of 150 consecutive business days or 200 business days in a period of 365
consecutive days as determined by a physician selected by the Administrative
Committee in its reasonable business judgment.

     Section I.12 "Effective Date" means December 31, 1999.

     Section I.13 "Employment" means a Participant's performance of services for
AMG, as determined by the Administrative Committee. The terms "employ" and
"employed" shall have their correlative meanings.

     Section I.14 "Fair Market Value" means, with respect to Plan Assets on any
day, for any security listed on nationally recognized securities exchange, the
closing asked price on the most recent day on which such security was traded or,
if not so listed, the fair market value as determined in accordance with a
valuation methodology approved by the Administrative Committee.

     Section I.15 "Initial Contribution" means the initial shares of Stock or
cash contributed to the Plan and Trust.

     Section I.16 "Investment Committee" means the committee appointed by the
Administrative Committee with the power to direct the Trustee as to investment
of Plan Assets other than the AMG Stock Accounts. The Investment Committee
currently is composed of Sean M. Healey, Darrell W. Crate and Nathaniel Dalton.

     Section I.17 "Participant" means an employee of AMG who is designated as a
Participant by the Administrative Committee pursuant to Article II.

     Section I.18 "Participant's Accounts" means a Participant's AMG Stock
Account and Affiliate Investment Account

     Section I.19 "Plan" means The Affiliated Managers Group, Inc. Executive
Retention Plan, as described herein and as hereafter amended from time to time.

     Section I.20 "Plan Assets" means cash, Stock or other assets contributed to
the Trust by AMG and any other assets or instruments into which such
contributions are converted pursuant to the Trust, without regard to whether
such Plan Assets are held in the Unallocated Account, an AMG Stock Account or an
Affiliate Investments Account.

     Section I.21 "Plan Year" means any calendar year or part thereof beginning
on the Effective Date.
<PAGE>

     Section I.22 "Stock" means shares of AMG's common stock, par value $0.01
per share.

     Section I.23 "Trust" means the legal entity created by the Trust Agreement.

     Section I.24 "Trust Agreement" means the agreement, dated as of the
Effective Date, by and between AMG and the Trustee, including any amendments
thereto, setting forth the rights and obligations of the parties thereto in
respect of the contributions to and distributions from the Trust, and the
establishment and administration of the Accounts pursuant to the Plan.

     Section I.25 "Trustee" means any corporation, individual or individuals who
shall accept the appointment as trustee to execute the duties of the trustee
pursuant to the Trust Agreement.

     Section I.26 "Unallocated Account" means a separate account established
under Section 4.1 to hold Plan Assets arising from AMG's contributions,
forfeitures or distributions in respect of such Plan Assets pending the
allocation and reallocation of such Plan Assets to the AMG Stock Accounts or
Affiliate Investment Accounts of Participants.

                                   ARTICLE II

                          ELIGIBILITY AND PARTICIPATION

     Each employee designated by the Administrative Committee shall become a
Participant in the Plan on the date he or she is so designated. A Participant
shall remain a Participant until the date he or she receives a distribution of
the entire vested portion of his or her Participant's Accounts or, if earlier,
the date such Participant's interest in his or her Participant's Accounts is
forfeited in accordance with Article V.

                                   ARTICLE III

                                  CONTRIBUTIONS

     On December 31. 1999, AMG shall establish the Trust and irrevocably
contribute the Initial Contribution to the Trust. AMG may contribute additional
shares of Stock or cash to the Trust from time to time at its sole discretion.
<PAGE>

                                   ARTICLE IV

                           ALLOCATION OF CONTRIBUTIONS

     Section IV.1 ESTABLISHMENT OF ACCOUNTS. There shall be established an AMG
Stock Account and an Affiliate Investment Account in the name of each
Participant and a separate account (the Unallocated Account) to which any
forfeitures occurring hereunder may be credited pending allocation to
Participants. The Accounts shall also hold any distributions with respect to the
Plan Assets held therein until such distributions are payable pursuant to the
Plan.

     Section IV.2 ALLOCATIONS TO PARTICIPANTS' ACCOUNTS. The Administrative
Committee shall in its sole discretion designate the total of any contributions
and forfeitures allocable to each Participant's Accounts each Plan Year. In the
absence of a designation by the Administrative Committee as to any Plan Year,
the allocation formula of the previous Plan Year shall be used as of the end of
such Plan Year, adjusted as follows: any allocation from such previous Plan Year
for Plan Participants whose accounts were forfeited pursuant to Section 5.5 or
who are no longer employees of AMG shall be allocated among the remaining
Participants such that the ratio of allocations relating to the previous Plan
Year among such remaining Participants is preserved. The allocation shall be
split evenly between the eligible Participant's AMG Stock Account and Affiliate
Investment Account unless the Administrative Committee shall decide otherwise
prior to any such allocation. Notwithstanding the foregoing, the allocation of
the Initial Contribution is set forth in Schedule A attached hereto.

     Section IV.3 INVESTMENT. The AMG Stock Account shall be invested solely in
shares of AMG Stock that shall be contributed by AMG or that the Trustee shall
purchase from AMG with any cash contribution made by AMG. The Affiliate
Investments Account shall be invested by the Trustee in such Affiliate
Investments as directed by the Investment Committee from cash contributions made
by AMG.

     Section IV.4 VOTING OF STOCK; TENDER OR EXCHANGE OFFERS. With respect to
the Plan Assets allocated to Participant's Accounts, each Participant shall be
entitled to instruct the Trustee, on a confidential basis (a) as to the manner
in which the Trustee's rights will be exercised with respect to any matter which
involves the voting or other similar rights attached to such Plan Assets, and
(b) in the event of a tender or exchange offer for all or substantially all of
the Stock of AMG, whether such Stock shall be tendered or exchanged by the
Trustee. Without limiting the foregoing, the Trust Agreement shall provide that
the Trustee shall have no discretion and shall be required to vote, tender or
exchange Plan Assets held by the Trust as follows: (i) Plan Assets allocated to
Participant's Accounts shall be voted, tendered or exchanged, as applicable, in
accordance with any instructions received from such Participant or such
Participant's authorized representative pursuant to a duly executed power of
attorney or similar instrument, (ii) Plan Assets held in Participant's Accounts
with respect to which the Trustee does not receive instructions shall not be
voted, tendered or exchanged, as applicable, and (iii) Plan Assets held in the
Unallocated Account shall be voted, tendered or exchanged, as applicable, in the
same proportion as the applicable Plan Assets allocated to Participant's
<PAGE>

Accounts with respect to which instructions are received by the Trustee are
voted, tendered or exchanged.

                                    ARTICLE V

                                     VESTING

     Section V.1 VESTING IN THE INITIAL CONTRIBUTION.

     (a) VESTING IN THE AMG STOCK ACCOUNT. A Participant's interest in his or
her AMG Stock Account attributable to the Initial Contribution shall vest and be
distributable as follows:

<TABLE>
<CAPTION>
                   VESTING DATE               ADDITIONAL VESTING    CUMULATIVE VESTING
                                              PERCENTAGE IN THE     PERCENTAGE IN THE
                                              AMG STOCK ACCOUNT     AMG STOCK ACCOUNT
       --------------------------------------------------------------------------------
       <S>                                   <C>                   <C>
                December 31, 2001                    25%                   25%
                December 31, 2002                    25%                   50%
                December 31, 2003                    25%                   75%
                December 31, 2004                    25%                   100%
       --------------------------------------------------------------------------------
</TABLE>

Subject to the determination of the Administrative Committee, vesting of Stock
in the AMG Stock Account shall be subject to rounding to avoid the vesting of
fractional shares of Stock.

     (b) VESTING IN THE AFFILIATE INVESTMENT ACCOUNT. A Participant's interest
in his or her Affiliate Investment Account attributable to the Initial
Contribution shall vest as follows:

<TABLE>
<CAPTION>
                   VESTING DATE               ADDITIONAL VESTING    CUMULATIVE VESTING
                                               IN THE AFFILIATE      IN THE AFFILIATE
                                              INVESTMENT ACCOUNT    INVESTMENT ACCOUNT
       --------------------------------------------------------------------------------
       <S>                                   <C>                   <C>
                December 31, 2003                    50%                   50%
                December 31, 2004                    50%                   100%
       --------------------------------------------------------------------------------
</TABLE>
<PAGE>

     Section V.2 VESTING IN CONTRIBUTIONS FOLLOWING THE INITIAL CONTRIBUTION.
The Administrative Committee, in its sole discretion, shall determine the
vesting schedule for the contributions and forfeitures attributable to each Plan
Year prior to any allocation to Participant's Accounts.

     Section V.3 VESTING OF FORFEITURES. Forfeitures allocated among
Participants pursuant to Section 5.5 shall vest according to Sections 5.1 and
5.2 above as appropriate, unless otherwise decided by the Administrative
Committee.

     Section V.4 SPECIAL RULE. Notwithstanding any other provision of this Plan,
provided that a Participant's Accounts have not previously been forfeited, such
Participant shall be 100% vested in his or her Participant's Accounts upon (i)
the death or Disability of such Participant, (ii) such Participant's termination
of Employment by AMG without Cause, (iii) the termination of the Plan or (iv) a
Change in Control.

     Section V.5 FORFEITURE. Unless the Administrative Committee determines
otherwise, and except under the circumstances specified in Section 5.4, SPECIAL
RULE, unvested Plan Assets in any Participant's Accounts shall be immediately
forfeited and such unvested Plan Assets shall not be distributable to such
Participant upon the termination of Employment of the Participant.

     In the event of such forfeiture, all unvested Plan Assets in any such
former Participant's Accounts shall be returned to the Unallocated Account,
added to any contributions for such Plan Year and allocated as of the end of the
Plan Year in accordance with the provisions of Section 4.2.

                                   ARTICLE VI

                                  DISTRIBUTIONS

     Section VI.1 GENERAL. Except as provided below and in Section 9.10, all
vested Plan Assets credited to any Participant's Accounts shall be promptly
distributed to such Participant (or, if applicable, his or her Beneficiary) and
shall be subject to the provisions of Sections 9.8 and 9.9. The distribution of
shares of Stock shall be in whole shares only with any remainder being paid in
cash; all other distributions shall be in cash.

     Section VI.2 EARNINGS. Any taxable income or capital gain in respect of
Plan Assets allocated to a Participant's Accounts on the record date for such
dividend or payment shall be distributed to such Participant as soon as
practicable following the end of the calendar quarter in which such dividend or
payment is received without regard to whether such Participant is vested in such
Plan Assets. No taxable income or capital gain in respect of Plan Assets shall
be allocated to the Unallocated Account. No interest shall be payable on any
dividends or other earnings allocated to a Participant's Accounts but not yet
distributed.
<PAGE>

                                   ARTICLE VII

                             ADMINISTRATION OF PLAN

      Section VII.1 PLAN ADMINISTRATOR. The Plan Administrator shall be the
Administrative Committee which shall have complete control over the
administration of the Plan and shall have the authority in its sole discretion
to (a) exercise all of the powers granted to it under this Plan, (b) construe,
interpret and implement the Plan, (c) prescribe, amend and rescind rules and
regulations relating to the Plan, including rules governing its own operations,
(d) make all determinations necessary or advisable in administering the Plan,
and (e) correct any defect, supply any omission and reconcile any inconsistency
in the Plan. Action by the Administrative Committee may be taken by the vote of
a majority of its members. Any action may be taken by a written instrument
signed by a majority of the members of the Administrative Committee and action
so taken shall be fully as effective as if it had been taken by a vote at a
meeting. The determinations of the Administrative Committee on all matters
relating to the Plan shall be final, binding and conclusive. The responsibility
of the Administrative Committee with respect to the management or control of the
assets of the Trust may be delegated or allocated to the Trustee and, for
investment direction to the Investment Committee.

     Section VII.2 INDEMNIFICATION. No member of the Administrative Committee or
the Investment Committee or any employee of AMG shall be liable for any action
or determination made in good faith with respect to the Plan. Each such person
shall be indemnified and held harmless by AMG against and from any loss, cost,
liability, or expense that may be imposed upon or incurred by such person in
connection with or resulting from any action, suit or proceeding to which such
person may be a party or in which such person may be involved by reason of any
action taken or failure to act under the Plan and against and from any and all
amounts paid by such person, with AMG's approval, in settlement thereof, or paid
by such person in satisfaction of any judgment in any such action, suit or
proceeding against such person, provided that AMG shall have the right, at its
own expense, to assume and defend the same. The foregoing right of
indemnification shall not be available to a person to the extent that a final
judgment or other final adjudication binding upon such person establishes that
the acts or omissions of such person giving rise to the indemnification claim
resulted from such person's bad faith, fraud or willful criminal act or
omission. The foregoing right of indemnification shall not be exclusive of any
other rights of indemnification to which such persons may be entitled under
AMG's Articles of Incorporation or Bylaws, as a matter of law, or otherwise, or
any other power that AMG may have to indemnify such persons or hold them
harmless.

     Section VII.3 COMMUNICATION BY ADMINISTRATIVE COMMITTEE OR INVESTMENT
COMMITTEE. Decisions and directions of the Administrative Committee or the
Investment Committee may
<PAGE>

be communicated to the other Committee, the Trustee, a Participant, a
Beneficiary, AMG or any other person who is to receive such decision or
direction by a document signed by any one or more members of the Administrative
Committee or Investment Committee (or persons other than members) so authorized,
and such decision or direction of the Administrative Committee or Investment
Committee may be relied upon by the recipient as being the decision of the
applicable Committee. The Administrative Committee or Investment Committee may
authorize one or more of its members, or a designee who is not a member, to sign
on behalf of the entire applicable Committee.

     Section VII.4 INVESTMENT COMMITTEE. The Investment Committee shall be the
Investment Fiduciary, as described in the Trust Agreement, and shall direct the
Trustee in respect of specific investments in the Affiliate Investment Accounts
in order that the holdings in such Affiliate Investment Accounts readily may
satisfy any requirement for payment of cash (a) to Participants upon vesting of
such Affiliate Investment Accounts and (b) to AMG for satisfaction of any
applicable withholding taxes in respect of such Affiliate Investment Accounts.

                                  ARTICLE VIII

                          AMENDMENT, TERMINATION, ETC.

     The Board reserves the right at any time and from time to time to modify,
alter, amend, suspend, discontinue and terminate the Plan or the Trust
Agreement; provided that, no such modification, alteration, amendment,
suspension, discontinuance or termination shall materially adversely affect,
without the consent of the individual affected Participant, the rights of any
Participant under this Plan with respect to contributions previously made,
except that the Board reserves to itself alone the right to (a) accelerate the
vesting of Participants' Accounts and (b) make distributions to Participants
upon the termination of the Plan. Notwithstanding the foregoing, no
modification, alteration, amendment or termination of the Plan may be made which
would cause or permit any part of the assets of the Trust to be used for, or
diverted to, purposes other than for the exclusive benefit of Participants or
their Beneficiaries, or which would cause any part of the assets of the Trust to
revert to or become the property of AMG. Any modification, alteration or
amendment to the Plan shall be in writing signed by the Chief Executive Officer
of AMG or his designee.

                                   ARTICLE IX

                                  MISCELLANEOUS

     Section IX.1 DESIGNATION OF BENEFICIARIES. A Participant may designate, in
accordance with procedures established by the Administrative Committee, a
Beneficiary or
<PAGE>

Beneficiaries to receive all or part of the amounts payable hereunder in the
event of such Participant's death. A designation of a Beneficiary may be
replaced by a new designation or may be revoked by a Participant at any time in
accordance with procedures established by the Administrative Committee. In the
event of a Participant's death, the amounts payable hereunder with respect to
which a designation of Beneficiary has been made shall be paid in accordance
with the Plan to such designated Beneficiary or Beneficiaries. Any amounts
payable upon death and not subject to such designation shall be distributed to
the Participant's estate. If there is any question as to the legal right of any
Beneficiary to receive payment of amounts hereunder, the amounts in question may
be paid to the Participant's estate, in which event AMG shall have no further
liability to anyone with respect to such amounts. A Beneficiary shall have no
rights under the Plan other than the right, subject to the immediately preceding
sentence, to receive such amounts, if any, as may be payable under this Section
9.1.

     Section IX.2 NONASSIGNABILITY. No rights granted to any Participant or any
Beneficiary under the Plan (including any interest in the Accounts) may be sold,
exchanged, transferred, assigned, pledged, hypothecated or otherwise disposed of
(including through the use of any cash-settled instrument) (each such action
being hereinafter referred to as an "assignment"), whether voluntarily or
involuntarily, other than by will or by the laws of descent and distribution.
Any assignment in violation of the provisions of this Section 9.2 shall be void.
All the terms of this Plan shall be binding upon such permitted successors and
assigns.

     Section IX.3 PLAN CREATES NO EMPLOYMENT RIGHTS. Nothing in the Plan shall
confer upon any Participant the right to continue in the employ of AMG or affect
any right which AMG may have to terminate such Employment.

     Section IX.4 LIMIT ON LIABILITY. No person shall have any right or interest
in the Plan or the Trust other than as provided herein. The Trust assets shall
under no circumstances be available to the creditors of AMG. All distributions
under the Plan shall be paid or provided solely from the Trust assets, and AMG
shall have no responsibility or liability to any Participant or Beneficiary
relating to any assets (including Stock) contributed to the Trust. Any final
distribution to any Participant or Beneficiary in accordance with the provisions
of the Plan shall be in full satisfaction of all claims against the Trust, the
Trustee, the Administrative Committee, the Investment Committee, the Board, AMG
and its employees with respect to the Plan or Trust.

     Section IX.5 ARBITRATION. Any dispute, controversy or claim between AMG and
any Participant arising out of or relating to or concerning the provisions of
the Plan or the Trust shall be finally settled by arbitration in Boston,
Massachusetts before the American Arbitration Association (the "AAA") in
accordance with the commercial arbitration rules of the AAA. Prior to
arbitration, all claims maintained by any Participant must first be submitted to
the Administrative Committee in accordance with claim procedures determined by
the Administrative Committee in its sole discretion. This Section is subject to
the provisions of Section 9.6.
<PAGE>

     Section IX.6 CHOICE OF FORUM.

          (a) AMG AND EACH PARTICIPANT, AS A CONDITION TO SUCH PARTICIPANT'S
PARTICIPATION IN THE PLAN, HEREBY IRREVOCABLY SUBMIT TO THE EXCLUSIVE
JURISDICTION OF ANY STATE OR FEDERAL COURT LOCATED IN THE CITY OF BOSTON,
MASSACHUSETTS OVER ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO
OR CONCERNING THE PLAN THAT IS NOT OTHERWISE ARBITRATED OR RESOLVED ACCORDING TO
THE PROVISIONS OF SECTION 9.5. This includes any suit, action or proceeding to
compel arbitration or to enforce an arbitration award. AMG and each Participant,
as a condition to such Participant's participation in the Plan, acknowledge that
the forum designated by this Section 9.6(a) has a reasonable relation to the
Plan, and to the relationship between such Participant and AMG. Notwithstanding
the foregoing, nothing herein shall preclude AMG from bringing any action or
proceeding in any other court for the purpose of enforcing the provisions of
Sections 9.5 and 9.6.

          (b) The agreement by AMG and each Participant as to forum is
independent of the law that may be applied in the action, and AMG and each
Participant, as a condition to such Participant's participation in the Plan, (i)
agree to such forum even if the forum may under applicable law choose to apply
non-forum law, (ii) hereby waive, to the fullest extent permitted by applicable
law, any objection which AMG or such Participant now or hereafter may have to
personal jurisdiction or to the laying of venue of any such suit, action or
proceeding in any court referred to in Section 9.6(a), (iii) undertake not to
commence any action arising out of or relating to or concerning the Plan in any
forum other than the forum described in this Section 9.6 and (iv) agree that, to
the fullest extent permitted by applicable law, a final and non-appealable
judgment in any such suit, action or proceeding in any such court shall be
conclusive and binding upon AMG and each Participant.

          (c) Each Participant, as a condition to such Participant's
participation in the Plan, hereby irrevocably appoints the General Counsel of
AMG as such Participant's agent for service of process in connection with any
action or proceeding arising out of or relating to or concerning the Plan which
is not arbitrated pursuant to the provisions of Section 9.5, who shall promptly
advise such Participant of any such service of process.

          (d) Each Participant hereby agrees, as a condition to such
Participant's participation in the Plan, to keep confidential the existence of,
and any information concerning, a dispute described in Section 9.5 or 9.6,
except that a Participant may disclose information concerning such dispute to
the arbitrator or court that is considering such dispute or to such
Participant's legal counsel (provided that such counsel agrees not to disclose
any such information other than as necessary to the prosecution or defense of
the dispute).

          (e) Each Participant recognizes and agrees that prior to being
selected by the
<PAGE>

Administrative Committee to participate in the Plan such Participant has no
right to any benefits hereunder. Accordingly, in consideration of a
Participant's selection to participate in the Plan, each Participant expressly
waives any right to contest the amount of any contribution to the Plan, the
terms of the Plan, any determination, action or omission hereunder by the
Administrative Committee, AMG or the Board, or any amendment to the Plan (other
than an amendment to which such Participant's consent is expressly required by
Article VIII).

          Section IX.7 GOVERNING LAW. ALL RIGHTS AND OBLIGATIONS UNDER THE PLAN
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
COMMONWEALTH OF MASSACHUSETTS, WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS.

          Section IX.8 TAXES AND WITHHOLDING.

          (a) Upon a Participant's vesting in all or any portion of his or her
Participant's Accounts, or in connection with any distribution or other event
that gives rise to a federal or other governmental tax withholding obligation
relating to the Plan (including, without limitation, FICA and Medicare tax), the
Trustee shall satisfy such withholding obligation as provided herein. If the
event giving rise to the withholding obligation involves a transfer of shares of
Stock, then the Trustee shall remit to AMG shares of Stock having a Fair Market
Value equal to the amount of tax to be withheld, or, at the discretion of the
Participant, the Participant may pay such withholding obligation directly to AMG
in cash. If the event giving rise to the withholding obligation involves the
Affiliate Investments Account or distribution of income or capital gains of the
Trust, then the Trustee shall take such actions as shall permit it to remit cash
to AMG. For this purpose, Fair Market Value shall be determined as of the date
on which the amount of tax to be withheld is determined (and any fractional
share amount may be settled in cash).

          (b) The Trustee may transfer to AMG any amounts (cash or shares of
Stock or other securities) withheld or received from the Participant pursuant to
Section 9.8(a). Any deduction of cash, shares of Stock or other securities from
the Participant's Accounts by the Trustee pursuant to this Section 9.8 shall be
treated as a distribution from the Trust to such Participant and an election by
the Participant to have such shares of Stock or other securities applied to
satisfy the withholding obligation.

          (c) No Participant may make an election pursuant to section 83(b) of
the Code with respect to his or her interest in the Trust, any shares of Stock
or any other property held by the Trust.

          Section IX.9 CONSENTS AND LEGENDS. The vesting and distribution to a
Participant of any shares of Stock or other securities may be conditioned on the
receipt, to the full satisfaction of the Administrative Committee, of (a) any
and all listings, registrations or qualifications in respect thereof upon any
securities exchange or under any federal, state or
<PAGE>

local law, or law, rule or regulation of a jurisdiction outside the United
States, (b) any and all written agreements and representations by the
Participant with respect to the disposition of shares of Stock or other
securities, or with respect to any other matter, which the Administrative
Committee shall deem necessary or desirable to comply with the terms of any such
listing, registration or qualification or to obtain an exemption from the
requirement that any such listing, qualification or registration be made, (c)
any and all other consents, clearances and approvals in respect of a plan action
by any governmental or other regulatory body or any stock exchange or
self-regulatory agency that the Administrative Committee may determine to be
necessary or advisable and (d) any and all consents or authorizations required
to comply with, or required to be obtained under, applicable local law or
otherwise required by the Administrative Committee. Nothing herein shall require
AMG to list, register or qualify the shares of Stock or other securities on any
securities exchange. AMG may affix to any stock certificate (or other document
or evidence of ownership) representing shares of Stock or other securities
distributed under the Plan any legend that the Administrative Committee
determines in its sole discretion to be necessary or advisable (including to
reflect any restrictions to which a Participant may be subject under a separate
agreement with AMG). AMG may advise the transfer agent to place a stop order
against any legended shares of Stock or other Securities.

          Section IX.10 FORFEITURE AND REPAYMENT AFTER ERRONEOUS VESTING. If,
following any date on which a Participant becomes vested in all or any portion
of his or her Participant's Accounts (the "Erroneously Vested Portion"), the
Administrative Committee determines that all terms and conditions of the Plan
were not satisfied on the relevant vesting date, such Participant or former
Participant shall cease to be vested in, and shall forfeit, such Erroneously
Vested Portion, and the Trust shall be entitled to receive, and such Participant
or former Participant shall be obligated to pay the Trust immediately upon
demand therefor the Fair Market Value of any shares of Stock or interest in
Affiliate Investments (determined as of the date of vesting) and the amount of
any cash delivered in respect of any distribution of the Erroneously Vested
Portion, without reduction for any shares of Stock or other securities or cash,
applied to satisfy withholding tax or other obligations in respect of such
erroneous vesting event.

          Section IX.11 SEVERABILITY; ENTIRE AGREEMENT. If any of the provisions
of this Plan is finally held to be invalid, illegal or unenforceable (whether in
whole or in part), such provision shall be deemed modified to the extent, but
only to the extent, of such invalidity, illegality or unenforceability and the
remaining provisions shall not be affected thereby; provided, that if any of the
provisions of this Plan is finally held to be invalid, illegal, or unenforceable
because it exceeds the maximum scope determined to be acceptable to permit such
provision to be enforceable, such provision shall be deemed to be modified to
the minimum extent necessary to modify such scope in order to make such
provision enforceable hereunder. The Plan contains the entire agreement of the
parties with respect to the subject matter hereof and supersedes all prior
agreements, promises, covenants, arrangements, communications, representations
and warranties between them, whether written or oral with respect to the subject
matter hereof.
<PAGE>

     Section IX.12 EXPENSES. All expenses incurred by the Administrative
Committee and the Trustee in connection with administering this Plan and the
Trust shall be paid by AMG. All taxes imposed on the Trust related to income
credited to or attributable to Trust assets shall be paid from such assets and
charged against the Participant's Account to which the income is allocated as
though it were payable directly to the Participant.

          Section IX.13 SUCCESSORS AND ASSIGNS. The terms of this Plan shall be
binding upon and inure to the benefit of AMG and its successors.

          Section IX.14 PLAN HEADINGS. The headings in this Plan are for the
purpose of convenience only and are not intended to define or limit the
construction of the provisions hereof.

          Section IX.15 CONSTRUCTION. In the construction of this Plan, the
singular shall include the plural, and vice-versa, in all cases where such
meanings would be appropriate.

          IN WITNESS WHEREOF, and as evidence of the adoption of this Plan
effective as of December 31, 1999 by AMG, it has caused the same to be signed by
its duly authorized officer this 31st day of December, 1999.

                             AFFILIATED MANAGERS GROUP, INC.

                             By: /s/ SEAN M. HEALEY
                                 ---------------------------
                                 Name: Sean M. Healey
                                 Title: President and Chief Operating Officer

<PAGE>

                                                                      SCHEDULE A

                       THE AFFILIATED MANAGERS GROUP, INC.
                            DEFINED CONTRIBUTION PLAN

                       ALLOCATION OF INITIAL CONTRIBUTION

<TABLE>
<CAPTION>
           PARTICIPANT                       AMG STOCK ACCOUNT             AFFILIATE INVESTMENTS ACCOUNT
---------------------------------- --------------------------------------- ----------------------------------------
<S>                                <C>                                     <C>
William J. Nutt                                   $750,000                                $750,000
---------------------------------- --------------------------------------- ----------------------------------------

Sean M. Healey                                    $500,000                                $500,000
---------------------------------- --------------------------------------- ----------------------------------------

Darrell W. Crate                                  $375,000                                $375,000
---------------------------------- --------------------------------------- ----------------------------------------

Nathaniel Dalton                                  $375,000                                $375,000
---------------------------------- --------------------------------------- ----------------------------------------

Seth W. Brennan                                   $300,000                                $300,000
---------------------------------- --------------------------------------- ----------------------------------------

Levon Chertavian, Jr.                             $200,000                                $200,000
---------------------------------- --------------------------------------- ----------------------------------------
</TABLE>

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