UNISYS INCOME ASSISTANCE PLAN AND NOTICE OF WORKFORCE REDUCTION PROVISIONS

Transcription

1 UNISYS INCOME ASSISTANCE PLAN AND NOTICE OF WORKFORCE REDUCTION PROVISIONS

2 TABLE OF CONTENTS Page INTRODUCTION...1 WHO IS ELIGIBLE...2 WHO IS NOT ELIGIBLE...3 DEFINITIONS...5 What Date of Notice, Notice Period, and Separation Date Mean as to a Voluntary Workforce Reduction or Layoff...5 Relationship of Date of Notice, Notice Period, and Separation Date as to a Workforce Reduction or Layoff...5 What Pay Means...5 What Service Means...5 What FMLA Means...6 What Military Leave Means...6 CALCULATION OF INCOME ASSISTANCE BENEFITS...7 Number of Weeks of Income Assistance Benefits...7 Basic Formula for Number of Weeks of Income Assistance Benefits...7 Offset for Amounts Owed to the Company...8 PAYMENT UNDER THE PLAN...9 Timing of Income Assistance Benefits...9 Source of Income Assistance Benefits...9 Tax Treatment of Income Assistance Benefits...9 Right to Income Assistance Benefits...9 WHEN INCOME ASSISTANCE BENEFITS END...10 UNEMPLOYMENT COMPENSATION...10 CHANGE IN ADDRESS...10 OTHER BENEFITS...10 ADDITIONAL PLAN INFORMATION...11 OFFICIAL PLAN NAME AND PLAN NUMBER...11 PLAN SPONSOR...11 EMPLOYER IDENTIFICATION NUMBER OF THE PLAN SPONSOR...11 PLAN YEAR...11 TYPE OF PLAN...11 PLAN ADMINISTRATIVE INFORMATION...11 i

3 Table of Contents cont'd Page PLAN ADMINISTRATOR...11 PLAN AND SPD...12 HOW TO FILE A CLAIM OR AN APPEAL FOR INCOME ASSISTANCE BENEFITS...12 If You Want to File a Claim for Income Assistance Benefits If You Want to File an Appeal for Income Assistance Benefits...13 RIGHT TO RECOVER EXCESS PAYMENTS...13 CASE REVIEW...14 FUNDING OF INCOME ASSISTANCE BENEFITS...14 ADMINISTRATIVE COSTS...14 APPOINTMENT/REMOVAL OF PLAN MANAGER AND COMMITTEE MEMBERS...14 AGENT FOR LEGAL PROCESS...14 GOVERNING LAW...14 YOUR RIGHTS UNDER ERISA...14 Receive Information About Your Plan and Benefits...15 Prudent Actions by Plan Fiduciaries...15 Enforce Your Rights...15 Assistance with Your Questions...15 PLAN TERMINATION OR AMENDMENT...16 ii

4 INTRODUCTION The Unisys Income Assistance Plan (the "Plan") is designed to ease the transition for you if you volunteer to be considered for a workforce reduction or layoff and your request is accepted by an authorized representative of Unisys Corporation ("Unisys"). The Plan, as amended and restated, is effective for voluntary workforce reductions or layoffs accepted by Unisys on or after July 1, Unisys and its participating affiliates (collectively the "Company") support several different programs and procedures to ease the transition: You are provided with at least two weeks' advance notice of your date of notice for purposes of the Plan. You receive regular pay and some benefits throughout the period from the date of notice, through and including the last day of the notice period, which is called your "Separation Date." After your Separation Date, you may receive o o Income assistance benefits under the Plan, with the number of weeks of payments depending on your years of service with the Company, up to a maximum of 26 weeks; and Company-sponsored benefit continuation under certain group health plans included in the Unisys Flexible Benefits Program. This booklet provides information on the Plan, as well as information on the Company's Notice of Workforce Reduction provisions, that is intended to help you understand your benefits under the Plan. If you are eligible to receive income assistance benefits under this Plan, generally you will not be eligible to receive payments ("SUB Payments") under the Unisys Supplemental Unemployment Benefits Plan (the "SUB Plan"). However, if you receive SUB Payments under the SUB Plan and you die before receiving all of your SUB Payments, any remaining payments you would have received under the SUB Plan will be payable to your beneficiary under this Plan instead. 1

5 WHO IS ELIGIBLE Effective for voluntary workforce reductions or layoffs accepted by Unisys on or after July 1, 2007, you are eligible for income assistance benefits under the Plan if: You volunteer to be considered for a workforce reduction or layoff when the Company presents that opportunity; Your request is accepted by an authorized representative of Unisys; and Immediately before your date of notice of the voluntary workforce reduction or layoff o o You are in an active employment status as a regular full-time United States ("U.S.") employee of the Company; You are in an active employment status as a regular part-time U.S. employee of the Company, and your normal work schedule is 20 or more hours per week immediately before you receive notice of the workforce reduction or layoff; and you have been employed by the Company for more than 60 consecutive calendar days when notice of the workforce reduction or layoff is given; or o You are a regular full-time or regular part-time U.S. employee of the Company, as described above, and you are on an approved family/medical ("FMLA") or personal leave of absence of 90 days or less, are scheduled to return to work on or after July 1, 2007, and work is available; you are unable to work your normal schedule due to a disability that was certified under the Unisys Short-Term Disability ("STD") Plan for 26 weeks or less, on or after July 1, 2007 you are medically certified to return to work at the end of your approved leave of absence under the STD Plan, and work is available; or you are on a military leave of absence, and on or after July 1, 2007 you make a timely application to return to work after your release from military service, and work is available. In addition, if you die while you are receiving SUB Payments, although your SUB Payments will stop, your beneficiary will be eligible to receive benefits under this Plan instead, as further described on page 7. 2

6 WHO IS NOT ELIGIBLE You are not eligible for income assistance benefits under the Plan if, on or before your Separation Date, you: voluntarily resign from the Company, including, but not limited to, by obtaining alternate employment or electing to retire; die; or are released due to unsatisfactory job performance or are discharged for cause (as defined in applicable Company policies, as in effect from time to time). You also are not eligible for income assistance benefits under the Plan if you: are classified in Unisys records as either a regular part-time employee whose normal work schedule is less than 20 hours per week, a temporary employee, a co-op, or an intern on the date of notice of the workforce reduction or layoff; are an employee of a U.S. subsidiary or business group of Unisys (including, but not limited to, Unisys Technical Services, L.L.C.) that has not adopted the Plan on the date of notice of the workforce reduction or layoff; are a member of a collective bargaining unit (unless the agreement governing your employment provides for participation in the Plan) on the date of notice of the workforce reduction or layoff; are eligible for another severance plan or arrangement (other than the SUB Plan) that has been approved by the Senior Vice President, Worldwide Human Resources or his or her designee; are on an approved personal leave of absence in excess of 90 days on the date of the notice of a workforce reduction or layoff; do not return on the scheduled return-to-work date from leave of absence under the STD Plan, military leave of absence, or approved FMLA or personal leave of absence of 90 days or less; are still unable, after 26 weeks, to work your normal work schedule due to a disability in this case, your status is changed to "inactive" at the later of the date you cease working a reduced work schedule or after 26 weeks of absence (Note that you are not eligible for pay during the notice period, benefits under the Plan, or SUB Payments under the SUB Plan, even if you are not certified for Unisys Long-Term Disability ("LTD") Plan benefits at the end of this period.); accept the terms of a voluntary retirement incentive program or similar program; are not an employee of the Company but provide services as a leased employee as described in section 414(n)(2) of the Internal Revenue Code of 1986, as amended (the "Internal Revenue Code") on the date of notice of the workforce reduction or layoff; or 3

7 are classified as an independent contractor by the Company or are not treated by the Company as an employee for purposes of withholding Federal employment taxes on the date of notice of the workforce reduction or layoff, regardless of: o o how you are classified by the Internal Revenue Service, another governmental agency, government or court; or a contrary governmental or judicial determination relating to such employment status or tax withholding. 4

8 DEFINITIONS Keep the following definitions in mind as you read this booklet. What Date of Notice, Notice Period, and Separation Date Mean as to a Voluntary Workforce Reduction or Layoff The Company provides advance notice prior to the Separation Date. At least two weeks before your Separation Date, the Company will advise you in writing of your Separation Date and the date that will be considered your date of notice for purposes of the Plan. The time between the date of the notice and the Separation Date is the notice period. The last day of the notice period is the Separation Date. Relationship of Date of Notice, Notice Period, and Separation Date as to a Workforce Reduction or Layoff The following example illustrates the relationship of these terms in a hypothetical situation. For example: if you are advised that August 15 is your date of notice and your Separation Date is August 29, the following dates apply: Date of notice = August 15 Notice period = August 16 through August 29 Separation Date = August 29 What Pay Means For purposes of the Plan, including calculating income assistance benefits, pay means your weekly base rate of pay as of your Separation Date. Overtime, commissions, sales incentives, Executive Variable Compensation ("EVC") Plan and other annual incentive or bonus payments, Lump Sum Recognition Awards, leader premiums, shift differentials, and any other income are not included. If you are paid on a biweekly basis, your biweekly base rate of pay is multiplied by 26 to arrive at an annual base rate of pay. This annual base rate of pay is then divided by 52 to determine your weekly base rate of pay. If you are paid on a monthly basis, your monthly base rate of pay is multiplied by 12 to arrive at an annual base rate of pay. This annual base rate of pay is then divided by 52 to determine your weekly base rate of pay. What Service Means For purposes of the Plan, generally, your service means the completed number of whole years between: 5

9 your most recent date of hire, rehire, or recall (whichever applies to you) by the Company in the U.S.; and your Separation Date. If you worked for a foreign subsidiary of Unisys, your date of hire for purposes of the Plan is your hire or rehire date as a local hire in the U.S. If you worked for an organization that Unisys acquired or with which Unisys established an outsourcing arrangement and the terms of the applicable acquisition agreement or the outsourcing contract expressly provide that service with the prior employer will be considered for purposes of severance pay or income assistance, you will receive credit for service with the prior employer to the extent provided for under the terms of the agreement or contract. If any state or Federal law requires that your service with a prior employer be recognized for purposes of severance pay, Unisys will recognize that service in accordance with the law. Your service is counted in whole years for purposes of the Plan. Therefore, if your service includes a partial year, your service is rounded down to the next lower whole number for purposes of calculating income assistance benefits. For example, assume Phyllis is hired by the Company on October 1, 1992, and this is her most recent date of hire. Phyllis volunteers for a workforce reduction or lay off, and her request is accepted by Unisys. She is advised that her Separation Date is August 1, Phyllis has 14 years of service for purposes of the Plan. What FMLA Means For purposes of the Plan, FMLA refers to a leave of absence for family or medical reasons that is approved pursuant to the Unisys Family and Medical Leave Practice or under any state or Federal law. What Military Leave Means For purposes of the Plan, military leave refers to an approved leave of absence from the Company due to active military service, provided that you make a timely application to return to work after your release from military service and the length of your military service or the nature of your discharge do not disqualify you from reinstatement rights under Federal law or under any applicable Unisys policy. 6

10 CALCULATION OF INCOME ASSISTANCE BENEFITS Income assistance benefits will be payable after your Separation Date and until you are no longer eligible to receive income assistance benefits. The amount of income assistance benefits is determined as a weekly amount. See page 9 for the description of rules regarding the payment of income assistance benefits, including the schedule on which these benefits will be paid. The income assistance benefits you receive are based on: the number of weeks of income assistance benefits you are entitled to under the Plan, as described below; the amount of your pay, as defined above; and whether a reduction for any amounts you owe the Company applies, as described below. Number of Weeks of Income Assistance Benefits The number of weeks of income assistance benefits you will receive will depend on the following factors: your service, as defined above; whether the minimum of two weeks of income assistance benefits applies; whether the maximum of 26 weeks of income assistance benefits applies. Generally, as noted in the following table, you are eligible for income assistance benefits of one week for each full year of service, with a minimum of 2 weeks and a maximum of 26 weeks. Basic Formula for Number of Weeks of Income Assistance Benefits Full years of service (see definition on page 6) Weeks of income assistance benefits Less than one year * 2 weeks 1 year, but less than 2 years 2 weeks 2 years, but less than 3 years 2 weeks 3 years, but less than 4 years 3 weeks 4 years or more 1 week for each full year of service, to a maximum of 26 weeks * Part-time employees with less than 60 days of service are not eligible for income assistance benefits. As noted above, if you die while you are receiving SUB Payments, your SUB Payments will stop; however, your beneficiary will be eligible to receive benefits under this Plan instead. The number 7

11 of weeks of income assistance benefits payable to your beneficiary will generally be equal to the remaining number of weeks of SUB Payments that would have been paid if you had not died. Offset for Amounts Owed to the Company Generally, the amount of your income assistance benefit for each week you are eligible for these benefits is your pay, as defined above. If you owe any amounts to the Company on your Separation Date, the amount of your weekly income assistance benefit is reduced by the amount you owe the Company. The amount of the overpayment will be spread evenly over the number of weeks of income assistance benefits you are entitled to, as determined under the table above, and each benefit payment will be the net amount. For example, assume Alex earns $ per week and he was paid by the Company for three weeks when he was absent, but his claim for STD Plan benefits for those three weeks is denied. Alex has been overpaid for a total of $1,500.00, and he owes the Company for that overpayment. Alex volunteers for a workforce reduction or layoff when he has six years of service and before he has repaid the Company for the amount he owes. His request is accepted by Unisys. The amount of his income assistance benefit is reduced by $ per week ($1, divided by 6 weeks). 8

12 PAYMENT UNDER THE PLAN Timing of Income Assistance Benefits If you are entitled to income assistance benefits under the Plan, generally you will receive these benefits on a biweekly basis beginning immediately after your Separation Date. However, if you are a "specified employee" as defined in section 409A of the Internal Revenue Code (that is, essentially, one of the top 50 officers of Unisys and its affiliates ranked by compensation) on your Separation Date, the commencement of your income assistance benefits will be delayed by 6 months from your Separation Date, as required under section 409A of the Internal Revenue Code. If your regular pay was paid via direct deposit to your bank, your income assistance benefits will also be paid by direct deposit, and your pay statements will be mailed to your home. If your regular pay was not paid via direct deposit, both the checks for your income assistance benefits and the accompanying pay statements will be mailed to your latest home address on the Unisys records. Any benefits payable to your beneficiary in the event that you die before receiving either all of the SUB Payments or all of the income assistance benefits that you otherwise would have been entitled to receive will be payable in a lump sum. The lump sum payment will be mailed to your beneficiary after your beneficiary has submitted any information required by the Plan Manager. Source of Income Assistance Benefits Income assistance benefits are paid from the Company's general assets. Tax Treatment of Income Assistance Benefits Income assistance benefits are taxable as wages and are subject to withholding for Federal Social Security and Medicare taxes (together, known as FICA taxes), as well as Federal, state and local income tax, and any other applicable employment taxes under applicable law. Note: Because Unisys cannot give tax or legal advice, you are strongly urged to consult your own personal tax or legal advisors to determine how to treat any income assistance benefits for tax purposes. Right to Income Assistance Benefits Employees and former employees have no rights or interest in benefits under the Plan until all the conditions for eligibility for income assistance benefits are met, as described in the Plan. Also, income assistance benefits will be discontinued under certain circumstances, as described below. 9

13 WHEN INCOME ASSISTANCE BENEFITS END Your income assistance benefits end at the earlier of when you: receive the number of weeks due under the basic formula in the table above (up to a maximum of 26 weeks); or are reemployed by the Company. UNEMPLOYMENT COMPENSATION Your eligibility for state unemployment compensation benefits while you are collecting notice pay or income assistance benefits is determined by the provisions of law of the state regulating these payments. Check with your local employment security commission or unemployment compensation benefits office promptly to determine if and when your state allows you to receive unemployment compensation benefits and when you should apply. CHANGE IN ADDRESS While you are receiving income assistance benefits, it is important for you to notify Unisys promptly of any change in your address to avoid any disruption to the benefit payment process. You should contact the Unisys Benefits Service Center (UBSC) at to report an address change. The UBSC is generally available Monday through Friday (excluding holidays), 9:00 a.m. to 5:00 p.m., Eastern time ("ET"). OTHER BENEFITS Some of your other benefits may continue to be available for a period of time beyond your Separation Date. Some benefit coverages may end as of your last day worked, and some coverages may be extended if you continue to pay the cost of coverage. Details on how your benefit coverages are affected are provided in the personalized package you receive at the time notice of a workforce reduction or layoff is given. 10

14 ADDITIONAL PLAN INFORMATION The following are contacts for answers to questions about the Plan. On all correspondence, reference your name, Unisys employee ID number and current mailing address. If you are not the employee, include the name, current mailing address and Unisys employee ID number of the Unisys employee. Unisys Corporation Unisys Way, M/S E6-123 Blue Bell, PA Phone: OFFICIAL PLAN NAME AND PLAN NUMBER Unisys Income Assistance Plan Plan Number 548 PLAN SPONSOR Unisys Corporation Unisys Way, M/S E6-123 Blue Bell, PA EMPLOYER IDENTIFICATION NUMBER OF THE PLAN SPONSOR PLAN YEAR All fiscal records are kept on a calendar-year basis, beginning on January 1 and ending on December 31. TYPE OF PLAN The Plan is an employee welfare benefit plan that is considered a severance plan under the Employee Retirement Income Security Act of 1974, as amended ("ERISA"). PLAN ADMINISTRATIVE INFORMATION You can get information about the Plan by calling PLAN ADMINISTRATOR The plan administrator has authority to control and manage the operation and administration of the Plan. All final decisions regarding the administration and interpretation of the Plan are made by the plan administrator or its designee. The plan administrator has the discretionary authority to supply omissions, resolve ambiguities, make factual determinations, and to decide any dispute that may arise regarding the rights of participants, including the sole discretionary authority to grant or 11

15 deny benefits under this Plan. All such decisions are binding and conclusive on all interested parties and will be subject to review only for abuse of discretion. The Plan Manager is the plan administrator for the Plan. The name and address of the plan administrator for purposes of the Plan, including for purposes of processing benefits requests, is: Plan Manager Unisys Corporation Unisys Way, M/S E6-123 Blue Bell, PA Phone: PLAN AND SPD This booklet serves as the plan document and summary plan description for the Plan. The adoption of the Plan and the provision of income assistance benefits under the Plan by Unisys does not imply the creation of a contract of employment between the Company and any employee or an obligation on the part of the Company to continue the present or future level of income assistance benefits. HOW TO FILE A CLAIM OR AN APPEAL FOR INCOME ASSISTANCE BENEFITS If you disagree with the determination made regarding a request for income assistance benefits or continuation of income assistance benefits, you may be able to satisfactorily resolve the disagreement by calling Unisys at If you are not successful in arriving at a satisfactory resolution, there is a formal way to file a written claim for benefits under the Plan. If You Want to File a Claim for Income Assistance Benefits. If you or your beneficiary believe that the Plan has failed to provide you or your beneficiary with any benefit to which you are entitled, you, your beneficiary or your duly authorized representative may promptly file a written claim with the Plan Manager. In the case of a claim for benefits that is wholly or partially denied, the Plan Manager will provide you with notice of the decision on the claim within 90 days after the claim has been received (or within 180 days in the event of special circumstances if the Plan Manager furnishes notice of the extension before the end of the initial 90-day period, including the reason for the extension of time and the date by which a decision is expected). A notice of the denial of a claim, in whole or in part, will set forth: The specific reason or reasons for the denial; Reference to the specific Plan provisions upon which the denial is based; 12

16 A description of any additional material or information needed for you to perfect your claim and an explanation of why such material or information is necessary; and An explanation of the Plan's appeal procedures (which are set forth below) and the time limits applicable to appeals, including a statement of your right to bring a civil action under section 502(a) of ERISA following an adverse benefit determination on appeal. If You Want to File an Appeal for Income Assistance Benefits. Within 60 days of the receipt of a notice denying a claim, you, your beneficiary, or your duly authorized representative may request, in writing, a full review of the claim denial by the Unisys Employee Benefits Administrative Committee (the "Committee"). In connection with any such review, you, your beneficiary, or your duly authorized representative will be provided, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the claim for benefits, and may submit to the Committee written comments, documents, records or other information relating to your claim for benefits. The Committee's review will take into account all written comments, documents, records or other information submitted relating to your claim for benefits, without regard to whether such information was submitted or considered in the initial benefit claim determination. The Committee will make a decision within 60 days after your request for a review is received (or within 120 days in the event of special circumstances if the Committee furnishes notice of the extension before the end of the initial 60-day period, including the reason for the extension of time and the date by which a decision is expected). The Committee's decision will be final and binding on all parties. A final notice of the denial of the claim on appeal, in whole or in part, will set forth: The specific reason or reasons for the denial; Reference to the specific Plan provisions upon which the denial is based; Your right to, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to the claim for benefits; and A statement of your right to bring a civil action under section 502(a) of ERISA following a denial of your appeal. Appeals that are not filed in a timely manner will be barred. As stated above, the Committee's decision on appeal will be final and binding on all parties. If you or your beneficiary decide to challenge the appeal decision of the Committee, a review by a court of law shall be limited to the facts, evidence, and issues presented during the claim and appeal process described above. The claim and appeal process described above must be exhausted before you or your beneficiary can pursue the claim in Federal or state court. Issues not raised by you or your beneficiary during the claim and appeal process described above shall be deemed waived. RIGHT TO RECOVER EXCESS PAYMENTS If payments are made in excess of the benefits due under the Plan, Unisys has the right to recover these excess payments from any person to whom the excess payments are made. In addition, if excess payments are made to you, and upon request to do so you fail to return the excess payments 13

17 to Unisys, further payments under the Plan and/or under the SUB Plan are withheld until the full excess payment amount is recovered. CASE REVIEW The Plan Manager and his or her delegates reserve the right to request copies of any documentation considered necessary to apply the provisions of the Plan in determining benefits payable. Further, for the determination of benefits payable under the Plan, the services of a thirdparty administrator or another service provider may be retained to examine and provide advice regarding any facts, records or documentation relating to your claim for benefits. FUNDING OF INCOME ASSISTANCE BENEFITS Income assistance benefits are provided from the Company's general assets. ADMINISTRATIVE COSTS All expenses related to the administration and operation of the Plan (including, but not limited to, payment for outside legal, accounting, and other necessary services) are paid by the Company out of its general assets. APPOINTMENT/REMOVAL OF PLAN MANAGER AND COMMITTEE MEMBERS The Plan Manager and the Committee are appointed and may be removed by the Board of Directors of Unisys (the "Board"). The Plan Manager and persons appointed to the Committee may be, but need not be, employees of the Company. The Plan Manager and any Committee member may resign by giving written notice to the Board, which notice shall be effective 30 days after delivery. AGENT FOR LEGAL PROCESS Unisys hopes that any disagreement you have with the Plan can be resolved without resorting to legal process. If you wish to begin legal proceedings, however, service of legal process may be made on the Plan Manager at the relevant address listed above. GOVERNING LAW Except to the extent superseded by ERISA, all questions pertaining to the validity, construction and operation of the Plan are determined in accordance with the laws of the Commonwealth of Pennsylvania without regard to any choice of law provisions. YOUR RIGHTS UNDER ERISA As a participant in this Plan, you are entitled to certain rights and protections under ERISA. ERISA provides that all Plan participants shall be entitled to: 14

18 Receive Information About Your Plan and Benefits examine, without charge, at the plan administrator's office and at other specified locations, such as worksites, during normal working hours, all documents governing the Plan, and a copy of the latest annual report (IRS Form 5500) filed with the U.S. Department of Labor and available at the Public Disclosure Room of the Employee Benefits Security Administration; and obtain, upon written request to the plan administrator, copies of all documents governing the operation of the Plan and copies of the latest annual report (IRS Form 5500) and updated summary plan description. The administrator may make a reasonable charge for the copies. Prudent Actions by Plan Fiduciaries In addition to creating rights for Plan participants, ERISA imposes duties upon the people who are responsible for the operation of an employee benefit plan. The people who operate the Plan, called "fiduciaries" of the Plan, have a duty to do so prudently, in your interest and that of all participants and beneficiaries. No one, including Unisys, may terminate your employment or otherwise discriminate against you in any way to prevent you from obtaining a Plan benefit to which you are entitled or exercising your rights under ERISA. Enforce Your Rights If your claim for a Plan benefit is denied or ignored, in whole or in part, you have a right to know why this was done, to obtain copies of documents relating to the decision without charge, and to appeal any denial, all within certain time schedules. Under ERISA, there are steps you can take to enforce the preceding rights. For instance, if you request a copy of Plan documents or the latest annual report from the Plan and do not receive them within 30 days, you may file suit in a Federal court. In such a case, the court may require the plan administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless they were not sent or received because of reasons beyond the control of the administrator. If you have a claim for benefits which is denied or ignored, in whole or in part, you may file suit in a state or Federal court. If it should happen that Plan fiduciaries misuse the Plan's money, or if you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in a Federal court. The court will decide who should pay court costs and legal fees. If you are successful, the court may order the person you have sued to pay these costs and fees. If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous. Assistance with Your Questions If you have questions about your Plan, you should contact the plan administrator or his or her delegate. 15

19 If you have any questions about this statement or about your rights under ERISA, or if you need assistance in obtaining documents from the plan administrator, you should contact the nearest office of the Employee Benefits Security Administration, U.S. Department of Labor, listed in your telephone directory or: Division of Technical Assistance and Inquiries Employee Benefits Security Administration U.S. Department of Labor 200 Constitution Avenue, N.W. Washington, D.C You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security Administration. PLAN TERMINATION OR AMENDMENT Unisys reserves the right to amend the Plan. This right includes the authority to modify the eligibility rules, levels of benefits payable, or any other term or condition of the Plan. The decision by Unisys to change the Plan may be due to changes in Federal or state laws governing welfare benefits, the requirements of the Internal Revenue Code or ERISA or any other reason. If Unisys makes a change or terminates the Plan, it may decide to establish a different plan providing similar or identical benefits. Unisys also reserves the right to terminate the Plan for any reason. Should the Plan be terminated, coverage for all participants would end. Issued: July 1,

20 ADDITIONAL INFORMATION ON THE NOTICE OF WORKFORCE REDUCTION PROVISIONS If your employment is terminated as a result of a voluntary workforce reduction or layoff and you are eligible under the Unisys Income Assistance Plan (the "Income Assistance Plan"), you are also eligible for advance notice of the workforce reduction or layoff. The time from the date of notice to and including the Separation Date is the notice period. The notice period is at least 2 weeks. DEFINITIONS See the definitions of the terms "date of notice," "notice period," and "pay" on page 5 of the Income Assistance Plan to determine the amount of pay you will receive during the notice period. Also, see the Income Assistance Plan for the definitions of the terms "Unisys," "Company," "Separation Date," "STD," "FMLA," and "military leave." The term "income assistance benefits" means payments made under the Income Assistance Plan that are intended to provide a financial bridge to the next period of employment for eligible employees of the Company who terminate employment in connection with a voluntary workforce reduction or layoff and who meet other conditions described in the Income Assistance Plan. PAY DURING THE NOTICE PERIOD Throughout the notice period, you remain on the active payroll and your paychecks are distributed on your normal pay cycle dates (that is, on a biweekly or monthly basis). Unisys may require that you continue to report to work for all or part of the notice period. Failure to report for work on scheduled workdays is subject to the same attendance requirements as for other active employees. Unisys may determine that you are not required to continue to report to work for the entire notice period. Your notice pay ends if you voluntarily resign, including, but not limited to, by obtaining alternate employment or electing to retire, are released due to unsatisfactory job performance, are discharged, or are on an unpaid approved leave of absence on or before your Separation Date. In those cases, your last day worked determines when your pay ends. 1

21 NOTICE, NOTICE PERIOD, AND SEPARATION DATE: LEAVES OF ABSENCE Leave under the STD Plan You volunteer and are accepted for a workforce reduction or layoff before a leave under the STD Plan: If you volunteered and were accepted for a voluntary workforce reduction or layoff, and you are subsequently placed on an approved leave under the STD Plan of 26 weeks or less on or before your Separation Date, your Separation Date may change. Your Separation Date will be the later of: the date you are medically released to return to your normal work schedule, provided you report to work (failure to report for work is considered a voluntary resignation and no notice pay or income assistance benefits are payable); or your original Separation Date. For example, let's say Gary volunteered and was accepted for a workforce reduction. He is advised that his date of notice is July 25 and his Separation Date is August 8. Gary is scheduled to work during the notice period, but he has emergency surgery causing him to miss work beginning August 1. He is medically released to return to his normal work schedule on October 30. In this case, Gary's dates are: Date of notice = July 25 STD Plan leave = August 1 to October 29 Separation Date = October 30 You volunteer and are accepted for a workforce reduction or layoff while on leave under the STD Plan: Your notice period begins on the date you are certified as able to return to your normal work schedule if both of the following apply: you volunteer and are accepted for a voluntary workforce reduction or layoff while you are on an approved leave under the STD Plan; and your return date for your normal work schedule is within 26 weeks of the date you began missing work due to the disability, provided you report to work (failure to report for work is considered a voluntary resignation and no notice pay or income assistance benefits are payable). For example, let's say, Gary has surgery causing him to miss work beginning August 1. Gary volunteers and is accepted for a voluntary workforce reduction on October 15, and he is 2

22 medically released to return to his normal work schedule on October 30. In this case, Gary's dates are: STD Plan leave: = August 1 to October 29 Date of notice: = October 30 or later, as determined by the Company Separation Date = November 12 or later, as determined by the Company Absences of longer than 26 weeks due to disability: If your disability results in your inability to work your normal work schedule for longer than 26 weeks, if you are medically released to return to your normal work schedule and there is no work available, then you are not eligible for paid notice or income assistance benefits. Your active employment status terminates at the later of the date you cease working a reduced work schedule or after 26 weeks of absence. Notice of workforce reduction or layoff benefits and income assistance benefits do not apply, even if you are not certified for Unisys Long-Term Disability Plan benefits. Approved FMLA or Personal Leave of 90 Days or Less You volunteer and are accepted for a workforce reduction or layoff during an approved FMLA or personal leave of absence. You will be advised of your date of notice and Separation Date when you return to work if both of the following apply: you volunteer and are accepted for a voluntary workforce reduction or layoff while you are on an approved FMLA or personal leave of absence; and your return date is within 90 days of the date your absence began, provided you report to work (failure to report for work is considered a voluntary resignation and no notice pay or income assistance benefits are payable). For example, let's say Bill begins an approved personal leave on August 1. Bill volunteers and is accepted for a workforce reduction on October 15, and he is scheduled to return to work on October 30. In this case, Bill's dates are: Personal leave: = August 1 to October 29 Date of notice: = October 30 or later, as determined by the Company Separation Date = November 12 or later, as determined by the Company Absences due to approved FMLA or personal leave of absence of longer than 90 days: If your FMLA or personal leave of absence has been approved for longer than 90 days, and there is no work available when you are scheduled to return from your leave, you are not eligible for paid notice or income assistance benefits. 3

23 Military Leave You volunteer and are accepted for a workforce reduction or layoff before a military leave of absence: If you volunteer and are accepted for a voluntary workforce reduction or layoff, you are scheduled to work the notice period, you are notified of your date of notice and Separation Date, and you are placed on an approved military leave before the end of the notice period, you will be eligible for paid notice and income assistance benefits if you return to active employment before the end of the notice period. You volunteer and are accepted for a workforce reduction or layoff during a military leave of absence: Your notice period begins on or after the date you are able to return to work if: you volunteer and are accepted for a voluntary workforce reduction or layoff while you are on an approved military leave of absence; and you report to work (failure to report for work is considered a voluntary resignation and no notice pay or income assistance benefits are payable). For example, let's say Ron is called to military duty causing him to miss work beginning August 1, and his department is notified of a voluntary workforce reduction on October 15. Ron volunteers and is accepted for the voluntary workforce reduction of layoff, and he is released from military duty October 29 of the same year. In this case, Ron's dates are: Military leave: = August 1 to October 29 Date of notice: = October 30 or later, as determined by the Company Separation Date = November 12 or later, as determined by the Company No work is available after a military leave of absence: If you are scheduled to return to work following an approved military leave of absence, but no work is available, you are not eligible for income assistance benefits. However, you may be eligible for SUB Payments under the SUB Plan in accordance with the terms of the SUB Plan and to a notice period as described in the Notice of Workforce Reduction provisions attached to the SUB Plan. 4