Settlement Between Fujitsu Services & Amicus

Settlement Agreement between Fujitsu Services & UNITE – The Union 0) DEFINITIONS In this agreement the following terms have the following meanings:

Term Definition The Company Fujitsu Services Limited Registered in England no 96056, Registered Office 22 Baker Street, London, W1U 3BW The Union ”Unite – The Union” (formerly Amicus) Parties The Union and The Company Scope of the Recognition Agreement The group of Employees covered by the Union recognition agreement called “Union or Recognition Agreement for Fujitsu Services Scope of the Agreement Manchester” (the “Recognition Agreement”). See section 3 of the Recognition Agreement. Or In scope Bargaining Unit The group of Employees within the scope of this Recognition Agreement who are not excluded through the procedure set out in Annex 5. See section 3 of the Recognition Agreement. Employees Employees of Fujitsu Services Limited Union Members Employees who are members the Union Central Park the Company’s premises at Central Park, Northampton Road, Manchester M40 5BP HOM Employees Employees contractually based at home. This includes many Employees who work at home, Employees who start from home for mobile or field-based work, and Employees who work at a variety of locations but use home as their base. SEA The Security of Employment Agreement dated 15 March 1977 between ICL and ASTMS and other unions and the agreed amendments and update thereto. TUPE The Transfer of Undertakings (Protection of Employment) Regulations

Settlement agreement: 20th September 2007 Page 1 of 6 1) CONTRACTS AND COLLECTIVE AGREEMENTS Some Fujitsu standard contracts included clauses such as: “There are no collective agreements in place that apply to your terms and conditions”. For as long as there is a union recognition agreement in force this clause will not be used for those Employees in scope of the Recognition Agreement, now or in the future. These agreements modify the contracts of anyone in scope to remove that clause. The Company will also make an announcement to all those in scope to this effect. When any Employee moves in or out of the scope of the Recognition Agreement (for example because they move to or from a site covered by the Recognition Agreement), the Company will notify them in writing of the consequential change to their contract of employment. If, despite this, any Employee within the scope of the Recognition Agreement has a contract including such a clause in the future, it is the intention of both Parties that these agreements will over-ride such an error and that the Company will notify such Employees immediately to correct the text of the contract. For as long as a union recognition agreement between the Company and the Union continues, all Employees within the scope of the Recognition Agreement (including new Employees and those who transfer in) will have their contract amended (which could be by general announcement) to include: “You may be covered by such collective agreements as the Company may enter from time to time. At present, you are covered by a union recognition agreement. For as long as you remain in scope of the Recognition Agreement, modifications to your terms and conditions may be agreed through the processes set out in the Recognition Agreement.” The issuing of the general announcement to correct contracts for existing Employees will be part of the overall implementation plan for these agreements.

2) PENSIONS Those Employees in the Bargaining Unit at the date this agreement is effective (see 6a), who are members of the Defined Benefit pension scheme and currently have an entitlement to accrual at 1/75th per year will have their entitlement increased to 1/60th. Because Employees can (through Pensions Choices) choose an actual accrual rate independent of their entitlement, this does not alter their actual accrual rate, though they may wish to review this in the normal way.

Settlement agreement: 20th September 2007 Page 2 of 6 3) PAY 3.1 Promotions The term “promotion” is used to mean a change in an individual’s Professional Community Role code to one with a higher guideline salary. The Company typically uses two types of promotion. The first is a promotion within a job. For example, someone in TSS/3 might gradually increase their capabilities and take on more challenging work. After a time, their manager might recognise this by promoting them to TSS/4. The pay rise associated with this promotion would be funded from the annual pay “pot”. The second is a promotion into a new job. For example, someone in TSS/3 might apply for a new job in a different team, and be promoted to TSS/4 when they get the job. In this case, the pay rise associated with the promotion does not come from the annual pay “pot”. This is because there was previously a vacancy. Fujitsu’s resourcing processes (the Recruitment Authorisation Request or RAR) require the manager to have secured the budget before a vacancy can be filled. In the example, the budget will be based on the cost of a TSS/4 employee, not on the previous salary of the person who happens to get the job. This means that the size of the pay pot is not a constraint on the pay rise associated with pay rises for this type of promotion. Managers have more freedom to pay an appropriate rate for the new job. When promoting into a new job, managers can budget for pay rises after the initial rise associated with the promotion itself. Managers can avoid these rises coming from their annual pay “pot” by specifying planned pay increases for at least the next twelve months on the form at the time of promotion. In both types of promotion, any increased benefit levels (other than basic pay) are not funded from the annual pay “pot”. It was agreed in 2005 that “where employees change to a job/role which is a promotion, an immediate review should take place with a plan agreed with the individual to include reward and development”. The Company will implement a mechanism to monitor and ensure that this consistently takes place, and that these promotional pay rises are excluded from the pay “pot” in collective discussions, before discussions begin on the April 2008 pay review. 3.2 Pay levels By the time discussions on the 2008 pay review begin, the Company will have established “D1-4” pay scales for all Employees within the Customer Services capability unit on the TSS/1, TSS/2 and TSM/1 roles. The Company will make the capability definitions for these scales and the associated pay bands available to the Union. All other Employees will be managed on the standard Company pay structure (including medians) unless discussed with the Union. For the 2008 pay review, the Company will prepare and make available to the Union pay guideline figures for those roles not relevant to the Bargaining Unit and not covered by the “D1-4” scales. These will be based on the median (full time equivalent) salary for UK Fujitsu Services employees, excluding those on the D1-4 scales. Employees can obtain their median salary figure for their Professional Community role through their line manager, who can obtain it from HR.

Settlement agreement: 20th September 2007 Page 3 of 6 The lower guideline pay level for those Employees not on D1-4 scales is defined as 75% of the median. To avoid introducing new anomalies which have to be corrected at pay review time, the Company will ensure that where employee change roles or receive a pay increase between general pay reviews, all Employees in the Bargaining Unit are paid at least the applicable lower guideline level at that time. Except by agreement with the Union, the only exception to this would be where a lower salary was agreed as part of the acceptance of an “alternative job” (as opposed to a “suitable alternative job”) during redeployment. Any exception will include a plan with specified performance criteria to raise the salary to at least their lower guideline level within a year, provided those criteria are met. 3.3 Pay progression The Company will discuss with the Union the issues of how to fund promotions within a job on an equal footing with promotions to a new job, and how to ensure fair relative pay levels within the pay band for a Professional Community role. The aim will be to agree a solution prior to discussions on the 2008 pay review. 3.4 Equal Pay Review The Company is committed to doing an Equal Pay Review. The Company will begin dialogue with UNITE on this subject by arranging a meeting with Alison Dalley (Head of Reward) to take place before the end of October 2007. Joint work with UNITE in Manchester on the Review will begin before the end of this financial year. 3.5 Disturbance Allowance About half the Central Park workforce currently receives a Disturbance Allowance, which averages about £1000 per year. For those individuals in the Bargaining Unit at the date this agreement is effective (see 6a), the Company will consolidate this into basic pay. This is a benefit to Employees because it ensures it is permanent, has a positive impact on pensions, many Out Of Hours payments, redundancy entitlement etc. It also increases the basic pay level upon which future increases are calculated. However, those who contribute to a pension will see a corresponding increase in the pension deduction on their pay slip. 3.6 Increase in Basic Pay The Union were seeking an increase in basic pay for everyone, to resolve outstanding issues from the 2005 and 2006 pay reviews. As it is undisputed that those above the salary threshold were not covered by collective bargaining at this time, the Company is only prepared to offer an increase for those in scope of the new agreement whose basic pay is currently below £40,529. In addition to any increase arising from 3.5 above and any other rises applicable to individuals, annual basic pay for this group will be increased by £150. For those above the threshold, they will continue to be managed on the standard Company pay processes until the next pay review.

Settlement agreement: 20th September 2007 Page 4 of 6 4) GRIEVANCE PROCEDURE FOR AGENCY AND TEMPORARY WORKERS Individuals who are not employees of Fujitsu Services, but who are engaged to carry out work for the Company, may occasionally have issues relating to the Company. The ACAS Code of Practice on grievance and disciplinary procedures says: “The statutory dismissal, disciplinary and grievance procedures, as set out in the Employment Act 2002, apply only to employees as defined in the 2002 Act and this term is used throughout sections 1 and 2 of the Code. However, it is good practice to allow all workers access to disciplinary and grievance procedures. The right to be accompanied applies to all workers (which includes employees) and this term is used in section 3 of the Code.” The Company and the Union agree that it is in the interests of all parties for such individuals to have a channel to have their issues addressed. The Company needs to create the channel in a way which avoids any implication that such individuals are employees of the Company. The Company and the Union will begin separate discussions on the creation of such a channel during 2007.

5) LEGAL STATUS In accordance with the Trade Union and Labour Relations (Consolidation) Act 1992, part IV, Chapter I, Paragraph 179, the Parties agree that only sections 1, 2, 3.5 and 3.6 of this agreement are legally enforceable parts of the contract between the Company and its employees. However, the Parties intend to be bound by this document in full. The new Recognition Agreement replaces the “Procedure Agreement between International Computers Limited West Gorton Site and Manufacturing Science and Finance (formerly ASTMS and TASS)” dated 7/6/88. Annex 1 to the new Recognition Agreement specifies the extent to which it replaces the SEA. All other existing agreements and arrangements are unaffected by these new agreements.

6) IMPLEMENTATION The Union and the Company have agreed a plan for implementation, including joint communications which the Company will issue to all Employees covered by the new Recognition Agreement. This includes: a) The agreements are treated as effective from the date the Union confirms acceptance of the Company offer, except as stated otherwise. b) The Parties will publish the agreements in full on relevant web sites. c) The amendments in respect of 1/75th pension accrual entitlements, increase in basic pay and consolidation of Disturbance Allowance will be effective from 1st October 2007. d) Between two and three months after the agreements are effective, the Company will inform individuals in the Bargaining Unit clarifying which contractual redundancy provisions apply to them.

Settlement agreement: 20th September 2007 Page 5 of 6 e) The Company will send a jointly agreed communication (by post and email) to all Employees in scope of the new Recognition Agreement covering contract clauses, this Settlement Agreement, new Recognition Agreement, grievance and disciplinary changes, redundancy and redeployment arrangements, the exclusion procedure and information on where to read the agreements. The exclusion procedure will take effect from the date this is sent out. f) Prior to sending out the joint communication, the Company will provide the information as specified in 5.6 of the Recognition Agreement. g) Where Employees receive more than one pay rise (e.g. disturbance allowance, £150) from 1st October 2007, this will be itemised in their pay review letter. h) To ease the workload during initial implementation of the new agreements, the time periods in Annex 5 will be varied. For requests to be excluded from the Bargaining Unit made during the first three calendar months from the email/letter going to Employees, the “cooling off” period will be six weeks and the period during which they cannot reverse a previous decision will be twelve calendar months. i) Any grievance already lodged under the procedures set out in the old Procedure Agreement at the effective date of these agreements will continue to be dealt with under those procedures. Both Parties intend to put in place training to support the new agreements. This will include joint training for managers, HR and representatives. Both the Union and the Company will use a jointly agreed statement with which to contact MPs, media, customers etc who were contacted during the course of the dispute to assure them that a satisfactory settlement has been reached.

7) SIGNATORIES

On behalf of

Fujitsu Services (names & signatures)

UNITE – The Union (names & signatures)

Witnessed by ACAS (name & signature)

Date the offer was accepted: 11th September 2007

Settlement agreement: 20th September 2007 Page 6 of 6