Document:

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                                                                     Exhibit 4.2

                                WARRANT AGREEMENT

                  This Agreement, dated as of April 1, 1997, between NAVIGATION
TECHNOLOGIES CORPORATION, a Delaware corporation (the "Company"), and PHILIPS
MEDIA SERVICES B.V., a Netherlands corporation (together with its successors or
assigns, "Philips").

                              W I T N E S S E T H:
                               - - - - - - - - - -

                  WHEREAS, the Company and Philips are party to an Amended and
Restated Master Loan Agreement, dated as of April 1, 1997 (as amended, the
"Master Loan Agreement"); and

                  WHEREAS, pursuant to the Master Loan Agreement, it is a
condition that, on or prior to the date of the Initial Term Note Loan (as
defined in the Master Loan Agreement) that the Company execute and deliver this
Agreement to Philips; and

                  WHEREAS, the Company desires to execute and deliver this
Agreement to Philips in order to satisfy such condition in contemplation of
requesting one or more Term Note Loans pursuant to the Master Loan Agreement;
and

                  WHEREAS, the Company and Philips wish to set forth the terms
and conditions in connection with the issuance, division, transfer, exchange and
exercise of Warrants,

                  NOW, THEREFORE, in consideration of the premises and the
mutual agreements herein set forth, the parties hereby agree as follows:

                  Section 1. Certain Definitions. For purposes of this
Agreement, the terms set forth below have the meanings indicated. Other terms
are defined elsewhere in this Agreement. Unless otherwise specified, capitalized
terms used in this Agreement but not defined herein have the meaning ascribed to
such terms in the Master Loan Agreement.

                  (a) "Affiliate" shall mean, with respect to any person, any
person directly or indirectly controlling, controlled by, or under common
control with, such other Person at any time during the period for which the
determination of affiliation is being made.

                  (b) "Business Day" shall mean any day other than a Saturday,
Sunday, or a day on which banking institutions in New York are authorized or
obligated by law or executive order to close.

                  (c) "Close of Business" on any given date shall mean 5:00
P.M., New York City time, on such date; provided, however, that if such date is
not a Business Day it shall mean 5:00 P.M., New York City time, on the next
succeeding Business Day.

                  (d) "Closing Price" shall mean the last reported sale price on
the day in question or, in case no such sale takes place on such day, the
average of the reported closing

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bid and asked prices of the Common Stock, in each case on the New York Stock
Exchange ("NYSE"), or, if the Common Stock is not listed or admitted to trading
on the NYSE, on the principal national securities exchange or quotation system
on which the Common Stock is listed or admitted to trading or quoted, or, if not
listed or admitted to trading or quoted on any national securities exchange or
quotation system, the average of the closing bid and asked prices of the Common
Stock in the over-the-counter market on the day in question as reported by the
National Quotation Bureau Incorporated, or a similarly generally accepted
reporting service, or, if not so available in such manner, as furnished by any
NYSE member firm reasonably acceptable to Majority Warrant Holders selected from
time to time by the board of directors of the Company for such purpose. In the
case of a Closing Price of Common Stock on the NYSE, such price shall mean the
closing price reported in the NYSE composite transactions reporting system (as
reported in the New York City edition of The Wall Street Journal or, if not so
reported, another authoritative source).

                  (e) "Designated Office" shall mean the Company's office in
Sunnyvale, California or such other office as the Company may designate to the
holders of the Warrant Certificates as its principal office for the
administration of this Warrant Agreement.

                  (f) "Majority Warrant Holders" shall mean one or more Persons
holding one or more Warrant Certificates registered in its or their name
entitling it or them to purchase, in the aggregate, a number of shares of Common
Stock in excess of 50% of the aggregate number of shares of Common Stock which
all holders of the then outstanding Warrant Certificates are entitled to
purchase.

                  (g) "Person" shall mean an individual, corporation, limited
liability company, association, partnership, joint venture, trust,
unincorporated organization, government or political subdivision thereof or
governmental agency or other entity.

                  (h) "Trading Day" shall mean a day on which the principal
national securities exchange on which the shares of Common Stock are listed or
admitted to trading is open for the transaction of business or, if the shares of
Common Stock are not listed or admitted to trading on any national securities
exchange, a Monday, Tuesday, Wednesday, Thursday or Friday on which banking
institutions in New York are not authorized or obligated by law or executive
order to close.

                  Section 2. Form of Warrant Certificates. The Warrant
Certificates (together with the form of election to purchase Common Stock and
the form of assignment to be attached thereto) shall be substantially in the
form of Exhibit A hereto and may have such marks of identification or
designation and such legends, summaries or endorsements printed thereon as the
Company may deem appropriate and as are not inconsistent with the provisions of
this Agreement and the Master Loan Agreement or as may be required to comply
with any law or with any rule or regulation made pursuant thereto or with any
rule or regulation of any stock exchange or quotation system on which the
Warrants may from time to time be listed, admitted to trading or quoted. Subject
to the provisions of Section 16 hereof, the Warrant Certificates, whenever
issued, shall be dated as of the date of their issue and on their face shall
entitle the holders thereof to purchase such number of shares of Common Stock as
shall be set forth therein for $.01 per share (the "Purchase Price"), but the
number of such shares and the Purchase Price shall be subject to the adjustments
as provided herein.

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                  Section 3. Countersignature and Registration. The Warrant
Certificates shall be manually executed on behalf of the Company by its
Chairman, President or Chief Executive Officer and have affixed thereto the
Company's seal or a facsimile thereof which shall be attested by the Secretary
or an Assistant Secretary of the Company. Any Warrant Certificate may be signed
on behalf of the Company by any person who, at the actual date of the execution
of such Warrant Certificate, shall be a proper officer of the Company to sign
such Warrant Certificate, although at the date of the execution of this Warrant
Agreement any such person was not such an officer.

                  The Company will keep or cause to be kept, in the Designated
Office, books for registration and transfer of the Warrant Certificates issued
hereunder. Such books shall show the names and addresses of the respective
holders of the Warrant Certificates, the number of Warrants evidenced on its
face by each of the Warrant Certificates and the date of each of the Warrant
Certificates.

                  Section 4. Transfer, Split Up, Combination and Exchange of
Warrant Certificates; Mutilated, Destroyed, Lost or Stolen Warrant Certificates.
At any time after the Close of Business on the date hereof, and at or prior to
the Close of Business on the Expiration Date (as such term is hereinafter
defined), any Warrant Certificate or Warrant Certificates may be transferred,
split up, combined or exchanged for another Warrant Certificate or Warrant
Certificates, entitling the registered holder to purchase in the aggregate a
like number of shares of Common Stock as the Warrant Certificate or Warrant
Certificates surrendered then entitled such holder to purchase. Any registered
holder desiring to transfer, split up, combine or exchange any Warrant
Certificate shall make such request in writing delivered to the Company, and
shall surrender the Warrant Certificate or Warrant Certificates to be
transferred, split up, combined or exchanged at the Designated Office. The
Company will deliver a duly executed sealed and attested Warrant Certificate or
Warrant Certificates to the appropriate registered holder. The Company may
require payment of a sum sufficient to cover any tax or governmental charge that
may be imposed in connection with any transfer, split up, combination or
exchange of Warrant Certificates.

                  Upon receipt by the Company of evidence reasonably
satisfactory to it of the loss, theft, destruction or mutilation of a Warrant
Certificate, and, in case of loss, theft or destruction, of indemnity or, if
requested in the case of any holder other than Philips or its successors,
security reasonably satisfactory to the Company, and reimbursement to the
Company of all reasonable expenses incidental thereto, and upon surrender to the
Company and cancellation of the Warrant Certificate if mutilated, the Company
will make, duly execute, seal and attest, and deliver a new Warrant Certificate
of like tenor to the registered holder in lieu of the Warrant Certificate so
lost, stolen, destroyed or mutilated.

                  Section 5. Exercise of Warrants; Purchase Price; Expiration
Date of Warrants. (a) The registered holder of any Warrant Certificate may
exercise the Warrants evidenced thereby in whole or in part upon presentation
and surrender of the Warrant Certificate, with the Form of Election to Purchase
attached thereto duly executed, to the Company at the Designated Office,
together with payment of the Purchase Price in immediately available funds for
each share of Common Stock as to which the Warrants are exercised, at or prior
to the Close of Business on April 1, 2007 or, if such date is not a Business
Day, the next Business Day thereafter (the "Expiration Date").

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                  (b) The Purchase Price is subject to adjustment from time to
time as provided in Section 9 hereof.

                  (c) Upon receipt of a Warrant Certificate, with the Form of
Election to Purchase duly executed, accompanied by payment of the aggregate
Purchase Price (rounded up to the nearest $0.01) for the shares to be purchased
and an amount equal to any applicable tax or governmental charge payable by the
holder pursuant to Section 7 in cash, or by wire transfer, certified check or
bank draft payable to the order of the Company in immediately available funds,
the Company shall within two Business Days (i) requisition from any transfer
agent of the Common Stock of the Company certificates for the number of whole
shares of Common Stock to be purchased and the Company hereby irrevocably
authorizes its transfer agent to comply with all such requests and (ii) after
receipt of such certificates cause the same to be delivered to or upon the order
of the registered holder of such Warrant Certificate, registered in such name or
names as may be designated by such holder.

                  (d) Notwithstanding anything to the contrary in this Section
5, a Warrant may also be exercised solely by the surrender of the Warrant, and
without the payment of the Purchase Price in cash, for such number of shares
equal to the product of (1) the number of shares for which such Warrant is
exercisable with payment of the Purchase Price as of the date of exercise and
(2) the Cashless Exercise Ratio. For the purposes of this Agreement, the
"Cashless Exercise Ratio" shall equal a fraction, the numerator of which is the
excess of the current market price of the Common Stock on the date of exercise
over the Purchase Price Per Share as of the date of exercise and the denominator
of which is the current market price of the Common Stock on the date of
exercise. An exercise of a Warrant in accordance with the immediately preceding
sentences is herein called a "Cashless Exercise." Upon surrender of a Warrant
Certificate representing more than one Warrant in connection with the holder's
option to elect a Cashless Exercise, the number of shares deliverable upon a
Cashless Exercise shall be equal to the number of Warrants that the holder
specifies is to be exercised pursuant to a Cashless Exercise multiplied by the
Cashless Exercise Ratio. All provisions of this Agreement shall be applicable
with respect to an exercise of a Warrant Certificate pursuant to a Cashless
Exercise for less than the full number of Warrants represented thereby.
"Purchase Price Per Share" means the Purchase Price divided by the number of
shares for which a Warrant is then exercisable (without giving effect to the
Cashless Exercise option).

                  (e) In case the registered holder of any Warrant Certificate
shall exercise less than all the Warrants evidenced thereby, a new Warrant
Certificate evidencing Warrants equivalent to the Warrants remaining unexercised
shall be issued by the Company to the registered holder of such Warrant
Certificate or to his duly authorized assigns.

                  Section 6. Cancellation and Destruction of Warrant
Certificates. All Warrant Certificates surrendered for the purpose of exercise,
transfer, split up, combination or exchange shall be cancelled by the Company,
and no Warrant Certificates shall be issued in lieu thereof except as expressly
permitted by any of the provisions of this Warrant Agreement. The Company shall
so cancel and retire any other Warrant Certificate purchased or acquired by the
Company otherwise than upon the exercise thereof.

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                  Section 7. Reservation and Availability of Shares of Common
Stock; Reports; Taxes. The Company covenants and agrees that it will cause to be
reserved and kept available out of its authorized and unissued shares of Common
Stock or its authorized and issued shares of Common Stock held in its treasury
such number of shares of Common Stock as will be sufficient to permit the
exercise in full of all outstanding Warrants. The transfer agent for the Common
Stock (the "Transfer Agent") will be irrevocably authorized and directed at all
times to reserve such number of authorized shares as shall be required for such
purpose. The Company will keep a copy of this Agreement on file with the
Transfer Agent.

                  So long as the Common Stock issuable upon the exercise of
Warrants may be listed on the NYSE or any other national securities exchange or
quoted in any interdealer quotation system, the Company shall use its best
efforts to cause all shares reserved for such issuance to be listed on the NYSE
or such other exchange or approved for quotation in such interdealer quotation
system upon official notice of issuance upon such exercise.

                  The Company covenants and agrees that

                  (i) it will assist Philips and any other registered holder of
         Warrant Certificates to effect assignments and transfers thereof and of
         the shares of Common Stock issuable upon exercise of the Warrants, and
         will cooperate to facilitate transfers thereof in compliance with
         applicable federal and state securities laws including, if requested by
         Majority Warrant Holders, registration with the Securities and Exchange
         Commission (the "SEC") under the Securities Act of 1933, as amended
         (the "Securities Act"), of any shares of Common Stock issued by the
         Company upon exercise of Warrants and the subsequent sale of such
         shares without further registration; and

                  (ii) it will take all such actions in a timely manner as may
         be necessary to insure that all shares of Common Stock delivered upon
         exercise of Warrants, if any, shall, at the time of delivery of the
         certificates for such shares (subject to payment of the Purchase
         Price), be duly authorized, validly issued, fully paid and
         nonassessable, free of preemptive rights and free from all taxes,
         liens, charges and security interests with respect to the issue
         thereof.

                  The Company further covenants and agrees that it will pay when
due and payable any and all federal and state transfer taxes and charges which
may be payable in respect of the original issuance or delivery of the Warrant
Certificates and the initial issuance of shares of Common Stock upon the
exercise of Warrants. The Company shall not, however, be required to pay any tax
or governmental charge which may be payable in respect of any transfer involved
in the transfer or delivery of Warrant Certificates or the issuance or delivery
of certificates for Common Stock in a name other than that of the registered
holder of the Warrant Certificate evidencing Warrants surrendered for exercise
or to issue or deliver any certificates for shares of Common Stock upon the
exercise of any Warrants until any such tax or governmental charge that is not
payable by the Company shall have been paid (any such tax or governmental charge
being payable by the holder of such Warrant Certificate at the time of
surrender) or until it has been established to the Company's reasonable
satisfaction that no such tax or governmental charge is due.

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                  So long as any of the Warrants remain outstanding, at the
request of a Warrant holder,

                  (i) at any time when the Company is not required to file
         reports ("SEC Reports") with the SEC pursuant to Section 13 or 15(d) of
         the Securities Exchange Act of 1934, as amended (the "Exchange Act"),
         the Company shall cause copies of its regularly prepared unaudited
         quarterly and audited annual financial reports to be mailed to such
         Warrant holder within 15 days after the later of such request and the
         date such financial reports are available; and

                  (ii) at any time when the Company is required to file SEC
         Reports, the Company shall cause copies of any quarterly and annual
         financial reports and of any information, documents and other reports
         (or copies of such portions of any of the foregoing as the SEC may by
         rules and regulations prescribe) that the Company is required to file
         with the SEC pursuant to Section 13 or 15(d) of the Exchange Act, to be
         mailed to such Warrant holder within 15 days after the later of such
         request and such filing with the SEC.

                  Section 8. Common Stock Record Date. Each person in whose name
any certificate for shares of Common Stock is issued upon the exercise of
Warrants shall for all purposes be deemed to have become the holder of record
for the Common Stock represented thereby on, and such certificate shall be
dated, the date upon which the Warrant Certificate evidencing such Warrants was
duly surrendered together with a duly executed Form of Election and payment of
the Purchase Price (and any applicable transfer taxes) was made; provided,
however, that if the date of such surrender and payment is a date upon which the
Common Stock transfer books of the Company are closed, such person shall be
deemed to have become the record holder of such shares on, and such certificate
shall be dated, the next succeeding Business Day on which the Common Stock
transfer books of the Company are open.

                  Section 9. Adjustment of Purchase Price, Number of Shares or
Number of Warrants. The Purchase Price, the number of shares covered by each
Warrant and the number of Warrants outstanding are subject to adjustment from
time to time as provided in this Section 9.

                  (a) In the event the Company shall at any time after the date
of this Agreement (i) pay a dividend or make a distribution on the Common Stock
in shares of capital stock, (ii) subdivide the outstanding Common Stock, (iii)
combine the outstanding Common Stock into a smaller number of shares, or (iv)
issue any shares of capital stock in a reclassification of the Common Stock
(including any such reclassification in connection with a consolidation or
merger in which the Company is the continuing corporation), the Purchase Price
and the number and kind of shares of capital stock issuable upon the exercise of
a Warrant (as in effect immediately prior to such action) shall be
proportionately adjusted so that the holder of any Warrant exercised after such
action shall be entitled to receive the aggregate number and kind of shares of
capital stock which he would have owned immediately following such action, if
such Warrant had been exercised immediately prior to such action. The adjustment
shall become effective immediately after the record date in the case of a
dividend or distribution and immediately after the effective date in the case of
a subdivision, combination or reclassification. Such adjustment shall be made
successively

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whenever any event listed above shall occur and, in the event that
such dividend or distribution is not paid, such adjustment shall be readjusted
retroactively.

                  (b) In case the Company shall fix a record date for the
issuance (without consideration) of rights, options or warrants to all holders
of Common Stock entitling them (for a period expiring within 60 calendar days
after such date of issue) to subscribe for or purchase Common Stock (or
securities convertible into or exchangeable or exercisable for Common Stock) at
a price per share of Common Stock (or having an initial conversion, exchange or
exercise price per share of Common Stock, if a security convertible into or
exchangeable or exercisable for Common Stock) less than the current market price
per share of Common Stock (as defined in Section 9(f)) on such record date, the
Purchase Price to be in effect after such record date shall be determined by
multiplying the Purchase Price in effect immediately prior to such record date
by a fraction of which the numerator shall be the number of shares of Common
Stock outstanding on such record date plus the number of shares of Common Stock
which the aggregate offering price of the total number of shares of Common Stock
so to be offered (or the aggregate offering price for the convertible,
exchangeable or exercisable securities so to be offered) would purchase at such
current market price and of which the denominator shall be the number of shares
of Common Stock outstanding on such record date plus the number of additional
shares of Common Stock to be offered for subscription or purchase (or into which
the convertible, exchangeable or exercisable securities so to be offered are
initially convertible, exchangeable or exercisable). In case such subscription
price may be paid in a consideration part or all of which shall be in a form
other than cash, the value of such consideration shall be as determined in good
faith by the Board of Directors of the Company, whose determination shall be
described in a statement sent to all registered holders of Warrant Certificates
and kept on record at the Company for the benefit of each holder of any Warrant
Certificates. The aggregate offering price for the issuance of convertible,
exchangeable or exercisable securities shall be deemed to be the consideration
to be received by the Company for such securities plus the additional minimum
initial consideration, if any, to be received by the Company upon the
conversion, exchange or exercise thereof. Such adjustment shall be made
successively whenever such a record date is fixed; and in the event that such
rights or warrants are not so issued and, to the extent, if issued, they expire
without being exercised, the Purchase Price shall be readjusted retroactively to
be the Purchase Price which would then be in effect if such record date had not
been fixed.

                  (c) In case the Company shall fix a record date for the making
of a dividend or distribution (other than a cash dividend or distribution out of
retained earnings or earned surplus, except a special or extraordinary dividend
or distribution, and dividends or distributions of the stock of the Company
which are covered by Section 9(a)) to all holders of Common Stock (including any
distribution made in connection with a consolidation or merger in which the
Company is the continuing corporation), of evidences of indebtedness or assets
(including cash, except in respect of dividends and distributions other than
special or extraordinary dividends or distributions) or rights or warrants
(excluding those referred to in Section 9(b)) to purchase debt securities,
assets or other securities of the Company, the Purchase Price to be in effect
after such record date shall be determined by multiplying the Purchase Price in
effect immediately prior to such record date by a fraction of which the
numerator shall be the current market price per share of Common Stock (as
defined in Section 9(f)) on such record date, less the fair market value (as
determined in good faith by the Board of Directors of the Company, whose
determination

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shall be described in a statement sent to all registered holders of Warrant
Certificates and kept on record at the Company for the benefit of each holder of
any Warrant Certificate) of such distribution applicable to one share of Common
Stock, and of which the denominator shall be such current market price per share
of Common Stock. Such adjustment shall be made successively whenever such a
record date is fixed; and in the event that such distribution is not so made,
the Purchase Price shall be readjusted retroactively to be the Purchase Price
which would then be in effect if such record date had not been fixed.

                  (d) If the Company issues shares of Common Stock to any Person
other than Philips or an Affiliate of Philips, and other than pursuant to
exercises of Warrants, in an underwritten public offering of shares registered
under the Securities Act or pursuant to rights, options or warrants issued in
transactions described in the foregoing subsections of this Section 9, for a
consideration per share less than the current market price per share of Common
Stock on the date the Company fixes the offering price of such additional
shares, the Purchase Price to be in effect immediately after such issuance shall
be determined by multiplying the Purchase Price in effect immediately prior to
such issuance by a fraction of which the numerator shall be the number of shares
of Common Stock outstanding on such date of issuance plus the number of shares
of Common Stock which the aggregate consideration received for the issuance of
such additional shares would purchase at such current market price and of which
the denominator shall be the number of shares of Commons Stock outstanding
immediately after the issuance of such additional shares. The adjustment shall
be made successively whenever any such issuance is made and shall become
effective immediately after such issuance.

                  (e) If the Company issues any securities convertible into or
exchangeable or exercisable for Common Stock (other than securities issued in
transactions described in the foregoing subsections of this Section 9) to any
Person other than Philips or an Affiliate of Philips for a consideration per
share of Common Stock initially deliverable upon conversion of or exchange or
exercise for such securities (plus the consideration for the security
convertible, exchangeable or exercisable for such share of Common Stock) less
than the current market price per share on the date of issuance of such
securities, the Purchase Price to be in effect immediately after such issuance
shall be determined by multiplying the Purchase Price in effect immediately
prior to such issuance by a fraction of which the numerator shall be the number
of shares of Common Stock outstanding on such date of issuance plus the number
of shares of Common Stock which the aggregate consideration received for the
issuance of such securities would purchase at such current market price and of
which the denominator shall be the number of shares of Common Stock outstanding
immediately prior to the issuance of such securities plus the maximum number of
shares of Common Stock deliverable upon conversion of or in exercise or exchange
for such securities at the initial conversion rate. The aggregate consideration
received for the issuance of such securities shall be deemed to be the
consideration received by the Company for the issuance of such securities plus
the additional minimum initial consideration, if any, to be received by the
Company upon the conversion, exchange or exercise thereof. The adjustment shall
be made successively whenever any such issuance is made and shall become
effective immediately after such issuance.

                  (f) For the purpose of any computation pursuant to this
Agreement, the "current market price" per share of Common Stock on any date
shall be deemed to be the average of the daily Closing Price per share of such
Common Stock for the 30 consecutive

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Trading Days immediately prior to such date. If the Common Stock is not publicly
held or not so listed or traded, "current market price" per share shall mean the
fair value per share as determined in good faith by the Board of Directors of
the Company, whose determination shall be described in a statement sent to the
registered holders of Warrant Certificates and kept on record at the Company for
the benefit of each holder of any Warrant Certificate.

                  (g) No adjustment in the Purchase Price shall be required
unless such adjustment would require an increase or decrease of at least 1% in
such price; provided, however, that any adjustments which by reason of this
Section 9(g) are not required to be made shall be carried forward and taken into
account in any subsequent adjustment. All calculations under this Section 9
shall be made to the nearest ten-thousandth of a cent or the nearest
ten-thousandth of a share, as the case may be.

                  (h) In the event that at any time, as a result of an
adjustment made pursuant to this Section 9, the holder of any Warrant thereafter
exercised shall become entitled to receive any shares of capital stock of the
Company other than shares of Common Stock, thereafter the number of such other
shares so receivable upon exercise of any Warrant shall be subject to adjustment
from time to time in a manner and on terms as nearly equivalent as practicable
to the provisions with respect to the shares contained in this Section 9 (as
determined in good faith by the Board of Directors of the Company, whose
determination shall be described in a statement sent to the registered holders
of Warrant Certificates and kept on record at the Company for the benefit of
each holder of any Warrant Certificates), and the provisions of Sections 5, 7, 8
and 11 with respect to the shares of Common Stock shall apply on like terms to
any such other shares.

                  (i) Unless the Company shall have exercised its election as
provided in Section 9(j), upon each adjustment of the Purchase Price as a result
of the calculations made in this Section 9, each Warrant outstanding immediately
prior to the making of such adjustment shall thereafter evidence the right to
purchase, at the adjusted Purchase Price, that number of shares (calculated to
the nearest ten-thousandth) obtained by (i) multiplying (x) the number of shares
covered by a Warrant immediately prior to this adjustment by (y) the Purchase
Price in effect immediately prior to such adjustment of the Purchase Price and
(ii) dividing the product so obtained by the Purchase Price in effect
immediately after such adjustment of the Purchase Price.

                  (j) The Company may elect on or after the date of any
adjustment of the Purchase Price to adjust the number of Warrants, in
substitution for any adjustment in the number of shares of Common Stock
purchasable upon the exercise of a Warrant. The aggregate Warrants outstanding
immediately after such adjustment of the number of Warrants shall be exercisable
for the same number of shares of Common Stock for which the aggregate Warrants
were exercisable immediately prior to such adjustment of the number of Warrants.
Each Warrant held of record prior to such adjustment of the number of Warrants
shall become that number of Warrants (calculated to the nearest ten-thousandth)
obtained by dividing the Purchase Price in effect prior to adjustment of the
Purchase Price by the Purchase Price in effect after adjustment of the Purchase
Price. The Company shall notify record holders of Warrants of its election to
adjust the number of Warrants, indicating the record date for the adjustment,
and, if known at the time, the amount of the adjustment to be made. This record
date may be the date on which the Purchase Price is adjusted or any day
thereafter, but shall be at least 10 days later than the date of the public
announcement.

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Upon each adjustment of the number of Warrants pursuant to this subsection (j)
the Company shall, as promptly as practicable, cause to be distributed to
holders of record of Warrant Certificates on such record date Warrant
Certificates evidencing the additional Warrants to which such holders shall be
entitled as a result of such adjustment, or, at the option of the Company, shall
cause to be distributed to such holders of record in substitution and
replacement for the Warrant Certificates held by such holders prior to the date
of adjustment, and upon surrender thereof, if required by the Company, new
Warrant Certificates evidencing all the Warrants to which such holders shall be
entitled after such adjustment. Warrant Certificates so to be distributed shall
be issued, executed and countersigned in the manner provided for herein (and may
bear, at the option of the Company, the adjusted Purchase Price) and shall be
registered in the names of the holders of record of Warrant Certificates on the
record date specified in the public announcement.

                  (k) Irrespective of any adjustment or change in the Purchase
Price or the number of shares of Common Stock issuable upon the exercise of the
Warrants, the Warrant Certificates theretofore and thereafter issued may
continue to express the Purchase Price per share and the number of shares which
were expressed upon the initial Warrant Certificates issued hereunder.

                  (l) Before taking any action that would cause an adjustment
reducing the Purchase Price below the then par value, if any, of the shares of
Common Stock issuable upon exercise of the Warrants, the Company shall take any
corporate action which may be necessary in order that the Company may validly
issue fully paid and nonassessable shares of such Common Stock at such adjusted
Purchase Price.

                  (m) In any case in which this Section 9 shall require that an
adjustment in the Purchase Price be made effective as of a record date for a
specified event, the Company may elect to defer until the occurrence of such
event the issuing to the holder of any Warrant exercised after such record date
of the shares of Common Stock and other capital stock of the Company, if any,
issuable upon such exercise over and above the shares of Common Stock and other
capital stock of the Company, if any, issuable upon such exercise on the basis
of the Purchase Price in effect prior to such adjustment; provided, however,
that the Company shall deliver to such holder a due bill or other appropriate
instrument evidencing such holder's right to receive such additional shares upon
the occurrence of the event requiring such adjustment.

                  (n) Anything in this Section 9 to the contrary
notwithstanding, the Company shall be entitled to make such reductions in the
Purchase Price, in addition to those adjustments expressly required by this
Section 9, as and to the extent that it in its sole discretion shall determine
to be advisable in order that any event treated for federal income tax purposes
as a distribution of stock or stock rights shall not be taxable to the
recipients; provided, however, that any reduction of the Purchase Price pursuant
to this Section 9(n), other than a reduction which the Company has irrevocably
committed will be in effect for so long as any Warrants are outstanding, does
not change or adjust the Purchase Price otherwise in effect for purposes of
subsections (a) through (e), inclusive, of this Section 9.

                  (o) If any event shall occur as to which the provisions of
this Section 9 are not strictly applicable but the failure to make any
adjustment would in the good faith

                                       10
<PAGE>

judgment of the Company's Board of Directors adversely affect the purchase
rights represented by the Warrants in accordance with the essential intent and
principles of this Section 9, then, in each such case, the Company shall appoint
an investment banking firm of recognized national standing, or any other
financial expert satisfactory to the Majority Warrant Holders which shall give
their opinion upon the adjustment, if any, on a basis consistent with the
essential intent and principles established in this Section 9, necessary to
preserve, without dilution or accretion, the rights represented by the Warrants.
Upon receipt of such opinion, the Company will promptly mail a copy thereof to
the holders of the Warrants and shall make the adjustments described therein.

                  (p) The Company will not, by amendment of its certificate of
incorporation or through any consolidation, merger, reorganization, transfer of
assets, dissolution, issue or sale of securities or any other voluntary action,
avoid or seek to avoid the observance or performance of any of the terms of the
Warrants, but will at all times in good faith assist in the carrying out of all
such terms and in the taking of all such action as may be necessary or
appropriate in order to protect the rights of the holder of the Warrants against
impairment.

                  Section 10. Certification of Adjusted Purchase Price or Number
of Shares. Whenever the Purchase Price or the number of shares of Common Stock
issuable upon the exercise of each Warrant is adjusted as provided in Section 9
or 11, the Company shall (a) promptly prepare a certificate signed by an
executive officer of the Company and one of its accounting officers setting
forth the Purchase Price as so adjusted and/or the number of shares of Common
Stock issuable upon exercise of each Warrant as so adjusted, and a brief
statement of the facts accounting for such adjustment and setting forth a
computation by which such adjustment was made, (b) promptly send to each
transfer agent for the Common Stock a copy of such certificate and (c) mail a
brief summary thereof to each registered holder of a Warrant Certificate in
accordance with Section 18.

                  Section 11. Consolidation, Merger or Sale or Transfer of
Assets. In case of any consolidation or merger of the Company with another
corporation or in case of any sale, lease or conveyance to another Person of all
or substantially all of the assets or property of the Company, the Company or
such successor or purchasing corporation, as the case may be, shall execute and
deliver to each registered holder of a Warrant Certificate an agreement
providing such holder with the right, upon payment of the Purchase Price in
effect immediately prior to such action, to purchase upon exercise of each
Warrant the kind and amount of shares or other securities or property that he
would have owned or been entitled to receive after the happening of such action,
had such Warrant been exercised immediately prior to such action.
Notwithstanding the foregoing, in the case of any merger or other transaction in
which any publicly held Common Stock shall be converted into the right to
receive a consideration consisting solely of cash, each holder of a Warrant,
without having to take any other action than the surrendering of such Warrant to
the Company, shall receive in full and complete satisfaction of the rights
appertaining to the Warrants an amount equal to the amount (if any) by which the
price per share payable to, or which would be received by, any public holder of
Common Stock in connection with such transaction exceeds the Purchase Price in
effect immediately prior to such merger or other transaction. The Company shall
mail by first-class mail, postage prepaid, to each holder of a Warrant, notice
of the execution of any such agreement referred to in the first sentence of this
Section 11.

                                       11
<PAGE>

Such agreement shall provide for adjustments, which shall be as nearly
equivalent as may be practicable to the adjustments provided for in Section 9 in
relation to any securities or property (including cash) thereafter deliverable
upon the exercise of the Warrants. The provisions of this Section 11 shall
similarly apply to successive mergers or consolidations or sales or other
transfers.

             Section 12.  Transfer of Warrant Certificates.

                  (a) General Provisions. The Warrant Certificates and the
Common Stock or other securities issuable upon the exercise or conversion
thereof (the "Restricted Securities") are transferable only among Philips and
its affiliates or pursuant to (i) public offerings registered under the
Securities Act, (ii) SEC Rule 144 or Rule 144A (or any similar rule or rules
then in force) if such rule is available and (iii) subject to the conditions
specified in Section 12(b), any other legally available means of transfer.

                  (b) Opinion Delivery. In connection with the transfer of any
Restricted Securities (other than a transfer described in Section 12(a)(i)), the
registered holder thereof shall deliver written notice to the Company describing
in reasonable detail the transfer or proposed transfer, together with an opinion
of counsel which (to the Company's reasonable satisfaction) is knowledgeable in
securities law matters to the effect that such transfer of Restricted Securities
may be effected without registration of such Restricted Securities under the
Securities Act. In addition, if the holder of the Restricted Securities delivers
to the Company such an opinion of counsel that no subsequent transfer of such
Restricted Securities shall require registration under the Securities Act, the
Company shall upon such contemplated transfer deliver new certificates for such
Restricted Securities which do not bear the Securities Act legend set forth in
Section 12(c). So long as such Restricted Securities are required to bear such a
legend, the holder thereof shall not transfer the same until the prospective
transferee has confirmed to the Company in writing its agreement to be bound by
the conditions contained in this Section 12 and makes the representations set
forth in Section 12(e).

                  (c) Legends. Each Warrant Certificate or other certificate
representing Restricted Securities shall be imprinted with a legend in
substantially the following form:

         "The securities represented by this certificate were originally issued
         on _______, 1997, and have not been registered under the Securities Act
         of 1933, as amended. The transfer of the securities represented by this
         certificate is subject to the conditions specified in the Warrant
         Agreement, dated as of _______, 1997 and as amended and modified from
         time to time, between the issuer (the "Company") and Philips Media
         Services, B.V., and the Company reserves the right to refuse the
         transfer of such securities until such conditions have been fulfilled
         with respect to such transfer. A copy of such conditions shall be
         furnished by the Company to the registered holder hereof upon written
         request and without charge."

                  (d) Legend Removal. If, at any time following a public
offering of shares registered under the Securities Act, any Restricted
Securities become eligible for a sale pursuant to Rule 144(k) under the
Securities Act, the Company shall, upon the request of the registered holder of
such Restricted Securities, remove the legend set forth in Section 12(c) from
the certificates for such Restricted Securities.

                                       12
<PAGE>

                  (e) Representations by Philips. This Agreement is entered into
by the Company in reliance upon the representations and covenants made by
Philips in this Section 12, which by its execution of this Agreement Philips
hereby confirms.

                  (i) Philips understands that the Restricted Securities have
         not been registered under the Securities Act and are being offered and
         issued pursuant to an exemption from registration contained in the
         Securities Act based upon the representation of Philips contained
         herein.

                  (ii) Philips is acquiring the Restricted Securities to be
         issued hereunder for its own account for investment and not with a view
         to the distribution thereof in violation of the Securities Act. Philips
         understands that it must bear the economic risk of the Restricted
         Securities unless the Restricted Securities are registered pursuant to
         the Securities Act, or an exemption from such registration is
         available, and that the Company has no present intention of registering
         any of the Restricted Securities. Philips further understands that
         there is no assurance that any exemption under the Securities Act will
         be available or, if available, that such exemption will allow it to
         dispose of or otherwise transfer any or all of the Restricted
         Securities under the circumstances, in the amounts or at the times
         Philips might otherwise propose.

                  (iii) By reason of its business or financial experience,
         Philips has the capacity to evaluate the merits of its acquisition of
         the Restricted Securities hereunder and has the ability to bear the
         economic risk (including the risk of total loss) of the value of the
         Restricted Securities.

                  (iv) Philips further covenants that it will not make any sale,
         transfer or other disposition of the Restricted Securities in violation
         of the provisions of this Section 12 or of the Securities Act, the
         Exchange Act or the rules of the SEC promulgated thereunder.

                  (v) Philips acknowledges that it is aware of Rule 144
         promulgated under the Securities Act, which permits limited public
         resales or securities acquired in a nonpublic offering, subject to the
         satisfaction of certain conditions. Philips acknowledges that in the
         event all of the requirements of Rule 144 are not met, registration
         under the Securities Act, compliance with the SEC's Regulation A or an
         exemption from registration will be required for any disposition of the
         Restricted Securities.

                  (vi) Philips acknowledges that the Company or its transfer
         agent will make a notation in its stock books regarding the
         restrictions on transfer set forth in this Section 12 and shall
         transfer such shares on the books of the Company only to the extent not
         inconsistent therewith.

                  (vii) Philips has the full power and authority to execute,
         deliver and perform this Agreement. This Agreement when executed and
         delivered by Philips will constitute a valid and legally binding
         obligation of Philips, enforceable in accordance with its terms.

                                       13
<PAGE>

                  (viii) Philips has reviewed with its own tax advisors the
         federal, state and local tax consequences of the transactions
         contemplated by this Agreement. Philips is relying solely on such
         advisors and not any statements or representations of the Company or
         any of its agents and understands that Philips (and not the Company)
         shall be responsible for its own tax liability that may arise as a
         result of the transactions contemplated by this Agreement.

                  Section 13. Right of Action. All rights of action in respect
of this Agreement are vested in the respective registered holders of the Warrant
Certificates; and any registered holder of any Warrant Certificate, without the
consent of the holder of any other Warrant Certificate, may, on his own behalf
and for his own benefit, enforce, and may institute and maintain any suit,
action or proceeding against the Company to enforce, or otherwise act in respect
of, his rights relating to the Warrants, including his right to exercise the
Warrants as provided in such Warrant Certificate and in this Agreement.

                  Section 14. Agreement of Warrant Certificate Holders. Every
holder of a Warrant Certificate by accepting the same consents and agrees with
the Company and with every other holder of a Warrant Certificate that:

                  (a) the Warrant Certificates are transferable only on the
registry books of the Company if surrendered at the Designated Office, duly
endorsed or accompanied by a proper instrument of transfer; and

                  (b) the Company may deem and treat the person in whose name
the Warrant Certificate is registered as the absolute owner thereof and of the
Warrants evidenced thereby (notwithstanding any notations of ownership or
writing on the Warrant Certificates made by anyone other than the Company) for
all purposes whatsoever, and the Company shall not be affected by any notice to
the contrary.

                  Section 15. Warrant Certificate Holder Not Deemed a
Shareholder. No holder of any Warrant Certificate, as such, shall be entitled to
vote, receive dividends or be deemed for any purpose the holder of Common Stock
or any other securities of the Company which may at any time be issuable on the
exercise or conversion of the Warrants represented thereby, nor shall anything
contained herein or in any Warrant Certificate be construed to confer upon the
holder of any Warrant Certificate, as such, any of the rights of a shareholder
of the Company or any right to vote for the election of directors or upon any
matter submitted to shareholders at any meeting thereof, or to give or withhold
consent to any corporate action, or to receive notice of meetings or other
actions affecting shareholders (except as provided in Section 18), or to receive
dividends or subscription rights, or otherwise, until the Warrant or Warrants
evidenced by such Warrant Certificate shall have been exercised in accordance
with the provisions hereof.

                  Section 16. Issuance of New Warrant Certificates.
Notwithstanding any of the provisions of this Agreement or of the Warrants to
the contrary, the Company may, at its option, issue new Warrant Certificates
evidencing Warrants in such form as may be approved by its Board of Directors to
reflect any adjustment or change in the Purchase Price per share and the number
or kind or class of shares of stock or other securities or property

                                       14
<PAGE>

purchasable under the several Warrant Certificates made in accordance with the
provisions of this Agreement.

                  Section 17. Purchase of Warrants by the Company. The Company
shall have the right, except as limited by applicable law or other agreements,
to purchase or otherwise acquire Warrants at such time, in such manner and for
such consideration as may be agreed to by the Company and any selling Warrant
holder.

                  Section 18. Notice of Proposed Actions. In case the Company
shall propose (a) to take any action which may require an adjustment in the
Purchase Price or other terms of the Warrants pursuant to Section 9 or Section
11 of this Agreement, or (b) to effect the liquidation, dissolution or winding
up of the Company, then, in each such case, the Company shall give to each
registered holder of a Warrant, in accordance with Section 19, a notice of such
proposed action, which shall specify the record date for the purposes of such
stock dividend, distribution of rights or warrants, or the date on which such
reclassification, consolidation, merger, sale, transfer, liquidation,
dissolution, or winding up is to take place and the date of participation
therein by the holders of Common Stock, if any such date is to be fixed, and
such notice shall be so given in the case of any action covered by clause (a) or
(b) above at least twenty days prior to the record date for determining holders
of the Common Stock for purposes of such action, and in the case of any such
other action, at least twenty days prior to the date of the taking of such
proposed action or the date of participation therein by the holders of Common
Stock, whichever shall be the earlier. The failure to give notice required by
this Section 18 or any defect therein shall not affect the legality or validity
of the action taken by the Company or the vote upon any such action. Unless
specifically required by Section 9, the Purchase Price, the number of shares
covered by each Warrant and the number of Warrants outstanding shall not be
subject to adjustment as a result of the Company being required to give notice
pursuant to this Section 18.

                  Section 19. Notices. Notices or demands authorized by this
Agreement to be given or made by the holder of any Warrant Certificate to or on
the Company shall be in writing and shall be deemed given or made when delivered
or on the third day following the date sent by first-class mail, postage
prepaid, addressed (until another address is filed in writing with the Company)
or on the date sent by facsimile transmission (provided that such facsimile
transmission is promptly confirmed by telephone confirmation thereof) as
follows:

                                 Navigation Technologies Corporation
                                 10400 W. Higgins Road
                                 Rosemont, IL 60018
                                 Tel:  (847) 699-7070
                                 Fax:  (847) 699-8057
                                 Attention:  General Counsel

Notices or demands authorized by this Agreement to be given or made by the
Company to the holder of any Warrant Certificate shall be in writing and shall
be deemed given or made on the third day following the date sent by first-class
mail, postage prepaid, addressed to such holder at the address of such holder as
shown on the registry books of the Company or, if the Warrant holder has
provided the Company with a facsimile transmission address, on the date sent by
facsimile transmission (provided that such facsimile transmission is promptly
confirmed by telephone confirmation thereof).

                                       15
<PAGE>

                  Section 20. Supplements and Amendments. The Company and the
Majority Warrant Holders may from time to time supplement or amend this
Agreement without the approval of any other holders of Warrant Certificates in
order to cure any ambiguity, to correct or supplement any provision contained
herein which may be defective or inconsistent with any other provisions herein,
or to make any other provisions with regard to matters or questions arising
hereunder which the Company and the Majority Warrant Holders may deem necessary
or desirable and which shall not adversely affect the interests of the holders
of Warrant Certificates.

                  (b) With the consent of the Majority Warrant Holders, the
Company and such holders may modify this Agreement for the purpose of adding any
provision to or changing in any manner or eliminating any of the provisions of
this Warrant Agreement or modifying in any manner the rights of the holders of
the Warrant Certificates; provided, however, that no modification of the terms
(including but not limited to the adjustments described in Section 9) upon which
the Warrants are exercisable or reducing the percentage required for consent to
modification of this Agreement may be made without the consent of the registered
holder of each outstanding Warrant affected thereby.

                  Section 21. Successors. All covenants and provisions of this
Agreement by or for the benefit of the Company or Philips shall bind and inure
to the benefit of their respective successors and assigns hereunder.

                  Section 22. Benefits of this Agreement. Nothing in this
Agreement shall be construed to give any Person other than the Company, Philips
and the registered holders of the Warrant Certificates any legal or equitable
right, remedy or claim under this Agreement; but this Agreement shall be for the
sole and exclusive benefit of the Company, Philips and the registered holders of
the Warrant Certificates.

                  Section 23. Governing Law; Submission to Jurisdiction;
Selection of Forum.

                  THIS AGREEMENT AND EACH WARRANT CERTIFICATE ISSUED HEREUNDER
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
NEW YORK, WITHOUT GIVING EFFECT TO ITS LAWS GOVERNING CONFLICTS OF LAW.

                  Each party hereto agrees that it shall bring any action or
proceeding in respect of any claim arising out of or related to this Agreement
or the transactions contained in or contemplated by this Agreement, whether in
tort or contract or at law or in equity, exclusively in the United States
District Court for the Southern District of New York or the Supreme Court of the
state of New York for the county of New York, and solely in connection with
claims arising under this Agreement or the transactions contained in or
contemplated by this Agreement (i) irrevocably submits to the exclusive
jurisdiction of such courts, (ii) waives any objection to laying venue in any
such action or proceeding in such courts, (iii) waives any objection that such
courts are an inconvenient forum or do not have jurisdiction over any party
hereto and (iv) agrees that service of process upon such party in any such
action or proceeding shall be effective if notice is given in accordance with
Section 18 of this Agreement.

                                       16
<PAGE>

                  Section 24. Counterparts. This Agreement may be executed in
counterparts and each of such counterparts shall for all purposes be deemed to
be an original, and all such counterparts shall together constitute but one and
the same instrument.

                  Section 25. Captions. The captions of the sections of this
Agreement have been inserted for convenience only and shall not control or
affect the meaning or construction of any of the provisions hereof.

                  IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be duly executed and their respective corporate seals to be
hereunto affixed and attested, all as of the day and year first above written.

                            PHILIPS MEDIA SERVICES B.V.

                            By    /s/ Samuel J. Rozel
                                  --------------------------------------
                            Name:   Samuel J. Rozel
                            Title:  Attorney In Fact

                            NAVIGATION TECHNOLOGIES CORPORATION

                            By    /s/ Ronald A. Brumback
                                  --------------------------------------
                            Name:   Ronald A. Brumback
                            Title:  President

                            By    /s/ Thomas A. Lerone
                                  --------------------------------------
                            Name:   Thomas A. Lerone
                            Title:  Vice President and
                                    Chief Financial Officer

                                       17<PAGE>

                                                                   Exhibit 10.1

                            STOCK PURCHASE AGREEMENT

                  This STOCK PURCHASE AGREEMENT (this "Agreement") is made as of
March 29, 2001, by and between NAVIGATION TECHNOLOGIES CORPORATION, a
corporation organized under the laws of Delaware (the "Company"); and PHILIPS
CONSUMER ELECTRONIC SERVICES B.V., a corporation organized under the laws of The
Netherlands (which, together with its Affiliates (other than the Company and its
controlled Affiliates) is herein referred to collectively as "Philips").

                  WHEREAS, the Company has determined that it is in the best
interests of the Company and its shareholders for Philips to make the further
investment in the Company provided for, and on the terms and conditions set
forth, in this Agreement;

                  WHEREAS, Philips desires to make such investment on such terms
and conditions;

                  NOW, THEREFORE, in consideration of the premises and the
mutual covenants and conditions herein contained, the Company and Philips hereby
agree as follows:

                                   SECTION 1
                      AUTHORIZATION AND SALE OF THE SHARES

                  1.1 Authorization of the Shares. The Company has, or before
each Closing Date (as defined below) will have, authorized the sale and issuance
of:

                  (a) shares of its Series A preferred stock, par value $.001
         per share (the "Series A Shares"), having the rights, restrictions,
         privileges and preferences as set forth in the Certificate of
         Designations of Series A Cumulative Convertible Preferred Stock of the
         Company (the "Series A Certificate of Designations") attached to this
         Agreement as Exhibit A, sufficient in number to meet the purposes of
         Section 1.2(a) and (b) below; and

                  (b) shares of its Series B preferred stock, par value $.001
         per share (the "Series B Shares" and, together with the Series A
         Shares, the "Shares"), having the rights, restrictions, privileges and
         preferences as set forth in the Certificate of Designations of Series B
         Cumulative Convertible Preferred Stock of the Company (the "Series B
         Certificate of Designations") attached to this Agreement as Exhibit B,
         sufficient in number to meet the purposes of Section 1.2(a) below.

<PAGE>

                  1.2 Sale of the Shares. Subject to the terms and conditions
hereof and in reliance upon the representations, warranties and agreements
contained herein, the Company agrees to issue and sell to Philips, and Philips
agrees to purchase from the Company:

                  (a) on the date hereof (the "Initial Closing Date"),
         2,405,968.805 Series A Shares at a purchase price of $10 per Series A
         Share for an aggregate purchase price of $24,059,688.05, and
         42,600,002.533 Series B Shares at a purchase price of $10 per Series B
         Share for an aggregate purchase price of $426,000,025.33;

                  (b) on each date prior to the Termination Date that is
         designated as such in a Call Notice given by the Company pursuant to
         Section 1.4 (each such date, a "Subsequent Closing Date"; each of the
         Initial Closing Date and the Subsequent Closing Dates being a "Closing
         Date"), such number of Series A Shares as are so designated in such
         Call Notice at a purchase price of $10 per Series A Share; provided
         that the aggregate purchase price of such Series A Shares the subject
         of any one Call Notice shall not exceed the Company's Expected Monthly
         Shortfall for the calendar month immediately following the month in
         which such Call Notice is delivered; provided further that the
         aggregate purchase price for all Series A Shares issued and sold by the
         Company pursuant to this Agreement (including the Series A Shares
         issued and sold by the Company on the Initial Closing Date) shall not
         exceed the Maximum Amount.

                  1.3 Delivery. On each Closing Date, the Company shall deliver
to Philips a certificate representing the Shares purchased on such date,
registered in the name of Philips, and Philips shall make payment of the
purchase price for such Shares in the manner set forth below:

                  1. On the Initial Closing Date, for the Series A Shares
purchased on such date:

                     (i)  $16,959,688.05 by cancellation of those certain
                  demand promissory notes dated January 19, 2001, January 26,
                  2001, March 1, 2001 and March 22, 2001, in the stated
                  principal amounts of $4,300,000, $7,300,000, $3,000,000 and
                  $2,000,000, respectively, plus all accrued and capitalized
                  interest thereon and all accrued but not yet capitalized
                  interest thereon through the date hereof, payable to Philips
                  by the Company (the "Demand Promissory Notes");

                     (ii) the balance of $7,100,000, by wire transfer of
                  federal or other immediately available funds, or such other
                  form of payment as shall be mutually agreed upon by Philips
                  and the Company.

<PAGE>

                  (b) On the Initial Closing Date, for the Series B Shares
         purchased on such date, $426,000,025.33, by return and endorsement in
         favor of the Company of any and all outstanding promissory notes issued
         by the Company under a certain Amended and Restated Master Loan
         Agreement, by and between the Company and Philips, dated as of April 1,
         1997 (the "Master Loan Agreement"), in the aggregate stated principal
         amount of $298,300,000, plus all accrued and capitalized interest
         thereon and all accrued but not yet capitalized interest thereon
         through the date hereof (the "Promissory Notes").

                  (c) On any Subsequent Closing Date, for the Series A Shares
         purchased by Philips on such date, an amount equal to the number of
         such Series A Shares multiplied by the purchase price per share of $10,
         by wire transfer of federal or other immediately available funds, or
         such other form of payment as shall be mutually agreed upon by Philips
         and the Company.

                  1.4. Call Notices. After the Initial Closing Date, but before
the Termination Date, the Company may require Philips to purchase additional
Series A Shares for an aggregate purchase price up to the Maximum Amount by
delivering to Philips a Call Notice not less than ten days prior to the relevant
Subsequent Closing Date therefor; provided that only one Call Notice may be
delivered during any calendar month. Each Call Notices shall be in the minimum
aggregate amount of $1,000,000. In addition to setting forth the number of
Series A Shares the Company is requiring Philips to purchase, each Call Notice
shall set forth the details of the calculation pursuant to Section 1.2(b) above
by which such number of Series A Shares was determined and such calculation
shall be certified as accurate by the Chief Financial Officer of the Company.

                                   SECTION 2
                  REPRESENTATIONS AND WARRANTIES OF THE COMPANY

                  The Company hereby represents and warrants to Philips as
follows:

                  2.1. Organization, Good Standing and Qualification. The
Company is a corporation duly organized, validly existing and in good standing
under the laws of the State of Delaware and has all requisite corporate power to
own the properties owned by it and to conduct business as now conducted and as
proposed to be conducted in the future. The Company is duly qualified to
transact business and is in good standing in each jurisdiction in which the
failure to so qualify would have a Material Adverse Effect. Attached hereto as
Exhibits C and D, respectively, are true, complete and correct copies of the
Company's Amended and Restated Certificate of Incorporation (the "Restated
Certificate"), as amended and restated prior to the date hereof in accordance
with the second paragraph of Section 4.1(c) of this Agreement and as in effect
on the Initial Closing Date, and the Company's Bylaws ("Bylaws"), as in effect
on the Initial Closing Date.

<PAGE>

                  2.2 Corporate Power. The Company has all requisite corporate
power (i) to enter into this Agreement, the Registration Rights Agreement and
all other documents, agreements and instruments to be executed by the Company
and delivered to Philips in connection with this Agreement and the performance
by the Company of its obligations hereunder, (ii) to issue, sell and deliver the
Shares, and (iii) to carry out and perform its obligations under the terms of
this Agreement.

                  2.3 Authorization. All corporate action on the part of the
Company, its directors and its stockholders necessary (i) for the authorization,
execution, delivery and performance by the Company of this Agreement and the
Registration Rights Agreement, (ii) for the authorization, issuance and delivery
of the Shares, and (iii) for the performance of all obligations of the Company
hereunder has been taken. This Agreement and the Registration Rights Agreement
constitute the valid and binding obligation of the Company, enforceable in
accordance with its terms, subject to applicable bankruptcy, insolvency,
reorganization and moratorium laws and other laws of general application
affecting enforcement of creditors' rights and remedies generally and rules of
law governing specific performance, injunctive relief and other equitable
remedies.

                  2.4 No Conflict. The execution, delivery and performance by
the Company of this Agreement and the Registration Rights Agreement, and the
issuance, sale and delivery of the Shares will not result in any material
violation of, and will not materially conflict with, or result in a material
breach of any of the material terms of, or constitute a material default under,
any provision of state or Federal law to which the Company is subject, the
Restated Certificate or Bylaws or any material mortgage, indenture, agreement,
instrument, judgment, decree, order, rule or regulation or other restriction to
which the Company is a party or by which it is bound.

                  2.5 No Waivers. No stockholder other than Philips has any
preemptive rights or rights of first refusal granted by the Company or pursuant
to applicable law by reason of the issuance of the Shares, which rights have not
been duly and validly exercised or waived.

                  2.6 Valid Issuance of the Shares. Upon payment by Philips of
the purchase price thereof, the Shares will be validly issued, fully paid and
nonassessable, and are free of any liens or encumbrances; provided, however,
that the Shares may be subject to restrictions on transfer under state and
Federal securities laws.

                  2.7 Capitalization. As of the Initial Closing Date, the
Company's authorized capital stock consists of 1,600,000,000 shares of common
stock, par value $.001 per share (the "Common Stock"), and 50,000,000 shares of
preferred stock, par value $.001 per share, including 5,000,000 authorized
Series A Shares and 45,000,000 authorized Series B Shares. Immediately prior to
the date hereof, (x) 398,108,963 shares of Common Stock were issued and
outstanding, (y) no Series A Shares were issued and outstanding, and (z) no
Series B Shares were issued and outstanding. All issued and outstanding shares
of the Company's capital stock have been and shall be duly authorized

<PAGE>

and validly issued, fully paid and nonassessable, and offered, issued, sold and
delivered by the Company in compliance with applicable Federal and state
securities laws. As of the Initial Closing Date, there are no outstanding
preemptive, conversion or other rights, options, warrants or agreements, granted
or issued by or binding upon the Company for the purchase or acquisition of any
shares of its capital stock, except as set forth in the Bylaws or the Restated
Certificate, as granted to Philips hereunder or as otherwise disclosed on the
Schedule of Exceptions. To the Company's Knowledge, there are no voting trusts
or any other agreements or understandings with respect to the voting of any
shares of Common Stock other than those so created pursuant to the Restated
Certificate or those to which Philips is a party, if any, or as set forth on the
Schedule of Exceptions. The Company holds no shares of its capital stock in its
treasury.

                  2.8 Subsidiaries. Each of the subsidiaries of the Company
(each, a "Subsidiary") is an entity duly organized and existing under the laws
of its jurisdiction of organization and is in good standing under such laws. All
of the issued shares of, or other interests in, capital stock or of each
Subsidiary have been duly and validly authorized and issued, are fully paid and
nonassessable and are owned by the Company, free and clear of all liens,
encumbrances, equities or claims. There are no outstanding preemptive,
conversion or other rights, options, warrants or agreements granted or issued by
or binding upon each Subsidiary for the purchase or acquisition of any shares
of, or other interests in, the Subsidiary's capital stock.

                  2.9 Financial Condition. The Company has delivered on or prior
to the Initial Closing Date, or will deliver promptly thereafter, its financial
statements to Philips, consisting of audited consolidated balance sheets and the
related consolidated statements of operations, shareholders' equity (deficit)
and cash flows as of and for the year ended on December 31, 1999, as well as the
unaudited consolidated balance sheets and the related consolidated statements of
operations, shareholders' equity (deficit) and cash flows as of and for the year
ended on December 31, 2000 (the "Financial Statements"). The Financial
Statements present fairly in all material respects the financial position and
results of operations of the Company at the dates and for the periods to which
they relate, have been prepared in accordance with generally accepted accounting
principles consistently followed throughout the period involved and show all
material liabilities, absolute or contingent, of the Company required to be
recorded thereon in accordance with generally accepted accounting principles as
at the respective dates thereof. There are no material liabilities (whether
known or unknown, direct or indirect, fixed or contingent, and of any nature
whatsoever) of the Company or any Subsidiary as of the date of such Financial
Statements that are required to be set forth in such Financial Statements and
are not reflected therein or otherwise disclosed in the Schedule of Exceptions.
Since December 31, 2000, there has been no development or event which has had or
could be reasonably expected to have a Material Adverse Effect.

                  2.10 Taxes. The Company has filed or caused to be filed all
tax returns that are required to be filed and paid all material taxes that are
required to be shown to be due and payable on said returns or on any assessment
made against it or any of its

<PAGE>

property and all other taxes, assessments, fees, liabilities, penalties or other
charges imposed on it or any of its property by any governmental authority,
except for any taxes, assessments, fees, liabilities, penalties or other charges
which are being contested in good faith and (unless the amount thereof is not
material to the Company's consolidated financial condition) for which adequate
reserves have been established in accordance with GAAP.

                  2.11. Adverse Contracts. Except as set forth on the Schedule
of Exceptions, the Company is not a party to, nor is it or any of its property
subject to or bound by, any agreement or instrument which restricts its ability
to conduct its business and could reasonably be expected, individually or in the
aggregate, to have a Material Adverse Effect.

                  2.12. Insurance. To the Company's Knowledge, all of the
properties and operations of the Company and each Subsidiary of a character
usually insured by companies of established reputation engaged in the same or a
similar business similarly situated are reasonably insured (after taking into
account the current operations and financial condition of the Company and its
Subsidiaries) by financially sound and reputable insurers, against loss or
damage of the kinds and in amounts customarily insured against by such Persons.

                  2.13. Litigation. There are no proceedings or investigations
now pending or, to the Company's Knowledge, threatened before any court or
arbitrator or before or by any governmental authority which, individually or in
the aggregate, if determined adversely to the interests of the Company or any
subsidiary, could reasonably be expected to have a Material Adverse Effect.

                  2.14. Consents. No consent, approval, qualification, order or
authorization of, or filing with, any governmental authority is required in
connection with the Company's valid execution, delivery or performance of this
Agreement, or the offer, sale or issuance of the Shares by the Company, or the
consummation of any other transaction contemplated on the part of the Company
hereby, which has not been granted, given, made or waived prior to the Initial
Closing Date.

                  2.15. Title to Properties; Liens and Encumbrances. The Company
has licenses for, title to, or a valid leasehold interest in, all properties and
assets used in the business of the Company, except to the extent failure to have
such license, title or interest could not reasonably be expected to,
individually or in the aggregate, have a Material Adverse Effect.

                  2.16. Permits and Licenses. The Company has all
authorizations, consents, approvals, registrations, franchises, licenses and
permits, with or from governmental authorities and other persons as are
necessary for it to own its properties and conduct its business as now conducted
and the absence of which could reasonably be expected, individually or in the
aggregate, to have a Material Adverse Effect.

<PAGE>

                2.17 Issuance Taxes. All taxes imposed by law that have been
identified in writing by Philips to the Company in connection with the issuance,
sale and delivery of the Shares shall have been fully paid, and all laws
imposing such taxes shall have been fully complied with, prior to the Initial
Closing Date.

                2.18 Offering. Subject to the truth and accuracy of Philips's
representations set forth in this Agreement, the offer, sale and issuance of the
Shares as contemplated by this Agreement are exempt from the registration
requirements of the Securities Act, and from the registration or qualification
requirements of the laws of any applicable state or other jurisdiction, and
neither the Company nor any authorized agent acting on its behalf will take any
action hereafter that would cause the loss of such exemption.

                2.19 Registration Rights. Except as provided for in the
Registration Rights Agreement, as of the Initial Closing Date the Company is not
under any obligation to register any of its currently outstanding securities or
any of its securities which may hereafter be issued upon conversion, exchange or
exercise of any of its currently outstanding securities.

                2.20 Compliance with Other Instruments. The Company is not in
violation of any term of its Restated Certificate or Bylaws. The Company is not
in violation of any term of any mortgage, indenture, contract, agreement,
instrument, judgment, decree, order, statute, rule or regulation to which the
Company is subject and a violation of which could reasonably be expected to have
a Material Adverse Effect.

                2.21 Disclosure. This Agreement, the Registration Rights
Agreement, the Schedule of Exceptions, and the Financial Statements and notes
thereto, as well as any other document, certificate, schedule or written
statement furnished to Philips by or on behalf of the Company pursuant to
Section 4 in connection with the transactions contemplated hereby, do not
contain any untrue statement of a material fact and do not omit to state a
material fact necessary in order to make the statements contained therein or
herein not misleading in the light of the circumstances under which they were
made.

                                   SECTION 3
              REPRESENTATIONS, WARRANTIES AND COVENANTS OF PHILIPS

                  Philips represents and warrants to the Company as follows:

                 3.1 No Registration. Philips is acquiring the Shares for its
own account and not with the view to, or for resale in connection with, any
distribution thereof. Philips understands that the Shares have not been
registered under the Securities Act of 1933, as amended (the "Securities Act,"
which term shall include any successor federal statute) and that the Shares may
be resold only pursuant to an effective registration statement under the
Securities Act or an exemption from registration.

<PAGE>

                  3.2 Restrictive Legend. Each certificate representing the
Shares and or any other securities issued in respect of the Shares upon any
stock split, stock dividend, recapitalization, merger, consolidation or similar
event, shall (unless otherwise permitted or unless the securities evidenced by
such certificate shall have been registered under the Securities Act) be stamped
or otherwise imprinted with a legend in the following form (in addition to any
legend required under applicable state securities laws):

                  THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
                  ACT OF 1933 OR ANY STATE SECURITIES LAWS. THEY MAY NOT BE SOLD
                  OR OFFERED FOR SALE IN THE ABSENCE OF AN EFFECTIVE
                  REGISTRATION STATEMENT AS TO THE SECURITIES UNDER SAID ACT AND
                  ANY APPLICABLE STATE SECURITIES LAW OR AN OPINION OF COUNSEL
                  REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION
                  IS NOT REQUIRED.

                  3.3 Further Assurances. In connection with any registration of
shares of Common Stock or other equity securities of the Company for the account
of the Company (other than under Section 3 of the Registration Rights
Agreement), Philips agrees to execute all letters, agreements or other documents
requested by the Company or its underwriters with terms that are customary in
similar types of transactions and under similar circumstances (including without
limitation lock-up undertakings), but always subject to agreement between
Philips and the underwriters at that time.

                                   SECTION 4.
                        CONDITIONS TO CLOSING OF PHILIPS

                  4.1 Conditions to the Initial Closing. The obligation of
Philips to purchase the Shares to be purchased on the Initial Closing Date is
subject to the fulfillment or waiver of each of the following conditions on or
prior to the Initial Closing Date:

                  (a) Representations and Warranties Correct. The
         representations and warranties made by the Company in Section 2 hereof
         shall be true and correct in all material respects at and as of the
         Initial Closing Date, except to the extent such representations and
         warranties expressly relate to an earlier date (in which case such
         representations and warranties shall be true and correct in all
         material respects on and as of such earlier date).

                  (b) Performance. All covenants, agreements and conditions
         contained in this Agreement to be performed or complied with by the
         Company on or prior

<PAGE>

         to the Initial Closing Date shall have been performed or complied with
         in all material respects.

                  (c) Amendment to the Certificate of Incorporation. Prior to
         the Initial Closing Date and subsequent to the filings, if any, and the
         expiration of the waiting period, if any, under Section 4.1(f), the
         Certificate of Incorporation of the Company shall have been amended and
         restated by filing an Amended and Restated Certificate of Incorporation
         in a form reasonably acceptable to Philips, and Philips shall have
         received a copy of such Amended and Restated Certificate of
         Incorporation, certified by the Secretary of State of the State of
         Delaware.

                  (d) Legal Opinion. Philips shall have received from Kirkland
         & Ellis, an opinion addressed to Philips, dated the Initial Closing
         Date, and in the form set forth in Exhibit E.

                  (e) Shareholder Approval. Prior to the Initial Closing Date,
         the transactions contemplated hereby shall have been approved, either
         by written consent or in a duly convened shareholders meeting, by
         shareholders of the Company representing a majority of the outstanding
         voting securities of the Company, which majority shall include the
         affirmative vote of Mr. T. Russell Shields and members of the Shields
         Group representing a majority of the outstanding voting securities of
         the Company held by the Shields Group as of the date hereof.

                  (f) HSR Approval. Prior to the Initial Closing Date, unless
         Philips and the Company shall conclude that no such filings are
         necessary, Philips and the Company shall have filed all documentary
         materials required by, or deemed by Philips and the Company to be
         necessary under, the Hart-Scott-Rodino Antitrust Improvements Act of
         1976, as amended (the "HSR Act"), including any notification and report
         form required under the HSR Act, with respect to the purchase of Shares
         by Philips, and the waiting period required by the HSR Act, including
         any extensions thereof obtained by request or other action of the
         Federal Trade Commission ("FTC") or the Antitrust Division of the
         Department of Justice (the "Antitrust Division") shall have expired or
         been earlier terminated by the FTC or the Antitrust Division.

                  (g) Other Consents and Approvals. All other material consents,
         approvals and authorizations and all material filings with and
         notifications of governmental authorities and regulatory agencies or
         other entities which regulate the business of the Company or Philips,
         necessary on the part of the Company or Philips or their respective
         Affiliates for the execution and delivery of this Agreement and the
         transactions contemplated hereby, shall have been obtained or effected.

<PAGE>

                  (h) Legal Investment.  The purchase of the Shares to
         be purchased by Philips shall be legally permitted by all laws and
         regulations to which Philips and the Company are subject.

                  (i) Securities Law Compliance. All actions and steps necessary
         to assure compliance with applicable Federal and state securities laws,
         including all authorizations, approvals or permits, if any, of any
         governmental authority or regulatory body in any states where the
         Shares are being sold that are required in connection with the lawful
         issuance and sale of the Shares pursuant to this Agreement, shall have
         been duly obtained and shall be effective on and as of the Initial
         Closing Date except for any such filings as may under applicable law be
         made subsequent to the Initial Closing Date, which such filings the
         Company agrees it will make in a timely manner thereafter.

                  (j) Compliance Certificate. The Company shall have delivered
         to Philips a certificate of the Chief Executive Officer of the Company,
         dated as of the Initial Closing Date, certifying to the fulfillment of
         the conditions specified in Section 4.1(a) and 4.1(b) of this Agreement
         and that there has been no Material Adverse Effect in the business or
         prospects of the Company since the date of the Financial Statements.

                  (k) Accounting Advice. KPMG, LLP shall have advised Philips in
         writing, in a form reasonably satisfactory to Philips, that, under
         United States generally accepted accounting principles ("US GAAP") as
         in effect as of the Initial Closing Date, (i) the full amount of
         consideration received by the Company for the Shares to be sold to
         Philips on the Initial Closing Date should be accounted for as equity
         in the consolidated balance sheet and related statement of
         shareholders' equity (deficit) of the Company and (ii) no portion of
         the consideration paid by Philips for such Shares is required to be
         deducted currently from the carrying value of Philips' investment in
         the Company on the balance sheet of Philips or reflected as a current
         loss in the related statement of operations of Philips.

                  (l) Registration Rights Agreement. The execution and delivery
         of all parties thereto of a Registration Rights Agreement in the form
         attached hereto as Exhibit F (the "Registration Rights Agreement"),
         shall have occurred prior to or simultaneously with the execution and
         delivery of this Agreement.

                  (m) Proceedings and Documents. All corporate and other
         proceedings in connection with the transactions contemplated hereby and
         all documents and instruments incident to such transactions shall be
         reasonably satisfactory in substance and form to Philips.

                 4.2  Conditions to the Subsequent Closings. The obligation of
Philips to purchase the Shares to be purchased on any Subsequent Closing Date is
subject to the

<PAGE>

fulfillment or waiver of each of the following conditions on or prior to the
relevant Subsequent Closing Date:

                  (a) Call Notice. Philips shall have received a Call
         Notice in the form and manner set forth herein for such requests.

                  (b) Representations and Warranties Correct. The
         representations and warranties made by the Company in Section 2 hereof
         shall have been true in all material respects when made (except to the
         extent such representations and warranties expressly relate to an
         earlier date, in which case such representations and warranties shall
         have been true and correct in all material respects on and as of such
         earlier date) and shall be true and correct in all material respects as
         though such representations and warranties had been made as of the
         Subsequent Closing Date (except to the extent such representations and
         warranties expressly relate to an earlier date, in which case such
         representations and warranties shall have been true and correct in all
         material respects on and as of such earlier date).

                  (c) Performance. All covenants, agreements and conditions
         contained in this Agreement to be performed or complied with by the
         Company on or prior to the relevant Subsequent Closing Date shall have
         been performed or complied with in all material respects.

                  (d) Material Adverse Effect. Since the Initial Closing Date,
         there shall have been no development or event which shall have had
         or could be reasonably expected to have a Material Adverse Effect.

                  (e) Legal Investment.  The purchase of the Shares to be
         purchased by Philips shall be legally permitted by all laws and
         regulations to which Philips and the Company are subject.

                  (f) Securities Law Compliance. All actions and steps necessary
         to assure compliance with applicable Federal and state securities laws,
         including all authorizations, approvals or permits, if any, of any
         governmental authority or regulatory body in any states where the
         Shares are being sold that are required in connection with the lawful
         issuance and sale of the Shares pursuant to this Agreement, shall have
         been duly obtained and shall be effective on and as of the relevant
         Subsequent Closing Date except for any such filings as may under
         applicable law be made subsequent to such Subsequent Closing Date,
         which such filings the Company agrees it will make in a timely manner
         thereafter.

                  (g) HSR Approval. Prior to the relevant Subsequent Closing
         Date, unless Philips and the Company shall conclude that no such
         filings are necessary, Philips and the Company shall have filed all
         documentary materials required by, or deemed by Philips and the Company
         to be necessary under, the HSR Act, including any notification and
         report form required under the HSR Act, with

<PAGE>

         respect to the purchase of Shares by Philips, and the waiting period
         required by the HSR Act, including any extensions thereof obtained by
         request or other action of the FTC or the Antitrust Division shall have
         expired or been earlier terminated by the FTC or the Antitrust
         Division.

                  (h) Compliance Certificate. The Company shall have delivered
         to Philips a certificate of the Chief Executive Officer of the Company,
         dated as of the relevant Subsequent Closing Date, certifying to the
         fulfillment of the conditions specified in Section 4.2(b), 4.2(c) and
         4.2(d) of this Agreement.

                  (i) Accounting Advice. KPMG, LLP shall have advised Philips in
         writing, in a form reasonably satisfactory to Philips, that, under US
         GAAP as in effect as of the relevant Subsequent Closing Date, (i) the
         full amount of consideration received by the Company for the Shares to
         be sold to Philips on such Subsequent Closing Date should be accounted
         for as equity in the consolidated balance sheet and related statement
         of shareholders' equity (deficit) of the Company and (ii) no portion of
         the consideration paid by Philips for such Shares is required to be
         deducted currently from the carrying value of Philips' investment in
         the Company on the balance sheet of Philips or reflected as a current
         loss in the related statement of operations of Philips.

                                   SECTION 5
                        CONDITIONS TO CLOSING OF COMPANY

                  The Company's obligation to sell the Shares to be purchased is
subject to the fulfillment or waiver of each of the following conditions on or
prior to any Closing Date:

                  5.1 Representations. The representations made by Philips
pursuant to Section 3 hereof shall be true and correct in all respects at and as
of each Closing Date as if made at and as of such date (except to the extent
such representations and warranties expressly relate to an earlier date, in
which case such representations and warranties shall have been true and correct
in all material respects on and as of such earlier date).

                  5.2 Legal Investment. The purchase of the Shares to be
purchased by Philips hereunder shall be legally permitted by all laws and
regulations to which Philips and the Company are subject.

                  5.3 Securities Law Compliance. All actions and steps necessary
to assure compliance with applicable Federal and state securities laws,
including all authorizations, approvals or permits, if any, of any governmental
authority or regulatory body in any state where the Shares are being sold that
are required in connection with the lawful issuance and sale of the Shares
pursuant to this Agreement shall have been duly obtained and shall be effective
on and as of the relevant Closing Date except for any such

<PAGE>

filings as may under applicable law be made subsequent to such Closing Date,
which such filings the Company agrees it will make in a timely manner
thereafter.

                                   SECTION 6
                            COVENANTS OF THE COMPANY

                  The Company hereby covenants and agrees as follows:

                  6.1 Basic Financial Information. The Company will furnish the
following reports to Philips:

                  (a) Subject to Section 6.1(d) below, as soon as practicable
         after the end of each fiscal year of the Company, a consolidated
         balance sheet of the Company and its subsidiaries, if any, as at the
         end of such fiscal year, and consolidated statements of operations,
         shareholders' equity (deficit) and cash flows of the Company and its
         subsidiaries, if any, for such year, prepared in accordance with
         generally accepted accounting principles consistently applied and
         setting forth in each case in comparative form the figures for the
         previous fiscal year, all in reasonable detail and certified by
         independent public accountants of recognized national standing selected
         by the Company, and a Company prepared comparison to budget.

                  (b) Subject to Section 6.1(d) below, as soon as practicable
         after the end of the first, second and third quarterly accounting
         periods in each fiscal year of the Company, a consolidated balance
         sheet of the Company and its subsidiaries, if any, as of the end of
         each such quarterly period, and consolidated statements of operations
         and related statements of cash flows of the Company and its
         subsidiaries for such period and for the current fiscal year to date,
         prepared in accordance with generally accepted accounting principles
         consistently applied and setting forth in comparative form the figures
         in the current budget, subject to changes resulting from year-end audit
         adjustments, all in reasonable detail and certified by the principal
         financial or accounting officer of the Company, except that such
         financial statements will not contain the notes normally required by
         generally accepted accounting principles.

                  (c) From the date the Company becomes subject to the reporting
         requirements of the Securities Exchange Act of 1934, as amended (the
         "Exchange Act," which shall include any successor Federal statute), and
         in lieu of the financial information required pursuant to Sections
         6.1(a) and (b), upon request by Philips, copies of its annual reports
         on Form 10-K and its quarterly reports on Form 10-Q, respectively.

                  (d) The Company agrees to use its reasonable best efforts
         to deliver the financial information described in Sections 6.1(a)
         and (b) above within the time

<PAGE>

         periods requested by Philips, which information, for purposes of this
         Section 6.1(d) may include estimates, provided that such estimates are
         subsequently corrected by the Company as soon as practicable. The
         Company and Philips each agree to appoint appropriate representatives
         to discuss in good faith the development of accounting and financial
         reporting procedures and time schedules that will ensure that the
         Company will provide the financial information described in Sections
         6.1(a) and (b) above to Philips in a timely manner that will enable
         Koninklijke Philips Electronics N.V., a company organized under the
         laws of The Netherlands and an indirect holder of all of the
         outstanding common stock of Philips ("Philips Parent"), timely to
         incorporate the Company's financial information in Philips Parent's
         consolidated accounts in accordance with its accounting procedures and
         time schedule. The Company and Philips each further agree to use its
         reasonable best efforts to implement such accounting and financial
         reporting procedures and time schedules as soon as practicable after
         the date hereof, but in no event later than December 31, 2001.

                  6.2 Additional Information.

                  (a) The Company will permit Philips (or a representative of
         Philips) to visit and inspect any of the properties of the Company,
         including its books of account and other records, and to discuss its
         affairs, finances and accounts with the Company's officers and its
         independent public accountants, all at such reasonable times and as
         often as any such person may reasonably request.

                  (b) Subject to Section 6.2(c), until the earlier to occur of
         (i) the date on which the Company is subject to the reporting
         requirements of Sections 13(a) or 15(d) of the Exchange Act, or (ii)
         the date on which quotations for the Common Stock of the Company are
         reported by the automated quotations systems operated by the National
         Association of Securities Dealers, Inc., or by an equivalent quotations
         system, the Company will deliver the reports described below in this
         Section 6.2 to Philips:

                      (i)  As soon as practical after the end of each
                  month, a consolidated balance sheet of the Company and its
                  subsidiaries, if any, as at the end of such month and
                  consolidated statements of operations of the Company and its
                  subsidiaries, for each month and for the current fiscal year
                  of the Company to date, all subject to customary year-end
                  audit adjustments, prepared in accordance with generally
                  accepted accounting principles consistently applied and
                  certified by the principal financial or accounting officer of
                  the Company.

                      (ii) As soon as available (but in any event not
                  later than sixty (60) days after the commencement of each
                  fiscal year of the Company) the business plan of the Company,
                  in such manner and form as approved by the Board of Directors
                  of the Company, which business plan shall include

<PAGE>

                  a projection of operations and cash flows for such fiscal year
                  and a projected balance sheet as of the end of such fiscal
                  year. Any material changes in such business plan shall be
                  submitted as promptly as practicable after such changes have
                  been approved by the Board of Directors of the Company.

                      (iii) With reasonable promptness, such other
                  information and data with respect to the Company and its
                  Subsidiaries as Philips may from time to time reasonably
                  request.

                  (c) The Company agrees to use its reasonable best efforts to
         deliver the financial information described in Sections 6.2(b) above
         within the time period requested by Philips, which information, for
         purposes of this Section 6.2(c) may include estimates, provided that
         such estimates are subsequently corrected by the Company as soon as
         practicable. The Company and Philips each agree to appoint appropriate
         representatives to discuss in good faith the development of accounting
         and financial reporting procedures and time schedules that will ensure
         that the Company will provide the financial information described in
         Section 6.2(b) above to Philips in a timely manner that will enable
         Philips Parent timely to incorporate the Company's financial
         information in Philips Parent's consolidated accounts in accordance
         with its accounting procedures and time schedule. The Company and
         Philips each further agree to use its reasonable best efforts to
         implement such accounting and financial reporting procedures and time
         schedules as soon as practicable after the date hereof, but in no event
         later than December 31, 2001.

                  (d) The provisions of Section 6.1 and this Section 6.2 shall
         not be in limitation of any rights which Philips may have with respect
         to the books and records of the Company and its subsidiaries, or to
         inspect their properties or discuss their affairs, finances and
         accounts, under the laws of the jurisdictions in which they are
         incorporated.

                  6.3 Prompt Payment of Taxes, etc. The Company will promptly
pay and discharge, or cause to be paid and discharged, when due and payable, all
lawful taxes, assessments and governmental charges or levies imposed upon the
income, profits, property or business of the Company or any subsidiary;
provided, however, that any such tax, assessment, charge or levy need not be
paid if the validity thereof shall currently be contested in good faith by
appropriate proceedings and if the Company shall have set aside on its books
adequate reserves with respect thereto, and provided, further, that the Company
will pay all such taxes, assessments, charges or levies forthwith upon the
commencement of proceedings to foreclose any lien which may have attached as
security therefor. The Company will promptly pay, or cause to be paid, when due,
or in conformance with customary trade terms or otherwise in accordance with
policies related thereto adopted by the Company's Board of Directors, all other
indebtedness incident to operations of the Company.

<PAGE>

                  6.4 Maintenance of Properties and Leases. The Company will
keep its properties and those of its subsidiaries in good repair, working order
and condition, reasonable wear and tear excepted, and from time to time make all
needful and proper repairs, renewals, replacements, additions and improvements
thereto; and the Company and its subsidiaries will at all times comply with each
material provision of all leases to which any of them is a party or under which
any of them occupies property if the breach of such provision might have a
material and adverse effect on the condition, financial or otherwise, or
operations of the Company.

                  6.5 Insurance. The Company will keep its assets and those of
its subsidiaries which are of a character to the Company's Knowledge usually
insured by companies of established reputation engaged in the same or a similar
business similarly situated reasonably insured (after taking into account the
then current operations and financial condition of the Company and its
Subsidiaries) by to the Company's Knowledge financially sound and reputable
insurers, against loss or damage of the kinds and in amounts customarily insured
against by such Persons.

                  6.6 Accounts and Records. The Company will keep true records
and books of account in which full, true and correct entries will be made of all
dealings or transactions in relation to its business and affairs in accordance
with generally accepted accounting principles applied on a consistent basis.

                  6.7 Independent Accountants. In the event the services of
KPMG, LLP, or any firm of independent public accountants hereafter employed by
the Company, are terminated, the Company will promptly thereafter notify Philips
and will request the firm of independent public accountants whose services are
terminated to deliver to Philips a letter from such firm setting forth the
reasons for the termination of their services. In the event of such termination,
the Company will promptly thereafter engage another firm of independent public
accountants of recognized national standing. In its notice to Philips the
Company shall state whether the change of accountants was recommended or
approved by the Board of Directors of the Company or any committee thereof.

                  6.8 Compliance with Requirements of Governmental Authorities.
The Company and all its subsidiaries shall duly observe and conform to all valid
requirements of governmental authorities relating to the conduct of their
businesses or to their properties or assets.

                  6.9 Maintenance of Corporate Existence, etc. The Company shall
maintain in full force and effect its corporate existence, rights and franchises
and all licenses and other rights in or to use patents, processes, licenses,
trademarks, trade names or copyrights owned or possessed by it or any subsidiary
and deemed by the Company to be necessary to the conduct of its business
without, to the Company's Knowledge, any conflict with any interest in or rights
of others to use such patents, processes, licenses, trademarks, trade names or
copyrights.

<PAGE>

                  6.10 Availability of Stock for Conversion. The Company will,
from time to time, in accordance with the laws of the State of Delaware,
increase the authorized amount of Common Stock if at any time the number of
shares of Common Stock remaining unissued and available for issuance shall be
insufficient to permit conversion of all the then outstanding convertible
Preferred Stock held by Philips.

                  6.11 Incentive Stock Agreements. The Company will not, without
the approval of the Board of Directors, issue any of its capital stock, or grant
an option or right to subscribe for, purchase or acquire any of its capital
stock, to any employee, former employee, founder, consultant, officer, supplier,
customer or director of the Company or a subsidiary except for the issuance
hereafter of up to the number of shares of Common Stock that represent 15% of
the outstanding capital stock of the Company on a fully diluted and converted
basis pursuant to a stock option plan, stock purchase plan or other arrangement,
hereafter or heretofore, adopted by the Board of Directors.

                  6.12 Indebtedness, Restricted Payments, Etc.. The Company
shall not, without Philips' prior consent:

                  (a)  Create, incur, assume or suffer to exist any
         Indebtedness, except (i) Indebtedness secured by Permitted
         Encumbrances; (ii) at any time after October 1, 2001, Indebtedness of
         the Company, not to exceed a balance outstanding at any time of the
         greater of $15,000,000 or the average balance of the Company's trade
         receivables for the two-month period prior to any such time, under a
         revolving credit facility entered into by the Company for the exclusive
         purpose of financing its working capital needs; provided, however, that
         the Company may only enter into such revolving credit facility for an
         amount and to the extent that the Board of Directors shall determine
         would not delay, defer or otherwise hinder the timing of an initial
         public offering of Common Stock of the Company; and (iii) Indebtedness
         of the Company, not to exceed a balance of $15,000,000 outstanding at
         any time, under Capital Leases entered into by the Company with respect
         to information technology equipment and secured on a nonrecourse basis
         by such information technology equipment. Notwithstanding the foregoing
         sentence of this Section 6.12(a), any Indebtedness to be created,
         incurred, assumed or suffered to exist by the Company pursuant to
         Section 6.12(a)(ii) or (iii) will not require Philips' prior consent
         only if such Indebtedness is specifically approved by a majority of the
         Board of Directors of the Company.

                  (b) Declare or make any Restricted Payment.

                  (c) Create, incur, assume or suffer to exist any Lien of any
         kind upon or in any of its property or assets, whether now owned or
         hereafter acquired, except Permitted Encumbrances or in connection with
         revolving credit facilities pursuant to Section 6.12(a) above.

<PAGE>

                  (d) Enter into any merger or consolidation or acquire assets
         of any Person, or sell, lease, or otherwise dispose of any of the
         Company's assets, except in the ordinary course of its business.

                  (e) Assume, guarantee, endorse, contingently agree to purchase
         or otherwise become liable upon the obligation of any other Person,
         except in the ordinary course of its business.

                  (f) Make any material Capital Expenditures, other than as
         provided for in a business plan and budget approved by the Board of
         Directors and in effect at the time of the expenditure.

                  (g) Sell, license or otherwise dispose of any part of the
         Database, except that the Company may grant licenses in the ordinary
         course of business.

                  (h) Purchase or acquire the obligations or stock of, or any
         other interest in, or make loans or advances to, any Person other than
         a wholly-owned subsidiary, except (i) direct obligations of the United
         States of America with a maturity not exceeding one year, (ii) time
         deposits, certificates of deposit, eurodollar time deposits, bankers
         acceptances or eurodollar certificates of deposits with a maturity not
         exceeding one year issued by a commercial bank having a combined
         capital and surplus of at least $500 million, chartered under the laws
         of the United States or one of the States thereof and a member of the
         Federal Reserve System, (iii) commercial paper with a minimum rating of
         A1/P1 or the equivalent thereof, (iv) repurchase agreements with member
         banks of the Federal Reserve System and primary dealers limited to
         United States government securities, provided that the market value of
         the securities used as collateral for such repurchase agreements must
         equal or exceed the principal and interest due under such repurchase
         agreements, (v) advances to suppliers made in the ordinary course of
         business, and (vi) acquisition of stock of other Persons in exchange
         for license fees that would otherwise be due to the Company.

                  (i) Except pursuant to existing contracts previously approved
         by Board of Directors, enter into any transactions with Affiliates
         other than on terms not less favorable to the Company than would
         reasonably be expected to be obtained on an arm's length basis.

                  6.13 Board Approval. Whenever this Agreement calls for or
refers to the consent or approval on any matter by Philips, such consent or
approval shall be deemed given by Philips if each of Philips' designees on the
Board of Directors has, in his or her capacity as a director of the Company,
given his or her consent or approval with respect to such matter at a duly
convened meeting of the Board of Directors or pursuant to an effective written
consent of the Board of Directors.

<PAGE>

                  6.14 Right of First Refusal. (a) The Company shall give
Philips notice in writing each time the Company proposes to offer or issue any
shares of Common Stock, or securities convertible into or exercisable for shares
of Common Stock, or any other rights, options, warrants or agreements for the
purchase or acquisition of shares of Common Stock, of the Company. Within thirty
(30) days of receiving such notice, Philips may agree to purchase all, but not
less than all, of such shares, securities or other rights at the same price as
such offer or issuance.

                  (b)  The right of first refusal set forth in paragraph (a)
         above shall not be applicable (i) to the issuance of shares, securities
         or other rights to employees, directors, or consultants pursuant to
         plans or agreements approved by the Board of Directors of the Company,
         (ii) to the issuance of shares of Common Stock pursuant to the
         conversion or exercise of convertible or exercisable securities or
         rights, or as a result of any reclassification, stock split or stock
         dividend, (iii) to the issuance of shares, securities or other rights
         in an initial public offering of securities of the Company, (iv) to the
         issuance of shares, securities or other rights in connection with a
         business acquisition of or by the Company, whether by merger,
         consolidation, sale of assets, sale or exchange of stock or otherwise
         that has been approved by the Board of Directors, or (v) to the
         issuance of shares, securities or other rights to strategic partners,
         licensors, financial institutions or lessors in connection with
         transactions approved by the Board of Directors of the Company and not
         primarily for equity-financing purposes, so long as no shareholder of
         the Company participates in such transaction.

                  6.15 Termination of Covenants. The covenants set forth in
Sections 6.3 through 6.12 shall terminate and be of no further force and effect
on the Termination Date, or earlier if for any reason Philips ceases to hold at
least 50% of the Shares issued to it hereunder. The right set forth in Section
6.14 shall terminate and be of no further force and effect on the Termination
Date.

                                   SECTION 7
                                  MISCELLANEOUS

                  7.1.   Governing Law. This Agreement shall be governed in all
respects by the laws of the State of New York.

                  7.2.   Survival. The representations, warranties, covenants
and agreements made herein shall survive the execution and delivery of this
Agreement and the issuance of the Shares.

                  7.3.   Successors and Assigns. Except as otherwise expressly
provided herein, the provisions hereof shall inure to the benefit of, and be
binding upon, the successors, assigns, heirs, executors and administrators of
the parties hereto.

<PAGE>

                  7.4 Entire Agreement; Amendment. This Agreement (including the
Schedules and Exhibits hereto) and the other documents delivered pursuant hereto
constitute the full and entire understanding and agreement between the parties
with regard to the subjects hereof and thereof. Neither this Agreement nor any
term hereof may be amended, waived, discharged or terminated, except by a
written instrument signed by all parties hereto.

                  7.5 Notices, etc. All notices and other communications
required or permitted hereunder shall be in writing and shall be mailed by
certified or registered mail, postage prepaid, delivered either by hand or by
messenger, or transmitted by electronic telecopy (fax) addressed:

                  If to Philips, at:

                     Philips Consumer Electronic Services B.V.
                     c/o Philips Electronics North America Corp.
                     1251 Avenue of the Americas
                     New York, NY 10020
                     Telecopy:        (212) 536-0589
                     Attention:       General Counsel

                  If to the Company, at:

                     10400 W. Higgins Road, Suite 400
                     Rosemont, IL 60018
                     Telecopy:        (847) 699-8057
                     Attention:       General Counsel

or at such other address as either party shall have furnished to the other in
writing. All such notices and other written communications shall be effective
(i) if mailed, seven (7) days after mailing, (ii) if delivered, upon delivery,
or (iii) if faxed, within one business day after transmission.

                  7.6 Delays or Omissions. No delay or omission to exercise any
right, power or remedy accruing to either party hereto upon any breach or
default of the other party under this Agreement shall impair any such right,
power or remedy of such party nor shall it be construed to be a waiver of any
such breach or default, or any acquiescence therein, or of or in any similar
breach or default thereafter occurring; nor shall any waiver of any single
breach or default be deemed a waiver of any other breach or default theretofore
or thereafter occurring. Any waiver, permit, consent or approval of any kind or
character on the part of any party hereto of any breach or default under this
Agreement or any waiver on the part of any party hereto of any provisions or
conditions of this Agreement must be made in writing and shall be effective only
to the extent specifically set forth in such writing. All remedies, either under
this Agreement or by law or otherwise afforded to any party, shall be cumulative
and not alternative.

<PAGE>

                  7.7 Separability. In case any provision of the Agreement shall
be invalid, illegal or unenforceable, the validity, legality and enforceability
of the remaining provisions shall not in any way be affected or impaired
thereby.

                  7.8 Agent's Fees. (a) The Company hereby agrees to indemnify
and to hold Philips harmless of and from any liability for commission or
compensation in the nature of an agent's fee to any broker or other person or
firm (and the costs and expenses of defending against such liability or asserted
liability) arising from any act by the Company or any of its employees or
representatives.

                  (b) Philips (i) represents and warrants that it has retained
         no finder or broker in connection with the transactions contemplated by
         this Agreement and (ii) hereby agrees to indemnify and to hold the
         Company harmless from any liability for any commission or compensation
         in the nature of an agent's fee to any broker or other person or firm
         (and the costs and expenses of defending against such liability or
         asserted liability) for which Philips, or any of Philips' employees or
         representatives, are responsible.

                  7.9 Expenses. Each party shall pay all reasonable closing
costs and fees, including without limitation legal fees and expenses, incurred
on its behalf in connection with the execution of this Agreement and the
agreements entered into in connection with the transactions contemplated hereby.

                  7.10 Titles and Subtitles. The titles of the paragraphs and
subparagraphs of this Agreement are for convenience of reference only and are
not to be considered in construing this Agreement.

                  7.11 Definitions. (a) As used in this Agreement (including
Exhibits and Schedules), the following terms have the meanings set forth below:

                     "Affiliate" of any specified Person means any other
                  Person which, directly or indirectly, is in control of, is
                  controlled by, or is under common control with such specified
                  Person. For purposes of this definition, control of a Person
                  means the power, direct or indirect, to direct or cause the
                  direction of the management and policies of such Person
                  whether by contract or otherwise; and the terms "controlling"
                  and "controlled" have meanings correlative to the foregoing.

                     "Business Day" means each Monday, Tuesday, Wednesday,
                  Thursday or Friday on which banking institutions in New York,
                  New York, or Chicago, Illinois, are not authorized or
                  obligated by law, regulation or executive order to close.

                     "Call Notice" means each of the written notices
                  delivered by the Company to Philips from time to time setting
                  forth the number of Series A

<PAGE>

                  Shares to be sold by the Company and purchased by Philips and
                  such other information as required by Section 1.4.

                     "Capital Expenditures" means, for any period, the
                  aggregate of all expenditures (whether paid in cash or accrued
                  as liabilities but excluding that portion of Capital Leases
                  which is capitalized on the balance sheet of the Company) by
                  the Company during that period that are included in the
                  property, plant or equipment reflected in the balance sheet of
                  the Company.

                     "Capital Lease" means, with respect to any Person,
                  any obligation of such Person to pay rent or other amounts
                  under a lease with respect to any property (whether real,
                  personal or mixed) acquired or leased by such Person that is
                  required to be accounted for as a liability on a balance sheet
                  of such Person.

                     "Capital Lease Obligations" means the obligation of
                  any Person to pay rent or other amounts under a Capital Lease.

                     "Company's Knowledge" means the actual knowledge of
                  the Persons listed on the Knowledge Schedule.

                     "Database" means (i) the Company's navigable
                  database, as it may be updated or expanded from time to time,
                  which is a digital representation of road transportation
                  networks currently covering the United States and selected
                  European countries, and (ii) all software and tools used in
                  database creation, updating, modification, distribution, and
                  other operations of the Company related to such navigable
                  database either currently conducted or contemplated to be
                  conducted, including (a) tools for automated data capture from
                  machine-readable sources, including post office and public
                  domain government spatial data files; (b) comparison and
                  validation tools for merging data from multiple sources; (c)
                  verifica tion tools to validate connectivity and consistency;
                  (d) integration tools for merging new data into the database
                  structure; (e) statistical and reporting tools for extracting
                  information in human readable form; and (f) translation
                  software for generating versions of the database in a variety
                  of formats.

                     "Expected Monthly Shortfall" for any calendar month
                  means the amount by which (x) the Company's Operating Cash
                  Outflows (pursuant to the most recent business plan and budget
                  approved and as amended from time to time by the Company's
                  Board of Directors) projected for such calendar month by the
                  Company exceed (y) the sum of (i) expected cash receipts for
                  such month (pursuant to such business plan and budget)
                  excluding any amounts to be received from Philips as the
                  aggregate

<PAGE>

                  purchase price for any Series A Shares to be issued in such
                  calendar month, plus (ii) the expected balances in all of the
                  Company's bank accounts at the beginning of such month (net of
                  $5,000,000 of ordinary operating cash balances).

                     "Guarantee" by any Person means any obligation,
                  contingent or otherwise, of such Person guaranteeing or having
                  the economic effect of guaranteeing any Indebtedness of any
                  other Person (the "primary obligor") in any manner, whether
                  directly or indirectly, and including any obligation of such
                  Person, (i) to purchase or pay (or advance or supply funds for
                  the purchase or payment of) such Indebtedness or to purchase
                  (or to advance or supply funds for the purchase of) any
                  security for the payment of such Indebtedness, (ii) to
                  purchase property, securities or services for the purpose of
                  assuring the holder of such Indebtedness of the payment of
                  such Indebtedness, or (iii) to maintain working capital,
                  equity capital or other financial statement condition or
                  liquidity of the primary obligor so as to enable the primary
                  obligor to pay such Indebtedness (and "Guaranteed,"
                  "Guaranteeing" and "Guarantor" shall have meanings correlative
                  to the foregoing).

                     "Indebtedness" of any Person means, without
                  duplication, (a) all indebtedness of such Person for borrowed
                  money or for the deferred purchase price of property or
                  services (including all obligations, contingent or otherwise,
                  of such Person in connection with letter of credit facilities,
                  acceptance facilities, interest rate protection agreements or
                  other similar facilities, including currency swaps) other than
                  indebtedness to trade creditors and service providers incurred
                  in the ordinary course of business, (b) all obligations of
                  such Person evidenced by bonds, notes, debentures or other
                  similar instruments, (c) all indebtedness created or arising
                  under any conditional sale or other title retention agreement
                  with respect to property acquired by such Person (even though
                  the rights and remedies of the seller or lender under such
                  agreement in the event of default are limited to repossession
                  or sale of such property), (d) all Capital Lease Obligations
                  of such Person, (e) all Indebtedness of others of the type
                  referred to in clause (a), (b), (c) or (d) above secured by
                  (or for which the holder of such Indebtedness has an existing
                  right, contingent or otherwise, to be secured by) any Lien
                  upon or in property (including accounts and contract rights)
                  owned by such Person, even though such Person has not assumed
                  or become liable for the payment of such Indebtedness, (f) all
                  preferred stock issued by such Person which is mandatorily
                  redeemable prior to the occurrence of a Conversion Event under
                  the Series A Certificate of Designations or the Series B
                  Certificate of Designations; (g) all Indebtedness of others
                  Guaranteed by such Person; (h) all obligations of such Person
                  as an account party (including reimbursement obligations to

<PAGE>

                  the issuer of a letter of credit) in respect of bankers'
                  acceptances and letters of credit Guaranteeing Indebtedness,
                  and (i) all non-contingent obligations or secured obligations
                  (whether or not contingent) of such Person as an account party
                  (including reimbursement provisions to the issuers of letters
                  of credit) in respect of letters of credit obtained in the
                  ordinary course of business of such Person other than those
                  referred to in (h) above.

                     "Lien" means, with respect to any asset, (a) any
                  mortgage, deed of trust, lien, pledge, encumbrance, charge or
                  security interest in or on such asset, (b) the interest of a
                  vendor or lessor under any conditional sale agreement, capital
                  lease or title retention agreement relating to such asset, (c)
                  in the case of securities, any purchase option, call or
                  similar right of a third party with respect to such
                  securities, and (d) any assignment of interest filed with the
                  United States Copyright Office or the United States Patent and
                  Trademark Office; provided, however, that licenses in and to
                  the Database (or any portion thereof) shall not be considered
                  Liens for any purposes hereof.

                     "Material Adverse Effect" means, with respect to the
                  Company, (i) any material adverse effect on the business,
                  properties, condition (financial or otherwise), prospects or
                  operations of the Company since any reference date; (ii) any
                  material adverse effect on the ability of the Company to
                  perform its obligations hereunder or under the Registration
                  Rights Agreement, or (iii) any material adverse effect on the
                  legality, validity, binding effect or enforceability of this
                  Agreement or the Registration Rights Agreement.

                     "Maximum Amount" means $50,000,000; provided, that in
                  determining the remaining portion of the Maximum Amount
                  available for demand under subsequent Call Notices, such
                  amount shall be decreased by all amounts converted under the
                  Demand Promissory Notes, the amount provided to the Company on
                  the Initial Closing Date, and all amounts provided to the
                  Company under previous Call Notices; provided, further, that
                  to the extent the Company hereafter issues and sells any
                  equity securities, including but not limited to Series A
                  Shares, to one or more of its existing shareholders other than
                  Philips on or before the date on which Philips has purchased
                  Series A Shares for an aggregate purchase price equal to the
                  Maximum Amount, then the Maximum Amount shall be further
                  reduced by the aggregate purchase price paid or agreed to be
                  paid to the Company by such other shareholders.

                     "Operating Cash Outflows" shall mean, for any period
                  with respect to any Person, cash expenditures by such Person
                  during such period.

<PAGE>

                     "Permitted Encumbrances" means (i) Liens for taxes
                  not delinquent or being contested in good faith and by
                  appropriate proceedings and for which reserves adequate under
                  GAAP are being maintained, (ii) deposits or pledges to secure
                  obligations under workers' compensation, social security or
                  similar laws, or under unemployment insurance, (iii) deposits
                  or pledges to secure bids, tenders, contracts (other than
                  contracts for the payment of money), leases, statutory
                  obligations, surety and appeal bonds and other obligations of
                  like nature arising in the ordinary course of business, (iv)
                  mechanics', worker's, materialmen's or other like Liens
                  arising in the ordinary course of business with respect to
                  obligations which are not due or which are being contested in
                  good faith, (v) minor imperfections of title on real estate,
                  provided such imperfections do not render title unmarketable;
                  (vi) Liens with respect to Indebtedness permitted under
                  Section 6.12(a)(ii) and (iii); provided, however, that
                  Permitted Encumbrances shall not include any Liens of any kind
                  voluntarily created by the Company on the Database other than
                  those permitted under (vi) of this definition of Permitted
                  Encumbrances.

                     "Person" means any individual, partnership,
                  corporation, business trust, joint stock company, limited
                  liability company, trust, unincorporated association, joint
                  venture, governmental authority or other entity of whatever
                  nature.

                     "Restricted Payments" means any dividends on any
                  shares of any class of the Corporation's capital stock, or
                  application of any of its property or assets to the purchase,
                  redemption or other retirement of, or the setting apart of any
                  sum for the payment of any dividends on, or for the purchase,
                  redemption or other retirement of, or any other payment or
                  distribution of assets in respect of, shares of the
                  Corporation's capital stock; provided that the Company's
                  purchases or redemption of capital stock from a former
                  employee, officer, director or consultant shall not be deemed
                  a Restricted Payment.

                     "Shields Group" means the Persons listed on the Shields
                  Group Schedule.

                     "Termination Date" means the earliest date on which
                  any Conversion Event under the Series A Certificate of
                  Designations or the Series B Certificate of Designations shall
                  occur.

                  (b) As used in this Agreement (including Exhibits and
         Schedules), the following terms have the respective meanings set forth
         in the Section or other provision of this Agreement indicated below:

<PAGE>

                  Agreement                                        Recitals
                  Antitrust Division                               4.1(f)
                  Bylaws                                           2.1
                  Common Stock                                     2.7
                  Company                                          Recitals
                  Closing Date                                     1.2(b)
                  Demand Promissory Notes                          1.3(a)(i)
                  Exchange Act                                     6.1(c)
                  Financial Statements                             2.9
                  FTC                                              4.1(f)
                  HSR Act                                          4.1(f)
                  Initial Closing Date                             1.2(a)
                  Master Loan Agreement                            1.3(b)
                  Philips                                          Recitals
                  Philips Parent                                   6.1(d)
                  Promissory Notes                                 3.1(b)
                  Registration Rights Agreement                    4.1(l)
                  Restated Certificate                             2.1
                  Securities Act                                   3.1
                  Series A Certificate of Designations             1.1(a)
                  Series B Certificate of Designations             1.1(b)
                  Series A Shares                                  1.1(a)
                  Series B Series                                  1.1(b)
                  Shares                                           1.1(b)
                  Subsequent Closing Date                          1.2(b)
                  Subsidiary                                       2.8
                  US GAAP                                          4.1(k)

                  (c) All references to "the Company" in Sections 2 and 4 are
         deemed to mean "the Company and its subsidiaries, collectively and
         singly" unless the context could be reasonably interpreted to require
         the reference to mean "the Company singly."

                  7.12. Initial Public Offering. Insofar as a majority of the
Board of Directors of the Company (which majority must include at least one of
Philips' designees on the Board of Directors) determines that an initial public
offering of Common Stock of the Company would be in the best interest of both
the Company and its shareholders, Philips will support such decision. As of the
date hereof, Philips acknowledges its independent position in favor of
conducting such initial public offering as soon as commercially reasonable,
subject to prevailing market conditions.

                  7.13. Scope. Each party hereto shall be responsible for the
actions of all entities under its control and cause such entities to abide by
the terms of this Agreement wherever applicable.

<PAGE>

                  7.14 Counterparts. This Agreement may be executed in
counterparts, each of which shall be an original, but all of which together
shall constitute one instrument.

                  7.15 Reconciliation of Results of Calculations. Philips and
the Company acknowledge that they have each arrived at results that differ from
those arrived at by the other party in their respective calculations of the
aggregate amount of interest accrued, whether capitalized or not, in respect of
the Demand Promissory Notes and the Promissory Notes through the date hereof.
Philips and the Company agree to appoint appropriate representatives to review
the parties' respective calculations in order to reconcile their results and to
agree upon the correct total amount of such interest (the "Total Interest
Amount"), as soon as possible after the date hereof, but in no event later than
thirty (30) days hereafter. Philips and the Company further agree that to the
extent that the Total Interest Amount is greater or less than $130,059,713.38 by
an amount that is less than or equal to $15,000.00 (such amount, the "Interest
Adjustment"), (i) the parties shall appropriately amend the provisions of
Sections 1.2 and 1.3 of this Agreement to reflect the Interest Adjustment, with
retroactive effect as of the date hereof, (ii) Philips shall promptly deliver to
the Company the certificates representing the Shares purchased on the date
hereof, and (iii) the Company shall issue replacement certificates, dated as of
the date hereof, representing the number of Shares purchased by Philips pursuant
to the amended provisions of Sections 1.2 and 1.3 of this Agreement. Philips and
the Company agree that if the Interest Adjustment is more than $15,000.00, the
Interest Adjustment shall be deemed to be $15,000.00 for purposes of the
foregoing sentence.

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

                                  NAVIGATION TECHNOLOGIES
                                   CORPORATION

                                  By: /s/ Judson Green
                                      -----------------------------------------
                                      Name:  Judson Green
                                      Title: President and CEO

                                  PHILIPS CONSUMER ELECTRONIC
                                  SERVICES B.V.

                                  By: /s/ Belinda W. Chew
                                      ---------------------------------------
                                      Name:  Belinda W. Chew
                                      Title: Attorney-in-fact

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