Document:

<PAGE>
                                                                  EXHIBIT 4.122

                                                         CONFIDENTIAL TREATMENT
                                                           REQUESTED BY MARCONI
                                                              CORPORATION PLC

                                 DATED 23 MAY 2003

                  (1)      MARCONI CORPORATION PLC

                  (2)      CSC INTERNATIONAL SYSTEMS MANAGEMENT INC.

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                          ASSET TRANSFER AGREEMENT (CSC)

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                         STRICTLY PRIVATE AND CONFIDENTIAL

                           MAYER, BROWN, ROWE & MAW LLP
                                 11 Pilgrim Street
                                  London EC4V 6RW

                                Tel: 020-7248 4282
                                Fax: 020-7248 8155
                             Ref: 965/764/30745.00009

IN THIS EXHIBIT, THE NOTATION "[***]" (OR OTHER SIMILAR NOTATION) INDICATES THAT
CONFIDENTIAL MATERIAL HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT. THE MATERIAL SO OMITTED HAS BEEN FILED SEPARATELY WITH THE SEC.
<PAGE>
                                    CONTENTS

<TABLE>
<CAPTION>
CLAUSE            SUBJECT MATTER                                                                      PAGE

<S>               <C>                                                                                 <C>
  1.              Definitions and Interpretation                                                         1
  2.              Transfer Agreements                                                                   10
  3.              Termination                                                                           11
  4.              Conditions                                                                            13
  5.              Consideration                                                                         16
  6.              Period to Completion                                                                  16
  7.              Warranties                                                                            18
  8.              Mutual Representations                                                                19
  9.              Assignment and Third Party Rights                                                     19
  10.             Entire Agreement                                                                      21
  11.             Notices                                                                               21
  12.             Amendments and Waivers                                                                23
  13.             Severability                                                                          23
  14.             Costs                                                                                 24
  15.             Continuing Effect                                                                     24
  16.             Counterparts                                                                          24
  17.             Announcements and Confidentiality                                                     24
  18.             Dispute Resolution                                                                    26
  19.             Arbitration                                                                           28
  20.             Governing Law and Jurisdiction                                                        29
  21.             Indemnification Procedure                                                             29
  22.             Conflict                                                                              30
</TABLE>

                                   SCHEDULES

Schedule 1A -     Transfer Agreement (Territories other than Italy)
Schedule 1B -     Transfer Agreement (Italy)
Schedule 2 -      Territories
Schedule 3 -      Internal Services
Schedule 4 -      Warranties
Schedule 5 -      Limitations on Claims
Schedule 6 -      Budget

<PAGE>
                            ASSET TRANSFER AGREEMENT

DATE:    23 MAY 2003

PARTIES:

(1)      MARCONI CORPORATION PLC, a company incorporated under the laws of
         England and Wales with registered number 67307, whose registered
         office is at New Century Park, PO Box 53, Coventry, CV3 1HJ, United
         Kingdom ("MARCONI"); and

(2)      CSC INTERNATIONAL SYSTEMS MANAGEMENT INC., a company incorporated
         under the laws of Nevada, USA whose principal place of business is at
         2100 East Grand Avenue, El Segundo, CA 90245, USA ("CSC").

BACKGROUND:

(A)      Marconi wishes to outsource the provision of certain information
         technology services to CSC on the terms of an agreement (the "MASTER
         SERVICES AGREEMENT") of the same date as this Agreement.

(B)      It has been agreed as part of this outsourcing that Marconi or its
         nominees shall transfer to CSC or its nominees certain equipment,
         personnel and contracts which are required for the provision of the
         Services.

(C)      Accordingly Marconi and CSC have agreed to enter into this Agreement
         to give effect to the transactions described above.

IT IS NOW AGREED THAT:

1.       DEFINITIONS AND INTERPRETATION

1.1      DEFINED TERMS

         In this Agreement the following definitions apply unless the context
         otherwise requires:

         "AGREED TERMS" means, in relation to any document, that document in
         the terms agreed between the Parties and signed or initialled for
         identification purposes only by or on behalf of each of them prior to
         execution of this Agreement;

         "AGREEMENT" means the body of this agreement together with its
         schedules;

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         "ASSETS" means the IT Equipment and the In-Scope Contracts to be sold
         to and purchased by CSC or CSC's Nominee under a Transfer Agreement,
         and "ASSET" shall mean any one of them;

         "BT ASSET TRANSFER AGREEMENT" means the agreement between Marconi,
         Marconi Communications Limited, British Telecommunications plc and CSC
         of the same date as this Agreement providing (amongst other things)
         for the transfer of certain assets and staff;

         "BT SUB-CONTRACT" means the agreement between CSC and British
         Telecommunications plc of the same date as this Agreement, providing
         (amongst other things) for the sub-contracting to BT of certain of
         CSC's obligations under the Master Services Agreement;

         "BUDGET" means the notional costs in respect of the Internal Services
         set forth in Schedule 6 (Budget);

         "BUSINESS DAY" means any day when clearing banks are open for business
         in the City of London for the transaction of normal banking business,
         other than a Saturday, Sunday or bank or public holiday recognised in
         England;

         "COMPLETION DATE" means, in relation to a Phase 1 Territory, the Phase
         1 Completion Date and, in relation to a Phase 2 Territory, the Phase 2
         Completion Date for that Territory;

         "CONDITIONS" means, in relation to any Territory, the conditions
         defined as "Conditions" in the Transfer Agreement relating to that
         Territory;

         "CONTROL" means the beneficial ownership of more than fifty per cent
         (50%) of the issued share capital with full voting rights of, or the
         legal power to direct or cause the direction of, the general
         management of the company, partnership or other entity in question or
         the holding company of the company, partnership or other entity in
         question, and "CONTROLLED" shall be construed accordingly;

         "CSC GROUP" means all or any of the following from time to time: CSC,
         its subsidiaries and subsidiary undertakings and any parent
         undertaking of CSC and all other subsidiaries and subsidiary
         undertakings of any parent undertaking of CSC, and "MEMBER OF THE CSC
         GROUP" shall be construed accordingly;

         "CSC'S NOMINEE" means a member of the CSC Group (other than CSC)
         identified in Schedule 2 (Territories) or notified to Marconi
         following signature of this Agreement

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         in relation to a Territory for the purpose of entering into a Transfer
         Agreement in that Territory;

         "CSC SERVICE DELIVERY MANAGER" means the person appointed as such by
         CSC and notified to Marconi from time to time;

         "CURRENT CONTRACTS" means the Equipment Contracts, the Maintenance
         Contracts, the Operating System Licences, the Third Party Supply
         Contracts and the Vehicle Leases;

         "DISCLOSURE LETTER" means the disclosure letter together with its
         annexures having the same date as this Agreement from Marconi to CSC,
         as updated by the matters notified to CSC pursuant to paragraph 1.3(a)
         of Schedule 2 (Employment Provisions) of each Transfer Agreement;

         "EMPLOYEES" means the persons identified in Schedule 3 (Employees) to
         any Transfer Agreement;

         "EQUIPMENT CONTRACTS" means all hire purchase agreements, leasing
         agreements, lease purchase agreements, credit sale agreements and
         agreements for conditional sale or sale by instalments, in each case
         relating to hardware and information technology assets and equipment
         located in a Territory and used for the purpose of the Internal
         Services, and entered into by members of the Marconi Group, including
         those agreements listed in Part 1 of Schedule 1 (Equipment Contracts)
         of any of the Transfer Agreements and any such agreements identified
         as part of a True-up Process;

         "GOVERNMENTAL AUTHORITY" means any nation or government, any state,
         regional, provincial, territorial, local or other political
         subdivision thereof, or any supranational authority and any entity or
         official exercising executive, legislative, judicial, quasi-judicial,
         regulatory or administrative functions of or pertaining to government;

         "GROUP" means in relation to any person (other than Marconi), all or
         any of the following from time to time: that person, its subsidiaries
         and subsidiary undertakings, any parent undertaking of that person,
         and all other subsidiaries or subsidiary undertakings of any parent
         undertaking of that person and, in the case of Marconi, means the
         Marconi Group, and "MEMBER OF THE GROUP OF" any person shall be
         construed accordingly;

         "ICTA" means the Income and Corporation Taxes Act 1988 and any
         regulations made under it;

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         "IN-SCOPE CONTRACT" means any Current Contract the costs of which are
         included in the Budget as verified under a True-up Process or included
         in the Charges (as defined in the Master Services Agreement) pursuant
         to a True-up Process, which remains to be fully discharged immediately
         before the Phase 1 Completion Date to the extent the Current Contract
         relates either to IT Equipment located in a Phase 1 Territory or to
         Internal Services delivered in a Phase 1 Territory, or immediately
         before the relevant Phase 2 Completion Date to the extent the Current
         Contract relates either to IT Equipment located in a Phase 2 Territory
         or to Internal Services delivered in a Phase 2 Territory, and which is
         not a Retained Contract;

         "IN-SCOPE CONTRACT COMPLETION DATE" means, in relation to any In-Scope
         Contract, the date on which legal and equitable title and risk in that
         In-Scope Contract passes to CSC or the relevant CSC Nominee under the
         relevant Transfer Agreement;

         "INTERNAL SERVICES" means all or any of the services referenced in
         Part 1 of Schedule 3 (Internal Services) provided by the Marconi Group
         from its own resources or procured by the Marconi Group from third
         parties, and delivered to or used by the Marconi Group as at the
         Commencement Date at the sites referenced in Part 2 of Schedule 3
         (Internal Services);

         "IT EQUIPMENT" means such of the hardware and information technology
         assets and equipment as is located in any Territory and either listed
         in the Marconi Asset Registers or used to provide the Internal
         Services, and any Leased Equipment to which a Transfer Agreement
         refers title to which is acquired by the Marconi Group before
         Equipment Completion (as defined in that Transfer Agreement),
         excluding (in either case) the Retained Equipment;

         "IT SERVICES" means the services referenced in Schedule 3 (Internal
         Services) (and for the purposes of this definition all references to
         "the Supplier" in the description of the services referenced in
         Schedule 3 shall be deemed to be references to CSC);

         "LEASED EQUIPMENT" means the hardware and other information technology
         assets and equipment that are subject to the Equipment Contracts;

         "LOSS" means any or all loss, damage, cost and expense;

         "MAINTENANCE CONTRACTS" means all agreements for, or parts of
         agreements relating to, the servicing, maintenance, repair or support
         of any of the IT Equipment or the Leased Equipment entered into by
         members of the Marconi Group for the purposes of the Internal
         Services, or of any software entered into by members of the Marconi
         Group for the purpose of the Internal Services, including those
         agreements listed in

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         Part 2 of Schedule 1 (Maintenance Contracts) of any of the Transfer
         Agreements and any such agreements identified as part of a True-up
         Process;

         "MARCONI ASSET REGISTERS" means the registers of hardware and
         information technology assets and equipment owned by the Marconi Group
         in the Agreed Terms;

         "MARCONI CONTRACT MANAGER" means the person appointed as such by
         Marconi and notified to CSC from time to time;

         "MARCONI CONTROLLED GROUP" means Marconi, and any other person which
         from time to time Controls, is Controlled by, or is under common
         Control with Marconi and "MEMBER OF THE MARCONI CONTROLLED GROUP"
         shall be construed accordingly;

         "MARCONI GROUP" means all or any of the following from time to time:

         (a)      Marconi;

         (b)      Marconi's wholly-owned subsidiaries and wholly-owned
                  subsidiary undertakings;

         (c)      any parent undertaking of Marconi and all other wholly-owned
                  subsidiaries and wholly-owned subsidiary undertakings of any
                  parent undertaking of Marconi; and

         (d)      Marconi Communications South Africa (pty) Ltd,

         and "MEMBER OF THE MARCONI GROUP" shall be construed accordingly;

         "MASTER SERVICES AGREEMENT" has the meaning given in Background (A)
         and any reference in this Agreement to terms as defined in the Master
         Services Agreement shall be a reference to the Master Services
         Agreement in the form in which it is signed on the date of this
         Agreement;

         "OPERATING SYSTEMS LICENCES" means all licences of operating system
         software installed or running on the IT Equipment or the Leased
         Equipment to which a member of the Marconi Group is a party (and
         which, in the case of Leased Equipment, does not form part of the
         relevant Equipment Contract), including those licences which are
         listed in Part 4 of Schedule 1 (Current Contracts) of any of the
         Transfer Agreements and any such licences identified during a True-up
         Process, excluding Maintenance Contracts;

         "PARTY" means each of Marconi and CSC;

                                       5
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         "PHASE 1 COMPLETION" means completion of the sale and purchase of such
         of the contracts listed in Schedule 1 (Current Contracts) to each
         Transfer Agreement relating to a Phase 1 Territory as are In Scope
         Contracts and the completion of the sale of the IT Equipment located
         in each of the Phase 1 Territories by the relevant member of the
         Marconi Group to CSC or the relevant CSC Nominee, in each case in
         accordance with Clause 7 (Completion) of the applicable Transfer
         Agreement;

         "PHASE 1 COMPLETION DATE" means:

         (a)      1 June 2003; or

         (b)      the date of the Business Day on which the last of the
                  Conditions to be satisfied in each of the Phase 1 Territories
                  is satisfied or waived by the Parties,

         whichever is the later;

         "PHASE 1 LONG STOP DATE" means 1 July 2003;

         "PHASE 1 TERRITORY" means each of the United Kingdom, Ireland, the
         United States of America and Canada;

         "PHASE 2 COMPLETION" means, in relation to any Phase 2 Territory, the
         completion of the sale and purchase of such of the contracts listed in
         Schedule 1 (Current Contracts) to the Transfer Agreement(s) relating
         to that Phase 2 Territory as are In Scope Contracts and the sale of
         the IT Equipment located in that Phase 2 Territory by the relevant
         member of the Marconi Group to CSC or the relevant CSC Nominee, in
         each case in accordance with Clause 7 (Completion) of the applicable
         Transfer Agreement;

         "PHASE 2 COMPLETION DATE" means, in relation to all (but not some
         only) of the transactions required under Transfer Agreements to take
         place in the same Phase 2 Territory:

         (a)      27 June 2003; or

         (b)      the date of the Business Day on which the last of the
                  Conditions to be satisfied in that Phase 2 Territory is
                  satisfied or waived by the Parties,

         whichever is the later;

         "PHASE 2 LONG STOP DATE" means the date that is twelve (12) weeks
         after Phase 1 Completion;

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         "PHASE 2 TERRITORY" means any country in the world where Internal
         Services are delivered on the date of this Agreement other than a
         Phase 1 Territory;

         "REGULATIONS" means, in relation to a UK Transferring Employee, the
         regulations implementing the provisions of EC Directive No. 77/187
         dated 14 February 1977 (as amended by EU Directive No. 98/50 dated 29
         June 1998 and by EU Directive No. 2001/23 (to the extent that EU
         Directive No. 2001/23 has been implemented)) including the Transfer of
         Undertakings (Protection of Employment) Regulations 1981 applicable to
         that UK Transferring Employee's terms and conditions of employment;

         "RETAINED CONTRACT" means any Current Contract which CSC elects not to
         purchase under the terms of any Transfer Agreement or which, and then
         only to the extent it, relates to the Retained Equipment;

         "RETAINED EQUIPMENT" means all hardware and information technology
         assets and equipment owned by a member of the Marconi Group and either
         not located in any Territory or used exclusively for any purpose other
         than the Internal Services;

         "TERRITORY" means, individually, each of the countries identified in
         Schedule 2 (Territories) and "TERRITORIES" shall mean more than one of
         them;

         "THIRD PARTY SUPPLY CONTRACTS" means the contracts, engagements and
         orders for the sale or supply to members of the Marconi Group of goods
         or services entered into by members of the Marconi Group for the
         purpose of the Internal Services, including those agreements listed in
         Part 3 of Schedule 1 (Current Contracts) of any of the Transfer
         Agreements and any such agreements identified during a True-up
         Process, excluding Maintenance Contracts;

         "TRANSACTION TAX" means any form of value added tax, stamp duty, sales
         tax, registration tax, fees or surcharges or similar tax or duty
         levied by a Governmental Authority upon the transfer of the Assets in
         any Territory, and shall include any interest or penalty incurred in
         connection with a failure or late payment thereof;

         "TRUE-UP PROCESS" shall have the meaning given to it in the Master
         Services Agreement;

         "TRANSFER AGREEMENT" means an agreement in writing in relation to a
         Territory identified in Schedule 2 (Territories) between the parties
         identified in that Schedule, substantially in the form of Schedule 1A
         (Transfer Agreement) in the case of Territories other than Italy, or
         substantially in the form of Schedule 1B (Italian Transfer Agreement)
         in the case of Italy, with such amendments (if any) as are

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         appropriate to reflect any Regulated Activities (as defined in the
         Master Services Agreement) or any applicable law or regulation
         relevant to that Territory;

         "VEHICLE LEASES" means all agreements entered into by members of the
         Marconi Group with a third party under which either vehicles are
         leased by the relevant member of the Marconi Group for the benefit of
         any Employees or the relevant member of the Marconi Group guarantees
         an Employee's obligations in respect of a leased vehicle, including
         those agreements listed in Part 5 of Schedule 1 (Current Contracts) of
         any Transfer Agreement and any such agreements identified as part of a
         True-up Process;

         "VENDOR EQUIPMENT CONSIDERATION" means in relation to any IT Equipment
         the consideration payable by the relevant member of the CSC Group to
         the relevant member of the Marconi Group in respect of that IT
         Equipment under the Transfer Agreement relating to the Territory in
         which that IT Equipment is located; and

         "WARRANTIES" means the warranties set out in Schedule 4 (Warranties).

1.2      INTERPRETATION

         In this Agreement:

         (a)      unless the context otherwise requires, all references to:

                  (i)      a "CLAUSE" or a "SCHEDULE" is to a clause of or a
                           schedule to this Agreement and to a "PART" or a
                           "PARAGRAPH" of a Schedule is to a part or a
                           paragraph of that Schedule;

                  (ii)     the word "INCLUDES" or "INCLUDING" shall be
                           construed without limitation to the generality of
                           the preceding words;

                  (iii)    this "AGREEMENT" includes its Schedules, and
                           references to this Agreement as amended from time to
                           time in accordance with its terms (as amended
                           accordingly);

                  (iv)     the "RIGHTS" of any person (including of any Party)
                           shall mean the rights and remedies available to that
                           person under this Agreement or otherwise;

                  (v)      "INDEMNIFY" means to indemnify and keep indemnified
                           in respect of the Loss in question and, where any
                           tax or other duty is chargeable on

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                           or in relation to the Loss or its payment, then such
                           indemnity shall be on an after tax basis;

                  (vi)     a "PERSON" include any individual, firm,
                           corporation, unincorporated association, government,
                           state or agency of state, association, partnership
                           or joint venture (whether or not having a separate
                           legal personality);

                  (vii)    a "COMPANY" include any company, corporation or
                           other body corporate wherever and however
                           incorporated or established;

                  (viii)   a "DOCUMENT" are to that document as varied,
                           supplemented or replaced from time to time;

                  (ix)     "WRITING" shall include any modes of reproducing
                           words in a legible and non-transitory form;

                  (x)      "DOLLARS" or "$" is to the lawful currency of the
                           United States of America as of the Commencement
                           Date;

                  (xi)     "EUROS" or "(EURO)" is to the lawful currency of
                           participating member states of the European Monetary
                           Union as of the Commencement Date;

                  (xii)    "STERLING" or "(POUND)" or "POUNDS" is to the lawful
                           currency of the United Kingdom; and

                  (xiii)   a TIME OF THE DAY is to London time and references
                           to a "DAY" are to a period of 24 hours running from
                           midnight to midnight;

         (b)      the headings shall be ignored in construing this Agreement;

         (c)      unless the context otherwise requires, words or phrases
                  importing the singular shall be interpreted to include the
                  plural and vice versa; and

         (d)      unless the context otherwise requires, a statute or statutory
                  provision is a reference to the statute or statutory
                  provision in force in England and Wales and includes any
                  consolidation or re-enactment, modification or replacement of
                  it, any statute or statutory provision of which it is a
                  consolidation, re-enactment, modification or replacement and
                  any sub-ordinate legislation in force under any of the same
                  from time to time, but without in any case increasing the
                  liability of any Party under or in connection with this
                  Agreement.

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<PAGE>
1.3      COMPANIES ACT DEFINITIONS

         In this Agreement, unless the context otherwise requires, words and
         expressions defined in the Companies Act 1985 shall bear the meaning
         ascribed to them in that Act to the exclusion of any definition of the
         same words or expression in any other Legislation (as defined in the
         Master Services Agreement).

1.4      NO LIABILITY

         No Party shall be liable for a breach of this Agreement by any other
         Party save as expressly provided to the contrary in this Agreement.

2.       TRANSFER AGREEMENTS

2.1      On or as soon as reasonably practicable after the date of this
         Agreement, each Party shall or (as the case may be) shall procure that
         the members of its Group identified in Schedule 2 (Territories) in
         relation to a Territory shall enter into a Transfer Agreement with the
         members of each of the other Party's Group identified in Schedule 2
         (Territories) in relation to the same Territory.

2.2      A Transfer Agreement shall be entered into for the purposes of Clause
         2.1 (as between the parties thereto) when it is executed by the
         parties to it.

2.3      Marconi and CSC shall each procure that each member of its Group that
         is a party to a Transfer Agreement shall comply with the terms of that
         Transfer Agreement. Where a party to a Transfer Agreement leaves the
         Marconi Group or CSC Group (as the case may be) (the "DEPARTING
         MEMBER"), then Marconi or CSC (as the case may be) undertakes either
         to:

         (a)      procure compliance by the Departing Member with the Departing
                  Member's outstanding obligations under the Transfer
                  Agreement;

         (b)      comply with the outstanding obligations of the Departing
                  Member under the Transfer Agreement, in place of the
                  Departing Member; or

         (c)      procure that another member of the Marconi Group or the CSC
                  Group (as the case may be) complies with the outstanding
                  obligations of the Departing Member under the Transfer
                  Agreement, in place of the Departing Member.

2.4      Where any member of any of the Marconi Group or the CSC Group (as the
         case may be) which is a party to a Transfer Agreement (the "PROCURING
         MEMBER") is subject to an obligation under a Transfer Agreement to
         procure that another member of its

                                      10
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         Group undertakes any action but the Procuring Member is unable to
         comply with such obligation to procure, then Marconi or CSC (as the
         case may be) shall comply with such obligation to procure in place of
         the relevant Procuring Member.

2.5      Each Party warrants to the other that the parties identified in
         Schedule 2 (Territories) as members of its Group are members of its
         Group. Marconi warrants to CSC that Marconi Communications South
         Africa (pty) Ltd is a member of the Marconi Controlled Group and
         undertakes to inform CSC promptly in the event that Marconi
         Communications South Africa (pty) Ltd ceases for any reason to be a
         member of the Marconi Controlled Group.

3.       TERMINATION

3.1      TERMINATION OF WHOLE AGREEMENT

         This Agreement shall terminate with immediate effect on the earlier of
         the following:

         (a)      if all of the Conditions to be satisfied in (or otherwise in
                  respect of) the Phase 1 Territories have not been satisfied
                  or waived by Marconi and CSC on or before the Phase 1 Long
                  Stop Date, on the Phase 1 Long Stop Date;

         (b)      if notice is given by any party to the Master Services
                  Agreement at any time before Phase 1 Completion to terminate
                  the Master Services Agreement, on the date such notice is
                  given in accordance with the Master Services Agreement (or,
                  where the Master Services Agreement terminates under the
                  first sentence of clause 2.1(2) of the Master Services
                  Agreement, on the date of such termination); or

         (c)      if notice is given by either party to the BT Sub-Contract at
                  any time before Phase 1 Completion to terminate the BT
                  Sub-Contract, on the date such notice is given in accordance
                  with the BT Sub-Contract; or

         (d)      if the BT Asset Transfer Agreement terminates at any time
                  before Phase 1 Completion, on the termination of the BT Asset
                  Transfer Agreement.

3.2      TERMINATION IN RELATION TO PHASE 2 TERRITORIES

(1)      This Agreement shall terminate in relation to a Phase 2 Territory (the
         "TERMINATED TERRITORY") with immediate effect on the earlier of the
         following:

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         (a)      if all of the Conditions to be satisfied in (or otherwise in
                  respect of) that Terminated Territory have not been satisfied
                  or waived by Marconi and CSC on or before the Phase 2 Long
                  Stop Date, on the Phase 2 Long Stop Date; or

         (b)      if notice is given by either party to the Master Services
                  Agreement at any time before the Phase 2 Long Stop Date to
                  terminate the Master Services Agreement or such part thereof
                  as applies to the provision or delivery of services in the
                  Terminated Territory, on the date such notice is given in
                  accordance with the Master Services Agreement (or where the
                  Master Services Agreement or the relevant part of it as
                  applies to the provision of delivery of services in the
                  Terminated Territory terminates under clause 2.1(2) of the
                  Master Services Agreement, on the date of such termination);
                  or

         (c)      if notice is given by either party to the BT Sub-Contract at
                  any time before the Phase 2 Long Stop Date to terminate the
                  BT Sub-Contract or such part thereof as applies to the
                  provision or delivery of services in the Terminated
                  Territory, on the date such notice is given in accordance
                  with the BT Sub-Contract (or where the BT Sub-Contract
                  terminates automatically before the Phase 2 Long Stop Date,
                  on the date of such termination); or

         (d)      if the BT Asset Transfer Agreement terminates in relation to
                  the Terminated Territory, on the termination of the BT Asset
                  Transfer Agreement in relation to that Terminated Territory,

         except that this Agreement shall not so terminate where Completion (as
         defined in the applicable Territory Transfer Agreement) in relation to
         the Terminated Territory has already occurred.

(2)      Termination of this Agreement under Clause 3.2(1) in relation to one
         or more Phase 2 Territories shall not affect the application of this
         Agreement in relation to any other Territories.

3.3      CONSEQUENCES OF TERMINATION

(1)      Subject to Clauses 3.3(2) to (5), termination of this Agreement (in
         whole or part) shall not affect the rights of the Parties which have
         accrued before termination.

(2)      Where this Agreement terminates under Clause 3.1 (Termination of Whole
         Agreement), subject to Clauses 3.3(4) and 3.3(5), Marconi shall pay
         CSC such proportion of the Charges for such of the Transition Services
         (as defined in the Master Services Agreement) as relates to the
         provision of the IT Services as fairly and

                                      12
<PAGE>
         reasonably reflects the proportion of those Transition Services
         carried out by CSC in accordance with the Master Services Agreement as
         at the date of termination of this Agreement (full account being taken
         of services falling within those Transition Services provided by the
         Supplier's Authorised Sub-Contractors).

(3)      Where this Agreement terminates in relation to any Terminated
         Territory under Clause 3.2(1) (Termination in relation to Phase 2
         Territories), subject to Clause 3.3(4) and 3.3(5), Marconi shall pay
         CSC such proportion of the Charges for such of the Transition Services
         (as defined in the Master Services Agreement) as relates to the
         provision of the IT Services in the relevant Terminated Territory as
         fairly and reasonably reflects the proportion of those Transition
         Services carried out by CSC in accordance with the Master Services
         Agreement as at the date of termination of this Agreement (full
         account being taken of services falling within those Transition
         Services provided by the Supplier's Authorised Sub-Contractors).

(4)      Where this Agreement terminates under Clauses 3.1(b) or 3.2(1)(b) and
         such termination has arisen as a result of notice having been given to
         terminate the Master Services Agreement by Marconi for CSC's breach,
         then Marconi shall not be liable to pay any amount under Clauses
         3.3(2) or 3.3(3).

(5)      Where this Agreement terminates under Clauses 3.1(c) or 3.2(1)(c) then
         Marconi shall not be liable to pay any amounts under Clauses 3.3(2) or
         3.3(3).

(6)      For the avoidance of doubt, nothing in this Clause 3.3 shall preclude
         the Marconi Group from including in any claims for damages (on the
         grounds of wasted expenditure or otherwise) amounts in respect of
         Charges for Transition Services paid by the Marconi Group on or before
         the date of termination of this Agreement and the rights contained in
         this Clause 3.3 are cumulative and are not exclusive of any rights
         provided by law or otherwise.

4.       CONDITIONS

4.1      SATISFACTION OF THE CONDITIONS

(1)      Each Party undertakes to use its reasonable endeavours to procure the
         satisfaction of the Conditions applicable to the Phase 1 Territories
         as soon as possible and in any event by the Phase 1 Long Stop Date.

(2)      Each Party undertakes to use its reasonable endeavours to procure the
         satisfaction of the Conditions applicable to each Phase 2 Territory as
         soon as possible and in any event by the Phase 2 Long Stop Date.

                                      13
<PAGE>
(3)      Each Party shall keep the other regularly advised of its progress
         towards the satisfaction of its obligations under this Clause 4.1.

(4)      For the avoidance of doubt and without limitation to the other
         provisions of this Clause 4.1, the Parties acknowledge and agree that
         the transactions contemplated in this Agreement and in each Transfer
         Agreement are subject to the undertaking and completion of all
         necessary consultations with any works council, trade union, employee
         or staff representative or any other form of staff representative as
         may be required by the law of any relevant Territory and that,
         accordingly, where as a result of the outcome of any such consultation
         any amendment is required to the Master Services Agreement, such
         amendments (and the impact of such amendments on the Charges (as
         defined in the Master Services Agreement) shall be subject to Change
         Control (as defined in the Master Services Agreement) pursuant to the
         Master Services Agreement.

4.2      APPLICATION TO THE BUNDESKARTELLAMT IN GERMANY AND OTHER COMPETITION
         AUTHORITIES

(1)      Without affecting the general nature of Clause 4.1 (Satisfaction of
         the Conditions), CSC shall, or shall procure that the relevant member
         of its Group shall, make all necessary filings with the
         Bundeskartellamt for granting such consents which are required to
         satisfy paragraph (1) of the definition of Conditions in the Transfer
         Agreement relating to Germany in relation to merger control
         requirements, and shall use their reasonable endeavours to prosecute
         such filing until the approval is granted.

(2)      Without affecting the general nature of Clause 4.1 (Satisfaction of
         the Conditions), CSC shall, or shall procure that the relevant member
         of its Group shall, make all necessary filings for granting such
         consents which are required to satisfy paragraph (1) of the definition
         of Conditions in each Transfer Agreement respect of any other relevant
         merger control rules, in addition to any merger control approvals or
         clearances which CSC considers to be required under any relevant
         merger control laws providing for voluntary notification and shall use
         their reasonable endeavours to prosecute such filings until the
         approval is granted.

(3)      Marconi shall, or shall procure that relevant member(s) of the Marconi
         Controlled Group shall provide all assistance and information as may
         be reasonably necessary to prosecute such filings as set out in
         Clauses 4.2(1) and (2).

                                      14
<PAGE>
(4)      Marconi and CSC shall, or shall procure that the relevant member(s) of
         its Group shall execute all deeds and other documents as may be
         reasonably necessary to prosecute such filings as set out in Clauses
         4.2(1) and (2).

(5)      If any of the transactions envisaged by this Agreement (or any of the
         Transfer Agreements) are referred by the UK Secretary of State to the
         Competition Commission, then (to the extent of that referral) those
         transactions will not proceed further until the resolution of the
         procedure. The Parties shall cooperate with each other to satisfy the
         Competition Commission with regard to such transactions, and in taking
         any reasonable steps to allow either the IT Services (as defined in
         the Master Services Agreement) to continue or to enable Marconi to
         continue the Internal Services.

(6)      Where, following Phase 1 Completion (in respect of any Phase 1
         Territory) or Phase 2 Completion (in respect of any Phase 2
         Territory), a Governmental Authority orders in relation to that Phase
         1 Territory or Phase 2 Territory (as the case may be) the unwinding of
         any of the transactions envisaged by, or the divesture of any Assets
         purchased or Employees transferred under, this Agreement or any
         Transfer Agreement, then the Parties shall take all steps as may be
         lawfully required by that Governmental Authority in connection with
         such unwinding or divestiture and (except to the extent the following
         would conflict with such requirements of the Governmental Authority):

         (a)      CSC shall and shall procure that the relevant CSC Nominee
                  shall sell, and Marconi shall and shall procure that the
                  relevant members of the Marconi Group shall purchase the IT
                  Equipment at a price which is equal to the Vendor Equipment
                  Consideration less a sum equal to the amount by which the IT
                  Equipment has been depreciated in the books of the CSC Group
                  between Completion and the date of such sale and purchase ;
                  and

         (b)      the Parties shall use reasonable endeavours to agree and
                  implement such other arrangements as may be required to put
                  them back in the position in relation to that Phase 1
                  Territory or Phase 2 Territory (as the case may be) which
                  they were in prior to the signature of this Agreement and the
                  relevant Transfer Agreement.

(7)      The Parties' reasonable costs of complying with this Clause 4.2
         (including payments relating to filing fees payable to any national
         authorities in respect of any merger control filings as set out in
         Clauses 4.2(1), (2) and (3)) shall be aggregated, and the resultant
         aggregate amount shared in equal amounts between all of the Parties.

                                      15
<PAGE>
5.       CONSIDERATION

5.1      TAXATION

         The Parties undertake to consult and to co-operate with each other to
         take, so far as is reasonable, such actions as may be required to
         optimise their taxation position and their position as regards legal
         and regulatory compliance, arising from this Agreement and the
         Transfer Agreements.

5.2      METHOD OF PAYMENT

(1)      Each payment to be made under any Transfer Agreement to the Marconi
         Group in respect of the Vendor Equipment Consideration and the Vendor
         Contracts Consideration (as defined in any such Transfer Agreement)
         shall (except as otherwise required by applicable law) be made by
         means of a single payment in sterling to Marconi to the account
         specified in Clause 5.2(2), for itself and as agent for any member of
         the Marconi Group which is a party to a Transfer Agreement and to whom
         a payment is to be made, and any such payment to be made to the
         Marconi Group shall (except as otherwise required by applicable law)
         be made by CSC for itself and as agent for any member of the CSC Group
         which is a party to a Transfer Agreement and by whom a payment is to
         be made.

(2)      The account details for the purpose of Clause 5.2(1) are:

         Bank:             HSBC Bank plc
         Sort code:        40-05-30
         Account no:       42074451
         Ref:              Marconi Corporation plc Treasury

6.       PERIOD TO COMPLETION

6.1      MAINTENANCE OF IT EQUIPMENT DURING PERIOD TO COMPLETION

(1)      Marconi undertakes to CSC and the CSC Nominees to procure that during
         the Period to Completion (as defined in Clause 6.1(2)), the IT
         Equipment shall only be used for the purpose for which it was used
         before the date of this Agreement, and in particular (but without
         limitation), Marconi shall ensure that all reasonable steps are taken
         to preserve and protect the IT Equipment and that the IT Equipment is
         not charged, encumbered, leased or disposed of, and that no agreement
         is entered into to do any of the same.

(2)      For the purposes of Clause 6.1(1), "PERIOD TO COMPLETION" means:

                                      16
<PAGE>
         (a)      in respect of any IT Equipment located in a Phase 1
                  Territory, the period commencing on the date of this
                  Agreement and ending on Phase 1 Completion; and

         (b)      in respect of any IT Equipment located in a Phase 2
                  Territory, the period commencing on the date of this
                  Agreement and ending on the Phase 2 Completion relating to
                  that Phase 2 Territory.

6.2      CURRENT CONTRACTS

(1)      Marconi undertakes to CSC and the CSC Nominees to procure that between
         the date of this Agreement and, in relation to any particular In-Scope
         Contract, the relevant In-Scope Contract Completion Date:

         (a)      it shall and shall procure that each member of the Marconi
                  Group shall observe and comply with all the terms of the
                  In-Scope Contract; and

         (b)      neither Marconi nor any member of the Marconi Group shall
                  amend, renew or terminate any In-Scope Contract.

(2)      Marconi undertakes to CSC and the CSC Nominees to procure that no
         member of the Marconi Group enters into any new contract or
         arrangement relating to any Internal Services whilst those Internal
         Services are being provided by the Marconi Group, without obtaining
         CSC's prior written consent, which consent shall not be unreasonably
         withheld or delayed.

(3)      Marconi shall, and shall procure that the relevant members of the
         Marconi Group shall as soon as reasonably practicable:

         (a)      subject to the consent of any party required to disclose the
                  terms of any individual Current Contract, disclose to CSC or
                  the relevant CSC Nominee copies of the Current Contracts; or

         (b)      where the requisite consent has not been obtained, provide to
                  CSC or the relevant CSC Nominee such information concerning
                  the contents of the Current Contract as may otherwise be
                  disclosed without placing Marconi or the relevant member of
                  the Marconi Group in breach of the terms of that Current
                  Contract or any other obligations owed to any counter-party
                  to the relevant Current Contract.

                                      17
<PAGE>
(4)      Any Current Contract shall cease to be subject to this Clause 6.2
         (Current Contracts) if CSC or CSC's Nominee elects not to purchase it
         under the terms of the relevant Transfer Agreement.

7.       WARRANTIES

7.1      WARRANTIES

         Marconi warrants to CSC that the Warranties are true, accurate and not
         misleading as at the date of this Agreement.

7.2      LIMITATIONS ON CLAIMS

         The liability of Marconi under the Warranties [***]shall (except in
         the case of fraud) be limited as set out in Schedule 5 (Limitations on
         Claims). The rights and remedies of CSC in respect of any breach of
         Warranty by Marconi shall not be affected by:

         (a)      completion of the purchase of the Assets; or

         (b)      any investigation or inquiry made or to be made by or on
                  behalf of CSC following the date of this Agreement.

7.3      STATUS OF WARRANTIES

         CSC acknowledges that in entering into this Agreement and each of the
         other documents referred to herein it has not relied on any other
         statement, representation, act, fact, circumstance or warranty save
         and except for the Warranties and neither CSC nor any member of the
         CSC Group shall, save in the case of fraud or fraudulent
         misrepresentation, have any right of recovery or remedy in respect of
         a breach of the Warranties or of Clause 8 (Mutual Representations)
         save as expressly provided in this Agreement or any Transfer
         Agreement.

7.4      NO RIGHT OF A PARTY TO RESCIND

         The sole remedy of CSC for breach by Marconi of the Warranties and/or
         a breach by Marconi of Clause 8 (Mutual Representations) and the sole
         remedy of Marconi for a breach by CSC of Clause 8 (Mutual
         Representations) shall (in each case) be damages and each Party
         acknowledges that it shall have no right to rescind this Agreement in
         any circumstances and irrevocably waives any other remedies it may
         have in relation to a breach by the other of the Warranties or Clause
         8 (Mutual Representations) provided that nothing in this Clause 7.4
         shall operate to exclude any Party's liability for fraudulent
         misrepresentation.

                                      18
<PAGE>
7.5      MEANING OF "SO FAR AS MARCONI IS AWARE"

         If any of the Warranties are expressed to be given "so far as Marconi
         is aware" or "to the best of the knowledge information and belief of
         Marconi", or words to that effect, then such expression shall be
         deemed to include an additional statement to the effect that the
         relevant Warranty has been made after reasonable enquiries.

7.6      WAIVER OF RIGHTS

         Marconi agrees with CSC to waive any rights or claims which it may
         have in respect of any misrepresentation, inaccuracy or omission in,
         or from, any information or advice supplied or given by any of the
         Employees on which Marconi may have relied in connection with the
         giving of the Warranties and the preparation of the Disclosure Letter.

7.7      EXCLUSION OF IMPLIED TERMS

         All warranties, conditions, or terms not set out in this Agreement and
         which would otherwise be implied or incorporated into this Agreement
         by reason of statute, common law or otherwise (other than as to the
         title to goods) are hereby excluded, except to the extent they may not
         be excluded or limited by law.

8.       MUTUAL REPRESENTATIONS

         Each Party represents to each other Party that it has full power and
         authority to execute, deliver and perform its obligations under this
         Agreement and that there are no existing agreements or arrangements
         with third parties, the terms of which prevent such Party from
         entering into or performing its obligations under this Agreement.

9.       ASSIGNMENT AND THIRD PARTY RIGHTS

9.1      ASSIGNMENT

(1)      Either CSC or Marconi may assign all or any of its rights or transfer
         all or any of its rights, obligations and liabilities under this
         Agreement to any member of its Group (provided that if any such
         assignee or transferee ceases at any time to be a member of the
         relevant Group it shall, at the request of the Marconi (in the case of
         an assignment or transfer by CSC) or CSC (in the case of an assignment
         or transfer by Marconi), immediately reassign and re-transfer all such
         rights, obligations and liabilities to a remaining member of the
         Group), and Marconi (in the case of an assignment or transfer by CSC)
         or CSC (in the case of an assignment or transfer by Marconi) consents
         to such an assignment or transfer and will execute all deeds or other

                                      19
<PAGE>
         documents, and do all such acts as the assigning Party may reasonably
         require in order to give effect to such assignment or transfer. Any
         such assignment or transfer shall not affect the assigning or
         transferring Party's outstanding obligations or liabilities under this
         Agreement for which it shall continue to remain liable in the event
         the Party receiving the assignment or transfer of the relevant rights,
         obligations and liabilities should fail to meet their obligations or
         liabilities in relation thereto.

(2)      Except as permitted under Clause 9.1(1), neither CSC nor Marconi may
         assign or transfer any of its rights, obligations or liabilities under
         this Agreement without the prior written consent of the other, such
         consent not to be unreasonably withheld.

(3)      Following any permitted assignment or transfer under Clause 9.1(1),
         any reference in this Agreement to Marconi or CSC (as the case may be)
         shall, where the context allows, include a reference to the assignee
         or transferee (as the case may be). Any permitted assignee or
         transferee shall be treated for all purposes as if it had been an
         original Party to (and been granted the relevant rights under) this
         Agreement.

9.2      CONTRACTS (RIGHTS OF THIRD PARTIES) ACT

         The Parties do not intend any provision of this Agreement to be
         enforceable by any third party pursuant to the Contracts (Rights of
         Third Parties) Act 1999.

9.3      THIRD PARTY BENEFICIARIES

(1)      Subject to Clause 9.3(2), Marconi shall from time to time indemnify
         CSC in respect of an amount equal to any and all agreed or proven Loss
         incurred or sustained by any CSC Nominee which arises in respect of a
         breach by Marconi of any of the provisions contained in Clauses 6.1
         (Maintenance of IT Equipment during Period to Completion), 6.2 (2) or
         6.2(3) (Current Contracts) and 7.1 (Warranties) (subject to the
         specific limitations set out in Schedule 5 (Limitations on Claims)),
         provided that the Loss would have been recoverable by the relevant CSC
         Nominee if it had been a party to this Agreement assuming all
         obligations and undertakings contained in such Clauses were also owed
         to the relevant CSC Nominee.

(2)      In no circumstances shall Marconi be liable both to CSC and to a CSC
         Nominee for Loss incurred or sustained by that CSC Nominee, and the
         amount of such Loss for which a claim may be made shall not exceed the
         amount which CSC would have been entitled to claim under this
         Agreement assuming that the Loss is question had in fact been incurred
         by CSC.

                                      20
<PAGE>
9.4      NO DIRECT CLAIMS BY CSC NOMINEES

         CSC shall procure that no CSC Nominee shall bring a claim against
         Marconi under or relating to this Agreement.

9.5      GUARANTEES

         If at any time Marconi ceases to own directly or indirectly (whether
         through shareholdings or otherwise) at least sixty five per cent (65%)
         by value of the net assets of the Marconi Group (excluding any member
         of the Marconi Group which was not a member of the Marconi Group as at
         the date of this Agreement), Marconi shall (as soon as reasonably
         practicable thereafter) procure that such member(s) of its Group
         (other than Marconi's parent undertaking) that, together with Marconi,
         do own such assets to that value, execute and deliver to CSC a
         guarantee in favour of CSC substantially in form set forth in Part 1
         of Schedule 23 (Form of Guarantees) of the Master Services Agreement.

10.      ENTIRE AGREEMENT

10.1     ENTIRE AGREEMENT

         This Agreement, the Transfer Agreements and the Master Services
         Agreement together represent the entire agreement between the Parties
         in relation to the sale and purchase of the Assets and supersede any
         previous agreement, whether written or oral, between the Parties in
         relation to that subject matter.

10.2     NO LIABILITY UNLESS STATEMENT MADE FRAUDULENTLY

         No Party shall have any liability in respect of any misrepresentation
         or other statement (apart from the Warranties and the representation
         contained in Clause 8 (Mutual Representations)) being false,
         inaccurate and/or incomplete unless it was made fraudulently.

11.      NOTICES

11.1     NOTICES

         All notices and other communications relating to this Agreement:

         (a)      shall be in English and in writing;

         (b)      shall be delivered by hand or sent by post or facsimile;

                                      21
<PAGE>
         (c)      shall be delivered or sent to the Party concerned at the
                  relevant address or number, as appropriate, and marked all as
                  shown in Clause 11.2 (Initial details) (subject to such
                  amendments as may be notified from time to time in accordance
                  with this Clause by the relevant Party to the other Parties);

         (d)      may in the case of any claim form, judgment or other notice
                  of process on any Party be delivered or sent to their
                  respective registered offices from time to time; and

         (e)      shall take effect:

                  (i)      if delivered, upon delivery;

                  (ii)     if posted, at the earlier of the time of delivery
                           and (if posted in the United Kingdom by first class
                           registered post) 10 am on the second Business Day
                           after posting; or

                  (iii)    if sent by facsimile, when a complete and legible
                           copy of the communication, whether that sent by
                           facsimile or a hard copy sent by post or delivered
                           by hand, has been received at the appropriate
                           address,

         provided that if any communication would otherwise become effective on
         a non-Business Day or after 5 pm on a Business Day, it shall instead
         become effective at 10 am on the next Business Day.

11.2     INITIAL DETAILS

         The initial details for the purposes of Clause 11.1 (Notices) are:

         PARTY:                     MARCONI

         Address:                   Marconi Corporation Plc
                                    New Century Park,
                                    PO Box 53,
                                    Coventry
                                    CV3 1HJ,
                                    United Kingdom
         Facsimile No:              +44 (0)24 7656 3377
         Marked for
         the Attention of:          The Company Secretary

                                      22
<PAGE>
         With a copy to:

         Party:                     Marconi Corporation plc
         Address:                   1000 Marconi Drive,
                                    Warrendale,
                                    Pennsylvania USA  15086
         Facsimile no:              +1 724 742 7055
         For the attention of:      Senior Vice President -
                                    Information Technology

         PARTY:                     CSC

         Address:                   CSC International Systems Management Inc.
                                    2100 East Grand Avenue,
                                    El Segundo, CA 90245, USA
         Facsimile No:              + 1 310 322 9767
         Marked for
         the Attention of:          Vice President and General Counsel

12.      AMENDMENTS AND WAIVERS

12.1     AMENDMENTS TO BE IN WRITING

         No amendment or variation of the terms of this Agreement shall be
         effective unless it is made or confirmed in a written document signed
         by all the Parties.

12.2     WAIVERS

         No delay in exercising or non-exercise by any Party of any of its
         rights under or in connection with this Agreement shall operate as a
         waiver or release of that right. Rather, any such waiver or release
         must be specifically granted in writing signed by the Party granting
         it.

13.      SEVERABILITY

         If any part of any provision of this Agreement shall be illegal,
         invalid or unenforceable in any respect, then the remainder of such
         provision and all other provisions of this Agreement shall remain
         valid and enforceable, and the remaining rights, obligations and
         liability of the Parties under this Agreement shall not be affected or
         impaired.

                                      23
<PAGE>
14.      COSTS

         Except where this Agreement provides otherwise, each Party shall be
         responsible for all the costs, charges and expenses incurred by it in
         connection with and incidental to the preparation and completion of
         this Agreement, the other documents referred to in this Agreement and
         the sale and purchase under this Agreement.

15.      CONTINUING EFFECT

         Each provision of this Agreement shall continue in full force and
         effect after the Phase 1 Completion Date and the Phase 2 Completion
         Date, except to the extent that a provision has been fully performed
         on or before the Phase 1 Completion Date or the Phase 2 Completion
         Date (as the case may be).

16.      COUNTERPARTS

16.1     ANY NUMBER OF COUNTERPARTS

         This Agreement may be executed in any number of counterparts, and by
         the Parties on separate counterparts, but shall not be effective until
         both Parties have executed at least one counterpart.

16.2     EACH COUNTERPART AN ORIGINAL

         Each counterpart shall constitute an original of this Agreement, but
         all the counterparts shall together constitute but one and the same
         instrument.

17.      ANNOUNCEMENTS AND CONFIDENTIALITY

17.1     NO ANNOUNCEMENTS WITHOUT PRIOR APPROVAL

         Subject to Clause 17.2 (Announcement Exceptions), the Parties mutually
         agree that no press or other public announcements (whether to
         shareholders, employees, customers, suppliers or otherwise) shall be
         made or sent out by them in respect of the subject matter of this
         Agreement or any ancillary matter without the text of the announcement
         receiving the prior written approval of all of the Parties (that
         approval not to be unreasonably withheld or delayed).

17.2     ANNOUNCEMENT EXCEPTIONS

         Any Party may make or send out any press or public announcement to the
         extent the announcement is:

                                      24
<PAGE>
         (a)      required by the law of any relevant jurisdiction;

         (b)      required by any securities exchange or regulatory or
                  Governmental Authority to which any Party is subject or
                  submits, wherever situated, including NASDAQ, the Securities
                  and Exchange Commission of the United States of America, the
                  London Stock Exchange, the UK Listing Authority or the
                  Takeovers and Mergers Panel, whether or not the requirement
                  for information has the force of law,

         in which case, the announcement shall only be made or sent out after
         consultation with (and after taking into account the reasonable
         requirements of) the other Parties as to the content of the
         announcement.

17.3     CONFIDENTIALITY

         Subject to Clause 17.1 (No announcements without prior approval), each
         Party shall treat as strictly confidential all information received or
         obtained as a result of entering into or performing this Agreement
         which relates to:

         (a)      the provisions of this Agreement or the other documents
                  referred to in this Agreement;

         (b)      the negotiations relating to this Agreement; or

         (c)      the other Party.

17.4     CONFIDENTIALITY EXCEPTIONS

         Either Party may disclose information referred to in Clause 17.3
         (Confidentiality) which would otherwise be confidential if and to the
         extent the disclosure is:

         (a)      required by the law of any relevant jurisdiction;

         (b)      required by any securities exchange or regulatory or
                  Governmental Authority to which any Party is subject or
                  submits, wherever situated, including NASDAQ, the Securities
                  and Exchange Commission of the United States of America, the
                  London Stock Exchange, the UK Listing Authority or the
                  Takeovers and Mergers Panel, whether or not the requirement
                  for disclosure has the force of law;

         (c)      required to vest in that Party the full benefit of this
                  Agreement;

                                      25
<PAGE>
         (d)      disclosed to the professional advisers, auditors or bankers
                  of that Party or any other member of its Group;

         (e)      disclosed to the officers or employees of that Party or any
                  other member of its Group who need to know the information
                  for the purposes of the transactions effected or contemplated
                  by this Agreement subject to the condition that the Party
                  making the disclosure shall procure that those persons comply
                  with Clause 17.3 (Confidentiality) as if they were parties to
                  this Agreement;

         (f)      of information that has already come into the public domain
                  through no fault of that Party;

         (g)      of information of the kind referred to in Clause 17.3(b)
                  (Confidentiality) which is already lawfully in the possession
                  of that Party (and not subject to any obligation of
                  confidentiality owed to the other Party) as evidenced by its
                  or its professional advisers' written records; or

         (h)      approved by the Parties having given prior written approval
                  to the disclosure,

         provided that any information disclosed pursuant to Clause 17.4 (a) or
         (b) shall be disclosed only after notice to the other Party and the
         disclosing Party shall take reasonable steps to co-operate with the
         other Party regarding the manner of that disclosure.

17.5     NO LIMIT IN TIME

         The restrictions contained in this Clause 17 (Announcements and
         Confidentiality) shall continue to apply without limit in time.

18.      DISPUTE RESOLUTION

18.1     Any question or difference which may arise concerning the
         construction, meaning, effect or operation of this Agreement or any
         Transfer Agreement or any matter arising out of or in connection with
         this Agreement or any Transfer Agreement shall in the first instance
         be referred to the Marconi Contract Manager and the CSC Service
         Delivery Manager.

18.2     If the matter is not resolved within ten (10) Business Days of it
         being referred to the managers referred to in Clause 18.1 the matter
         shall be referred to the next level of Marconi's and CSC's management
         in accordance with the hierarchy set forth in Clause 18.3 who must
         meet within ten (10) Business Days or such other period as the Parties
         may agree to attempt to resolve the matter. If the matter is not
         resolved at that

                                      26
<PAGE>
         meeting, the escalation shall continue with the same maximum time
         interval through one more level of management. If the unresolved
         matter is having a serious effect on the IT Services, the Parties
         shall use every reasonable endeavour to reduce the elapsed time in
         completing the process.

18.3     The levels of escalation are:

<TABLE>
<CAPTION>
                                   CSC                                   MARCONI

         <S>                       <C>                                   <C>
         First Level               CSC Service Delivery Manager          Marconi Contract Manager
         Second Level              Account Executive                     Senior Vice President - IT
         Third Level               President UK Division                 Chief Operating Officer
</TABLE>

         If any of the above are unable to attend a meeting, a substitute may
         attend provided that such substitute has at least the same seniority
         and is authorised to settle the unresolved matter.

18.4     If the matter is not resolved at or before the Third Level then the
         matter shall be submitted to mediation by CEDR within fourteen (14)
         days of either Party giving written notice to the other of that
         Party's wish to refer the matter to mediation by CEDR provided that
         such notice shall only be given while the matter remains unresolved by
         the escalation process and shall be given no later than the date
         fourteen (14) days after the date of the meeting of the Third Level of
         management. The representative of the Party giving such notice, at the
         escalation level at which such notice is given, shall (except where
         such notice is given at the Third Level) promptly notify that Party's
         representative at the next level, in order of ascent, that such notice
         has been given. The costs of the mediator shall be shared equally
         between the Parties (each Party bearing its own other costs). Where a
         matter is submitted to mediation as envisaged by this Clause 18.4, the
         provisions or requirements of this Clause 18 (Dispute Resolution)
         shall not be considered to have been applied or met until six (6)
         months after such submission.

18.5     No Party shall seek to initiate any proceedings in respect of, any
         unresolved matter until either escalation to and including the Third
         Level has been completed, unless such Party has reasonable cause to do
         so to avoid damage to its business or to protect or preserve any right
         of action it may have.

                                      27
<PAGE>
18.6     Notwithstanding anything in Clauses 17 (Announcements and
         Confidentiality) or 18 (Dispute Resolution), nothing in those Clauses
         shall operate to restrict any Party's or any member of their Group's
         rights to apply for or obtain emergency or interlocutory relief.

19.      ARBITRATION

19.1     Subject to Clause 18.6, any dispute arising out of or in connection
         with this Agreement shall be resolved in accordance with the
         provisions of this Clause 19 (Arbitration).

19.2     Before referring a dispute to arbitration in accordance with Clause
         19.4, the dispute shall in the first instance be dealt with in
         accordance with Clause 18 (Dispute Resolution).

19.3     Where pursuant to this Clause 19 (Arbitration) any dispute is to be
         referred to arbitration, compliance with Clause 19.2 shall be a
         condition precedent to the making of an award, unless the Party
         referring the dispute to arbitration has reasonable cause to do so to
         protect or preserve any right of action it may have.

19.4     All disputes arising out of or in connection with this Agreement which
         cannot be resolved in accordance with Clauses 19.1 to 19.2 shall be
         finally settled under the Rules of the London Court of International
         Arbitration by three arbitrators appointed in accordance with the said
         Rules. Furthermore:

         (a)      the place and the seat of the arbitration shall be London,
                  England; the tribunal shall have the power to conduct
                  hearings elsewhere if appropriate;

         (b)      the language of the arbitration, including all documents,
                  shall be English;

         (c)      the law governing this agreement to arbitrate shall be the
                  law of England and Wales.

19.5     CSC irrevocably appoints the person named against it in this Clause
         19.5 to be its agent for the receipt of service of process in England.
         CSC agrees that any service document in relation to the subject matter
         of this Agreement may be effectively served on it in connection with
         proceedings in England and Wales by service on its agent. CSC's
         respective appointee is:

                  Address:                  CSC Computer Sciences Limited
                                            Royal Pavilion,
                                            Wellesley Road

                                      28
<PAGE>
                                            Aldershot
                                            Hampshire, GU11 1PZ,
                                            United Kingdom
                  For the attention of:     The Company Secretary (or his
                                            successor from time to time)
                  Facsimile no:             +44 (0)1252 534 222

                  with a copy to:           CSC International Systems
                                            Management Inc.

                  Address:                  2100 East Grand Avenue,
                                            El Segundo, CA 90245, USA
                  Facsimile no:             +1 310 322 9767

                  Marked for the
                  Attention of:             Vice President and General Counsel

20.      GOVERNING LAW AND JURISDICTION

         This Agreement shall be governed by and interpreted in accordance with
         English law.

21.      INDEMNIFICATION PROCEDURE

21.1     A Party entitled to indemnification under this Agreement (the
         "INDEMNIFIED PARTY") shall give written notice as soon as reasonably
         practicable upon becoming aware of circumstances giving rise to a
         right of indemnity under this Agreement to the Party that is obligated
         to provide indemnification (the "INDEMNIFYING PARTY"). Within ten
         Business Days after such notice, the Indemnifying Party may notify, in
         writing, the Indemnified Party of its decision to take control of the
         defence of any claim made by any third party and which is the subject
         of the indemnity and, in such circumstances, the Indemnifying Party
         shall be entitled to take control of the defence and investigation of
         such claim and to employ and engage lawyers of its sole choice to
         handle and defend the same, at the Indemnifying Party's sole cost and
         expense. The Indemnified Party shall co-operate in all respects with
         the Indemnifying Party in the investigation and defence of such claim
         and shall not prejudice any defence to any such claim or attempt to
         settle or compromise such claim. No settlement of a claim which
         involves a remedy other than the payment of money by the Indemnifying
         Party shall:

         (a)      be made without the consent of the Indemnified Party, which
                  consent shall not be unreasonably withheld or delayed; or

                                      29
<PAGE>
         (b)      not include as an unconditional term thereof the giving by
                  the claimant to the Indemnified Party of a release from all
                  liability in respect of such claim.

         If the Indemnifying Party does not assume full control over the
         defence of a claim the Indemnified Party shall have the right to
         defend the claim in such manner as it may deem appropriate, at the
         cost and expense of the Indemnifying Party.

21.2     The Indemnified Party under this Clause 21 (Indemnification Procedure)
         shall use its reasonable endeavours to mitigate the Loss to which the
         relevant indemnity relates.

22.      CONFLICT

         In the event of any conflict or inconsistency between any provisions
         of this Agreement and the provisions of any Transfer Agreement, the
         provisions of the Transfer Agreement shall prevail to the extent
         required to resolve the conflict or inconsistency.

EXECUTION:

The parties have shown their acceptance of the terms of this Agreement by
executing it at the end of the Schedules.

                                      30
<PAGE>
                                  SCHEDULE 1A

                 FORM OF TRANSFER AGREEMENT (OTHER THAN ITALY)

<PAGE>
SCHEDULE 1A - FORM OF TRANSFER AGREEMENT                  CONFIDENTIAL TREATMENT
                                                            REQUESTED BY MARCONI
                                                                 CORPORATION PLC

                                   SCHEDULE 1A

                           FORM OF TRANSFER AGREEMENT

                         (TERRITORIES OTHER THAN ITALY)

                              DATED         2003

(1)      [MARCONI AFFILIATE]

(2)      [CSC AFFILIATE]

--------------------------------------------------------------------------------

                             TRANSFER AGREEMENT (CSC)

--------------------------------------------------------------------------------

                         STRICTLY PRIVATE AND CONFIDENTIAL

                          MAYER, BROWN, ROWE & MAW LLP
                                11 Pilgrim Street
                                 London EC4V 6RW

                               Tel: 020-7248 4282
                               Fax: 020-7248 8155
                            Ref: 965/764/30745.00009

<PAGE>

                                    CONTENTS

<TABLE>
<CAPTION>
CLAUSE            SUBJECT MATTER                                             PAGE
------            --------------                                             ----
<S>               <C>                                                        <C>
  1.              Definitions                                                  1
  2.              Sale of IT Equipment to CSC                                 12
  3.              Sale of In-Scope Contracts to CSC                           12
  4.              Termination                                                 14
  5.              Conditions                                                  15
  6.              Consideration                                               15
  7.              Completion                                                  18
  8.              Period to Completion                                        18
  9.              In-Scope Contracts                                          20
  10.             [Employees                                                  23
  11.             Pensions and Related Benefits                               24
  12.             Warranties                                                  24
  13.             Assignment and Third Party Rights                           25
  14.             Entire Agreement                                            25
  15.             Notices                                                     25
  16.             Amendments and Waivers                                      25
  17.             Severability                                                25
  18.             Costs                                                       25
  19.             Continuing Effect                                           25
  20.             Counterparts                                                25
  21.             Announcements and Confidentiality                           25
  22.             Dispute Resolution                                          25
  23.             Arbitration                                                 25
  24.             Governing Law                                               25
  25.             Regulatory Matters                                          25
  26.             Further Assurance                                           25
  27.             Language                                                    25
  28.             Indemnification Procedure                                   25
</TABLE>

<PAGE>

                                    SCHEDULES

Schedule 1-   Current Contracts

                  Part 1:       Equipment Contracts
                  Part 2:       Maintenance Contracts
                  Part 3:       Third Party Supply Contracts
                  Part 4:       Vehicle Leases
                  Part 5:       Operating Systems Licences

Schedule 2 -  Employment Provisions

Schedule 3 -  The Employees

Schedule 4 -  Apportionment of Consideration

Schedule 5 -  Completion Arrangements

Schedule 6 -  Warranties

Schedule 7 -  Limitations on Claims

Schedule 8 -  Pensions and Related Benefits

Schedule 9 -  Budget

Schedule 10-  Internal Services

                  Part 1:       Internal Services
                  Part 2:       Sites

<PAGE>
                               TRANSFER AGREEMENT

DATE:

PARTIES:

(1)      [MARCONI AFFILIATE], a company incorporated under the laws of [local
         territory][, with company number -], whose [registered office]
         [principal place of business] is at - (the "VENDOR"); and(1)

(2)      [CSC AFFILIATE], a company incorporated under the laws of [local
         territory] [, with company number -], whose [registered
         office][principal place of business] is at - ("CSC").

BACKGROUND:

(A)      Marconi Corporation plc wishes to outsource the provision of certain
         information technology services to CSC International Systems Management
         Inc. on the terms of an agreement (the "MASTER SERVICES AGREEMENT")
         dated 23 May 2003.

(B)      Accordingly, the Vendor and CSC have agreed for [the sale and purchase
         of certain assets] [and] [the transfer of certain employees and their
         pensions](2), subject to the terms of this Transfer Agreement.

IT IS AGREED as follows:

1.       DEFINITIONS

1.1      In this Transfer Agreement the following definitions apply, unless the
         context otherwise requires:

         "AGREED RATE" means a percentage rate of interest equal to [***] per
         cent per annum above the Barclays Bank PLC base lending rate in effect
         from time to time;

         "AGREED TERMS" means, in relation to any document, that document in the
         terms agreed between the Parties and signed or initialled for
         identification purposes only by or on behalf of each of them prior to
         execution of this Transfer Agreement;

(1)      NB: There will be more than one Marconi Vendors for some Territories.
(2)      Include/remove as appropriate.

                                       1
<PAGE>

         "APPLICABLE LEGISLATION" means any Legislation at any time relating or
         applicable to the Services or any lawful requirement or demand of any
         Competent Authority in respect of which compliance is legally
         obligatory;

         "ASSETS" means the IT Equipment and the In-Scope Contracts to be sold
         to and purchased by CSC under this Transfer Agreement, and "ASSET"
         shall mean any one of them;

         "ASSET TRANSFER AGREEMENT" means the agreement between Marconi
         Corporation plc and CSC International Systems Management Inc. of 23 May
         2003 providing (amongst other things) for the making of this Transfer
         Agreement;

         "BT ASSET TRANSFER AGREEMENT" means the agreement between Marconi
         Corporation plc, Marconi Communications Limited, CSC International
         Systems Management Inc. and British Telecommunications plc. of 23 May
         2003 providing (amongst other things) for the transfer of certain
         assets and staff;

         "BT GROUP" means all or any of the following from time to time: British
         Telecommunications plc, its subsidiaries and subsidiary undertakings
         and any parent undertaking of British Telecommunications plc and all
         other subsidiaries and subsidiary undertakings of any parent
         undertaking of British Telecommunications plc, and "member of the BT
         Group" shall be construed accordingly;

         "BT LOCAL TRANSFER AGREEMENT" means an agreement entered into (or to be
         entered into) under the BT Asset Transfer Agreement for the sale and
         purchase of certain assets and/or the transfer of certain employees by
         one or more members of the Vendor Group to one or more members of the
         BT Group;

         "BT SUB-CONTRACT means the agreement between CSC and British
         Telecommunications plc of the same date as this Agreement, providing
         (amongst other things) for the sub-contracting to BT of certain of
         CSC's obligations under the Master Services Agreement;

         "BUDGET" means the notional costs in respect of the services referred
         to in Schedule 10 (Internal Services), as set forth in Schedule 9
         (Budget);

         "BUSINESS DAY" means any day when clearing banks are open for business
         in the City of London for the transaction of normal banking business,
         other than a Saturday, Sunday or bank or public holiday recognised in
         England;

                                       2
<PAGE>

         "COMPLETION" means completion of the sale and purchase of such of the
         Current Contracts identified in Schedule 1 (Current Contracts) as are
         In-Scope Contracts and the sale and purchase of the IT Equipment from
         the Vendor to BT, each in accordance with Clause 7 (Completion);

         "COMPLETION DATE" means:

         [FOR PHASE 1 TERRITORIES - ]

         (a)      1 June 2003; or

         (b)      the date of the Business Day on which the last of the
                  Conditions is satisfied or waived by Marconi Corporation plc
                  and CSC International Systems Management Inc.,

         whichever is the later;

         [FOR PHASE 2 TERRITORIES - ]

         (a)      27 June 2003; or

         (b)      the date of the Business Day on which the last of the
                  Conditions is satisfied or waived by Marconi Corporation plc
                  and CSC International Systems Management Inc.,

         whichever is the later;

         "CONDITIONS" means:

         [FOR PHASE 1 TERRITORIES - ] (1) the filing of any notifications and
         the granting of any consents or approvals from any Governmental
         Authority which is required to authorise within (or otherwise in
         respect of) any Phase 1 Territory the actions contemplated by this
         Transfer Agreement, the Asset Transfer Agreement, any Phase 1 Territory
         Transfer Agreement, and the Master Services Agreement (any such
         agreement or contract being a "RELEVANT AGREEMENT"), (2) the
         undertaking and completion of all necessary consultation required
         either by the laws of any country or by any agreement in force on the
         date of this Transfer Agreement with the employees of the Vendor or any
         member of the Vendor Group or their representatives in any country in
         relation to the proposed engagement or transfer of those employees by
         or to a member of the CSC Group, and/or any associated measures to be
         taken in relation to those employees, in either case within (or
         otherwise in respect of) any Phase 1 Territory, as contemplated by any
         Relevant Agreement; and (3) each BT Local

                                       3
<PAGE>

         Transfer Agreement for any Phase 1 Territory having become
         unconditional (save for any condition that this Transfer Agreement
         shall have become unconditional); [OR - ]

         [FOR PHASE 2 TERRITORIES - ] (1) the filing of any notifications and
         the granting of any consents or approvals from any Governmental
         Authority which is required to authorise within (or otherwise in
         respect of) the Territory the actions contemplated by this Transfer
         Agreement, the Asset Transfer Agreement, and the Master Services
         Agreement (any such agreement or contract being a "RELEVANT
         AGREEMENT"), (2) the undertaking and completion of all necessary
         consultation required either by the laws of any country or by any
         agreement in force on the date of this Transfer Agreement with the
         employees of the Vendor or any member of the Vendor Group or their
         representatives in any country in relation to the proposed engagement
         or transfer of those employees by or to CSC, and/or any associated
         measures to be taken in relation to those employees, in either case
         within (or otherwise in respect of) the Territory, as contemplated by
         any Relevant Agreement, (3) each BT Local Transfer Agreement for the
         Territory having become unconditional (save for any condition that this
         Transfer Agreement shall have become unconditional); and (4) Phase 1
         Completion having previously occurred in all of the Phase 1
         Territories;

         "CONSIDERATION" means the Vendor Equipment Consideration and/or the
         Vendor Contracts Consideration;

         "CONTROL" means the beneficial ownership of more than fifty per cent
         (50%) of the issued share capital with full voting rights of, or the
         legal power to direct or cause the direction of, the general management
         of the company, partnership or other entity in question or the holding
         company of the company, partnership or other entity in question, and
         "CONTROLLED" shall be construed accordingly;

         "CSC GROUP" means all or any of the following from time to time: CSC
         International Systems Management Inc., its subsidiaries and subsidiary
         undertakings and any parent undertaking of CSC International Systems
         Management Inc. and all other subsidiaries and subsidiary undertakings
         of any parent undertaking of CSC International Systems Management Inc,
         and "MEMBER OF THE CSC GROUP" shall be construed accordingly;

         "CSC SERVICE DELIVERY MANAGER" means the person appointed as such by
         CSC International Systems Management Inc. from time to time;

                                       4
<PAGE>

         "CURRENT CONTRACTS" means the Equipment Contracts, the Maintenance
         Contracts, the Operating System Licences, the Third Party Supply
         Contracts and the Vehicle Leases;

         "DISCLOSURE LETTER" means the disclosure letter together with its
         annexures having the same date as the Asset Transfer Agreement from
         Marconi Corporation plc to CSC International Systems Management Inc.,
         as updated by the matters notified to CSC prior pursuant to paragraph
         1.3(a) of Schedule 2 (Employment Provisions);

         "EMPLOYEES" means the persons identified in Schedule 3 (Employees);

         "ENCUMBRANCE" means any encumbrance, pledge, charge, mortgage, security
         interest, lien, option, restriction on power of sale, retention of
         title arrangement or hypothecation of any kind;

         "EQUIPMENT COMPLETION" means the completion of the sale by the Vendor
         to CSC of the IT Equipment as described in Clause 7.1(1);

         "EQUIPMENT COMPLETION DATE" means the date on which Equipment
         Completion occurs;

         "EQUIPMENT CONTRACTS" means all hire purchase agreements, leasing
         agreements, lease purchase agreements, credit sale agreements and
         agreements for conditional sale or sale by instalments, in each case
         relating to hardware and information technology assets and equipment
         located in the Territory and used for the purposes of the Internal
         Services and entered into by a member of the Vendor Group, including
         those agreements listed in Part 1 of Schedule 1 (Current Contracts) and
         such agreements identified as part of a True-up Process;

         ["EUROPEAN COUNTRY" means any member state of the European Union at the
         date of this Transfer Agreement;](3)

         "GOVERNMENTAL AUTHORITY" means any nation or government, any state,
         regional, provincial, territorial, local or other political subdivision
         thereof, or any supranational authority and any entity or official
         exercising executive, legislative, judicial, quasi-judicial, regulatory
         or administrative functions of or pertaining to government;

         "GROUP" means in relation to any person (other than the Vendor), all or
         any of the following from time to time: that person, its subsidiaries
         and subsidiary undertakings,

(3)      Only include in Italian & German TA's.

                                       5
<PAGE>

         any parent undertaking of that person, and all other subsidiaries or
         subsidiary undertakings of any parent undertaking of that person and,
         in the case of Marconi, means the Marconi Group, and "MEMBER OF THE
         GROUP OF" any person shall mean any of those entities;

         "ICTA" means the Income and Corporation Taxes Act 1988 and any
         regulations made under it;

         "IN-SCOPE CONTRACT" means any Current Contract the costs of which are
         included in the Budget as verified under a True-up Process or included
         in the Charges (as defined in the Master Services Agreement) pursuant
         to a True-up Process, which remains to be fully discharged immediately
         before the Completion Date, and which is not a Retained Contract;

         "IN-SCOPE CONTRACT COMPLETION DATE" has the meaning given to it in
         Clause 3.2 (Transfer of Title);

         "INTELLECTUAL PROPERTY" means any intellectual property rights,
         including patents, utility models, copyrights, moral rights, topography
         rights, database rights, trade secrets and rights of confidence, and
         all embodiments thereof, whether tangible or intangible in all cases
         whether or not registered or registrable in any country, for the full
         term of such rights including any extension to or renewal of the terms
         of such rights and including registrations and applications for
         registration of any of these and rights to apply for the same and all
         rights and forms of protection of a similar nature or having equivalent
         or similar effect to any of these anywhere in the world;

         "INTERNAL SERVICES" means all or any of the services referenced in Part
         1 of Schedule 10 (Internal Services) provided by the Vendor Group from
         its own resources or procured by the Vendor Group from third parties
         and delivered to or used by the Vendor Group as at the date of this
         Transfer Agreement at the sites referenced in Part 2 of Schedule 10
         (Internal Services), and which are delivered in or from the Territory
         as of the date of this Transfer Agreement;

         "IT EQUIPMENT" means such of the hardware and information technology
         assets and equipment as are located in the Territory and either listed
         in the Vendor Asset Registers or used to provide the Internal Services,
         and any Leased Equipment title to which is acquired by the Vendor (or
         another member of the Vendor Group) before Equipment Completion,
         excluding (in either such case) the Retained Equipment;

                                       6
<PAGE>

         "IT SERVICES" means the services referenced in Schedule 10 (Internal
         Services) (and for the purposes of this definition all references to
         "the Supplier" in the description of the services referenced in
         Schedule 10 shall be deemed to be references to "CSC");

         "LEASED EQUIPMENT" means the hardware and information technology assets
         and equipment that are subject to the Equipment Contracts;

         "LOSS" means any or all loss, damage, cost and expense;

         "MAINTENANCE CONTRACTS" means all agreements for, or parts of
         agreements relating to, the servicing, maintenance, repair or support
         of any of the IT Equipment or the Leased Equipment, or of any software,
         entered into by the Vendor (or another member of the Vendor Group) for
         the purpose of the Internal Services, including those agreements listed
         in Part 2 of Schedule 1 (Current Contracts), and any such agreements
         identified as part of a True-up Process;

         "MARCONI CONTRACT MANAGER" means the person appointed as such by
         Marconi Corporation plc from time to time;

         "MASTER SERVICES AGREEMENT" has the meaning given in Background (A) and
         any reference in this Transfer Agreement to terms as defined in the
         Master Services Agreement shall be a reference to the Master Services
         Agreement in the form in which it is signed on the date of this
         Transfer Agreement;

         "OPERATING SYSTEMS LICENCES" means all licences of operating system
         software installed or running on the IT Equipment or the Leased
         Equipment to which the Vendor (or another member of the Vendor Group)
         is a party (and which in the case of Leased Equipment does not form
         part of the relevant Equipment Contract), including those licences
         which are listed in Part 5 of Schedule 1 (Current Contracts) and any
         such licences identified during a True-up Process, excluding
         Maintenance Contracts;

         "PARTY" means each of the Vendor and CSC;

         "PHASE 1 COMPLETION" means completion of the sale and purchase of such
         of the contracts listed in Schedule 1 (Current Contracts) to each of
         the Phase 1 Territory Transfer Agreements as are In Scope Contracts (as
         defined in the relevant Phase 1 Territory Transfer Agreement) and of
         the IT Equipment (as defined in the relevant Phase 1 Territory Transfer
         Agreement) located in each of the Phase 1 Territories by the relevant
         member of the Vendor Group to the relevant member of the CSC Group, in
         each case in accordance with Clause 7 (Completion) of the applicable
         Phase 1 Transfer Agreement;

                                       7
<PAGE>

         "PHASE 1 LONG STOP DATE" means 1 July 2003;

         "PHASE 1 TERRITORY" means each of the United Kingdom, Ireland and the
         United States of America and Canada;

         "PHASE 1 TERRITORY TRANSFER AGREEMENT" means an agreement entered into
         (or to be entered into) under the Asset Transfer Agreement for the sale
         and purchase of certain assets and/or the transfer of certain
         employees, in (or otherwise relating to) a Phase 1 Territory by one or
         more members of the Vendor Group to one or more members of the CSC
         Group;

         "PHASE 2 LONG STOP DATE" means the date that is twelve (12) weeks after
         Phase 1 Completion;

         "REGULATED ACTIVITIES" shall have the meaning given to it in the Master
         Services Agreement;

         "RETAINED CONTRACT" means any Current Contract which CSC elects not to
         purchase under Clause 8.2(2) (Current Contracts) or which, and then
         only to the extent it, relates to the Retained Equipment;

         "RETAINED EQUIPMENT" means all hardware and information technology
         assets and equipment owned by the Vendor and located outside the
         Territory or used exclusively for any purpose other than the Internal
         Services;

         "SERVICES" means the IT Services required to be performed under the
         Master Services Agreement, excluding the Network Services;

         "SOFTWARE LICENCES" means all software licences entered into by the
         Vendor (whether or not for the purposes of the Internal Services),
         excluding Operating Systems Licences and Maintenance Contracts;

         "TERRITORY" means [-](4);

         "TERRITORY TRANSFER AGREEMENT" means an agreement entered into (or to
         be entered into) under the Asset Transfer Agreement for the sale and
         purchase of certain assets and/or the transfer of certain employees, by
         one or more members of the Vendor Group to one or more members of the
         CSC Group;

(4)      Insert relevant Territory.

                                       8
<PAGE>

         "THIRD PARTY SUPPLY CONTRACTS" means the contracts, engagements and
         orders for the sale or supply to the Vendor Group of goods or services
         entered into by the Vendor (or another member of the Vendor Group) for
         the purpose of the Internal Services, including those agreements listed
         in Part 3 of Schedule 1 (Current Contracts) and any such agreements
         identified during a True-up Process, excluding Maintenance Contracts;

         "TRANSACTION TAX" means any form of value added tax, stamp duty, sales
         tax, registration tax, fees or surcharges or similar tax or duty levied
         by a Governmental Authority upon the transfer of the Assets in the
         Territory, and shall include any interest or penalty incurred in
         connection with a failure or late payment thereof;

         "TRUE-UP PROCESS" shall have the meaning given to it in the Master
         Services Agreement;

         "VEHICLE LEASES" means all agreements entered into by the Vendor (or
         another member of the Vendor Group) with a third party under which
         either vehicles are leased by the Vendor (or such other member of the
         Vendor Group) for the benefit of any Employees or the Vendor (or such
         other member of the Vendor Group) guarantees an Employee's obligations
         in respect of a leased vehicle, including those agreements listed in
         Part 4 of Schedule 1 (Current Contracts), and any such agreements
         identified as part of a True-up Process;

         "VENDOR ASSET REGISTERS" means the registers of hardware and other
         information technology assets and equipment owned by the Vendor in the
         Agreed Terms;

         "VENDOR CONTRACTS CONSIDERATION" means the consideration specified in
         Clause 6.2 (Amount of Vendor Contracts Consideration) payable by CSC to
         the Vendor;

         "VENDOR CONTROLLED GROUP" means Marconi Corporation plc and any other
         person which from time to time Controls, is Controlled by, or is under
         common Control with Marconi Corporation plc;

         "VENDOR EQUIPMENT CONSIDERATION" means the consideration specified in
         Clause 6.1 (Amount of Vendor Equipment Consideration) payable by CSC to
         the Vendor;

         "VENDOR GROUP" means all or any of the following from time to time:

         (a)      Marconi Corporation plc;

                                       9
<PAGE>

         (b)      Marconi Corporation plc's wholly-owned subsidiaries and
                  wholly-owned subsidiary undertakings;

         (c)      any parent undertaking of Marconi Corporation plc and all
                  other wholly-owned subsidiaries and wholly-owned subsidiary
                  undertakings of any parent undertaking of Marconi Corporation
                  plc; and

         (d)      Marconi Communications South Africa (pty) Ltd,

         and "MEMBER OF THE VENDOR GROUP" shall be construed accordingly;

         "VENDOR PENSION SCHEME(S)" means the existing Vendor pension scheme(s)
         identified in Schedule 8 (Pensions and Related Benefits); and

         "WARRANTIES" means the warranties set out in Schedule 6 (Warranties).

1.2      INTERPRETATION

         In this Transfer Agreement:

         (a)      unless the context otherwise requires, all references to:

                  (i)      a "CLAUSE" or a "SCHEDULE" or an "APPENDIX" is to a
                           clause of or a schedule to this Transfer Agreement
                           and to a "PART" or a "PARAGRAPH" of a Schedule is to
                           a part or a paragraph of that Schedule;

                  (ii)     the word "INCLUDES" or "INCLUDING" shall be construed
                           without limitation to the generality of the preceding
                           words;

                  (iii)    this "TRANSFER AGREEMENT" includes its Schedules and
                           Appendices and references to this Transfer Agreement
                           as amended from time to time in accordance with its
                           terms (as amended accordingly);

                  (iv)     the "RIGHTS" of any person (including of any Party)
                           shall mean the rights and remedies available to that
                           person under this Transfer Agreement or otherwise;

                  (v)      "INDEMNIFY" means to indemnify and keep indemnified
                           in respect of the Loss in question and, where any tax
                           or other duty is chargeable on or in relation to the
                           Loss or its payment, then such indemnity shall be on
                           an after tax basis;

                                       10
<PAGE>

                  (vi)     a "PERSON" include any individual, firm, corporation,
                           unincorporated association, government, state or
                           agency of state, association, partnership or joint
                           venture (whether or not having a separate legal
                           personality);

                  (vii)    a "COMPANY" include any company, corporation or other
                           body corporate wherever and however incorporated or
                           established;

                  (viii)   a "DOCUMENT" are to that document as varied,
                           supplemented or replaced from time to time;

                  (ix)     "WRITING" shall include any modes of reproducing
                           words in a legible and non-transitory form;

                  (x)      "DOLLARS" or "$" is to the lawful currency of the
                           United States of America as of the Commencement Date;

                  (xi)     "EUROS" or "(EURO)" is to the lawful currency of
                           participating member states of the European Monetary
                           Union as of the Commencement Date;

                  (xii)    "STERLING" or "(POUND)" or "POUNDS" is to the lawful
                           currency of the United Kingdom; and

                  (xiii)   a TIME OF THE DAY is to London time and references to
                           a "DAY" are to a period of 24 hours running from
                           midnight to midnight;

         (b)      the headings shall be ignored in construing this Transfer
                  Agreement;

         (c)      unless the context otherwise requires, words or phrases
                  importing the singular shall be interpreted to include the
                  plural and vice versa; and

         (d)      unless the context otherwise requires, a statute or statutory
                  provision is a reference to the statute or statutory provision
                  in force in England and Wales and includes any consolidation
                  or re-enactment, modification or replacement of it, any
                  statute or statutory provision of which it is a consolidation,
                  re-enactment, modification or replacement and any sub-ordinate
                  legislation in force under any of the same from time to time,
                  but without in any case increasing the liability of any Party
                  under or in connection with this Transfer Agreement.

                                       11
<PAGE>

1.3      COMPANIES ACT DEFINITIONS

         In this Transfer Agreement, unless the context otherwise requires,
         words and expressions defined in the Companies Act 1985 shall bear the
         meaning ascribed to them in that Act to the exclusion of any definition
         of the same words or expression in any other Legislation (as defined in
         the Master Services Agreement).

1.4      DELIVERY OF INTERNAL SERVICES

         Where it falls to be determined where any Internal Services are
         delivered, no account shall be taken of any Internal Services delivered
         to any person by reason only of that person being temporarily located
         in a particular country.

1.5      NO LIABILITY

         No Party shall be liable for a breach of this Transfer Agreement by any
         other Party save as expressly provided to the contrary in this Transfer
         Agreement.

2.       SALE OF IT EQUIPMENT TO CSC

2.1      IT EQUIPMENT BEING SOLD TO CSC

(1)      Subject to the terms of this Transfer Agreement, the Vendor shall (or
         shall procure that another member of the Vendor Group shall) sell and
         CSC shall purchase the IT Equipment.

(2)      The Retained Equipment is excluded from the sale and purchase to which
         Clause 2.1(1) refers.

2.2      TRANSFER OF TITLE OF IT EQUIPMENT TO CSC

         Legal and equitable title to, and risk in, the IT Equipment shall pass
         by delivery to CSC on Equipment Completion.

3.       SALE OF IN-SCOPE CONTRACTS TO CSC

3.1      IN-SCOPE CONTRACTS BEING SOLD

(1)      Subject to the terms of this Transfer Agreement, the Vendor shall (or
         shall procure that another member of the Vendor group shall) sell and
         CSC shall (or shall procure that another member of the CSC Group shall)
         purchase, subject to any necessary consent of a third party, the
         benefit (subject to the burden) of the In-Scope Contracts.

                                       12
<PAGE>

(2)      The following shall be excluded from the sale and purchase to which
         Clause 3.1(1) refers:

         (a)      the Retained Contracts; and

         (b)      all Software Licences.

3.2      TRANSFER OF TITLE

(1)      Subject to Clause 3.2(2) and to obtaining any necessary consent of a
         third party, legal and equitable title to, and risk in the In-Scope
         Contracts:

         (a)      identified in Schedule 1 (Current Contracts) shall pass to CSC
                  (or to such other member of the CSC Group as CSC may nominate)
                  on the Completion Date; and

         (b)      identified during any True-up Process shall pass to CSC (or to
                  such other member of the CSC Group as CSC may nominate) on the
                  later of the Completion Date or the date falling five (5)
                  Business Days after the relevant contract is so identified.

(2)      Where any In-Scope Contract under this Transfer Agreement also
         comprises an In-Scope Contract under any other Territory Transfer
         Agreement, subject to obtaining any necessary consent of a third party,
         legal and equitable title to and risk in such In-Scope Contract:

         (a)      identified in Schedule 1 (Current Contracts) shall pass to CSC
                  (or such other member of the CSC Group as CSC may nominate) on
                  the date (the "FINAL COMPLETION DATE") on which the last
                  Completion occurs under this Transfer Agreement and any other
                  Territory Transfer Agreement under which the In-Scope Contract
                  in question is also an In-Scope Contract (and for these
                  purposes, such reference "Completion" shall have the meaning
                  given to it in the relevant Transfer Agreement or other
                  Territory Transfer Agreement); and

         (b)      identified during any True-up Process shall pass to CSC (or
                  such other member of the CSC Group as CSC may nominate) on the
                  occurrence of the Final Completion Date or the date falling
                  five (5) Business Days after the relevant contract is so
                  identified, whichever is the later.

(3)      The relevant date on which title to a particular In-Scope Contract
         passes (or would pass as set out in Clauses 3.2(1) or 3.2(2), but for
         the need to obtain any necessary

                                       13
<PAGE>

         consent of a third party) in each case being the "IN-SCOPE CONTRACT
         COMPLETION DATE" in relation to that In-Scope Contract.

4.       TERMINATION

4.1      TERMINATION

         This Transfer Agreement shall terminate with immediate effect on the
         earlier of the following:

         [FOR PHASE 1 TERRITORY TA'S -]

         (a)      termination of the Asset Transfer Agreement; or

         (b)      if all of the Conditions have not been satisfied or waived by
                  Marconi Corporation plc and CSC International Systems
                  Management Inc. on or before the Phase 1 Long Stop Date, on
                  the Phase 1 Long Stop Date.

         [OR FOR PHASE 2 TERRITORY TA'S -]

         (a)      termination of the Asset Transfer Agreement either in its
                  entirety or in relation to the Territory; or

         (b)      if all of the Conditions have not been satisfied or waived by
                  Marconi Corporation plc and CSC International Systems
                  Management Inc. on or before the Phase 2 Long Stop Date, on
                  the Phase 2 Long Stop Date,

         except that this Transfer Agreement shall not so terminate where
         Completion has already occurred.

4.2      CONSEQUENCES OF TERMINATION

(1)      Subject to Clauses 4.2(2) to (4), termination of this Transfer
         Agreement shall not affect the rights of the Parties which have accrued
         before termination.

(2)      Where this Transfer Agreement terminates under Clause 4.1
         (Termination), CSC shall not have any claim for breach of any of the
         Warranties and all (if any) liability of the Vendor in respect of any
         such breach shall be entirely discharged.

(3)      Where this Transfer Agreement terminates on or after Completion, the
         provisions of the Master Services Agreement shall apply in relation to
         any disposition of the IT Equipment by CSC to the Vendor.

                                       14
<PAGE>

(4)      For the avoidance of doubt, nothing in this Clause 4.2 shall preclude
         the Vendor from including in any claims for damages (on the grounds of
         wasted expenditure or otherwise) amounts in respect of Charges for
         Transition Services paid by the Vendor on or before the date of
         termination of this Transfer Agreement and the rights and remedies
         contained in this Clause 4.2 are cumulative and are not exclusive of
         any rights or remedies provided by law or otherwise.

5.       CONDITIONS

5.1      CONDITIONS

(1)      Until all of the Conditions to be satisfied in the Territory are
         satisfied or are waived by Marconi Corporation plc and CSC
         International Management Systems Inc.:

         (a)      neither the Vendor nor CSC shall be obliged to sell, purchase
                  or pay for, or to procure the sale, purchase of or payment
                  for, the IT Equipment in accordance with Clause 2 (Sale of IT
                  Equipment to CSC); and

         (b)      neither the Vendor nor CSC shall be obliged to sell, purchase
                  or pay for, or to procure the sale, purchase of or payment
                  for, the In-Scope Contracts in accordance with Clause 3 (Sale
                  of In-Scope Contracts to CSC).

5.2      WARRANTIES

(1)      Until Completion has occurred, CSC shall not have any claim for breach
         of any of the Warranties.

(2)      Once Completion has occurred, nothing in Clause 5.2(1) shall thereafter
         affect any claim of CSC for breach of any of the Warranties (which it
         would otherwise have), including with respect to any Loss otherwise
         recoverable under this Transfer Agreement which may have been incurred
         before Completion.

6.       CONSIDERATION

6.1      AMOUNT OF VENDOR EQUIPMENT CONSIDERATION

         The consideration payable to the Vendor for the sale of the IT
         Equipment under this Transfer Agreement (the "VENDOR EQUIPMENT
         CONSIDERATION") shall be the sum of (pound)[-] ([-] pounds), which
         shall be satisfied by CSC in cash on Equipment Completion.

                                       15
<PAGE>

6.2      AMOUNT OF THE VENDOR CONTRACT CONSIDERATION

         The consideration payable to the Vendor for the sale of the In-Scope
         Contracts under this Transfer Agreement (the "VENDOR CONTRACTS
         CONSIDERATION") shall be the sum of (pound)1 (one pound), which shall
         be satisfied by CSC in cash on CompletiON.

6.3      APPORTIONMENT

         The Consideration shall be apportioned between the various classes of
         Assets as set out in Schedule 4 (Apportionment of Consideration) and as
         so apportioned shall be adopted by the Parties for all purposes
         including tax and stamp duty.

6.4      TRANSACTION TAXES

(1)      [Subject to Clause 6.4(2),](5) the Vendor Equipment Consideration and
         the Vendor Contracts Consideration are expressed (as between the
         Parties) to be exclusive of any Transaction Taxes, which shall be for
         the account of the payer of the Consideration in question.

[(2)     [Notwithstanding Clause 6.4(1), to the extent that CSC incurs sale
         and/or use tax on (or otherwise in respect thereof) the Vendor
         Contracts Consideration or the Vendor Equipment Consideration, that tax
         shall be for the account of the Vendor.](6)

[(2)     [Notwithstanding Clause 6.4(1), to the extent that CSC incurs
         registration tax on (or otherwise in respect thereof) the Vendor
         Contracts Consideration or the Vendor Equipment Consideration, that tax
         shall be for the account of the Vendor.](7)

(3)      Where a Party is liable to another in respect of Transaction Taxes (or
         required to bear such taxes for which another Party is liable to the
         relevant Governmental Authority) pursuant to this Clause 6.4 or Clause
         4.2(4), it shall pay those Transaction Taxes not less than three (3)
         Business Days before the date on which the relevant other Party is
         required to account to a Governmental Authority or to another Party for
         the Transaction Taxes in question or, if later, once it has received a
         valid VAT, sales tax or comparable invoice for them from the relevant
         other Party.

(4)      The Parties undertake to consult and to co-operate with each other to
         take, so far as is reasonable, such actions as may be required to
         optimise their taxation position and

(5)      Only include in US and Italian TA's.
(6)      Only include in US TA.
(7)      Only include in Italian TA.

                                       16
<PAGE>

         their position as regards legal and regulatory compliance, arising from
         this Transfer Agreement.

(5)      Each of the Vendor and CSC warrants and undertakes to each other that:

         (a)      it is and shall continue to be for all purposes under this
                  Transfer Agreement tax resident [and registered for VAT](8) in
                  the Territory; and

         (b)      subject to Clause 6.6 (Invoicing and Method of Payment), all
                  sales and payments to be made by it (or which it is obliged to
                  procure) pursuant to this Transfer Agreement shall be made
                  from the Territory.

6.5      (9)[TAX AUDITS & FILINGS

(1)      Prior to lodging any tax filing that could reasonably be expected to
         give rise to [sales or use tax](10)[registration tax](11) payable by
         the Vendor under Clause 6.4(2) ("RELEVANT TAX FILING"), CSC shall
         consult with the Vendor and consider any reasonable position proposed
         by the Vendor with respect to that part of the Relevant Tax Filing
         which relates to or could reasonably be expected to affect the Vendor's
         liability under Clause 6.4(2), with a view to optimising the taxation
         position of both of the Parties.

(2)      CSC shall promptly notify the Vendor upon becoming aware that a tax
         audit, examination, contest or other tax proceeding is or may be
         carried out by any Governmental Authority which relates to or could
         reasonably be expected to affect the Vendor's liability under Clause
         6.4(2) ("RELEVANT TAX PROCEEDINGS"). The Vendor shall have the right to
         participate at its own expense in any Relevant Tax Proceedings
         (including without limitation by participating in any discussions or
         negotiations between CSC and the Governmental Authority) and CSC agrees
         to consult with the Vendor and keep the Vendor fully informed of all
         material matters relating to the conduct thereof and to promptly
         provide the Vendor with all material correspondence relating thereto.
         CSC shall not make any settlement of any Relevant Tax Proceedings which
         could affect the Vendor's liability under Clause 6.4(2) without the
         consent of the Vendor, such consent not to be unreasonably withheld or
         delayed.]

(8)      Only include in European, Mexican and Brazilian TA's.
(9)      Only include in US and Italian TA's.
(10)     Only include in US TA.
(11)     Only include in Italian TA.

                                       17
<PAGE>

6.6      INVOICING AND METHOD OF PAYMENT

(1)      Each Party which is to receive a payment under this Transfer Agreement
         shall, before such payment is made or (where this is not practicable)
         as soon as practicable thereafter, deliver to the payer a valid VAT,
         sales tax or comparable invoice therefor.

(2)      The Parties acknowledge that each payment of Vendor Equipment
         Consideration and Vendor Contracts Consideration to be made under this
         Transfer Agreement shall be made on its behalf in accordance with the
         Asset Transfer Agreement.

7.       COMPLETION

7.1      COMPLETION

(1)      Equipment Completion shall take place on the Completion Date.

(2)      Subject to obtaining any necessary consent of a third party, completion
         of the sale and purchase of the In-Scope Contracts identified in
         Schedule 1 (Current Contracts) shall occur on the Completion Date.

7.2      COMPLETION ARRANGEMENTS

         At Equipment Completion and on each In-Scope Contract Completion Date,
         each Party shall do those things for which it has responsibility in
         relation to the Asset in question as are listed in Schedule 5
         (Completion Arrangements).

8.       PERIOD TO COMPLETION

8.1      VENDOR OBLIGATIONS IN RESPECT OF THE IT EQUIPMENT AND THE LEASED
         EQUIPMENT

         The Vendor undertakes to CSC to procure that during the period
         commencing on the date of this Transfer Agreement and ending on
         Completion:

         (a)      so far as is necessary for the provision of the Services, the
                  IT Equipment and the Leased Equipment is maintained, repaired
                  and serviced so as to ensure it is maintained in the same
                  condition as the IT Equipment is in at the date of this
                  Transfer Agreement, fair wear and tear excepted;

         (b)      so far as is necessary for the provision of the Services,
                  (subject to CSC's consent, not to be unreasonably withheld)
                  items of IT Equipment and Leased Equipment are replaced where
                  those items have been lost or damaged beyond economic repair,
                  and in these circumstances the replacement item, if owned by
                  the Vendor or a member of the Vendor Group, shall be entered
                  in the Marconi

                                       18
<PAGE>

                  Asset Register and in any other case the agreement relevant to
                  the replacement item shall be included in Part 1 of Schedule 1
                  (Current Contracts), both of which shall be amended
                  accordingly; and

         (c)      the IT Equipment and the Leased Equipment is insured against
                  all the usual risks with a reputable insurance company for the
                  full replacement value of the IT Equipment and the Leased
                  Equipment and that the interest of CSC is noted upon any
                  policy of insurance and a copy thereof supplied to CSC.

8.2      CURRENT CONTRACTS

(1)      Where any In-Scope Contract is renewed or any new contract or
         arrangement relating to any Internal Services is entered into by any
         member of the Vendor Group whilst those Internal Services are being
         provided by the Vendor Group, the relevant Part of Schedule 1 (Current
         Contracts) shall be amended by including reference to any such renewed
         or new contract or arrangement, as the case may be.

(2)      If once the terms of any Current Contract (which but for the exercise
         of CSC's rights under this Clause 8.2(2) would constitute an In-Scope
         Contract) have been disclosed to CSC, CSC is of the reasonable opinion
         that either:

         (a)      any of the non-financial terms of that Current Contract are
                  other than reasonably consistent with conventional practice
                  for agreements of the kind in question (including, without
                  limitation, by virtue of that Current Contract containing any
                  limitation of liability which is unreasonably low or
                  containing a provision which materially restricts the conduct
                  of the business of any member of the CSC Group other than
                  directly in respect of the provision of services under the
                  Master Services Agreement); or

         (b)      to comply with any of the terms of that Current Contract would
                  place CSC in breach of any Applicable Legislation, any third
                  party rights or any contract it may have with a third party,

         then CSC may within five (5) Business Days of such disclosure elect by
         notice in writing to the Vendor not to purchase that Current Contract.

(3)      Notwithstanding Clause 9 (In Scope Contracts), CSC shall not be liable
         to perform any obligations under any In-Scope Contract unless and until
         the terms of such obligations have been disclosed to CSC in all
         material respects.

                                       19
<PAGE>

(4)      Any Current Contract shall cease to be subject to this Clause 8.2 if
         CSC elects not to purchase it under Clause 8.2(2).

9.       IN-SCOPE CONTRACTS

9.1      SEEKING CONSENTS TO SUBSTITUTION

         The Vendor shall after execution of this Transfer Agreement use
         reasonable endeavours to procure that the other parties to the In-Scope
         Contracts shall, where that consent is necessary, consent in the Agreed
         Terms:

         (a)      to the substitution of CSC (or such member of the CSC Group as
                  CSC may nominate) in the place of the relevant member of the
                  Vendor Group as a party to the relevant In-Scope Contract; and

         (b)      to any continuing use of the subject matter of the In-Scope
                  Contracts where the use is required (after the substitution)
                  to enable the Vendor Group effectively to receive the benefit
                  of the Services,

         in each case with effect from the relevant In-Scope Contract Completion
         Date. CSC shall provide such assistance as the Vendor may reasonably
         require in procuring those consents.

9.2      PERFORMANCE AND ENJOYMENT OF IN-SCOPE CONTRACTS

(1)      In any case where the consent referred to in Clause 9.1 (Seeking
         consents to substitution) is required but shall be refused or otherwise
         not obtained, then, the following shall apply in respect of the
         relevant In-Scope Contract with effect from the In-Scope Contract
         Completion Date applicable to the In-Scope Contract in question until
         such consent shall be obtained and subject to Clause 9.2(2):

         (a)      the Vendor shall hold the In-Scope Contract and any monies,
                  goods or other benefits received under the In-Scope Contracts
                  on trust for CSC (or for such member of the CSC Group as CSC
                  may nominate) and shall, immediately upon receipt of the same,
                  account for and pay to CSC (or its nominee) all those monies,
                  goods and other benefits;

         (b)      CSC (or such member of the CSC Group as CSC may nominate)
                  shall (if sub-contracting or agency is not precluded under the
                  relevant In-Scope Contract) as sub-contractor or agent for the
                  Vendor perform on behalf of the Vendor (but at CSC's or its
                  nominee's expense) all the obligations of the Vendor

                                       20
<PAGE>

                  arising under the relevant In-Scope Contract after the
                  In-Scope Contract Completion Date applicable to that In-Scope
                  Contract;

         (c)      where sub-contracting and agency are precluded under the
                  In-Scope Contract, the Vendor shall continue to be the Party
                  responsible to perform and discharge the In-Scope Contract but
                  in so doing shall act only in accordance with the directions
                  of CSC (or for such member of the CSC Group as CSC may
                  nominate) and CSC shall procure that the Vendor is provided
                  with all reasonable facilities and assistance to enable the
                  Vendor to perform, operate, monitor and discharge the In-Scope
                  Contract.

(2)      [***]

9.3      SET-OFFS AND COUNTERCLAIMS

         If any person making payment of any sum pursuant to an In-Scope
         Contract after the In-Scope Contract Completion Date (the benefit of
         which payment in each case is in accordance with the terms of this
         Transfer Agreement to accrue to CSC or its nominee), shall claim any
         right of set-off or counterclaim in respect of any act or thing done or
         omitted to be done by the Vendor or a member of the Vendor Group prior
         to the In-Scope Contract Completion Date, the Vendor shall immediately
         account to CSC or as it may direct, for an amount equal to the
         difference between the payment which would have been received had no
         such right of set-off or counterclaim been exercised or claimed and the
         payment actually received.

9.4      PERFORMANCE OF IN-SCOPE CONTRACTS

(1)      CSC undertakes that it will (or shall procure that another member of
         the CSC Group will), at its own cost, carry out and complete for its
         own account the In-Scope Contracts to the extent that they have not
         been fully performed before the In-Scope Contract Completion Date.

(2)      CSC shall indemnify (or, as appropriate, shall procure that CSC's
         nominee under Clause 9.2(1)(b) shall indemnify) the Vendor against or
         reimburse the Vendor for any payment required to be made or other
         liability incurred by the Vendor under or in relation to each In-Scope
         Contract in respect of the period after the In-Scope Contract
         Completion Date applicable to that In-Scope Contract, except to the
         extent that the payment or liability shall arise wholly or partly as a
         result of the failure by the Vendor duly to perform and comply with the
         terms of the In-Scope Contract on or prior to the applicable In-Scope
         Contract Completion Date.

                                       21
<PAGE>
(3)      The Vendor shall:

         (a)      continue to be responsible for, and shall duly and promptly
                  pay and discharge all debts, liabilities and obligations
                  outstanding under or in relation to the In-Scope Contracts as
                  at the applicable In-Scope Contract Completion Date and which
                  relate to the period ending on the applicable In-Scope
                  Contract Completion Date or arising by reason of any act or
                  omission by the Vendor or any other member of the Vendor Group
                  on or prior to the applicable In-Scope Contract Completion
                  Date; and

         (b)      indemnify CSC against any payment required to be made and any
                  and all other liability CSC or any members of the CSC Group
                  may incur under in connection with the In-Scope Contract on or
                  in respect of the period prior to the applicable In-Scope
                  Contract Completion Date.

9.5      NO ASSIGNMENT OF NON-ASSIGNABLE CONTRACTS

         Neither this Transfer Agreement nor any action carried out in pursuance
         of it shall constitute an assignment or attempted assignment or
         declaration of trust of any In-Scope Contract or the benefit thereof
         which is not assignable or which cannot be made without the consent of
         another person if that assignment or attempted assignment or
         declaration would constitute a breach of that In-Scope Contract or an
         infringement of Intellectual Property, except to the extent that the
         consent is obtained.

10.      [EMPLOYEES

         The provisions of Schedule 2 (Employment Provisions) shall apply with
         regard to the Employees.

11.      PENSIONS AND RELATED BENEFITS

         The provisions of Schedule 8 (Pensions and Related Benefits) shall
         apply with regard to the pensions and related benefits of the
         Employees.](12)

(12)     Only include Clauses 11 and 12 for TA's where employees are
         transferring. Once these are removed, relevant cross-referencing will
         need to be checked and updated.

                                       22
<PAGE>

12.      WARRANTIES

12.1     WARRANTIES

         The Vendor warrants to CSC that the Warranties are true, accurate and
         not misleading as at the date of this Transfer Agreement.

12.2     LIMITATIONS ON CLAIMS

         The liability of the Vendor under the Warranties or any other provision
         of this Transfer Agreement shall (except in the case of fraud) be
         limited as set out in Schedule 7 (Limitations on Claims). The rights
         and remedies of CSC in respect of any breach of Warranty by the Vendor
         shall not be affected by (i) completion of the purchase of the Assets;
         or (ii) by any investigation or inquiry made or to be made by or on
         behalf of CSC following the date of this Transfer Agreement.

12.3     STATUS OF WARRANTIES

         CSC acknowledges that in entering into this Transfer Agreement and each
         of the other documents referred to herein it has not relied on any
         other statement, representation, act, fact, circumstance or warranty
         save and except for the Warranties and neither CSC nor any member of
         the CSC Group shall, save in the case of fraud or fraudulent
         misrepresentation, have any right of recovery or remedy in respect of a
         breach of the Warranties or of Clause 12.6 (Mutual Representations)
         save as expressly provided in this Transfer Agreement or the Asset
         Transfer Agreement.

12.4     NO RIGHT OF A PARTY TO RESCIND

         The sole remedy of CSC for breach by the Vendor of the Warranties and
         the sole remedy of each Party for a breach by any other Party of Clause
         12.6 (Mutual Representations) shall be damages and each Party
         acknowledges that it shall have no right to rescind this Transfer
         Agreement in any circumstances and irrevocably waives any other
         remedies it may have in relation to a breach by any other Party of the
         Warranties or Clause 12.6 (Mutual Representations) provided that
         nothing in this Clause shall operate to exclude any Party's liability
         for fraudulent misrepresentation.

12.5     MEANING OF "SO FAR AS THE VENDOR IS AWARE"

         If any of the Warranties are expressed to be given "so far as the
         Vendor is aware" or "to the best of the knowledge information and
         belief of the Vendor", or words to that effect, then such expression
         shall be deemed to include an additional statement to the effect that
         the relevant Warranty has been made after reasonable enquiries.

                                       23
<PAGE>

12.6     MUTUAL REPRESENTATIONS

         Each Party represents to each other Party that it has full power and
         authority to execute, deliver and perform its obligations under this
         Transfer Agreement and that there are no existing agreements or
         arrangements with third parties, the terms of which prevent such Party
         from entering into or performing its obligations under this Transfer
         Agreement.

12.7     WAIVER OF RIGHTS

         The Vendor agrees with CSC to waive any rights or claims which it may
         have in respect of any misrepresentation, inaccuracy or omission in, or
         from, any information or advice supplied or given by any of the
         Employees on which the Vendor or a member of the Vendor Group may have
         relied in connection with the giving of the Warranties and the
         preparation of the Disclosure Letter.

12.8     EXCLUSION OF IMPLIED TERMS

         All warranties, conditions, or terms not set out in this Agreement and
         which would otherwise be implied or incorporated into this Agreement by
         reason of statute, common law or otherwise (other than as to the title
         to goods) are hereby excluded, except to the extent they may not be
         excluded or limited by law.

13.      ASSIGNMENT AND THIRD PARTY RIGHTS

13.1     ASSIGNMENT

         (a)      Either CSC or the Vendor may assign all or any of its rights
                  or transfer all or any of its rights, obligations and
                  liabilities under this Transfer Agreement to any member of its
                  Group which is, for all purposes under this Transfer
                  Agreement, tax resident [and registered for VAT](13) in the
                  Territory (provided that if any such assignee or transferee
                  ceases at any time to be a member of the relevant Group or so
                  resident [or so registered for VAT](14) it shall, at the
                  request of the Vendor (in the case of an assignment by CSC) or
                  CSC (in the case of an assignment by the Vendor), immediately
                  reassign and re-transfer all such rights, obligations and
                  liabilities to a remaining member of the Group which is so
                  resident [and so registered for VAT](15)), and the Vendor (in
                  the case of an assignment by CSC) or CSC (in the case of an
                  assignment by the

(13)     Only include in European, Mexican and Brazilian TA's.
(14)     Only include in European, Mexican and Brazilian TA's.
(15)     Only include in European, Mexican and Brazilian TA's.

                                       24
<PAGE>

                  Vendor) consents to such an assignment or transfer and will
                  execute all deeds or other documents, and do all such acts as
                  the assigning Party may reasonably require in order to give
                  effect to such assignment or transfer. Any such assignment or
                  transfer shall not affect the assigning or transferring
                  Party's outstanding obligations or liabilities under this
                  Transfer Agreement for which it shall continue to remain
                  liable in the event the Party receiving the assignment of the
                  relevant rights, obligations and liabilities should fail to
                  meet their obligations or liabilities in relation thereto.

         (b)      Except as permitted under Clause 13.1(a), neither CSC nor the
                  Vendor may assign or transfer any of its rights, obligations
                  or liabilities under this Transfer Agreement without the prior
                  written consent of the other, such consent not to be
                  unreasonably withheld.

         (c)      Following any permitted assignment or transfer under Clause
                  13.1(a), any reference in this Transfer Agreement to the
                  Vendor or CSC (as the case may be) shall, where the context
                  allows, include a reference to the assignee or transferee (as
                  the case may be). Any permitted assignee or transferee shall
                  be treated for all purposes as if it had been an original
                  Party to (and been granted the relevant rights under) this
                  Transfer Agreement.

13.2     NO RIGHTS OF THIRD PARTIES

         The Parties do not intend any provision of this Transfer Agreement to
         be enforceable by any third party pursuant to the Contracts (Rights of
         Third Parties) Act 1999.

14.      ENTIRE AGREEMENT

14.1     ENTIRE AGREEMENT

         This Transfer Agreement, the Asset Transfer Agreement and the Master
         Services Agreement, together represent the entire agreement between the
         Parties in relation to the sale and purchase of the Assets and
         supersede any previous agreement, whether written or oral, between the
         Parties in relation to that subject matter.

14.2     NO LIABILITY UNLESS STATEMENT MADE FRAUDULENTLY

         No Party shall have any liability in respect of any misrepresentation
         or other statement (apart from the Warranties and the representation
         and warranty contained in Clause 12.6 (Mutual Representations)) being
         false, inaccurate and/or incomplete unless it was made fraudulently.

                                       25
<PAGE>
15.      NOTICES

15.1     NOTICES

         All notices and other communications relating to this Transfer
         Agreement:

         (a)      shall be in English and in writing;

         (b)      shall be delivered by hand or sent by post or facsimile;

         (c)      shall be delivered or sent to the Party concerned at the
                  relevant address or number, as appropriate, and marked all as
                  shown in Clause 15.2 (Initial details) (subject to such
                  amendments as may be notified from time to time in accordance
                  with this Clause by the relevant Party to the other Parties);

         (d)      may in the case of any claim form, judgment or other notice of
                  process on any Party be delivered or sent to their respective
                  registered offices from time to time; and

         (e)      shall take effect:

                  (i)      if delivered, upon delivery;

                  (ii)     if posted, at the earlier of the time of delivery and
                           (if posted in the United Kingdom by first class
                           registered post) 10 am on the second Business Day
                           after posting; or

                  (iii)    if sent by facsimile, when a complete and legible
                           copy of the communication, whether that sent by
                           facsimile or a hard copy sent by post or delivered by
                           hand, has been received at the appropriate address,

         provided that if any communication would otherwise become effective on
         a non-Business Day or after 5 pm on a Business Day, it shall instead
         become effective at 10 am on the next Business Day.

15.2     INITIAL DETAILS

         The initial details for the purposes of Clause 15.1 (Notices) are:

<TABLE>
<CAPTION>
         PARTY:                     THE VENDOR
         -----------------          ----------
         <S>                        <C>
         Address:                   [        ]
         Facsimile No:              [        ]
         Marked for
         the Attention of:          [        ]
</TABLE>

                                       26
<PAGE>

<TABLE>
<CAPTION>
         PARTY:                         CSC
         ----------------           ----------
         <S>                        <C>
         Address:                   [        ]
         Facsimile No:              [        ]
         Marked for
         the Attention of:          [        ]
</TABLE>

16.      AMENDMENTS AND WAIVERS

16.1     AMENDMENTS TO BE IN WRITING

         No amendment or variation of the terms of this Transfer Agreement shall
         be effective unless it is made or confirmed in a written document
         signed by all the Parties provided that the agreement of CSC to any
         such amendment or variation shall not be unreasonably withheld or
         delayed.

16.2     WAIVERS

         No delay in exercising or non-exercise by any Party of any of its
         rights under or in connection with this Transfer Agreement shall
         operate as a waiver or release of that right. Rather, any such waiver
         or release must be specifically granted in writing signed by the Party
         granting it.

17.      SEVERABILITY

         If any part of any provision of this Transfer Agreement shall be
         illegal, invalid or unenforceable in any respect, then the remainder of
         such provision and all other provisions of this Transfer Agreement
         shall remain valid and enforceable, and the remaining rights,
         obligations and liability of the parts under this Transfer Agreement
         shall not be affected or impaired.

18.      COSTS

         Except where this Transfer Agreement provides otherwise, each Party
         shall be responsible for all the costs, charges and expenses incurred
         by it in connection with and incidental to the preparation and
         completion of this Transfer Agreement, the other documents referred to
         in this Transfer Agreement and the sale and purchase under this
         Transfer Agreement.

                                       27
<PAGE>

19.      CONTINUING EFFECT

         Each provision of this Transfer Agreement shall continue in full force
         and effect after Completion, except to the extent that a provision has
         been fully performed on or before Completion.

20.      COUNTERPARTS

20.1     ANY NUMBER OF COUNTERPARTS

         This Transfer Agreement may be executed in any number of counterparts,
         and by the Parties on separate counterparts, but shall not be effective
         until both Parties has executed at least one counterpart.

20.2     EACH COUNTERPART AN ORIGINAL

         Each counterpart shall constitute an original of this Transfer
         Agreement, but all the counterparts shall together constitute but one
         and the same instrument.

21.      ANNOUNCEMENTS AND CONFIDENTIALITY

21.1     NO ANNOUNCEMENTS WITHOUT PRIOR APPROVAL

         The Parties mutually agree that no press or other public announcements
         (whether to shareholders, employees, customers, suppliers or otherwise)
         shall be made or sent out by them in respect of the subject matter of
         this Transfer Agreement or any ancillary matter without the text of the
         announcement receiving the prior written approval of all of the Parties
         (that approval not to be unreasonably withheld or delayed).

21.2     ANNOUNCEMENT EXCEPTIONS

         Any Party may make or send out any press or public announcement to the
         extent the announcement is:

         (a)      required by the law of any relevant jurisdiction;

         (b)      required by any securities exchange or regulatory or
                  Governmental Authority to which any Party is subject or
                  submits, wherever situated, including NASDAQ, the Securities
                  and Exchange Commission of the United States of America, the
                  London Stock Exchange, the UK Listing Authority or the
                  Takeovers and Mergers Panel, whether or not the requirement
                  for information has the force of law,

                                       28
<PAGE>

         in which case, the announcement shall only be made or sent out after
         consultation with (and after taking into account the reasonable
         requirements of) the other Parties as to the content of the
         announcement.

21.3     CONFIDENTIALITY

         Subject to Clause 21.1 (No announcements without prior approval), each
         Party shall treat as strictly confidential all information received or
         obtained as a result of entering into or performing this Transfer
         Agreement which relates to:

         (a)      the provisions of this Transfer Agreement or the other
                  documents referred to in this Transfer Agreement;

         (b)      the negotiations relating to this Transfer Agreement; or

         (c)      the other Parties.

21.4     CONFIDENTIALITY EXCEPTIONS

         Any of the Parties may disclose information referred to in Clause 21.3
         (Confidentiality) which would otherwise be confidential if and to the
         extent the disclosure is:

         (a)      required by the law of any relevant jurisdiction;

         (b)      required by any securities exchange or regulatory or
                  Governmental Authority to which any Party is subject or
                  submits, wherever situated, including NASDAQ, the Securities
                  and Exchange Commission of the United States of America, the
                  London Stock Exchange, the UK Listing Authority or the
                  Takeovers and Mergers Panel, whether or not the requirement
                  for disclosure has the force of law;

         (c)      required to vest in that Party the full benefit of this
                  Transfer Agreement in any of the Parties;

         (d)      disclosed to the professional advisers, auditors or bankers of
                  that Party or any other member of its Group;

         (e)      disclosed to the officers or employees of that Party or any
                  other member of its Group who need to know the information for
                  the purposes of the transactions effected or contemplated by
                  this Transfer Agreement subject to the condition that the
                  Party making the disclosure shall procure that those persons
                  comply

                                       29
<PAGE>

                  with Clause 21.3 (Confidentiality) as if they were parties to
                  this Transfer Agreement;

         (f)      of information that has already come into the public domain
                  through no fault of that Party;

         (g)      of information of the kind referred to in Clause 21.2(b)
                  (Confidentiality) which is already lawfully in the possession
                  of that Party (and not subject to any obligation of
                  confidentiality owed to any other Party) as evidenced by its
                  or its professional advisers' written records; or

         (h)      approved by the Parties having given prior written approval to
                  the disclosure,

         provided that any information disclosed pursuant to paragraph (a) or
         (b) of this Clause 21.4 shall be disclosed only after notice to the
         other Parties and the disclosing Party shall take reasonable steps to
         co-operate with the other Parties regarding the manner of that
         disclosure.

21.5     NO LIMIT IN TIME

         The restrictions contained in this Clause 21 (Announcements and
         Confidentiality) shall continue to apply without limit in time.

22.      DISPUTE RESOLUTION

22.1     Any question or difference which may arise concerning the construction,
         meaning, effect or operation of this Transfer Agreement or any matter
         arising out of or in connection with this Transfer Agreement shall in
         the first instance be referred to the CSC Service Delivery Manager and
         the Marconi Contract Manager.

22.2     If the matter is not resolved within ten (10) Business Days of it being
         referred to the managers referred to in Clause 22.1 the matter shall be
         referred to the next level of the Vendor's and CSC's management in
         accordance with the hierarchy set forth in Clause 22.3 who must meet
         within ten (10) Business Days or such other period as the Parties may
         agree to attempt to resolve the matter. If the matter is not resolved
         at that meeting, the escalation shall continue with the same maximum
         time interval through one more level of management. If the unresolved
         matter is having a serious effect on the Services, the Parties shall
         use every reasonable endeavour to reduce the elapsed time in completing
         the process.

                                       30
<PAGE>

22.3     The levels of escalation are:

<TABLE>
<CAPTION>
                                   CSC                                   THE VENDOR
                                   ----------------------------          ------------------------------------
         <S>                       <C>                                   <C>
         First Level               CSC Service Delivery Manager          Marconi Contract Manager
         Second Level              Account Executive                     Senior Vice  President - Information
                                                                         Technology
         Third Level               President - UK Division               Chief Operating Officer
</TABLE>

         If any of the above are unable to attend a meeting, a substitute may
         attend provided that such substitute has at least the same seniority
         and is authorised to settle the unresolved matter.

22.4     If the matter is not resolved at or before the Third Level then the
         matter shall be submitted to mediation by CEDR within 14 days of any
         Party giving written notice to the others of that Party's wish to refer
         the matter to mediation by CEDR provided that such notice shall only be
         given while the matter remains unresolved by the escalation process and
         shall be given no later than the date 14 days after the date of the
         meeting of the Third Level of management. The representative of the
         Party giving such notice, at the escalation level at which such notice
         is given, shall (except where such notice is given at the Third Level)
         promptly notify that Party's representative at the next level, in order
         of ascent, that such notice has been given. The costs of the mediator
         shall be shared equally between the Parties (each Party bearing its own
         other costs). Where a matter is submitted to mediation as envisaged by
         this Clause 23.4, the provisions or requirements of this Clause 22
         (Dispute Resolution) shall not be considered to have been applied or
         met until six (6) months after such submission.

22.5     No Party shall seek to initiate any proceedings in respect of, any
         unresolved matter until either escalation to and including the Third
         Level has been completed, unless such Party has reasonable cause to do
         so to avoid damage to its business or to protect or preserve any right
         of action it may have.

22.6     Notwithstanding anything in Clauses 22 (Dispute Resolution) or 23
         (Arbitration), nothing in those Clauses shall operate to restrict any
         Party's or any member of their Group's rights to apply for or obtain
         emergency or interlocutory relief.

                                       31
<PAGE>

23.      ARBITRATION

23.1     Subject to Clause 22.6 (Dispute Resolution), any dispute arising out of
         or in connection with this Transfer Agreement shall be resolved in
         accordance with the provisions of this Clause 23.

23.2     Before referring a dispute to arbitration in accordance with Clause
         23.4, the dispute shall in the first instance be dealt with in
         accordance with Clause 22 (Dispute Resolution).

23.3     Where pursuant to this Clause 23 any dispute is to be referred to
         arbitration, compliance with Clause 23.2 shall be a condition precedent
         to the making of an award, unless the Party referring the dispute to
         arbitration has reasonable cause to do so to protect or preserve any
         right of action it may have.

23.4     All disputes arising out of or in connection with this Transfer
         Agreement which cannot be resolved in accordance with Clauses 23.1 to
         23.2 shall be finally settled under the Rules of the London Court of
         International Arbitration by three arbitrators appointed in accordance
         with the said Rules. Furthermore:

         (a)      the place and the seat of the arbitration shall be London,
                  England; the tribunal shall have the power to conduct hearings
                  elsewhere if appropriate;

         (b)      the language of the arbitration, including all documents,
                  shall be English;

         (c)      the law governing this agreement to arbitrate shall be the law
                  of England and Wales.

24.      GOVERNING LAW

         The construction, interpretation and performance of this Transfer
         Agreement and all transactions under this Transfer Agreement shall be
         governed by the laws of England and Wales without reference to the
         UNCITRAL Conventions on Contracts for the International Sale of Goods
         and without giving effect to any provision of such law relating to
         conflict of laws; provided that, if any provision of this Transfer
         Agreement is required by the mandatorily applicable laws of the
         Territory to be subject to the laws of the Territory, the construction,
         interpretation and performance of such provision shall be governed by
         the internal laws of the Territory without reference to the UNCITRAL
         Conventions on Contracts for the International Sale of Goods. To the
         extent permitted by such applicable law, the Parties hereby waive any
         provision of

                                       32
<PAGE>

         law that renders any provision of this Transfer Agreement unenforceable
         in any respect.

25.      REGULATORY MATTERS

25.1     The Vendor shall continue to be responsible for, and shall duly and
         promptly pay and discharge all fines and penalties payable to any
         Governmental Authority which relate to the Internal Services and shall
         (subject to Clause 25.2) indemnify CSC against all liability CSC may
         incur arising out of, or in connection with any such fines or
         penalties.

25.2     The indemnity in Clause 25.1 shall not apply to any liability CSC may
         incur arising out of or in connection with the Internal Services to the
         extent attributable to any act or omission of CSC, any member of the
         CSC Group or its or their employees, agents or contractors.

26.      FURTHER ASSURANCE

         Each Party shall, whether before, on or after termination of this
         Transfer Agreement, do, execute and perform and shall procure to be
         done, executed and performed, all such further acts, deeds, documents
         and things as the other Party may reasonably require from time to time
         effectively to give effect to this Transfer Agreement.

27.      LANGUAGE

         The Parties have requested that this Transfer Agreement and all
         documents contemplated by this Transfer Agreement or relating to it be
         drawn up in the English language.

28.      INDEMNIFICATION PROCEDURE

28.1     A Party entitled to indemnification under this Transfer Agreement (the
         "INDEMNIFIED PARTY") shall give written notice as soon as reasonably
         practicable upon becoming aware of circumstances giving rise to a right
         of indemnity under this Transfer Agreement to the Party that is
         obligated to provide indemnification (the "INDEMNIFYING PARTY"). Within
         ten Business Days after such notice, the Indemnifying Party may notify,
         in writing, the Indemnified Party of its decision to take control of
         the defence of any claim made by any third party and which is the
         subject of the indemnity and, in such circumstances, the Indemnifying
         Party shall be entitled to take control of the defence and
         investigation of such claim and to employ and engage lawyers of its
         sole choice to handle and defend the same, at the Indemnifying Party's
         sole cost and expense. The Indemnified Party shall co-operate in all
         respects with the Indemnifying Party in the investigation and defence
         of such claim and shall not prejudice any defence to any such claim or
         attempt to settle or compromise such claim. No settlement of a claim
         which involves a remedy other than the payment of money by the
         Indemnifying Party shall:

         (a)      be made without the consent of the Indemnified Party, which
                  consent shall not be unreasonably withheld or delayed; or

         (b)      not include as an unconditional term thereof the giving by the
                  claimant to the Indemnified Party of a release from all
                  liability in respect of such claim.

         If the Indemnifying Party does not assume full control over the defence
         of a claim the Indemnified Party shall have the right to defend the
         claim in such manner as it may deem appropriate, at the cost and
         expense of the Indemnifying Party.

28.2     The Indemnified Party under this Clause 28 (Indemnification Procedure)
         shall use its reasonable endeavours to mitigate the Loss to which the
         relevant indemnity relates.

                                       33
<PAGE>
                                   SCHEDULE 1

                             CURRENT CONTRACTS(16)

Note: This schedule relates directly to the baseline costs. Some `contracts'
are in-fact just `contributions' to a contract in another country, eg Lotus,
NAI, Siebel, Microsoft & Oracle.

PART 1: EQUIPMENT CONTRACTS

GERMANY

None

UK

None

USA

[***]

PART 2: MAINTENANCE CONTRACTS

[***]

PART 3: THIRD PARTY SUPPLY CONTRACTS

[***].

PART 4: VEHICLE LEASES

[***].

PART 5: OPERATING SYSTEM LICENCES

[***].

[16] Delete references to contracts in Territories which are not relevant to
individual TA.

                                      35
<PAGE>
                                   SCHEDULE 2

                             EMPLOYMENT PROVISIONS

                                  CSC VERSION

[FOR INCLUSION IN UK & IRISH TA ONLY:

         DEFINED TERMS

         "APPROVED SUB-CONTRACTOR" has the meaning defined in the Master
         Services Agreement.

         "EUROPEAN REGULATIONS" means, in relation to a European Transferring
         Employee, the regulations implementing the provisions of EU Directive
         No. 77/187 dated 14 February 1977 (as amended by EU Directive No.
         98/50 dated 29 June 1998 and by EU Directive No. 2001/23 (to the
         extent that EU Directive No. 2001/23 has been implemented)) applicable
         to that European Transferring Employee's terms and conditions of
         employment.

         "EUROPEAN TRANSFERRING EMPLOYEES" means the persons identified in
         Schedule 3 (The Employees) as the European transferring employees.

         "REGULATIONS" means, in relation to a UK Transferring Employee, the
         regulations implementing the provisions of EC Directive No. 77/187
         dated 14 February 1977 (as amended by EU Directive No. 98/50 dated 29
         June 1998) and as amended by EU Directive No. 2001/23 dated 12 March
         2001 (to the extent that EU Directive No. 2001/23 has been
         implemented) including the Transfer of Undertakings (Protection of
         Employment) Regulations 1981 applicable to that UK Transferring
         Employee's terms and conditions of employment.

         "TAX" means and includes all forms of taxation and statutory,
         governmental, supra governmental, state, local governmental or
         municipal impositions, duties, contributions, deductions, withholdings
         and levies whether of the United Kingdom or elsewhere whenever imposed
         and all penalties, charges, costs and interest relating to any of
         them.

                                      36
<PAGE>
         "UK TRANSFERRING EMPLOYEES" means the persons identified in Schedule 3
         (The Employees) as being the UK transferring employees.

1.       UK EMPLOYEES

1.1      The Vendor and the Supplier acknowledge and agree that the Regulations
         shall apply to the UK Transferring Employees.

1.2      All salaries and other emoluments of the UK Transferring Employees
         shall be discharged and all Pay As You Earn, tax income deduction and
         National Insurance Contribution requirements ("TAX Deductions") shall
         be complied with by the Vendor for itself and as agent for any member
         of the Vendor Group who are the employers of the UK Transferring
         Employees in respect of all periods up to Completion and in respect of
         all share options granted or exercised prior to Completion and the
         salaries, other emoluments and Tax Deductions of the UK Transferring
         Employees in respect of the period after Completion shall be for the
         account of the Supplier.

1.3      (a)      The Vendor will upon the date two (2) weeks after the date of
                  signature of this Agreement and periodically two (2) weeks
                  thereafter up to Completion promptly notify the Supplier of
                  the following:

                  (i)      subject to Paragraph 1.3(b) of this Schedule 2, any
                           changes to the list of UK Transferring Employees
                           before Completion, in which case their name or names
                           will be deemed to have been deleted from the list in
                           Schedule 3 (The Employees);

                  (ii)     subject to Paragraph 1.3(b) of this Schedule 2, if
                           any UK Transferring Employee ceases to be primarily
                           engaged by the Vendor Group in performing services
                           which are the same or similar to the Services (the
                           "BUSINESS");

                  (iii)    if any UK Transferring Employee obtains a right to
                           return to work (whether for reasons connected with
                           maternity leave or absence by reason of illness or
                           incapacity or otherwise);

                  (iv)     if any UK Transferring Employee is given notice of
                           termination of his employment (or had his employment
                           terminated without notice);

                  (v)      if any offers of employment are made to any person
                           by the Vendor Group in relation to the Business and
                           if there is any person who has

                                      37
<PAGE>
                           accepted such an offer of employment made by the
                           Vendor Group but whose employment has not yet
                           started;

                  (vi)     if any order that has not yet been complied with has
                           been made for the reinstatement or re-engagement of
                           any of the UK Transferring Employees or any person
                           formerly employed or engaged in the Business;

                  (vii)    if there is any industrial action (other than
                           insignificant unofficial action) or trade dispute
                           (or related proceedings) by any UK Transferring
                           Employees affecting the Business; and

                  (viii)   if the Vendor Group becomes engaged or involved in
                           any dispute, claim or legal proceedings (whether
                           arising under contract, common law, statute or in
                           equity) with any of the UK Transferring Employees or
                           with any other person employed by the Vendor Group
                           in respect of whom liability is deemed to pass to
                           the Supplier or its Approved Sub-Contractors by
                           virtue of the Regulations and if the relevant member
                           of the Vendor Group becomes aware of any likelihood
                           of any such dispute, claim or proceedings arising at
                           any time.

         (b)      the Vendor undertakes from the date of signature of this
                  Agreement up to Completion without the prior written consent
                  of the Supplier not to:

                  (i)      add or remove any Key Employee (as defined in the
                           Master Services Agreement) to or from the list of UK
                           Transferring Employees; or

                  (ii)     change the names of more than [***] percent ([***]%)
                           of any other persons (not being Key Employees) from
                           the list of UK Transferring Employees provided that:

                           (aa)     the aggregate number of UK Transferring
                                    Employees will not change;

                           (bb)     any replacement personnel will have skills
                                    and experience which are substantially
                                    similar to those of the employees being
                                    replaced;

                           (cc)     the terms of employment of replacement
                                    personnel will not be materially better
                                    than those of the employees being replaced;

                                      38
<PAGE>
                           (dd)     the severance costs of replacement
                                    personnel will not be materially higher
                                    than those of the employees being replaced;
                                    and

                           (ee)     the Supplier is promptly advised of such
                                    changes; or

                  (iii)    make any material changes to the terms of employment
                           of the UK Transferring Employees. After Completion
                           the Vendor shall at Supplier's request and cost make
                           those employees who before Completion were used to
                           perform the services which are the same or similar
                           to the Services and who are working their notice
                           period, available to Supplier for the provision of
                           the Services until their actual termination dates.

1.4      The Vendor for itself and as agent for each member of the Vendor Group
         who are employers of any of the UK Transferring Employees shall
         indemnify the Supplier against:

         (a)      any act or omission or obligation or liability of the Vendor
                  Group arising out of or relating to the employment of any of
                  the UK Transferring Employees or any other employee or former
                  employee of the Vendor Group prior to Completion, unless such
                  act or omission or obligation or liability was caused by or
                  on behalf of the Supplier Group; and

         (b)      against all Loss arising out of any claim by any trade union,
                  works council, staff association, worker representative
                  (whether or not recognised by the Vendor Group) or employee
                  in respect of all or any of the employees working in the
                  provision of the Services, arising out of a failure or
                  alleged failure by the Vendor Group to comply with its legal
                  obligations to consult under any applicable law or
                  regulation.

1.5      The Supplier shall indemnify the Vendor for itself and as agent for
         each member of the Vendor Group who are employers of any of the UK
         Transferring Employees against:

         (a)      any act or omission or obligation or liability of the
                  Supplier before or after Completion arising out of or
                  relating to the employment or termination of employment of
                  any of the UK Transferring Employees, unless such act or

                                      39
<PAGE>
                  omission or obligation or liability was caused by or on
                  behalf of the Vendor Group; and

         (b)      any substantial changes to the terms of the employment of any
                  of the UK Transferring Employees to their detriment which are
                  made, proposed or anticipated to take effect after Completion
                  and any change in the identity of their employer which is a
                  significant change and to their detriment; and

         (c)      any breach by the Supplier of Regulation 10(3) of the
                  Regulations.

1.6      If any contract of employment of any UK Transferring Employee is found
         or alleged to continue with the Vendor Group after Completion, the
         Supplier agrees that:

         (a)      in consultation with the Vendor, it will within [***]
                  Business Days of being requested by the Vendor make to that
                  person an offer in writing to employ him or her under a new
                  contract of employment to take effect upon the termination
                  referred to below; and

         (b)      that offer of employment will be

                  (i)      on terms and conditions which, when taken as a
                           whole, do not materially differ from those for the
                           UK Transferring Employees who do transfer to the
                           Supplier on Completion; and

                  (ii)     fully compliant with the undertakings given by the
                           Supplier in Paragraph 1.11.

1.7      As soon as possible after the offer made by the Supplier has been
         accepted or rejected by that person, and in any event no later than
         the expiry of [***] Business Days after an offer has been made in
         accordance with Paragraph 1.6, the Supplier shall advise the Vendor
         which of those offers have been accepted or rejected. The Vendor shall
         or shall procure that the relevant employer of the UK Transferring
         Employee shall waive applicable notice periods for any such person who
         wishes to accept the Supplier's offer of employment. If the Supplier's
         offer of employment is rejected by that person, the Vendor shall or
         shall procure that the relevant employer of the UK Transferring
         Employee shall make that person available to the Supplier for the
         performance of the Services for so long as the Supplier may request,
         and shall not terminate, other than for cause or where the Supplier no
         longer requires the service of such employee, the

                                      40
<PAGE>
         employment of the person concerned. The Supplier shall be responsible
         for and shall indemnify the Vendor for itself and as agent for the
         member of the Vendor Group who is the employer of the UK Transferring
         Employee against all Loss arising directly or indirectly from the
         employment of that UK Transferring Employee from Completion of, if
         later, the date on which the relevant employment starts, until the
         termination of that employment unless such Loss was caused by or on
         behalf of the Vendor Group but not compensation for unfair or
         wrongful dismissal or breach of contract or any redundancy pay. The
         Supplier shall notify the Vendor if the Supplier no longer requires
         the service of such employee (a "CESSATION NOTICE") and the Vendor
         shall commence the legal termination process of the employment of the
         person concerned. In such a case the Supplier's indemnity in Paragraph
         1.7 shall only continue for a maximum [***] month period (or, where
         there is a longer period prescribed by law or by contract or necessary
         to comply with relevant law for the commencement and completion of the
         termination process, such longer period) from the date of its
         Cessation Notice and shall not include any period when such employee
         is providing services for the benefit of a member of the Vendor Group
         (other than the Services).

1.8      If any contract of employment of any person other than a UK
         Transferring Employee is found or alleged to continue with any member
         of the Supplier Group after Completion, the Vendor agrees that:

         (a)      in consultation with the Supplier, it will or will procure
                  that a member of the Vendor Group will within [***] Business
                  Days of being requested by the Supplier make to that person
                  an offer in writing to employ him or her under a new contract
                  of employment to take effect upon the termination referred to
                  below; and

         (b)      that offer of employment will be on terms and conditions
                  which, when taken as a whole, do not materially differ from
                  the terms and conditions of employment of that person
                  immediately before Completion.

1.9      As soon as possible after the offer made by the Vendor has been
         accepted or rejected by that person, and in any event no later than
         the expiry of [***] Business Days after an offer has been made in
         accordance with Paragraph 1.6, the Vendor shall advise the Supplier
         which of those offers have been accepted or rejected. The Supplier
         shall or shall procure that the relevant employers of such employees
         shall waive applicable

                                      41
<PAGE>
         notice periods for any such person who wishes to accept the Vendor's
         offer of employment. If the Vendor's offer of employment is accepted
         by that person, the Supplier shall or shall procure that the relevant
         employer of such person shall commence the legal termination process
         of the employment of the person concerned and the Vendor shall be
         responsible for and indemnify the Supplier against all Loss arising
         directly or indirectly from (i) the employment of that person from
         Completion or, if later, the date on which the relevant employment
         starts, until the termination of that employment and (ii) that
         termination (including any redundancy pay (which shall consist of a
         redundancy package equivalent to that which would have been made
         available to him or her immediately prior to Completion (which shall
         be no greater than those ex-gratia severance terms which are set out
         in the Disclosure Letter)) but not compensation for unfair or wrongful
         dismissal or breach of contract). Provided that the Supplier should
         not be required to commence the termination of employment process
         where any such termination would, in the reasonable opinion of the
         Supplier, be likely to give rise to an award of compensation to the
         employee in addition to redundancy pay or a payment in lieu of notice.
         The Vendor's indemnity in Paragraph 1.9(i) shall only continue for a
         maximum [***] month period (or, where there is a longer period
         prescribed by law or by contract or necessary to comply with relevant
         law for the commencement and completion of the termination process,
         such longer period) from Completion or, if later, the date on which
         the relevant employment starts, and shall not include any period when
         such employee is providing services for the benefit of a member of the
         Supplier Group (other than the Services).

1.10     The Vendor and the Supplier shall give each other such assistance as
         either may reasonably require to comply with the Regulations in
         relation to any such employee of a member of the Vendor Group whose
         contract of employment is found or alleged to transfer to any member
         of the Supplier Group and in contesting any claim by any such person
         at or before Completion resulting from or in connection with this
         Agreement.

1.11     The Supplier undertakes to the Vendor for itself and as agent for each
         member of the Vendor Group who are employers of any of the UK
         Transferring Employees, in addition to the Regulations and any
         applicable laws, rules and regulations and any applicable collective
         bargaining agreements:

                                      42
<PAGE>
         (a)      that the terms and conditions of employment and other
                  contractual benefits (other than in respect of pensions, to
                  which the provisions of Schedule 8 shall apply) enjoyed by
                  the UK Transferring Employees (details of which are set out
                  in the Disclosure Letter) in the period of [***] months from
                  Completion will be no less favourable than those enjoyed by
                  them prior to Completion (but without prejudice to any
                  improvements to salaries, wages or conditions agreed in
                  accordance with normal review procedures) save where
                  individual UK Transferring Employees in their absolute
                  discretion choose to agree to join the Supplier's flexible
                  benefits scheme generally offered to the Supplier's
                  employees;

         (b)      to maintain, following Completion, a medical insurance scheme
                  for the UK Transferring Employees which is the same or
                  substantially equivalent to the scheme provided for them
                  prior to Completion, details of which are set out in the
                  Disclosure Letter; and

         (c)      in the event of the Supplier effecting enforced redundancy of
                  any of the UK Transferring Employees in the period of [***]
                  months from Completion, to make available or procure that
                  there is available to each UK Transferring Employee a package
                  equivalent to that which would have been made available to
                  him had he or she still been an employee of the Vendor Group
                  at the date of that redundancy but which shall be no greater
                  than those ex-gratia severance terms which are set out in the
                  Disclosure Letter.

1.12     Immediately following Completion, the Vendor and the Supplier shall
         send to each of the UK Transferring Employees a joint letter in agreed
         terms.

1.13     The Vendor and the Supplier shall respectively consult and keep each
         other fully informed regarding any information they propose to give to
         the UK Transferring Employees and their representatives or any
         consultation they have with the UK Transferring Employees and their
         representatives regarding the subject matter of this Agreement prior
         to Completion, and each will offer the other the opportunity to attend
         and participate in any meetings prior to Completion at which
         information is given to or there is consultation with UK Transferring
         Employees and their representatives.

                                      43
<PAGE>
1.14     Immediately after Completion, the Vendor shall deliver promptly or
         procure the delivery to the Supplier copies of all reasonably
         available personnel and employment records and full particulars of:

         (a)      each UK Transferring Employee, including name, ID number,
                  sex, and the date on which continuity of employment began for
                  each UK Transferring Employee for statutory purposes;

         (b)      standard terms and conditions of employment of each category
                  of UK Transferring Employee;

         (c)      all payments, benefits or changes to terms and conditions of
                  employment promised to any UK Transferring Employee;

         (d)      dismissals (other than voluntary redundancies) of those
                  employees primarily engaged in providing the Services
                  effected within the [***] months prior to Completion and
                  disciplinary records (if any) relating to those employees
                  primarily engaged in providing the Services;

         (e)      all agreements or arrangements entered into in relation to
                  the UK Transferring Employees between the Vendor or relevant
                  employer and any trade union or association of trade unions
                  or organisation or body of employees including elected
                  representatives; and

         (f)      all strikes or other industrial action (other than
                  insignificant unofficial action) taken by any UK Transferring
                  Employee within the [***] months prior to Completion.

         This Paragraph shall be subject to compliance with any applicable law
         or regulation. If the provisions of that law or regulation prohibit
         full compliance with this Paragraph then the Vendor shall take all
         such steps as it can lawfully undertake to ensure as full compliance
         as possible with this Paragraph.

2.       EUROPEAN EMPLOYEES

2.1      The Vendor and the Supplier acknowledge that the European Regulations
         shall apply to the European Transferring Employees.

                                      44
<PAGE>
2.2      All salaries and other emoluments of the European Transferring
         Employees shall be discharged and all Tax deductions shall be complied
         with by the Vendor for itself and as agent for any member of the
         Vendor Group who is the employer of the European Transferring
         Employees in respect of all periods up to and including Completion and
         in respect of all share options granted or exercised prior to
         Completion and the salaries, other emoluments and Tax deductions of
         the European Transferring Employees in respect of the period after
         Completion shall be for the account of the Supplier.

2.3      (a)      The Vendor will upon the date two (2) weeks after the date of
                  signature of this Agreement and periodically two (2) weeks
                  thereafter up to Completion promptly notify the Supplier of
                  the following:

                  (i)      subject to Paragraph 2.3 (b) of this Schedule 2, any
                           changes to the list of European Transferring
                           Employees before Completion, in which case their
                           name or names will be deemed to have been deleted
                           from the list in Schedule 3;

                  (ii)     subject to Paragraph 2.3 (b) of this Schedule 2, if
                           any European Transferring Employee ceases to be
                           primarily engaged by the Vendor Group in performing
                           services which are the same or similar to the
                           Services (the "Business");

                  (iii)    if any European Transferring Employee obtains a
                           right to return to work (whether for reasons
                           connected with maternity leave or absence by reason
                           of illness or incapacity or otherwise);

                  (iv)     if any European Transferring Employee is given
                           notice of termination of his employment (or had his
                           employment terminated without notice);

                  (v)      if any offers of employment are made to any person
                           by the Vendor Group in relation to the Business and
                           if there is any person who has accepted such an
                           offer of employment made by the Vendor Group but
                           whose employment has not yet started;

                  (vi)     if any order that has not been complied with has
                           been made for the reinstatement or re-engagement of
                           any of the European Transferring Employees or any
                           person formerly employed or engaged in the Business;

                                      45
<PAGE>
                  (vii)    if there is any industrial action (other than
                           insignificant unofficial action) or trade dispute
                           (or related proceedings) by any European
                           Transferring Employees affecting the Business; and

                  (viii)   if the Vendor Group becomes engaged or involved in
                           any dispute, claim or legal proceedings (whether
                           arising under contract, common law, statute or in
                           equity) with any of the European Transferring
                           Employees or with any other person employed by the
                           Vendor Group in respect of whom liability is deemed
                           to pass to the Supplier or its Approved
                           Sub-Contractors by virtue of the European
                           Regulations and if the relevant member of the Vendor
                           Group becomes aware of any likelihood of any such
                           dispute, claim or proceedings arising at any time.

         (b)      the Vendor undertakes from the date of signature of this
                  Agreement up to Completion without the prior written consent
                  of the Supplier not to:

                  (i)      add or remove any Key Employee to or from the list
                           of European Transferring Employees; or

                  (ii)     change the names of more than [***] of any other
                           persons (not being Key Employees) from the list of
                           European Transferring Employees provided that:

                           (aa)     the aggregate number of European
                                    Transferring Employees will not change;

                           (bb)     any replacement personnel will have skills
                                    and experience which are substantially
                                    similar to those of the employees being
                                    replaced;

                           (cc)     the terms of employment of replacement
                                    personnel will not be materially better
                                    than those of the employees being replaced;

                           (dd)     the severance costs of replacement
                                    personnel will not be materially higher
                                    than those of the employees being replaced,
                                    and

                           (ee)     the Supplier is promptly advised of such
                                    changes; or

                  (iii)    make any material changes to the terms of employment
                           of the European Transferring Employees. After
                           Completion the Vendor shall at Supplier's request
                           and cost make those employees who before Completion
                           were used to perform the services which are the same
                           or similar to the Services and who are

                                      46
<PAGE>
                  working their notice period, available to Supplier for the
                  provision of the Services until their actual termination
                  dates.

2.4      The Vendor for itself and as agent for each member of the Vendor Group
         who are employers of any of the European Transferring Employees shall
         indemnify the Supplier against:

         (a)      any act or omission or obligation or liability of the Vendor
                  Group, arising out of or relating to the employment of any of
                  the European Transferring Employees or any other employee or
                  former employee of the Vendor Group prior to Completion,
                  unless such act or omission or obligation or liability was
                  caused by or on behalf of the Supplier Group; and

         (b)      all Loss arising out of any claim by any trade union, works
                  council, staff association, worker representative (whether or
                  not recognised by the Vendor Group) or employee in respect of
                  all or any of the employees working in the provision of the
                  Services, arising out of a failure or alleged failure by the
                  Vendor Group to comply with its legal obligations to consult
                  under any applicable law or regulation.

2.5      The Supplier shall indemnify the Vendor for itself and as agent for
         each member of the Vendor Group who are employers of the European
         Transferring Employees against:

         (a)      any act or omission or obligation or liability of the
                  Supplier before or after Completion arising out of or
                  relating to the employment or termination of employment of
                  any of the European Transferring Employees unless such act or
                  omission or obligation or liability was caused by or on
                  behalf of the Vendor Group; and

         (b)      any substantial changes to the terms of the employment of any
                  of the European Transferring Employees to their detriment
                  which are made, proposed or anticipated to take effect after
                  Completion and any change in the identity of their employer
                  which is a significant change and to their detriment; and

                                      47
<PAGE>
         (c)      any breach by the Supplier of its obligations to inform and
                  consult with trade unions, works councils or employee
                  representatives to the extent required by the European
                  Regulations or national laws.

2.6      If any contract of employment of any European Transferring Employee is
         found or alleged to continue with the Vendor Group after Completion,
         the Supplier agrees that:

         (a)      in consultation with the Vendor, it will within [***]
                  Business Days of being requested by the Vendor make to that
                  person an offer in writing to employ him or her under a new
                  contract of employment to take effect upon the termination
                  referred to below; and

         (b)      that offer of employment will be:

                  (i)      on terms and conditions which, when taken as a
                           whole, do not materially differ from those for the
                           European Transferring Employees who do transfer to
                           the Supplier on Completion; and

                  (ii)     fully compliant with the undertakings given by the
                           Supplier in Paragraph 2.11.

2.7      As soon as possible after the offer made by the Supplier has been
         accepted or rejected by that person, and in any event no later than
         the expiry of [***] Business Days after an offer has been made in
         accordance with Paragraph 2.6, the Supplier shall advise the Vendor
         which of those offers have been accepted or rejected. The Vendor shall
         or shall procure that the relevant employer of the European
         Transferring Employee shall waive applicable notice periods for any
         such person who wishes to accept the Supplier's offer of employment.
         If the Supplier's offer of employment is rejected by that person, the
         Vendor shall or shall procure that the relevant employer of the
         European Transferring Employee shall make that person available to the
         Supplier for the performance of the Services for so long as the
         Supplier may request, and shall not terminate, other than for cause or
         where the Supplier no longer requires the service of such employee,
         the employment of the person concerned. The Supplier shall be
         responsible for and shall indemnify the Vendor for itself and as agent
         for the member of the Vendor Group who is the employer of the European
         Transferring Employee against all Loss arising directly or indirectly
         from the employment of that European Transferring Employee from
         Completion or, if later, the date on which the relevant employment
         starts until the termination of that employment unless such Loss was

                                      48
<PAGE>
         caused by or on behalf of the Vendor Group but not compensation for
         unfair or wrongful dismissal or breach of contract or any redundancy
         pay). The Supplier shall notify the Vendor if the Supplier no longer
         requires the service of such employee (a "CESSATION NOTICE") and the
         Vendor shall commence the legal termination process of the employment
         of the person concerned. In such a case the Supplier's indemnity in
         Paragraph 2.7 shall only continue for a maximum [***] month period
         (or, where there is a longer period prescribed by law or by contract
         or necessary to comply with relevant law for the commencement and
         completion of the termination process, such longer period) from the
         date of its Cessation Notice and shall not include any period when
         such employee is providing services for the benefit of a member of the
         Vendor Group (other than the Services).

2.8      If any contract of employment of any person other than a European
         Transferring Employee is found or alleged to continue with any member
         of the Supplier Group after Completion, the Vendor agrees that:

         (a)      in consultation with the Supplier, it will or will procure
                  that a member of the Vendor Group will within [***] Business
                  Days of being requested by the Supplier to make to that
                  person an offer in writing to employ him or her under a new
                  contract of employment to take effect upon the termination
                  referred to below: and

         (b)      that offer of employment will be on terms and conditions
                  which, when taken as a whole, do not materially differ from
                  the terms and conditions of employment of that person
                  immediately before Completion.

2.9      As soon as possible after the offer made by the Vendor has been
         accepted or rejected by that person, and in any event no later than
         the expiry of [***] Business Days after an offer has been made in
         accordance with Paragraph 1.6, the Vendor shall advise the Supplier
         which of those offers have been accepted or rejected. The Supplier
         shall or shall procure that the relevant employers of such employees
         shall waive applicable notice periods for any such person who wishes
         to accept the Vendor's offer of employment. If the Vendor's offer of
         employment is rejected by that person, the Supplier shall or shall
         procure that the relevant employer of such person shall commence the
         legal termination process of the employment of the person concerned
         and the Vendor shall be responsible for and indemnify the Supplier
         against all Loss arising directly or indirectly from (i) the
         employment of that person from Completion or, if later, the date on
         which the relevant employment starts, until the termination of

                                      49
<PAGE>
         that employment and (ii) that termination (including any redundancy
         pay (which shall consist of a redundancy package equivalent to that
         which would have been made available to him or her immediately prior
         to Completion (which shall be no greater than those ex-gratia
         severance terms which are set out in the Disclosure Letter)) but not
         compensation for unfair or wrongful dismissal or breach of contract).
         Provided that the Supplier should not be required to commence the
         termination of employment process where any such termination would, in
         the reasonable opinion of the Supplier, be likely to give rise to an
         award of compensation to the employee in addition to redundancy pay or
         a payment in lieu of notice. The Vendor's indemnity in Paragraph
         2.9(i) shall only continue for a maximum [***] month period (or, where
         there is a longer period prescribed by law or by contract or necessary
         to comply with the relevant law for the commencement and completion of
         the termination process, such longer period) from Completion or, if
         later, the date on which the relevant employment starts and shall not
         include any period when such employee is providing services for the
         benefit of a member of the Supplier Group (other than the Services).

2.10     The Vendor and the Supplier shall give each other such assistance as
         either may reasonably require to comply with the European Regulations
         in relation to any such employee of a member of the Vendor Group whose
         contract of employment is found or alleged to transfer to any member
         of the Supplier Group and in contesting any claim by any such person
         at or before Completion resulting from or in connection with this
         Agreement.

2.11     The Supplier undertakes to the Vendor for itself and as agent for each
         member of the Vendor Group who are employers of any of the European
         Transferring Employees, in addition to the European Regulations and
         any applicable laws, rules and regulations of the relevant European
         Country and any applicable collective bargaining agreements:

         (a)      that the terms and conditions of employment and other
                  contractual benefits (other than in respect of pensions, to
                  which the provisions of Schedule 8 shall apply) enjoyed by
                  the European Transferring Employees (details of which are set
                  out in the Disclosure Letter) in the period of [***] ([***])
                  months from Completion will be no less favourable than those
                  enjoyed by them prior to Completion (but without prejudice to
                  any improvements to salaries, wages or

                                      50
<PAGE>
                  conditions agreed in accordance with normal review
                  procedures) save where individual European Transferring
                  Employees in their absolute discretion choose to agree to
                  join the Supplier's flexible benefits scheme generally
                  offered to the Supplier's employees;

         (b)      to maintain, following Completion, a medical insurance scheme
                  for the European Transferring Employees which is the same or
                  substantially equivalent to the scheme provided for them
                  prior to Completion, details of which are set out in the
                  Disclosure Letter; and

         (c)      in the event of the Supplier effecting enforced redundancy of
                  any of the European Transferring Employees in the period of
                  [***] months from Completion, to make available or procure
                  that there is available to each European Transferring
                  Employee a package equivalent to that which would have been
                  made available to him had he or she still been an employee of
                  the Vendor Group at the date of that redundancy but which
                  shall be no greater than those ex-gratia severance terms
                  which are set out in the Disclosure Letter.

2.12     Immediately following Completion, the Vendor and the Supplier shall
         send to each of the European Transferring Employees a joint letter in
         agreed terms.

2.13     The Vendor and the Supplier shall respectively consult and keep each
         other fully informed regarding any information they propose to give to
         the European Transferring Employees and their representatives or any
         consultation they have with the European Transferring Employees and
         their representatives regarding the subject matter of this Agreement
         prior to Completion, and each will offer the other the opportunity to
         attend and participate in any meetings prior to Completion at which
         information is given to or there is consultation with European
         Transferring Employees and their representatives.

2.14     Immediately after Completion, the Vendor shall deliver promptly or
         procure the delivery to the Supplier copies of all reasonably
         available personnel and employment records and full particulars of:

         (a)      each European Transferring Employee, including name, ID
                  number, sex, and the date on which continuity of employment
                  began for each European Transferring Employee for statutory
                  purposes;

                                      51
<PAGE>
         (b)      standard terms and conditions of employment of each category
                  of European Transferring Employee;

         (c)      all payments, benefits or changes to terms and conditions of
                  employment promised to any European Transferring Employee;

         (d)      dismissals (other than voluntary redundancies) of those
                  employees primarily engaged in providing the Services
                  effected within the [***] months prior to Completion and
                  disciplinary records (if any) relating to those employees
                  primarily engaged in providing the Services;

         (e)      all agreements or arrangements entered into in relation to
                  the European Transferring Employees between the Vendor or
                  relevant employer and any trade union or association of trade
                  unions or organisation or body of employees including elected
                  representatives; and

         (f)      all strikes or other industrial action (other than
                  insignificant unofficial action) taken by any European
                  Transferring Employee within the [***] ([***]) months prior
                  to Completion.

         This Paragraph shall be subject to compliance with any applicable law
         or regulation. If the provisions of that law or regulation prohibit
         full compliance with this Paragraph then the Vendor shall take all
         such steps as it can lawfully undertake to ensure as full compliance
         as possible with this Paragraph.

3.       LONG TERM SICKNESS

3.1      The Parties acknowledge that individuals who are absent from work at
         Completion by reason of long term sickness as identified in Schedule
         3C (Long Term Sick Employees) are not listed in Schedule 3 (The
         Employees) and will not transfer to the Supplier on Completion
         pursuant to the Regulations or the European Regulations or otherwise.
         If within [***] months of the date of signature of this Agreement such
         an individual returns to work for the Marconi Group Paragraphs 1.6 and
         1.7 of this Schedule shall apply save that:

         (a)      the Supplier is only obliged to use reasonable endeavours to
                  ensure that the terms and conditions of that offer of
                  employment meet the conditions of Paragraph 1.6(b)(i) and
                  (ii); and

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<PAGE>
         (b)      Paragraph 1.7 shall only apply to the extent that the
                  individual is providing services for the benefit of a member
                  of the Supplier Group.

4.       LEGAL RIGHT TO WORK

4.1      The Parties acknowledge that individuals who are not nationals of the
         country in which they work may have the right to work for the Marconi
         Group but may not be legally permitted to transfer to the Supplier
         Group or may lose the benefit of any current application for residency
         or similar rights. Such individuals are identified in Schedule 3D
         (Non-National Employees) are not listed in Schedule 3 (The Employees)
         and will not transfer to the Supplier on Completion pursuant to the
         Regulations, European Regulations or otherwise. Marconi or the
         relevant employer of the people listed in Schedule 3D shall make those
         people available to the Supplier for the performance of the Services.
         When such individual is granted the necessary status to enable him to
         legally transfer to CSC without loss of legal status Paragraphs 1.6
         and 1.7 of this Schedule shall apply providing that the individual is
         providing services to the Supplier save that the Supplier is only
         obliged to use reasonable endeavours to ensure that the terms and
         conditions of that offer of employment meet the conditions of
         Paragraph 1.6(b)(i) and (ii).]

[FOR INCLUSION IN EU (NOT UK AND IRELAND) TA ONLY:

         DEFINED TERMS

         "APPROVED SUB-CONTRACTOR" has the meaning defined in the Master
         Services Agreement.

         "EUROPEAN REGULATIONS" means, in relation to a European Transferring
         Employee, the regulations implementing the provisions of EC Directive
         No. 77/187 dated 14 February 1977 as amended by EU Directive No. 98/50
         dated 29 June 1998 and as amended by EU Directive No. 2001/23 dated 12
         March 2001 (to the extent that EU Directive No. 2001/23 has been
         implemented) applicable to that European Transferring Employee's terms
         and conditions of employment.

         "EUROPEAN TRANSFERRING EMPLOYEES" means the persons identified in
         Schedule 3 (The Employees) as the European transferring employees.

         "TAX" means and includes all forms of taxation and statutory,
         governmental, supra governmental, state, local governmental or
         municipal impositions, duties, contributions, deductions, withholdings
         and levies whether of the United Kingdom or

                                      53
<PAGE>
         elsewhere whenever imposed and all penalties, charges, costs and
         interest relating to any of them.

1.       EUROPEAN EMPLOYEES

1.1      The Vendor and the Supplier acknowledge that the European Regulations
         shall apply to the European Transferring Employees.

1.2      All salaries and other emoluments of the European Transferring
         Employees shall be discharged and all Tax deductions shall be complied
         with by the Vendor for itself and as agent for any member of the
         Vendor Group who is the employer of the European Transferring
         Employees in respect of all periods up to and including Completion and
         in respect of all share options granted or exercised prior to
         Completion and the salaries, other emoluments and Tax deductions of
         the European Transferring Employees in respect of the period after
         Completion shall be for the account of the Supplier.

1.3      (a)      The Vendor will upon the date two (2) weeks after the date of
                  signature of this Agreement and periodically two (2) weeks
                  thereafter up to Completion promptly notify the Supplier of
                  the following:

                  (i)      subject to Paragraph 1.3 (b) of this Schedule 2, any
                           changes to the list of European Transferring
                           Employees before Completion, in which case their
                           name or names will be deemed to have been deleted
                           from the list in Schedule 3;

                  (ii)     subject to Paragraph 1.3 (b) of this Schedule 2, if
                           any European Transferring Employee ceases to be
                           primarily engaged by the Vendor Group in performing
                           services which are the same or similar to the
                           Services (the "BUSINESS");

                  (iii)    if any European Transferring Employee obtains a
                           right to return to work (whether for reasons
                           connected with maternity leave or absence by reason
                           of illness or incapacity or otherwise);

                  (iv)     if any European Transferring Employee is given
                           notice of termination of his employment (or had his
                           employment terminated without notice);

                  (v)      if any offers of employment are made to any person
                           by the Vendor Group in relation to the Business and
                           if there is any person who has

                                      54
<PAGE>
                           accepted such an offer of employment made by the
                           Vendor Group but whose employment has not yet
                           started;

                  (vi)     if any order that has not been complied with has
                           been made for the reinstatement or re-engagement of
                           any of the European Transferring Employees or any
                           person formerly employed or engaged in the Business;

                  (vii)    if there is any industrial action (other than
                           insignificant unofficial action) or trade dispute
                           (or related proceedings) by any European
                           Transferring Employees affecting the Business; and

                  (viii)   if the Vendor Group becomes engaged or involved in
                           any dispute, claim or legal proceedings (whether
                           arising under contract, common law, statute or in
                           equity) with any of the European Transferring
                           Employees or with any other person employed by the
                           Vendor Group in respect of whom liability is deemed
                           to pass to the Supplier or its Approved
                           Sub-Contractors by virtue of the European
                           Regulations and if the Vendor Group becomes aware of
                           any likelihood of any such dispute, claim or
                           proceedings arising at any time.

         (b)      the Vendor undertakes from the date of signature of this
                  Agreement up to Completion without the prior written consent
                  of the Supplier not to:

                  (i)      add or remove any Key Employee to or from the list
                           of European Transferring Employees; or

                  (ii)     change the names of more than [***] percent ([***]%)
                           of any other persons (not being Key Employees) from
                           the list of European Transferring Employees provided
                           that:

                           (aa)     the aggregate number of European
                                    Transferring Employees will not change;

                           (bb)     any replacement personnel will have skills
                                    and experience which are substantially
                                    similar to those of the employees being
                                    replaced;

                           (cc)     the terms of employment of replacement
                                    personnel will not be materially better
                                    than those of the employees being replaced;

                                      55
<PAGE>
                           (dd)     the severance costs of replacement
                                    personnel will not be materially higher
                                    than those of the employees being replaced,
                                    and

                           (ee)     the Supplier is promptly advised of such
                                    changes; or

                  (iii)    make any material changes to the terms of employment
                           of the European Transferring Employees. After
                           Completion the Vendor shall at Supplier's request
                           and cost make those employees who before Completion
                           were used to perform the services which are the same
                           or similar to the Services and who are working their
                           notice periods, available to Supplier for the
                           provision of the Services until their actual
                           termination dates.

1.4      The Vendor for itself and as agent for each member of the Vendor Group
         who are employers of any of the European Transferring Employees shall
         indemnify the Supplier against:

         (a)      any act or omission or obligation or liability of the Vendor
                  Group, arising out of or relating to the employment of any of
                  the European Transferring Employees or any other employee or
                  former employee of the Vendor Group prior to Completion,
                  unless such act or omission or obligation or liability was
                  caused by or on behalf of the Supplier Group; and

         (b)      against all Loss arising out of any claim by any trade union,
                  works council, staff association, worker representative
                  (whether or not recognised by the Vendor Group) or employee
                  in respect of all or any of the employees working in the
                  provision of the Services, arising out of a failure or
                  alleged failure by the Vendor Group to comply with its legal
                  obligations to consult under any applicable law or
                  regulation.

1.5      The Supplier shall indemnify the Vendor for itself and as agent for
         each member of the Vendor Group who are employers of the European
         Transferring Employees against:

         (a)      any act or omission or obligation or liability of the
                  Supplier before or after Completion arising out of or
                  relating to the employment or termination of employment of
                  any of the European Transferring Employees unless such act or
                  omission or obligation or liability was caused by or on
                  behalf of the Vendor Group; and

                                      56
<PAGE>
         (b)      any substantial changes to the terms of the employment of any
                  of the European Transferring Employees to their detriment
                  which are made, proposed or anticipated to take effect after
                  Completion and any change in the identity of their employer
                  which is a significant change and to their detriment; and

         (c)      any breach by the Supplier of its obligations to inform and
                  consult with trade unions, works councils or employee
                  representatives to the extent required by the European
                  Regulations or national laws.

1.6      If any contract of employment of any European Transferring Employee is
         found or alleged to continue with the Vendor Group after Completion,
         the Supplier agrees that:

         (a)      in consultation with the Vendor, it will within [***]
                  Business Days of being requested by the Vendor make to that
                  person an offer in writing to employ him or her under a new
                  contract of employment to take effect upon the termination
                  referred to below; and

         (b)      that offer of employment will be:

                  (i)      on terms and conditions which, when taken as a
                           whole, do not materially differ from those for the
                           European Transferring Employees who do transfer to
                           the Supplier on Completion; and

                  (ii)     fully compliant with the undertakings given by the
                           Supplier in Paragraph 1.11.

1.7      As soon as possible after the offer made by the Supplier has been
         accepted or rejected by that person, and in any event no later than
         the expiry of [***] Business Days after an offer has been made in
         accordance with Paragraph 1.6, the Supplier shall advise the Vendor
         which of those offers have been accepted or rejected. The Vendor shall
         or shall procure that the relevant employer of the European
         Transferring Employee shall waive applicable notice periods for any
         such person who wishes to accept the Supplier's offer of employment.
         If the Supplier's offer of employment is rejected by that person, the
         Vendor shall or shall procure that the relevant employer of the
         European Transferring Employee shall make that person available to the
         Supplier for the performance of the Services for so long as the
         Supplier may request, and shall not terminate, other than for cause or
         where the Supplier no longer requires the service of such employee,
         the employment of the person concerned. The Supplier shall be
         responsible for and shall indemnify the Vendor for itself and as agent
         for the member of the Vendor Group who is the employer of the European
         Transferring Employee

                                      57
<PAGE>
         against all Loss arising directly or indirectly from the employment of
         that European Transferring Employee from Completion of, if later, the
         date on which the relevant employment starts, until the termination of
         that employment unless such Loss was caused by or on behalf of the
         Vendor Group but not compensation for unfair or wrongful dismissal or
         breach of contract or any redundancy pay). The Supplier shall notify
         the Vendor if the Supplier no longer requires the service of such
         employee (a "CESSATION NOTICE") and the Vendor shall commence the
         legal termination process of the employment of the person concerned.
         In such a case the Supplier's indemnity in Paragraph 1.7 shall only
         continue for a maximum [***] month period (or, where there is a longer
         period prescribed by law or by contract or necessary to comply with
         relevant law for commencement and completion of the termination
         process, such longer period) from the date of its Cessation Notice and
         shall not include any period when such employee is providing services
         for the benefit of a member of the Vendor Group (other than the
         Services).

1.8      If any contract of employment of any person other than a European
         Transferring Employee is found or alleged to continue with any member
         of the Supplier Group after Completion, the Vendor agrees that:

         (a)      in consultation with the Supplier, it will or will procure
                  that a member of the Vendor Group will within [***] Business
                  Days of being requested by the Supplier to make to that
                  person an offer in writing to employ him or her under a new
                  contract of employment to take effect upon the termination
                  referred to below; and

         (b)      that offer of employment will be on terms and conditions
                  which, when taken as a whole, do not materially differ from
                  the terms and conditions of employment of that person
                  immediately before Completion.

1.9      As soon as possible after the offer made by the Vendor has been
         accepted or rejected by that person, and in any event no later than
         the expiry of [***] Business Days after an offer has been made in
         accordance with Paragraph 1.6, the Vendor shall advise the Supplier
         which of those offers have been accepted or rejected. The Supplier
         shall or shall procure that the relevant employers of such employees
         shall waive applicable notice periods for any such person who wishes
         to accept the Vendor's offer of employment. If the Vendor's offer of
         employment is rejected by that person, the Supplier shall or shall
         procure that the relevant employer of such person shall commence the
         legal termination process of the employment of the person concerned
         and the Vendor shall be responsible for and indemnify the Supplier
         against all Loss arising directly or indirectly from (i) the
         employment of that person from Completion

                                      58
<PAGE>
         or, if later, the date on which the relevant employment starts until
         the termination of that employment and (ii) that termination
         (including any redundancy pay (which shall consist of a redundancy
         package equivalent to that which would have been made available to him
         or her immediately prior to Completion (which shall be no greater than
         those ex-gratia severance terms which are set out in the Disclosure
         Letter)) but not compensation for unfair or wrongful dismissal or
         breach of contract). Provided that the Supplier should not be required
         to commence the termination of employment process where any such
         termination would, in the reasonable opinion of the Supplier, be
         likely to give rise to an award of compensation to the employee in
         addition to redundancy pay or a payment in lieu of notice. The
         Vendor's indemnity in Paragraph 1.9(i) shall only continue for a
         maximum [***] month period (or, where there is a longer period
         prescribed by law or by contract or necessary to comply with relevant
         law for the commencement and completion of the termination process,
         such longer period) from Completion or, if later, the date on which
         the relevant employment starts and shall not include any period when
         such employee is providing services for the benefit of a member of the
         Supplier Group (other than the Services).

1.10     The Vendor and the Supplier shall give each other such assistance as
         either may reasonably require to comply with the European Regulations
         in relation to any such employee of a member of the Vendor Group whose
         contract of employment is found or alleged to transfer to any member
         of the Supplier Group and in contesting any claim by any such person
         at or before Completion resulting from or in connection with this
         Agreement.

1.11     The Supplier undertakes to the Vendor for itself and as agent for each
         member of the Vendor Group who are employers of any of the European
         Transferring Employees, in addition to the European Regulations and
         any applicable laws, rules and regulations of the relevant European
         Country and any applicable collective bargaining agreements:

         (a)      that the terms and conditions of employment and other
                  contractual benefits (other than in respect of pensions, to
                  which the provisions of Schedule 8 shall apply) enjoyed by
                  the European Transferring Employees (details of which are set
                  out in the Disclosure Letter) in the period of [***] months
                  from Completion will be no less favourable than those enjoyed
                  by them prior to Completion (but without prejudice to any
                  improvements to salaries, wages or conditions agreed in
                  accordance with normal review procedures) save where
                  individual European Transferring Employees in their absolute
                  discretion

                                      59
<PAGE>
                  choose to agree to join the Supplier's flexible benefits
                  scheme generally offered to the Supplier's employees;

         (b)      to maintain, following Completion, a medical insurance scheme
                  for the European Transferring Employees which is the same or
                  substantially equivalent to the scheme provided for them
                  prior to Completion, details of which are set out in the
                  Disclosure Letter; and

         (c)      in the event of the Supplier effecting enforced redundancy of
                  any of the European Transferring Employees in the period of
                  [***] months from Completion, to make available or procure
                  that there is available to each European Transferring
                  Employee a package equivalent to that which would have been
                  made available to him had he or she still been an employee of
                  the Vendor Group at the date of that redundancy but which
                  shall be no greater than those ex-gratia severance terms
                  which are set out in the Disclosure Letter.

1.12     Immediately following Completion, the Vendor and the Supplier shall
         send to each of the European Transferring Employees a joint letter in
         agreed terms.

1.13     The Vendor and the Supplier shall respectively consult and keep each
         other fully informed regarding any information they propose to give to
         the European Transferring Employees and their representatives or any
         consultation they have with the European Transferring Employees and
         their representatives regarding the subject matter of this Agreement
         prior to Completion, and each will offer the other the opportunity to
         attend and participate in any meetings prior to Completion at which
         information is given to or there is consultation with European
         Transferring Employees and their representatives.

1.14     Immediately after Completion, the Vendor shall deliver promptly or
         procure the delivery to the Supplier copies of all reasonably
         available personnel and employment records and full particulars of:

         (a)      each European Transferring Employee, including name, ID
                  number, sex, and the date on which continuity of employment
                  began for each European Transferring Employee for statutory
                  purposes;

         (b)      standard terms and conditions of employment of each category
                  of European Transferring Employee;

         (c)      all payments, benefits or changes to terms and conditions of
                  employment promised to any European Transferring Employee;

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<PAGE>
         (d)      dismissals (other than voluntary redundancies) of those
                  employees primarily engaged in providing the Services
                  effected within the [***] months prior to Completion and
                  disciplinary records (if any) relating to those employees
                  primarily engaged in providing the Services;

         (e)      all agreements or arrangements entered into in relation to
                  the European Transferring Employees between the Vendor or
                  relevant employer and any trade union or association of trade
                  unions or organisation or body of employees including elected
                  representatives; and

         (f)      all strikes or other industrial action (other than
                  insignificant unofficial action) taken by any European
                  Transferring Employee within the [***] months prior to
                  Completion.

         This Paragraph shall be subject to compliance with any applicable law
         or regulation. If the provisions of that law or regulation prohibit
         full compliance with this Paragraph then the Vendor shall take all
         such steps as it can lawfully undertake to ensure as full compliance
         as possible with this Paragraph.

2.       LONG TERM SICKNESS

2.1      The Parties acknowledge that individuals who are absent from work at
         Completion by reason of long term sickness as identified in Schedule
         3C (Long Term Sick Employees) are not listed in Schedule 3 (The
         Employees) and will not transfer to the Supplier on Completion
         pursuant to the European Regulations or otherwise. If within [***]
         months of the date of signature of this Agreement such an individual
         returns to work for the Marconi Group Paragraphs 1.6 and 1.7 of this
         Schedule shall apply save that:

         (a)      the Supplier is only obliged to use reasonable endeavours to
                  ensure that the terms and conditions of that offer of
                  employment meet the conditions of Paragraph 1.6(b)(i) and
                  (ii); and

         (b)      Paragraph 1.7 shall only apply to the extent that the
                  individual is providing services for the benefit of a member
                  of the Supplier Group.

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<PAGE>
3.       LEGAL RIGHT TO WORK

3.1      The Parties acknowledge that individuals who are not nationals of the
         country in which they work may have the right to work for the Marconi
         Group but may not be legally permitted to transfer to the Supplier
         Group or may lose the benefit of any current application for residency
         or similar rights. Such individuals are identified in Schedule 3D
         (Non-National Employees) are not listed in Schedule 3 (The Employees)
         and will not transfer to the Supplier on Completion pursuant to the
         European Regulations or otherwise. Marconi or the relevant employer of
         the people listed in Schedule 3D shall make those people available to
         the Supplier for the performance of the Services. When such individual
         is granted the necessary status to enable him to legally transfer to
         CSC without loss of legal status Paragraphs 1.6 and 1.7 of this
         Schedule shall apply providing that the individual is providing
         services to the Supplier save that the Supplier is only obliged to use
         reasonable endeavours to ensure that the terms and conditions of that
         offer of employment meet the conditions of Paragraph 1.6(b)(i) and
         (ii).]

[FOR INCLUSION IN NON EU TA ONLY:

         DEFINED TERMS

         "APPROVED SUB-CONTRACTOR" has the meaning defined in the Master
         Services Agreement.

         "NON-EUROPEAN TRANSFERRING EMPLOYEES" means the persons identified in
         Schedule 3 (The Employees) as the Non-European transferring employees.

1.       NON-EUROPEAN EMPLOYEES

1.1      In sufficient time to allow proper contractual or statutory notice of
         termination of employment to be given by the Vendor or the employer of
         any of the Non-European Transferring Employees and such notice to have
         expired on or before Completion or in such timescale as the Parties
         may agree but in any event prior to Completion, the Supplier shall
         make an offer to each Non-European Transferring Employee (other than
         those under notice of termination of employment (for reasons not
         connected with the transfer of the Services) at the time the Supplier
         makes its offer) to employ him or her under a new employment
         relationship to commence immediately after Completion. The offer to be
         made will be conditional upon Completion occurring and such that:

                                      62
<PAGE>
         (a)      the provisions of the new employment relationship as to the
                  capacity and place in which the person will be employed and
                  as to the other terms and conditions of his employment, will,
                  when considered overall, be no less favourable than the
                  corresponding provisions of his or her employment
                  relationship as existing immediately prior to Completion,
                  save as to the identity of the employer ; and

         (b)      it complies with the undertakings given by the Supplier in
                  Paragraph 1.3.

1.2      If the Non-European Transferring Employee wishes to accept the offer
         then the Vendor shall or shall procure that the relevant member of the
         Vendor Group who is the employer of the Non-European Transferring
         Employee shall waive the requirement on the Non-European Transferring
         Employee concerned to give any period of notice of termination of his
         or her employment under the terms of his or her employment so as to
         allow the employee to commence employment with the Supplier at
         Completion.

1.3      The Supplier hereby undertakes to the Vendor for itself and as agent
         for the employer of the Non-European Transferring Employees, in
         addition to any applicable laws, rules or regulations or agreements:

         (a)      that the terms and conditions of employment and other
                  benefits (other than in respect of pensions (to which the
                  provisions of Schedule 8 shall apply) enjoyed by the
                  Non-European Transferring Employees (details of which are set
                  out in the Disclosure Letter) in the period of [***] months
                  from Completion will, be no less favourable than those
                  enjoyed by them prior to Completion (but without prejudice to
                  any improvements to salaries, wages or conditions agreed in
                  accordance with the Supplier's normal review procedures) save
                  where individual Non-European Transferring Employees in their
                  absolute discretion choose to agree to join the Supplier's
                  flexible benefits scheme generally offered to the Supplier's
                  employees;

         (b)      to maintain, following Completion, a medical insurance scheme
                  for the Non-European Transferring Employees which is the same
                  or substantially equivalent to the scheme provided for them
                  prior to Completion, details of which are set out in the
                  Disclosure Letter; and

         (c)      in the event of the Supplier effecting enforced redundancy of
                  any of the Non-European Transferring Employees or terminating
                  any of the Non-European Transferring Employees' employment
                  relationships without good cause in the period of [***]
                  months from Completion, to make available or procure that

                                      63
<PAGE>
                  there is available to each Non-European Transferring Employee
                  a package which is equivalent to that which would have been
                  made available to him or her had he or she still been an
                  employee of the relevant member of the Vendor Group at the
                  date of such redundancy or termination without good cause
                  which shall be no greater than those ex-gratia severance
                  terms which are set out in the Disclosure Letter.

1.4      The Vendor or the relevant member of the Vendor Group and the Supplier
         shall where required by the relevant local law or custom inform and
         consult with recognised trade unions or employee representatives about
         this Agreement and/or about the offers of employment to be made
         pursuant to this Paragraph 1 and/or shall fulfil any obligations to
         notify any statutory or other authority whatsoever about this
         Agreement.

1.5      The Vendor for itself and as agent for the relevant member of the
         Vendor Group who is the employer of any of the Non-European
         Transferring Employees and the Supplier shall indemnify each other
         against any Loss they may incur as a result of their respective
         failures to consult and/or notify in accordance with Paragraph 1.4.

1.6      The Vendor shall be responsible for and shall fully indemnify and keep
         indemnified the Supplier from and against all and any Loss arising,
         directly or indirectly, from any act or omission or obligation or
         liability of the Vendor or the relevant member of the Vendor Group in
         relation to the Non-European Transferring Employees prior to
         Completion, except those which are an act or omission or obligation or
         liability of any member of the Supplier Group.

1.7      If any employment relationship of any person other than a Non-European
         Transferring Employee is found or alleged to continue with any member
         of the Supplier Group after Completion, the Vendor agrees that:

         (a)      in consultation with the Supplier, it will or will procure
                  that a member of the Vendor Group will within [***] Business
                  Days of being requested by the Supplier make to that person
                  an offer in writing to employ him or her under a new
                  employment relationship to take effect upon the termination
                  referred to below; and

         (b)      that offer of employment will be on terms and conditions
                  which, when taken as a whole, do not materially differ from
                  the terms and conditions of employment of that person
                  immediately before Completion.

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<PAGE>
1.8      As soon as possible after the offer made by the Vendor or the relevant
         member of the Vendor Group has been accepted or rejected by that
         person, and in any event no later than the expiry of [***] Business
         Days after an offer has been made in accordance with Paragraph 1.7,
         the Vendor shall advise the Supplier which of those offers have been
         accepted or rejected. The Supplier shall or shall procure that the
         relevant employers of such employees shall waive applicable notice
         periods for any such person who wishes to accept the Vendor's offer of
         employment. If the Vendor's offer of employment is rejected by that
         person, the Supplier shall or shall procure that the relevant employer
         of such person shall commence the legal termination process of the
         employment of the person concerned and the Vendor shall be responsible
         for and indemnify the Supplier against all Loss arising directly or
         indirectly from (i) the employment of that person from Completion or,
         if later, the date on which the relevant employment starts until the
         termination of that employment and (ii) that termination (including
         any redundancy pay (which shall consist of a redundancy package
         equivalent to that which would have been made available to him or her
         immediately prior to Completion (which shall be no greater than those
         ex-gratia severance terms which are set out in the Disclosure Letter))
         but not compensation for unfair or wrongful dismissal or breach of
         contract). Provided that the Supplier should not be required to
         commence the termination of employment process where any such
         termination would, in the reasonable opinion of the Supplier, be
         likely to give rise to an award of compensation to the employee in
         addition to redundancy pay or a payment in lieu of notice. The
         Vendor's indemnity in Paragraph 1.8(i) shall only continue for a
         maximum [***] month period (or, where there is a longer period
         prescribed by law or by contract or necessary to comply with relevant
         law for the commencement and completion of the termination process,
         such longer period) from Completion of, if later, the date on which
         the relevant employment starts, and shall not include any period when
         such employee is providing services for the benefit of a member of the
         Supplier Group (other than the Services).

1.9      The Supplier shall be responsible for and shall fully indemnify and
         keep indemnified the Vendor and each member of the Vendor Group from
         and against all and any Loss which may be incurred by or made against
         the Vendor or any member of the Vendor Group by or on behalf of or in
         connection with any of the Non-European Transferring Employees and
         arising directly or indirectly from any act or omission or obligation
         or liability of the Supplier or any member of the Supplier Group after
         Completion in relation to the Non-European Transferring Employees
         unless such act or omission or obligation or liability was caused by
         or on behalf of the Vendor or Vendor Group.

                                      65
<PAGE>
2.       LONG TERM SICKNESS

2.1      The Parties acknowledge that individuals who are absent from work at
         Completion by reason of long term sickness as identified in Schedule
         3C (Long Term Sick Employees) are not listed in Schedule 3 (The
         Employees) and will not transfer to the Supplier on Completion. If
         within [***] months of the date of signature of this Agreement such an
         individual returns to work for the Vendor Group Paragraphs 1.7 and 1.8
         of this Schedule shall apply (and references to Vendor shall be deemed
         to be references to Supplier and vice versa) save that:

         (a)      the Supplier is only obliged to use reasonable endeavours to
                  ensure that the terms and conditions of that offer of
                  employment meet the conditions of Paragraph 1.7(b); and

         (b)      Paragraph 1.8(ii) shall not apply; and

         (c)      Paragraph 1.8(i) shall only apply to the extent that the
                  individual is providing services for the benefit of a member
                  of the Supplier Group.

3.       LEGAL RIGHT TO WORK

3.1      The Parties acknowledge that individuals who are not nationals of the
         country in which they work may have the right to work for the Vendor
         Group but may not be legally permitted to transfer to the Supplier
         Group or may lose the benefit of any current application for residency
         or similar rights. Such individuals are identified in Schedule 3D
         (Non-National Employees) are not listed in Schedule 3 (The Employees)
         and will not transfer to the Supplier on Completion pursuant to the
         Regulations, European Regulations, South African Law or otherwise. The
         Vendor or the relevant employer of the people listed in Schedule 3D
         shall make those people available to the Supplier for the performance
         of the Services. When such individual is granted the necessary status
         to enable him to legally transfer to CSC without loss of legal status
         Paragraphs 1.7 and 1.8 of this Schedule shall apply (and references to
         Vendor shall be deemed to be references to Supplier and vice versa)
         providing that the individual is providing services to the Supplier
         save that the Supplier is only obliged to use reasonable endeavours to
         ensure that the terms and conditions of that offer of employment meet
         the conditions of Paragraph 1.7(b).]

                                      66
<PAGE>
[FOR INCLUSION IN SOUTH AFRICAN TA ONLY:

         DEFINED TERMS

         "APPROVED SUB-CONTRACTOR" has the meaning defined in the Master
         Services Agreement.

         "SOUTH AFRICAN LAW" means, in relation to a South African Transferring
         Employee, the South African Labour Relations Act 1995 (as amended) and
         any other applicable national laws, rules or regulations governing the
         transfer of a business as a going concern.

         "SOUTH AFRICAN TRANSFERRING EMPLOYEES" means the persons identified in
         Schedule 3 (The Employees) as the South African transferring
         employees.

         "TAX" means and includes all forms of taxation and statutory,
         governmental, supra governmental, state, local governmental or
         municipal impositions, duties, contributions, deductions, withholdings
         and levies whether of the United Kingdom or elsewhere whenever imposed
         and all penalties, charges, costs and interest relating to any of
         them.

1.       SOUTH AFRICAN EMPLOYEES

1.1      The Vendor and the Supplier acknowledge and agree that South African
         Law shall apply to the South African Transferring Employees.

1.2      All salaries and other emoluments of the South African Transferring
         Employees shall be discharged and Tax deductions shall be complied
         with by the Vendor for itself and as agent for any member of the
         Vendor Group who are the employers of the South African Transferring
         Employees in respect of all periods up to and including Completion and
         in respect of all share options granted or exercised prior to
         Completion and the salaries, other emoluments and Tax deductions of
         the South African Transferring Employees in respect of the period
         after Completion shall be for the account of the Supplier.

1.3      (a)      The Vendor will upon the date two (2) weeks after the date of
                  signature of this Agreement and periodically two (2) weeks
                  thereafter up to Completion promptly notify the Supplier of
                  the following:

                  (i)      subject to Paragraph 1.3(b) of this Schedule 2, any
                           changes to the list of South African Transferring
                           Employees before Completion, in which

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<PAGE>
                           case their name or names will be deemed to have been
                           deleted from the list in Schedule 3 (The Employees);

                  (ii)     subject to Paragraph 1.3(b) of this Schedule 2, if
                           any South African Transferring Employee ceases to be
                           primarily engaged by the Vendor Group in performing
                           services which are the same or similar to the
                           Services (the "BUSINESS");

                  (iii)    if any South African Transferring Employee obtains a
                           right to return to work (whether for reasons
                           connected with maternity leave or absence by reason
                           of illness or incapacity or otherwise);

                  (iv)     if any South African Transferring Employee is given
                           notice of termination of his employment (or had his
                           employment terminated without notice);

                  (v)      if any offers of employment are made to any person
                           by the Vendor Group in relation to the Business and
                           if there is any person who has accepted such an
                           offer of employment made by the Vendor Group but
                           whose employment has not yet started;

                  (vi)     if any order that has not been complied with has
                           been made for the reinstatement or re-engagement of
                           any of the South African Transferring Employees or
                           any person formerly employed or engaged in the
                           Business;

                  (vii)    if there is any industrial action (other than
                           insignificant unofficial action) or trade dispute
                           (or related proceedings) by any South African
                           Transferring Employees affecting the Business; and

                  (viii)   if the Vendor Group becomes engaged or involved in
                           any dispute, claim or legal proceedings (whether
                           arising under contract, common law, statute or in
                           equity) with any of the South African Transferring
                           Employees or with any other person employed by the
                           Vendor Group in respect of whom liability is deemed
                           to pass to the Supplier or its Approved
                           Sub-Contractors by virtue of South African Law and
                           if the Vendor Group becomes aware of any likelihood
                           of any such dispute, claim or proceedings arising at
                           any time.

         (b)      The Vendor undertakes from the date of signature of this
                  Agreement up to Completion without the prior written consent
                  of the Supplier not to:

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                  (i)      add or remove any Key Employee to or from the list
                           of South African Transferring Employees; or

                  (ii)     change the names of more than [***] percent ([***]%)
                           of any other persons (not being Key Employees) from
                           the list of South African Transferring Employees
                           provided that:

                           (aa)     the aggregate number of South African
                                    Transferring Employees will not change;

                           (bb)     any replacement personnel will have skills
                                    and experience which are substantially
                                    similar to those of the employees being
                                    replaced;

                           (cc)     the terms of employment of replacement
                                    personnel will not be materially better
                                    than those of the employees being replaced;

                           (dd)     the severance costs of replacement
                                    personnel will not be materially higher
                                    than those of the employees being replaced;
                                    and

                           (ee)     the Supplier is promptly advised of such
                                    changes; or

                  (iii)    make any material changes to the terms of employment
                           of the South African Transferring Employees. After
                           Completion the Vendor shall at Supplier's request
                           and cost make those employees who before Completion
                           were used to perform the services which are the same
                           or similar to the Services and who are working their
                           notice periods, available to Supplier for the
                           provision of the Services until their actual
                           termination dates.

1.4      The Vendor for itself and as agent for each member of the Vendor Group
         who are employers of any of the South African Transferring Employees
         shall indemnify the Supplier against:

         (a)      any act or omission or obligation or liability of the Vendor
                  Group, arising out of or relating to the employment of any of
                  the South African Transferring Employees or any other
                  employee or former employee of the Vendor Group prior to
                  Completion, unless such act or omission or obligation or
                  liability was caused by or on behalf of the Supplier Group;
                  and

         (b)      against all Loss arising out of any claim by any trade union,
                  works council, staff association, worker representative
                  (whether or not recognised by the Vendor or the Vendor Group)
                  or employee in respect of all or any of the employees working
                  in the provision of the Services, arising out of a failure or

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<PAGE>
                  alleged failure by the Vendor or the Vendor Group to comply
                  with its legal obligations to consult under any applicable
                  law or regulation.

1.5      The Supplier shall indemnify the Vendor for itself and as agent for
         each member of the Vendor Group who are employers of any of the South
         African Transferring Employees against:

         (a)      any act or omission or obligation or liability of the
                  Supplier before or after Completion arising out of or
                  relating to the employment or termination of employment of
                  any of the South African Transferring Employees unless such
                  act or omission or obligation or liability was caused by or
                  on behalf of the Vendor Group; and

         (b)      any substantial changes to the terms of the employment of any
                  of the South African Transferring Employees to their
                  detriment which are made, proposed or anticipated to take
                  effect after Completion and any change in the identity of
                  their employer which is a significant change and to their
                  detriment.

1.6      If any contract of employment of any South African Transferring
         Employee is found or alleged to continue with the Vendor Group after
         Completion, the Supplier agrees that:

         (a)      in consultation with the Vendor, it will within [***]
                  Business Days of being requested by the Vendor make to that
                  person an offer in writing to employ him or her under a new
                  contract of employment to take effect upon the termination
                  referred to below; and

         (b)      that offer of employment will be:

                  (i)      on terms and conditions which, when taken as a
                           whole, do not materially differ from those for the
                           South African Transferring Employees who do transfer
                           to the Supplier on Completion; and

                  (ii)     fully compliant with the undertakings given by the
                           Supplier in Paragraph 1.11.

1.7      As soon as possible after the offer made by the Supplier has been
         accepted or rejected by that person, and in any event no later than
         the expiry of [***] Business Days after an offer has been made in
         accordance with Paragraph 1.6, the Supplier shall advise the Vendor
         which of those offers have been accepted or rejected. The Vendor shall
         or shall procure that the relevant employer of the South African
         Transferring Employee shall waive applicable notice periods for any
         such person who wishes to accept the Supplier's offer of employment.
         If the Supplier's offer of employment is rejected by that person, the
         Vendor shall or shall procure that the relevant employer of the South
         African Transferring Employee

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         shall make that person available to the Supplier for the performance
         of the Services for so long as the Supplier may request, and shall not
         terminate, other than for cause or where the Supplier no longer
         requires the service of such employee, the employment of the person
         concerned. The Supplier shall be responsible for and shall indemnify
         the Vendor for itself and as agent for the member of the Vendor Group
         who is the employer of the South African Transferring Employee against
         all Loss arising directly or indirectly from the employment of that
         South African Transferring Employee from Completion of, if later, the
         date on which the relevant employment starts until the termination of
         that employment unless such Loss was caused by or on behalf of the
         Vendor Group but not compensation for unfair or wrongful dismissal or
         breach of contract or any redundancy pay). The Supplier shall notify
         the Vendor if the Supplier no longer requires the service of such
         employee (a "CESSATION NOTICE") and the Vendor shall commence the
         legal termination process of the employment of the person concerned.
         In such a case the Supplier's indemnity in Paragraph 1.7 shall only
         continue for a maximum [***] month period (or, where there is a longer
         period prescribed by law or by contract or necessary to comply with
         relevant law for the commencement and completion of the termination
         process, such longer period) from the date of its Cessation Notice and
         shall not include any period when such employee is providing services
         for the benefit of a member of the Vendor Group (other than the
         Services).

1.8      If any contract of employment of any person other than a South African
         Transferring Employee is found or alleged to continue with any member
         of the Supplier Group after Completion, the Vendor agrees that:

         (a)      in consultation with the Supplier, it will or will procure
                  that a member of the Vendor Group will within [***] Business
                  Days of being requested by the Supplier to make to that
                  person an offer in writing to employ him or her under a new
                  contract of employment to take effect upon the termination
                  referred to below; and

         (b)      that offer of employment will be on terms and condition
                  which, when taken as a whole, do not materially differ from
                  the terms and conditions of employment of that person
                  immediately before Completion.

1.9      As soon as possible after the offer made by the Vendor has been
         accepted or rejected by that person, and in any event no later than
         the expiry of [***] Business Days after

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         an offer has been made in accordance with Paragraph 1.6, the Vendor
         shall advise the Supplier which of those offers have been accepted or
         rejected. The Supplier shall or shall procure that the relevant
         employers of such employees shall waive applicable notice periods for
         any such person who wishes to accept the Vendor's offer of employment.
         If the Vendor's offer of employment is rejected by that person, the
         Supplier shall or shall procure that the relevant employer of such
         person shall commence the legal termination process of the employment
         of the person concerned and the Vendor shall be responsible for and
         indemnify the Supplier against all Loss arising directly or indirectly
         from (i) the employment of that person from Completion or, if later
         the date on which the relevant employment starts, until the
         termination of that employment and (ii) that termination (including
         any redundancy pay (which shall consist of a redundancy package
         equivalent to that which would have been made available to him or her
         immediately prior to Completion (which shall be no greater than those
         ex-gratia severance terms which are set out in the Disclosure Letter))
         but not compensation for unfair or wrongful dismissal or breach of
         contract). Provided that the Supplier should not be required to
         commence the termination of employment process where any such
         termination would, in the reasonable opinion of the Supplier, be
         likely to give rise to an award of compensation to the employee in
         addition to redundancy pay or a payment in lieu of notice. The
         Vendor's indemnity in Paragraph 1.9(i) shall only continue for a
         maximum [***] month period (or, where there is a longer period
         prescribed by law or by contract or necessary to comply with relevant
         law for the commencement and completion of the termination process,
         such longer period) from Completion or, if later, the date on which
         the relevant employment starts and shall not include any period when
         such employee is providing services for the benefit of a member of the
         Supplier Group (other than the Services).

1.10     The Vendor and the Supplier shall give each other such assistance as
         either may reasonably require to comply with South African Law in
         relation to any such employee of a member of the Vendor Group whose
         contract of employment is found or alleged to transfer to any member
         of the Supplier Group and in contesting any claim by any such person
         at or before Completion resulting from or in connection with this
         Agreement.

1.11     The Supplier undertakes to the Vendor for itself and as agent for each
         member of the Vendor Group who are the employers of any of the South
         African Transferring Employees, in addition to any relevant South
         African Law, rules or regulations and any applicable collective
         bargaining agreements:

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<PAGE>
         (a)      that the terms and conditions of employment and other
                  contractual benefits (other than in respect of pensions, to
                  which the provisions of Schedule 8 shall apply) enjoyed by
                  the South African Transferring Employees (details of which
                  are set out in the Disclosure Letter) in the period of [***]
                  months from Completion will be no less favourable than those
                  enjoyed by them prior to Completion (but without prejudice to
                  any improvements to salaries, wages or conditions agreed in
                  accordance with normal review procedures) save where
                  individual South African Transferring Employees in their
                  absolute discretion choose to agree to join the Supplier's
                  flexible benefits scheme generally offered to the Supplier's
                  employees;

         (b)      to maintain, following Completion, a medical insurance scheme
                  for the South African Transferring Employees which is the
                  same or substantially equivalent to the scheme provided for
                  them prior to Completion, details of which are set out in the
                  Disclosure Letter; and

         (c)      in the event of the Supplier effecting enforced redundancy of
                  any of the South African Transferring Employees in the period
                  of [***] months from Completion, to make available or procure
                  that there is available to each South African Transferring
                  Employee a package equivalent to that which would have been
                  made available to him had he or she still been an employee of
                  the Vendor Group at the date of that redundancy but which
                  shall be no greater than those ex-gratia severance terms
                  which are set out in the Disclosure Letter.

1.12     Immediately following Completion, the Vendor and the Supplier shall
         send to each of the South African Transferring Employees a joint
         letter in agreed terms.

1.13     The Vendor and the Supplier shall respectively consult and keep each
         other fully informed regarding any information they propose to give to
         the South African Transferring Employees and their representatives or
         any consultation they have with the South African Transferring
         Employees and their representatives regarding the subject matter of
         this Agreement prior to Completion, and each will offer the other the
         opportunity to attend and participate in any meetings prior to
         Completion at which information is given to or there is consultation
         with South African Transferring Employees and their representatives.

1.14     Immediately after Completion, the Vendor shall deliver promptly or
         procure the delivery to the Supplier copies of all reasonably
         available personnel and employment records and full particulars of:

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<PAGE>
         (a)      each South African Transferring Employee, including name, ID
                  number, sex, and the date on which continuity of employment
                  began for each South African Transferring Employee for
                  statutory purposes;

         (b)      standard terms and conditions of employment of each category
                  of South African Transferring Employee;

         (c)      all payments, benefits or changes to terms and conditions of
                  employment promised to any South African Transferring
                  Employee;

         (d)      dismissals (other than voluntary redundancies) of those
                  employees primarily engaged in providing the Services
                  effected within the [***] months prior to Completion and
                  disciplinary records (if any) relating to those employees
                  primarily engaged in providing the Services;

         (e)      all agreements or arrangements entered into in relation to
                  the South African Transferring Employees between the Vendor
                  or relevant employer and any trade union or association of
                  trade unions or organisation or body of employees including
                  elected representatives; and

         (f)      all strikes or other industrial action (other than
                  insignificant unofficial action) taken by any South African
                  Transferring Employee within the [***] months prior to
                  Completion.

         This Paragraph shall be subject to compliance with any applicable law
         or regulation. If the provisions of that law or regulation prohibit
         full compliance with this Paragraph then the Vendor shall take all
         such steps as it can lawfully undertake to ensure as full compliance
         as possible with this Paragraph.

2.       LONG TERM SICKNESS

2.1      The Parties acknowledge that individuals who are absent from work at
         Completion by reason of long term sickness as identified in Schedule
         3C (Long Term Sick Employees) are not listed in Schedule 3 (The
         Employees) and will not transfer to the Supplier on Completion
         pursuant to South African Law or otherwise. If within [***] months of
         the date of signature of this Agreement such an individual returns to
         work for the Vendor Group Paragraphs 1.6 and 1.7 of this Schedule
         shall apply save that:

         (a)      the Supplier is only obliged to use reasonable endeavours to
                  ensure that the terms and conditions of that offer of
                  employment meet the conditions of Paragraph 1.6(b)(i) and
                  (ii); and

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<PAGE>
         (b)      Paragraph 1.7 shall only apply to the extent that the
                  individual is providing services for the benefit of a member
                  of the Supplier Group.

3.       LEGAL RIGHT TO WORK

3.1      The Parties acknowledge that individuals who are not nationals of the
         country in which they work may have the right to work for the Vendor
         Group but may not be legally permitted to transfer to the Supplier
         Group or may lose the benefit of any current application for residency
         or similar rights. Such individuals are identified in Schedule 3D
         (Non-National Employees) are not listed in Schedule 3 (The Employees)
         and will not transfer to the Supplier on Completion pursuant to South
         African Law or otherwise. The Vendor or the relevant employer of the
         people listed in Schedule 3D shall make those people available to the
         Supplier for the performance of the Services. When such individual is
         granted the necessary status to enable him to legally transfer to CSC
         without loss of legal status Paragraphs 1.6 and 1.7 of this Schedule
         shall apply providing that the individual is providing services to the
         Supplier save that the Supplier is only obliged to use reasonable
         endeavours to ensure that the terms and conditions of that offer of
         employment meet the conditions of Paragraph 1.6(b)(i) and (ii).]

[FOR INCLUSION IN MEXICAN TA ONLY:

0.       DEFINED TERMS

         "APPROVED SUB-CONTRACTOR" has the meaning defined in the Master
         Services Agreement.

         "MEXICAN REGULATIONS" means the Mexican Federal Labor Law and its
         regulations, the Mexican Social Security Law and its regulations, the
         Federal Housing Law and its regulations applicable to that Mexican
         Transferring Employee's terms and conditions of employment.

         "MEXICAN TRANSFERRING EMPLOYEES" means the persons identified in
         Schedule 3 (The Employees) as the Mexican transferring employees.

         "TAX" means and includes all forms of taxation and statutory,
         governmental, supra governmental, state, local governmental or
         municipal impositions, duties, contributions, deductions, withholdings
         and levies whether of the Mexican Republic or elsewhere whenever
         imposed and all penalties, charges, costs and interest relating to any
         of them.

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<PAGE>
1.       MEXICAN EMPLOYEES

1.1      The Vendor and the Supplier acknowledge that the Mexican Regulations
         shall apply to the Mexican Transferring Employees.

1.2      All salaries and other emoluments of the Mexican Transferring
         Employees shall be discharged and all Tax deductions shall be complied
         with by the Vendor for itself and as agent for any member of the
         Vendor Group who is the employer of the Mexican Transferring Employees
         in respect of all periods up to and including Completion and in
         respect of all share options granted or exercised prior to Completion
         and the salaries, other emoluments and Tax deductions of the Mexican
         Transferring Employees in respect of the period after Completion shall
         be for the account of the Supplier.

1.3      (a)      The Vendor will upon the date two (2) weeks after the date of
                  signature of this Agreement and periodically two (2) weeks
                  thereafter up to Completion promptly notify the Supplier of
                  the following:

                  (i)      subject to Paragraph 1.3 (b) of this Schedule 2, any
                           changes to the list of Mexican Transferring
                           Employees before Completion, in which case their
                           name or names will be deemed to have been deleted
                           from the list in Schedule 3;

                  (ii)     subject to Paragraph 1.3 (b) of this Schedule 2, if
                           any Mexican Transferring Employee ceases to be
                           primarily engaged by the Vendor Group in performing
                           services which are the same or similar to the
                           Services (the "BUSINESS");

                  (iii)    if any Mexican Transferring Employee obtains a right
                           to return to work (whether for reasons connected
                           with maternity leave or absence by reason of illness
                           or incapacity or otherwise);

                  (iv)     if any Mexican Transferring Employee is given notice
                           of termination of his employment (or had his
                           employment terminated without notice);

                  (v)      if any offers of employment are made to any person
                           by the Vendor Group in relation to the Business and
                           if there is any person who has accepted such an
                           offer of employment made by the Vendor Group but
                           whose employment has not yet started;

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                  (vi)     if any order that has not been complied with has
                           been made for the reinstatement or re-engagement of
                           any of the Mexican Transferring Employees or any
                           person formerly employed or engaged in the Business;

                  (vii)    if there is any industrial action (other than
                           insignificant unofficial action) or trade dispute
                           (or related proceedings) by any Mexican Transferring
                           Employees affecting the Business; and

                  (viii)   if the Vendor Group becomes engaged or involved in
                           any dispute, claim or legal proceedings (whether
                           arising under contract, or statute) with any of the
                           Mexican Transferring Employees or with any other
                           person employed by the Vendor Group in respect of
                           whom liability is deemed to pass to the Supplier or
                           its Approved Sub-Contractors by virtue of the
                           Mexican Regulations and if the Vendor Group becomes
                           aware of any likelihood of any such dispute, claim
                           or proceedings arising at any time.

         (b)      the Vendor undertakes from the date of signature of this
                  Agreement up to Completion without the prior written consent
                  of the Supplier not to:

                  (i)      add or remove any Key Employee to or from the list
                           of Mexican Transferring Employees; or

                  (ii)     change the names of more than [***] percent ([***]%)
                           of any other persons (not being Key Employees) from
                           the list of Mexican Transferring Employees provided
                           that:

                           (aa)     the aggregate number of Mexican
                                    Transferring Employees will not change;

                           (bb)     any replacement personnel will have skills
                                    and experience which are substantially
                                    similar to those of the employees being
                                    replaced;

                           (cc)     the terms of employment of replacement
                                    personnel will not be materially better
                                    than those of the employees being replaced;

                           (dd)     the severance costs of replacement
                                    personnel will not be materially higher
                                    than those of the employees being replaced,
                                    and

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                           (ee)     the Supplier is promptly advised of such
                                    changes; or

                  (iii)    make any material changes to the terms of employment
                           of the Mexican Transferring Employees. After
                           Completion the Vendor shall at Supplier's request
                           and cost make those employees who before Completion
                           were used to perform the services which are the same
                           or similar to the Services and who are working their
                           notice periods, available to Supplier for the
                           provision of the Services until their actual
                           termination dates, being such employees, at all
                           times after Completion, under the direction and
                           control of the Supplier as the sole responsible of
                           their employment relationships.

1.4      The Vendor for itself and as agent for each member of the Vendor Group
         who are employers of any of the Mexican Transferring Employees shall
         indemnify the Supplier against:

         (a)      any act or omission or obligation or liability of the Vendor
                  Group, arising out of or relating to the employment of any of
                  the Mexican Transferring Employees prior to Completion,
                  unless such act or omission or obligation or liability was
                  caused by or on behalf of the Supplier Group and for a period
                  of [***] ([***]months) as from Completion; and

         (b)      against all Loss arising out of any claim by any trade union,
                  works council, staff association, worker representative
                  (whether or not recognised by the Vendor Group) or employee
                  in respect of all or any of the employees working in the
                  provision of the Services, arising out of a failure or
                  alleged failure by the Vendor Group to comply with its legal
                  obligations to consult under any applicable law or
                  regulation.

1.5      The Supplier shall indemnify the Vendor for itself and as agent for
         each member of the Vendor Group who are employers of the Mexican
         Transferring Employees against:

         (a)      any act or omission or obligation or liability of the
                  Supplier before or after Completion arising out of or
                  relating to the employment or termination of employment of
                  any of the Mexican Transferring Employees unless such act or
                  omission or obligation or liability was caused by or on
                  behalf of the Vendor Group; and

         (b)      any substantial changes to the terms of the employment of any
                  of the Mexican Transferring Employees to their detriment
                  which are made, proposed or

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                  anticipated to take effect after Completion and any change in
                  the identity of their employer which is a significant change
                  and to their detriment; and

         (c)      any breach by the Supplier of its obligations to inform and
                  consult with trade unions, works councils or employee
                  representatives to the extent required by the Mexican
                  Regulations or national laws.

1.6      If any contract of employment of any Mexican Transferring Employee is
         found or alleged to continue with the Vendor Group after Completion,
         the Supplier agrees that:

         (a)      in consultation with the Vendor, it will within [***]
                  Business Days of being requested by the Vendor make to that
                  person an offer in writing to employ him or her under a new
                  contract of employment to take effect upon the termination
                  referred to below; and

         (b)      that offer of employment will be:

                  (i)      on terms and conditions which, when taken as a
                           whole, do not materially differ from those for the
                           Mexican Transferring Employees who do transfer to
                           the Supplier on Completion; and

                  (ii)     fully compliant with the undertakings given by the
                           Supplier in Paragraph 1.11.

1.7      As soon as possible after the offer made by the Supplier has been
         accepted or rejected by that person, and in any event no later than
         the expiry of [***] Business Days after an offer has been made in
         accordance with Paragraph 1.6, the Supplier shall advise the Vendor
         which of those offers have been accepted or rejected. If the
         Supplier's offer of employment is rejected by that person, the Vendor
         shall or shall procure that the relevant employer of the Mexican
         Transferring Employee shall make that person available to the Supplier
         for the performance of the Services for so long as the Supplier may
         request, and shall not terminate, other than for cause or where the
         Supplier no longer requires the service of such employee, the
         employment of the person concerned, who will be under the control and
         direction of the Vendor as its sole employer, while rendering services
         to the Supplier. The Supplier shall be responsible for and shall
         indemnify the Vendor for itself and as agent for the member of the
         Vendor Group who is the employer of the Mexican Transferring Employee
         against all Loss arising directly or indirectly from the employment of
         that Mexican Transferring Employee from Completion or, if later, the
         date on which the relevant employment starts until the termination of
         that employment unless such Loss was caused by or on behalf of the
         Vendor Group but not compensation for unfair or

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<PAGE>
         wrongful dismissal or breach of contract or any redundancy pay). The
         Supplier shall notify the Vendor if the Supplier no longer requires
         the service of such employee (a "CESSATION NOTICE") and the Vendor
         shall commence the legal termination process of the employment of the
         person concerned. In such a case the Supplier's indemnity in Paragraph
         1.7 shall only continue for a maximum [***] month period (or, where
         there is a longer period prescribed by law or by contract or necessary
         to comply with relevant law for commencement and completion of the
         termination process, such longer period) from the date of its
         Cessation Notice and shall not include any period when such employee
         is providing services for the benefit of a member of the Vendor Group
         (other than the Services).

1.8      If any contract of employment of any person other than a Mexican
         Transferring Employee is found or alleged to continue with any member
         of the Supplier Group after Completion, the Vendor agrees that:

         (a)      in consultation with the Supplier, it will or will procure
                  that a member of the Vendor Group will within [***] Business
                  Days of being requested by the Supplier to make to that
                  person an offer in writing to employ him or her under a new
                  contract of employment to take effect upon the termination
                  referred to below; and

         (b)      that offer of employment will be on terms and conditions
                  which, when taken as a whole, do not materially differ from
                  the terms and conditions of employment of that person
                  immediately before Completion.

1.9      As soon as possible after the offer made by the Vendor has been
         accepted or rejected by that person, and in any event no later than
         the expiry of [***] Business Days after an offer has been made in
         accordance with Paragraph 1.6, the Vendor shall advise the Supplier
         which of those offers have been accepted or rejected. If the Vendor's
         offer of employment is rejected by that person, the Supplier shall or
         shall procure that the relevant employer of such person shall commence
         the legal termination process of the employment of the person
         concerned and the Vendor shall be responsible for and indemnify the
         Supplier against all Loss arising directly or indirectly from (i) the
         employment of that person from Completion or, if later, the date on
         which the relevant employment starts until the termination of that
         employment and (ii) that termination (including any redundancy pay
         (which shall consist of a redundancy package equivalent to that which
         would have been made available to him or her immediately prior to
         Completion (which shall be no greater than those ex-gratia severance
         terms which are set out in the Disclosure Letter)) but not
         compensation for unfair or wrongful dismissal or breach of contract).
         The Vendor's indemnity in

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         Paragraph 1.9(i) shall only continue for a maximum [***] month period
         (or, where there is a longer period prescribed by law or by contract
         or necessary to comply with relevant law for the commencement and
         completion of the termination process, such longer period) from
         Completion or, if later, the date on which the relevant employment
         starts and shall not include any period when such employee is
         providing services for the benefit of a member of the Supplier Group
         (other than the Services).

1.10     The Vendor and the Supplier shall give each other such assistance as
         either may reasonably require to comply with the Mexican Regulations
         in relation to any such employee of a member of the Vendor Group whose
         contract of employment is found or alleged to transfer to any member
         of the Supplier Group and in contesting any claim by any such person
         at or before Completion resulting from or in connection with this
         Agreement.

1.11     The Supplier undertakes to the Vendor for itself and as agent for each
         member of the Vendor Group who are employers of any of the Mexican
         Transferring Employees, in addition to the Mexican Regulations and any
         applicable laws, rules and regulations and any applicable collective
         bargaining agreements:

         (a)      that the terms and conditions of employment and other
                  contractual benefits (other than in respect of pensions, to
                  which the provisions of Schedule 8 shall apply) enjoyed by
                  the Mexican Transferring Employees (details of which are set
                  out in the Disclosure Letter) in the period of [***] months
                  from Completion will be no less favourable than those enjoyed
                  by them prior to Completion (but without prejudice to any
                  improvements to salaries, wages or conditions agreed in
                  accordance with normal review procedures) save where
                  individual Mexican Transferring Employees in their absolute
                  discretion choose to agree to join the Supplier's flexible
                  benefits scheme generally offered to the Supplier's
                  employees;

         (b)      to maintain, following Completion, a medical insurance scheme
                  for the Mexican Transferring Employees which is the same or
                  substantially equivalent to the scheme provided for them
                  prior to Completion, details of which are set out in the
                  Disclosure Letter; and

         (c)      in the event of the Supplier effecting enforced redundancy of
                  any of the Mexican Transferring Employees in the period of
                  [***] months from Completion, to make available or procure
                  that there is available to each Mexican Transferring Employee
                  a package equivalent to that which would have been made
                  available to him had he or she still been an employee of the

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                  Vendor Group at the date of that redundancy but which shall
                  be no greater than those ex-gratia severance terms which are
                  set out in the Disclosure Letter.

1.12     Immediately following Completion, the Vendor and the Supplier shall
         send to each of the Mexican Transferring Employees a joint letter in
         agreed terms.

1.13     The Vendor and the Supplier shall respectively consult and keep each
         other fully informed regarding any information they propose to give to
         the Mexican Transferring Employees and their representatives or any
         consultation they have with the Mexican Transferring Employees and
         their representatives regarding the subject matter of this Agreement
         prior to Completion, and each will offer the other the opportunity to
         attend and participate in any meetings prior to Completion at which
         information is given to or there is consultation with Mexican
         Transferring Employees and their representatives.

1.14     Immediately after Completion, the Vendor shall deliver promptly or
         procure the delivery to the Supplier copies of all reasonably
         available personnel and employment records and full particulars of:

         (a)      each Mexican Transferring Employee, including name, ID
                  number, sex, and the date on which continuity of employment
                  began for each Mexican Transferring Employee for statutory
                  purposes;

         (b)      standard terms and conditions of employment of each category
                  of Mexican Transferring Employee;

         (c)      all payments, benefits or changes to terms and conditions of
                  employment promised to any Mexican Transferring Employee;

         (d)      dismissals (other than voluntary redundancies) of those
                  employees primarily engaged in providing the Services
                  effected within the [***] months prior to Completion and
                  disciplinary records (if any) relating to those employees
                  primarily engaged in providing the Services;

         (e)      all agreements or arrangements entered into in relation to
                  the Mexican Transferring Employees between the Vendor or
                  relevant employer and any trade union or association of trade
                  unions or organisation or body of employees including elected
                  representatives; and

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         (f)      all strikes or other industrial action (other than
                  insignificant unofficial action) taken by any Mexican
                  Transferring Employee within the [***] months prior to
                  Completion.

         This Paragraph shall be subject to compliance with any applicable law
         or regulation. If the provisions of that law or regulation prohibit
         full compliance with this Paragraph then the Vendor shall take all
         such steps as it can lawfully undertake to ensure as full compliance
         as possible with this Paragraph.

2.       COMPLETION OF EMPLOYEE TRANSFER

2.1      At Completion, the Supplier shall become the employer of the Mexican
         Transferring Employees through the process to be agreed by and between
         Vendor and Supplier and the employment relationship that existed
         between the Vendor and those employees prior to Completion, shall
         cease immediately. The Vendor shall cancel the registration of the
         Mexican Transferring Employees before the Mexican Social Security
         Institute and the Federal Housing Agency and immediately after
         Completion the Supplier shall register such employees with the
         government bodies mentioned in this paragraph.

3.       LONG TERM SICKNESS

3.1      The parties acknowledge that individuals who are absent from work at
         Completion by reason of long term sickness as identified in Schedule
         3C (Long Term Sick Employees) are not listed in Schedule 3 (The
         Employees) and will not transfer to the Supplier on Completion
         pursuant to the Mexican Regulations or otherwise. If within [***]
         months of the date of signature of this Agreement such an individual
         returns to work for the Marconi Group Paragraphs 1.6 and 1.7 of this
         Schedule shall apply save that:

         (a)      the Supplier is only obliged to use reasonable endeavours to
                  ensure that the terms and conditions of that offer of
                  employment meet the conditions of Paragraph 1.6(b)(i) and
                  (ii); and

         (b)      Paragraph 1.7 shall only apply to the extent that the
                  individual is providing services for the benefit of a member
                  of the Supplier Group.

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4.       LEGAL RIGHT TO WORK

4.1      The Parties acknowledge that individuals who are not nationals of the
         country in which they work may have the right to work for the Marconi
         Group but may not be legally permitted to transfer to the Supplier
         Group or may lose the benefit of any current application for residency
         or similar rights. Such individuals are identified in Schedule 3D
         (Non-National Employees) are not listed in Schedule 3 (The Employees)
         and will not transfer to the Supplier on Completion pursuant to the
         Mexican Regulations or otherwise. Marconi or the relevant employer of
         the people listed in Schedule 3D shall make those people available to
         the Supplier for the performance of the Services, being such
         employees, at all times, under the direction and control of Marconi as
         their sole employer. When such individual is granted the necessary
         status to enable him to legally transfer to CSC without loss of legal
         status Paragraphs 1.6 and 1.7 of this Schedule shall apply providing
         that the individual is providing services to the Supplier save that
         the Supplier is only obliged to use reasonable endeavours to ensure
         that the terms and conditions of that offer of employment meet the
         conditions of Paragraph 1.6(b)(i) and (ii).]

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                                   SCHEDULE 3

                                  THE EMPLOYEES

              [Insert details of Employees for relevant Territory]

                                       85
<PAGE>

                                   SCHEDULE 4

                         APPORTIONMENT OF CONSIDERATION

<TABLE>
<S>                                   <C>
IT Equipment                          (POUND)-(17)

Current Contracts                     (POUND)1.00

[Goodwill                             (POUND)[-]](18)
</TABLE>

(17)     NBV at 31 October 2002.

(18)     For inclusion in Italian TA's only.

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                                   SCHEDULE 5

                          COMPLETION ARRANGEMENTS(19)

1.       VENDOR'S OBLIGATIONS

(1)      On the In-Scope Contract Completion Date for an In-Scope Contract the
         Vendor shall deliver to CSC all books, records and other documents
         relating to that In-Scope Contract.

(2)      On Equipment Completion the Vendor shall deliver to CSC (such delivery
         to take place at the locations where that equipment is physically
         located at the time) all the assets forming the IT Equipment which are
         capable of passing by delivery when, by virtue of such delivery, title
         to those Assets shall pass to CSC.

2.       CSC'S OBLIGATIONS

(1)      On Equipment Completion, CSC shall pay the Vendor Equipment
         Consideration in the manner prescribed by Clause 6.1 (Amount of the
         Vendor Equipment Consideration).

(2)      On Completion, CSC shall pay the Vendor Contracts Consideration in the
         manner prescribed by Clause 6.2 (Amount of the Vendor Contract
         Consideration).

(19)     This Schedule will need particular customisation on a Territory by
         Territory basis.

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<PAGE>

                                   SCHEDULE 6

                                   WARRANTIES

1.       IT EQUIPMENT

1.1      At Completion, the Vendor or the relevant members of the Vendor Group
         will have good title to all the IT Equipment free from and clear of all
         liens, charges, mortgages, or similar encumbrances but excluding liens
         or licences arising in the ordinary course of business which are fairly
         disclosed in the Disclosure Letter.

1.2      The IT Equipment and the Leased Equipment at the date of this Transfer
         Agreement is in sufficient working order to enable members of the CSC
         Group to provide the IT Services and has been regularly and
         appropriately maintained and supported and so far as the Vendor is
         aware no material item of the IT Equipment or the Leased Equipment is
         dangerous, or requires renewal or replacement.

1.3      The IT Equipment and the Leased Equipment comprise all the material
         hardware and information technology assets and equipment used by the
         Vendor Controlled Group to provide the Internal Services.

1.4      The net book value at which each item of IT Equipment are listed on the
         Vendor Asset Registers accurately and fairly reflects the net book
         value of such item of IT Equipment in the books of the Vendor Group at
         31 October 2002, determined by depreciating the value of the equipment
         on a straight line basis in accordance with the Vendor Group's
         generally applicable accounting principles for the equipment in
         question.

2.       IN-SCOPE CONTRACTS

2.1      MATERIAL IN-SCOPE CONTRACTS VALID

         The Vendor is not aware of the invalidity of or any grounds for
         rescission, avoidance or repudiation of any In-Scope Contract involving
         an annual expenditure of total value of [***] pounds ((pound)[***]) or
         greater (each being a "MATERIAL Contract") and neither it nor any other
         member of the Vendor Group has received written notice of any intention
         to terminate any such In-Scope Contract.

2.2      NO DEFAULT

         Neither the Vendor nor (so far as the Vendor is aware) any other party
         to any Material Contract is in material default or breach under it, and
         no Material Contract is the

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<PAGE>

         subject of dispute or a claim nor so far as the Vendor is aware are
         there any circumstances which might give rise to such a dispute or
         claim.

3.       EMPLOYEES

3.1      All the UK, European and Non European Transferring Employees as listed
         in Schedule 3 (The Employees) are primarily engaged immediately prior
         to Completion by the Vendor or a member of the Vendor Group in
         performing services which are the same or similar to the Services (the
         "BUSINESS"). The Employees are all directly employed by the Vendor or a
         member of the Vendor Group.

         DETAILS OF EMPLOYEES

3.2      In relation to each of the Employees there are contained in or attached
         to the Disclosure Letter full and complete particulars or copies of:

         (a)      standard form current written service or employment agreements
                  or particulars of employment (as appropriate) and including
                  the notice periods applicable and issued to each category of
                  Employee; and

         (b)      any procedures affecting their terms of employment, including
                  disciplinary or grievance procedures and any procedures to be
                  followed in the case of redundancy or dismissal.

3.3      In relation to each of the Employees there are contained in or attached
         to the Disclosure Letter full, complete and accurate particulars or
         copies of:

         (a)      their name, ID number, age, sex, date of commencement of
                  employment with the Vendor or the relevant member of the
                  Vendor Group;

         (b)      their rate of remuneration, bonus and commission, any other
                  benefit of any kind to which they are entitled or which are
                  regularly provided or made available to them, entitlement to
                  holidays and holiday bonuses, and working hour arrangements
                  (so far as not disclosed pursuant to sub-Paragraph (a) above).

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<PAGE>

         NO EMPLOYEE BENEFIT PLANS

3.4      There are no profit-sharing, share option or share incentive schemes or
         other employee benefit plans in relation to any Employee.

3.5      No Employee listed in Schedule 3 (The Employees) has a right to return
         to work (whether for reasons connected with maternity leave or absence
         by reason of illness or incapacity or otherwise).

3.6      No Employee has been given notice of termination of his employment (or
         had his employment terminated without notice) for a period of twelve
         (12) months prior to Completion.

3.7      Full particulars are contained in the Disclosure Letter of any
         outstanding offer of employment made to any person by the Vendor or the
         relevant member of the Vendor Group in relation to the Business and
         there is no person who has accepted such an offer of employment made by
         the Vendor or the relevant member of the Vendor Group but whose
         employment has not yet started.

3.8      Full particulars are contained in the Disclosure Letter of any
         agreement for the provision of consultancy services or the services of
         personnel to the Business and of the terms applicable to the secondment
         to the Business of any person.

         CHANGES IN BENEFITS

3.9      As far as the Vendor or the relevant member of the Vendor Group is
         aware, it has not offered, promised or agreed for the future any
         variation in any contract of employment or any contract for services in
         respect of the Employees employed by the Vendor or the relevant member
         of the Vendor Group in respect of whom liability is deemed by the
         Regulations or its equivalent in any other jurisdiction, to pass to CSC
         or any member of the CSC Group.

3.10     No order that has not yet been complied with has been made for the
         reinstatement or re-engagement following Completion of any of the
         Employees or any person formerly employed or engaged in the Business.

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<PAGE>

3.11     Except in respect of normal accruals of remuneration or emoluments of
         employment, no sum is payable to or for the benefit of any Employee or
         their dependants nor is the Vendor or any member of the Vendor Group a
         party to any arrangements or promise to make or is in the habit of
         making ex gratia or voluntary payments by way of bonus, gratuity,
         allowance or the like to any such persons and there are no schemes of
         arrangements (whether legally enforceable or not) for the payment of
         disability or similar schemes or arrangements in operation or
         contemplated in respect of any of the Employees or their dependants or
         persons formerly employed or engaged in the Business or their
         dependants under which CSC or any member of the CSC Group may become
         liable to make payments or to provide equivalent benefits.

3.12     The Vendor or the relevant member of the Vendor Group does not have an
         obligation to make any payment on redundancy in excess of the statutory
         redundancy payment and the Vendor or the relevant member of the Vendor
         Group has not operated any discretionary practice of making any such
         excess payments.

3.13     There is not and during the twelve (12) months preceding the date of
         this Agreement there has not been any industrial action (other than
         insignificant unofficial action) by the Employees affecting the
         Business and to the best of the knowledge, information and belief of
         the Vendor or the relevant member of the Vendor Group, there are no
         facts or circumstances which might give rise to such industrial action
         (other than insignificant unofficial action).

3.14     The Vendor or any member of the Vendor Group is not a party to any
         collective agreement or other similar agreement (such as a dismissal
         procedures agreement) or trade dispute (or related proceedings) with
         unions or other employee representatives or otherwise relating to the
         Employees as one or more collective units. To the best of the
         knowledge, information and belief of the Vendor or the relevant member
         of the Vendor Group there are no facts or circumstances which might
         give rise to the Vendor or the relevant member of the Vendor Group
         becoming a party to any such agreement or becoming involved in any such
         dispute or proceedings.

3.15     The Vendor or the relevant member of the Vendor Group is not engaged or
         involved in any dispute, claim or legal proceedings (whether arising
         under contract, common law, statute or in equity) with any of the
         Employees nor with any other person

                                       91
<PAGE>

         employed by the Vendor or the relevant member of the Vendor Group in
         respect of whom liability is deemed to pass to CSC or any member of the
         CSC Group by virtue of the Regulations or its equivalent in any other
         jurisdiction, and so far as the Vendor or the relevant member of the
         Vendor Group is aware there is no likelihood of any such dispute, claim
         or proceedings arising at any time.

4.       PENSIONS

         In this part of this Schedule, the following terms have the following
         definitions:

         "GEC PLAN" means: [***].

         "MARCONI PENSION SCHEME(S)" means: [***];

         "MARCONI WELFARE SCHEME(S)" means: [***]; and

         "STATE SCHEME(S)" means arrangements under public law statute or
         regulation to which the Vendor or a member of the Vendor Group
         contributes in compliance with applicable law or regulation.

4.1      NO OTHER SCHEMES

         So far as is material, other than the Marconi Pension Scheme(s), the
         Marconi Welfare Scheme(s), the State Scheme(s) and save as disclosed in
         the Disclosure Letter, there is not in operation nor is there any
         obligation, nor has any proposal been announced either verbally or in
         writing, to establish a superannuation, pension, retirement, life
         assurance, death benefit, sickness, accident benefit or other similar
         scheme or arrangement in respect of which the Vendor has any legally
         binding liability to contribute or incur an obligation to or in respect
         of any Employee.

4.2      INFORMATION

4.2.1    Details of whether the Marconi Pension Scheme(s) are Mixed Scheme(s)
         (for the purposes of paragraph 1 of Part 3 of Schedule 8 (Pensions and
         Related Benefits)), funded self-contained plans (for the purposes of
         paragraph 2 of Part 3 of Schedule 8 (Pensions and Related Benefits)) or
         unfunded schemes (for the purposes of paragraph 3 of Part 3 of Schedule
         8 (Pensions and Related Benefits)) have been given to CSC or a member
         of the CSC Group.

4.2.2    Details of the Marconi Pension Scheme(s) and Marconi Welfare Scheme(s)
         have been given to CSC or a member of the CSC Group in the form (so far
         as relevant in each case) of:

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<PAGE>

         (a)      a copy of the governing documentation of the Marconi Pension
                  Scheme(s) and Marconi Welfare Scheme(s);

         (b)      a copy of the current explanatory booklet issued to any
                  Employee who is or is entitled to become a member of a Marconi
                  Pension Scheme;

         (c)      a copy of the audited accounts and financial statements of the
                  Marconi Pension Scheme(s) for the last scheme year;

         (d)      the latest actuarial valuation report of the Marconi Pension
                  Scheme(s) that provide defined benefits; and

         (e)      a list of the Employees who are members of the Marconi Pension
                  Scheme(s) and the Marconi Welfare Scheme(s) together with
                  sufficient data to enable CSC to ascertain its benefit
                  entitlements under the Marconi Pension Scheme(s) and Marconi
                  Welfare Scheme(s).

4.2.3    The details of the Marconi Pension Scheme(s) and Marconi Welfare
         Scheme(s) which have been given to CSC or a member of the CSC Group
         referred to in paragraphs 4.2.2 (a), (b), (c), (d) and (e) above are
         sufficient and complete in all material respects to enable CSC to
         ascertain benefits provided under the Marconi Pension Schemes and
         Marconi Welfare Scheme(s) in respect of the Employees and the value of
         such benefits.

4.3      CONTRIBUTION RATES

         Details of the current contribution rate(s) contributed to the Marconi
         Pension Scheme(s) and Marconi Welfare Scheme(s) by the Vendor or the
         relevant member of the Vendor Group have been given to CSC or a member
         of the CSC Group.

4.4      EXERCISE OF DISCRETIONS

         Except as disclosed in the Disclosure Letter, no discretion or power
         has been exercised under the Marconi Pension Scheme(s) or the Marconi
         Welfare Scheme(s) in respect of any Employee to augment benefits,
         provide a benefit which would not otherwise be provided or pay a
         contribution which would not otherwise have been paid.

4.5      AMENDMENT AND TERMINATION

         Except as disclosed in the Disclosure Letter, no plan, proposal or
         intention to amend, discontinue (in whole or in part) or exercise a
         discretion in relation to the Marconi

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<PAGE>

         Pension Scheme(s) or the Marconi Welfare Scheme(s) with respect to any
         Employee has been communicated to any Employee who is a member of a
         Marconi Pension Scheme or the Marconi Welfare Scheme nor has any act or
         event occurred which could give rise to a full or partial
         discontinuance of any Marconi Pension Scheme or the Marconi Welfare
         Scheme with respect to any Employee under applicable law.

4.6      FUNDING

         No contribution due to the Marconi Pension Scheme(s) or the Marconi
         Welfare Scheme(s) is/are unpaid (other than those payable in the month
         in which Completion takes place or the immediately preceding month)
         which unpaid amounts will be paid by the Vendor in accordance with the
         terms of the Marconi Pension Scheme(s) or the Marconi Welfare Scheme(s)
         and applicable law.

4.7      APPROVAL

         The [***] is an exempt approved scheme within the meaning of s592 ICTA.

4.8      CONTRACTING-OUT

         The [***] is not a contracted-out scheme within the meaning of the
         Pension Schemes Act 1993.

4.9      COMPLIANCE

         Each of the Marconi Pension Scheme(s) and the Marconi Welfare Scheme(s)
         with respect to Employees has been administered and invested in
         accordance with its terms and with the provisions of its governing
         documentation. Each of the Marconi Pension Scheme(s) and the Marconi
         Welfare Scheme(s) and each of the funds established thereunder is in
         compliance with the law applicable to the jurisdiction of its residence
         with respect to Employees.

4.10     NO DISPUTES

         There is no pending or threatened litigation, arbitration, proceedings,
         investigations or other claims, other than routine claims for benefits,
         relating to the Marconi Pension Scheme(s), the Marconi Welfare
         Scheme(s) or the State Scheme(s) or any benefits provided under them in
         relation to any of the Employees.

4.11     US SCHEMES

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<PAGE>

4.11.1   Each Marconi Pension Scheme intended to be a qualified plan under
         Section 401(a) of the United States Internal Review Code of 1986, as
         amended ("THE CODE") has received a favourable determination letter
         from the Internal Revenue Services that it is qualified under Code
         Section 401(a) and that its related trust is exempt from federal income
         tax under Code Section 501(a) and such determination letter has not
         been revoked.

4.11.2   Neither the Vendor nor any member of the Vendor Group has established,
         maintained or contributed to or otherwise participated in, or had an
         obligation to maintain, contribute to, or otherwise participate in, any
         Multiemployer Plan (as that term is defined in section 3(37)(A) of the
         United States Employee Retirement Income Security Act of 1973, as
         amended ("ERISA")) within the last six years in respect of the US
         Transferring Employees.

4.11.3   Except to the extent required under ERISA Section 601 et seq. and Code
         Section 4980B, neither the Vendor nor any member of the Vendor Group is
         obliged to provide health or welfare benefits to any Non-European
         Transferring Employee employed in the United States prior to the
         Completion Date or dependant or beneficiary thereof following such
         employee's retirement or other termination of service.

4.11.4   The Vendor and other relevant members of the Vendor Group have complied
         with the provisions of ERISA Section 601 et seq. and Code Section 4980B
         and with the provisions of ERISA Section 701 et seq. and Subtitle K of
         the Code.

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<PAGE>

                                    SCHEDULE 7

                              LIMITATIONS ON CLAIMS

1.       CSC TO NOTIFY POTENTIAL CLAIMS

         If CSC becomes aware of any fact, matter, event or circumstance by
         virtue of which in its reasonable judgment at the time the Vendor is or
         may become liable to make any payment under any of the Warranties or
         any other provision of this Transfer Agreement, CSC shall as soon as
         practicable [***] inform the Vendor in writing specifying in reasonable
         detail the fact, matter, event or circumstance giving rise (or which
         may give rise) to that liability and giving an estimate of the amount
         which may be claimed against the Vendor in respect of that liability.
         For the avoidance of doubt, any failure to give notice under this
         paragraph 1 shall not invalidate any claim which CSC may subsequently
         make provided that the Vendor shall bear no liability for any increased
         Losses which CSC or any member of the CSC Group may suffer or incur as
         a result of failing to provide notice in accordance with this
         paragraph.

2.       TIME LIMIT ON CLAIMS

2.1      No claim shall be brought by CSC under the Warranties unless it shall
         have given notice in writing of that claim specifying (in reasonably
         sufficient detail) the matter giving rise to the claim, the nature of
         the claim and, so far as practicable, the amount claimed to the Vendor
         not later than the expiry of a period of [***] commencing on:

         (a)      in the case of any claim or claims for breach of the
                  Warranties in paragraph 1 of Schedule 6 (Warranties), the
                  Equipment Completion Date applicable to the IT Equipment in
                  respect of which such claims or claims have arisen;

         (b)      in the case of any claim or claims for breach of the
                  Warranties in paragraph 2 of Schedule 6 (Warranties) insofar
                  as the claim relates to an In-Scope Contract, the In-Scope
                  Contract Completion Date applicable to the In-Scope Contract
                  in question; and

         (c)      in the case of any claim or claims for breach of the
                  Warranties in paragraphs 3 and 4 of Schedule 6 (Warranties),
                  the Completion Date applicable to the Employees in question.

2.2      [***]

3.       SPECIFIC LIMITATIONS

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<PAGE>
         CSC shall not be entitled to claim against the Vendor:

         (a)      under the Warranties [***] until the amount (excluding
                  interest and costs) that would be recoverable from the Vendor
                  in respect of the claim, when aggregated with:

                  (i)      the amount (excluding interest and costs) recoverable
                           in respect of any other claims made against the
                           Vendor under the Warranties or any other provision of
                           this Transfer Agreement; and

                  (ii)     the aggregate amount (excluding interests and costs)
                           recoverable in respect of any other claims made
                           against any member of the Vendor Group under the
                           Asset Transfer Agreement or under any other Transfer
                           Agreement,

                  exceeds a threshold of [***] pounds ((pound)[***]) in which
                  event, the Vendor shall be liable for the full amount of ALL
                  such claims and not the amount by which that threshold is
                  exceeded only, subject to paragraph 4.

         (b)      under the Warranties only:

                  (i)      in respect of any matters referred to in this
                           Transfer Agreement or fairly disclosed in the
                           Disclosure Letter;

                  (ii)     in respect of any matter or thing after the date of
                           this Transfer Agreement done or omitted to be done at
                           the written request of or with the written consent of
                           CSC or any other member of the CSC Group; [***]

                  (iii)    if and to the extent that:

                           (A)      the claim would not have arisen but for any
                                    act, omission, transaction or arrangement
                                    (or any combination of any of the same),
                                    after the date as at which the relevant
                                    Warranty is given pursuant to Clause 12.1
                                    (Warranties), of CSC or any member of the
                                    CSC Group or their respective directors,
                                    employees or agents except to the extent
                                    that such act, omission, transaction or
                                    arrangement has been undertaken [***];

                           (B)      the claim arises or is increased as a result
                                    of the passing of, or any change in or any
                                    change in the interpretation of, any law,
                                    rule, regulation or administrative practice
                                    of any government,

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<PAGE>
                                    government department, local or state
                                    agency, authority regulatory or fiscal body
                                    after the date of this Transfer Agreement;

                           (C)      the claim arises or is increased as a result
                                    of CSC not complying with its obligations
                                    under this Transfer Agreement; or

                           the damage, liability or loss suffered or incurred by
                           CSC has been made good or has been otherwise
                           compensated for without cost to CSC or any member of
                           the CSC Group.

4.       LIMITS OF LIABILITY UNDER THE ASSET TRANSFER AGREEMENT

         The aggregate liability of each of the Marconi Group and the CSC Group
         in respect of:

         (i)      all claims under or in connection with [***] the Warranties
                  [***]);

         (ii)     all claims under or in connection with each and every other
                  Territory Transfer Agreement [***] under the Warranties [***];
                  and

         (iii)    all claims under or in connection with the Asset Transfer
                  Agreement (including claims under the Warranties and
                  indemnities),

         shall, save and except in the case of, a breach by Marconi or any of
         the members of the Marconi Group of any of its statutory or contractual
         obligations relating to health and safety, not exceed a maximum sum
         equal to (pound)[***] ([***]pounds) [***]. For the avoidance of doubt,
         this paragraph does not limit the obligation of any members of the CSC
         Group to pay the Vendor Equipment Consideration to the Marconi Group in
         accordance with this Agreement and/or any Transfer Agreement.

5.       NO DOUBLE RECOVERY

         CSC shall not be entitled to recover more than once for the same Loss
         in respect of any fact, matter, event or circumstance giving rise to a
         claim under the Warranties or any other provision of this Transfer
         Agreement, the Asset Transfer Agreement or any other contract or
         document entered into pursuant to those agreements. Where any fact,
         matter, event or circumstance giving rise to a claim under the
         Warranties results in an adjustment to the Charges under a True-up
         Process, the financial adjustment so made shall be excluded from the
         quantum of any Loss otherwise recoverable for the breach of the
         Warranties in question.

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6.       RECOVERY FROM THIRD PARTIES

6.1      If CSC is or may be entitled to recover from some other person (other
         than an insurer) any loss or damage which gives rise to any claim under
         the Warranties or any other provision of this Transfer Agreement, CSC
         shall take all appropriate steps to enforce that recovery (keeping the
         Vendor informed on a timely basis of any action so taken) before taking
         any action (other than notifying the Vendor of the claim) against the
         Vendor and any liability of the Vendor under this Transfer Agreement
         shall be reduced by the amount (including interest (if any)) recovered
         from the third party less any costs reasonably incurred by CSC in
         respect of such recovery.

6.2      If, notwithstanding any other provision of this Schedule, any payment
         is made by the Vendor in or towards the settlement of any claim made
         under the Warranties or any other provision of this Transfer Agreement
         and CSC subsequently recovers or procures the recovery from a third
         party (other than insurers) of an amount which is referable to that
         claim (and, in the event that CSC becomes entitled subsequent to
         payment by the Vendor to make recovery, CSC undertakes to take all
         necessary steps to enforce that recovery) CSC shall forthwith repay to
         the Vendor an amount equal to whichever is the lesser of:

         (a)      the amount (including interest (if any)) recovered from the
                  third party less any costs reasonably incurred by CSC in
                  respect of such recovery; and

         (b)      the amount paid by the Vendor in or towards settlement of the
                  claim.

7.       CONDUCT OF CLAIMS

         If CSC becomes aware of any actual or threatened assessment, claim,
         action or demand by a third party against it (a "THIRD PARTY CLAIM")
         which causes or may cause the Vendor to be liable under the Warranties
         or any other provision of this Transfer Agreement then:

         (a)      CSC shall at the written request of the Vendor:

                  (i)      take such action as the Vendor may reasonably require
                           to avoid, contest, dispute, resist, appeal,
                           compromise or defend the third party claim
                           (including, but without limitation, making counter
                           claims and exercising all rights of set off against
                           third parties);

                  (ii)     if so requested, permit the Vendor or procure that
                           the Vendor is permitted in the name of and on behalf
                           of CSC to have the sole

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                           conduct of all proceedings relating to the third
                           party claim as the Vendor may deem appropriate
                           including the appointment of solicitors and other
                           professional advisers and the making of any
                           settlement or compromise of the third party claim;
                           and

                  (iii)    render or cause to be rendered to the Vendor all
                           assistance as the Vendor may reasonably require
                           (including providing access to information and to
                           employees of CSC) for the purpose of avoiding,
                           contesting, disputing, resisting, appealing,
                           compromising or defending the third party claim,

                  provided that:

                           (A)      the Vendor shall indemnify CSC against all
                                    costs reasonably incurred by it in complying
                                    with its respective obligations under
                                    paragraphs 7(a) (i), (ii) and (iii) above;
                                    and

                           (B)      the Vendor shall not make any settlement or
                                    compromise of the third party claim which is
                                    likely to affect the future liabilities of
                                    CSC without the prior approval of CSC, that
                                    approval not to be unreasonably withheld or
                                    delayed;

(b)      CSC will not make or attempt to make any admission of liability,
         agreement, settlement or compromise in relation to a third party claim
         without the consent of the Vendor such consent not to be unreasonably
         withheld or delayed;

(c)      CSC shall in any event keep the Vendor informed as to the steps which
         are being taken in connection with the third party claim.

8.       DUTY TO MITIGATE

         CSC shall in relation to any loss or liability which might give rise to
         a claim under the Warranties or any other provision of this Transfer
         Agreement against the Vendor take all reasonable steps to avoid or
         mitigate that loss or liability.

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                                   SCHEDULE 8

                          PENSIONS AND RELATED BENEFITS

PART 1 - UK PENSIONS - THE G.E.C 1972 PLAN

1.       INTERPRETATION

1.1      For the purposes of this Schedule the following terms have the
         following meanings:

         "ACTUARY'S LETTER" means the letter from the Vendor's Actuary to CSC's
         Actuary, a copy of which is annexed to this Schedule.

         "CALCULATION DATE" means a date to be determined by the Vendor's
         Actuary no later than three (3) months after Completion.

         "CSC'S ACTUARY" means [***]

         "CSC SCHEME" means a retirement benefits scheme established by CSC
         pursuant to paragraph 2.

         "GEC PLAN" means [***].

         "VENDOR'S ACTUARY" means [***].

         "PAYMENT DATE" means the date which is one month after the expiry of
         the two month period in which the Relevant Employees must decide
         whether or not to become Transferring Employees.

         "RELEVANT EMPLOYEES" means those Employees who are active members of
         the GEC Plan at Completion.

         "TRANSFER AMOUNT" means an amount calculated at the relevant date as
         the sum of the Transferring Employees' cash equivalents at the same
         relevant date calculated and verified by the Vendor's Actuary in
         accordance with the Occupational Pension Schemes (Transfer Values)
         Regulations 1996 and enhanced in accordance with the method set out in
         the Actuary's Letter. [***]

         "TRANSFERRING EMPLOYEES" means those Relevant Employees:

         (a)      who become members of the CSC Scheme on Completion; and

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         (b)      who no later than two months after notification of the service
                  credits available to them in the CSC Scheme consent in a form
                  acceptable to the trustees of the GEC Plan (such acceptance
                  not to be unreasonably withheld) to the transfer of that part
                  of the Transfer Amount which is attributable to them from the
                  GEC Plan to the CSC Scheme in place of all of the benefits
                  payable in respect of their membership of the GEC Plan.

1.2      References in this part of this Schedule to paragraphs are to
         paragraphs of this part of this Schedule.

2.       THE CSC SCHEME

2.1      CSC will (to the extent it had not already done so) establish the CSC
         Scheme before Completion. All Relevant Employees who do not transfer
         directly to British Telecommunications plc or a member of the BT Group
         and who have not attained age 65 will be invited to become members of
         the CSC Scheme with effect from Completion.

2.2      The CSC Scheme shall offer, to each Relevant Employee who accepts such
         invitation, benefits on the defined benefit basis set out in the third
         column of the table of the document named
         "alchemy.geccplancomparison.excels" provided by CSC (which is annexed
         to this Schedule).

2.3      The CSC Scheme shall be approved under Chapter I of Part XIV of ICTA or
         capable of such approval and CSC will use its reasonable endeavours to
         procure that the CSC Scheme accepts the transfer to the CSC Scheme of
         the Transfer Amount.

2.4      Subject to receipt of the Transfer Amount recalculated at the Payment
         Date, CSC will procure that the CSC Scheme will provide for and in
         respect of each Transferring Employee benefits in respect of
         Pensionable Service in the GEC Plan before Completion which are
         equivalent in value as determined in accordance with the Actuary's
         Letter to the amount transferred in respect of each Transferring
         Employee, on the defined benefit basis referred to in paragraph 2.2.

3.       ADDITIONAL VOLUNTARY CONTRIBUTIONS

         Any additional voluntary contributions made to the GEC Plan by any
         Relevant Employee (and the moneys, interest and benefits derived from
         those contributions) which are used to provide money purchase benefits
         (as defined in the Pension Schemes Act 1993) shall be disregarded for
         the purposes of calculating the Transfer Amount, but the Vendor will
         use its best endeavours to procure that the trustees of the

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         GEC Plan will as soon as practicable after Completion transfer to the
         CSC Scheme the assets and/or the amount standing to the credit of each
         Transferring Employee in respect of additional voluntary contributions
         paid to the GEC Plan.

4.       CALCULATION AND PAYMENT OF THE TRANSFER AMOUNT

4.1      The Vendor shall procure that the Vendor's Actuary computes and
         certifies to CSCs Actuary within two (2) months after the Calculation
         Date the sum of the Relevant Employees' cash equivalents at the
         Calculation Date together with the enhancement described in the
         Actuary's Letter.

4.2      CSC shall procure that the CSC Actuary calculates and notifies to the
         Vendor's Actuary within one (1) month of receipt of the Vendor's
         Actuary's calculation of the sum of the Relevant Employees' cash
         equivalents, together with the enhancement referred to in the Actuary's
         Letter, the service credits available to the Relevant Employees in the
         CSC Scheme if they opt to become Transferring Employees.

4.3      Subject to confirmation from the Vendor's Actuary that the service
         credits to be offered to the Relevant Employees meet the requirements
         of paragraph 2.4 of this Schedule, CSC shall issue the forms referred
         to in part (b) of the definition of "Transferring Employees" to the
         Relevant Employees inviting them to become Transferring Employees.

4.4      Subject to it being satisfied that CSC has met or will meet its
         obligations under paragraph 2 above, the Vendor will use its best
         endeavours to procure that on the Payment Date the trustees of the GEC
         Plan pay the Transfer Amount re-calculated at the Payment Date to the
         trustees of the CSC Scheme in cash or such other assets chosen by the
         trustees of the GEC Plan and acceptable to the trustees of the CSC
         Scheme. In the absence of agreement the trustees of the GEC Plan will
         transfer cash.

4.5      If the trustees of the GEC Plan do not pay cash or other assets equal
         in value to the Transfer Amount re-calculated at the Payment Date to
         the CSC Scheme on or before the Payment Date, the Vendor shall, no
         later than fourteen (14) days after the Payment Date, pay to CSC an
         amount equal to the sum by which the Transfer Amount exceeds the value
         of cash or other assets (if any) paid by the trustees of the GEC Plan
         to the CSC Scheme together with compound interest calculated on a day
         to day basis with monthly rests on such amount (or on any part thereof)
         for so long as it shall remain unpaid after the Payment Date at [***]
         per cent ([***]%) above the base rate of Barclays Bank plc from time to
         time.

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4.6      If a payment is made under paragraph 4.5 CSC shall make a payment equal
         to the payment under paragraph 4.5 to the CSC Scheme within [***] days.
         If CSC's liability to corporation tax applicable to its profits is
         reduced as a result of the payment of the amount under paragraph 4.5
         into the CSC Scheme CSC shall repay in cash to the Vendor an amount
         equal to such deduction (as an adjustment to the Consideration) within
         [***] days of the date on which the corporation tax would otherwise
         have been due and payable.

5.       MISCELLANEOUS

         CSC will promptly deliver to the Vendor drafts before they are issued
         and copies once they are issued of all notices and announcements
         relating to the GEC Plan or the CSC Scheme supplied to the Relevant
         Employees before Completion.

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                       APPENDIX 1 TO PART 1 OF SCHEDULE 8

                                      [***]

PART 2 - UNITED STATES BENEFITS

1.       INTERPRETATION

1.1      For the purposes of this Schedule the following terms have the
         following meanings:

         "AFFECTED EMPLOYEES" means those Employees listed on part 4 of Schedule
         3 (Employees) who become employees of CSC or any member of the CSC
         Group on or after Completion and who immediately prior to Completion
         were employed in the United States.

         "CSC 401(K) PLAN" means the CSC Matched Asset Plan.

         "CSC HEALTH AND WELFARE PLANS" means the CSC Health and Welfare Plans
         which are welfare plan arrangements currently maintained by CSC to
         provide health and medical benefits to employees.

         "CSC LONG-TERM DISABILITY PLAN" means the CSC Long Term Disability
         (LTD) Plan.

         "CSC RETIREMENT PLAN" means the CSC Defined Benefit Retirement Plan.

         "CODE" means the United States Internal Revenue Code of 1986, as
         amended.

         "ERISA" means the United States Employee Retirement Income Security Act
         of 1974, as amended.

         "MARCONI 401(K) PLAN" means the Marconi USA Wealth Accumulation Plan.

         "MARCONI K PLANS" means the Marconi 401(k) Plan and the Marconi
         Matching Plan.

         "MARCONI MATCHING PLAN" means the Marconi USA Wealth Accumulation
         Matching Plan.

         "MARCONI RETIREMENT PLAN" means the Marconi USA Employees' Retirement
         Plan.

         "MARCONI TOTAL REWARDS" means the welfare plan arrangements covering
         Affected Employees who immediately prior to Completion were employed in
         the United States.

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<PAGE>

         "OTHER BENEFIT OBLIGATION" means any obligation, arrangement or
         customary practice owed, adopted or followed by the Vendor or any
         member of the Vendor Group with respect to any Affected Employee,
         whether or not legally enforceable, to provide benefits, other than
         salary, as compensation for services rendered, to present or former
         directors, officers, employees or agents, other than obligations,
         arrangements and practices that are plans (as that term is defined in
         section 3(3) of ERISA). Other Benefit Obligations include consulting
         agreements under which the compensation paid does not depend upon the
         amount of service rendered, sabbatical policies, severance payment
         policies and fringe benefits within the meaning of Code Section 132.

         "SELLER PLAN" means any plan (as that term is defined in section 3(3)
         of ERISA) covering any Affected Employee of which the Vendor or any
         member of the Vendor Group is or was a plan sponsor (as that term is
         defined in Section 3(16)(B) of ERISA), or to which the Vendor or any
         member of the Vendor Group otherwise contributes or has contributed, or
         in which the Vendor or any member of the Vendor Group otherwise
         participates or has participated.

1.2      References in this part of this Schedule to paragraphs are to
         paragraphs of this Schedule unless otherwise specified.

2.       EMPLOYEE BENEFIT PLANS

2.1      On or prior to the Completion Date, the Vendor shall cause all
         contributions on behalf of Affected Employees to be made to the Marconi
         K Plans for periods prior to and including the Completion Date and
         Affected Employees shall cease to participate in the Marconi K Plans
         for periods after the Completion Date. The Vendor shall cause the
         Affected Employees to be fully and immediately vested in their account
         balances, if any, under the Marconi K Plans as of the Completion Date.
         CSC shall permit Affected Employees to participate in the CSC 401(k)
         Plan commencing upon employment with CSC in accordance with the terms
         and conditions of the CSC 401(k) Plan. CSC shall cause CSC 401(k) Plan
         to recognize the service of Affected Employees credited by the Vendor
         as of the Completion Date for vesting purposes under the Marconi K
         Plans immediately prior to the Completion Date: (a) for vesting
         purposes under the CSC 401(k) Plan; and (b) for purposes of eligibility
         for company matching contributions under the CSC 401(k) Plan. The CSC
         401(k) Plan shall accept the rollover of distributions (which are
         eligible rollover distributions under section 402(c) of the Code) of
         Affected Employees' account balances (other than any portion consisting
         of after-tax employee contributions), from the Marconi K Plans or from
         any other 401(k) plan established by the Vendor, including the rollover
         of

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<PAGE>

         participant loans, if any, in accordance with the election of the
         Affected Employees provided that the Marconi K Plans will not permit
         the election of a rollover of loans later than the 31st day after the
         Completion Date. The Vendor and CSC shall use their reasonable
         endeavours to accomplish the rollovers of account balances as described
         above. CSC shall uplift the base salaries of the Affected Employees to
         compensate for the difference in the matching contributions between the
         Marconi K Plans and the CSC 401(k) Plan, in accordance with the
         attached Appendix 2.1 of this part 2 of Schedule 8.

2.2      Affected Employees shall cease accruing future benefits in the Marconi
         Retirement Plan for periods after the Completion Date. The Vendor shall
         cause the Affected Employees to be fully and immediately vested in
         their accrued benefits, if any, under the Marconi Retirement Plan as of
         the Completion Date [provided that the Vendor determines within its
         discretion that such vesting satisfies the requirements of Treasury
         Regulation section 1.401(a)(4)-11(c)]. No transfer of assets nor
         liabilities from the Marconi Retirement Plan to the CSC Retirement Plan
         will occur. CSC shall permit Affected Employees to participate in the
         CSC Retirement Plan commencing upon employment with CSC in accordance
         with the terms and conditions of the CSC Retirement Plan. CSC shall
         cause CSC Retirement Plan to recognize the past service of Affected
         Employees for purposes of eligibility and vesting, but not for purposes
         of benefit accrual, to the extent such service was recognized for
         vesting purposes under the Marconi Retirement Plan immediately prior to
         the Completion Date. CSC shall uplift the base salaries of the Affected
         Employees to compensate for the difference in the contributions between
         the Marconi Retirement Plan and the CSC Retirement Plan, in accordance
         with the attached Appendix 2.2 of this part 2 of Schedule 8.

2.3      Affected Employees shall cease to participate in the Marconi Total
         Rewards program for periods after the Completion Date, except as
         otherwise specifically provided under the terms of the Marconi Total
         Rewards program or as required under section 4980B of the Code or
         section 601 of ERISA. CSC shall permit Affected Employees to
         participate in the CSC Health and Welfare Plans commencing upon
         employment with CSC in accordance with the terms and conditions of such
         plans. The CSC Health and Welfare Plans shall provide that each
         Affected Employee (and their covered dependents) shall be given credit
         for service with the Vendor (and any other companies for which such
         service was recognized under Marconi Total Rewards) for purposes of
         waiting periods except where a third party insurance provider prohibits
         the crediting of such service for such purpose. In addition, CSC will
         apply prior period(s) of health insurance coverage toward satisfaction
         of the CSC Health and Welfare Plans pre-existing condition limitations
         upon submission of Certificate(s) of

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<PAGE>

         Creditable Coverage, as defined in and permitted under the Health
         Insurance Portability and Accountability Act of 1996. Amounts that an
         Affected Employee has paid or is required to pay which have been
         applied towards the satisfaction of any deductible or out of pocket
         maximum under the medical and dental portions of the Marconi Total
         Rewards program for the Marconi Total Rewards plan year ended March 31,
         2003 will be similarly applied towards the satisfaction of any
         deductible or out of pocket maximum under the CSC Health and Welfare
         PPO and Dental Plans for the CSC Health and Welfare Plan year ended
         December 31, 2003. CSC shall uplift base salaries of the Affected
         Employees, in order to compensate for the differences between the
         Marconi Total Rewards program and the CSC Health and Welfare Plans, in
         accordance with the attached Appendix 2.3 of this Part 2 of Schedule 8.

2.4      As of the Completion Date, CSC shall credit each Affected Employee with
         a number of vacation days which shall be equal to the number of
         vacation days that such Affected Employee had accrued under the Marconi
         paid time off ("PTO") policy immediately prior to the Completion Date,
         provided that such credited days shall not exceed fifty (50) days for
         any individual Affected Employee. The vacation days so credited may be
         used by Affected Employees in accordance with CSC's general vacation
         policies. Within fifteen (15) days after the Completion Date, the
         Vendor shall transfer to CSC an amount equal to the value of the
         aggregate number of vacation days credited to Affected Employees
         pursuant to the first sentence of this paragraph. For purposes of the
         preceding sentence, the value of the number of vacation days credited
         shall be determined by multiplying the number of vacation days credited
         to each Affected Employee by such Affected Employee's daily pay rate in
         effect on the date immediately preceding the Completion Date.

         After the Completion Date, each Affected Employee shall accrue vacation
         days under CSC's vacation policy at the same rate that each such
         Affected Employee accrued PTO days under the Marconi PTO policy as of
         the Announcement Date (the "MARCONI RATE"), provided that such accrual
         shall not exceed 25 days per year for any individual Affected Employee.
         If the Marconi Rate of any Affected Employee would have otherwise
         resulted in an accrual of vacation days in excess of 25 days per year,
         then CSC shall uplift the base salary of such Affected Employee by an
         amount equal to the value of the Affected Employee's annual vacation
         days calculated using the Marconi Rate (but in no event to exceed
         thirty (30) days per year) less the value of twenty five (25) vacation
         days per year. For purposes of the preceding sentence, the value of
         vacation days shall be determined by multiplying the number of vacation
         days by any such Affected Employee's daily pay rate in effect on the
         date immediately preceding the Completion Date.

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<PAGE>

         Notwithstanding the previous paragraph, if, during any Affected
         Employee's employment with CSC, the employment service of such Affected
         Employee would result in an accrual of vacation days under CSC's normal
         vacation policy accrual rate which is in excess of that which would be
         accrued under the Affected Employee's Marconi Rate, then CSC's normal
         vacation policy accrual rate shall thereafter apply to such Affected
         Employee. For purposes of the preceding sentence, Affected Employees
         shall be given credit for service with the Vendor (and any other
         companies for which such service was recognized under the Marconi PTO
         policy as of the Announcement Date) for purposes of CSC's vacation
         policy.

2.5      Affected Employees shall be credited with twenty (20) days of initial
         sick leave under the CSC's sick leave policy and they will accrue
         additional sick leave in accordance with CSC's sick leave policy.

2.6      Affected Employees shall be entitled to Holidays equal to the greater
         of nine (9) or the number recognized at CSC's worksite at which such
         Affected Employees are employed other than optional or elected days.
         Such Holidays shall be used in accordance with CSC's general holiday
         policies.

2.7      The Parties expressly agree that none of CSC or any member of the CSC
         Group will purchase, assume, or have any obligation or liability
         whatsoever with regard to, any Seller Plan or Other Benefit Obligation.
         Furthermore, part 3 of Schedule 8 shall have no application whatsoever
         with respect to any Seller Plan or Other Benefit Obligation.

2.8      CSC shall permit Affected Employees to participate in CSC vision, life
         insurance, Code section 125, accidental death and dismemberment,
         business travel insurance, long-term disability (including CSC
         Long-Term Disability Plan), and dependent life insurance plans or
         arrangements on the same terms and conditions as other
         similarly-situated employees of CSC; provided, however, that CSC shall
         credit service to each Affected Employee for purposes of satisfying the
         pre-existing condition limitation service requirements under CSC Long
         Term Disability Plan, with such credited service equal to the period of
         time such Affected Employee was covered under the long term disability
         portion of the Marconi Total Rewards Program or the GEC-USA Employees'
         Welfare Benefit Plan as of the Completion Date.

2.9      CSC warrants that the details of the CSC 401(k) Plan, the CSC
         Retirement Plan, the CSC Health and Welfare Plans, and the CSC
         Long-Term Disability Plan are as set forth in the CSC Employee Handbook
         provided to the Vendor, and warrants that CSC has no material adverse
         change to any of the CSC 401(k) Plan, the CSC Retirement Plan, the CSC
         Health and Welfare Plans or the CSC Long-Term Disability Plan

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<PAGE>

         under serious consideration and that CSC in normal course annually
         evaluates the CSC Health and Welfare Plans in connection with the
         annual enrolment process/annual plan renewals.

2.10     If an Affected Employee commences employment with CSC on a date later
         than the date immediately following Completion, then the date
         immediately prior to the date on which such Affected Employee commences
         employment with CSC shall be referred to as the Affected Employee's
         "Deferred Employment Date," and the provisions of paragraphs 2.1, 2.2,
         2.3, 2.4 and 2.8 of this Schedule shall be determined with respect to
         such Affected Employees by substituting the term "Deferred Employment
         Date" for the term "Completion Date" wherever such term appears in
         those paragraphs.

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                      APPENDIX 2.1 TO PART 2 OF SCHEDULE 8

The Salary uplift for each Affected Employee with respect to 401(k) plan
differences is [***] percent ([***]%) of base pay.

                      APPENDIX 2.2 TO PART 2 OF SCHEDULE 8

The Salary uplift for each Affected Employee with respect to retirement plan
differences is [***] per cent ([***]%) of base pay.

                      APPENDIX 2.3 TO PART 2 OF SCHEDULE 8

The Salary uplift for each Affected Employee with respect to medical, dental,
and vision benefits shall be a monthly dollar amount equal to the monthly amount
by which the total amount charged for medial, dental and vision coverage under
the CSC plans exceeds the total amount charged for such coverage on a monthly
basis under the Marconi Total Rewards. The medical, dental and vision coverage
of an Affect Employee shall be the medical, dental and vision coverage under
Marconi Total Rewards as of the date it is announced that this agreement has
been entered into by the Vendor and CSC ("ANNOUNCEMENT DATE"). If the amount
charged by CSC for such coverage does not exceed the amount charged by the
Vendor for such coverage, Salary shall not affected by reason of medical, dental
and vision coverage.

With respect to any Affected Employee who as of the Announcement Date has a
domestic partner covered for medical, dental and/or vision coverage under the
Marconi Total Rewards as of the Announcement Date, such Affected Employee shall
be given a one-time lump sum payment equal to the amount that would be charged
as of the Announcement Date under Marconi Total Rewards for eighteen (18) months
of COBRA coverage for the domestic partner.

The Salary uplift for Affected Employee who is covered by Long Term Disability
insurance coverage as of the Announcement Date under Marconi Total rewards shall
be monthly dollar amount equal to the monthly amount by which the total amount
charged for Long Term Disability insurance coverage under the CSC plans exceeds
the total amount that would be charged for such coverage on a monthly basis
under the Marconi Total Rewards as of the Announcement Date.

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PART 3 -          EMPLOYEE BENEFIT SCHEMES OTHER THAN THOSE COVERED BY PARTS 1
                  AND 2

1.       FUNDED MIXED SCHEMES

1.1      In this paragraph "MIXED SCHEMES" means the funded retirement benefits
         plans listed under Appendix 1 to this Part 3 of Schedule 8 under which
         both Employees and employees of the Vendor who are not Employees are in
         pensionable service at Completion.

1.2      Employees shall cease to participate in the Mixed Schemes in relation
         to their service after Completion.

1.3      CSC shall:

         (i)      (to the extent it has not already done so) provide (either by
                  establishing separate retirement benefits plans or under
                  existing retirement benefits plans) ("THE CSC SCHEMES")
                  benefits to such Employees (other than UK Transferring
                  Employees and US Transferring Employees) in respect of their
                  service after Completion; and

         (ii)     within one month of Completion offer membership to such
                  Employees (backdated to Completion) of a CSC Scheme on terms
                  which are agreed between the Vendor and CSC such that the
                  remuneration and benefits payable in respect of the Employees
                  in the aggregate are broadly comparable to those which applied
                  in respect of the Employees for service prior to Completion
                  and which require contributions by such Employees at rates no
                  higher than apply to them as at Completion (subject to any
                  increases or decreases in contributions which would have been
                  permissible and usual in terms of the rules of the Mixed
                  Schemes). In the event of the Parties' failure to agree, the
                  matter shall be referred to an independent actuary agreed by
                  CSC and the Vendor or (failing agreement within fourteen (14)
                  days of a written request from one party to the other to agree
                  to the appointment of such an actuary) appointed at the
                  request of CSC and the Vendor by or on behalf of the President
                  for the time being of the Institute of Actuaries. The decision
                  of any such actuary shall be final and binding on the Parties
                  and his expenses shall be borne equally by CSC and the Vendor.
                  The independent actuary shall act as an expert and not as an
                  arbitrator.

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1.4      Unless the Vendor and CSC otherwise agree in writing, arrangements
         shall be made in relation to each Employee (or Employees in the
         aggregate, where applicable) for the transfer (subject to relevant
         local legal, actuarial and regulatory requirements) of funds as
         provided in this paragraph 1 from the Mixed Schemes to CSC's Schemes.
         Such transfer shall be in full and final discharge of all liabilities
         of the Mixed Schemes to and in respect of such Employees.

1.5      The pensions transfer shall be

         (i)      (in respect of a defined contribution arrangement) an amount
                  equal to the value at Completion of the Employee's individual
                  pension account together with accumulated interest; and

         (ii)     (in respect of a defined benefit arrangement) the transfer
                  amount shall be the lesser of:

                  (a)      such capital value calculated in accordance with the
                           latest actuarial valuation of the defined benefit
                           arrangement or, where no such valuation is available
                           in accordance with terms agreed between the Vendor
                           and CSC and in the event of the Parties' failure to
                           agree calculated on a basis settled by the
                           independent actuary appointed under 1.3(ii), making
                           allowance (in accordance with that valuation or where
                           applicable the basis agreed between the Vendor and
                           CSC or recommended by the independent actuary
                           appointed under 1.3(ii)) for projected increases in
                           earnings up to the assumed date of cessation of
                           pensionable service; and

                  (b)      a share of assets of the Mixed Scheme calculated by
                           reference to the proportion of the total liabilities
                           of the Mixed Scheme attributable to Employees who are
                           members of the Mixed Scheme.

2.       UNFUNDED SCHEMES

2.1      In this paragraph:

         "UNFUNDED SCHEMES" means those unfunded retirement benefit plans in
         Germany which are described in Appendix 2 to Part 3 of this Schedule 8.

2.2      The Vendor shall deliver to CSC no later than thirty (30) days after
         Completion all relevant data, information and documents as CSC may
         reasonably require in order to enable it to calculate the accrued
         pension liabilities referred to in paragraph 2.3 below.

                                       113
<PAGE>

2.3      An actuary appointed by CSC shall calculate and agree with an actuary
         appointed by the Vendor the accrued pension liabilities in respect of
         the Unfunded Schemes for all active employees in employment as at
         thirty (30) days after Completion ("THE TRANSFER DATE") on the bases
         set out below, and shall notify the calculations in writing to CSC and
         to the Vendor within thirty (30) days after the Transfer Date. The
         bases of calculation shall be:

         2.3.1    in accordance with the standard national actuarial and
                  accounting principles, bases, policies, methods and practices
                  applicable in the relevant jurisdiction for an ongoing
                  Unfunded Scheme ("THE LOCAL BASIS"). For pension accruals, the
                  accounting rules and Section 6a of the German Income Tax Act
                  used to calculate book reserves will apply and the calculation
                  will refer to the mortality tables 1998 ("HEUBECK RICHTTAFELN
                  1998"); and

         2.3.2    additionally, in respect of the German Unfunded Schemes, in
                  accordance with accounting principles consistent with FAS87
                  and US GAAP and using the following actuarial assumptions
                  ("THE US BASIS"): [***]

2.4      CSC undertakes that any Unfunded Schemes will not be terminated and
         will continue to provide benefits to and make provisions in respect of
         the employees referred to in paragraph 2.3 on terms which are agreed
         between the Vendor and CSC to be broadly comparable to the terms which
         applied for such employees prior to Completion.

2.5      In the event of the Parties' failure to agree any of the matters
         referred to in paragraph 2.3 or 2.4 above, the matter shall be referred
         to an independent actuary agreed by the CSC and the Vendor or (failing
         agreement within fourteen (14) days of a written request from one party
         to the other to agree to the appointment of such an actuary) appointed
         at the request of CSC or the Vendor by or on behalf of the President
         for the time being of the Institute of Actuaries.

2.6      The Vendor undertakes to transfer to CSC the amount corresponding to
         the accrued pension liabilities calculated in accordance with the Local
         Basis. The amount shall be payable together with compound interest
         calculated at [***] per cent ([***]%) above the base rate of Barclays
         Bank plc accrued between the Transfer Date and the date of payment
         within thirty (30) days after it is notified of the amount of the
         calculation.

2.7      In the event that the value of the accrued pension liabilities in
         respect of the German Unfunded Schemes as at the Transfer Date
         calculated in accordance with the US Basis exceeds the value of those
         liabilities calculated in accordance with the Local Basis ("THE
         EXCESS"), the Vendor shall pay to CSC an amount equal to [***]% of the

                                       114
<PAGE>

         Excess less an amount equal to x% of [***]% of such Excess (where x is
         equal to the rate of corporation tax (Korperschaftsteuer) payable in
         Germany as at the Transfer Date). The net amount shall be payable
         together with compound interest calculated at [***]% above the base
         rate of Barclays Bank plc accrued between the Transfer Date pursuant to
         paragraph 2.3 and the date of payment pursuant to this paragraph 2.7.

3.       TRATTAMENTO DI FINE RAPPORTO

         In this paragraph:

         "TFR" means those unfunded Trattamento di Fine Rapporto arrangements in
         Italy.

3.1      Accrued unfunded liabilities in respect of the TFR will be calculated
         for all active employees in active employment at the Transfer Date in
         accordance with the accounting principles, bases, policies, methods and
         practices used by the Vendor for active employees in Italy for TFR.

3.2      The liabilities calculated in accordance with paragraph 3.1 will then
         be transferred to CSC. No liabilities will be payable in respect of ex
         members or pensioners. Such transfer shall be in full and final
         discharge of all liabilities of the Vendor under the TFR to and in
         respect of the accrued liabilities in respect of the TFR.

3.3      CSC undertakes that any TFR will not be terminated and will continue to
         provide benefits to and make provisions in respect of any Employees
         under the TFR that are transferring from the Vendor to CSC on terms
         which are agreed between the Parties to be substantially the same as
         the terms which applied for the employees referred to in paragraph 3.1
         prior to Completion.

4.         MISCELLANEOUS

4.1      CSC shall indemnify the Vendor for itself and as agent for each member
         of the Vendor Group who are employers of any of the European
         Transferring Employees or the South African Transferring Employees
         against any claim in respect of a failure by CSC to provide retirement
         or death-in-service benefits for or in respect of any European or South
         African Transferring Employee in respect of their service under the CSC
         Schemes on or after Completion of the same or equivalent level as those
         persons would have been entitled immediately before Completion.

                                       115
<PAGE>

                       APPENDIX 1 TO PART 3 OF SCHEDULE 8

                              LIST OF MIXED SCHEMES

<TABLE>
         <S>               <C>
         BRAZIL:           Brazil Retirement Plan with AIG/Unibanco

         CANADA:           Marconi Communications Optical Networks Corp. Savings
                           Plan

                           Marconi Group Retirement Savings Plan with the
                           Maritime Life Assurance Company

                           Canadian LLS Pension and S&I Plan (Defined Benefit)

         IRELAND:          Fore Systems Limited Benefit Plan

         ITALY:            Marconi Spa Company Fund for Dirigenti managed by INA
                           - Assitalia

         MEXICO:           Marconi Mexico Retirement Plan with Grupo Nacional
                           Provincial

         SOUTH AFRICA:     Marconi Retirement Fund

         UK:               MSI Pension arrangements

                           (Group Personal Pension Scheme and Group Life
                           Assurance Scheme)
</TABLE>

                                       116
<PAGE>

                       APPENDIX 2 TO PART 3 OF SCHEDULE 8

                            LIST OF UNFUNDED SCHEMES

GERMANY

The Unfunded Schemes listed below for Germany have all been agreed on in
collective agreements of Bosch Telekom GmbH or Robert Bosch GmbH. The Vendor
applies those Pensions Schemes for all its Employees transferring to CSC on
either a collective basis or an individual basis.

1.       Works Council Agreement "Pension Scheme" between management and Company
         Works Council of Bosch Telekom GmbH dated November 18, 1998.

2.       Protocol note to Works Council Agreement "Pension Scheme" between Bosch
         Telekom GmbH and Company Works Council dated November 18, 1998.

3.       Works Council Agreement "Payment Principles Capital Account Plan"
         between management and Company Works Council of Bosch Telekom GmbH.

4.       Protocol note to Works Council Agreement "Payment Conditions Capital
         Account Plan" between Bosch Telekom GmbH and Company Works Council
         dated November 18, 1998.

5.       Works Council Agreement "Transfer to Capital Account Plan RBI" between
         management and Company Works Council of Bosch Telekom GmbH dated
         November 18, 1998.

6.       Directive "Pension Scheme" concluded between Robert Bosch GmbH and
         Group Speakers Committee of managerial employees dated December 4,
         1998.

7.       Protocol note to Directive "Pension Scheme" between Robert Bosch GmbH
         and Group Speakers Committee for managerial employees dated December 4,
         1998.

8.       Directive "Payment Conditions Capital Account Plan" concluded between
         Robert Bosch GmbH and Group Speakers Committee for managerial employees
         dated December 4, 1998.

9.       Directive "Transfer to Capital Account Plan RBI" concluded between
         Robert Bosch GmbH and Group Speakers Committee for managerial employees
         dated December 4, 1998.

10.      Protocol note to Directive "Transfer to Capital Account Plan RBI"
         between Robert Bosch GmbH and Group Speakers Committee of managerial
         employees dated December 16, 1998.

11.      Protocol note to Company Works Council Agreement "Old Age Part Time
         (dated July 19, 1998)" between Robert Bosch GmbH and Company Works
         Council dated November 27, 1998.

                                       117
<PAGE>

                                        SCHEDULE 1A - FORM OF TRANSFER AGREEMENT

                                   SCHEDULE 9

                                     BUDGET

1.       OVERVIEW

         This schedule shows the baseline costs (with supporting schedules) as
         provided by Marconi along with the associated volume metrics provided
         by CSC and BT.

         In the following tables, information contained in the column headed
         "Original" is provided for information purposes only, and will be
         reviewed between the Parties following Cutover (as defined in the
         Master Services Agreement) but, for the avoidance of doubt, will not be
         verified as part of any True-up Process.

BASELINE COSTS
[***]

                                       118
<PAGE>

                                   SCHEDULE 10

                                INTERNAL SERVICES

INTERPRETATION

For the purposes of this Schedule 3 (Internal Services), the Parties acknowledge
that the services referenced below are described as obligations of the
"Supplier". Notwithstanding this, the Parties acknowledge that these services
are those which were provided by the Marconi Group from its own resources or
procured by the Marconi Group from third parties immediately prior to the date
of this Agreement.

PART 1:  SERVICES

The services described in Schedule 1 (Service Level Agreement) to the Master
Services Agreement, excluding the services described in Schedule 1 (Service
Level Agreement) to the BT Sub-Contract.

PART 2:  SITES

The sites set out in Schedule 1 (Service Level Agreement) to the Master Services
Agreement (including those sites set out in Appendices A (Sites), C (Asia-Pac
Services) and D (Transferring Out Entities)).

                                       119
<PAGE>

EXECUTION:

The Parties have shown their acceptance of the terms of this Transfer Agreement
by executing on the date first written above.

SIGNED by                                                  )
[  ]                                                       )
duly authorised for and on behalf of                       )
MARCONI AFFILIATE                                          )

SIGNED by                                                  )
[  ]                                                       )
duly authorised for and on behalf of                       )
CSC AFFILIATE                                              )

                                       120
<PAGE>
                               SCHEDULE 1B - FORM OF TRANSFER AGREEMENT (ITALY)

                                  SCHEDULE 1B

                       FORM OF TRANSFER AGREEMENT (ITALY)

<PAGE>

SCHEDULE 1B - FORM OF TRANSFER AGREEMENT (ITALY)          CONFIDENTIAL TREATMENT
                                                            REQUESTED BY MARCONI
                                                                 CORPORATION PLC

                                   SCHEDULE 1B

                        FORM OF LOCAL TRANSFER AGREEMENT

                                     (ITALY)

                                 DATED     2003

(1)      MARCONI COMMUNICATIONS S.P.A.

(2)      MARCONI SUD S.P.A.

(3)      CSC COMPUTER SCIENCES ITALIA S.P.A.

--------------------------------------------------------------------------------

                          CSC LOCAL TRANSFER AGREEMENT

                                     (ITALY)
--------------------------------------------------------------------------------

                        STRICTLY PRIVATE AND CONFIDENTIAL

                          MAYER, BROWN, ROWE & MAW LLP
                                11 Pilgrim Street
                                 London EC4V 6RW

                               Tel: 020-7248 4282
                               Fax: 020-7248 8155
                            Ref: 965/764/30745.00009

<PAGE>

                                    CONTENTS

<TABLE>
<CAPTION>
CLAUSE            SUBJECT MATTER                                    PAGE
<S>               <C>                                               <C>

  1.              Definitions                                          1
  2.              Sale of IT Equipment to CSC                         12
  3.              Sale of In-Scope Contracts to CSC                   13
  4.              Termination                                         14
  5.              Conditions                                          15
  6.              Consideration                                       15
  7.              Completion                                          17
  8.              Period to Completion                                18
  9.              In-Scope Contracts                                  19
  10.             Employees                                           22
  11.             Pensions and Related Benefits                       22
  12.             Warranties                                          22
  13.             Assignment and Third Party Rights                   23
  14.             Entire Agreement                                    24
  15.             Notices                                             25
  16.             Amendments and Waivers                              26
  17.             Severability                                        27
  18.             Costs                                               27
  19.             Continuing Effect                                   27
  20.             Counterparts                                        27
  21.             Announcements and Confidentiality                   28
  22.             Dispute Resolution                                  30
  23.             Arbitration                                         31
  24.             Governing Law                                       32
  25.             Regulatory Matters                                  32
  26.             Further Assurance                                   32
  27.             Language                                            33
  28.             Indemnification Procedure                           33
</TABLE>

<PAGE>

                                    SCHEDULES

Schedule 1-       Current Contracts

                      Part 1:       IT Equipment Contracts
                      Part 2:       Maintenance Contracts
                      Part 3:       Third Party Supply Contracts
                      Part 4:       Vehicle Leases
                      Part 5:       Operating Systems Licences

Schedule 2 -      Employment Provisions

Schedule 3 -      The Employees

Schedule 4 -      Apportionment of Consideration

Schedule 5 -      Completion Arrangements

Schedule 6 -      Warranties

Schedule 7 -      Limitations on Claims

Schedule 8 -      Pensions and Related Benefits

Schedule 9 -      Budget

Schedule 10     - Internal Services

                      Part 1:       Internal IT Services
                      Part 2:       Internal Network Services

<PAGE>

                               TRANSFER AGREEMENT

DATE:

PARTIES:

(1)      MARCONI COMMUNICATIONS S.P.A., a company incorporated under the laws of
         Italy, with company number 01168770996, whose registered office is at
         Via Ludovico Calda 5, 16153 Genoa, Italy ("MCS");

(2)      MARCONI SUD S.P.A., a company incorporated under the laws of Italy,
         with company number 04159131004, whose registered office is at Via
         Ludovico Calda 5, 16153 Genoa, Italy ("MSS"); and

(3)      CSC COMPUTER SCIENCES ITALIA S.P.A, a company incorporated under the
         laws of Italy, with registered number MI 12151170151, whose registered
         office is at Via Varesina 76, 20156 Milan, Italy ("CSC");

BACKGROUND:

(A)      Marconi Corporation plc wishes to outsource the provision of certain
         information technology services to CSC International Systems Management
         Inc. on the terms of an agreement (the "MASTER SERVICES AGREEMENT")
         dated 23 May 2003.

(B)      Marconi Corporation plc and CSC International Systems Management Inc.
         have agreed that the provision of network services under the Master
         Services Agreement shall be sub-contracted by CSC International Systems
         Management Inc. to British Telecommunications plc, and the terms and
         conditions of this sub-contract are contained in an agreement between
         CSC International Systems Management Inc and British Telecommunications
         plc (the "BT SUB-CONTRACT") dated 23 May 2003.

(B)      Accordingly, the Vendor and CSC have agreed for the sale and purchase
         of certain assets and the transfer of certain employees and their
         pensions, subject to the terms of this Transfer Agreement.

IT IS AGREED as follows:

1.       DEFINITIONS

1.1      In this Transfer Agreement the following definitions apply, unless the
         context otherwise requires:

                                       1
<PAGE>

         "AGREED RATE" means a percentage rate of interest equal to two (2) per
         cent per annum above the Barclays Bank PLC base lending rate in effect
         from time to time;

         "AGREED TERMS" means, in relation to any document, that document in the
         terms agreed between the Parties and signed or initialled for
         identification purposes only by or on behalf of each of them prior to
         execution of this Transfer Agreement;

         "APPLICABLE LEGISLATION" means any Legislation at any time relating or
         applicable to the Services or any lawful requirement or demand of any
         Competent Authority in respect of which compliance is legally
         obligatory;

         "ASSETS" means the Equipment and the In-Scope Contracts to be sold to
         and purchased by CSC under this Transfer Agreement, and "ASSET" shall
         mean any one of them;

         "ASSET TRANSFER AGREEMENT" means the agreement between Marconi
         Corporation plc and CSC International Systems Management Inc. of 23 May
         2003 providing (amongst other things) for the making of this Transfer
         Agreement;

         "BT ASSET TRANSFER AGREEMENT" means the agreement between Marconi
         Corporation plc, Marconi Communications Limited, CSC International
         Systems Management Inc. and British Telecommunications plc. of 23 May
         2003 providing (amongst other things) for the transfer of certain
         assets and staff;

         "BT LOCAL TRANSFER AGREEMENT" means an agreement entered into (or to be
         entered into) under the BT Asset Transfer Agreement for the sale and
         purchase of certain assets and/or the transfer of certain employees by
         one or more members of the Vendor Group directly or indirectly to one
         or more members of the BT Group;

         "BT GROUP" means all or any of the following from time to time: British
         Telecommunications plc, its subsidiaries and subsidiary undertakings
         and any parent undertaking of British Telecommunications plc and all
         other subsidiaries and subsidiary undertakings of any parent
         undertaking of British Telecommunications plc, and "MEMBER OF THE BT
         GROUP" shall be construed accordingly.

         "BT SUB-CONTRACT" has the meaning given to it in Background (B);

         "BUDGET" means the notional costs in respect of the services referred
         to in Schedule 10 (Internal Services), as set forth in Schedule 9
         (Budget);

                                       2
<PAGE>

         "BUSINESS DAY" means any day when clearing banks are open for business
         in the City of London for the transaction of normal banking business,
         other than a Saturday, Sunday or bank or public holiday recognised in
         England;

         "COMPLETION" means completion of the sale and purchase of such of the
         Current Contracts identified in Schedule 1 (Current Contracts) as are
         In-Scope Contracts and the sale and purchase of the IT Equipment from
         the Vendor to BT, each in accordance with Clause 7 (Completion);

         "COMPLETION DATE" means:

         (a)      27 June 2003; or

         (b)      the date of the Business Day on which the last of the
                  Conditions is satisfied or waived by Marconi Corporation plc
                  and CSC International Systems Management Inc.,

         whichever is the later.

         "CONDITIONS" means (1) the filing of any notifications and the granting
         of any consents or approvals from any Governmental Authority which is
         required to authorise within (or otherwise in respect of) the Territory
         the actions contemplated by this Transfer Agreement, the Asset Transfer
         Agreement, and the Master Services Agreement (any such agreement or
         contract being a "RELEVANT AGREEMENT"), (2) the undertaking and
         completion of all necessary consultation required either by the laws of
         any country or by any agreement in force on the date of this Transfer
         Agreement with the employees of the Vendor or any member of the Vendor
         Group or their representatives in any country in relation to the
         proposed engagement or transfer of those employees by or to CSC, and/or
         any associated measures to be taken in relation to those employees, in
         either case within (or otherwise in respect of) the Territory, as
         contemplated by any Relevant Agreement; (3) each BT Local Transfer
         Agreement for the Territory having become unconditional (save for any
         condition that this Transfer Agreement shall have become
         unconditional); and (4) Phase 1 Completion having previously occurred
         in all of the Phase 1 Territories;

         "CONSIDERATION" means the Vendor Equipment Consideration and/or the
         Vendor Contracts Consideration;

         "CONTROL" means the beneficial ownership of more than fifty per cent
         (50%) of the issued share capital with full voting rights of, or the
         legal power to direct or cause the direction of, the general management
         of the company, partnership or other entity in

                                       3
<PAGE>

         question or the holding company of the company, partnership or other
         entity in question, and "CONTROLLED" shall be construed accordingly;

         "CSC GROUP" means all or any of the following from time to time: CSC
         International Systems Management Inc., its subsidiaries and subsidiary
         undertakings and any parent undertaking of CSC International Systems
         Management Inc. and all other subsidiaries and subsidiary undertakings
         of any parent undertaking of CSC International Systems Management Inc,
         and "MEMBER OF THE CSC GROUP" shall be construed accordingly;

         "CSC SERVICE DELIVERY MANAGER" means the person appointed as such by
         CSC International Systems Management Inc from time to time;

         "CURRENT CONTRACTS" means the IT Equipment Contracts, the Maintenance
         Contracts, the Operating System Licences, the Third Party Supply
         Contracts and the Vehicle Leases;

         "DISCLOSURE LETTER" means the disclosure letter together with its
         annexures having the same date as the Asset Transfer Agreement from
         Marconi Corporation plc to CSC International Systems Management Inc, as
         updated by the matters notified to CSC prior to Completion pursuant to
         paragraph 1.3(a) of Schedule 2 (Employment Provisions);

         "EMPLOYEES" means the persons identified in Schedule 3 (Employees);

         "ENCUMBRANCE" means any encumbrance, pledge, charge, mortgage, security
         interest, lien, option, restriction on power of sale, retention of
         title arrangement or hypothecation of any kind;

         "EQUIPMENT" means the IT Equipment and the Network Equipment;

         "EQUIPMENT CONTRACTS" means the IT Equipment Contracts and the Network
         Equipment Contracts;

         "EQUIPMENT COMPLETION" means the completion of the sale by the Vendor
         to CSC of the Equipment as described in Clause 7.1(1);

         "EQUIPMENT COMPLETION DATE" means the date on which Equipment
         Completion occurs;

         "EUROPEAN COUNTRY" means any member state of the European Union at the
         date of this Transfer Agreement;

                                       4
<PAGE>

         "GOVERNMENTAL AUTHORITY" means any nation or government, any state,
         regional, provincial, territorial, local or other political subdivision
         thereof, or any supranational authority and any entity or official
         exercising executive, legislative, judicial, quasi-judicial, regulatory
         or administrative functions of or pertaining to government;

         "GROUP" means in relation to any person (other than the Vendor), all or
         any of the following from time to time: that person, its subsidiaries
         and subsidiary undertakings, any parent undertaking of that person, and
         all other subsidiaries or subsidiary undertakings of any parent
         undertaking of that person, and in the case of Marconi, the Marconi
         Group, and "MEMBER OF THE GROUP OF" any person shall mean any of those
         entities;

         "ICTA" means the Income and Corporation Taxes Act 1988 and any
         regulations made under it;

         "IN-SCOPE CONTRACT" means any Current Contract the costs of which are
         included in the Budget as verified under a True-up Process or included
         in the Charges (as defined in the Master Services Agreement) pursuant
         to a True-up Process, which remains to be fully discharged immediately
         before the Completion Date, and which is not a Retained Contract;

         "IN-SCOPE CONTRACT COMPLETION DATE" has the meaning given to it in
         Clause 3.2 (Transfer of Title);

         "INTELLECTUAL PROPERTY" means any intellectual property rights,
         including patents, utility models, copyrights, moral rights, topography
         rights, database rights, trade secrets and rights of confidence, and
         all embodiments thereof, whether tangible or intangible in all cases
         whether or not registered or registrable in any country, for the full
         term of such rights including any extension to or renewal of the terms
         of such rights and including registrations and applications for
         registration of any of these and rights to apply for the same and all
         rights and forms of protection of a similar nature or having equivalent
         or similar effect to any of these anywhere in the world;

         "INTERNAL IT SERVICES" means all or any of the services referenced in
         Part 1 of Schedule 10 (Internal Services) provided by the Vendor Group
         from its own resources or procured by the Vendor Group from third
         parties and delivered to or used by the Vendor Group at the date of
         this Transfer Agreement at the sites referenced in Part 1 of Schedule
         10 (Internal Services), and which are delivered in or from the
         Territory as of the date of this Transfer Agreement;

                                       5
<PAGE>

         "INTERNAL NETWORK SERVICES" means all or any of the services referenced
         in Part 2 of Schedule 10 (Internal Services) provided by the Vendor
         Group from its own resources or procured by the Vendor Group from third
         parties and delivered to or used by the Vendor Group at the date of
         this Transfer Agreement at the sites referenced in Part 2 of Schedule
         10 (Internal Services), and which are delivered in or from the
         Territory as of the date of this Transfer Agreement;

         "INTERNAL SERVICES" means the Internal IT Services and the Internal
         Network Services;

         "IT EQUIPMENT" means such of the hardware and information technology
         assets and equipment as are located in the Territory and either listed
         in the Vendor Asset Registers or used to provide the Internal IT
         Services, and any Leased IT Equipment title to which is acquired by the
         Vendor (or another member of the Vendor Group) before Equipment
         Completion, excluding (in either such case) the Retained Equipment;

         "IT EQUIPMENT CONTRACTS" means all hire purchase agreements, leasing
         agreements, lease purchase agreements, credit sale agreements and
         agreements for conditional sale or sale by instalments, in each case
         relating to hardware and information technology assets and equipment
         located in the Territory and used for the purposes of the Internal IT
         Services and entered into by a member of the Vendor Group, including
         those agreements listed in Part 1 of Schedule 1 (Current Contracts) and
         such agreements identified as part of a True-up Process;

         "IT SERVICES" means the services referenced in Part 1 of Schedule 10
         (Internal Services) (and for the purposes of this definition all
         references to "the Supplier" in the description of the services
         referenced in Part 1 of Schedule 10 (Internal Services) shall be deemed
         to be references to "CSC");

         "LEASED IT EQUIPMENT" means the hardware and information technology
         assets and equipment that are subject to the IT Equipment Contracts;

         "LEASED NETWORK EQUIPMENT" means the network assets and equipment that
         are subject to the Network Equipment Contracts;

         "LOSS" means any or all loss, damage, cost and expense;

         "MAINTENANCE CONTRACTS" means all agreements for, or parts of
         agreements relating to, the servicing, maintenance, repair or support
         of any of the IT Equipment or the Leased IT Equipment, or of any
         software, entered into by the Vendor (or another

                                       6
<PAGE>

         member of the Vendor Group) for the purpose of the Internal IT
         Services, including those agreements listed in Part 2 of Schedule 1
         (Current Contracts), and any such agreements identified as part of a
         True-up Process;

         "MARCONI CONTRACT MANAGER" means the person appointed as such by
         Marconi Corporation plc and notified to the other Parties from time to
         time;

         "MASTER SERVICES AGREEMENT" has the meaning given in Background (A) and
         any reference in this Transfer Agreement to terms as defined in the
         Master Services Agreement shall be a reference to the Master Services
         Agreement in the form in which it is signed on the date of this
         Transfer Agreement;

         "NETWORK EQUIPMENT" means the network assets and equipment as is
         located in the Territory and either listed in the Vendor Asset
         Registers or used to provide the Internal Network Services, and any
         Leased Network Equipment, title to which is acquired by the Vendor (or
         another member of the Vendor Group) before Equipment Completion,
         excluding (in either such case), the Retained Equipment.

         "NETWORK EQUIPMENT CONTRACTS" means all hire purchase agreements,
         leasing agreements, lease purchase agreements, credit sale agreements
         and agreements for conditional sale or sale by instalments, in each
         case relating to network assets and equipment located in the Territory
         and used for the purposes of the Internal Network Services and entered
         into by a member of the Vendor Group, including those agreements listed
         in Part 1 of Schedule 1 (Current Contracts) of the Italian BT Local
         Transfer Agreement and such agreements identified as part of a True-up
         Process;

         "NETWORK SERVICES" means the services required to be performed under
         the BT Sub-Contract;

         "OPERATING SYSTEMS LICENCES" means all licences of operating system
         software installed or running on the IT Equipment or the Leased IT
         Equipment to which the Vendor (or another member of the Vendor Group)
         is a party (and which in the case of Leased IT Equipment does not form
         part of the relevant IT Equipment Contract), including those licences
         which are listed in Part 5 of Schedule 1 (Current Contracts) and any
         such licences identified during a True-up Process, excluding
         Maintenance Contracts;

         "PARTY" means each of the Vendor and CSC;

         "PHASE 1 COMPLETION" means completion of the sale and purchase of such
         of the contracts listed in Schedule 1 (Current Contracts) to each of
         the Phase 1 Territory

                                       7
<PAGE>

         Transfer Agreements as are In-Scope Contracts (as defined in the
         relevant Phase 1 Territory Transfer Agreement) and of the IT Equipment
         (as defined in the relevant Phase 1 Territory Transfer Agreement)
         located in each of the Phase 1 Territories by the relevant member of
         the Vendor Group to the relevant member of the CSC Group, in each case
         in accordance with Clause 7 (Completion) of the applicable Phase 1
         Transfer Agreement;

         "PHASE 1 LONG STOP DATE" means 1 July 2003;

         "PHASE 1 TERRITORY" means each of the United Kingdom, Ireland and the
         United States of America and Canada;

         "PHASE 1 TERRITORY TRANSFER AGREEMENT" means an agreement entered into
         (or to be entered into) under the Asset Transfer Agreement for the sale
         and purchase of certain assets and/or the transfer of certain
         employees, in (or otherwise relating to) a Phase 1 Territory by one or
         more members of the Vendor Group to one or more members of the CSC
         Group;

         "PHASE 2 LONG STOP DATE" means the date that is twelve (12) weeks after
         Phase 1 Completion;

         "REGULATED ACTIVITIES" shall have the meaning given to it in the Master
         Services Agreement;

         "RETAINED CONTRACT" means any Current Contract which CSC elects not to
         purchase under Clause 8.2(2) (Current Contracts), or which, and only
         then to the extent it, relates to the Retained Equipment;

         "RETAINED EQUIPMENT" means all network, hardware and information
         technology assets and equipment owned by the Vendor and located outside
         the Territory or used exclusively for any purpose other than the
         Internal Services;

         "SERVICES" means the IT Services required to be performed under the
         Master Services Agreement, excluding the Network Services;

         "SOFTWARE LICENCES" means all software licences entered into by the
         Vendor (whether or not for the purposes of the Internal IT Services),
         excluding Operating Systems Licences and Maintenance Contracts;

         "TERRITORY" means Italy;

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<PAGE>

         "TERRITORY TRANSFER AGREEMENT" means an agreement entered into (or to
         be entered into) under the Asset Transfer Agreement for the sale and
         purchase of certain assets and/or the transfer of certain employees, by
         one or more a members of the Vendor Group to one or more members of the
         CSC Group;

         "THIRD PARTY SUPPLY CONTRACTS" means the contracts, engagements and
         orders for the sale or supply to the Vendor Group of goods or services
         entered into by the Vendor (or another member of the Vendor Group) for
         the purpose of the Internal IT Services, including those agreements
         listed in Part 3 of Schedule 1 (Current Contracts) and any such
         agreements identified during a True-up Process, excluding Maintenance
         Contracts;

         "TRANSACTION TAX" means any form of value added tax, stamp duty, sales
         tax, registration tax, fees or surcharges or similar tax or duty levied
         by a Governmental Authority upon the transfer of the Assets in the
         Territory, and shall include any interest or penalty incurred in
         connection with a failure or late payment thereof;

         "TRUE-UP PROCESS" shall have the meaning given to it in the Master
         Services Agreement;

         "VEHICLE LEASES" means all agreements entered into by the Vendor (or
         another member of the Vendor Group) with a third party under which
         either vehicles are leased by the Vendor (or such other member of the
         Vendor Group) for the benefit of any Employees or the Vendor (or such
         other member of the Vendor Group) guarantees an Employee's obligations
         in respect of a leased vehicle, including those agreements listed in
         Part 4 of Schedule 1 (Current Contracts), and any such agreements
         identified as part of a True-up Process;

         "VENDOR" means MCS and MSS, or any of them;

         "VENDOR ASSET REGISTERS" means the registers of network, hardware and
         other information technology assets and equipment owned by the Vendor
         in the Agreed Terms;

         "VENDOR CONTRACTS CONSIDERATION" means the consideration specified in
         Clause 6.2 (Amount of Vendor Contracts Consideration) payable by CSC to
         the Vendor;

         "VENDOR CONTROLLED GROUP" means Marconi Corporation plc and any other
         person which from time to time Controls, is Controlled by, or is under
         common Control with Marconi Corporation plc and "MEMBER OF THE VENDOR
         CONTROLLED GROUP" shall be construed accordingly;

                                       9
<PAGE>

         "VENDOR EQUIPMENT CONSIDERATION" means the consideration specified in
         Clause 6.1 (Amount of Vendor Equipment Consideration) payable by CSC to
         the Vendor;

         "VENDOR GROUP" means all or any of the following from time to time:

         (a)      Marconi Corporation plc;

         (b)      Marconi Corporation plc's wholly-owned subsidiaries and
                  wholly-owned subsidiary undertakings;

         (c)      any parent undertaking of Marconi Corporation plc and all
                  other wholly-owned subsidiaries and wholly-owned subsidiary
                  undertakings of any parent undertaking of Marconi Corporation
                  plc; and

         (d)      Marconi Communications South Africa (pty) Ltd,

         and "MEMBER OF THE VENDOR GROUP" shall be construed accordingly;

         "VENDOR PENSION SCHEME(S)" means the existing Vendor pension scheme(s)
         identified in Schedule 8 (Pensions and Related Benefits); and

         "WARRANTIES" means the warranties set out in Schedule 6 (Warranties).

1.2      INTERPRETATION

         In this Transfer Agreement:

         (a)      unless the context otherwise requires, all references to:

                  (i)      a "CLAUSE" or a "SCHEDULE" or an "APPENDIX" is to a
                           clause of or a schedule to this Transfer Agreement
                           and to a "PART" or a "PARAGRAPH" of a Schedule is to
                           a part or a paragraph of that Schedule;

                  (ii)     the word "INCLUDES" or "INCLUDING" shall be construed
                           without limitation to the generality of the preceding
                           words;

                  (iii)    this "TRANSFER AGREEMENT" includes its Schedules and
                           Appendices and references to this Transfer Agreement
                           as amended from time to time in accordance with its
                           terms (as amended accordingly);

                                       10
<PAGE>

                  (iv)     the "RIGHTS" of any person (including of any Party)
                           shall mean the rights and remedies available to that
                           person under this Transfer Agreement or otherwise;

                  (v)      "INDEMNIFY" means to indemnify and keep indemnified
                           in respect of the Loss in question and, where any tax
                           or other duty is chargeable on or in relation to the
                           Loss or its payment, then such indemnity shall be on
                           an after tax basis;

                  (vi)     a "PERSON" include any individual, firm, corporation,
                           unincorporated association, government, state or
                           agency of state, association, partnership or joint
                           venture (whether or not having a separate legal
                           personality);

                  (vii)    a "COMPANY" include any company, corporation or other
                           body corporate wherever and however incorporated or
                           established;

                  (viii)   a "DOCUMENT" are to that document as varied,
                           supplemented or replaced from time to time;

                  (ix)     "WRITING" shall include any modes of reproducing
                           words in a legible and non-transitory form;

                  (x)      "DOLLARS" or "$" is to the lawful currency of the
                           United States of America as of the Commencement Date;

                  (xi)     "EUROS" or "EUROS" is to the lawful currency of
                           participating member states of the European Monetary
                           Union as of the Commencement Date;

                  (xii)    "STERLING" or "(POUND)" or "POUNDS" is to the lawful
                           currency of the United Kingdom; and

                  (xiii)   a TIME OF THE DAY is to London time and references to
                           a "DAY" are to a period of 24 hours running from
                           midnight to midnight;

         (b)      the headings shall be ignored in construing this Transfer
                  Agreement;

         (c)      unless the context otherwise requires, words or phrases
                  importing the singular shall be interpreted to include the
                  plural and vice versa; and

         (d)      unless the context otherwise requires, a statute or statutory
                  provision is a reference to the statute or statutory provision
                  in force in England and Wales

                                       11
<PAGE>

                  and includes any consolidation or re-enactment, modification
                  or replacement of it, any statute or statutory provision of
                  which it is a consolidation, re-enactment, modification or
                  replacement and any sub-ordinate legislation in force under
                  any of the same from time to time, but without in any case
                  increasing the liability of any Party under or in connection
                  with this Transfer Agreement.

1.3      COMPANIES ACT DEFINITIONS

         In this Transfer Agreement, unless the context otherwise requires,
         words and expressions defined in the Companies Act 1985 shall bear the
         meaning ascribed to them in that Act to the exclusion of any definition
         of the same words or expression in any other Legislation (as defined in
         the Master Services Agreement).

1.4      DELIVERY OF INTERNAL SERVICES

         Where it falls to be determined where any Internal Services are
         delivered, no account shall be taken of any Internal Services delivered
         to any person by reason only of that person being temporarily located
         in a particular country.

1.5      NO LIABILITY

(1)      No Party shall be liable for a breach of this Transfer Agreement by any
         other Party save as expressly provided to the contrary in this Transfer
         Agreement.

2.       SALE OF EQUIPMENT TO CSC

2.1      EQUIPMENT BEING SOLD TO CSC

(1)      Subject to the terms of this Transfer Agreement, the Vendor shall (or
         shall procure that another member of the Vendor Group shall) sell and
         CSC shall purchase the Equipment.

(2)      The Retained Equipment is excluded from the sale and purchase to which
         Clause 2.1(1) refers.

2.2      TRANSFER OF TITLE OF EQUIPMENT TO CSC

         Legal and equitable title to, and risk in, the Equipment shall pass by
         delivery to CSC on Equipment Completion.

                                       12
<PAGE>

3.       SALE OF IN-SCOPE CONTRACTS TO CSC

3.1      IN-SCOPE CONTRACTS BEING SOLD

(1)      Subject to the terms of this Transfer Agreement, the Vendor shall (or
         shall procure that another member of the Vendor group shall) sell and
         CSC shall (or shall procure that another member of the CSC Group shall)
         purchase, subject to any necessary consent of a third party, the
         benefit (subject to the burden) of the In-Scope Contracts.

(2)      The following shall be excluded from the sale and purchase to which
         Clause 3.1(1) refers:

         (a)      the Retained Contracts; and

         (b)      all Software Licences.

3.2      TRANSFER OF TITLE

(1)      Subject to Clause 3.2(2) and to obtaining any necessary consent of a
         third party, legal and equitable title to, and risk in the In-Scope
         Contracts:

         (a)      identified in Schedule 1 (Current Contracts) shall pass to CSC
                  (or to such other member of the CSC Group as CSC may nominate)
                  on the Completion Date; and

         (b)      identified during any True-up Process shall pass to CSC (or to
                  such other member of the CSC Group as CSC may nominate) on the
                  later of the Completion Date or the date falling five (5)
                  Business Days after the relevant contract is so identified.

(2)      Where any In-Scope Contract under this Transfer Agreement also
         comprises an "In-Scope Contract" under any other Territory Transfer
         Agreement, and subject to obtaining any necessary consent of a third
         party, legal and equitable title to and risk in such In-Scope Contract:

         (a)      identified in Schedule 1 (Current Contracts) shall pass to CSC
                  (or such other member of the CSC Group as CSC may nominate) on
                  the date (the "FINAL COMPLETION DATE") on which the last
                  Completion occurs under this Transfer Agreement and any other
                  Territory Transfer Agreement under which the In-Scope Contract
                  in question is also an In-Scope Contract (and for these
                  purposes, such reference "Completion" shall have the meaning
                  given to it in the relevant Transfer Agreement or other
                  Territory Transfer Agreement); and

                                       13
<PAGE>

         (b)      identified during any True-up Process shall pass to CSC (or
                  such other member of the CSC Group as CSC may nominate) on the
                  occurrence of the Final Completion Date or the date falling
                  five (5) Business Days after the relevant contract is so
                  identified, whichever is the later.

(3)      The relevant date on which title to a particular In-Scope Contract
         passes (or would pass as set out in (Clauses 3.2(1) or 3.2(2), but for
         the need to obtain any necessary consent of a third party) in each case
         being the "IN-SCOPE CONTRACT COMPLETION DATE" in relation to that
         In-Scope Contract.

4.       TERMINATION

4.1      TERMINATION

         This Transfer Agreement shall terminate with immediate effect on the
         earlier of the following:

         (a)      termination of the Asset Transfer Agreement either in its
                  entirety or in relation to the Territory; or

         (b)      if all of the Conditions have not been satisfied or waived by
                  Marconi Corporation plc and CSC International Systems
                  Management Inc on or before the Phase 2 Long Stop Date, on the
                  Phase 2 Long Stop Date,

         except that this Transfer Agreement shall not so terminate where
         Completion has already occurred.

4.2      CONSEQUENCES OF TERMINATION

(1)      Subject to Clauses 4.2(2) to (4), termination of this Transfer
         Agreement shall not affect the rights of the Parties which have accrued
         before termination.

(2)      Where this Transfer Agreement terminates under Clause 4.1
         (Termination), CSC shall not have any claim for breach of any of the
         Warranties and all (if any) liability of the Vendor in respect of any
         such breach shall be entirely discharged.

(3)      Where this Transfer Agreement terminates on or after Completion, the
         provisions of the Master Services Agreement shall apply in relation to
         any disposition of the IT Equipment by CSC to the Vendor.

(4)      For the avoidance of doubt, nothing in this Clause 4.2 shall preclude
         the Vendor from including in any claims for damages (on the grounds of
         wasted expenditure or

                                       14
<PAGE>

         otherwise) amounts in respect of Charges for Transition Services paid
         by the Vendor on or before the date of termination of this Transfer
         Agreement and the rights and remedies contained in this Clause 4.2 are
         cumulative and are not exclusive of any rights or remedies provided by
         law or otherwise.

5.       CONDITIONS

5.1      CONDITIONS

(1)      Until all of the Conditions to be satisfied in the Territory are
         satisfied or are waived by Marconi Corporation plc and CSC
         International Management Systems Inc:

         (a)      neither the Vendor nor CSC shall be obliged to sell, purchase
                  or pay for, or to procure the sale, purchase of or payment
                  for, the Equipment in accordance with Clause 2 (Sale of
                  Equipment to CSC); and

         (b)      neither the Vendor nor CSC shall be obliged to sell, purchase
                  or pay for, or to procure the sale, purchase of or payment
                  for, the In-Scope Contracts in accordance with Clause 3 (Sale
                  of In-Scope Contracts to CSC).

5.2      WARRANTIES

(1)      Until Completion has occurred, CSC shall not have any claim for breach
         of any of the Warranties.

(2)      Once Completion has occurred, nothing in Clause 5.2(1) shall thereafter
         affect any claim of CSC for breach of any of the Warranties (which it
         would otherwise have), including with respect to any Loss otherwise
         recoverable under this Transfer Agreement which may have been incurred
         before Completion.

6.       CONSIDERATION

6.1      AMOUNT OF VENDOR EQUIPMENT CONSIDERATION

         The consideration payable to the Vendor for the sale of the Equipment
         under this Transfer Agreement (the "VENDOR EQUIPMENT CONSIDERATION")
         shall be the sum of (pound)[***] which shall be satisfied by CSC in
         cash on Equipment Completion.

6.2      AMOUNT OF THE VENDOR CONTRACT CONSIDERATION

         The consideration payable to the Vendor for the sale of the In-Scope
         Contracts under this Transfer Agreement (the "VENDOR CONTRACTS
         CONSIDERATION") shall be the sum of (pound)[***], which shall be
         satisfied by CSC in cash on Completion.

                                       15
<PAGE>

6.3      APPORTIONMENT

         The Consideration shall be apportioned between the various classes of
         Assets as set out in Schedule 4 (Apportionment of Consideration) and as
         so apportioned shall be adopted by the Parties for all purposes
         including tax and stamp duty.

6.4      TRANSACTION TAXES

(1)      Subject to Clause 6.4(2), the Vendor Equipment Consideration and the
         Vendor Contracts Consideration are expressed (as between the Parties)
         to be exclusive of any Transaction Taxes, which shall be for the
         account of the payer of the Consideration in question.

(2)      Notwithstanding Clause 6.4(1), to the extent that CSC incurs
         registration tax on (or otherwise in respect thereof) the Vendor
         Contracts Consideration or the Vendor Equipment Consideration, that tax
         shall be for the account of the Vendor;

(3)      Where a Party is liable to another in respect of Transaction Taxes (or
         required to bear such taxes for which another Party is liable to the
         relevant Governmental Authority) pursuant to this Clause 6.4 or Clause
         4.2(4), it shall pay those Transaction Taxes not less than three (3)
         Business Days before the date on which the relevant other Party is
         required to account to a Governmental Authority or to another Party for
         the Transaction Taxes in question or, if later, once it has received a
         valid VAT, sales tax or comparable invoice for them from the relevant
         other Party.

(4)      The Parties undertake to consult and to co-operate with each other to
         take, so far as is reasonable, such actions as may be required to
         optimise their taxation position and their position as regards legal
         and regulatory compliance, arising from this Transfer Agreement.

(5)      Each of the Vendor and CSC warrants and undertakes to each other that:

         (a)      it is and shall continue to be for all purposes under this
                  Transfer Agreement tax resident and registered for VAT in the
                  Territory; and

         (b)      subject to Clause 6.6 (Invoicing and Method of Payment), all
                  sales and payments to be made by it (or which it is obliged to
                  procure) pursuant to this Transfer Agreement shall be made
                  from the Territory.

                                       16
<PAGE>

6.5      TAX FILINGS & AUDITS

(1)      Prior to lodging any tax filing that could reasonably be expected to
         give rise to registration tax payable by the Vendor under Clause 6.4(2)
         ("RELEVANT TAX FILING"), CSC shall consult with the Vendor and consider
         any reasonable position proposed by the Vendor with respect to that
         part of the Relevant Tax Filing which relates to or could reasonably be
         expected to affect the Vendor's liability under Clause 6.4(2), with a
         view to optimising the taxation position of both of the Parties.

(2)      CSC shall promptly notify the Vendor upon becoming aware that a tax
         audit, examination, contest or other tax proceeding is or may be
         carried out by any Governmental Authority which relates to or could
         reasonably be expected to affect the Vendor's liability under Clause
         6.4(2) ("RELEVANT TAX PROCEEDINGS"). The Vendor shall have the right to
         participate at its own expense in any Relevant Tax Proceedings
         (including without limitation by participating in any discussions or
         negotiations between CSC and the Governmental Authority) and CSC agrees
         to consult with the Vendor and keep the Vendor fully informed of all
         material matters relating to the conduct thereof and to promptly
         provide the Vendor with all material correspondence relating thereto.
         CSC shall not make any settlement of any Relevant Tax Proceedings which
         could affect the Vendor's liability under Clause 6.4(2) without the
         consent of the Vendor, such consent not to be unreasonably withheld or
         delayed.

6.6      INVOICING AND METHOD OF PAYMENT

(1)      Each Party which is to receive a payment under this Transfer Agreement
         shall, before such payment is made or (where this is not practicable)
         as soon as practicable thereafter, deliver to the payer a valid VAT,
         sales tax or comparable invoice therefor.

(2)      The Parties acknowledge that each payment of Vendor Equipment
         Consideration and Vendor Contracts Consideration to be made under this
         Transfer Agreement shall be made on its behalf in accordance with the
         Asset Transfer Agreement.

7.       COMPLETION

7.1      COMPLETION

(1)      Equipment Completion shall take place on the Completion Date.

(2)      Subject to obtaining any necessary consent of a third party, completion
         of the sale and purchase of the In-Scope Contracts identified in
         Schedule 1 (Current Contracts) shall occur on the Completion Date.

                                       17
<PAGE>

7.2      COMPLETION ARRANGEMENTS

         At Equipment Completion and on each In-Scope Contract Completion Date,
         each Party shall do those things for which it has responsibility in
         relation to the Asset in question as are listed in Schedule 5
         (Completion Arrangements).

8.       PERIOD TO COMPLETION

8.1      VENDOR OBLIGATIONS IN RESPECT OF THE IT EQUIPMENT AND THE LEASED IT
         EQUIPMENT

         The Vendor undertakes to CSC to procure that during the period
         commencing on the date of this Transfer Agreement and ending on
         Completion:

         (a)      so far as is necessary for the provision of the Services, the
                  IT Equipment and the Leased IT Equipment is maintained,
                  repaired and serviced so as to ensure it is maintained in the
                  same condition as the IT Equipment is in at the date of this
                  Transfer Agreement, fair wear and tear excepted;

         (b)      so far as is necessary for the provision of the Services,
                  (subject to CSC's consent, not to be unreasonably withheld)
                  items of IT Equipment and Leased IT Equipment are replaced
                  where those items have been lost or damaged beyond economic
                  repair, and in these circumstances the replacement item, if
                  owned by the Vendor or a member of the Vendor Group, shall be
                  entered in the Vendor Asset Register and in any other case the
                  agreement relevant to the replacement item shall be included
                  in Part 1 of Schedule 1 (Current Contracts), both of which
                  shall be amended accordingly; and

         (c)      the IT Equipment and the Leased IT Equipment is insured
                  against all the usual risks with a reputable insurance company
                  for the full replacement value of the IT Equipment and the
                  Leased IT Equipment and that the interest of CSC is noted upon
                  any policy of insurance and a copy thereof supplied to CSC.

8.2      CURRENT CONTRACTS

(1)      Where any In-Scope Contract is renewed or any new contract or
         arrangement relating to any Internal IT Services is entered into by any
         member of the Vendor Group whilst those Internal IT Services are being
         provided by the Vendor Group, the relevant Part of Schedule 1 (Current
         Contracts) shall be amended by including reference to any such renewed
         or new contract or arrangement, as the case may be.

                                       18
<PAGE>

(2)      If once the terms of any Current Contract (which but for the exercise
         of CSC's rights under this Clause 8.2(2) would constitute an In-Scope
         Contract) have been disclosed to CSC, CSC is of the reasonable opinion
         that either:

         (a)      any of the non-financial terms of that Current Contract are
                  other than reasonably consistent with conventional practice
                  for agreements of the kind in question (including, without
                  limitation, by virtue of that Current Contract containing any
                  limitation of liability which is unreasonably low or
                  containing a provision which materially restricts the conduct
                  of the business of any member of the CSC Group other than
                  directly in respect of the provision of services under the
                  Master Services Agreement); or

         (b)      to comply with any of the terms of that Current Contract would
                  place CSC in breach of any Applicable Legislation, any third
                  party rights or any contract it may have with a third party,

         then CSC may within five (5) Business Days of such disclosure elect by
         notice in writing to the Vendor not to purchase that Current Contract.

(3)      Notwithstanding Clause 9 (In Scope Contracts), CSC shall not be liable
         to perform any obligations under any In-Scope Contract unless and until
         the terms of such obligations have been disclosed to CSC in all
         material respects.

(4)      Any Current Contract shall cease to be subject to this Clause 8.2 if
         CSC elects not to purchase it under Clause 8.2(2).

9.       IN-SCOPE CONTRACTS

9.1      SEEKING CONSENTS TO SUBSTITUTION

         The Vendor shall after execution of this Transfer Agreement use
         reasonable endeavours to procure that the other parties to the In-Scope
         Contracts shall, where that consent is necessary, consent in the Agreed
         Terms:

         (a)      to the substitution of CSC (or such member of the CSC Group as
                  CSC may nominate) in the place of the relevant member of the
                  Vendor Group as a party to the relevant In-Scope Contract; and

         (b)      to any continuing use of the subject matter of the In-Scope
                  Contracts where the use is required (after the substitution)
                  to enable the Vendor Group effectively to receive the benefit
                  of the Services,

                                       19
<PAGE>

         in each case with effect from the relevant In-Scope Contract Completion
         Date. CSC shall provide such assistance as the Vendor may reasonably
         require in procuring those consents.

9.2      PERFORMANCE AND ENJOYMENT OF IN-SCOPE CONTRACTS

(1)      In any case where the consent referred to in Clause 9.1 (Seeking
         consents to substitution) is required but shall be refused or otherwise
         not obtained, then, the following shall apply in respect of the
         relevant In-Scope Contract with effect from the In-Scope Contract
         Completion Date applicable to the In-Scope Contract in question until
         such consent shall be obtained and subject to Clause 9.2(2):

         (a)      the Vendor shall hold the In-Scope Contract and any monies,
                  goods or other benefits received under the In-Scope Contracts
                  on trust for CSC (or for such member of the CSC Group as CSC
                  may nominate) and shall, immediately upon receipt of the same,
                  account for and pay to CSC (or its nominee) all those monies,
                  goods and other benefits;

         (b)      CSC (or such member of the CSC Group as CSC may nominate)
                  shall (if sub-contracting or agency is not precluded under the
                  relevant In-Scope Contract) as sub-contractor or agent for the
                  Vendor perform on behalf of the Vendor (but at CSC's or its
                  nominee's expense) all the obligations of the Vendor arising
                  under the relevant In-Scope Contract after the In-Scope
                  Contract Completion Date applicable to that In-Scope Contract;

         (c)      where sub-contracting and agency are precluded under the
                  In-Scope Contract, the Vendor shall continue to be the Party
                  responsible to perform and discharge the In-Scope Contract but
                  in so doing shall act only in accordance with the directions
                  of CSC (or for such member of the CSC Group as CSC may
                  nominate) and CSC shall procure that the Vendor is provided
                  with all reasonable facilities and assistance to enable the
                  Vendor to perform, operate, monitor and discharge the In-Scope
                  Contract.

9.3      (2)      [***][***]SET-OFFS AND COUNTERCLAIMS

         If any person making payment of any sum pursuant to an In-Scope
         Contract after the In-Scope Contract Completion Date (the benefit of
         which payment in each case is in accordance with the terms of this
         Transfer Agreement to accrue to CSC or its nominee), shall claim any
         right of set-off or counterclaim in respect of any act or thing done or
         omitted to be done by the Vendor or a member of the Vendor Group prior
         to the In-Scope Contract Completion Date, the Vendor shall immediately

                                       20
<PAGE>

         account to CSC or as it may direct, for an amount equal to the
         difference between the payment which would have been received had no
         such right of set-off or counterclaim been exercised or claimed and the
         payment actually received.

9.4      PERFORMANCE OF IN-SCOPE CONTRACTS

(1)      CSC undertakes that it will (or shall procure that another member of
         the CSC Group will), at its own cost, carry out and complete for its
         own account the In-Scope Contracts to the extent that they have not
         been fully performed before the In-Scope Contract Completion Date.

(2)      CSC shall indemnify (or, as appropriate, shall procure that CSC's
         nominee under Clause 9.2(1)(b) shall indemnify) the Vendor against or
         reimburse the Vendor for any payment required to be made or other
         liability incurred by the Vendor under or in relation to each In-Scope
         Contract in respect of the period after the In-Scope Contract
         Completion Date applicable to that In-Scope Contract, except to the
         extent that the payment or liability shall arise wholly or partly as a
         result of the failure by the Vendor duly to perform and comply with the
         terms of the In-Scope Contract on or prior to the applicable In-Scope
         Contract Completion Date;

(3)      The Vendor shall:

         (a)      continue to be responsible for, and shall duly and promptly
                  pay and discharge all debts, liabilities and obligations
                  outstanding under or in relation to the In-Scope Contracts as
                  at the applicable In-Scope Contract Completion Date and which
                  relate to the period ending on the applicable In-Scope
                  Contract Completion Date or arising by reason of any act or
                  omission by the Vendor or any other member of the Vendor Group
                  on or prior to the applicable In-Scope Contract Completion
                  Date; and

         (b)      indemnify CSC against any payment required to be made and any
                  and all other liability CSC or any members of the CSC Group
                  may incur under in connection with the In-Scope Contract on or
                  in respect of the period prior to the applicable In-Scope
                  Contract Completion Date.

9.5      NO ASSIGNMENT OF NON-ASSIGNABLE CONTRACTS

         Neither this Transfer Agreement nor any action carried out in pursuance
         of it shall constitute an assignment or attempted assignment or
         declaration of trust of any In-Scope Contract or the benefit thereof
         which is not assignable or which cannot be made without the consent of
         another person if that assignment or attempted

                                       21
<PAGE>

         assignment or declaration would constitute a breach of that In-Scope
         Contract or an infringement of Intellectual Property, except to the
         extent that the consent is obtained.

10.      EMPLOYEES

         The provisions of Schedule 2 (Employment Provisions) shall apply with
         regard to the Employees.

11.      PENSIONS AND RELATED BENEFITS

         The provisions of Schedule 8 (Pensions and Related Benefits) shall
         apply with regard to the pensions and related benefits of the
         Employees.

12.      WARRANTIES

12.1     WARRANTIES

         The Vendor warrants to CSC that the Warranties are true, accurate and
         not misleading as at the date of this Transfer Agreement.

12.2     LIMITATIONS ON CLAIMS

         The liability of the Vendor under the Warranties or any other provision
         of this Transfer Agreement shall (except in the case of fraud) be
         limited as set out in Schedule 7 (Limitations on Claims). The rights
         and remedies of CSC in respect of any breach of Warranty by the Vendor
         shall not be affected by (i) completion of the purchase of the Assets;
         or (ii) by any investigation or inquiry made or to be made by or on
         behalf of CSC following the date of this Transfer Agreement.

12.3     STATUS OF WARRANTIES

         CSC acknowledges that in entering into this Transfer Agreement and each
         of the other documents referred to herein it has not relied on any
         other statement, representation, act, fact, circumstance or warranty
         save and except for the Warranties and neither CSC nor any member of
         the CSC Group shall, save in the case of fraud or fraudulent
         misrepresentation, have any right of recovery or remedy in respect of a
         breach of the Warranties or of Clause 12.6 (Mutual Representations)
         save as expressly provided in this Transfer Agreement or the Asset
         Transfer Agreement.

12.4     NO RIGHT OF A PARTY TO RESCIND

         The sole remedy of CSC for breach by the Vendor of the Warranties and
         the sole remedy of each Party for a breach by any other Party of Clause
         12.6 (Mutual

                                       22
<PAGE>

         Representations) shall be damages and each Party acknowledges that it
         shall have no right to rescind this Transfer Agreement in any
         circumstances and irrevocably waives any other remedies it may have in
         relation to a breach by any other Party of the Warranties or Clause
         12.6 (Mutual Representations) provided that nothing in this Clause
         shall operate to exclude any Party's liability for fraudulent
         misrepresentation.

12.5     MEANING OF "SO FAR AS THE VENDOR IS AWARE"

         If any of the Warranties are expressed to be given "so far as the
         Vendor is aware" or "to the best of the knowledge information and
         belief of the Vendor", or words to that effect, then such expression
         shall be deemed to include an additional statement to the effect that
         the relevant Warranty has been made after reasonable enquiries.

12.6     MUTUAL REPRESENTATIONS

         Each Party represents to each other Party that it has full power and
         authority to execute, deliver and perform its obligations under this
         Transfer Agreement and that there are no existing agreements or
         arrangements with third parties, the terms of which prevent such Party
         from entering into or performing its obligations under this Transfer
         Agreement.

12.7     WAIVER OF RIGHTS

         The Vendor agrees with CSC to waive any rights or claims which it may
         have in respect of any misrepresentation, inaccuracy or omission in, or
         from, any information or advice supplied or given by any of the
         Employees on which the Vendor or a member of the Vendor Group may have
         relied in connection with the giving of the Warranties and the
         preparation of the Disclosure Letter.

12.8     EXCLUSION OF IMPLIED TERMS

         All warranties, conditions, or terms not set out in this Agreement and
         which would otherwise be implied or incorporated into this Agreement by
         reason of statute, common law or otherwise (other than as to the title
         to goods) are hereby excluded, except to the extent they may not be
         excluded or limited by law.

13.      ASSIGNMENT AND THIRD PARTY RIGHTS

13.1     ASSIGNMENT

         (a)      Either CSC or the Vendor may assign all or any of its rights
                  or transfer all or any of its rights, obligations and
                  liabilities under this Transfer Agreement to

                                       23
<PAGE>

                  any member of its Group which is, for all purposes under this
                  Transfer Agreement, tax resident and registered for VAT in the
                  Territory (provided that if any such assignee or transferee
                  ceases at any time to be a member of the relevant Group or so
                  resident or so registered for VAT it shall, at the request of
                  the Vendor (in the case of an assignment by CSC) or CSC (in
                  the case of an assignment by the Vendor), immediately reassign
                  and re-transfer all such rights, obligations and liabilities
                  to a remaining member of the Group which is so resident and so
                  registered for VAT), and the Vendor (in the case of an
                  assignment by CSC) or CSC (in the case of an assignment by the
                  Vendor) consents to such an assignment or transfer and will
                  execute all deeds or other documents, and do all such acts as
                  the assigning Party may reasonably require in order to give
                  effect to such assignment or transfer. Any such assignment or
                  transfer shall not affect the assigning or transferring
                  Party's outstanding obligations or liabilities under this
                  Transfer Agreement for which it shall continue to remain
                  liable in the event the Party receiving the assignment of the
                  relevant rights, obligations and liabilities should fail to
                  meet their obligations or liabilities in relation thereto.

         (b)      Except as permitted under Clause 13.1(a), neither CSC nor the
                  Vendor may assign or transfer any of its rights, obligations
                  or liabilities under this Transfer Agreement without the prior
                  written consent of the other, such consent not to be
                  unreasonably withheld.

         (c)      Following any permitted assignment or transfer under Clause
                  13.1(a), any reference in this Transfer Agreement to the
                  Vendor or CSC (as the case may be) shall, where the context
                  allows, include a reference to the assignee or transferee (as
                  the case may be). Any permitted assignee or transferee shall
                  be treated for all purposes as if it had been an original
                  Party to (and been granted the relevant rights under) this
                  Transfer Agreement.

13.2     NO RIGHTS OF THIRD PARTIES

         The Parties do not intend any provision of this Transfer Agreement to
         be enforceable pursuant to the Contracts (Rights of Third Parties) Act
         1999.

14.      ENTIRE AGREEMENT

14.1     ENTIRE AGREEMENT

         This Transfer Agreement, the Asset Transfer Agreement and the Master
         Services Agreement, together represent the entire agreement between the
         Parties in relation to

                                       24
<PAGE>

         the sale and purchase of the Assets and supersede any previous
         agreement, whether written or oral, between the Parties in relation to
         that subject matter.

14.2     NO LIABILITY UNLESS STATEMENT MADE FRAUDULENTLY

         No Party shall have any liability in respect of any misrepresentation
         or other statement (apart from the Warranties and the representation
         and warranty contained in Clause 12.6 (Mutual Representations)) being
         false, inaccurate and/or incomplete unless it was made fraudulently.

15.      NOTICES

15.1     NOTICES

         All notices and other communications relating to this Transfer
         Agreement:

         (a)      shall be in English and in writing;

         (b)      shall be delivered by hand or sent by post or facsimile;

         (c)      shall be delivered or sent to the Party concerned at the
                  relevant address or number, as appropriate, and marked all as
                  shown in Clause 15.2 (Initial details) (subject to such
                  amendments as may be notified from time to time in accordance
                  with this Clause by the relevant Party to the other Parties);

         (d)      may in the case of any claim form, judgment or other notice of
                  process on any Party be delivered or sent to their respective
                  registered offices from time to time; and

         (e)      shall take effect:

                  (i)      if delivered, upon delivery;

                  (ii)     if posted, at the earlier of the time of delivery and
                           (if posted in the United Kingdom by first class
                           registered post) 10 am on the second Business Day
                           after posting; or

                  (iii)    if sent by facsimile, when a complete and legible
                           copy of the communication, whether that sent by
                           facsimile or a hard copy sent by post or delivered by
                           hand, has been received at the appropriate address,

                                       25
<PAGE>

         provided that if any communication would otherwise become effective on
         a non-Business Day or after 5 pm on a Business Day, it shall instead
         become effective at 10 am on the next Business Day.

15.2     INITIAL DETAILS

         The initial details for the purposes of Clause 15.1 (Notices) are:

         PARTY:                 THE VENDOR

         Address:               Marconi Communications S.p.A.
                                Via Ludovico
                                Calda 5,
                                16153 Genoa,
                                Italy
         Facsimile No:          +39 010 60 11 733
         Marked for
         the Attention of:      Anna Calcagno

         With a copy to:        Senior Vice President-Information Technology
         Address:               1000 Marconi Drive
                                Warrendale, Pennsylvania
                                USA, 15086
         Facsimile No:          +1 724 742 7055

         PARTY:                 CSC

         Address:               CSC Computer Sciences Italia S.p.A
                                Via Varesina 76
                                20156 Milan, Italy
         Facsimile No:          +39 02 3341 2431
         Marked for
         the Attention of:      Chief Executive

         With a copy to:        H. Dan Fisk, Esq.
         Facsimile No:          +1 310 322 9767

16.      AMENDMENTS AND WAIVERS

16.1     AMENDMENTS TO BE IN WRITING

         No amendment or variation of the terms of this Transfer Agreement shall
         be effective unless it is made or confirmed in a written document
         signed by all the Parties provided that the agreement of CSC to any
         such amendment or variation shall not be unreasonably withheld or
         delayed.

                                       26
<PAGE>

16.2     WAIVERS

         No delay in exercising or non-exercise by any Party of any of its
         rights under or in connection with this Transfer Agreement shall
         operate as a waiver or release of that right. Rather, any such waiver
         or release must be specifically granted in writing signed by the Party
         granting it.

17.      SEVERABILITY

         If any part of any provision of this Transfer Agreement shall be
         illegal, invalid or unenforceable in any respect, then the remainder of
         such provision and all other provisions of this Transfer Agreement
         shall remain valid and enforceable, and the remaining rights,
         obligations and liability of the Parties under this Transfer Agreement
         shall not be affected or impaired.

18.      COSTS

         Except where this Transfer Agreement provides otherwise, each Party
         shall be responsible for all the costs, charges and expenses incurred
         by it in connection with and incidental to the preparation and
         completion of this Transfer Agreement, the other documents referred to
         in this Transfer Agreement and the sale and purchase under this
         Transfer Agreement.

19.      CONTINUING EFFECT

         Each provision of this Transfer Agreement shall continue in full force
         and effect after Completion, except to the extent that a provision has
         been fully performed on or before Completion.

20.      COUNTERPARTS

20.1     ANY NUMBER OF COUNTERPARTS

         This Transfer Agreement may be executed in any number of counterparts,
         and by the Parties on separate counterparts, but shall not be effective
         until all Parties have executed at least one counterpart.

20.2     EACH COUNTERPART AN ORIGINAL

         Each counterpart shall constitute an original of this Transfer
         Agreement, but all the counterparts shall together constitute but one
         and the same instrument.

                                       27
<PAGE>

21.      ANNOUNCEMENTS AND CONFIDENTIALITY

21.1     NO ANNOUNCEMENTS WITHOUT PRIOR APPROVAL

         Subject to Clause 21.2 (Announcement exceptions), the Parties mutually
         agree that no press or other public announcements (whether to
         shareholders, employees, customers, suppliers or otherwise) shall be
         made or sent out by them in respect of the subject matter of this
         Transfer Agreement or any ancillary matter without the text of the
         announcement receiving the prior written approval of all of the Parties
         (that approval not to be unreasonably withheld or delayed).

21.2     ANNOUNCEMENT EXCEPTIONS

         Any Party may make or send out any press or public announcement to the
         extent the announcement is:

         (a)      required by the law of any relevant jurisdiction;

         (b)      required by any securities exchange or regulatory or
                  Governmental Authority to which any Party is subject or
                  submits, wherever situated, including NASDAQ, the Securities
                  and Exchange Commission of the United States of America, the
                  London Stock Exchange, the UK Listing Authority or the
                  Takeovers and Mergers Panel, whether or not the requirement
                  for information has the force of law,

         in which case, the announcement shall only be made or sent out after
         consultation with (and after taking into account the reasonable
         requirements of) the other Parties as to the content of the
         announcement.

21.3     CONFIDENTIALITY

         Subject to Clause 21.1 (No announcements without prior approval), each
         Party shall treat as strictly confidential all information received or
         obtained as a result of entering into or performing this Transfer
         Agreement which relates to:

         (a)      the provisions of this Transfer Agreement or the other
                  documents referred to in this Transfer Agreement;

         (b)      the negotiations relating to this Transfer Agreement; or

         (c)      the other Parties.

                                       28
<PAGE>

21.4     CONFIDENTIALITY EXCEPTIONS

         Any of the Parties may disclose information referred to in Clause 21.3
         (Confidentiality) which would otherwise be confidential if and to the
         extent the disclosure is:

         (a)      required by the law of any relevant jurisdiction;

         (b)      required by any securities exchange or regulatory or
                  Governmental Authority to which any Party is subject or
                  submits, wherever situated, including NASDAQ, the Securities
                  and Exchange Commission of the United States of America, the
                  London Stock Exchange, the UK Listing Authority or the
                  Takeovers and Mergers Panel, whether or not the requirement
                  for disclosure has the force of law;

         (c)      required to vest in that Party the full benefit of this
                  Transfer Agreement in any of the parties;

         (d)      disclosed to the professional advisers, auditors or bankers of
                  that Party or any other member of its Group;

         (e)      disclosed to the officers or employees of that Party or any
                  other member of its Group who need to know the information for
                  the purposes of the transactions effected or contemplated by
                  this Transfer Agreement subject to the condition that the
                  Party making the disclosure shall procure that those persons
                  comply with Clause 21.3 (Confidentiality) as if they were
                  parties to this Transfer Agreement;

         (f)      of information that has already come into the public domain
                  through no fault of that Party;

         (g)      of information of the kind referred to in Clause 21.2(b)
                  (Confidentiality) which is already lawfully in the possession
                  of that Party (and not subject to any obligation of
                  confidentiality owed to any other Party) as evidenced by its
                  or its professional advisers' written records; or

         (h)      approved by the Parties having given prior written approval to
                  the disclosure,

         provided that any information disclosed pursuant to paragraph (a) or
         (b) of this Clause 21.4 shall be disclosed only after notice to the
         other Parties and the disclosing Party shall take reasonable steps to
         co-operate with the other Parties regarding the manner of that
         disclosure.

                                       29
<PAGE>

21.5     NO LIMIT IN TIME

         The restrictions contained in this Clause 21 (Announcements and
         Confidentiality) shall continue to apply without limit in time.

22.      DISPUTE RESOLUTION

22.1     Any question or difference which may arise concerning the construction,
         meaning, effect or operation of this Transfer Agreement or any matter
         arising out of or in connection with this Transfer Agreement shall in
         the first instance be referred to the CSC Service Delivery Manager and
         the Marconi Contract Manager.

22.2     If the matter is not resolved within ten (10) Business Days of it being
         referred to the managers referred to in Clause 22.1 the matter shall be
         referred to the next level of the Vendor's and CSC's management in
         accordance with the hierarchy set forth in Clause 22.3 who must meet
         within ten (10) Business Days or such other period as the Parties may
         agree to attempt to resolve the matter. If the matter is not resolved
         at that meeting, the escalation shall continue with the same maximum
         time interval through one more level of management. If the unresolved
         matter is having a serious effect on the Services, the Parties shall
         use every reasonable endeavour to reduce the elapsed time in completing
         the process.

22.3     The levels of escalation are:

<TABLE>
<CAPTION>
                        CSC                             THE VENDOR
         <S>            <C>                             <C>
         First Level    CSC Service Delivery Manager    Marconi Contract Manager
         Second Level   Account Executive               Senior Vice  President -
                                                        Information Technology
         Third Level    President UK Division           Chief Operating Officer
</TABLE>

         If any of the above are unable to attend a meeting, a substitute may
         attend provided that such substitute has at least the same seniority
         and is authorised to settle the unresolved matter.

22.4     If the matter is not resolved at or before the Third Level then the
         matter shall be submitted to mediation by CEDR within 14 days of any
         Party giving written notice to the others of that Party's wish to refer
         the matter to mediation by CEDR provided that such notice shall only be
         given while the matter remains unresolved by the escalation process and
         shall be given no later than the date 14 days after the date of the
         meeting

                                       30
<PAGE>

         of the Third Level of management. The representative of the Party
         giving such notice, at the escalation level at which such notice is
         given, shall (except where such notice is given at the Third Level)
         promptly notify that Party's representative at the next level, in order
         of ascent, that such notice has been given. The costs of the mediator
         shall be shared equally between the Parties (each Party bearing its own
         other costs). Where a matter is submitted to mediation as envisaged by
         this Clause 23.4, the provisions or requirements of this Clause 22
         (Dispute Resolution) shall not be considered to have been applied or
         met until six (6) months after such submission.

22.5     No Party shall seek to initiate any proceedings in respect of, any
         unresolved matter until either escalation to and including the Third
         Level has been completed, unless such Party has reasonable cause to do
         so to avoid damage to its business or to protect or preserve any right
         of action it may have.

22.6     Notwithstanding anything in Clauses 22 (Dispute Resolution) or 23
         (Arbitration), nothing in those Clauses shall operate to restrict any
         Party's or any member of their Group's rights to apply for or obtain
         emergency or interlocutory relief.

23.      ARBITRATION

23.1     Subject to Clause 22.6 (Dispute Resolution), any dispute arising out of
         or in connection with this Transfer Agreement shall be resolved in
         accordance with the provisions of this Clause 23.

23.2     Before referring a dispute to arbitration in accordance with Clause
         23.4, the dispute shall in the first instance be dealt with in
         accordance with Clause 22 (Dispute Resolution).

23.3     Where pursuant to this Clause 23 any dispute is to be referred to
         arbitration, compliance with Clause 23.2 shall be a condition precedent
         to the making of an award, unless the Party referring the dispute to
         arbitration has reasonable cause to do so to protect or preserve any
         right of action it may have.

23.4     All disputes arising out of or in connection with this Transfer
         Agreement which cannot be resolved in accordance with Clauses 23.1 to
         23.2 shall be finally settled under the Rules of the London Court of
         International Arbitration by three arbitrators appointed in accordance
         with the said Rules. Furthermore:

         (a)      the place and the seat of the arbitration shall be London,
                  England; the tribunal shall have the power to conduct hearings
                  elsewhere if appropriate;

                                       31
<PAGE>

         (b)      the language of the arbitration, including all documents,
                  shall be English;

         (c)      the law governing this agreement to arbitrate shall be the law
                  of England and Wales.

24.      GOVERNING LAW

         The construction, interpretation and performance of this Transfer
         Agreement and all transactions under this Transfer Agreement shall be
         governed by the laws of England and Wales without reference to the
         UNCITRAL Conventions on Contracts for the International Sale of Goods
         and without giving effect to any provision of such law relating to
         conflict of laws; provided that, if any provision of this Transfer
         Agreement is required by the mandatorily applicable laws of the
         Territory to be subject to the laws of the Territory, the construction,
         interpretation and performance of such provision shall be governed by
         the internal laws of the Territory without reference to the UNCITRAL
         Conventions on Contracts for the International Sale of Goods. To the
         extent permitted by such applicable law, the Parties hereby waive any
         provision of law that renders any provision of this Transfer Agreement
         unenforceable in any respect.

25.      REGULATORY MATTERS

25.1     The Vendor shall continue to be responsible for, and shall duly and
         promptly pay and discharge all fines and penalties payable to any
         Governmental Authority which relate to the Internal IT Services and
         shall (subject to Clause 25.2) indemnify CSC against all liability CSC
         may incur arising out of, or in connection with any such fines or
         penalties.

25.2     The indemnity in Clause 25.1 shall not apply to any liability CSC may
         incur arising out of or in connection with the Internal IT Services to
         the extent attributable to any act or omission of CSC, any member of
         the CSC Group or its or their employees, agents or contractors.

26.      FURTHER ASSURANCE

         Each Party shall, whether before, on or after termination of this
         Transfer Agreement, do, execute and perform and shall procure to be
         done, executed and performed, all such further acts, deeds, documents
         and things as the other Parties may reasonably require from time to
         time effectively to give effect to this Transfer Agreement.

                                       32
<PAGE>

27.      LANGUAGE

         The Parties have requested that this Transfer Agreement and all
         documents contemplated by this Transfer Agreement or relating to it be
         drawn up in the English language.

28.      INDEMNIFICATION PROCEDURE

28.1     A Party entitled to indemnification under this Transfer Agreement (the
         "INDEMNIFIED PARTY") shall give written notice as soon as reasonably
         practicable upon becoming aware of circumstances giving rise to a right
         of indemnity under this Transfer Agreement to the Party that is
         obligated to provide indemnification (the "INDEMNIFYING PARTY"). Within
         ten Business Days after such notice, the Indemnifying Party may notify,
         in writing, the Indemnified Party of its decision to take control of
         the defence of any claim made by any third party and which is the
         subject of the indemnity and, in such circumstances, the Indemnifying
         Party shall be entitled to take control of the defence and
         investigation of such claim and to employ and engage lawyers of its
         sole choice to handle and defend the same, at the Indemnifying Party's
         sole cost and expense. The Indemnified Party shall co-operate in all
         respects with the Indemnifying Party in the investigation and defence
         of such claim and shall not prejudice any defence to any such claim or
         attempt to settle or compromise such claim. No settlement of a claim
         which involves a remedy other than the payment of money by the
         Indemnifying Party shall:

         (a)      be made without the consent of the Indemnified Party, which
                  consent shall not be unreasonably withheld or delayed; or

         (b)      not include as an unconditional term thereof the giving by the
                  claimant to the Indemnified Party of a release from all
                  liability in respect of such claim.

         If the Indemnifying Party does not assume full control over the defence
         of a claim the Indemnified Party shall have the right to defend the
         claim in such manner as it may deem appropriate, at the cost and
         expense of the Indemnifying Party.

28.2     The Indemnified Party under this Clause 28 (Indemnification Procedure)
         shall use its reasonable endeavours to mitigate the Loss to which the
         relevant indemnity relates.

                                       33
<PAGE>

                                   SCHEDULE 1

                                CURRENT CONTRACTS

Note: This schedule relates directly to the baseline costs. Some `contracts' are
in-fact just `contributions' to a contract in another country, eg[***].

PART 1 : EQUIPMENT CONTRACTS

None

PART 2 : MAINTENANCE CONTRACTS

(in `000's Euro's)

<TABLE>
<CAPTION>
SUPPLIER                 PRODUCT                         START DATE    END DATE     CONTRACT         CONTRACT
                                                                                    REQUISITION      REQUISITION
                                                                                    ESTIMATE VALUE   ACTUAL VALUE
---------------------------------------------------------------------------------------------------------------------
<S>                     <C>                              <C>           <C>          <C>              <C>

[***]
---------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------

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---------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------

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</TABLE>

                                       34
<PAGE>

<TABLE>
<CAPTION>
SUPPLIER                 PRODUCT                         START DATE    END DATE     CONTRACT         CONTRACT
                                                                                    REQUISITION      REQUISITION
                                                                                    ESTIMATE VALUE   ACTUAL VALUE
---------------------------------------------------------------------------------------------------------------------
<S>                     <C>                              <C>           <C>          <C>              <C>

---------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------
</TABLE>

PART 3 : THIRD PARTY SUPPLY CONTRACTS

 [***]
PART 4 : VEHICLE LEASES

 [***]
PART 5 : OPERATING SYSTEM LICENCES

                                      [***]

                                       35
<PAGE>
                                SCHEDULE 1B - FORM OF TRANSFER AGREEMENT (ITALY)

                                   SCHEDULE 2

                             EMPLOYMENT PROVISIONS

1.       DEFINED TERMS

         In this Schedule 2 (Employment Provisions), the following definitions
         shall apply:

         "APPROVED SUB-CONTRACTOR" has the meaning defined in the Master
         Services Agreement;

         "EUROPEAN REGULATIONS" means, in relation to a European Transferring
         Employee, the regulations implementing the provisions of EC Directive
         No. 77/187 dated 14 February 1977 as amended by EU Directive No. 98/50
         dated 29 June 1998 and as amended by EU Directive No. 2001/23 dated 12
         March 2001 (to the extent that EU Directive No. 2001/23 has been
         implemented) applicable to that European Transferring Employee's terms
         and conditions of employment;

         "EUROPEAN TRANSFERRING EMPLOYEES" means the persons identified in
         Schedule 3 (The Employees) as the European transferring employees;

         "TAX" means and includes all forms of taxation and statutory,
         governmental, supra governmental, state, local governmental or
         municipal impositions, duties, contributions, deductions, withholdings
         and levies whether of the United Kingdom or elsewhere whenever imposed
         and all penalties, charges, costs and interest relating to any of
         them; and

         "SUPPLIER" means CSC.

2.       EUROPEAN EMPLOYEES

2.1      The Vendor and the Supplier acknowledge that the European Regulations
         shall apply to the European Transferring Employees.

2.2      All salaries and other emoluments of the European Transferring
         Employees shall be discharged and all Tax deductions shall be complied
         with by the Vendor for itself and as agent for any member of the
         Vendor Group who is the employer of the European Transferring
         Employees in respect of all periods up to and including Completion and
         in respect of all share options granted or exercised prior to
         Completion and the salaries, other emoluments and Tax deductions of
         the European Transferring

                                      36
<PAGE>
         Employees in respect of the period after Completion shall be for the
         account of the Supplier.

2.3      (a)      The Vendor will upon the date two (2) weeks after the date of
                  signature of this Agreement and periodically two (2) weeks
                  thereafter up to Completion promptly notify the Supplier of
                  the following:

                  (i)      subject to Paragraph 1.3 (b) of this Schedule 2, any
                           changes to the list of European Transferring
                           Employees before Completion, in which case their
                           name or names will be deemed to have been deleted
                           from the list in Schedule 3;

                  (ii)     subject to Paragraph 1.3 (b) of this Schedule 2, if
                           any European Transferring Employee ceases to be
                           primarily engaged by the Vendor Group in performing
                           services which are the same or similar to the
                           Services (the "BUSINESS");

                  (iii)    if any European Transferring Employee obtains a
                           right to return to work (whether for reasons
                           connected with maternity leave or absence by reason
                           of illness or incapacity or otherwise);

                  (iv)     if any European Transferring Employee is given
                           notice of termination of his employment (or had his
                           employment terminated without notice);

                  (v)      if any offers of employment are made to any person
                           by the Vendor Group in relation to the Business and
                           if there is any person who has accepted such an
                           offer of employment made by the Vendor Group but
                           whose employment has not yet started;

                  (vi)     if any order that has not been complied with has
                           been made for the reinstatement or re-engagement of
                           any of the European Transferring Employees or any
                           person formerly employed or engaged in the Business;

                  (vii)    if there is any industrial action (other than
                           insignificant unofficial action) or trade dispute
                           (or related proceedings) by any European
                           Transferring Employees affecting the Business; and

                  (viii)   if the Vendor Group becomes engaged or involved in
                           any dispute, claim or legal proceedings (whether
                           arising under contract, common law, statute or in
                           equity) with any of the European Transferring

                                      37
<PAGE>
                           Employees or with any other person employed by the
                           Vendor Group in respect of whom liability is deemed
                           to pass to the Supplier or its Approved
                           Sub-Contractors by virtue of the European
                           Regulations and if the Vendor Group becomes aware of
                           any likelihood of any such dispute, claim or
                           proceedings arising at any time.

         (b)      the Vendor undertakes from the date of signature of this
                  Agreement up to Completion without the prior written consent
                  of the Supplier not to:

                  (i)      add or remove any Key Employee to or from the list
                           of European Transferring Employees; or

                  (ii)     change the names of more than [***]percent ([***]%)
                           of any other persons (not being Key Employees) from
                           the list of European Transferring Employees provided
                           that:

                           (aa)     the aggregate number of European
                                    Transferring Employees will not change;

                           (bb)     any replacement personnel will have skills
                                    and experience which are substantially
                                    similar to those of the employees being
                                    replaced;

                           (cc)     the terms of employment of replacement
                                    personnel will not be materially better
                                    than those of the employees being replaced;

                           (dd)     the severance costs of replacement
                                    personnel will not be materially higher
                                    than those of the employees being replaced,
                                    and

                           (ee)     the Supplier is promptly advised of such
                                    changes; or

                  (iii)    make any material changes to the terms of employment
                           of the European Transferring Employees. After
                           Completion the Vendor shall at Supplier's request
                           and cost make those employees who before Completion
                           were used to perform the services which are the same
                           or similar to the Services and who are working their
                           notice periods, available to Supplier for the
                           provision of the Services until their actual
                           termination dates.

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<PAGE>
2.4      The Vendor for itself and as agent for each member of the Vendor Group
         who are employers of any of the European Transferring Employees shall
         indemnify the Supplier against:

         (a)      any act or omission or obligation or liability of the Vendor
                  Group, arising out of or relating to the employment of any of
                  the European Transferring Employees or any other employee or
                  former employee of the Vendor Group prior to Completion,
                  unless such act or omission or obligation or liability was
                  caused by or on behalf of the Supplier Group; and

         (b)      against all Loss arising out of any claim by any trade union,
                  works council, staff association, worker representative
                  (whether or not recognised by the Vendor Group) or employee
                  in respect of all or any of the employees working in the
                  provision of the Services, arising out of a failure or
                  alleged failure by the Vendor Group to comply with its legal
                  obligations to consult under any applicable law or
                  regulation.

2.5      The Supplier shall indemnify the Vendor for itself and as agent for
         each member of the Vendor Group who are employers of the European
         Transferring Employees against:

         (a)      any act or omission or obligation or liability of the
                  Supplier before or after Completion arising out of or
                  relating to the employment or termination of employment of
                  any of the European Transferring Employees unless such act or
                  omission or obligation or liability was caused by or on
                  behalf of the Vendor Group; and

         (b)      any substantial changes to the terms of the employment of any
                  of the European Transferring Employees to their detriment
                  which are made, proposed or anticipated to take effect after
                  Completion and any change in the identity of their employer
                  which is a significant change and to their detriment; and

         (c)      any breach by the Supplier of its obligations to inform and
                  consult with trade unions, works councils or employee
                  representatives to the extent required by the European
                  Regulations or national laws.

2.6      If any contract of employment of any European Transferring Employee is
         found or alleged to continue with the Vendor Group after Completion,
         the Supplier agrees that:

                                      39
<PAGE>
         (a)      in consultation with the Vendor, it will within [***]Business
                  Days of being requested by the Vendor make to that person an
                  offer in writing to employ him or her under a new contract of
                  employment to take effect upon the termination referred to
                  below; and

         (b)      that offer of employment will be:

                  (i)      on terms and conditions which, when taken as a
                           whole, do not materially differ from those for the
                           European Transferring Employees who do transfer to
                           the Supplier on Completion; and

                  (ii)     fully compliant with the undertakings given by the
                           Supplier in Paragraph 1.11.

2.7      As soon as possible after the offer made by the Supplier has been
         accepted or rejected by that person, and in any event no later than
         the expiry of [***]Business Days after an offer has been made in
         accordance with Paragraph 1.6, the Supplier shall advise the Vendor
         which of those offers have been accepted or rejected. The Vendor shall
         or shall procure that the relevant employer of the European
         Transferring Employee shall waive applicable notice periods for any
         such person who wishes to accept the Supplier's offer of employment.
         If the Supplier's offer of employment is rejected by that person, the
         Vendor shall or shall procure that the relevant employer of the
         European Transferring Employee shall make that person available to the
         Supplier for the performance of the Services for so long as the
         Supplier may request, and shall not terminate, other than for cause or
         where the Supplier no longer requires the service of such employee,
         the employment of the person concerned. The Supplier shall be
         responsible for and shall indemnify the Vendor for itself and as agent
         for the member of the Vendor Group who is the employer of the European
         Transferring Employee against all Loss arising directly or indirectly
         from the employment of that European Transferring Employee from
         Completion or, if later, the date on which the relevant employment
         starts until the termination of that employment unless such Loss was
         caused by or on behalf of the Vendor Group but not compensation for
         unfair or wrongful dismissal or breach of contract or any redundancy
         pay). The Supplier shall notify the Vendor if the Supplier no longer
         requires the service of such employee (a "CESSATION NOTICE") and the
         Vendor shall commence the legal termination process of the employment
         of the person concerned. In such a case the Supplier's indemnity in
         Paragraph 1.7 shall only continue for a maximum [***]month period (or,
         where there is a longer period prescribed by law or by contract or
         necessary to comply with relevant law for commencement and completion
         of the termination process, such longer period) from the date of its
         Cessation Notice and shall not include any period

                                      40
<PAGE>
         when such employee is providing services for the benefit of a member
         of the Vendor Group (other than the Services).

2.8      If any contract of employment of any person other than a European
         Transferring Employee is found or alleged to continue with any member
         of the Supplier Group after Completion, the Vendor agrees that:

         (a)      in consultation with the Supplier, it will or will procure
                  that a member of the Vendor Group will within [***]Business
                  Days of being requested by the Supplier to make to that
                  person an offer in writing to employ him or her under a new
                  contract of employment to take effect upon the termination
                  referred to below; and

         (b)      that offer of employment will be on terms and conditions
                  which, when taken as a whole, do not materially differ from
                  the terms and conditions of employment of that person
                  immediately before Completion.

2.9      As soon as possible after the offer made by the Vendor has been
         accepted or rejected by that person, and in any event no later than
         the expiry of [***]Business Days after an offer has been made in
         accordance with Paragraph 1.6, the Vendor shall advise the Supplier
         which of those offers have been accepted or rejected. The Supplier
         shall or shall procure that the relevant employers of such employees
         shall waive applicable notice periods for any such person who wishes
         to accept the Vendor's offer of employment. If the Vendor's offer of
         employment is rejected by that person, the Supplier shall or shall
         procure that the relevant employer of such person shall commence the
         legal termination process of the employment of the person concerned
         and the Vendor shall be responsible for and indemnify the Supplier
         against all Loss arising directly or indirectly from (i) the
         employment of that person from Completion until the termination of
         that employment and (ii) that termination (including any redundancy
         pay (which shall consist of a redundancy package equivalent to that
         which would have been made available to him or her immediately prior
         to Completion (which shall be no greater than those ex-gratia
         severance terms which are set out in the Disclosure Letter)) but not
         compensation for unfair or wrongful dismissal or breach of contract).
         Provided that the Supplier should not be required to commence the
         termination of employment process where any such termination would, in
         the reasonable opinion of the Supplier, be likely to give rise to an
         award of compensation to the employee in addition to redundancy pay or
         a payment in lieu of notice. The Vendor's indemnity in Paragraph
         1.9(i) shall only continue for a maximum [***]month period (or, where
         there is a longer period prescribed by law or by contract or necessary
         to comply with relevant law for the commencement and

                                      41
<PAGE>
         completion of the termination process, such longer period) from
         Completion and shall not include any period when such employee is
         providing services for the benefit of a member of the Supplier Group
         (other than the Services).

2.10     The Vendor and the Supplier shall give each other such assistance as
         either may reasonably require to comply with the European Regulations
         in relation to any such employee of a member of the Vendor Group whose
         contract of employment is found or alleged to transfer to any member
         of the Supplier Group and in contesting any claim by any such person
         at or before Completion resulting from or in connection with this
         Agreement.

2.11     The Supplier undertakes to the Vendor for itself and as agent for each
         member of the Vendor Group who are employers of any of the European
         Transferring Employees, in addition to the European Regulations and
         any applicable laws, rules and regulations of the relevant European
         Country and any applicable collective bargaining agreements:

         (a)      that the terms and conditions of employment and other
                  contractual benefits (other than in respect of pensions, to
                  which the provisions of Schedule 8 shall apply) enjoyed by
                  the European Transferring Employees (details of which are set
                  out in the Disclosure Letter) in the period of [***]months
                  from Completion will be no less favourable than those enjoyed
                  by them prior to Completion (but without prejudice to any
                  improvements to salaries, wages or conditions agreed in
                  accordance with normal review procedures) save where
                  individual European Transferring Employees in their absolute
                  discretion choose to agree to join the Supplier's flexible
                  benefits scheme generally offered to the Supplier's
                  employees;

         (b)      to maintain, following Completion, a medical insurance scheme
                  for the European Transferring Employees which is the same or
                  substantially equivalent to the scheme provided for them
                  prior to Completion, details of which are set out in the
                  Disclosure Letter; and

         (c)      in the event of the Supplier effecting enforced redundancy of
                  any of the European Transferring Employees in the period of
                  [***]months from Completion, to make available or procure
                  that there is available to each European Transferring
                  Employee a package equivalent to that which would have been
                  made available to him had he or she still been an employee of
                  the Vendor Group at the date of that redundancy but which
                  shall be no greater than those ex-gratia severance terms
                  which are set out in the Disclosure Letter.

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<PAGE>
2.12     Immediately following Completion, the Vendor and the Supplier shall
         send to each of the European Transferring Employees a joint letter in
         agreed terms.

2.13     The Vendor and the Supplier shall respectively consult and keep each
         other fully informed regarding any information they propose to give to
         the European Transferring Employees and their representatives or any
         consultation they have with the European Transferring Employees and
         their representatives regarding the subject matter of this Agreement
         prior to Completion, and each will offer the other the opportunity to
         attend and participate in any meetings prior to Completion at which
         information is given to or there is consultation with European
         Transferring Employees and their representatives.

2.14     Immediately after Completion, the Vendor shall deliver promptly or
         procure the delivery to the Supplier copies of all reasonably
         available personnel and employment records and full particulars of:

         (a)      each European Transferring Employee, including name, ID
                  number, sex, and the date on which continuity of employment
                  began for each European Transferring Employee for statutory
                  purposes;

         (b)      standard terms and conditions of employment of each category
                  of European Transferring Employee;

         (c)      all payments, benefits or changes to terms and conditions of
                  employment promised to any European Transferring Employee;

         (d)      dismissals (other than voluntary redundancies) of those
                  employees primarily engaged in providing the Services
                  effected within the [***]() months prior to Completion and
                  disciplinary records (if any) relating to those employees
                  primarily engaged in providing the Services;

         (e)      all agreements or arrangements entered into in relation to
                  the European Transferring Employees between the Vendor or
                  relevant employer and any trade union or association of trade
                  unions or organisation or body of employees including elected
                  representatives; and

         (f)      all strikes or other industrial action (other than
                  insignificant unofficial action) taken by any European
                  Transferring Employee within the [***] () months prior to
                  Completion.

                                      43
<PAGE>
         This Paragraph shall be subject to compliance with any applicable law
         or regulation. If the provisions of that law or regulation prohibit
         full compliance with this Paragraph then the Vendor shall take all
         such steps as it can lawfully undertake to ensure as full compliance
         as possible with this Paragraph.

3.       LONG TERM SICKNESS

3.1      The parties acknowledge that individuals who are absent from work at
         Completion by reason of long term sickness as identified in Schedule
         3C (Long Term Sick Employees) are not listed in Schedule 3 (The
         Employees) and will not transfer to the Supplier on Completion
         pursuant to the European Regulations or otherwise. If within [***] ()
         months of the date of signature of this Agreement such an individual
         returns to work for the Marconi Group Paragraphs 1.6 and 1.7 of this
         Schedule shall apply save that:

         (a)      the Supplier is only obliged to use reasonable endeavours to
                  ensure that the terms and conditions of that offer of
                  employment meet the conditions of Paragraph 1.6(b)(i) and
                  (ii); and

         (b)      Paragraph 1.7 shall only apply to the extent that the
                  individual is providing services for the benefit of a member
                  of the Supplier Group.

4.       LEGAL RIGHT TO WORK

4.1      The Parties acknowledge that individuals who are not nationals of the
         country in which they work may have the right to work for the Marconi
         Group but may not be legally permitted to transfer to the Supplier
         Group or may lose the benefit of any current application for residency
         or similar rights. Such individuals are identified in Schedule 3D
         (Non-National Employees) are not listed in Schedule 3 (The Employees)
         and will not transfer to the Supplier on Completion pursuant to the
         European Regulations or otherwise. Marconi or the relevant employer of
         the people listed in Schedule 3D shall make those people available to
         the Supplier for the performance of the Services. When such individual
         is granted the necessary status to enable him to legally transfer to
         CSC without loss of legal status Paragraphs 1.6 and 1.7 of this
         Schedule shall apply providing that the individual is providing
         services to the Supplier save that the Supplier is only obliged to use
         reasonable endeavours to ensure that the terms and conditions of that
         offer of employment meet the conditions of Paragraph 1.6(b)(i) and
         (ii).

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<PAGE>
                                   SCHEDULE 3

                                 THE EMPLOYEES

                  [Insert details of Transferring Employees]

                                      45
<PAGE>
                                   SCHEDULE 4

                         APPORTIONMENT OF CONSIDERATION

IT EQUIPMENT:                       [-]1

NETWORK EQUIPMENT:                  [-]2

CURRENT CONTRACTS:                  [-]3

1        Insert details of IT Equipment consideration for Italy.
2        Insert details of Network Equipment consideration for Italy.
3        Insert details of Current Contract consideration for Italy.

                                      46
<PAGE>
                                   SCHEDULE 5

                            COMPLETION ARRANGEMENTS

1.       VENDOR'S OBLIGATIONS

(1)      On the In-Scope Contract Completion Date for an In-Scope Contract the
         Vendor shall deliver to CSC all books, records and other documents
         relating to that In-Scope Contract.

(2)      On Equipment Completion the Vendor shall deliver to CSC all the assets
         forming the Equipment which are capable of passing by delivery when,
         by virtue of such delivery, title to those Assets shall pass to CSC.

2.       CSC'S OBLIGATIONS

(1)      On Equipment Completion, CSC shall pay the Vendor Equipment
         Consideration in the manner prescribed by Clause 6.1 (Amount of the
         Vendor Equipment Consideration).

(2)      On Completion, CSC shall pay the Vendor Contracts Consideration in the
         manner prescribed by Clause 6.2 (Amount of the Vendor Contract
         Consideration).

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<PAGE>
                                   SCHEDULE 6

                                   WARRANTIES

1.       IT EQUIPMENT

1.1      On Completion, the Vendor or the relevant member of the Vendor Group
         will have good title to all the IT Equipment free from and clear of
         all liens, charges, mortgages, or similar encumbrances but excluding
         liens or licences arising in the ordinary course of business which are
         fairly disclosed in the Disclosure Letter.

1.2      The IT Equipment and the Leased IT Equipment at the date of this
         Transfer Agreement is in sufficient working order to enable members of
         the CSC Group to provide the IT Services and has been regularly and
         appropriately maintained and supported and so far as the Vendor is
         aware no material item of the IT Equipment or the Leased IT Equipment
         is dangerous, or requires renewal or replacement.

1.3      The IT Equipment and the Leased IT Equipment comprise all the material
         hardware and information technology assets and equipment used by the
         Vendor Controlled Group to provide the Internal IT Services.

1.4      The net book value at which each item of IT Equipment are listed on
         the Vendor Asset Registers accurately and fairly reflects the net book
         value of such item of IT Equipment in the books of the Vendor Group at
         31 October 2002, determined by depreciating the value of the equipment
         on a straight line basis in accordance with the Vendor Group's
         generally applicable accounting principles for the equipment in
         question.

2.       IN-SCOPE CONTRACTS

2.1      MATERIAL IN-SCOPE CONTRACTS VALID

         The Vendor is not aware of the invalidity of or any grounds for
         rescission, avoidance or repudiation of any In-Scope Contract
         involving an annual expenditure of total value of [***]pounds
         ((pound)[***]) or greater (each being a "MATERIAL CONTRACT") and
         neither it nor any other member of the Vendor Group has received
         written notice of any intention to terminate any such In-Scope
         Contract.

2.2      NO DEFAULT

         Neither the Vendor nor (so far as the Vendor is aware) any other party
         to any Material Contract is in material default or breach under it,
         and no Material Contract is the

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<PAGE>
         subject of dispute or a claim nor so far as the Vendor is aware are
         there any circumstances which might give rise to such a dispute or
         claim.

3.       EMPLOYEES

3.1      All the UK, European and Non European Transferring Employees as listed
         in Schedule 3 (The Employees) are primarily engaged immediately prior
         to Completion by the Vendor or a member of the Vendor Group in
         performing services which are the same or similar to the Services (the
         "BUSINESS"). The Employees are all directly employed by the Vendor or
         a member of the Vendor Group.

         DETAILS OF EMPLOYEES

3.2      In relation to each of the Employees there are contained in or
         attached to the Disclosure Letter full and complete particulars or
         copies of:

         (a)      standard form current written service or employment
                  agreements or particulars of employment (as appropriate) and
                  including the notice periods applicable and issued to each
                  category of Employee; and

         (b)      any procedures affecting their terms of employment, including
                  disciplinary or grievance procedures and any procedures to be
                  followed in the case of redundancy or dismissal.

3.3      In relation to each of the Employees there are contained in or
         attached to the Disclosure Letter full, complete and accurate
         particulars or copies of:

         (a)      their name, ID number, age, sex, date of commencement of
                  employment with the Vendor or the relevant member of the
                  Vendor Group;

         (b)      their rate of remuneration, bonus and commission, any other
                  benefit of any kind to which they are entitled or which are
                  regularly provided or made available to them, entitlement to
                  holidays and holiday bonuses, and working hour arrangements
                  (so far as not disclosed pursuant to sub-Paragraph (a)
                  above).

                                      49
<PAGE>
         NO EMPLOYEE BENEFIT PLANS

3.4      There are no profit-sharing, share option or share incentive schemes
         or other employee benefit plans in relation to any Employee.

3.5      No Employee listed in Schedule 3 (The Employees) has a right to return
         to work (whether for reasons connected with maternity leave or absence
         by reason of illness or incapacity or otherwise).

3.6      No Employee has been given notice of termination of his employment (or
         had his employment terminated without notice) for a period of twelve
         (12) months prior to Completion.

3.7      Full particulars are contained in the Disclosure Letter of any
         outstanding offer of employment made to any person by the Vendor or
         the relevant member of the Vendor Group in relation to the Business
         and there is no person who has accepted such an offer of employment
         made by the Vendor or the relevant member of the Vendor Group but
         whose employment has not yet started.

3.8      Full particulars are contained in the Disclosure Letter of any
         agreement for the provision of consultancy services or the services of
         personnel to the Business and of the terms applicable to the
         secondment to the Business of any person.

         CHANGES IN BENEFITS

3.9      As far as the Vendor or the relevant member of the Vendor Group is
         aware, it has not offered, promised or agreed for the future any
         variation in any contract of employment or any contract for services
         in respect of the Employees employed by the Vendor or the relevant
         member of the Vendor Group in respect of whom liability is deemed by
         the Regulations or its equivalent in any other jurisdiction, to pass
         to CSC or any member of the CSC Group.

3.10     No order that has not yet been complied with has been made for the
         reinstatement or re-engagement following Completion of any of the
         Employees or any person formerly employed or engaged in the Business.

                                      50
<PAGE>
3.11     Except in respect of normal accruals of remuneration or emoluments of
         employment, no sum is payable to or for the benefit of any Employee or
         their dependants nor is the Vendor or any member of the Vendor Group a
         party to any arrangements or promise to make or is in the habit of
         making ex gratia or voluntary payments by way of bonus, gratuity,
         allowance or the like to any such persons and there are no schemes of
         arrangements (whether legally enforceable or not) for the payment of
         disability or similar schemes or arrangements in operation or
         contemplated in respect of any of the Employees or their dependants or
         persons formerly employed or engaged in the Business or their
         dependants under which CSC or any member of the CSC Group may become
         liable to make payments or to provide equivalent benefits.

3.12     The Vendor or the relevant member of the Vendor Group does not have an
         obligation to make any payment on redundancy in excess of the
         statutory redundancy payment and the Vendor or the relevant member of
         the Vendor Group has not operated any discretionary practice of making
         any such excess payments.

3.13     There is not and during the twelve (12) months preceding the date of
         this Agreement there has not been any industrial action (other than
         insignificant unofficial action) by the Employees affecting the
         Business and to the best of the knowledge, information and belief of
         the Vendor or the relevant member of the Vendor Group, there are no
         facts or circumstances which might give rise to such industrial action
         (other than insignificant unofficial action).

3.14     The Vendor or any member of the Vendor Group is not a party to any
         collective agreement or other similar agreement (such as a dismissal
         procedures agreement) or trade dispute (or related proceedings) with
         unions or other employee representatives or otherwise relating to the
         Employees as one or more collective units. To the best of the
         knowledge, information and belief of the Vendor or the relevant member
         of the Vendor Group there are no facts or circumstances which might
         give rise to the Vendor or the relevant member of the Vendor Group
         becoming a party to any such agreement or becoming involved in any
         such dispute or proceedings.

3.15     The Vendor or the relevant member of the Vendor Group is not engaged
         or involved in any dispute, claim or legal proceedings (whether
         arising under contract, common law, statute or in equity) with any of
         the Employees nor with any other person

                                      51
<PAGE>
         employed by the Vendor or the relevant member of the Vendor Group in
         respect of whom liability is deemed to pass to CSC or any member of
         the CSC Group by virtue of the Regulations or its equivalent in any
         other jurisdiction, and so far as the Vendor or the relevant member of
         the Vendor Group is aware there is no likelihood of any such dispute,
         claim or proceedings arising at any time.

4.       PENSIONS

         In this part of this Schedule, the following terms have the following
         definitions:

         "GEC PLAN" means: [***].

         "MARCONI PENSION SCHEME(S)" means: [***];

         "MARCONI WELFARE SCHEME(S)" means: [***]; and

         "STATE SCHEME(S)" means arrangements under public law statute or
         regulation to which the Vendor or a member of the Vendor Group
         contributes in compliance with applicable law or regulation.

4.1      NO OTHER SCHEMES

         So far as is material, other than the Marconi Pension Scheme(s), the
         Marconi Welfare Scheme(s), the State Scheme(s) and save as disclosed
         in the Disclosure Letter, there is not in operation nor is there any
         obligation, nor has any proposal been announced either verbally or in
         writing, to establish a superannuation, pension, retirement, life
         assurance, death benefit, sickness, accident benefit or other similar
         scheme or arrangement in respect of which the Vendor has any legally
         binding liability to contribute or incur an obligation to or in
         respect of any Employee.

4.2      INFORMATION

4.2.1    Details of whether the Marconi Pension Scheme(s) are Mixed Scheme(s)
         (for the purposes of paragraph 1 of Part 3 of Schedule 8 (Pensions and
         Related Benefits)), funded self-contained plans (for the purposes of
         paragraph 2 of Part 3 of Schedule 8 (Pensions and Related Benefits))
         or unfunded schemes (for the purposes of paragraph 3 of Part 3 of
         Schedule 8 (Pensions and Related Benefits)) have been given to CSC or
         a member of the CSC Group.

4.2.2    Details of the Marconi Pension Scheme(s) and Marconi Welfare Scheme(s)
         have been given to CSC or a member of the CSC Group in the form (so
         far as relevant in each case) of:

                                      52
<PAGE>
         (a)      a copy of the governing documentation of the Marconi Pension
                  Scheme(s) and Marconi Welfare Scheme(s);

         (b)      a copy of the current explanatory booklet issued to any
                  Employee who is or is entitled to become a member of a
                  Marconi Pension Scheme;

         (c)      a copy of the audited accounts and financial statements of
                  the Marconi Pension Scheme(s) for the last scheme year;

         (d)      the latest actuarial valuation report of the Marconi Pension
                  Scheme(s) that provide defined benefits; and

         (e)      a list of the Employees who are members of the Marconi
                  Pension Scheme(s) and the Marconi Welfare Scheme(s) together
                  with sufficient data to enable CSC to ascertain its benefit
                  entitlements under the Marconi Pension Scheme(s) and Marconi
                  Welfare Scheme(s).

4.2.3    The details of the Marconi Pension Scheme(s) and Marconi Welfare
         Scheme(s) which have been given to CSC or a member of the CSC Group
         referred to in paragraphs 4.2.2 (a), (b), (c), (d) and (e) above are
         sufficient and complete in all material respects to enable CSC to
         ascertain benefits provided under the Marconi Pension Schemes and
         Marconi Welfare Scheme(s) in respect of the Employees and the value of
         such benefits.

4.3      CONTRIBUTION RATES

         Details of the current contribution rate(s) contributed to the Marconi
         Pension Scheme(s) and Marconi Welfare Scheme(s) by the Vendor or the
         relevant member of the Vendor Group have been given to CSC or a member
         of the CSC Group.

4.4      EXERCISE OF DISCRETIONS

         Except as disclosed in the Disclosure Letter, no discretion or power
         has been exercised under the Marconi Pension Scheme(s) or the Marconi
         Welfare Scheme(s) in respect of any Employee to augment benefits,
         provide a benefit which would not otherwise be provided or pay a
         contribution which would not otherwise have been paid.

4.5      AMENDMENT AND TERMINATION

         Except as disclosed in the Disclosure Letter, no plan, proposal or
         intention to amend, discontinue (in whole or in part) or exercise a
         discretion in relation to the Marconi

                                      53
<PAGE>
         Pension Scheme(s) or the Marconi Welfare Scheme(s) with respect to any
         Employee has been communicated to any Employee who is a member of a
         Marconi Pension Scheme or the Marconi Welfare Scheme nor has any act
         or event occurred which could give rise to a full or partial
         discontinuance of any Marconi Pension Scheme or the Marconi Welfare
         Scheme with respect to any Employee under applicable law.

4.6      FUNDING

         No contribution due to the Marconi Pension Scheme(s) or the Marconi
         Welfare Scheme(s) is/are unpaid (other than those payable in the month
         in which Completion takes place or the immediately preceding month)
         which unpaid amounts will be paid by the Vendor in accordance with the
         terms of the Marconi Pension Scheme(s) or the Marconi Welfare
         Scheme(s) and applicable law.

4.7      APPROVAL

         The [***]is an exempt approved scheme within the meaning of s592 ICTA.

4.8      CONTRACTING-OUT

         The [***]is not a contracted-out scheme within the meaning of the
         Pension Schemes Act 1993.

4.9      COMPLIANCE

         Each of the Marconi Pension Scheme(s) and the Marconi Welfare
         Scheme(s) with respect to Employees has been administered and invested
         in accordance with its terms and with the provisions of its governing
         documentation. Each of the Marconi Pension Scheme(s) and the Marconi
         Welfare Scheme(s) and each of the funds established thereunder is in
         compliance with the law applicable to the jurisdiction of its
         residence with respect to Employees.

4.10     NO DISPUTES

         There is no pending or threatened litigation, arbitration,
         proceedings, investigations or other claims, other than routine claims
         for benefits, relating to the Marconi Pension Scheme(s), the Marconi
         Welfare Scheme(s) or the State Scheme(s) or any benefits provided
         under them in relation to any of the Employees.

4.11     US SCHEMES

                                      54
<PAGE>
4.11.1   Each Marconi Pension Scheme intended to be a qualified plan under
         Section 401(a) of the United States Internal Review Code of 1986, as
         amended ("THE CODE") has received a favourable determination letter
         from the Internal Revenue Services that it is qualified under Code
         Section 401(a) and that its related trust is exempt from federal
         income tax under Code Section 501(a) and such determination letter has
         not been revoked.

4.11.2   Neither the Vendor nor any member of the Vendor Group has established,
         maintained or contributed to or otherwise participated in, or had an
         obligation to maintain, contribute to, or otherwise participate in,
         any Multiemployer Plan (as that term is defined in section 3(37)(A) of
         the United States Employee Retirement Income Security Act of 1973, as
         amended ("ERISA")) within the last six years in respect of the US
         Transferring Employees.

4.11.3   Except to the extent required under ERISA Section 601 et seq. and Code
         Section 4980B, neither the Vendor nor any member of the Vendor Group
         is obliged to provide health or welfare benefits to any Non-European
         Transferring Employee employed in the United States prior to the
         Completion Date or dependant or beneficiary thereof following such
         employee's retirement or other termination of service.

4.11.4   The Vendor and other relevant members of the Vendor Group have
         complied with the provisions of ERISA Section 601 et seq. and Code
         Section 4980B and with the provisions of ERISA Section 701 et seq. and
         Subtitle K of the Code.

                                      55
<PAGE>
                                   SCHEDULE 7

                             LIMITATIONS ON CLAIMS

1.       CSC TO NOTIFY POTENTIAL CLAIMS

         If CSC becomes aware of any fact, matter, event or circumstance by
         virtue of which in its reasonable judgment at the time the Vendor is
         or may become liable to make any payment under any of the Warranties
         or any other provision of this Transfer Agreement, CSC shall as soon
         as practicable [***] inform the Vendor in writing specifying in
         reasonable detail the fact, matter, event or circumstance giving rise
         (or which may give rise) to that liability and giving an estimate of
         the amount which may be claimed against the Vendor in respect of that
         liability. For the avoidance of doubt, any failure to give notice
         under this paragraph 1 shall not invalidate any claim which CSC may
         subsequently make provided that the Vendor shall bear no liability for
         any increased Losses which CSC or any member of the CSC Group may
         suffer or incur as a result of failing to provide notice in accordance
         with this paragraph.

2.       TIME LIMIT ON CLAIMS

2.1      No claim shall be brought by CSC under the Warranties unless it shall
         have given notice in writing of that claim specifying (in reasonably
         sufficient detail) the matter giving rise to the claim, the nature of
         the claim and, so far as practicable, the amount claimed to the Vendor
         not later than the expiry of a period of [***]commencing on:

         (a)      in the case of any claim or claims for breach of the
                  Warranties in paragraph 1 of Schedule 6 (Warranties), the
                  Equipment Completion Date applicable to the IT Equipment in
                  respect of which such claims or claims have arisen;

         (b)      in the case of any claim or claims for breach of the
                  Warranties in paragraph 2 of Schedule 6 (Warranties) insofar
                  as the claim relates to an In-Scope Contract, the In-Scope
                  Contract Completion Date applicable to the In-Scope Contract
                  in question; and

         (c)      in the case of any claim or claims for breach of the
                  Warranties in paragraphs 3 and 4 of Schedule 6 (Warranties),
                  the Completion Date applicable to the Employees in question.

2.2      [***]

3.       SPECIFIC LIMITATIONS

                                      56
<PAGE>
         CSC shall not be entitled to claim against the Vendor:

         (a)      under the Warranties [***]until the amount (excluding
                  interest and costs) that would be recoverable from the Vendor
                  in respect of the claim, when aggregated with:

                  (i)      the amount (excluding interest and costs)
                           recoverable in respect of any other claims made
                           against the Vendor under the Warranties or any other
                           provision of this Transfer Agreement; and

                  (ii)     the aggregate amount (excluding interests and costs)
                           recoverable in respect of any other claims made
                           against any member of the Vendor Group under the
                           Asset Transfer Agreement or under any other Transfer
                           Agreement,

                  exceeds a threshold of [***]pounds ((pound)[***]) in which
                  event, the Vendor shall be liable for the full amount of all
                  such claims and not the amount by which that threshold is
                  exceeded only, subject to paragraph 4.

         (b)      under the Warranties only:

                  (i)      in respect of any matters referred to in this
                           Transfer Agreement or fairly disclosed in the
                           Disclosure Letter;

                  (ii)     in respect of any matter or thing after the date of
                           this Transfer Agreement done or omitted to be done
                           at the written request of or with the written
                           consent of CSC or any other member of the CSC Group;

                  (iii)    [***]if and to the extent that:

                           (A)      the claim would not have arisen but for any
                                    act, omission, transaction or arrangement
                                    (or any combination of any of the same),
                                    after the date as at which the relevant
                                    Warranty is given pursuant to Clause 12.1
                                    (Warranties), of CSC or any member of the
                                    CSC Group or their respective directors,
                                    employees or agents except to the extent
                                    that such act, omission, transaction or
                                    arrangement has been undertaken[***];

                           (B)      the claim arises or is increased as a
                                    result of the passing of, or any change in
                                    or any change in the interpretation of, any
                                    law, rule, regulation or administrative
                                    practice of any government, government
                                    department, local or state agency,
                                    authority

                                      57
<PAGE>

                                    regulatory or fiscal body after the date of
                                    this Transfer Agreement;

                           (C)      the claim arises or is increased as a
                                    result of CSC not complying with its
                                    obligations under this Transfer Agreement;
                                    or

                           (D)      the damage, liability or loss suffered or
                                    incurred by CSC has been made good or has
                                    been otherwise compensated for without cost
                                    to CSC or any member of the CSC Group.

4.       LIMITS OF LIABILITY UNDER THE ASSET TRANSFER AGREEMENT

         The aggregate liability of each of the Marconi Group and the CSC Group
         in respect of:

         (i)      all claims under or in connection with this Transfer
                  Agreement [***] under the Warranties[***];

         (ii)     all claims under or in connection with each and every other
                  Territory Transfer Agreement (including claims under the
                  Warranties and indemnities); and

         (iii)    all claims under or in connection with the Asset Transfer
                  Agreement (including claims under the Warranties and
                  indemnities),

         shall, save and except in the case of, a breach by Marconi or any of
         the members of the Marconi Group of any of its statutory or
         contractual obligations relating to health and safety, not exceed a
         maximum sum equal to (pound)[***] ([***]pounds)[***]. For the
         avoidance of doubt, this paragraph does not limit the obligation of
         any members of the CSC Group to pay the Vendor Equipment Consideration
         to the Marconi Group in accordance with this Agreement and/or any
         Transfer Agreement.

5.       NO DOUBLE RECOVERY

         CSC shall not be entitled to recover more than once for the same Loss
         in respect of any fact, matter, event or circumstance giving rise to a
         claim under the Warranties or any other provision of this Transfer
         Agreement, the Asset Transfer Agreement or any other contract or
         document entered into pursuant to those agreements. Where any fact,
         matter, event or circumstance giving rise to a claim under the
         Warranties results in an adjustment to the Charges under a True-up
         Process, the financial adjustment so

                                      58
<PAGE>
         made shall be excluded from the quantum of any Loss otherwise
         recoverable for the breach of the Warranties in question.

6.       RECOVERY FROM THIRD PARTIES

6.1      If CSC is or may be entitled to recover from some other person (other
         than an insurer) any loss or damage which gives rise to any claim
         under the Warranties or any other provision of this Transfer
         Agreement, CSC shall take all appropriate steps to enforce that
         recovery (keeping the Vendor informed on a timely basis of any action
         so taken) before taking any action (other than notifying the Vendor of
         the claim) against the Vendor and any liability of the Vendor under
         this Transfer Agreement shall be reduced by the amount (including
         interest (if any)) recovered from the third party less any costs
         reasonably incurred by CSC in respect of such recovery.

6.2      If, notwithstanding any other provision of this Schedule, any payment
         is made by the Vendor in or towards the settlement of any claim made
         under the Warranties or any other provision of this Transfer Agreement
         and CSC subsequently recovers or procures the recovery from a third
         party (other than insurers) of an amount which is referable to that
         claim (and, in the event that CSC becomes entitled subsequent to
         payment by the Vendor to make recovery, CSC undertakes to take all
         necessary steps to enforce that recovery) CSC shall forthwith repay to
         the Vendor an amount equal to whichever is the lesser of:

         (a)      the amount (including interest (if any)) recovered from the
                  third party less any costs reasonably incurred by CSC in
                  respect of such recovery; and

         (b)      the amount paid by the Vendor in or towards settlement of the
                  claim.

7.       CONDUCT OF CLAIMS

         If CSC becomes aware of any actual or threatened assessment, claim,
         action or demand by a third party against it (a "THIRD PARTY CLAIM")
         which causes or may cause the Vendor to be liable under the Warranties
         or any other provision of this Transfer Agreement then:

         (a)      CSC shall at the written request of the Vendor:

                  (i)      take such action as the Vendor may reasonably
                           require to avoid, contest, dispute, resist, appeal,
                           compromise or defend the third party claim
                           (including, but without limitation, making counter
                           claims and exercising all rights of set off against
                           third parties);

                                      59
<PAGE>
                  (ii)     if so requested, permit the Vendor or procure that
                           the Vendor is permitted in the name of and on behalf
                           of CSC to have the sole conduct of all proceedings
                           relating to the third party claim as the Vendor may
                           deem appropriate including the appointment of
                           solicitors and other professional advisers and the
                           making of any settlement or compromise of the third
                           party claim; and

                  (iii)    render or cause to be rendered to the Vendor all
                           assistance as the Vendor may reasonably require
                           (including providing access to information and to
                           employees of CSC) for the purpose of avoiding,
                           contesting, disputing, resisting, appealing,
                           compromising or defending the third party claim,

                  provided that:

                           (A)      the Vendor shall indemnify CSC against all
                                    costs reasonably incurred by it in
                                    complying with its respective obligations
                                    under paragraphs 7(a) (i), (ii) and (iii)
                                    above; and

                           (B)      the Vendor shall not make any settlement or
                                    compromise of the third party claim which
                                    is likely to affect the future liabilities
                                    of CSC without the prior approval of CSC,
                                    that approval not to be unreasonably
                                    withheld or delayed;

(b)      CSC will not make or attempt to make any admission of liability,
         agreement, settlement or compromise in relation to a third party claim
         without the consent of the Vendor such consent not to be unreasonably
         withheld or delayed;

(c)      CSC shall in any event keep the Vendor informed as to the steps which
         are being taken in connection with the third party claim.

8.       DUTY TO MITIGATE

         CSC shall in relation to any loss or liability which might give rise
         to a claim under the Warranties or any other provision of this
         Transfer Agreement against the Vendor take all reasonable steps to
         avoid or mitigate that loss or liability.

                                      60
<PAGE>
                                   SCHEDULE 8

                         PENSIONS AND RELATED BENEFITS

PART 1 - UK PENSIONS - THE G.E.C 1972 PLAN

1.       INTERPRETATION

1.1      For the purposes of this Schedule the following terms have the
         following meanings:

         "ACTUARY'S LETTER" means the letter from the Vendor's Actuary to CSC's
         Actuary, a copy of which is annexed to this Schedule.

         "CALCULATION DATE" means a date to be determined by the Vendor's
         Actuary no later than three (3) months after Completion.

         "CSC'S ACTUARY" means[***].

         "CSC SCHEME" means a retirement benefits scheme established by CSC
         pursuant to paragraph 2.

         "GEC PLAN" means[***].

         "VENDOR'S ACTUARY" means[***].

         "PAYMENT DATE" means the date which is one month after the expiry of
         the two month period in which the Relevant Employees must decide
         whether or not to become Transferring Employees.

         "RELEVANT EMPLOYEES" means those Employees who are active members of
         the GEC Plan at Completion.

         "TRANSFER AMOUNT" means an amount calculated at the relevant date as
         the sum of the Transferring Employees' cash equivalents at the same
         relevant date calculated and verified by the Vendor's Actuary in
         accordance with the Occupational Pension Schemes (Transfer Values)
         Regulations 1996 and enhanced in accordance with the method set out in
         the Actuary's Letter. [***]

         "TRANSFERRING EMPLOYEES" means those Relevant Employees:

         (a)      who become members of the CSC Scheme on Completion; and

                                      61
<PAGE>
         (b)      who no later than two months after notification of the
                  service credits available to them in the CSC Scheme consent
                  in a form acceptable to the trustees of the GEC Plan (such
                  acceptance not to be unreasonably withheld) to the transfer
                  of that part of the Transfer Amount which is attributable to
                  them from the GEC Plan to the CSC Scheme in place of all of
                  the benefits payable in respect of their membership of the
                  GEC Plan.

1.2      References in this part of this Schedule to paragraphs are to
         paragraphs of this part of this Schedule.

2.       THE CSC SCHEME

2.1      CSC will (to the extent it had not already done so) establish the CSC
         Scheme before Completion. All Relevant Employees who do not transfer
         directly to British Telecommunications plc or a member of the BT Group
         and who have not attained age 65 will be invited to become members of
         the CSC Scheme with effect from Completion.

2.2      The CSC Scheme shall offer, to each Relevant Employee who accepts such
         invitation, benefits on the defined benefit basis set out in the third
         column of the table of the document named
         "alchemy.geccplancomparison.excels" provided by CSC (which is annexed
         to this Schedule).

2.3      The CSC Scheme shall be approved under Chapter I of Part XIV of ICTA
         or capable of such approval and CSC will use its reasonable endeavours
         to procure that the CSC Scheme accepts the transfer to the CSC Scheme
         of the Transfer Amount.

2.4      Subject to receipt of the Transfer Amount recalculated at the Payment
         Date, CSC will procure that the CSC Scheme will provide for and in
         respect of each Transferring Employee benefits in respect of
         Pensionable Service in the GEC Plan before Completion which are
         equivalent in value as determined in accordance with the Actuary's
         Letter to the amount transferred in respect of each Transferring
         Employee, on the defined benefit basis referred to in paragraph 2.2.

3.       ADDITIONAL VOLUNTARY CONTRIBUTIONS

         Any additional voluntary contributions made to the GEC Plan by any
         Relevant Employee (and the moneys, interest and benefits derived from
         those contributions) which are used to provide money purchase benefits
         (as defined in the Pension Schemes Act 1993) shall be disregarded for
         the purposes of calculating the Transfer Amount, but the Vendor will
         use its best endeavours to procure that the trustees of the

                                      62
<PAGE>
         GEC Plan will as soon as practicable after Completion transfer to the
         CSC Scheme the assets and/or the amount standing to the credit of each
         Transferring Employee in respect of additional voluntary contributions
         paid to the GEC Plan.

4.       CALCULATION AND PAYMENT OF THE TRANSFER AMOUNT

4.1      The Vendor shall procure that the Vendor's Actuary computes and
         certifies to CSCs Actuary within two (2) months after the Calculation
         Date the sum of the Relevant Employees' cash equivalents at the
         Calculation Date together with the enhancement described in the
         Actuary's Letter.

4.2      CSC shall procure that the CSC Actuary calculates and notifies to the
         Vendor's Actuary within one (1) month of receipt of the Vendor's
         Actuary's calculation of the sum of the Relevant Employees' cash
         equivalents, together with the enhancement referred to in the
         Actuary's Letter, the service credits available to the Relevant
         Employees in the CSC Scheme if they opt to become Transferring
         Employees.

4.3      Subject to confirmation from the Vendor's Actuary that the service
         credits to be offered to the Relevant Employees meet the requirements
         of paragraph 2.4 of this Schedule, CSC shall issue the forms referred
         to in part (b) of the definition of "Transferring Employees" to the
         Relevant Employees inviting them to become Transferring Employees.

4.4      Subject to it being satisfied that CSC has met or will meet its
         obligations under paragraph 2 above, the Vendor will use its best
         endeavours to procure that on the Payment Date the trustees of the GEC
         Plan pay the Transfer Amount re-calculated at the Payment Date to the
         trustees of the CSC Scheme in cash or such other assets chosen by the
         trustees of the GEC Plan and acceptable to the trustees of the CSC
         Scheme. In the absence of agreement the trustees of the GEC Plan will
         transfer cash.

4.5      If the trustees of the GEC Plan do not pay cash or other assets equal
         in value to the Transfer Amount re-calculated at the Payment Date to
         the CSC Scheme on or before the Payment Date, the Vendor shall, no
         later than fourteen (14) days after the Payment Date, pay to CSC an
         amount equal to the sum by which the Transfer Amount exceeds the value
         of cash or other assets (if any) paid by the trustees of the GEC Plan
         to the CSC Scheme together with compound interest calculated on a day
         to day basis with monthly rests on such amount (or on any part
         thereof) for so long as it shall remain unpaid after the Payment Date
         at [***]above the base rate of Barclays Bank plc from time to time.

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<PAGE>
4.6      If a payment is made under paragraph 4.5 CSC shall make a payment
         equal to the payment under paragraph 4.5 to the CSC Scheme
         within[***]. If CSC's liability to corporation tax applicable to its
         profits is reduced as a result of the payment of the amount under
         paragraph 4.5 into the CSC Scheme CSC shall repay in cash to the
         Vendor an amount equal to such deduction (as an adjustment to the
         Consideration) within [***] of the date on which the
         corporation tax would otherwise have been due and payable.

5.       MISCELLANEOUS

         CSC will promptly deliver to the Vendor drafts before they are issued
         and copies once they are issued of all notices and announcements
         relating to the GEC Plan or the CSC Scheme supplied to the Relevant
         Employees before Completion.

                                      64
<PAGE>
                       APPENDIX 1 TO PART 1 OF SCHEDULE 8

<TABLE>
<CAPTION>
THE GEC 1972 PLAN             FINAL SALARY SECTION OF THE CSC   COMMENTS
                              COMPUTER SCIENCES LTD PENSION
                              SCHEME
<S>                           <C>
[***]

</TABLE>

                                      65
<PAGE>
THE GEC 1972 PLAN             FINAL SALARY SECTION OF THE CSC   COMMENTS
                              COMPUTER SCIENCES LTD PENSION
                              SCHEME

[***]

                                      66
<PAGE>
PART 2 - UNITED STATES BENEFITS

1.       INTERPRETATION

1.1      For the purposes of this Schedule the following terms have the
         following meanings:

         "AFFECTED EMPLOYEES" means those Employees listed on part 4 of
         Schedule 3 (Employees) who become employees of CSC or any member of
         the CSC Group on or after Completion and who immediately prior to
         Completion were employed in the United States.

         "CSC 401(K) PLAN" means the CSC Matched Asset Plan.

         "CSC HEALTH AND WELFARE PLANS" means the CSC Health and Welfare Plans
         which are welfare plan arrangements currently maintained by CSC to
         provide health and medical benefits to employees.

         "CSC LONG-TERM DISABILITY PLAN" means the CSC Long Term Disability
         (LTD) Plan.

         "CSC RETIREMENT PLAN" means the CSC Defined Benefit Retirement Plan.

         "CODE" means the United States Internal Revenue Code of 1986, as
         amended.

         "ERISA" means the United States Employee Retirement Income Security
         Act of 1974, as amended.

         "MARCONI 401(K) PLAN" means the Marconi USA Wealth Accumulation Plan.

         "MARCONI K PLANS" means the Marconi 401(k) Plan and the Marconi
         Matching Plan.

         "MARCONI MATCHING PLAN" means the Marconi USA Wealth Accumulation
         Matching Plan.

         "MARCONI RETIREMENT PLAN" means the Marconi USA Employees' Retirement
         Plan.

         "MARCONI TOTAL REWARDS" means the welfare plan arrangements covering
         Affected Employees who immediately prior to Completion were employed
         in the United States.

         "OTHER BENEFIT OBLIGATION" means any obligation, arrangement or
         customary practice owed, adopted or followed by the Vendor or any
         member of the Vendor Group with respect to any Affected Employee,
         whether or not legally enforceable, to provide benefits, other than
         salary, as compensation for services rendered, to present

                                      67
<PAGE>
         or former directors, officers, employees or agents, other than
         obligations, arrangements and practices that are plans (as that term
         is defined in section 3(3) of ERISA). Other Benefit Obligations
         include consulting agreements under which the compensation paid does
         not depend upon the amount of service rendered, sabbatical policies,
         severance payment policies and fringe benefits within the meaning of
         Code Section 132.

         "SELLER PLAN" means any plan (as that term is defined in section 3(3)
         of ERISA) covering any Affected Employee of which the Vendor or any
         member of the Vendor Group is or was a plan sponsor (as that term is
         defined in Section 3(16)(B) of ERISA), or to which the Vendor or any
         member of the Vendor Group otherwise contributes or has contributed,
         or in which the Vendor or any member of the Vendor Group otherwise
         participates or has participated.

1.2      References in this part of this Schedule to paragraphs are to
         paragraphs of this Schedule unless otherwise specified.

2.       EMPLOYEE BENEFIT PLANS

2.1      On or prior to the Completion Date, the Vendor shall cause all
         contributions on behalf of Affected Employees to be made to the
         Marconi K Plans for periods prior to and including the Completion Date
         and Affected Employees shall cease to participate in the Marconi K
         Plans for periods after the Completion Date. The Vendor shall cause
         the Affected Employees to be fully and immediately vested in their
         account balances, if any, under the Marconi K Plans as of the
         Completion Date. CSC shall permit Affected Employees to participate in
         the CSC 401(k) Plan commencing upon employment with CSC in accordance
         with the terms and conditions of the CSC 401(k) Plan. CSC shall cause
         CSC 401(k) Plan to recognize the service of Affected Employees
         credited by the Vendor as of the Completion Date for vesting purposes
         under the Marconi K Plans immediately prior to the Completion Date:
         (a) for vesting purposes under the CSC 401(k) Plan; and (b) for
         purposes of eligibility for company matching contributions under the
         CSC 401(k) Plan. The CSC 401(k) Plan shall accept the rollover of
         distributions (which are eligible rollover distributions under section
         402(c) of the Code) of Affected Employees' account balances (other
         than any portion consisting of after-tax employee contributions), from
         the Marconi K Plans or from any other 401(k) plan established by the
         Vendor, including the rollover of participant loans, if any, in
         accordance with the election of the Affected Employees provided that
         the Marconi K Plans will not permit the election of a rollover of
         loans later than the 31st day after the Completion Date. The Vendor
         and CSC shall use their reasonable endeavours to accomplish the
         rollovers of account balances as described

                                      68
<PAGE>
         above. CSC shall uplift the base salaries of the Affected Employees to
         compensate for the difference in the matching contributions between
         the Marconi K Plans and the CSC 401(k) Plan, in accordance with the
         attached Appendix 2.1 of this part 2 of Schedule 8.

2.2      Affected Employees shall cease accruing future benefits in the Marconi
         Retirement Plan for periods after the Completion Date. The Vendor
         shall cause the Affected Employees to be fully and immediately vested
         in their accrued benefits, if any, under the Marconi Retirement Plan
         as of the Completion Date provided that the Vendor determines within
         its discretion that such vesting satisfies the requirements of
         Treasury Regulation section 1.401(a)(4)-11(c). No transfer of assets
         nor liabilities from the Marconi Retirement Plan to the CSC Retirement
         Plan will occur. CSC shall permit Affected Employees to participate in
         the CSC Retirement Plan commencing upon employment with CSC in
         accordance with the terms and conditions of the CSC Retirement Plan.
         CSC shall cause CSC Retirement Plan to recognize the past service of
         Affected Employees for purposes of eligibility and vesting, but not
         for purposes of benefit accrual, to the extent such service was
         recognized for vesting purposes under the Marconi Retirement Plan
         immediately prior to the Completion Date. CSC shall uplift the base
         salaries of the Affected Employees to compensate for the difference in
         the contributions between the Marconi Retirement Plan and the CSC
         Retirement Plan, in accordance with the attached Appendix 2.2 of this
         part 2 of Schedule 8.

2.3      Affected Employees shall cease to participate in the Marconi Total
         Rewards program for periods after the Completion Date, except as
         otherwise specifically provided under the terms of the Marconi Total
         Rewards program or as required under section 4980B of the Code or
         section 601 of ERISA. CSC shall permit Affected Employees to
         participate in the CSC Health and Welfare Plans commencing upon
         employment with CSC in accordance with the terms and conditions of
         such plans. The CSC Health and Welfare Plans shall provide that each
         Affected Employee (and their covered dependents) shall be given credit
         for service with the Vendor (and any other companies for which such
         service was recognized under Marconi Total Rewards) for purposes of
         waiting periods except where a third party insurance provider
         prohibits the crediting of such service for such purpose. In addition,
         CSC will apply prior period(s) of health insurance coverage toward
         satisfaction of the CSC Health and Welfare Plans pre-existing
         condition limitations upon submission of Certificate(s) of Creditable
         Coverage, as defined in and permitted under the Health Insurance
         Portability and Accountability Act of 1996. Amounts that an Affected
         Employee has paid or is required to pay which have been applied
         towards the satisfaction of any deductible or out of pocket maximum
         under the medical and dental portions of the

                                      69
<PAGE>
         Marconi Total Rewards program for the Marconi Total Rewards plan year
         ended March 31, 2003 will be similarly applied towards the
         satisfaction of any deductible or out of pocket maximum under the CSC
         Health and Welfare PPO and Dental Plans for the CSC Health and Welfare
         Plan year ended December 31, 2003. CSC shall uplift base salaries of
         the Affected Employees, in order to compensate for the differences
         between the Marconi Total Rewards program and the CSC Health and
         Welfare Plans, in accordance with the attached Appendix 2.3 of this
         Part 2 of Schedule 8.

2.4      As of the Completion Date, CSC shall credit each Affected Employee
         with a number of vacation days which shall be equal to the number of
         vacation days that such Affected Employee had accrued under the
         Marconi paid time off ("PTO") policy immediately prior to the
         Completion Date, provided that such credited days shall not exceed
         fifty (50) days for any individual Affected Employee. The vacation
         days so credited may be used by Affected Employees in accordance with
         CSC's general vacation policies. Within fifteen (15) days after the
         Completion Date, the Vendor shall transfer to CSC an amount equal to
         the value of the aggregate number of vacation days credited to
         Affected Employees pursuant to the first sentence of this paragraph.
         For purposes of the preceding sentence, the value of the number of
         vacation days credited shall be determined by multiplying the number
         of vacation days credited to each Affected Employee by such Affected
         Employee's daily pay rate in effect on the date immediately preceding
         the Completion Date.

         After the Completion Date, each Affected Employee shall accrue
         vacation days under CSC's vacation policy at the same rate that each
         such Affected Employee accrued PTO days under the Marconi PTO policy
         as of the Announcement Date (the "MARCONI RATE"), provided that such
         accrual shall not exceed 25 days per year for any individual Affected
         Employee. If the Marconi Rate of any Affected Employee would have
         otherwise resulted in an accrual of vacation days in excess of 25 days
         per year, then CSC shall uplift the base salary of such Affected
         Employee by an amount equal to the value of the Affected Employee's
         annual vacation days calculated using the Marconi Rate (but in no
         event to exceed thirty (30) days per year) less the value of twenty
         five (25) vacation days per year. For purposes of the preceding
         sentence, the value of vacation days shall be determined by
         multiplying the number of vacation days by any such Affected
         Employee's daily pay rate in effect on the date immediately preceding
         the Completion Date.

         Notwithstanding the previous paragraph, if, during any Affected
         Employee's employment with CSC, the employment service of such
         Affected Employee would result in an accrual of vacation days under
         CSC's normal vacation policy accrual rate

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<PAGE>
         which is in excess of that which would be accrued under the Affected
         Employee's Marconi Rate, then CSC's normal vacation policy accrual
         rate shall thereafter apply to such Affected Employee. For purposes of
         the preceding sentence, Affected Employees shall be given credit for
         service with the Vendor (and any other companies for which such
         service was recognized under the Marconi PTO policy as of the
         Announcement Date) for purposes of CSC's vacation policy.

2.5      Affected Employees shall be credited with twenty (20) days of initial
         sick leave under the CSC's sick leave policy and they will accrue
         additional sick leave in accordance with CSC's sick leave policy.

2.6      Affected Employees shall be entitled to Holidays equal to the greater
         of nine (9) or the number recognized at CSC's worksite at which such
         Affected Employees are employed other than optional or elected days.
         Such Holidays shall be used in accordance with CSC's general holiday
         policies.

2.7      The Parties expressly agree that none of CSC or any member of the CSC
         Group will purchase, assume, or have any obligation or liability
         whatsoever with regard to, any Seller Plan or Other Benefit
         Obligation. Furthermore, part 3 of Schedule 8 shall have no
         application whatsoever with respect to any Seller Plan or Other
         Benefit Obligation.

2.8      CSC shall permit Affected Employees to participate in CSC vision, life
         insurance, Code section 125, accidental death and dismemberment,
         business travel insurance, long-term disability (including CSC
         Long-Term Disability Plan), and dependent life insurance plans or
         arrangements on the same terms and conditions as other
         similarly-situated employees of CSC; provided, however, that CSC shall
         credit service to each Affected Employee for purposes of satisfying
         the pre-existing condition limitation service requirements under CSC
         Long Term Disability Plan, with such credited service equal to the
         period of time such Affected Employee was covered under the long term
         disability portion of the Marconi Total Rewards Program or the GEC-USA
         Employees' Welfare Benefit Plan as of the Completion Date.

2.9      CSC warrants that the details of the CSC 401(k) Plan, the CSC
         Retirement Plan, the CSC Health and Welfare Plans, and the CSC
         Long-Term Disability Plan are as set forth in the CSC Employee
         Handbook provided to the Vendor, and warrants that CSC has no material
         adverse change to any of the CSC 401(k) Plan, the CSC Retirement Plan,
         the CSC Health and Welfare Plans or the CSC Long-Term Disability Plan
         under serious consideration and that CSC in normal course annually
         evaluates the CSC Health and Welfare Plans in connection with the
         annual enrolment process/annual plan renewals.

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<PAGE>
2.10     If an Affected Employee commences employment with CSC on a date later
         than the date immediately following Completion, then the date
         immediately prior to the date on which such Affected Employee
         commences employment with CSC shall be referred to as the Affected
         Employee's "Deferred Employment Date," and the provisions of
         paragraphs 2.1, 2.2, 2.3, 2.4 and 2.8 of this Schedule shall be
         determined with respect to such Affected Employees by substituting the
         term "Deferred Employment Date" for the term "Completion Date"
         wherever such term appears in those paragraphs.

                                      72
<PAGE>
                      APPENDIX 2.1 TO PART 2 OF SCHEDULE 8

The Salary uplift for each Affected Employee with respect to 401(k) plan
differences is [***]of base pay.

                      APPENDIX 2.2 TO PART 2 OF SCHEDULE 8

The Salary uplift for each Affected Employee with respect to retirement plan
differences is [***]of base pay.

                      APPENDIX 2.3 TO PART 2 OF SCHEDULE 8

The Salary uplift for each Affected Employee with respect to medical, dental,
and vision benefits shall be a monthly dollar amount equal to the monthly
amount by which the total amount charged for medial, dental and vision coverage
under the CSC plans exceeds the total amount charged for such coverage on a
monthly basis under the Marconi Total Rewards. The medical, dental and vision
coverage of an Affect Employee shall be the medical, dental and vision coverage
under Marconi Total Rewards as of the date it is announced that this agreement
has been entered into by the Vendor and CSC ("ANNOUNCEMENT DATE"). If the
amount charged by CSC for such coverage does not exceed the amount charged by
the Vendor for such coverage, Salary shall not affected by reason of medical,
dental and vision coverage.

With respect to any Affected Employee who as of the Announcement Date has a
domestic partner covered for medical, dental and/or vision coverage under the
Marconi Total Rewards as of the Announcement Date, such Affected Employee shall
be given a one-time lump sum payment equal to the amount that would be charged
as of the Announcement Date under Marconi Total Rewards for eighteen (18)
months of COBRA coverage for the domestic partner.

The Salary uplift for Affected Employee who is covered by Long Term Disability
insurance coverage as of the Announcement Date under Marconi Total rewards
shall be monthly dollar amount equal to the monthly amount by which the total
amount charged for Long Term Disability insurance coverage under the CSC plans
exceeds the total amount that would be charged for such coverage on a monthly
basis under the Marconi Total Rewards as of the Announcement Date.

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<PAGE>
PART 3 - EMPLOYEE BENEFIT SCHEMES OTHER THAN THOSE COVERED BY PARTS 1 AND 2

1.       FUNDED MIXED SCHEMES

1.1      In this paragraph "MIXED SCHEMES" means the funded retirement benefits
         plans listed under Appendix 1 to this Part 3 of Schedule 8 under which
         both Employees and employees of the Vendor who are not Employees are
         in pensionable service at Completion.

1.2      Employees shall cease to participate in the Mixed Schemes in relation
         to their service after Completion.

1.3      CSC shall:

         (i)      (to the extent it has not already done so) provide (either by
                  establishing separate retirement benefits plans or under
                  existing retirement benefits plans) ("the CSC SCHEMES")
                  benefits to such Employees (other than UK Transferring
                  Employees and US Transferring Employees) in respect of their
                  service after Completion; and

         (ii)     within one month of Completion offer membership to such
                  Employees (backdated to Completion) of a CSC Scheme on terms
                  which are agreed between the Vendor and CSC such that the
                  remuneration and benefits payable in respect of the Employees
                  in the aggregate are broadly comparable to those which
                  applied in respect of the Employees for service prior to
                  Completion and which require contributions by such Employees
                  at rates no higher than apply to them as at Completion
                  (subject to any increases or decreases in contributions which
                  would have been permissible and usual in terms of the rules
                  of the Mixed Schemes). In the event of the Parties' failure
                  to agree, the matter shall be referred to an independent
                  actuary agreed by CSC and the Vendor or (failing agreement
                  within fourteen (14) days of a written request from one party
                  to the other to agree to the appointment of such an actuary)
                  appointed at the request of CSC and the Vendor by or on
                  behalf of the President for the time being of the Institute
                  of Actuaries. The decision of any such actuary shall be final
                  and binding on the Parties and his expenses shall be borne
                  equally by CSC and the Vendor. The independent actuary shall
                  act as an expert and not as an arbitrator.

1.4      Unless the Vendor and CSC otherwise agree in writing, arrangements
         shall be made in relation to each Employee (or Employees in the
         aggregate, where applicable) for

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<PAGE>
         the transfer (subject to relevant local legal, actuarial and
         regulatory requirements) of funds as provided in this paragraph 1 from
         the Mixed Schemes to CSC's Schemes. Such transfer shall be in full and
         final discharge of all liabilities of the Mixed Schemes to and in
         respect of such Employees.

1.5      The pensions transfer shall be

         (i)      (in respect of a defined contribution arrangement) an amount
                  equal to the value at Completion of the Employee's individual
                  pension account together with accumulated interest; and

         (ii)     (in respect of a defined benefit arrangement) the transfer
                  amount shall be the lesser of:

                  (a)      such capital value calculated in accordance with the
                           latest actuarial valuation of the defined benefit
                           arrangement or, where no such valuation is available
                           in accordance with terms agreed between the Vendor
                           and CSC and in the event of the Parties' failure to
                           agree calculated on a basis settled by the
                           independent actuary appointed under 1.3(ii), making
                           allowance (in accordance with that valuation or
                           where applicable the basis agreed between the Vendor
                           and CSC or recommended by the independent actuary
                           appointed under 1.3(ii)) for projected increases in
                           earnings up to the assumed date of cessation of
                           pensionable service; and

                  (b)      a share of assets of the Mixed Scheme calculated by
                           reference to the proportion of the total liabilities
                           of the Mixed Scheme attributable to Employees who
                           are members of the Mixed Scheme.

2.       UNFUNDED SCHEMES

2.1      In this paragraph:

         "UNFUNDED SCHEMES" means those unfunded retirement benefit plans in
         Germany which are described in Appendix 2 to Part 3 of this Schedule
         8.

2.2      The Vendor shall deliver to CSC no later than thirty (30) days after
         Completion all relevant data, information and documents as CSC may
         reasonably require in order to enable it to calculate the accrued
         pension liabilities referred to in paragraph 2.3 below.

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<PAGE>
2.3      An actuary appointed by CSC shall calculate and agree with an actuary
         appointed by the Vendor the accrued pension liabilities in respect of
         the Unfunded Schemes for all active employees in employment as at
         thirty (30) days after Completion ("THE TRANSFER DATE") on the bases
         set out below, and shall notify the calculations in writing to CSC and
         to the Vendor within thirty (30) days after the Transfer Date. The
         bases of calculation shall be:

         2.3.1    in accordance with the standard national actuarial and
                  accounting principles, bases, policies, methods and practices
                  applicable in the relevant jurisdiction for an ongoing
                  Unfunded Scheme ("THE LOCAL BASIS"). For pension accruals,
                  the accounting rules and Section 6a of the German Income Tax
                  Act used to calculate book reserves will apply and the
                  calculation will refer to the mortality tables 1998 ("HEUBECK
                  RICHTTAFELN 1998"); and

         2.3.2    additionally, in respect of the German Unfunded Schemes, in
                  accordance with accounting principles consistent with FAS87
                  and US GAAP and using the following actuarial assumptions
                  ("THE US BASIS"):

                  [***]

                  [***]

                  [***]

                  [***]

2.4      CSC undertakes that any Unfunded Schemes will not be terminated and
         will continue to provide benefits to and make provisions in respect of
         the employees referred to in paragraph 2.3 on terms which are agreed
         between the Vendor and CSC to be broadly comparable to the terms which
         applied for such employees prior to Completion.

2.5      In the event of the Parties' failure to agree any of the matters
         referred to in paragraph 2.3 or 2.4 above, the matter shall be
         referred to an independent actuary agreed by the CSC and the Vendor or
         (failing agreement within fourteen (14) days of a written request from
         one party to the other to agree to the appointment of such an actuary)
         appointed at the request of CSC or the Vendor by or on behalf of the
         President for the time being of the Institute of Actuaries.

2.6      The Vendor undertakes to transfer to CSC the amount corresponding to
         the accrued pension liabilities calculated in accordance with the
         Local Basis. The amount shall be

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<PAGE>
         payable together with compound interest calculated at [***] per cent
         ([***]%) above the base rate of Barclays Bank plc accrued between the
         Transfer Date and the date of payment within thirty (30) days after it
         is notified of the amount of the calculation.

2.7      In the event that the value of the accrued pension liabilities in
         respect of the German Unfunded Schemes as at the Transfer Date
         calculated in accordance with the US Basis exceeds the value of those
         liabilities calculated in accordance with the Local Basis ("THE
         EXCESS"), the Vendor shall pay to CSC an amount equal to [***]% of the
         Excess less an amount equal to x% of [***]% of such Excess (where x is
         equal to the rate of corporation tax (Korperschaftsteuer) payable in
         Germany as at the Transfer Date). The net amount shall be payable
         together with compound interest calculated at [***]% above the base
         rate of Barclays Bank plc accrued between the Transfer Date pursuant
         to paragraph 2.3 and the date of payment pursuant to this paragraph
         2.7.

3.       TRATTAMENTO DI FINE RAPPORTO

         In this paragraph:

         "TFR" means those unfunded Trattamento di Fine Rapporto arrangements
         in Italy.

3.1      Accrued unfunded liabilities in respect of the TFR will be calculated
         for all active employees in active employment at the Transfer Date in
         accordance with the accounting principles, bases, policies, methods
         and practices used by the Vendor for active employees in Italy for
         TFR.

3.2      The liabilities calculated in accordance with paragraph 3.1 will then
         be transferred to CSC. No liabilities will be payable in respect of ex
         members or pensioners. Such transfer shall be in full and final
         discharge of all liabilities of the Vendor under the TFR to and in
         respect of the accrued liabilities in respect of the TFR.

3.3      CSC undertakes that any TFR will not be terminated and will continue
         to provide benefits to and make provisions in respect of any Employees
         under the TFR that are transferring from the Vendor to CSC on terms
         which are agreed between the Parties to be substantially the same as
         the terms which applied for the employees referred to in paragraph 3.1
         prior to Completion.

4.       MISCELLANEOUS

4.1      CSC shall indemnify the Vendor for itself and as agent for each member
         of the Vendor Group who are employers of any of the European
         Transferring Employees or the South African Transferring Employees
         against any claim in respect of a failure by

                                      77
<PAGE>
         CSC to provide retirement or death-in-service benefits for or in
         respect of any European or South African Transferring Employee in
         respect of their service under the CSC Schemes on or after Completion
         of the same or equivalent level as those persons would have been
         entitled immediately before Completion.

                                      78
<PAGE>
                       APPENDIX 1 TO PART 3 OF SCHEDULE 8

                             LIST OF MIXED SCHEMES

         BRAZIL:           Brazil Retirement Plan with AIG/Unibanco

         CANADA:           Marconi Communications Optical Networks Corp.
                           Savings Plan

                           Marconi Group Retirement Savings Plan with the
                           Maritime Life Assurance Company

                           Canadian LLS Pension and S&I Plan (Defined Benefit)

         IRELAND:          Fore Systems Limited Benefit Plan

         ITALY:            Marconi Spa Company Fund for Dirigenti managed by
                           INA - Assitalia

         MEXICO:           Marconi Mexico Retirement Plan with Grupo Nacional
                           Provincial

         SOUTH AFRICA:     Marconi Retirement Fund

         UK:               MSI Pension arrangements

                           (Group Personal Pension Scheme and Group Life
                           Assurance Scheme)

                                      79
<PAGE>
                       APPENDIX 2 TO PART 3 OF SCHEDULE 8

                            LIST OF UNFUNDED SCHEMES

GERMANY

The Unfunded Schemes listed below for Germany have all been agreed on in
collective agreements of Bosch Telekom GmbH or Robert Bosch GmbH. The Vendor
applies those Pensions Schemes for all its Employees transferring to CSC on
either a collective basis or an individual basis.

1.       Works Council Agreement "Pension Scheme" between management and
         Company Works Council of Bosch Telekom GmbH dated November 18, 1998.

2.       Protocol note to Works Council Agreement "Pension Scheme" between
         Bosch Telekom GmbH and Company Works Council dated November 18, 1998.

3.       Works Council Agreement "Payment Principles Capital Account Plan"
         between management and Company Works Council of Bosch Telekom GmbH.

4.       Protocol note to Works Council Agreement "Payment Conditions Capital
         Account Plan" between Bosch Telekom GmbH and Company Works Council
         dated November 18, 1998.

5.       Works Council Agreement "Transfer to Capital Account Plan RBI" between
         management and Company Works Council of Bosch Telekom GmbH dated
         November 18, 1998.

6.       Directive "Pension Scheme" concluded between Robert Bosch GmbH and
         Group Speakers Committee of managerial employees dated December 4,
         1998.

7.       Protocol note to Directive "Pension Scheme" between Robert Bosch GmbH
         and Group Speakers Committee for managerial employees dated December
         4, 1998.

8.       Directive "Payment Conditions Capital Account Plan" concluded between
         Robert Bosch GmbH and Group Speakers Committee for managerial
         employees dated December 4, 1998.

9.       Directive "Transfer to Capital Account Plan RBI" concluded between
         Robert Bosch GmbH and Group Speakers Committee for managerial
         employees dated December 4, 1998.

10.      Protocol note to Directive "Transfer to Capital Account Plan RBI"
         between Robert Bosch GmbH and Group Speakers Committee of managerial
         employees dated December 16, 1998.

11.      Protocol note to Company Works Council Agreement "Old Age Part Time
         (dated July 19, 1998)" between Robert Bosch GmbH and Company Works
         Council dated November 27, 1998.

                                      80
<PAGE>
ITALY

1.       Trattamento di Fine Rapporto.

                                      81
<PAGE>
                              SCHEDULE 9 - BUDGET

1.       OVERVIEW

         This schedule shows the baseline costs (with supporting schedules) as
         provided by Marconi along with the associated volume metrics provided
         by CSC and BT.

         In the following tables, information contained in the column headed
         "Original" is provided for information purposes only, and will be
         reviewed between the Parties following Cutover (as defined in the
         Master Services Agreement) but, for the avoidance of doubt, will not
         be verified as part of any True-up Process (as defined in the Master
         Services Agreement).

                                     [***]

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<PAGE>
                                  SCHEDULE 10

                               INTERNAL SERVICES

INTERPRETATION

For the purposes of this Schedule 10 (Internal Services), the Parties
acknowledge that the services referenced below are described as obligations of
the "Supplier". Notwithstanding this, the Parties acknowledge that these
services are those which were provided by the Marconi Group from its own
resources or procured by the Marconi Group from third parties immediately prior
to the date of this Agreement.

PART 1: INTERNAL IT SERVICES

SERVICES

The services described in Schedule 1 (Service Level Agreement) to the Master
Services Agreement, excluding the services described in Schedule 1 (Service
Level Agreement) to the BT Sub-Contract.

SITES

The sites set out in Schedule 1 (Service Level Agreement) to the Master
Services Agreement, (including those sites set out in Appendices A (Sites), C
(Asia-Pac Services) and D (Transferring Out Entities)).

PART 2: INTERNAL NETWORK SERVICES

References in this Part 2 of Schedule 10 to Schedule 1 of the BT Sub-Contract
shall be references to Schedule 1 of the BT Sub-Contract in Agreed Terms.

SERVICES

The services described in Schedule (Service Level Agreement) of the BT
Sub-Contract.

SITES

The sites set out in Appendices A (Sites), B (Asia-Pac Services) and C
(Transferring Out Entities) to Schedule 1 (Service Level Agreement) of the BT
Sub-Contract.

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<PAGE>
EXECUTION:

The Parties have shown their acceptance of the terms of this Transfer Agreement
by executing on the date first written above.

SIGNED by MARCONI                                             )
COMMUNICATIONS S.P.A.                                         )
acting by its attorney                                        )
                                                              )
in the presence of:                                           )

Witness's signature:

Name (in capitals):

Address:

Occupation:

SIGNED by MARCONI SUD S.P.A.                                  )
acting by its attorney                                        )
                                                              )
in the presence of:                                           )

Witness's signature:

Name (in capitals):

Address:

Occupation:

SIGNED by CSC COMPUTER                                        )
SCIENCES ITALIA S.P.A.                                        )
acting by its attorney                                        )
                                                              )
in the presence of:                                           )

Witness's signature:

Name (in capitals):

Address:

Occupation:

                                      84
<PAGE>
                                                       SCHEDULE 2 - TERRITORIES

                                   SCHEDULE 2

                                  TERRITORIES

<TABLE>
<CAPTION>
                                                   TRANSFER AGREEMENT COUNTERPART
   TERRITORY                      MARCONI GROUP MEMBER                           CSC GROUP MEMBER

<S>                   <C>                                               <C>
UNITED KINGDOM               Marconi Communications Limited                   CSC Computer Sciences Limited
                        Metapath Software International Limited
                                 Albany Partnership Ltd
     ITALY                     Marconi Communications SpA                   CSC Computer Sciences Italia SpA
                                    Marconi Sud SpA
    GERMANY                   Marconi Communications GmbH                       CSC Managed Services GmbH
    IRELAND                  Marconi Communications Limited              CSC Services Management Ireland Limited
                                Marconi Corporation plc
                        Marconi Communications Optical Networks
                                        Limited
     SPAIN                         Marconi Iberia SA                            Computer Sciences Espana
      USA                     Marconi Communications, Inc.               CSC International Systems Management Inc
                        Metapath Software International (US) Inc
    CANADA                 Marconi Communications Canada Inc                  Computer Sciences Canada Inc
    MEXICO            Marconi Communications de Mexico S.A. de C.V       CSC Computer Sciences S. De R.L. de C.V
                         Marconi Communications Telemulti Ltda
    BRAZIL               Marconi Communications Telemulti Ltda            CSC Computer Sciences do Brasil Ltda
 SOUTH AFRICA          Marconi Communications South Africa (pty)        CSC Computer Sciences (South Africa) (Pty)
                                          Ltd                                            Limited
</TABLE>

<PAGE>
                                                 SCHEDULE 3 - INTERNAL SERVICES

                                   SCHEDULE 3

                               INTERNAL SERVICES

INTERPRETATION

For the purposes of this Schedule 3 (Internal Services), the Parties
acknowledge that the services referenced below are described as obligations of
the "Supplier". Notwithstanding this, the Parties acknowledge that these
services are those which were provided by the Marconi Group from its own
resources or procured by the Marconi Group from third parties immediately prior
to the date of this Agreement.

PART 1:  SERVICES

The services described in Schedule 1 (Service Level Agreement) to the Master
Services Agreement, excluding the services described in Schedule 1 (Service
Level Agreement) to the BT Sub-Contract.

PART 2: SITES

The sites set out in Schedule 1 (Service Level Agreement) to the Master
Services Agreement (including those sites set out in Appendices A (Sites), C
(Asia-Pac Services) and D (Transferring Out Entities)).

                                      34
<PAGE>
                                                        SCHEDULE 4 - WARRANTIES

                                   SCHEDULE 4

                                   WARRANTIES

IT EQUIPMENT

1.1      On Completion, Marconi or the relevant member of the Marconi Group
         will have good title to all the IT Equipment free from and clear of
         all liens, charges, mortgages, or similar encumbrances but excluding
         liens or licences arising in the ordinary course of business which are
         fairly disclosed in the Disclosure Letter.

1.2      The IT Equipment and the Leased Equipment at the date of this
         Agreement is in sufficient working order to enable members of the CSC
         Group to provide the IT Services and has been regularly and
         appropriately maintained and supported and so far as Marconi is aware
         no material item of the IT Equipment or the Leased Equipment is
         dangerous, or requires renewal or replacement.

1.3      The IT Equipment and the Leased Equipment comprise as at the date of
         this Agreement all the material hardware and information technology
         assets and equipment used by the Marconi Controlled Group to provide
         the Internal Services.

1.4      The net book value at which each item of IT Equipment are listed on
         the Marconi Asset Registers accurately and fairly reflects the net
         book value of such item of IT Equipment in the books of the Marconi
         Group at 31 October 2002, determined by depreciating the value of the
         equipment on a straight line basis in accordance with the Marconi
         Group's generally applicable accounting principles for the equipment
         in question.

2.       IN-SCOPE CONTRACTS

2.1      MATERIAL IN-SCOPE CONTRACTS VALID

         Marconi is not aware of the invalidity of or any grounds for
         rescission, avoidance or repudiation of any In-Scope Contract
         involving an annual expenditure of total value of [***]or greater
         (each being a "MATERIAL CONTRACT") and neither it nor any other member
         of the Marconi Group has received written notice of any intention to
         terminate any such In-Scope Contract.

2.2      NO DEFAULT

         Neither Marconi nor (so far as Marconi is aware) any other party to
         any Material Contract is in material default or breach under it, and
         no Material Contract is the

                                      35
<PAGE>
         subject of dispute or a claim nor so far as Marconi is aware are there
         any circumstances which might give rise to such a dispute or claim.

3.       EMPLOYEES

3.1      All the UK, European and Non European Transferring Employees listed in
         Schedule 3 (The Employees) to each of the Transfer Agreements are
         primarily engaged immediately prior to Completion (as defined in the
         relevant Transfer Agreement) by Marconi or a member of the Marconi
         Group in performing services which are the same or similar to the
         Services (the "BUSINESS"). The Employees are all directly employed by
         Marconi or a member of the Marconi Group.

         DETAILS OF EMPLOYEES

3.2      In relation to each of the Employees there are contained in or
         attached to the Disclosure Letter full and complete particulars or
         copies of:

         (a)      standard form current written service or employment
                  agreements or particulars of employment (as appropriate) and
                  including the notice periods applicable and issued to each
                  category of Employee; and

         (b)      any procedures affecting their terms of employment, including
                  disciplinary or grievance procedures and any procedures to be
                  followed in the case of redundancy or dismissal.

3.3      In relation to each of the Employees there are contained in or
         attached to the Disclosure Letter full, complete and accurate
         particulars or copies of:

         (a)      their name, ID number, age, sex, date of commencement of
                  employment with Marconi or the relevant member of the Marconi
                  Group;

         (b)      their rate of remuneration, bonus and commission, any other
                  benefit of any kind to which they are entitled or which are
                  regularly provided or made available to them, entitlement to
                  holidays and holiday bonuses, and working hour arrangements
                  (so far as not disclosed pursuant to sub-Paragraph (a)
                  above).

         NO EMPLOYEE BENEFIT PLANS

3.4      There are no profit-sharing, share option or share incentive schemes
         or other employee benefit plans in relation to any Employee.

                                      36
<PAGE>
3.5      No Employee listed in Schedule 3 (The Employees) to any of the
         Transfer Agreements has a right to return to work (whether for reasons
         connected with maternity leave or absence by reason of illness or
         incapacity or otherwise).

3.6      No Employee has been given notice of termination of his employment (or
         had his employment terminated without notice) for a period of twelve
         (12) months prior to Completion.

3.7      Full particulars are contained in the Disclosure Letter of any
         outstanding offer of employment made to any person by Marconi or the
         relevant member of the Marconi Group in relation to the Business and
         there is no person who has accepted such an offer of employment made
         by Marconi or the relevant member of the Marconi Group but whose
         employment has not yet started.

3.8      Full particulars are contained in the Disclosure Letter of any
         agreement for the provision of consultancy services or the services of
         personnel to the Business and of the terms applicable to the
         secondment to the Business of any person.

         CHANGES IN BENEFITS

3.9      As far as Marconi or the relevant member of the Marconi Group is
         aware, it has not offered, promised or agreed for the future any
         variation in any contract of employment or any contract for services
         in respect of the Employees employed by Marconi or the relevant member
         of the Marconi Group in respect of whom liability is deemed by the
         Regulations or its equivalent in any other jurisdiction, to pass to
         CSC or a member of the CSC Group.

3.10     No order that has not yet been complied with has been made for the
         reinstatement or re-engagement following Completion of any of the
         Employees or any person formerly employed or engaged in the Business.

3.11     Except in respect of normal accruals of remuneration or emoluments of
         employment, no sum is payable to or for the benefit of any Employee or
         their dependants nor is Marconi or any member of the Marconi Group a
         party to any arrangements or promise to make or is in the habit of
         making ex gratia or voluntary payments by way of bonus, gratuity,
         allowance or the like to any such persons and there are no schemes of
         arrangements (whether legally enforceable or not) for the payment of
         disability or similar schemes or arrangements in operation or
         contemplated in respect of any of the Employees or their dependants or
         persons formerly employed or engaged in the Business or their
         dependants under which CSC or a member of the CSC Group may become
         liable to make payments or to provide equivalent benefits.

                                      37
<PAGE>
3.12     Marconi or the relevant member of the Marconi Group does not have an
         obligation to make any payment on redundancy in excess of the
         statutory redundancy payment and Marconi or the relevant member of the
         Marconi Group has not operated any discretionary practice of making
         any such excess payments.

3.13     There is not and during the twelve (12) months preceding the date of
         this Agreement there has not been any industrial action (other than
         insignificant unofficial action) by the Employees affecting the
         Business and to the best of the knowledge, information and belief of
         Marconi or the relevant member of the Marconi Group, there are no
         facts or circumstances which might give rise to such industrial action
         (other than insignificant unofficial action).

3.14     Marconi or any member of the Marconi Group is not a party to any
         collective agreement or other similar agreement (such as a dismissal
         procedures agreement) or trade dispute (or related proceedings) with
         unions or other employee representatives or otherwise relating to the
         Employees as one or more collective units. To the best of the
         knowledge, information and belief of Marconi or the relevant member of
         the Marconi Group there are no facts or circumstances which might give
         rise to Marconi or the relevant member of the Marconi Group becoming a
         party to any such agreement or becoming involved in any such dispute
         or proceedings.

3.15     Marconi or the relevant member of the Marconi Group is not engaged or
         involved in any dispute, claim or legal proceedings (whether arising
         under contract, common law, statute or in equity) with any of the
         Employees nor with any other person employed by Marconi or the
         relevant member of the Marconi Group in respect of whom liability is
         deemed to pass to CSC or any member of the CSC Group by virtue of the
         Regulations or its equivalent in any other jurisdiction, and so far as
         Marconi or the relevant member of the Marconi Group is aware there is
         no likelihood of any such dispute, claim or proceedings arising at any
         time.

4.       PENSIONS

         In this part of this Schedule, the following terms have the following
         definitions:

         "GEC PLAN" means[***];

         "MARCONI PENSION SCHEME(S)" means[***];

         "MARCONI WELFARE SCHEME(S)" means the[***]; and

                                      38
<PAGE>
         "STATE SCHEME(S)" means arrangements under public law statute or
         regulation to which Marconi or a member of the Marconi Group
         contributes in compliance with applicable law or regulation.

4.1      NO OTHER SCHEMES

         So far as is material, other than the Marconi Pension Scheme(s), the
         Marconi Welfare Scheme(s), the State Scheme(s) and save as disclosed
         in the Disclosure Letter, there is not in operation nor is there any
         obligation, nor has any proposal been announced either verbally or in
         writing, to establish a superannuation, pension, retirement, life
         assurance, death benefit, sickness, accident benefit or other similar
         scheme or arrangement in respect of which Marconi has any legally
         binding liability to contribute or incur an obligation to or in
         respect of any Employee.

4.2      INFORMATION

4.2.1    Details of whether the Marconi Pension Scheme(s) are Mixed Scheme(s)
         (for the purposes of paragraph 1 of Part 3 of Schedule 8 (Pensions and
         Related Benefits) to the Transfer Agreements), funded self-contained
         plans (for the purposes of paragraph 2 of Part 3 of Schedule 8
         (Pensions and Related Benefits) to the Transfer Agreements) or
         unfunded schemes (for the purposes of paragraph 3 of Part 3 of
         Schedule 8 (Pensions and Related Benefits) to the Transfer Agreements
         ) have been given to the Supplier.

4.2.2    Details of the Marconi Pension Scheme(s) and Marconi Welfare Scheme(s)
         have been given to CSC or a member of the CSC Group in the form (so
         far as relevant in each case) of:

         (a)      a copy of the governing documentation of the Marconi Pension
                  Scheme(s) and Marconi Welfare Scheme(s);

         (b)      a copy of the current explanatory booklet issued to any
                  Employee who is or is entitled to become a member of a
                  Marconi Pension Scheme;

         (c)      a copy of the audited accounts and financial statements of
                  the Marconi Pension Scheme(s) for the last scheme year;

         (d)      the latest actuarial valuation report of the Marconi Pension
                  Scheme(s) that provide defined benefits; and

         (e)      a list of the Employees who are members of the Marconi
                  Pension Scheme(s) and the Marconi Welfare Scheme(s) together
                  with sufficient data to enable

                                      39
<PAGE>
                  CSC or the relevant member of the CSC Group to ascertain
                  their benefit entitlements under the Marconi Pension
                  Scheme(s) and Marconi Welfare Scheme(s).

4.2.3    The details of the Marconi Pension Scheme(s) and Marconi Welfare
         Scheme(s) which have been given to CSC or a member of the CSC Group
         referred to in paragraphs (a), (b), (c), (d) and (e) above are
         sufficient and complete in all material respects to enable CSC or the
         relevant member of the CSC Group to ascertain benefits provided under
         the Marconi Pension Schemes and Marconi Welfare Scheme(s) in respect
         of the Employees and the value of such benefits.

4.3      CONTRIBUTION RATES

         Details of the current contribution rate(s) contributed to the Marconi
         Pension Scheme(s) and Marconi Welfare Scheme(s) by Marconi or the
         relevant member of the Marconi Group have been given to CSC or a
         member of the CSC Group.

4.4      EXERCISE OF DISCRETIONS

         Except as disclosed in the Disclosure Letter, no discretion or power
         has been exercised under the Marconi Pension Scheme(s) or the Marconi
         Welfare Scheme(s) in respect of any Employee to augment benefits,
         provide a benefit which would not otherwise be provided or pay a
         contribution which would not otherwise have been paid.

4.5      AMENDMENT AND TERMINATION

         Except as disclosed in the Disclosure Letter, no plan, proposal or
         intention to amend, discontinue (in whole or in part) or exercise a
         discretion in relation to the Marconi Pension Scheme(s) or the Marconi
         Welfare Scheme(s) with respect to any Employee has been communicated
         to any Employee who is a member of a Marconi Pension Scheme or the
         Marconi Welfare Scheme nor has any act or event occurred which could
         give rise to a full or partial discontinuance of any Marconi Pension
         Scheme or the Marconi Welfare Scheme with respect to any Employee
         under applicable law.

4.6      FUNDING

         No contribution due to the Marconi Pension Scheme(s) or the Marconi
         Welfare Scheme(s) is/are unpaid (other than those payable in the month
         in which Completion takes place or the immediately preceding month)
         which unpaid amounts will be paid

                                      40
<PAGE>
         by Marconi in accordance with the terms of the Marconi Pension
         Scheme(s) or the Marconi Welfare Scheme(s) and applicable law.

4.7      APPROVAL

         The [***]is an exempt approved scheme within the meaning of s592 ICTA.

4.8      CONTRACTING-OUT

         The [***]is not a contracted-out scheme within the meaning of the
         Pension Schemes Act 1993.

4.9      COMPLIANCE

         Each of the Marconi Pension Scheme(s) and the Marconi Welfare
         Scheme(s) with respect to Employees has been administered and invested
         in accordance with its terms and with the provisions of its governing
         documentation. Each of the Marconi Pension Scheme(s) and the Marconi
         Welfare Scheme(s) and each of the funds established thereunder is in
         compliance with the law applicable to the jurisdiction of its
         residence with respect to Employees.

4.10     NO DISPUTES

         There is no pending or threatened litigation, arbitration,
         proceedings, investigations or other claims, other than routine claims
         for benefits, relating to the Marconi Pension Scheme(s), the Marconi
         Welfare Scheme(s) or the State Scheme(s) or any benefits provided
         under them in relation to any of the Employees.

4.11     US SCHEMES

4.11.1   Each Marconi Pension Scheme intended to be a qualified plan under
         Section 401(a) of the United States Internal Review Code of 1986, as
         amended ("THE CODE") has received a favourable determination letter
         from the Internal Revenue Services that it is qualified under Code
         Section 401(a) and that its related trust is exempt from federal
         income tax under Code Section 501(a) and such determination letter has
         not been revoked.

4.11.2   Neither Marconi nor any member of the Marconi Group has established,
         maintained or contributed to or otherwise participated in, or had an
         obligation to maintain, contribute to, or otherwise participate in,
         any Multiemployer Plan (as that term is defined in section 3(37)(A) of
         the United States Employee Retirement Income

                                      41
<PAGE>
         Security Act of 1973, as amended ("ERISA")) within the last six years
         in respect of the US Transferring Employees.

4.11.3   Except to the extent required under ERISA Section 601 et seq. and Code
         Section 4980B, neither Marconi nor any member of the Marconi Group is
         obliged to provide health or welfare benefits to any Non-European
         Transferring Employee employed in the United States prior to the
         Completion Date or dependant or beneficiary thereof following such
         employee's retirement or other termination of service.

4.11.4   Marconi and the other relevant members of the Marconi Group have
         complied with the provisions of ERISA Section 601 et seq. and Code
         Section 4980B and with the provisions of ERISA Section 701 et seq. and
         Subtitle K of the Code.

                                      42
<PAGE>
                                             SCHEDULE 5 - LIMITATIONS ON CLAIMS

                                   SCHEDULE 5

                             LIMITATIONS ON CLAIMS

1.       CSC TO NOTIFY POTENTIAL CLAIMS

         If CSC becomes aware of any fact, matter, event or circumstance by
         virtue of which in its reasonable judgment at the time Marconi is or
         may become liable to make any payment under any of the
         Warranties[***], CSC shall as soon as practicable [***] inform Marconi
         in writing specifying in reasonable detail the fact, matter, event or
         circumstance giving rise (or which may give rise) to that liability
         and giving an estimate of the amount which may be claimed against
         Marconi in respect of that liability. For the avoidance of doubt, any
         failure to give notice under this paragraph 1 shall not invalidate any
         claim which CSC may subsequently make provided that Marconi shall bear
         no liability for any increased Losses which CSC or any member of the
         CSC Group may suffer or incur as a result of failing to provide notice
         in accordance with this paragraph.

2.       TIME LIMIT ON CLAIMS

2.1      No claim shall be brought by CSC under the Warranties unless it shall
         have given notice in writing of that claim specifying (in reasonably
         sufficient detail) the matter giving rise to the claim, the nature of
         the claim and, so far as practicable, the amount claimed to Marconi
         not later than the expiry of a period of [***]commencing on:

         (a)      in the case of any claim or claims for breach of the
                  Warranties in paragraph 1 of Schedule 4 (Warranties), the
                  Completion Date applicable to the IT Equipment in respect of
                  which such claim or claims have arisen;

         (b)      in the case of any claim or claims for breach of the
                  Warranties in paragraph 2 of Schedule 4 (Warranties) insofar
                  as the claim relates to an In-Scope Contract, the In-Scope
                  Contract Completion Date applicable to the In-Scope Contract
                  in question; and

         (c)      in the case of any claim or claims for breach of the
                  Warranties in paragraphs 3 and 4 of Schedule 4 (Warranties),
                  the Completion Date (as defined in the applicable Transfer
                  Agreement) applicable to the Employees in question.

                                      43
<PAGE>
2.2      [***]

3.       SPECIFIC LIMITATIONS

         CSC shall not be entitled to claim against Marconi:

         (a)      under the Warranties [***]until the amount (excluding
                  interest and costs) that would be recoverable from Marconi in
                  respect of the claim, when aggregated with:

                  (i)      the amount (excluding interest and costs)
                           recoverable in respect of any other claims made
                           against Marconi under the Warranties [***]; and

                  (ii)     the aggregate amount (excluding interest and costs)
                           recoverable in respect of any other claims made
                           against any member of the Marconi Group under any
                           Transfer Agreement;

                  exceeds a threshold of [***]pounds ((pound)[***]) in which
                  event, Marconi shall be liable for the full amount of all
                  such claims and not the amount by which that threshold is
                  exceeded only, subject to Paragraph 4;

         (b)      under the Warranties or under Clause 9.3 (Third Party
                  Beneficiaries) to the extent that it applies to a breach of
                  the Warranties only:

                  (i)      in respect of any matters referred to in this
                           Agreement or fairly disclosed in the Disclosure
                           Letter;

                  (ii)     in respect of any matter or thing after the date of
                           this Agreement done or omitted to be done at the
                           written request of or with the written consent of
                           CSC or any other member of the CSC Group;

                  (iii)    [***]

                  (iv)     if and to the extent that:

                           (A)      the claim would not have arisen but for any
                                    act, omission, transaction or arrangement
                                    (or any combination of any of the same),
                                    after the date as at which the relevant
                                    Warranty is given pursuant to Clause 7.1
                                    (Warranties), of CSC or any member of the
                                    CSC Group or their respective directors,
                                    employees or agents except to the extent
                                    that such act, omission, transaction or
                                    arrangement has been undertaken[***];

                                      44
<PAGE>
                           (B)      the claim arises or is increased as a
                                    result of the passing of, or any change in
                                    or any change in the interpretation of, any
                                    law, rule, regulation or administrative
                                    practice of any government, government
                                    department, local or state agency,
                                    authority regulatory or fiscal body after
                                    the date of this Agreement;

                           (C)      the claim arises or is increased as a
                                    result of CSC not complying with its
                                    obligations under this Agreement; or

                           (D)      the damage, liability or loss suffered or
                                    incurred by CSC has been made good or has
                                    been otherwise compensated for without cost
                                    to CSC or any member of the CSC Group.

4.       LIMITS OF LIABILITY UNDER THE ASSET TRANSFER AGREEMENT AND THE
         TRANSFER AGREEMENTS

         The aggregate liability of each of the Marconi Group and the CSC Group
         in respect of:

         (i)      all claims under or in connection with [***]the
                  Warranties[***]; and

         (ii)     all claims under or in connection with each and every
                  Transfer Agreement [***] under the Warranties[***],

         shall, save and except in the case of, a breach by Marconi or any of
         the members of the Marconi Group of any of its statutory or
         contractual obligations relating to health and safety, not exceed a
         maximum sum equal to (pound)[***] ([***]pounds) [***]. For the
         avoidance of doubt, this paragraph does not limit the obligation of
         any members of the CSC Group to pay the Vendor Equipment Consideration
         to the Marconi Group in accordance with this Agreement and/or any
         Transfer Agreement.

5.       NO DOUBLE RECOVERY

         CSC shall not be entitled to recover more than once for the same Loss
         in respect of any fact, matter, event or circumstance giving rise to a
         claim under the Warranties [***], the Asset Transfer Agreement or any
         other contract or document entered into pursuant to those agreements.
         Where any fact, matter, event or circumstance giving rise to a claim
         under the Warranties results in an adjustment to the Charges under a
         True-up Process, the financial adjustment so made shall be excluded
         from the quantum of any Loss otherwise recoverable for the breach of
         the Warranties in question.

                                      45
<PAGE>
6.       RECOVERY FROM THIRD PARTIES

6.1      If CSC is or may be entitled to recover from some other person (other
         than an insurer) any loss or damage which gives rise to any claim
         under the Warranties[***], CSC shall take all appropriate steps to
         enforce that recovery (keeping Marconi informed on a timely basis of
         any action so taken) before taking any action (other than notifying
         Marconi of the claim) against Marconi and any liability of Marconi
         under this Agreement shall be reduced by the amount (including
         interest (if any)) recovered from the third party less any costs
         reasonably incurred by CSC in respect of such recovery.

6.2      If, notwithstanding any other provision of this Schedule, any payment
         is made by Marconi in or towards the settlement of any claim made
         under the Warranties [***]and CSC subsequently recovers or procures
         the recovery from a third party (other than insurers) of an amount
         which is referable to that claim (and, in the event that CSC becomes
         entitled subsequent to payment by Marconi to make recovery, CSC
         undertakes to take all necessary steps to enforce that recovery) CSC
         shall forthwith repay to Marconi an amount equal to whichever is the
         lesser of:

         (a)      the amount (including interest (if any)) recovered from the
                  third party less any costs reasonably incurred by CSC in
                  respect of such recovery; and

         (b)      the amount paid by Marconi in or towards settlement of the
                  claim.

7.       CONDUCT OF CLAIMS

         If CSC becomes aware of any actual or threatened assessment, claim,
         action or demand by a third party against it (a "third party claim")
         which causes or may cause Marconi to be liable under the Warranties
         [***]then:

         (a)      CSC shall at the written request of Marconi:

                  (i)      take such action as Marconi may reasonably require
                           to avoid, contest, dispute, resist, appeal,
                           compromise or defend the third party claim
                           (including, but without limitation, making counter
                           claims and exercising all rights of set off against
                           third parties);

                  (ii)     if so requested, permit Marconi or procure that
                           Marconi is permitted in the name of and on behalf of
                           CSC to have the sole conduct of all proceedings
                           relating to the third party claim as Marconi may
                           deem appropriate including the appointment of
                           solicitors and other

                                      46
<PAGE>
                           professional advisers and the making of any
                           settlement or compromise of the third party claim;
                           and

                  (iii)    render or cause to be rendered to Marconi all
                           assistance as Marconi may reasonably require
                           (including providing access to information and to
                           employees of CSC) for the purpose of avoiding,
                           contesting, disputing, resisting, appealing,
                           compromising or defending the third party claim,

                  provided that:

                           (A)      Marconi shall indemnify CSC against all
                                    costs reasonably incurred by it in
                                    complying with its respective obligations
                                    under Paragraphs 7(a) (i), (ii) and (iii)
                                    above; and

                           (B)      Marconi shall not make any settlement or
                                    compromise of the third party claim which
                                    is likely to affect the future liabilities
                                    of CSC without the prior approval of CSC,
                                    that approval not to be unreasonably
                                    withheld or delayed;

         (b)      CSC will not make or attempt to make any admission of
                  liability, agreement, settlement or compromise in relation to
                  a third party claim without the consent of Marconi such
                  consent not to be unreasonably withheld or delayed;

         (c)      CSC shall in any event keep Marconi informed as to the steps
                  which are being taken in connection with the third party
                  claim.

8.       DUTY TO MITIGATE

         CSC shall in relation to any loss or liability which might give rise
         to a claim under the Warranties [***]against Marconi take all
         reasonable steps to avoid or mitigate that loss or liability.

                                      47
<PAGE>
                                                                EXECUTION PAGES

                                   SECTION 6

                                     BUDGET

1.       OVERVIEW

         This schedule shows the baseline costs (with supporting schedules) as
         provided by Marconi along with the associated volume metrics provided
         by CSC and BT.

         In the following tables, information contained in the column headed
         "Original" is provided for information purposes only, and will be
         reviewed between the Parties following Cutover (as defined in the
         Master Services Agreement) but, for the avoidance of doubt, will not
         be verified as part of any True-up Process. [***]

EXECUTION:

The Parties have shown their acceptance of the terms of this Agreement by
executing it on the date first written above.

SIGNED by CHRISTOPHER EVANS                              )
                                                         ) /s/ CHRISTOPHER EVANS
duly authorised for and on behalf of                     )
MARCONI CORPORATION PLC                                  )

Witness's signature: /s/ ANNA BUTLER

Name (in capitals): ANNA BUTLER

Address: FLAT 2  28 GREAT JAMES ST  LONDON WCIN 3E7

Occupation: TRAINEE SOLICITOR

SIGNED by GUY HAINS                                      )
                                                         ) /s/ GUY HAINS
duly authorised for and on behalf of                     )
CSC INTERNATIONAL SYSTEMS                                )
MANAGEMENT INC.                                          )

                                      48
<PAGE>
Witness's signature: /s/ A M GRIMMETT

Name (in capitals): ANA MARIA GRIMMETT

Address: FLAT 4 10 CAMBART RD PUTNEY LONDON SW15 6GW

Occupation: TRAINEE SOLICITOR

                                      49<PAGE>
                                                                   Exhibit 4.123

(CLIFFORD CHANCE LETTERHEAD)

                                                                  CONFORMED COPY

                                   L50,000,000

              COMMITTED MULTICURRENCY REVOLVING FACILITY AGREEMENT

                               dated 27 March 2003

                                       for

                             MARCONI BONDING LIMITED

                                  as Applicant

                                      with

                             MARCONI CORPORATION plc

                                   as Company

                                      with

                                  HSBC BANK plc

                      acting as Agent and Security Trustee

                                   AND OTHERS
<PAGE>
                                                  CONTENTS

<TABLE>
<CAPTION>
CLAUSE                                                                                                   PAGE
<S>                                                                                                      <C>
1.     Definitions And Interpretation.................................................................     1
2.     The Facility...................................................................................    12
3.     Purpose........................................................................................    13
4.     Conditions Of Utilisation......................................................................    13
5.     Utilisation....................................................................................    14
6.     Revaluation Of Bonds...........................................................................    16
7.     Long Dated Bonds...............................................................................    17
8.     Bonds..........................................................................................    17
9.     Repayment, Prepayment And Cancellation.........................................................    21
10.    Default Interest...............................................................................    24
11.    Changes To The Calculation Of Interest.........................................................    25
12.    Break Costs....................................................................................    26
13.    Fees...........................................................................................    26
14.    Tax Gross Up And Indemnities...................................................................    27
15.    Increased Costs................................................................................    29
16.    Other Indemnities..............................................................................    30
17.    Mitigation By The Banks........................................................................    31
18.    Costs And Expenses.............................................................................    31
19.    Guarantee And Indemnity........................................................................    32
20.    Representations................................................................................    34
21.    Information Undertakings.......................................................................    36
22.    Security Undertakings..........................................................................    37
23.    General Undertakings...........................................................................    39
24.    Events Of Default..............................................................................    39
25.    Changes To The Banks...........................................................................    42
26.    Changes To The Obligors........................................................................    45
27.    Role Of The Agent And The Security Trustee.....................................................    46
28.    Conduct Of Business By The Finance Parties.....................................................    55
29.    Sharing Among The Finance Parties..............................................................    55
30.    Payment Mechanics..............................................................................    56
31.    Set-Off........................................................................................    59
</TABLE>
<PAGE>
<TABLE>
<S>                                                                                                       <C>
32.    Notices........................................................................................    59
33.    Calculations And Certificates..................................................................    61
34.    Partial Invalidity.............................................................................    61
35.    Remedies And Waivers...........................................................................    61
36.    Amendments And Waivers.........................................................................    61
37.    Counterparts...................................................................................    62
38.    Governing Law .................................................................................    62
39.    Enforcement....................................................................................    62

SCHEDULE 1 The Original Parties.......................................................................    64
       Part A        The Original Issuing Banks.......................................................    64
       Part B        The Original Banks...............................................................    65
       Part C        The Original Indemnifying Companies..............................................    66

SCHEDULE 2 Conditions Precedent.......................................................................    67
       Part A Conditions Precedent To Initial Utilisation.............................................    67
       Part B Conditions Precedent Required To Be  Delivered By An Additional Obligor.................    69

SCHEDULE 3 Utilisation Request........................................................................    70

SCHEDULE 4 Mandatory Cost Formulae....................................................................    72

SCHEDULE 5 Form Of Transfer Certificates..............................................................    75

SCHEDULE 6 Form Of Accession Letter...................................................................    77

SCHEDULE 7 Timetables.................................................................................    78

SCHEDULE 8 Form Of LMA Confidentiality Undertaking....................................................    79

SCHEDULE 9 Draft Indenture Terms......................................................................    84

SCHEDULE 10 Form Of Scheme Expenses Bond..............................................................    85
</TABLE>
<PAGE>
THIS AGREEMENT is dated 27 March 2003 and made between:

(1)      MARCONI BONDING LIMITED (the "APPLICANT");

(2)      MARCONI CORPORATION PLC (the "COMPANY");

(3)      THE FINANCIAL INSTITUTIONS listed in Part A of Schedule 1 (The Original
         Issuing Banks) (the "ORIGINAL ISSUING BANKS");

(4)      THE FINANCIAL INSTITUTIONS listed in Part B of Schedule 1 (The Original
         Banks) (the "ORIGINAL BANKS");

(5)      HSBC BANK PLC as agent of (and security trustee for) the other Finance
         Parties (the "AGENT" and the "SECURITY TRUSTEE" respectively); and

(6)      THE COMPANIES listed in Part C of Schedule 1 (The Original Indemnifying
         Companies) (the "ORIGINAL INDEMNIFYING COMPANIES").

IT IS AGREED as follows:

1.       DEFINITIONS AND INTERPRETATION

1.1      DEFINITIONS

         In this Agreement:

         "ACCESSION LETTER" means a document substantially in the form set out
         in Schedule 6 (Form of Accession Letter).

         "ADDITIONAL INDEMNIFYING COMPANY" means a company which becomes an
         Indemnifying Company in accordance with Clause 26 (Changes to the
         Obligors).

         "ADDITIONAL COST RATE" has the meaning given to it in Schedule 4
         (Mandatory Cost Formulae).

         "AFFILIATE" means, in relation to any person, a Subsidiary of that
         person or a Holding Company of that person or any other Subsidiary of
         that Holding Company.

         "AGENCY FEE LETTER" means the letter dated about the date of this
         Agreement between the Agent, the Security Trustee and the Company
         setting out the fees referred to in Clause 13.5 (Agency Fee).

         "AGENT'S SPOT RATE OF EXCHANGE" means the Agent's spot rate of exchange
         for the purchase of the relevant currency or relevant currencies with
         the Base Currency in the London foreign exchange market at or about
         11:00 a.m. on a particular day.

         "AUTHORISATION" means an authorisation, consent, approval, resolution,
         licence, exemption, filing, notarisation, registration, recordal or
         enrolment.

         "AVAILABILITY PERIOD" means, subject to Clause 2.3 (Extension of the
         Facility), the period from and including the Effective Date to and
         including the date falling 18 Months after the Effective Date.
<PAGE>
         "AVAILABLE COMMITMENT" means a Bank's Commitment minus:

         (a)      the Base Currency Amount of its participation in any
                  outstanding Bonds; and

         (b)      in relation to any proposed Utilisation, the Base Currency
                  Amount of its participation in any Bonds that are due to be
                  issued on or before the proposed Utilisation Date,

         other than that Bank's participation in any Bonds that are due to be
         repaid or prepaid in full on or before the proposed Utilisation Date.

         "AVAILABLE FACILITY" means the aggregate for the time being of each
         Bank's Available Commitment.

         "BANK" means:

         (a)      any Original Bank and (unless the context requires otherwise)
                  any Original Issuing Bank; and

         (b)      any bank, financial institution, trust, fund or other entity
                  which has become a Party in accordance with Clause 25 (Changes
                  to the Banks),

         which in each case has not ceased to be a Party in accordance with the
         terms of this Agreement.

         "BASE CURRENCY" means sterling.

         "BASE CURRENCY AMOUNT" means:

         (a)      in relation to a Utilisation, the amount specified in the
                  Utilisation Request for that Utilisation (or, if the amount
                  requested is not denominated in the Base Currency, that amount
                  converted into the Base Currency at the Agent's Spot Rate of
                  Exchange on the date which is three Business Days before the
                  Utilisation Date or, if later, on the date the Agent receives
                  the Utilisation Request and as adjusted under Clause 6
                  (Revaluation of Bonds) at six-monthly intervals) adjusted to
                  reflect any repayment or prepayment of the Utilisation; and

         (b)      in relation to any cash security provided pursuant to Clause
                  22 (Security Undertakings) and to any cash cover provided
                  generally pursuant to the terms of this Agreement, the amount
                  thereof (if the same has been provided in the Base Currency)
                  or, if the same has been provided in a currency other than the
                  Base Currency, the amount thereof in the Base Currency
                  calculated by notionally converting such cash security or cash
                  collateral into the Base Currency on the basis of the Agent's
                  Spot Rate of Exchange on the date on which such amount falls
                  to be determined pursuant to the provisions of this Agreement.

         "BOND" means a bond, guarantee, letter of credit, indemnity or similar
         instrument to be utilised for the purposes set out in Clause 3.1
         (Purpose) in a form requested by the Applicant and agreed with the
         relevant Issuing Bank in accordance with sub-clause 5.2.1(c) of Clause
         5.2 (Completion of a Utilisation Request).

                                      -2-
<PAGE>
         "BREAK COSTS" means the amount (if any) by which:

         (a)      the interest which a Bank should have received for the period
                  from the date of receipt of all or any part of its
                  participation in an Unpaid Sum to the last day of the current
                  Interest Period in respect of that Unpaid Sum, had the Unpaid
                  Sum received been paid on the last day of that Interest
                  Period;

         exceeds:

         (b)      the amount which that Bank would be able to obtain by placing
                  an amount equal to the Unpaid Sum received by it on deposit
                  with a leading bank in the Relevant Interbank Market for a
                  period starting on the Business Day following receipt or
                  recovery and ending on the last day of the current Interest
                  Period.

         "BUSINESS DAY" means a day (other than a Saturday or Sunday) on which
         banks are open for general business in London and:

         (a)      (in relation to any date for payment or purchase of a currency
                  other than euro) the principal financial centre of the country
                  of that currency; or

         (b)      (in relation to any date for payment or purchase of euro) any
                  TARGET Day.

         "CASH COLLATERAL RELEASE" shall have the meaning ascribed thereto in
         the Notes Indentures.

         "COMMITMENT" means:

         (a)      in relation to an Original Bank, the amount in the Base
                  Currency set opposite its name under the heading "Commitment"
                  in Part B of Schedule 1 (The Original Banks) and the amount of
                  any other Commitment transferred to it under this Agreement;
                  and

         (b)      in relation to any other Bank, the amount in the Base Currency
                  of any Commitment transferred to it under this Agreement,

         to the extent not cancelled, reduced or transferred by it under this
         Agreement.

         "CONFIDENTIALITY UNDERTAKING" means a confidentiality undertaking
         substantially in a recommended form of the LMA as set out in Schedule 8
         (LMA Form of Confidentiality Undertaking) or in any other form agreed
         between the Company and the Agent.

         "DEFAULT" means an Event of Default or any event or circumstance
         specified in Clause 24 (Events of Default) which would (with the expiry
         of a grace period, the giving of notice, the making of any
         determination under the Finance Documents or any combination of any of
         the foregoing) be an Event of Default.

         "DOLLAR AMOUNT" means, in relation to any Bond in respect of which such
         amount is to be calculated, the amount calculated by notionally
         converting into dollars the Base Currency Amount of that Bond (ignoring
         for this purpose any cash cover provided in respect of such Bond) on
         the basis of the Agent's Spot Rate of Exchange on the date of such
         notional calculation.

                                      -3-
<PAGE>
         "DRAFT INDENTURE TERMS" means the draft terms of the Notes Indentures,
         as set out in the document entitled "Summary of the Terms of the New
         Senior Notes and the new Junior Notes", a copy of which is attached at
         Schedule 9 (Draft Indenture Terms).

         "EFFECTIVE DATE" means the date when the office copy of the Orders of
         the High Court sanctioning the Scheme is delivered to the Registrar of
         Companies for registration as required by Section 425 of the Companies
         Act 1985 (as amended).

         "EQUITY INTERESTS" shall have the meaning ascribed thereto in the Notes
         Indentures.

         "ESCROW AGREEMENT" means the escrow agreement dated on or about the
         date of this Agreement between the Company, the Escrow Bank and The Law
         Debenture Trust Corporation P.L.C. (as Security Trustee) with respect
         to the escrow accounts referred to therein (including the Existing
         Performance Bond Escrow Account).

         "EVENT OF DEFAULT" means any event or circumstance specified as such in
         Clause 24 (Events of Default).

         "EXISTING PERFORMANCE BOND ESCROW ACCOUNT RELEASES" means any release
         and transfer of an amount or amounts of cash from the Existing
         Performance Bond Escrow Account which the Company is entitled to
         require the Security Trustee (as defined in the Escrow Agreement) to
         instruct the Escrow Bank (as defined in the Escrow Agreement) to make
         to the Agent and/or the Security Trustee.

         "EXISTING PERFORMANCE BONDS" has the meaning ascribed thereto in the
         Notes Indentures.

         "EXISTING PERFORMANCE BOND ESCROW ACCOUNT" means the escrow account
         established pursuant to the Escrow Agreement to be used to satisfy
         liabilities owed by the Company and its Subsidiaries to certain
         providers of Existing Performance Bonds in respect of such Existing
         Performance Bonds.

         "EXISTING PERFORMANCE BOND RELEASE" means any Cash Collateral Release
         from or in respect of any of the Existing Performance Bonds (but
         excluding any Existing Performance Bond Escrow Account Releases).

         "EXPIRY DATE" means, for a Bond, the last day of its Term.

         "FACILITY" means the revolving facility made available under this
         Agreement as described in Clause 2 (The Facility).

         "FACILITY OFFICE" means the office or offices notified by a Bank to the
         Agent in writing on or before the date it becomes a Bank (or, following
         that date, by not less than five Business Days' written notice) as the
         office or offices through which it will perform its obligations under
         this Agreement.

         "FINANCE DOCUMENT" means this Agreement, any Accession Letter, the
         Security Agreement, the Security Trust and Intercreditor Deed, the
         Agency Fee Letter and any other document designated as such by the
         Agent and the Company.

         "FINANCE PARTY" means the Agent, the Security Trustee, an Issuing Bank
         or a Bank.

                                      -4-
<PAGE>
         "GROUP" means the Company and its Subsidiaries for the time being.

         "GUARANTOR" shall have the meaning ascribed thereto in the Senior Notes
         Indenture.

         "HOLDING COMPANY" means, in relation to a company or corporation, any
         other company or corporation in respect of which it is a Subsidiary.

         "INDEMNIFYING COMPANY" means an Original Indemnifying Company or an
         Additional Indemnifying Company.

         "INDICATIVE HEADS OF TERMS" means the Indicative Non-Binding Heads of
         Terms in relation to, inter alia, the proposed Scheme dated 28 August
         2002 as amended by an addendum dated 13 December 2002.

         "INITIAL CASH SECURITY " has the meaning ascribed thereto in Clause
         22.1 (Initial Cash Security).

         "INTEREST PERIOD" means, in relation to an Unpaid Sum, each period
         determined in accordance with Clause 10.1 (Default interest).

         "INTERIM BONDING FACILITIES" means (1) the interim bonding facilities
         dated 10 May 2002 (as amended) between Barclays Bank PLC, HSBC Bank plc
         and JP Morgan Chase Bank and the Applicant providing for the issuance
         of surety bonds, appeal bonds, bid bonds, performance bonds, letters of
         credit, bank guarantees and other obligations of a like nature and (2)
         the temporary bonding facility dated 8 February 2002 between Barclays
         Bank PLC, HSBC Bank plc and the Applicant providing for the issuance of
         surety bonds, appeal bonds, bid bonds, performance bonds, letters of
         credit, bank guarantees or other obligations of a like nature.

         "INTERIM BONDING FACILITIES RELEASE" means any Cash Collateral Release
         from or in respect of the Interim Bonding Facilities.

         "INTERIM BONDING FACILITIES SECURITY AGREEMENTS" means the security
         over cash agreements dated 10 May 2002 and 29 October 2002 entered into
         between the Applicant and the Security Trustee.

         "ISSUING BANK" means an Original Issuing Bank and any other Bank which
         agrees to be designated by the Agent as an Issuing Bank under this
         Agreement.

         "JUNIOR NOTES INDENTURE" means the indenture pursuant to which the
         Junior Notes are issued.

         "JUNIOR NOTES" means the dollar denominated Guaranteed Junior Secured
         Notes due 2008 issued or to be issued by the Company plus any Junior
         PIK Notes.

         "JUNIOR PIK NOTES" means any Junior Notes issued or deemed to be issued
         and constituting interest paid in kind on outstanding Junior Notes (or
         on Junior PIK Notes).

         "LIBOR" means, in relation to any Unpaid Sum:

         (a)      the applicable Screen Rate; or

                                      -5-
<PAGE>
         (b)      (if no Screen Rate is available for the currency or Interest
                  Period of that Unpaid Sum) the arithmetic mean of the rates
                  (rounded upwards to four decimal places) as supplied to the
                  Agent at its request quoted by the Reference Banks to leading
                  banks in the London interbank market,

         as of the Specified Time on the Quotation Day for the offering of
         deposits in the currency of that Unpaid Sum and for a period comparable
         to the Interest Period for that Unpaid Sum.

         "LONG DATED BOND" has the meaning ascribed thereto in Clause 7.1 of
         Clause 7 (Long Dated Bonds).

         "MAJORITY BANKS" means:

         (a)      until the Total Commitments have been reduced to zero, a Bank
                  or Banks whose Commitments aggregate more than 66 2/3% of the
                  Total Commitments (or, if the Total Commitments have been
                  reduced to zero and there are no Bonds then outstanding,
                  aggregated more than 66 2/3% of the Total Commitments
                  immediately prior to the reduction); or

         (b)      at any other time, a Bank or Banks whose participations in the
                  Bonds then outstanding aggregate more than 66 2/3% of all the
                  Bonds then outstanding.

         "MANDATORY COST" means the percentage rate per annum calculated by the
         Agent in accordance with Schedule 4 (Mandatory Cost Formulae).

         "MONTH" means a period starting on one day in a calendar month and
         ending on the numerically corresponding day in the next calendar month,
         except that:

         (a)      if the numerically corresponding day is not a Business Day,
                  that period shall end on the next Business Day in that
                  calendar month in which that period is to end if there is one,
                  or if there is not, on the immediately preceding Business Day;
                  and

         (b)      if there is no numerically corresponding day in the calendar
                  month in which that period is to end, that period shall end on
                  the last Business Day in that calendar month.

         The above rules will only apply to the last Month of any period.

         "NON-US SUBSIDIARY" has the meaning ascribed thereto in the Notes
         Indentures.

         "NOTES" means the Senior Notes and the Junior Notes issued or to be
         issued pursuant to the Notes Indentures.

         "NOTES INDENTURES" means the Senior Notes Indenture and the Junior
         Notes Indenture.

         "OBLIGOR" means the Applicant, the Company or an Indemnifying Company.

         "OPTIONAL CURRENCY" means a currency (other than the Base Currency)
         which complies with the conditions set out in Clause 4.3 (Conditions
         relating to Optional Currencies).

                                      -6-
<PAGE>
         "ORIGINAL OBLIGOR" means the Applicant, the Company and each Original
         Indemnifying Company.

         "PARTICIPATING MEMBER STATE" means any member state of the European
         Communities that adopts or has adopted the euro as its lawful currency
         in accordance with legislation of the European Community relating to
         Economic and Monetary Union.

         "PARTY" means a party to this Agreement.

         "PROPORTION" means, in relation to a Bank in respect of any Bond, the
         proportion (expressed as a percentage) borne by that Bank's Available
         Commitment to the Available Facility immediately prior to the issue of
         that Bond, adjusted to reflect any assignment or transfer under this
         Agreement to or by that Bank.

         "QUARTER DATE" means the last Business Day in each of April, July,
         October and January, in each year.

         "QUOTATION DAY" means, in relation to any period for which an interest
         rate is to be determined:

         (a)      (if the currency is sterling) the first day of that period;

         (b)      (if the currency is euro) two TARGET Days before the first day
                  of that period; or

         (c)      (for any other currency) two Business Days before the first
                  day of that period,

         unless market practice differs in the Relevant Interbank Market for a
         currency, in which case the Quotation Day for that currency will be
         determined by the Agent in accordance with market practice in the
         Relevant Interbank Market (and if quotations would normally be given by
         leading banks in the Relevant Interbank Market on more than one day,
         the Quotation Day will be the last of those days).

         "REFERENCE BANKS" means the principal London offices of HSBC Bank plc
         and JPMorgan Chase Bank or such other banks as may be appointed by the
         Agent in consultation with the Company.

         "RELEVANT ACCOUNT" means each account of the Applicant with the
         Security Trustee denominated in the Base Currency, euro or dollars and
         designated as such by the Security Trustee (together with any
         substitute, replacement or sub-account in relation to such designated
         account).

         "RELEVANT INTERBANK MARKET" means the London interbank market.

         "REPEATING REPRESENTATIONS" means each of representations set out in
         Clause 20 (Representations) other than Clause 20.7 (No Filing or stamp
         taxes).

         "REPLACEMENT FACILITIES" shall have the meaning ascribed thereto in
         Clause 4.4 (Replacement Bonding Facilities).

                                      -7-
<PAGE>
         "SCHEME" means the compromise or arrangement between the Company and
         its creditors pursuant to Section 425 of the Companies Act 1985
         implementing the restructuring contemplated by the Indicative Heads of
         Terms.

         "SCHEME EXPENSES BOND" means the Bond which may be issued under the
         Facility in favour of the plc Supervisors (as defined in the Scheme
         Implementation Deed) by HSBC Bank plc (as the Issuing Bank thereof) in
         respect of actual or potential Scheme Expenses (as defined in the
         Scheme Implementation Deed) incurred or to be incurred by the plc
         Supervisors (as defined in the Scheme Implementation Deed) .

         "SCHEME IMPLEMENTATION DEED" means the deed entered into or to be
         entered into between Marconi Plc, the Company, E-A Continental Limited,
         Ancrane Limited and certain other members of the Group in relation to,
         amongst other things, the implementation of the Scheme.

         "SCREEN RATE" means in relation to LIBOR, the British Bankers
         Association Interest Settlement Rate for the relevant currency and
         period displayed on the appropriate page of the Telerate screen. If the
         agreed page is replaced or service ceases to be available, the Agent
         may specify another page or service displaying the appropriate rate
         after consultation with the Company and the Banks.

         "SECURED CREDITOR" shall have the meaning ascribed thereto in the
         Security Trust and Intercreditor Deed.

         "SECURED OBLIGATIONS" has the meaning given to it in the Security
         Agreement.

         "SECURITY" means a mortgage, charge, pledge, lien or other security
         interest securing any obligation of any person or any other agreement
         or arrangement having a similar effect.

         "SECURITY AGREEMENT" means the security over cash agreement of even
         date entered into between the Applicant and the Security Trustee.

         "SECURITY TRUST AND INTERCREDITOR DEED" means the security trust and
         intercreditor deed to be entered into between, among others, the STID
         Security Trustee, the Guarantors referred to therein, the Senior Note
         Trustee (as defined therein), the Junior Note Trustee (as defined
         therein) and the Agent.

         "SENIOR NOTES INDENTURE" means the indenture pursuant to which the
         Senior Notes are issued.

         "SENIOR NOTES" means the euro or dollar denominated Guaranteed Senior
         Secured Notes due 2008 issued or to be issued by the Company.

         "SPECIFIED TIME" means a time determined in accordance with Schedule 7
         (Timetables).

         "STID SECURITY TRUSTEE" means the Security Trustee under and as defined
         in the Security Trust and Intercreditor Deed.

         "STID TRANSACTION SECURITY" means the Transaction Security as defined
         in the Security Trust and Intercreditor Deed.

                                      -8-
<PAGE>
         "SUBSIDIARY" means a subsidiary within the meaning of section 736 of
         the Companies Act 1985 as amended by section 144 of the Companies Act
         1989.

         "TARGET" means Trans-European Automated Real-time Gross Settlement
         Express Transfer payment system.

         "TARGET DAY" means any day on which TARGET is open for the settlement
         of payments in euro.

         "TAX" means any tax, levy, impost, duty or other charge or withholding
         of a similar nature (including any penalty or interest payable in
         connection with any failure to pay or any delay in paying any of the
         same).

         "TAXES ACT" means the Income and Corporation Taxes Act 1988.

         "TERM" means the period set out in the relevant Utilisation Request for
         which an Issuing Bank is under a liability under a Bond.

         "TOTAL COMMITMENTS" means the aggregate of the Commitments, being
         L50,000,000 at the date of this Agreement.

         "TRANSACTION SECURITY" means the Security granted to the Security
         Trustee under the Security Agreement.

         "TRANSFER CERTIFICATE" means a certificate substantially in the form
         set out in Schedule 5 (Form of Transfer Certificates) or any other form
         agreed between the Agent and the Company.

         "TRANSFER DATE" means, in relation to a transfer, the later of:

         (a)      the proposed Transfer Date specified in the Transfer
                  Certificate;

         (b)      the date on which the Agent executes the Transfer Certificate;
                  and

         (c)      the date of receipt by the STID Security Trustee of the
                  Agent/Trustee/New Bonding Facility Bank Accession Letter (as
                  defined in the Security Trust and Intercreditor Deed) in
                  accordance with clause 22.4 (Other Parties) of the Security
                  Trust and Intercreditor Deed (or, if later, the date specified
                  in such letter).

         "UNPAID SUM" means any sum due and payable but unpaid by an Obligor
         under the Finance Documents.

         "UTILISATION" means a utilisation of the Facility by way of the issue
         of a Bond.

         "UTILISATION DATE" means the date of a Utilisation, being the date on
         which a Bond is to be issued.

         "UTILISATION REQUEST" means a notice substantially in the form set out
         in Schedule 3 (Utilisation Request).

                                      -9-
<PAGE>
         "VAT" means value added tax as provided for in the Value Added Tax Act
         1994 and any other tax of a similar nature.

1.2      CONSTRUCTION

         1.2.1    Unless a contrary indication appears, any reference in this
                  Agreement to:

                  (a)      the "AGENT", the "SECURITY TRUSTEE", "any "FINANCE
                           PARTY", any "ISSUING BANK", any "BANK", any "OBLIGOR"
                           or any "PARTY" shall be construed so as to include
                           its successors in title, permitted assigns and
                           permitted transferees;

                  (b)      "EURO" means the single currency unit of the
                           Participating Member States; "L" and "STERLING" means
                           the lawful currency of the United Kingdom and "$" and
                           "DOLLARS" means the lawful currency of the United
                           States of America;

                  (c)      a "FINANCE DOCUMENT" or any other agreement or
                           instrument is a reference to that Finance Document or
                           other agreement or instrument as amended or novated;

                  (d)      if at any time any provision of the Finance Documents
                           is to be construed, interpreted or otherwise to have
                           effect by reference to any term (including any
                           defined term) of the Notes Indentures (or either of
                           them) and at such time the Notes Indentures have not
                           been executed and/or delivered and/or taken legal
                           effect as between the parties thereto, such provision
                           of the Finance Documents shall (unless stated to the
                           contrary) be construed, interpreted or take effect by
                           reference to the relevant terms of the Draft
                           Indenture Terms as if such draft terms were in full
                           force and effect between the parties thereto;

                  (e)      a "PERSON" includes any person, firm, company,
                           corporation, government, state or agency of a state
                           or any association, trust or partnership or two or
                           more of the foregoing (whether or not having separate
                           legal personality);

                  (f)      an outstanding amount of a Bond at any time is the
                           maximum amount that is or may be payable by the
                           Applicant in respect of that Bond at that time;

                  (g)      a "REGULATION" includes any regulation, rule,
                           official directive, request or guideline (whether or
                           not having the force of law) of any governmental,
                           intergovernmental or supranational body, agency,
                           department or regulatory, self-regulatory or other
                           authority or organisation;

                  (h)      the "RELEVANT ISSUING BANK" means in relation to any
                           Bond which has been or is to be issued, the Issuing
                           Bank which has issued, is to issue or has been
                           requested to issue that Bond;

                  (i)      the "REPAYING", "REPAYMENT", "PREPAYING" or
                           "PREPAYMENT" of a Bond means:

                           (i)      the provision of cash cover for that Bond;

                                      -10-
<PAGE>
                           (ii)     the maximum amount payable under the Bond
                                    being reduced in accordance with its terms;
                                    or

                           (iii)    the Issuing Bank of that Bond being
                                    satisfied that it has no further liability
                                    under that Bond;

                           and the amount by which a Bond is repaid or prepaid
                           under (i) and (ii) above is the amount of the
                           relevant cash cover or reduction (but, save as
                           provided under Clause 9.6 (Cash Cover), the provision
                           of cash security pursuant to Clause 22 (Security
                           undertakings) does not constitute the repayment or
                           prepayment of a Bond); and

                  (j)      the provision of "CASH COVER" for a Bond means the
                           payment of an amount in the currency of the Bond to
                           an interest-bearing account in the name of the
                           Applicant and the following conditions are met:

                           (i)      the account is with the Security Trustee,
                                    including any appropriate Relevant Account
                                    (if the cash cover is to be provided for all
                                    the Banks), or with a Bank (if the cash
                                    cover is to be provided for that Bank);

                           (ii)     withdrawals from the account may only be
                                    made to pay a Finance Party amounts due and
                                    payable to it under this Agreement until no
                                    amount is or may be outstanding under:

                                    (1)      in the case of cash cover paid to
                                             an account with the Security
                                             Trustee in circumstances where such
                                             cash cover is to be provided for
                                             all the Banks, any Bond; or

                                    (2)      in the case only of cash cover paid
                                             to an account with a Bank in
                                             circumstances where such cash cover
                                             is to be provided for that Bank
                                             only, that Bond,

                                    following which such restrictions shall not
                                    apply; and

                           (iii)    interest shall accrue at such commercial
                                    rate and with such interest periods as the
                                    Security Trustee or the relevant Bank (as
                                    the case may be) shall specify from time to
                                    time on the credit balance of the account.
                                    All such interest shall be for the account
                                    of the Applicant and credited to the
                                    relevant account; and

                           (iv)     the Applicant has executed a security
                                    document over that account (including, in
                                    respect of a Relevant Account, the Security
                                    Agreement), in form and substance
                                    satisfactory to the Security Trustee or the
                                    Finance Party with which that account is
                                    held, creating a first ranking security
                                    interest over that account.

                  (k)      a provision of law is a reference to that provision
                           as amended or re-enacted; and

                  (l)      a time of day is a reference to London time.

                                      -11-
<PAGE>
         1.2.2    Section, Clause and Schedule headings are for ease of
                  reference only.

         1.2.3    Unless a contrary indication appears, a term used in any other
                  Finance Document or in any notice given under or in connection
                  with any Finance Document has the same meaning in that Finance
                  Document or notice as in this Agreement.

         1.2.4    A Default (other than an Event of Default) is "CONTINUING" if
                  it has not been remedied or waived and an Event of Default is
                  "CONTINUING" if it has not been waived.

1.3      THIRD PARTY RIGHTS

         1.3.1    Unless expressly provided to the contrary in a Finance
                  Document a person who is not a Party has no right under the
                  Contracts (Rights of Third Parties) Act 1999 (the "THIRD
                  PARTIES ACT") to enforce or to enjoy the benefit of any term
                  of this Agreement.

         1.3.2    Notwithstanding any term of any Finance Document, the consent
                  of any person who is not a Party is not required to rescind or
                  vary this Agreement at any time.

2.       THE FACILITY

2.1      THE FACILITY

         Subject to the terms of this Agreement, the Banks make available to the
         Applicant a committed multicurrency revolving facility for the issue of
         Bonds in an aggregate amount equal to the Total Commitments.

2.2      FINANCE PARTIES' RIGHTS AND OBLIGATIONS

         2.2.1    The obligations of each Finance Party under the Finance
                  Documents are several. Failure by a Finance Party to perform
                  its obligations under the Finance Documents does not affect
                  the obligations of any other Party under the Finance
                  Documents. No Finance Party is responsible for the obligations
                  of any other Finance Party under the Finance Documents.

         2.2.2    The rights of each Finance Party under or in connection with
                  the Finance Documents are separate and independent rights and
                  any debt arising under the Finance Documents to a Finance
                  Party from an Obligor shall be a separate and independent
                  debt.

         2.2.3    A Finance Party may, except as otherwise stated in the Finance
                  Documents, separately enforce its rights under the Finance
                  Documents.

2.3      EXTENSION OF THE FACILITY

         Prior to the expiry of the Availability Period, the Applicant shall
         have the right to request the Banks to extend the Availability Period
         once to a date falling no later than the date which is 30 Months after
         the Effective Date on the terms set forth in this Agreement and the
         other Finance Documents and, without accepting any obligation
         whatsoever to agree to such extension, each Bank agrees that it will in
         good faith consider whether or not it is prepared to agree to such
         extension. However in no event will any such extension of the

                                      -12-
<PAGE>
         Availability Period be made unless each Bank and each Issuing Bank has
         agreed to the same and the terms thereof.

3.       PURPOSE

3.1      PURPOSE

         The Facility is provided for the purpose (1) of supporting (directly or
         indirectly) obligations owed by Indemnifying Companies to third parties
         where such obligations are incurred in the ordinary course of the
         Group's trade or business (but not, for the avoidance of doubt, for the
         purpose of supporting any financing facilities of members of the Group
         other than any financing facilities which have been provided to members
         of the Group for the purpose of supporting directly obligations of
         members of the Group incurred in the ordinary course of the Group's
         trade or business (other than where such business includes the raising
         or incurrence of financial indebtedness) through the issue of surety
         bonds, appeal bonds, bid bonds, performance bonds, letters of credit,
         bank guarantees or other obligations of a like nature issued for such
         purpose) and (2) of issuing the Scheme Expenses Bond.

3.2      MONITORING

         No Finance Party is bound to monitor or verify the manner in which the
         Facility is utilised.

4.       CONDITIONS OF UTILISATION

4.1      INITIAL CONDITIONS PRECEDENT

         The Applicant may not deliver a Utilisation Request unless the Agent
         has received all of the documents and other evidence listed in Part A
         (Conditions Precedent to Initial Utilisation) of Schedule 2 in form and
         substance satisfactory to the Agent. The Agent shall notify the
         Applicant, the Company and the Banks promptly upon being so satisfied.

4.2      FURTHER CONDITIONS PRECEDENT

         The Banks will only be obliged to comply with Clause 5.4 (Issue of
         Bonds) if on the date of the Utilisation Request and on the proposed
         Utilisation Date:

         4.2.1    no Default is continuing or would result from the proposed
                  Utilisation; and

         4.2.2    the Repeating Representations to be made by the Company, the
                  Applicant and the Indemnifying Company for whose account the
                  relevant Bond has been requested to be issued are true in all
                  material respects.

4.3      CONDITIONS RELATING TO OPTIONAL CURRENCIES

         4.3.1    A currency will constitute an Optional Currency in relation to
                  a Utilisation if it is euro or dollars or:

                  (a)      it is readily available in the amount required and
                           freely convertible into the Base Currency in the
                           Relevant Interbank Market on the Quotation Day and
                           the Utilisation Date for that Utilisation; and

                  (b)      it has been approved by the relevant Issuing Bank for
                           that Utilisation on or prior to receipt by the Agent
                           of the relevant Utilisation Request for that
                           Utilisation.

                                      -13-

<PAGE>
      4.3.2 If the Agent has received a written request from the Applicant for a
            currency to be approved under sub-clause 4.3.1(b) of this Clause
            4.3, the Agent will confirm to the Applicant by the Specified Time
            whether or not the relevant Issuing Bank has granted its approval.

4.4   REPLACEMENT BONDING FACILITIES

      4.4.1 If the Company or any of its Subsidiaries enters into any
            Replacement New Bonding Facility Agreement as defined in and as
            permitted under the terms of the Notes Indentures (such facilities
            being "REPLACEMENT FACILITIES"), the Company will promptly notify
            the Agent of that fact in writing and provide a copy of the facility
            documentation relating to the Replacement Facilities to the Agent
            and the Agent will promptly notify the Banks of the same. On each
            occasion upon which any cash cover is provided by the Company or any
            of its Subsidiaries pursuant to the terms of any Replacement
            Facilities, the Company will promptly inform the Agent in writing of
            that fact and of the amount and currency of cash cover so provided.

      4.4.2 At any time after the Company or any of its Subsidiaries have
            entered into any Replacement Facilities, and regardless of whether
            or not the Company has cancelled the whole or any part of the
            Available Facility pursuant to Clause 9.3 (Voluntary Cancellation),
            the Banks will only be obliged to comply with Clause 5.4 (Issue of
            Bonds) if on the date of the Utilisation Request and on the proposed
            Utilisation Date, the Base Currency of all Initial Cash Security
            provided to the Security Agent since the Effective Date, together
            with the Base Currency Amount of the Initial Cash Security required
            to be provided in connection with the Bond requested in such
            Utilisation Request, together with the amount of all cash cover
            provided (or to be provided on or prior to the relevant Utilisation
            Date) in connection with any Replacement Facilities does not exceed
            L25,000,000 (and for the purposes of giving effect to the above
            provisions the Agent shall be entitled notionally to convert the
            amount of any cash cover provided under any Replacement Facilities
            in a currency other than the Base Currency into the Base Currency at
            the Agent's Spot Rate of Exchange on the day of delivery of the
            relevant Utilisation Request).

5.    UTILISATION

5.1   DELIVERY OF A UTILISATION REQUEST
      The Applicant may utilise the Facility by delivery to the Agent of a duly
      completed Utilisation Request requesting the issue of a Bond by an Issuing
      Bank not later than the Specified Time. Further, but provided only that
      the relevant Issuing Bank has confirmed to the Applicant and the Agent
      that the Issuing Bank consents to the same, the Applicant may deliver a
      Utilisation Request later than the Specified Time.

5.2   COMPLETION OF A UTILISATION REQUEST

      5.2.1 Each Utilisation Request is irrevocable and will not be regarded as
            having been duly completed unless:

                                     - 14 -
<PAGE>

            (a)   the proposed Utilisation Date is a Business Day within the
                  Availability Period;

            (b)   the currency and amount of the Utilisation comply with Clause
                  5.3 (Currency and amount);

            (c)   the form of the Bond is attached and either (i) has been
                  agreed by the relevant Issuing Bank (having regard to that
                  Issuing Bank's formal internal policies at the relevant time,
                  and to all relevant legal and regulatory restrictions) or (ii)
                  in respect of the Scheme Expenses Bond only, is in
                  substantially the form set out in Schedule 10 (Form of Scheme
                  Expenses Bond);

            (d)   either:

                  (i)   the Expiry Date of the Bond falls on or before 31
                        December 2010; or

                  (ii)  the Expiry Date of the Bond falls after 31 December 2010
                        or the Bond is undated and, in each case, the relevant
                        Issuing Bank and the Banks have agreed to the making of
                        the Utilisation; or

                  (iii) in the case of the Scheme Expenses Bond only, (subject
                        to the Applicant's right to request that such Bond be
                        extended or renewed but not so that the Expiry Date
                        thereof falls on a date which is later than 5 years from
                        the Effective Date) the initial Expiry Date thereof
                        falls on or before the date which is 15 months after the
                        Effective Date;

            (e)   the delivery instructions for the Bond are specified;

            (f)   the Bond is either the Scheme Expenses Bond or a Bond for the
                  purpose of supporting (directly or indirectly) the obligations
                  of an Indemnifying Company to a third party where such
                  obligations are incurred in the ordinary course of the Group's
                  trade or business, but not for the purpose of supporting any
                  financing facility of a member of the Group other than any
                  financing facilities which have been provided to members of
                  the Group for the purpose of supporting directly obligations
                  of members of the Group incurred in the ordinary course of the
                  Group's trade or business (other than where such business
                  includes the raising or incurrence of financial indebtedness)
                  through the issue of surety bonds, appeal bonds, bid bonds,
                  performance bonds, letters of credit, bank guarantees or other
                  obligations of a like nature issued for such purpose; and

            (g)   the identity of the beneficiary of the Bond is satisfactory to
                  the relevant Issuing Bank (having regard to the relevant
                  Issuing Bank's formal internal policies at the relevant time,
                  and to all relevant legal and regulatory restrictions).

      5.2.2 Only one Utilisation may be requested in each Utilisation Request.

                                     - 15 -
<PAGE>

      5.2.3 If either the form, the identity of the beneficiary, or (in the case
            of a Bond to have an Expiry Date falling after 31 December 2010 or
            which is undated) the tenor of, a Bond which is requested to be
            issued has not been agreed or approved by the relevant Issuing Bank
            prior to the submission of the Utilisation Request for that Bond,
            and the relevant Issuing Bank does not agree or approve the form,
            the beneficiary or the tenor of the relevant Bond (as the case may
            be), the relevant Issuing Bank shall inform the Agent and the Agent
            will inform the Applicant of that fact not later than the Specified
            Time.

5.3   CURRENCY AND AMOUNT

      5.3.1 The currency specified in a Utilisation Request must be the Base
            Currency or an Optional Currency.

      5.3.2 The amount of the proposed Bond must be such that its Base Currency
            Amount is less than or equal to the Available Facility, save that in
            the case of the Scheme Expenses Bond, the Base Currency Amount
            thereof shall not, in any case, be greater than the lesser of
            L2,000,000 or the Available Facility.

5.4   ISSUE OF BONDS

      5.4.1 If the conditions set out in this Agreement have been met and
            PROVIDED THAT the Applicant has complied with its obligations under
            Clause 22.1 (Initial Cash Security) with respect to the relevant
            Bond, the relevant Issuing Bank shall issue the relevant Bond on the
            Utilisation Date.

      5.4.2 The amount of each Bank's participation in each Bond will be equal
            to the proportion borne by its Available Commitment to the Available
            Facility immediately prior to the issue of the Bond.

      5.4.3 The Agent shall determine the Base Currency Amount of each Bond
            which is to be issued in an Optional Currency and shall notify (a)
            the Company of the Base Currency Amount of such Bond and (b) the
            relevant Issuing Bank and each Bank of the details of the requested
            Bond and the amount of its participation in that Bond, in each case
            by the Specified Time.

      5.4.4 A renewal or extension of a Bond shall be treated in the same manner
            as if the issue of a new Bond were being requested.

6.    REVALUATION OF BONDS

6.1   If any Bond is denominated in an Optional Currency, the Agent shall at six
      monthly intervals after the Effective Date recalculate the Base Currency
      Amount of that Bond by notionally converting into the Base Currency the
      outstanding amount of that Bond on the basis of the Agent's Spot Rate of
      Exchange on the date of calculation. The Agent shall promptly notify the
      Company of the amount so determined.

6.2   The Applicant shall, if requested by the Agent within 10 days of any
      calculation under Clause 6.1 of this Clause 6, ensure that within three
      Business Days sufficient Utilisations are prepaid to prevent the Base
      Currency Amount of the Utilisations exceeding the Total Commitments
      following any adjustment to a Base Currency Amount under Clause 6.1 of
      this Clause 6.

                                     - 16 -
<PAGE>

7.    LONG DATED BONDS

7.1   If an Issuing Bank issues a Bond with an Expiry Date falling after the
      last day of the Availability Period or an undated Bond which has not been
      repaid or prepaid in full on or prior to the last day of the Availability
      Period (each, a "LONG DATED BOND"), the Applicant (or the Company on its
      behalf) shall, no later than one month before the last day of the
      Availability Period, repay that Long Dated Bond. To the extent that the
      Applicant (or the Company on its behalf) wishes to repay such Long Dated
      Bonds by the provision of cash cover, it may, provided that it has given
      prior notice to the Security Trustee and the relevant Issuing Bank of that
      fact, request that the Base Currency Amount of any cash security provided
      pursuant to Clause 22 (Security Undertakings) standing to the credit of
      the Applicant in the Relevant Accounts and any other cash cover standing
      to the credit of the Applicant in an account with the Security Trustee for
      all the Banks which is in either case not required to collateralise any
      other obligation (whether actual or contingent) in respect of the Finance
      Documents or any other Bond ("EXISTING CASH COLLATERAL"), be taken into
      account in calculating the amount of cash cover so to be provided and only
      such additional amount of cash cover shall have to be paid to the Security
      Trustee as is necessary (when added to the amount of the Existing Cash
      Collateral) to ensure that the amount to be repaid in respect of such Long
      Dated Bonds has been provided in full.

7.2   in addition to any other form of repayment permitted by the terms of this
      Agreement, but PROVIDED THAT the relevant Issuing Bank has given its prior
      consent to the same, the Applicant (or the Company on its behalf) shall,
      for the purpose only of complying with its obligations under Clause 7.1 of
      this Clause 7 to repay any Long Dated Bond, also be entitled to procure
      the issuance of a letter of credit, indemnity or bank guarantee by an
      issuing institution acceptable to the relevant Issuing Bank and on terms
      and conditions acceptable to the relevant Issuing Bank in respect of the
      entire liability of that Issuing Bank under the relevant Long Dated Bond.
      In the event that the relevant Issuing Bank agrees to accept such a letter
      of credit, indemnity or bank guarantee and the same is duly issued to the
      relevant Issuing Bank, on the last day of the Availability Period each
      Bank shall, without the need for any further action by that Issuing Bank
      or any of the Banks, be released from the indemnity given to that Issuing
      Bank pursuant to sub-clause 8.3.2 of Clause 8.3 (Indemnities) of this
      Agreement in respect of any claim thereafter paid by that Issuing Bank
      under the relevant Long Dated Bond.

8.    BONDS

8.1   IMMEDIATELY PAYABLE

      If a Bond or any amount outstanding under a Bond is expressed to be
      immediately payable, the Applicant shall repay or prepay that amount
      immediately.

8.2   CLAIMS UNDER A LETTER OF CREDIT

      8.2.1 Each of the Applicant and each Indemnifying Company whose
            obligations are supported by a Bond (the "RELEVANT INDEMNIFYING
            COMPANY") irrevocably and unconditionally authorises the relevant
            Issuing Bank to pay any claim made or purported to be made under
            that Bond which appears on its face to be in order (a "CLAIM").

      8.2.2 The relevant Issuing Bank shall promptly notify the Applicant and
            the Relevant Indemnifying Company if a claim is made upon it under a
            Bond. The Applicant

                                     - 17 -
<PAGE>

            and the Relevant Indemnifying Company agree (on a joint and several
            basis) immediately on demand (or, if such Bond provides a time
            within which the relevant Issuing Bank must make payment in respect
            of a claim, no later than one Business Day before the last date on
            which the Issuing Bank must make such payment) to pay to the Agent
            for the relevant Issuing Bank an amount equal to the amount of any
            claim in respect of a Bond.

      8.2.3 Each of the Applicant and the Relevant Indemnifying Companies
            acknowledges that each Issuing Bank:

            (a)   is not obliged to carry out any investigation or seek any
                  confirmation from any other person before paying a claim; and

            (b)   deals in documents only and will not be concerned with the
                  legality of a claim or any underlying transaction or any
                  available set-off, counterclaim or other defence of any
                  person.

      8.2.4 The obligations of the Applicant and a Relevant Indemnifying Company
            under this Clause will not be affected by:

            (a)   the sufficiency, accuracy or genuineness of any claim or any
                  other document; or

            (b)   any incapacity of, or limitation on the powers of, any person
                  signing a claim or other document.

8.3   INDEMNITIES

      8.3.1 The Applicant and the Relevant Indemnifying Company shall (on a
            joint and several basis) within 3 Business Days of demand being made
            by the relevant Issuing Bank indemnify the relevant Issuing Bank
            against any cost, loss or liability incurred by that Issuing Bank
            (otherwise than by reason of that Issuing Bank's gross negligence or
            wilful misconduct) in acting as the Issuing Bank under any Bond.

      8.3.2 Subject to the provisions of Clause 7.1 of Clause 7 (Long Dated
            Bonds) and of sub-clause 9.7.2 of Clause 9 (Repayment, Prepayments
            and Cancellation), each Bank shall (according to its Proportion)
            immediately on demand indemnify the relevant Issuing Bank against
            any cost, loss or liability incurred by that Issuing Bank (otherwise
            than by reason of the Issuing Bank's gross negligence or wilful
            misconduct) in acting as the Issuing Bank under any Bond (unless
            that Issuing Bank has been reimbursed by an Obligor pursuant to a
            Finance Document).

      8.3.3 The Applicant and the Relevant Indemnifying Company shall (on a
            joint and several basis) within 3 Business Days of demand being made
            on it reimburse any Bank for any payment it makes to any Issuing
            Bank under this Clause 8.3 in respect of a Bond.

      8.3.4 The obligations of the Applicant, each Indemnifying Company and each
            Bank under this Clause 8 are continuing obligations and will extend
            to the ultimate balance of sums payable by that Applicant,
            Indemnifying Company or Bank in

                                     - 18 -
<PAGE>

            respect of any Bond, regardless of any intermediate payment or
            discharge in whole or in part.

      8.3.5 The obligations of the Applicant, each Indemnifying Company and any
            Bank under this Clause 8 will not be affected by any act, omission,
            matter or thing which, but for this Clause, would reduce, release or
            prejudice any of its obligations under this Clause 8 (without
            limitation and whether or not known to it or any other person)
            including:

            (a)   any time, waiver or consent granted to, or composition with,
                  any Obligor, any beneficiary under a Bond or other person;

            (b)   the release of any other Obligor or any other person under the
                  terms of any composition or arrangement with any creditor or
                  any member of the Group;

            (c)   the taking, variation, compromise, exchange, renewal or
                  release of, or refusal or neglect to perfect, take up or
                  enforce, any rights against, or security over assets of, any
                  Obligor, any beneficiary under a Bond or other person or any
                  non-presentation or non-observance of any formality or other
                  requirement in respect of any instrument or any failure to
                  realise the full value of any security;

            (d)   any incapacity or lack of power, authority or legal
                  personality of or dissolution or change in the members or
                  status of an Obligor, any beneficiary under a Bond or any
                  other person;

            (e)   any amendment (however fundamental) or replacement of a
                  Finance Document, any Bond or any other document or security;

            (f)   any unenforceability, illegality or invalidity of any
                  obligation of any person under any Finance Document, any Bond
                  or any other document or security; or

            (g)   any insolvency or similar proceedings.

8.4   RIGHTS OF CONTRIBUTION

      No Obligor will be entitled to any right of contribution or indemnity from
      any Finance Party in respect of any payment it may make under this Clause
      8.

8.5   ROLE OF THE ISSUING BANKS

      8.5.1 Nothing in this Agreement constitutes any Issuing Bank as a trustee
            or fiduciary of any other person.

      8.5.2 No Issuing Bank shall be bound to account to any Bank for any sum or
            the profit element of any sum received by it for its own account.

      8.5.3 Each Issuing Bank may accept deposits from, lend money to and
            generally engage in any kind of banking or other business with any
            member of the Group.

                                     - 19 -
<PAGE>

      8.5.4 Each Issuing Bank may rely on:

            (a)   any representation, notice or document believed by it to be
                  genuine, correct and appropriately authorised; and

            (b)   any statement made by a director, authorised signatory or
                  employee of any person regarding any matters which may
                  reasonably be assumed to be within his knowledge or within his
                  power to verify.

      8.5.5 Each Issuing Bank may engage, pay for and rely on the advice or
            services of any lawyers, accountants, surveyors or other experts.

      8.5.6 Each Issuing Bank may act in relation to the Finance Documents
            through its personnel and agents.

      8.5.7 No Issuing Bank is responsible for:

            (a)   the adequacy, accuracy and/or completeness of any information
                  (whether oral or written) supplied by that Issuing Bank or any
                  other person given in or in connection with any Finance
                  Document; or

            (b)   the legality, validity, effectiveness, adequacy or
                  enforceability of any Finance Document or any other agreement,
                  arrangement or document entered into, made or executed in
                  anticipation of or in connection with any Finance Document.

8.6   EXCLUSION OF LIABILITY

      8.6.1 Without limiting sub-clause 8.6.2 of this Clause 8.6, no Issuing
            Bank will be liable for any action taken by it under or in
            connection with any Finance Document, unless directly caused by its
            gross negligence or wilful misconduct.

      8.6.2 No Party (other than an Issuing Bank) may take any proceedings
            against any officer, employee or agent of that Issuing Bank in
            respect of any claim it might have against that Issuing Bank or in
            respect of any act or omission of any kind by that officer, employee
            or agent in relation to any Finance Document and any officer,
            employee or agent of that Issuing Bank may rely on this Clause
            subject to Clause 1.3 (Third Party Rights) and the provisions of the
            Third Parties Act.

8.7   CREDIT APPRAISAL BY THE BANKS

      Without affecting the responsibility of any Obligor for information
      supplied by it or on its behalf in connection with any Finance Document,
      each Bank confirms to each Issuing Bank that it has been, and will
      continue to be, solely responsible for making its own independent
      appraisal and investigation of all risks arising under or in connection
      with any Finance Document.

                                     - 20 -
<PAGE>

9.    REPAYMENT, PREPAYMENT AND CANCELLATION

9.1   ILLEGALITY

      If it becomes unlawful in any applicable jurisdiction for a Bank to
      perform any of its obligations as contemplated by this Agreement or to
      fund or maintain its participation in any Utilisation:

      9.1.1 that Bank shall promptly notify the Agent upon becoming aware of
            that event;

      9.1.2 upon the Agent notifying the Company and the Applicant, the
            Commitment of that Bank will be immediately cancelled; and

      9.1.3 the Applicant shall (a) repay that Bank's participation in the
            Utilisations and/or (b) within three Business Days of notice being
            delivered by the Agent, repay that Bank's proportion of any Bond
            issued by any Issuing Bank or, if the illegality affects an Issuing
            Bank in its capacity as such, repay the whole of any Bond issued by
            that Issuing Bank, or, at the request of that Bank, take such other
            measures as may be reasonably practicable (without undue additional
            cost to that Obligor) to cure such unlawfulness, in each case on the
            date specified by the Bank in the notice delivered to the Agent
            (being no earlier than the last day of any applicable grace period
            permitted by law).

9.2   CHANGE OF CONTROL

      9.2.1 If a Change of Control (as defined in the Senior Notes Indenture or
            the Junior Note Indenture as in force on the Effective Date or, if
            prior to the Effective Date, as defined in the Draft Indenture
            Terms) occurs under the terms of the Senior Notes or the Junior
            Notes as in force on the Effective Date (or would have occurred if
            the relevant Notes had been outstanding on the such terms at the
            relevant time), the Company shall promptly notify the Agent upon
            becoming aware of that event and:

            (a)   the Agent shall if so directed by any Bank, by notice to the
                  Company:

                  (i)   declare that the Commitment of that Bank is to be
                        cancelled, and that Commitment shall be cancelled with
                        effect from the day falling 45 days after such Change of
                        Control (or, if such day is not a Business Day, the
                        immediately following Business Day or, if such day would
                        fall into a different calendar month, the immediately
                        preceding Business Day); and/or

                  (ii)  declare that full cash cover in respect of that Bank's
                        participation under this Agreement in respect of each
                        Bond is due and payable, and such cash cover shall
                        become due and payable by the Applicant and each
                        relevant Indemnifying Company on the day falling 45 days
                        after such Change of Control (or, if such day is not a
                        Business Day, the immediately following Business Day or,
                        if such day would fall into a different calendar month,
                        the immediately preceding Business Day); and

                                     - 21 -
<PAGE>
            (b)   the Agent may, and shall if so directed by the Majority Banks,
                  by notice to the Company:

                  (i)   declare that the Total Commitments are to be cancelled
                        and the Total Commitments shall be cancelled with effect
                        from the day falling 45 days after such Change of
                        Control (or, if such day is not a Business Day, the
                        immediately following Business Day, or if such day would
                        fall into a different calendar month, the immediately
                        preceding Business Day); and/or

                  (ii)  declare that full cash cover in respect of each Bond is
                        due and payable, and such cash cover shall become due
                        and payable by the Applicant and each relevant
                        Indemnifying Company on the day falling 45 days after
                        such Change of Control (or, if such day is not a
                        Business Day, the immediately following Business Day or,
                        if such day would fall into a different calendar month,
                        the immediately preceding Business Day).

9.3   VOLUNTARY CANCELLATION

      The Applicant (or the Company on the Applicant's behalf) may, if it gives
      the Agent not less than 5 Business Days' (or such shorter period as the
      Majority Banks may agree) prior notice, cancel the whole or any part
      (being a minimum amount of L5,000,000) of the Available Facility. Any
      cancellation under this Clause 9.3 shall reduce the Commitments of the
      Banks rateably.

9.4   RIGHT OF REPAYMENT AND CANCELLATION IN RELATION TO A SINGLE BANK

      9.4.1 If:

            (a)   any sum payable to any Bank by an Obligor is required to be
                  increased under sub-clause 14.2.3 of Clause 14.2 (Tax
                  gross-up); or

            (b)   any Bank claims indemnification from the Company under Clause
                  14.3 (Tax indemnity) or Clause 15.1 (Increased costs),

            the Applicant (or the Company on behalf of the Applicant) may,
            whilst the circumstance giving rise to the requirement or
            indemnification continues, give the Agent notice of cancellation of
            the Commitment of that Bank and its intention to procure the
            repayment of that Bank's participation in the Utilisations.

      9.4.2 On receipt of a notice referred to in sub-clause 9.4.1 of this
            Clause 9.4, the Commitment of that Bank shall immediately be reduced
            to zero.

      9.4.3 On the date specified by the Applicant (or the Company) in the
            notice under sub-clause 9.4.1 of this Clause 9.4, the Applicant
            shall repay that Bank's participation in each Utilisation.

9.5   RESTRICTIONS

      9.5.1 Any notice of cancellation or prepayment given by any Party under
            this Clause 9 shall be irrevocable and, unless a contrary indication
            appears in this

                                     - 22 -
<PAGE>

            Agreement, shall specify the date or dates upon which the relevant
            cancellation or prepayment is to be made and the amount of that
            cancellation or prepayment.

      9.5.2 Any prepayment under this Agreement shall be made together with
            accrued commission and fees on the amount prepaid and, without
            premium or penalty.

      9.5.3 No amount of the Total Commitments cancelled under this Agreement
            may be subsequently reinstated.

      9.5.4 If the Agent receives a notice under this Clause 9 it shall promptly
            forward a copy of that notice to either the Company or the affected
            Bank, as appropriate.

      9.5.5 For the avoidance of doubt, if any Bond has been repaid or prepaid
            in full (other than pursuant to the provisions of Clause 24.10
            (Remedies)), and each of the conditions and requirements of Clause 4
            (Conditions and Utilisation) and Clause 5 (Utilisation) are
            satisfied, the Base Currency amount of such Bond shall become
            available for re-utilisation pursuant and subject to the terms of
            this Agreement.

9.6   CASH COVER

      On any day where, pursuant to the terms of this Agreement, any Obligor is
      required or permitted to repay or prepay any Bond (or part thereof) by the
      provision of cash cover or otherwise to provide cash cover in respect of
      any Bond, other than (a) where such cash cover is not to be provided for
      all the Banks, (b) pursuant to Clause 6.2 or (c) (for the avoidance of
      doubt) pursuant to Clause 22 (Security Undertakings), the Base Currency
      Amount of cash security provided pursuant to Clause 22 (Security
      Undertakings) standing to the credit of the Applicant in the Relevant
      Accounts on that day shall be taken into account in calculating the amount
      of cash cover so to be provided and only such additional amount of cash
      cover shall have to be paid to the Security Trustee as is necessary (when
      added to the amount of cash security standing to the credit of the
      Applicant in the Relevant Accounts to be taken into account pursuant to
      the above provisions) to ensure that the amount otherwise to be repaid,
      prepaid or provided as cash cover (as the case may) has been provided in
      full.

9.7   DISPOSAL OF INDEMNIFYING COMPANIES

      9.7.1 The Company will not sell or dispose of any Equity Interests of any
            Indemnifying Company and shall procure that no Subsidiary of the
            Company will sell or dispose of any Equity Interests of any
            Indemnifying Company unless:

            (a)   each Issuing Bank which has issued any Bond for the account of
                  the relevant Indemnifying Company has given its prior consent
                  to the same;

            (b)   each Issuing Bank which has issued any Bond for the account of
                  the relevant Indemnifying Company has released the relevant
                  Indemnifying Company from its obligations under or in respect
                  of the Finance Documents in accordance with the provisions of
                  sub-Clause 9.7.2 below; or

                                     - 23 -
<PAGE>

            (c)   such sale or disposal is made to the Company or to a Non-US
                  Subsidiary and is permitted under the terms of the Notes
                  Indentures (an "INTRA-GROUP DISPOSAL").

      9.7.2 In the event of any proposed sale or disposition of all of the
            Equity Interests of any Indemnifying Company, other than an
            Intra-Group Disposal, and provided also that, in the case of such
            sale or disposition of the Equity interests of an Indemnifying
            Company which is also a Guarantor, such sale or disposition is
            permitted pursuant to the terms of the Notes and/or the Notes
            Indentures, each relevant Issuing Bank shall release the relevant
            Indemnifying Company from its obligations under or in respect of the
            Finance Documents immediately prior to the time at which such sale
            or disposition is to become effective provided that each relevant
            Issuing Bank has at or prior to such time either received repayment
            in full in respect of each Bond issued by that Issuing Bank for the
            account of the relevant Indemnifying Company or, but only provided
            that the relevant Issuing Bank has given its prior consent to the
            same, the relevant Indemnifying Company (or the Applicant or the
            Company on its behalf) has procured the issuance of a letter of
            credit, indemnity or bank guarantee by an issuing institution
            acceptable to the relevant Issuing Bank and on terms and conditions
            acceptable to the relevant Issuing Bank in respect of the entire
            liability of that Issuing Bank under any Bond issued by that Issuing
            Bank for the account of the relevant Indemnifying Company. In the
            event that the relevant Issuing Bank agrees to accept such a letter
            of credit, indemnity or bank guarantee and the same is duly issued
            to the relevant Issuing Bank, on the date upon which the relevant
            sale or disposition becomes effective each Bank shall, without the
            need for any further action by that Issuing Bank or any of the
            Banks, be released from the indemnity given to the relevant Issuing
            Bank pursuant to sub-clause 8.3.2 of Clause 8.3 (Indemnities) of
            this Agreement in respect of any claim thereafter paid by that
            Issuing Bank under any Bond in respect of which it has accepted such
            letter of credit, indemnity or bank guarantee.

10.   DEFAULT INTEREST

10.1  DEFAULT INTEREST

      10.1.1 If an Obligor fails to pay any amount payable by it under a Finance
             Document on its due date, interest shall accrue on the overdue
             amount from the due date up to the date of actual payment (both
             before and after judgment) at a rate per annum equal to the
             applicable LIBOR plus 0.50% plus 2% plus the applicable Mandatory
             Cost (if any) for successive Interest Periods, each of a duration
             selected by the Agent (acting reasonably). Any interest accruing
             under this Clause 10.1 shall be immediately payable by the relevant
             Obligor on demand by the Agent.

      10.1.2 Default interest (if unpaid) arising on an overdue amount will be
             compounded with the overdue amount at the end of each Interest
             Period applicable to that overdue amount but will remain
             immediately due and payable.

                                     - 24 -
<PAGE>

10.2  NOTIFICATION OF RATES OF INTEREST

      The Agent shall promptly notify the Banks and the Company of the
      determination of a rate of interest under this Agreement.

11.   CHANGES TO THE CALCULATION OF INTEREST

11.1  ABSENCE OF QUOTATIONS

      Subject to Clause 11.2 (Market disruption), if LIBOR is to be determined
      by reference to the Reference Banks but a Reference Bank does not supply a
      quotation by the Specified Time on the Quotation Day, the applicable LIBOR
      shall be determined on the basis of the quotations of the remaining
      Reference Banks.

11.2  MARKET DISRUPTION

      11.2.1 If a Market Disruption Event occurs in relation to an Unpaid Sum
             for any Interest Period, then the rate of interest on each Bank's
             share of that Unpaid Sum for the Interest Period shall be the rate
             per annum which is the sum of:

             (a)  0.50%;

             (b)  the rate notified to the Agent by that Bank as soon as
                  practicable and in any event before interest is due to be paid
                  in respect of that Interest Period, to be that which expresses
                  as a percentage rate per annum the cost to that Bank of
                  funding its participation in that Unpaid Sum from whatever
                  source it may reasonably select; and

             (c)  the Mandatory Cost, if any, applicable to that Bank's
                  participation in the Unpaid Sum.

      11.2.2 In this Agreement "MARKET DISRUPTION EVENT" means:

             (a)  at or about noon on the Quotation Day for the relevant
                  Interest Period the Screen Rate is not available and none or
                  only one of the Reference Banks supplies a rate to the Agent
                  to determine LIBOR for the relevant currency and Interest
                  Period; or

             (b)  before close of business in London on the Quotation Day for
                  the relevant Interest Period, the Agent receives notifications
                  from a Bank or Banks (whose participations in an Unpaid Sum
                  exceed 35 per cent. of that Unpaid Sum) that the cost to it of
                  obtaining matching deposits in the Relevant Interbank Market
                  would be in excess of LIBOR.

11.3  ALTERNATIVE BASIS OF INTEREST OR FUNDING

      11.3.1 If a Market Disruption Event occurs and the Agent or the Company so
             requires, the Agent and the Company shall enter into negotiations
             (for a period of not more than thirty days) with a view to agreeing
             a substitute basis for determining the rate of interest.

      11.3.2 Any alternative basis agreed pursuant to sub-clause 11.3.1 of this
             Clause 11.3 shall, with the prior consent of all the Banks and the
             Company, be binding on all Parties.

                                     - 25 -
<PAGE>

12.   BREAK COSTS

12.1  PAYMENT

      The Applicant shall, within three Business Days of demand by a Finance
      Party, pay to that Finance Party its Break Costs attributable to all or
      any part of an Unpaid Sum being paid by that Borrower on a day other than
      the last day of an Interest Period for that Unpaid Sum.

12.2  DETERMINATION

      Each Bank shall, as soon as reasonably practicable after a demand by the
      Agent, provide a certificate confirming the amount of its Break Costs for
      any Interest Period in which they accrue.

13.   FEES

13.1  ARRANGEMENT FEE

      The Company shall on the date of this Agreement pay to the Agent for
      distribution to the Banks an arrangement fee in an amount equal to
      L1,000,000.

13.2  FRONTING FEE

      The Applicant shall pay to the Agent (for the account of the relevant
      Issuing Bank) in respect each Bond a fronting fee in the amount of 0.10%
      per annum on the outstanding amount (other than the relevant Issuing
      Bank's Proportion of that amount) of such Bond (but ignoring for the
      purposes of this Clause any repayment or prepayment of any such Bond by
      the provision of cash cover and also ignoring all payments of cash
      security pursuant to the requirements of Clause 22 (Security
      Undertakings)) for the period from its Utilisation Date until its Expiry
      Date. The fronting fee will be payable in arrears on each Quarter Date
      following the Utilisation Date in respect of the relevant Bond and on the
      Expiry Date of the relevant Bond (PROVIDED THAT in respect of any Long
      Dated Bond which has been repaid in accordance with Clause 7.1 of Clause 7
      (Long Dated Bonds) and Clause 7.2 of Clause 7 (Long Dated Bonds), and in
      respect of any other Bond which has been repaid or prepaid in accordance
      with paragraphs (ii) or (iii) of sub-clause 1.2.1(i) of Clause 1.2
      (Construction), such fee shall no longer be payable in respect of the
      period after such prepayment or repayment has been made).

13.3  BONDING FEE

      The Applicant shall pay to the Agent (for the account of each Bank) a
      bonding fee in the currency of the relevant Bond in the amount of 0.50%
      per annum on the outstanding amount of each Bond (but ignoring for the
      purposes of this Clause any repayment or prepayment of any such Bond by
      the provision of cash cover and also ignoring all payments of cash
      security pursuant to the requirements of Clause 22 (Security
      Undertakings)) for the period from (and including) the Utilisation Date
      until (but not including) the next Quarter Date, and on each subsequent
      Quarter Date prior to the Expiry Date of the Relevant Bond (PROVIDED THAT
      in respect of any Bond which has been repaid or prepaid in accordance with
      paragraph (ii) or (iii) of sub-clause 1.2.1(i) of Clause 1.2
      (Construction) such fee shall no longer be payable in respect of the
      period after such prepayment or repayment has been made). This fee shall
      be distributed according to each Bank's Proportion of the relevant Bond
      (PROVIDED THAT in respect of any Long Dated Bond which has been duly
      repaid in accordance with Clause 7.1 of Clause 7

                                     - 26 -
<PAGE>

      (Long Dated Bonds) and Clause 7.2 of Clause 7 (Long Dated Bonds), such fee
      shall no longer be distributed to each Bank in respect of the period after
      such repayment has been made) and shall be payable in arrears on each
      Quarter Date following the Utilisation Date in respect of the relevant
      Bond and on the Expiry Date of the relevant Bond.

13.4  ISSUANCE FEE

      The Applicant shall pay to the Agent (for the account of the relevant
      Issuing Bank) on the Utilisation Date in respect of each Bond an issuance
      fee of L1,000 in respect of such Bond.

13.5  AGENCY FEE

      The Company shall pay to the Agent (for its own account) an agency fee in
the amount and at the times agreed in the Agency Fee Letter.

14.   TAX GROSS UP AND INDEMNITIES

14.1  DEFINITIONS

      14.1.1 In this Agreement:

            "PROTECTED PARTY" means a Finance Party which is or will be subject
            to any liability, or required to make any payment, for or on account
            of Tax in relation to a sum received or receivable (or any sum
            deemed for the purposes of Tax to be received or receivable) under a
            Finance Document.

            "TAX CREDIT" means a credit against, relief or remission for, or
            repayment of any Tax.

            "TAX DEDUCTION" means a deduction or withholding for or on account
            of Tax from a payment under a Finance Document.

            "TAX PAYMENT" means either the increase in a payment made by an
            Obligor to a Finance Party under Clause 14.2 (Tax gross-up) or a
            payment under Clause 14.3 (Tax indemnity).

      14.1.2 Unless a contrary indication appears, in this Clause 14 a reference
             to "determines" or "determined" means a determination made in the
             absolute discretion of the person making the determination.

14.2  TAX GROSS-UP

      14.2.1 Each Obligor shall make all payments to be made by it without any
             Tax Deduction, unless a Tax Deduction is required by law.

      14.2.2 The Company shall promptly upon becoming aware that an Obligor must
             make a Tax Deduction (or that there is any change in the rate or
             the basis of a Tax Deduction) notify the Agent accordingly.
             Similarly, a Finance Party shall notify the Agent on becoming so
             aware in respect of a payment payable to that Finance Party. If the
             Agent receives such notification from a Finance Party it shall
             notify the Company and that Obligor.

      14.2.3 If a Tax Deduction is required by law to be made by an Obligor, the
             amount of the payment due from that Obligor shall be increased to
             an amount which (after

                                     - 27 -
<PAGE>

             making any Tax Deduction) leaves an amount equal to the payment
             which would have been due if no Tax Deduction had been required.

      14.2.4 If an Obligor is required to make a Tax Deduction, that Obligor
             shall make that Tax Deduction and any payment required in
             connection with that Tax Deduction within the time allowed and in
             the minimum amount required by law.

      14.2.5 Within thirty days of making either a Tax Deduction or any payment
             required in connection with that Tax Deduction, the Obligor making
             that Tax Deduction shall deliver to the Agent for the Finance Party
             entitled to the payment evidence reasonably satisfactory to that
             Finance Party that the Tax Deduction has been made or (as
             applicable) any appropriate payment paid to the relevant taxing
             authority.

14.3  TAX INDEMNITY

      14.3.1 The Company shall (within three Business Days of demand by the
             Agent) pay to a Protected Party an amount equal to the loss,
             liability or cost which that Protected Party determines will be or
             has been (directly or indirectly) suffered for or on account of Tax
             by that Protected Party in respect of a Finance Document.

      14.3.2 Sub-clause 14.3.1 of this Clause 14.3 shall not apply:

             (a)  with respect to any Tax assessed on a Finance Party:

                  (i)   under the law of the jurisdiction in which that Finance
                        Party is incorporated or, if different, the jurisdiction
                        (or jurisdictions) in which that Finance Party is
                        treated as resident for tax purposes; or

                  (ii)  under the law of the jurisdiction in which that Finance
                        Party's Facility Office is located in respect of amounts
                        received or receivable in that jurisdiction,

                  if that Tax is imposed on or calculated by reference to the
                  net income received or receivable (but not any sum deemed to
                  be received or receivable) by that Finance Party; or

             (b)  to the extent a loss, liability or cost is compensated for by
                  an increased payment under Clause 14.2 (Tax gross-up);

      14.3.3 A Protected Party making, or intending to make a claim under
             sub-clause 14.3.1 of this Clause 14.3 shall promptly notify the
             Agent of the event which will give, or has given, rise to the
             claim, following which the Agent shall notify the Company.

      14.3.4 A Protected Party shall, on receiving a payment from an Obligor
             under this Clause 14.3, notify the Agent.

                                     - 28 -
<PAGE>

14.4  TAX CREDIT

      If an Obligor makes a Tax Payment and the relevant Finance Party
      determines that:

      14.4.1 a Tax Credit is attributable either to an increased payment of
             which that Tax Payment forms part, or to that Tax Payment; and

      14.4.2 that Finance Party has obtained, utilised and retained that Tax
             Credit,

      the Finance Party shall pay an amount to the Obligor which that Finance
      Party determines will leave it (after that payment) in the same after-Tax
      position as it would have been in had the Tax Payment not been required to
      be made by the Obligor.

14.5  STAMP TAXES

      The Company shall pay and, within three Business Days of demand, indemnify
      each Finance Party against any cost, loss or liability that Finance Party
      incurs in relation to all stamp duty, registration and other similar Taxes
      payable in respect of any Finance Document.

14.6  VALUE ADDED TAX

      14.6.1 All consideration expressed to be payable under a Finance Document
             by any Party to a Finance Party shall be deemed to be exclusive of
             any VAT. If VAT is chargeable on any supply made by any Finance
             Party to any Party in connection with a Finance Document, that
             Party shall pay to the Finance Party (in addition to and at the
             same time as paying the consideration) an amount equal to the
             amount of the VAT.

      14.6.2 Where a Finance Document requires any Party to reimburse a Finance
             Party for any costs or expenses, that Party shall also at the same
             time pay and indemnify the Finance Party against all VAT incurred
             by the Finance Party in respect of the costs or expenses to the
             extent that the Finance Party reasonably determines that it is not
             entitled to credit or repayment of the VAT.

15.   INCREASED COSTS

15.1  INCREASED COSTS

      15.1.1 Subject to Clause 15.3 (Exceptions) the Company shall, within three
             Business Days of a demand by the Agent, pay for the account of a

             Finance Party the amount of any Increased Costs incurred by that
             Finance Party or any of its Affiliates as a result of (a) the
             introduction of or any change in (or in the interpretation,
             administration or application of) any law or regulation or (b)
             compliance with any law or regulation made after the date of this
             Agreement.

      15.1.2 In this Agreement "INCREASED COSTS" means:

             (a)  a reduction in the rate of return from the Facility or on a
                  Finance Party's (or its Affiliate's) overall capital;

             (b)  an additional or increased cost; or

             (c)  a reduction of any amount due and payable under any Finance
                  Document,

                                     - 29 -
<PAGE>

            which is incurred or suffered by a Finance Party or any of its
            Affiliates to the extent that it is attributable to that Finance
            Party having entered into its Commitment or funding or performing
            its obligations under any Finance Document.

15.2  INCREASED COST CLAIMS

      15.2.1 A Finance Party intending to make a claim pursuant to Clause 15.1
             (Increased costs) shall notify the Agent of the event giving rise
             to the claim, following which the Agent shall promptly notify the
             Company.

      15.2.2 Each Finance Party shall, as soon as practicable after a demand by
             the Agent, provide a certificate confirming the amount of its
             Increased Costs.

15.3  EXCEPTIONS

      15.3.1 Clause 15.1 (Increased costs) does not apply to the extent any
             Increased Cost is:

             (a)  attributable to a Tax Deduction required by law to be made by
                  an Obligor;

             (b)  compensated for by Clause 14.3 (Tax indemnity);

             (c)  compensated for by the payment of the Mandatory Cost; or

             (d)  attributable to the wilful breach by the relevant Finance
                  Party or its Affiliates of any law or regulation.

      15.3.2 In this Clause 15.3, a reference to a "TAX DEDUCTION" has the same
             meaning given to the term in Clause 14.1 (Definitions).

16.   OTHER INDEMNITIES

16.1  CURRENCY INDEMNITY

      16.1.1 If any sum due from an Obligor under the Finance Documents (a
             "SUM"), or any order, judgment or award given or made in relation
             to a Sum, has to be converted from the currency (the "FIRST
             CURRENCY") in which that Sum is payable into another currency (the
             "SECOND CURRENCY") for the purpose of:

             (a)  making or filing a claim or proof against that Obligor;

             (b)  obtaining or enforcing an order, judgment or award in relation
                  to any litigation or arbitration proceedings,

            that Obligor shall as an independent obligation, within three
            Business Days of demand, indemnify each Finance Party to whom that
            Sum is due against any cost, loss or liability arising out of or as
            a result of the conversion including any discrepancy between (i) the
            rate of exchange used to convert that Sum from the First Currency
            into the Second Currency and (ii) the rate or rates of exchange
            available to that person at the time of its receipt of that Sum.

      16.1.2 Each Obligor waives any right it may have in any jurisdiction to
             pay any amount under the Finance Documents in a currency or
             currency unit other than that in which it is expressed to be
             payable.

                                     - 30 -
<PAGE>

16.2  OTHER INDEMNITIES

      The Company shall (or shall procure that an Obligor will), within three
      Business Days of demand, indemnify each Finance Party against any cost,
      loss or liability incurred by that Finance Party as a result of:

      16.2.1 the occurrence of any Event of Default; or

      16.2.2 a failure by an Obligor to pay any amount due under a
             Finance Document on its due date, including without limitation, any
             cost, loss or liability arising as a result of Clause 29 (Sharing
             among the Finance Parties).

16.3  INDEMNITY TO THE AGENT AND SECURITY TRUSTEE

      The Company shall promptly indemnify the Agent and the Security Trustee
      against any cost, loss or liability incurred by the Agent or the Security
      Trustee as a result of:

      16.3.1 investigating any event which it reasonably believes is a Default;
             or

      16.3.2 acting or relying on any notice, request or instruction which it
             reasonably believes to be genuine, correct and appropriately
             authorised.

17.   MITIGATION BY THE BANKS

17.1  MITIGATION

      17.1.1 Each Finance Party shall, in consultation with the Company, take
             all reasonable steps to mitigate any circumstances which arise and
             which would result in any amount becoming payable under or pursuant
             to, or cancelled pursuant to, any of Clause 9.1 (Illegality),
             Clause 14 (Tax gross-up and indemnities), Clause 15 (Increased
             costs) or paragraph 3 of Schedule 4 (Mandatory Cost Formulae)
             including (but not limited to) transferring its rights and
             obligations under the Finance Documents to another Affiliate or
             Facility Office or to another bank or financial institution willing
             to participate in the Facility (PROVIDED THAT no Finance Party
             shall have any obligation to take any steps to identify any such
             other bank or financial institution).

      17.1.2 Sub-clause 17.1.1 of this Clause 17.1 does not in any way limit the
             obligations of any Obligor under the Finance Documents.

17.2  LIMITATION OF LIABILITY

      17.2.1 The Company shall indemnify each Finance Party for all costs and
             expenses reasonably incurred by that Finance Party as a result of
             steps taken by it under Clause 17.1 (Mitigation).

      17.2.2 A Finance Party is not obliged to take any steps under Clause 17.1
             (Mitigation) if, in the opinion of that Finance Party (acting
             reasonably), to do so might be prejudicial to it.

18.   COSTS AND EXPENSES

18.1  TRANSACTION EXPENSES

      The Company shall promptly on demand pay the Agent and the Security
      Trustee the amount of all costs and expenses (including legal fees)
      reasonably incurred by either of

                                     - 31 -
<PAGE>

      them in connection with the negotiation, preparation, printing, execution
      and syndication of:

      18.1.1 this Agreement and any other documents referred to in this
             Agreement; and

      18.1.2 any other Finance Documents executed after the date of this
             Agreement.

18.2  AMENDMENT COSTS

      If (a) an Obligor requests an amendment, waiver or consent or (b) an
      amendment is required pursuant to Clause 30.9 (Change of currency), the
      Company shall, within three Business Days of demand, reimburse the Agent
      and the Security Trustee for the amount of all costs and expenses
      (including legal fees) reasonably incurred by the Agent or the Security
      Trustee in responding to, evaluating, negotiating or complying with that
      request or requirement.

18.3  ENFORCEMENT COSTS

      The Company shall, within three Business Days of demand, pay to each
      Finance Party the amount of all costs and expenses (including legal fees)
      incurred by that Finance Party in connection with the enforcement of, or
      the preservation of any rights under, any Finance Document.

19.   GUARANTEE AND INDEMNITY

19.1  GUARANTEE AND INDEMNITY

      The Company irrevocably and unconditionally:

      19.1.1 guarantees to each Finance Party punctual performance by each other
             Obligor of all of that Obligor's obligations under the Finance
             Documents;

      19.1.2 undertakes with each Finance Party that whenever an Obligor does
             not pay any amount when due under or in connection with any Finance
             Document, the Company shall immediately on demand pay that amount
             as if it was the principal obligor; and

      19.1.3 indemnifies each Finance Party immediately on demand against any
             cost, loss or liability suffered by that Finance Party if any
             obligation guaranteed by it is or becomes unenforceable, invalid or
             illegal. The amount of the cost, loss or liability shall be equal
             to the amount which that Finance Party would otherwise have been
             entitled to recover.

19.2  CONTINUING GUARANTEE

      This guarantee is a continuing guarantee and will extend to the ultimate
      balance of sums payable by any Obligor under the Finance Documents,
      regardless of any intermediate payment or discharge in whole or in part.

                                     - 32 -
<PAGE>

19.3  REINSTATEMENT

      If any payment by an Obligor or any discharge given by a Finance Party
      under or in respect of any Finance Document (whether in respect of the
      obligations of any Obligor or any security for those obligations or
      otherwise) is avoided or reduced as a result of insolvency or any similar
      event:

      19.3.1 the liability of each Obligor shall continue as if the payment,
             discharge, avoidance or reduction had not occurred; and

      19.3.2 each Finance Party shall be entitled to recover the value or amount
             of that security or payment from each Obligor, as if the payment,
             discharge, avoidance or reduction had not occurred.

19.4  WAIVER OF DEFENCES

      The obligations of the Company under this Clause 19 will not be affected
      by any act, omission, matter or thing which, but for this Clause, would
      reduce, release or prejudice any of its obligations under this Clause 19
      including (without limitation and whether or not known to it or any
      Finance Party):

      19.4.1 any time, waiver or consent granted to, or composition with, any
             Obligor or other person;

      19.4.2 the release of any other Obligor or any other person under the
             terms of any composition or arrangement with any creditor of any
             member of the Group;

      19.4.3 the taking, variation, compromise, exchange, renewal or release of,
             or refusal or neglect to perfect, take up or enforce, any rights
             against, or security over assets of, any Obligor or other person or
             any non-presentation or non-observance of any formality or other
             requirement in respect of any instrument or any failure to realise
             the full value of any security;

      19.4.4 any incapacity or lack of power, authority or legal personality of
             or dissolution or change in the members or status of an Obligor or
             any other person;

      19.4.5 any amendment (however fundamental) or replacement of a Finance
             Document or any other document or security;

      19.4.6 any unenforceability, illegality or invalidity of any obligation of
             any person under any Finance Document or any other document or
             security; or

      19.4.7 any insolvency or similar proceedings.

19.5  IMMEDIATE RECOURSE

      The Company waives any right it may have of first requiring any Finance
      Party (or any trustee or agent on its behalf) to proceed against or
      enforce any other rights or security or claim payment from any person
      before claiming from the Company under this Clause 19. This waiver applies
      irrespective of any law or any provision of a Finance Document to the
      contrary.

                                     - 33 -
<PAGE>

19.6  APPROPRIATIONS

      Until all amounts which may be or become payable by the Obligors under or
      in connection with the Finance Documents have been irrevocably paid in
      full, each Finance Party (or any trustee or agent on its behalf) may:

      19.6.1 refrain from applying or enforcing any other moneys, security or
             rights held or received by that Finance Party (or any trustee or
             agent on its behalf) in respect of those amounts, or apply and
             enforce the same in such manner and order as it sees fit (whether
             against those amounts or otherwise) and the Company shall not be
             entitled to the benefit of the same; and

      19.6.2 hold in an interest-bearing suspense account any moneys received
             from the Company or on account of the Company's liability under
             this Clause 19.

19.7  DEFERRAL OF COMPANY'S RIGHTS

      Until all amounts which may be or become payable by the Obligors under or
      in connection with the Finance Documents have been irrevocably paid in
      full and unless the Agent otherwise directs, the Company will not exercise
      any rights which it may have by reason of performance by it of its
      obligations under the Finance Documents:

      19.7.1 to be indemnified by an Obligor;

      19.7.2 to claim any contribution from any other guarantor of any Obligor's
             obligations under the Finance Documents; and/or

      19.7.3 to take the benefit (in whole or in part and whether by way of
             subrogation or otherwise) of any rights of the Finance Parties
             under the Finance Documents or of any other guarantee or security
             taken pursuant to, or in connection with, the Finance Documents by
             any Finance Party.

19.8  ADDITIONAL SECURITY

      This guarantee is in addition to and is not in any way prejudiced by any
      other guarantee or security now or subsequently held by any Finance Party.

20.   REPRESENTATIONS

      Other than where expressly stated to the contrary, each Obligor makes the
      representations and warranties set out in this Clause 20 to each Finance
      Party on the date of this Agreement.

20.1  STATUS

      It is a corporation, duly incorporated and validly existing under the law
      of its jurisdiction of incorporation.

20.2  BINDING OBLIGATIONS

      The obligations expressed to be assumed by it in each Finance Document
      are, subject to any general principles of law limiting its obligations
      which are specifically referred to in any legal opinion delivered pursuant
      to Clause 4 (Conditions of Utilisation) or Clause 26 (Changes to the
      Obligors), legal, valid, binding and enforceable obligations.

                                     - 34 -
<PAGE>

20.3  NON-CONFLICT WITH OTHER OBLIGATIONS

      The entry into and performance by it of, and the transactions contemplated
      by, the Finance Documents do not and will not conflict with:

      20.3.1 any law or regulation applicable to it;

      20.3.2 its constitutional documents; or

      20.3.3 any agreement or instrument binding upon it or any of its assets.

20.4  POWER AND AUTHORITY

      It has the power to enter into, perform and deliver, and has taken all
      necessary action to authorise its entry into, performance and delivery of,
      the Finance Documents to which it is a party and the transactions
      contemplated by those Finance Documents.

20.5  VALIDITY AND ADMISSIBILITY IN EVIDENCE

      All Authorisations required or desirable:

      20.5.1 to enable it lawfully to enter into, exercise its rights and comply
             with its obligations in the Finance Documents to which it is a
             party; and

      20.5.2 to make the Finance Documents to which it is a party admissible in
             evidence in its jurisdiction of incorporation,

      have been obtained or effected and are in full force and effect.

20.6  GOVERNING LAW AND ENFORCEMENT

      Subject to any reservations, qualifications or assumptions contained in
      any of the legal opinions delivered pursuant to paragraph 2, Part A
      (Conditions Precedent to Initial Utilisation), Schedule 2 or pursuant to
      paragraphs 7 and 8, Part B (Conditions Precedent Required to be Delivered
      by an Additional Obligor), Schedule 2 of this Agreement which are accepted
      by the Facility Agent:

      20.6.1 The choice of English law as the governing law of the Finance
             Documents will be recognised and enforced in its jurisdiction of
             incorporation.

      20.6.2 Any judgment obtained in England in relation to a Finance Document
             will be recognised and enforced in its jurisdiction of
             incorporation.

20.7  NO FILING OR STAMP TAXES

      Under the law of its jurisdiction of incorporation it is not necessary
      that the Finance Documents be filed, recorded or enrolled with any court
      or other authority in that jurisdiction or that any stamp, registration or
      similar tax be paid on or in relation to the Finance Documents or the
      transactions contemplated by the Finance Documents.

20.8  NO DEFAULT

      (made only by the Company) No Event of Default is continuing or might
      reasonably be expected to result from the making of any Utilisation.

                                     - 35 -
<PAGE>

20.9  SECURITY

      (made only by the Company and the Applicant) The Security expressed to be
      created under the Security Agreement constitutes a valid, first priority
      charge over the assets expressed to be charged thereunder.

20.10 REPETITION

      The Repeating Representations are deemed to be made by each Obligor by
      reference to the facts and circumstances then existing on:

      20.10.1 the date of each Utilisation Request and the first day of each
              Term; and

      20.10.2 in the case of an Additional Indemnifying Company, the day on
              which the company becomes (or it is proposed that the company
              becomes) an Additional Indemnifying Company.

21.   INFORMATION UNDERTAKINGS

21.1  FINANCIAL STATEMENTS

      The Company will provide to the Agent (in sufficient copies for all the
      Banks) certified copies of all information which is required to be
      delivered pursuant to the terms (as in force on the Effective Date) of the
      section headed "SEC Reports: Other Information of the Senior Notes
      Indenture (or which would be required to be delivered under such terms if
      any of the Notes were still outstanding) within the time periods specified
      in such section of the Senior Notes Indenture.

21.2  INFORMATION: MISCELLANEOUS

      The Company shall supply to the Agent (in sufficient copies for all the
      Banks, if the Agent so requests) promptly, such further information
      regarding the financial condition, business and operations of any member
      of the Group as any Finance Party (through the Agent) may reasonably
      request.

21.3  NOTIFICATION OF DEFAULT

      21.3.1 Each Obligor shall notify the Agent of any Default (and the steps,
             if any, being taken to remedy it) promptly upon becoming aware of
             its occurrence (unless that Obligor is aware that a notification
             has already been provided by another Obligor).

      21.3.2 Promptly upon a request by the Agent, the Company shall supply to
             the Agent a certificate signed by two of its directors or senior
             officers on its behalf certifying that to the best of the Company's
             knowledge and belief (after making due and proper enquiry) no
             Default is continuing (or if a Default is continuing, specifying
             the Default and the steps, if any, being taken to remedy it).

21.4  DURATION OF UNDERTAKINGS

      The undertakings in this Clause 21 remain in force from the date of this
      Agreement for so long as any amount is outstanding under the Finance
      Documents or in respect of any Bond or any Commitment is in force,
      provided that from the date that each Long Dated Bond has been duly repaid
      in accordance with Clause 7.1 of Clause 7 (Long Dated Bonds) or Clause 7.2
      of Clause 7 (Long Dated Bonds):

                                     - 36 -
<PAGE>

      21.4.1 the undertakings set out in Clause 21.1 (Financial Statements),
             Clause 21.2 (Information: Miscellaneous) and sub-clause 21.3.2 of
             Clause 21.3 (Notification of Default) shall no longer have effect
             from the expiry of the Availability Period; and

      21.4.2 the undertaking set out in sub-clause 21.3.1 of Clause 21.3
             (Notification of Default) shall continue to have effect but so that
             each Obligor shall only be under an obligation to notify the Agent
             of any Event of Default under Clause 24.6 (Insolvency) and Clause
             24.7 (Insolvency Proceedings) upon the terms set out in sub-clause
             21.3.1 of Clause 21.3 (Notification of Default).

22.   SECURITY UNDERTAKINGS

22.1  INITIAL CASH SECURITY

      As security for its obligations under the Finance Documents, the Applicant
      will by no later than 11 a.m. one day before the proposed date of issue of
      a Bond by an Issuing Bank deposit as cash security an amount equal to 50%
      of:

      22.1.1 in the case of any Bond to be denominated in the Base Currency,
             euro or dollars, the maximum face amount of such Bond (such deposit
             to be made in the currency of the relevant Bond); and

      22.1.2 in the case of a Bond to be denominated in an Optional Currency
             other than euro or dollars, the Dollar Amount of such Bond (such
             deposit to be made in dollars),

      in each case to the appropriate Relevant Account to be held by the
      Security Trustee under the terms of the Security Agreement (such cash
      security being "INITIAL CASH Security").

22.2  If any Initial Cash Security has been provided in respect of a Bond
      pursuant to sub-clause 22.1.2 of Clause 22.1 (Initial Cash Security), the
      Security Trustee shall at six monthly intervals after the Effective Date
      recalculate the Dollar Amount of that Bond and the Security Trustee shall
      promptly notify the Company of the amount so determined. If necessary, the
      Applicant shall within three Business Days of receiving such notification
      ensure that a further amount of dollars is deposited in the appropriate
      Relevant Account to ensure that the Security Trustee holds cash security
      which (when added to the Initial Cash Security provided in respect of the
      relevant Bond) is of a value equal to 50% of the Dollar Amount of all
      Bonds denominated in Optional Currencies other than euro or dollars
      (ignoring for this purpose cash cover provided in respect of such Bonds).
      In no event shall the Security Trustee be under any obligation to repay
      any amount of Initial Cash Security pursuant to this Clause.

22.3  ROLL-OVER OF INITIAL CASH SECURITY

      22.3.1 In the event that at any time during the Availability Period, an
             Issuing Bank is satisfied that it has no further liability under or
             in respect of a Bond issued by it (such Bond being a "DISCHARGED
             BOND"), if the Applicant so requests in the Utilisation Request for
             any other Bond to be issued on or after the date upon which such
             first Bond becomes a Discharged Bond, the Base Currency Amount of
             the Initial Cash Security in respect of the Discharged Bond
             standing to the

                                     - 37 -
<PAGE>

             credit of the Applicant in the Relevant Accounts on the day on
             which such new Bond is to be issued shall (unless the amount
             thereof has also been taken into account pursuant to Clause 9.6
             (Cash Cover) for any other purpose pursuant to the provisions of
             this Agreement) be taken into account in calculating the amount of
             Initial Cash Security required to be provided in respect of the new
             Bond requested to be issued and only such additional amount of cash
             security shall have to be paid in to the Relevant Accounts as is
             necessary (when added to the Base Currency Amount of the Initial
             Cash Security in respect of the Discharged Bond to be taken into
             account pursuant to the above provisions) to ensure that the amount
             of Initial Cash Security in respect of the new Bond which would
             otherwise be required to be provided pursuant to Clause 22.1
             (Initial Cash Security) has been provided in full.

      22.3.2 The amount of any Initial Cash Security in respect of a Discharged
             Bond taken into account pursuant to the provisions of sub-clause
             22.3.1 shall be taken into account once only (but for the avoidance
             of doubt, provided that the conditions set out in sub-clause 22.3.1
             are met, the Initial Cash Security in respect of any new Bond,
             including any element thereof arising pursuant to the provisions of
             sub-clause 22.3.1, may be taken account of in a like manner should
             such new Bond in due course become a Discharged Bond).

22.4  FURTHER CASH SECURITY

      As further security for the obligations of the Applicant under the Finance
      Documents, the Applicant will ensure that the following additional amounts
      of cash security are from time to time promptly deposited in the Relevant
      Accounts to be held by the Security Trustee under the terms of the
      Security Agreement:

      22.4.1 all Existing Performance Bond Releases, but only to the extent
             required by, and in accordance with the terms of the Escrow
             Agreement and the Notes Indentures;

      22.4.2 all Existing Performance Bond Releases, in but only to the extent
             required by, and in accordance with, the terms of the Notes
             Indentures; and

      22.4.3 all Interim Bonding Facilities Releases, but only to the extent
             required by, and in accordance with, the terms of Notes Indentures.

22.5  The Applicant's obligations to provide cash security in accordance with
      Clause 22.1 (Initial Cash Security) and Clause 22.4 (Further Cash
      Security) are and shall be without prejudice to any other obligation of
      the Company, the Applicant or any Indemnifying Company to provide any
      other cash cover pursuant to the terms of this Agreement.

22.6  INTEREST

      Interest shall accrue on the balance standing to the credit of each
      Relevant Account at such commercial rate and with such interest periods as
      the Security Trustee shall specify from time to time. All such interest on
      a Relevant Account shall be for the account of the Applicant and be
      credited to that Relevant Account.

                                     - 38 -
<PAGE>

23.   GENERAL UNDERTAKINGS

      The undertakings in this Clause 23 remain in force from the date of this
      Agreement for so long as any amount is outstanding under the Finance
      Documents or in respect of any Bond or any Commitment is in force.

23.1  AUTHORISATIONS

      Each Obligor shall promptly:

      23.1.1 obtain, comply with and do all that is necessary to maintain in
             full force and effect; and

      23.1.2 supply certified copies to the Agent of,

      any Authorisation required under any law or regulation of its jurisdiction
      of incorporation to enable it to perform its obligations under the Finance
      Documents and to ensure the legality, validity, enforceability or
      admissibility in evidence in its jurisdiction of incorporation of any
      Finance Document.

23.2  COMPLIANCE WITH LAWS

      Each Obligor shall comply in all respects with all laws to which it may be
      subject, if failure so to comply would materially impair its ability to
      perform its obligations under the Finance Documents.

23.3  APPLICANT TO BE SPECIAL PURPOSE VEHICLE

      The Applicant shall not trade or carry on any business, own any assets or
      incur any liabilities except (a) for those contemplated by the Finance
      Documents, (b) pursuant to the Interim Bonding Facilities or any
      Replacement Facilities (and the related collateral in respect thereof),
      (c) for loans provided to the Applicant by other members of the Group the
      proceeds of which are or have been applied by the Applicant in providing
      cash cover or Initial Cash Security pursuant to the terms of this
      Agreement or the Interim Bonding Facilities, (d) for the guarantees and
      Security to be granted by it pursuant to the Notes and the Notes
      Indentures and (e) for and in connection with the carrying out of such
      activities necessary to or directly incidental to the maintenance of its
      corporate existence.

24.   EVENTS OF DEFAULT

      Each of the events or circumstances set out in Clause 24 is an Event of
      Default save that (a) PROVIDED THAT all Long Dated Bonds have been repaid
      in accordance with Clause 7.1 of Clause 7 (Long Dated Bonds) and Clause
      7.2 of Clause 7 (Long Dated Bonds), the occurrence of any of such events
      or circumstances after the expiry of the Availability Period (excluding
      the events and circumstances set out in Clause 24.1 (Non-payment), 24.6
      (Insolvency) or 24.7 (Insolvency proceedings) shall not constitute an
      Event of Default and (b) none of the events and circumstances set out in
      Clause 24.6 (Insolvency) or Clause 24.7 (Insolvency Proceedings) shall of
      itself constitute an Event of Default where such event or circumstance
      arises solely and directly as a consequence of the implementation of the
      Scheme.

                                     - 39 -
<PAGE>

24.1  NON-PAYMENT

      An Obligor does not pay on the due date any amount payable pursuant to a
      Finance Document at the place, and time and in the currency in which it is
      expressed to be payable unless:

      24.1.1 its failure to pay is caused by administrative or technical error;
             and

      24.1.2 payment is made within 3 Business Days of its due date.

24.2  SECURITY

      Any requirement of Clause 22 (Security undertakings) is not satisfied.

24.3  OTHER OBLIGATIONS

      24.3.1 An Obligor does not comply with any provision of the Finance
             Documents (other than those referred to in Clause 24.1
             (Non-payment) and Clause 24.2 (Security)).

      24.3.2 No Event of Default under sub-clause 24.3.1 of this Clause 24.3 in
             relation will occur if the failure to comply is capable of remedy
             and is remedied within 5 Business Days of the Agent giving notice
             to the Company or the Company becoming aware of the failure to
             comply.

24.4  MISREPRESENTATION

      Any representation or statement made or deemed to be made by an Obligor in
      the Finance Documents or any other document delivered by or on behalf of
      any Obligor under or in connection with any Finance Document is or proves
      to have been incorrect or misleading in any material respect when made or
      deemed to be made.

24.5  CROSS DEFAULT

      Any Event of Default (as defined in the Senior Notes Indenture or the
      Junior Notes Indenture as in force on the Effective Date) occurs under the
      terms of any of the Senior Notes or the Junior Notes as in force on the
      Effective Date (or would have occurred if the relevant Notes had been
      outstanding on such terms at the relevant time).

24.6  INSOLVENCY

      24.6.1 The Company or the Applicant is unable or admits its inability to
             pay its debts as they fall due, suspends making payments on any of
             its debts or, by reason of actual or anticipated financial
             difficulties, commences negotiations with one or more of its
             creditors with a view to rescheduling any of its indebtedness.

      24.6.2 The value of the assets of the Company or the Applicant is less
             than its liabilities (taking into account contingent and
             prospective liabilities).

      24.6.3 A moratorium is declared in respect of any indebtedness of the
             Company or the Applicant.

                                     - 40 -
<PAGE>

24.7  INSOLVENCY PROCEEDINGS

      Any corporate action, legal proceedings or other procedure or step is
      taken in relation to:

      24.7.1 the suspension of payments, a moratorium of any indebtedness,
             winding-up, dissolution, administration or reorganisation (by way
             of voluntary arrangement, scheme of arrangement or otherwise) of
             the Company or the Applicant;

      24.7.2 a composition, assignment or arrangement with any creditor of the
             Company or the Applicant;

      24.7.3 the appointment of a liquidator, receiver, administrator,
             administrative receiver, compulsory manager or other similar
             officer in respect of the Company or the Applicant or any of its
             assets; or

      24.7.4 enforcement of any Security over any assets of the Company or the
             Applicant,

      or any analogous procedure or step is taken in any jurisdiction, save that
      the above provisions do not apply to (a) the mere presentation of a
      statutory demand against the Company or the Applicant or the presentation
      of a petition for the winding-up of the Company or the Applicant by a
      creditor provided that the same is contested in good faith and with due
      diligence and is discharged or struck out within 30 days of the
      presentation thereof or (b) (for the avoidance of doubt) the set-off
      against or appropriation by the Security Trustee or any Bank of any moneys
      standing to the credit of any Relevant Account or other account with the
      Security Trustee or any Bank into which cash cover has been paid pursuant
      to the terms of the Security Agreement or the security document relating
      to that account in circumstances where such set-off or appropriation is
      made in satisfaction of the liabilities of the Applicant or any Relevant
      Indemnifying Company under sub-clause 8.2.2 of Clause 8.2 (Claims under a
      Letter of Credit) or sub-clause 8.3.2 of Clause 8.3 (Indemnities).

24.8  UNLAWFULNESS

      It is or becomes unlawful for an Obligor to perform any of its obligations
      under the Finance Documents.

24.9  REPUDIATION

      An Obligor repudiates a Finance Document or evidences an intention to
      repudiate a Finance Document.

24.10 REMEDIES

      On and at any time after the occurrence of an Event of Default which is
      continuing:

      24.10.1 the Agent shall if so directed by any Bank, by notice to the
              Company:

              (a) cancel the Commitment of that Bank whereupon that Commitment
                  shall immediately be cancelled; and/or

              (b) declare that full cash cover in respect of that Bank's
                  participation under this Agreement in respect of each Bond is
                  immediately due and payable whereupon it shall become
                  immediately due and payable by the Applicant and each
                  Indemnifying Company; and

                                     - 41 -
<PAGE>

      24.10.2 the Agent may, and shall if so directed by the Majority Banks, by
              notice to the Company:

              (a) cancel the Total Commitments whereupon they shall immediately
                  be cancelled; and/or

              (b) declare that full cash cover in respect of each Bond is
                  immediately due and payable whereupon it shall become
                  immediately due and payable by the Applicant and each
                  Indemnifying Company.

25.   CHANGES TO THE BANKS

25.1  ASSIGNMENTS AND TRANSFERS BY THE BANKS

      Subject to this Clause 25, a Bank (the "EXISTING BANK") may:

      25.1.1 assign any of its rights; or

      25.1.2 transfer by novation any of its rights and obligations,

      under the Finance Documents to another bank or financial institution or to
      a trust, fund or other entity which is regularly engaged in or established
      for the purpose of making, purchasing or investing in loans, securities or
      other financial assets (the "NEW BANK").

25.2  CONDITIONS OF ASSIGNMENT OR TRANSFER

      25.2.1 The consent of each Issuing Bank is required for an assignment or
             transfer by a Bank.

      25.2.2 An assignment will only be effective on receipt by the Agent of
             written confirmation from the New Bank (in form and substance
             satisfactory to the Agent) that the New Bank will assume the same
             obligations to the other Finance Parties as it would have been
             under if it was an Original Bank.

      25.2.3 A transfer will only be effective if all the procedures set out in
             Clause 25.5 (Procedure for transfer) are complied with.

      25.2.4 If:

             (a)  a Bank assigns or transfers any of its rights or obligations
                  under the Finance Documents or changes its Facility Office;
                  and

             (b)  as a result of circumstances existing at the date the
                  assignment, transfer or change occurs, an Obligor would be
                  obliged to make a payment to the New Bank or Bank acting
                  through its new Facility Office under Clause 14 (Tax gross-up
                  and indemnities) or Clause 15 (Increased Costs),

      then the New Bank or Bank acting through its new Facility Office is only
      entitled to receive payment under those Clauses to the same extent as the
      Existing Bank or Bank acting through its previous Facility Office would
      have been if the assignment, transfer or change had not occurred.

                                     - 42 -
<PAGE>

25.3  ASSIGNMENT OR TRANSFER FEE

      The New Bank shall, on the date upon which an assignment or transfer takes
      effect, pay to the Agent (for its own account) a fee of L1,000.

25.4  LIMITATION OF RESPONSIBILITY OF EXISTING BANKS

      25.4.1 Unless expressly agreed to the contrary, an Existing Bank makes no
             representation or warranty and assumes no responsibility to a New
             Bank for:

             (a)  the legality, validity, effectiveness, adequacy or
                  enforceability of the Finance Documents or any other
                  documents;

             (b)  the financial condition of any Obligor;

             (c)  the performance and observance by any Obligor of its
                  obligations under the Finance Documents or any other
                  documents; or

             (d)  the accuracy of any statements (whether written or oral) made
                  in or in connection with any Finance Document or any other
                  document,

             and any representations or warranties implied by law are excluded.

      25.4.2 Each New Bank confirms to the Existing Bank and the other Finance
             Parties that it:

             (a)  has made (and shall continue to make) its own independent
                  investigation and assessment of the financial condition and
                  affairs of each Obligor and its related entities in connection
                  with its participation in this Agreement and has not relied
                  exclusively on any information provided to it by the Existing
                  Bank in connection with any Finance Document; and

             (b)  will continue to make its own independent appraisal of the
                  creditworthiness of each Obligor and its related entities
                  whilst any amount is or may be outstanding under the Finance
                  Documents or any Commitment is in force.

      25.4.3 Nothing in any Finance Document obliges an Existing Bank to:

             (a)  accept a re-transfer from a New Bank of any of the rights and
                  obligations assigned or transferred under this Clause 25; or

             (b)  support any losses directly or indirectly incurred by the New
                  Bank by reason of the non-performance by any Obligor of its
                  obligations under the Finance Documents or otherwise.

25.5  PROCEDURE FOR TRANSFER

      25.5.1 Subject to the conditions set out in Clause 25.2 (Conditions of
             assignment or transfer) a transfer is effected in accordance with
             sub-clause 25.5.2 of this Clause 25.5 when the Agent executes an
             otherwise duly completed Transfer Certificate delivered to it by
             the Existing Bank and the New Bank. The Agent shall, as soon as
             reasonably practicable after receipt by it of a duly completed
             Transfer Certificate appearing on its face to comply with the terms
             of this

                                     - 43 -
<PAGE>

             Agreement and delivered in accordance with the terms of this
             Agreement, execute that Transfer Certificate.

      25.5.2 The Existing Bank shall at the same time as it delivers to the
             Agent the Transfer Certificate, as required under sub-clause 25.5.1
             of this Clause 25.5,

             (i)  send to the Company a copy of such Transfer Certificate, and

             (ii) deliver to the STID Security Trustee a duly completed
                  Agent/Trustee/New Bonding Facility Bank Accession Letter (as
                  defined in the Security Trust and Intercreditor Deed) as a New
                  Bonding Facility Bank (as defined in the Security Trust and
                  Intercreditor Deed) pursuant to clause 22.4 (Other Parties) of
                  the Security Trust and Intercreditor Deed.

      25.5.3 On the Transfer Date:

             (a)  to the extent that in the Transfer Certificate the Existing
                  Bank seeks to transfer by novation its rights and obligations
                  under the Finance Documents each of the Obligors and the
                  Existing Bank shall be released from further obligations
                  towards one another under the Finance Documents and their
                  respective rights against one another under the Finance
                  Documents shall be cancelled (being the "DISCHARGED RIGHTS AND
                  OBLIGATIONS");

             (b)  each of the Obligors and the New Bank shall assume obligations
                  towards one another and/or acquire rights against one another
                  which differ from the Discharged Rights and Obligations only
                  insofar as that Obligor and the New Bank have assumed and/or
                  acquired the same in place of that Obligor and the Existing
                  Bank;

             (c)  the Agent, the Security Trustee, the Issuing Banks, the New
                  Bank and other Banks shall acquire the same rights and assume
                  the same obligations between themselves as they would have
                  acquired and assumed had the New Bank been an Original Bank
                  with the rights and/or obligations acquired or assumed by it
                  as a result of the transfer and to that extent the Agent, the
                  Arranger and the Existing Bank shall each be released from
                  further obligations to each other under the Finance Documents;
                  and

             (d)  the New Bank shall become a Party as a "Bank".

25.6  DISCLOSURE OF INFORMATION

      25.6.1 Each Finance Party must keep confidential any information supplied
             to it by or on behalf of any Obligor in connection with the Finance
             Documents ("CONFIDENTIAL INFORMATION"). However, a Finance Party is
             entitled to disclose information:

             (a)  which is publicly available, other than as a result of a
                  breach by that Finance Party of this Clause;

             (b)  in connection with any legal or arbitration proceedings;

                                     - 44 -
<PAGE>

             (c)  if required to do so under any law or regulation;

             (d)  to a governmental, banking, taxation or other regulatory
                  authority;

             (e)  to its professional advisers;

             (f)  to any Secured Creditor and any member of the Group;

             (g)  to the extent allowed under sub clause 25.6.2 below; or

             (h)  with the agreement of the relevant Obligor.

      25.6.2 Any Finance Party may also disclose to any of its Affiliates and
             any other person:

             (a)  to (or through) whom that Finance Party assigns or transfers
                  (or may potentially assign or transfer) all or any of its
                  rights and obligations under this Agreement;

             (b)  with (or through) whom that Finance Party enters into (or may
                  potentially enter into) any sub-participation in relation to,
                  or any other transaction under which payments are to be made
                  by reference to, this Agreement or any Obligor;

      any Confidential Information as that Finance Party shall consider
      appropriate if the person to whom the information is to be given has
      entered into a Confidentiality Undertaking.

26.   CHANGES TO THE OBLIGORS

26.1  ASSIGNMENTS AND TRANSFER BY OBLIGORS

      No Obligor may assign any of its rights or transfer any of its rights or
      obligations under the Finance Documents.

26.2  ADDITIONAL INDEMNIFYING COMPANIES

      26.2.1 The Company may request that any of its wholly owned Subsidiaries
             which is a Non-US Subsidiary becomes an Additional Indemnifying
             Company. That Subsidiary shall become an Additional Indemnifying
             Company if:

             (a)  the Company delivers to the Agent a duly completed and
                  executed Accession Letter;

             (b)  the Company confirms that no Default is continuing or would
                  occur as a result of that Subsidiary becoming an Additional
                  Indemnifying Company; and

             (c)  the Agent has received all of the documents and other evidence
                  listed in Part B (Conditions precedent required to be
                  delivered by an Additional Obligor) of Schedule 2 in relation
                  to that Additional Indemnifying Company, each in form and
                  substance satisfactory to the Agent.

                                     - 45 -
<PAGE>
      26.2.2 The Agent shall notify the Company and the Banks promptly upon
             being satisfied that it has received (in form and substance
             satisfactory to it) all the documents and other evidence listed in
             Part B (Conditions precedent required to be delivered by an
             Additional Obligor) of Schedule 2.

26.3  REPETITION OF REPRESENTATIONS

      Delivery of an Accession Letter constitutes confirmation by the relevant
      Subsidiary that the Repeating Representations to be given by it are true
      and correct in relation to it as at the date of delivery as if made by
      reference to the facts and circumstances then existing.

27.   ROLE OF THE AGENT AND THE SECURITY TRUSTEE

27.1  APPOINTMENT OF THE AGENT

      27.1.1 Each other Finance Party appoints the Agent to act as its agent and
             the Security Trustee to act as its security trustee under and in
             connection with the Finance Documents, including (but without
             limitation), in the case of the Agent, to enter into the Security
             Trust and Intercreditor Deed as a "DEBT REPRESENTATIVE" (as defined
             in the Security Trust and Intercreditor Deed).

      27.1.2 Each other Finance Party authorises the Agent and the Security
             Trustee to exercise the rights, powers, authorities and discretions
             specifically given to the Agent and the Security Trustee under or
             in connection with the Finance Documents together with any other
             incidental rights, powers, authorities and discretions.

27.2  DUTIES OF THE AGENT

      27.2.1 The Agent and the Security Trustee shall promptly forward to a
             Party the original or a copy of any document which is delivered to
             the Agent or the Security Trustee for that Party by any other
             Party.

      27.2.2 Except where a Finance Document specifically provides otherwise,
             neither the Agent nor the Security Trustee is obliged to review or
             check the adequacy, accuracy or completeness of any document it
             forwards to another Party.

      27.2.3 If the Agent or the Security Trustee receives notice from a Party
             referring to this Agreement, describing a Default and stating that
             the circumstance described is a Default, it shall promptly notify
             the Finance Parties.

      27.2.4 If the Agent or the Security Trustee is aware of the non-payment of
             any principal, interest, commitment fee or other fee payable to a
             Finance Party under this Agreement it shall promptly notify the
             other Finance Parties.

      27.2.5 The Agent's and Security Trustee's duties under the Finance
             Documents are solely mechanical and administrative in nature.

27.3  NO FIDUCIARY DUTIES

      27.3.1 Except as expressly set out herein nothing in this Agreement
             constitutes the Agent or the Security Trustee as a trustee or
             fiduciary of any other person.

                                     - 46 -
<PAGE>
      27.3.2 Neither the Agent nor the Security Trustee shall be bound to
             account to any Bank for any sum or the profit element of any sum
             received by it for its own account.

27.4  BUSINESS WITH THE GROUP

      The Agent and the Security Trustee may accept deposits from, lend money to
      and generally engage in any kind of banking or other business with any
      member of the Group.

27.5  RIGHTS AND DISCRETIONS OF THE AGENT AND SECURITY TRUSTEE

      27.5.1 The Agent and the Security Trustee may rely on:

             (a)  any representation, notice or document believed by it to be
                  genuine, correct and appropriately authorised; and

             (b)  any statement made by a director, authorised signatory or
                  employee of any person regarding any matters which may
                  reasonably be assumed to be within his knowledge or within his
                  power to verify.

      27.5.2 Each of the Agent and the Security Trustee may assume (unless it
             has received notice to the contrary in its capacity as agent or
             security trustee for the Banks) that:

             (a)  no Default has occurred (unless it has actual knowledge of a
                  Default arising under Clause 24.1 (Non-payment));

             (b)  any right, power, authority or discretion vested in any Party
                  or the Majority Banks has not been exercised; and

             (c)  any notice or request made by the Company or the Applicant
                  (other than a Utilisation Request) is made on behalf of and
                  with the consent and knowledge of all the Obligors.

      27.5.3 The Agent and the Security Trustee may engage, pay for and rely on
             the advice or services of any lawyers, accountants, surveyors or
             other experts.

      27.5.4 Each of the Agent and the Security Trustee may act in relation to
             the Finance Documents through its personnel and agents.

      27.5.5 Each of the Agent and the Security Trustee may disclose to any
             other Party any information it reasonably believes it has received
             as agent or security trustee under this Agreement.

      27.5.6 Notwithstanding any other provision of any Finance Document to the
             contrary, neither the Agent nor the Security Trustee is obliged to
             do or omit to do anything if it would or might in its reasonable
             opinion constitute a breach of any law or regulation or a breach of
             a fiduciary duty or duty of confidentiality.

27.6  MAJORITY BANKS' INSTRUCTIONS

      27.6.1 Unless a contrary indication appears in a Finance Document, each of
             the Agent and the Security Trustee shall (a) exercise any right,
             power, authority or

                                      -47-
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             discretion vested in it as Agent in accordance with any
             instructions given to it by the Majority Banks (or, if so
             instructed by the Majority Banks, refrain from exercising any
             right, power, authority or discretion vested in it as agent or
             security trustee) and (b) not be liable for any act (or omission)
             if it acts (or refrains from taking any action) in accordance with
             an instruction of the Majority Banks.

      27.6.2 Unless a contrary indication appears in a Finance Document, any
             instructions given by the Majority Banks will be binding on all the
             Finance Parties.

      27.6.3 Each of the Agent and the Security Trustee may refrain from acting
             in accordance with the instructions of the Majority Banks (or, if
             appropriate, the Banks) until it has received such security as it
             may require for any cost, loss or liability (together with any
             associated VAT) which it may incur in complying with the
             instructions.

      27.6.4 In the absence of instructions from the Majority Banks, (or, if
             appropriate, the Banks) each of the Agent and the Security Trustee
             may act (or refrain from taking action) as it considers to be in
             the best interest of the Banks.

      27.6.5 Neither the Agent nor the Security Trustee is authorised to act on
             behalf of a Bank (without first obtaining that Bank's consent) in
             any legal or arbitration proceedings relating to any Finance
             Document.

27.7  RESPONSIBILITY FOR DOCUMENTATION

      Neither the Agent nor the Security Trustee:

      27.7.1 is responsible for the adequacy, accuracy and/or completeness of
             any information (whether oral or written) supplied by the Agent,
             the Security Trustee, an Obligor or any other person given in or in
             connection with any Finance Document; or

      27.7.2 is responsible for the legality, validity, effectiveness, adequacy
             or enforceability of any Finance Document or any other agreement,
             arrangement or document entered into, made or executed in
             anticipation of or in connection with any Finance Document.

27.8  EXCLUSION OF LIABILITY

      27.8.1 Without limiting sub-clause 27.8.2 of this Clause 27.8, neither the
             Agent nor the Security Trustee will be liable for any action taken
             by it under or in connection with any Finance Document, unless
             directly caused by its gross negligence or wilful misconduct.

      27.8.2 No Party (other than the Agent or the Security Trustee) may take
             any proceedings against any officer, employee or agent of the Agent
             or the Security Trustee in respect of any claim it might have
             against the Agent or the Security Trustee or in respect of any act
             or omission of any kind by that officer, employee or agent in
             relation to any Finance Document and any officer, employee or agent
             of the Agent or the Security Trustee may rely on this Clause

                                      -48-
<PAGE>
             subject to Clause 1.3 (Third Party Rights) and the provisions of
             the Third Parties Act.

      27.8.3 Neither the Agent nor the Security Trustee will be liable for any
             delay (or any related consequences) in crediting an account with an
             amount required under the Finance Documents to be paid by the Agent
             or the Security Trustee if the Agent or the Security Trustee has
             taken all necessary steps as soon as reasonably practicable to
             comply with the regulations or operating procedures of any
             recognised clearing or settlement system used by the Agent or the
             Security Trustee for that purpose.

27.9  BANKS' INDEMNITY TO THE AGENT

      Each Bank shall (in proportion to its share of the Total Commitments or,
      if the Total Commitments are then zero, to its share of the Total
      Commitments immediately prior to their reduction to zero) indemnify the
      Agent and the Security Trustee, within three Business Days of demand,
      against any cost, loss or liability incurred by the Agent or Security
      Trustee (otherwise than by reason of the Agent's or Security Trustee's
      gross negligence or wilful misconduct) in acting as Agent or Security
      Trustee under the Finance Documents (unless the Agent or Security Trustee
      has been reimbursed by an Obligor pursuant to a Finance Document).

27.10 RESIGNATION OF THE AGENT AND SECURITY TRUSTEE

      27.10.1 Each of the Agent and the Security Trustee may resign and appoint
              one of its Affiliates acting through an office in the United
              Kingdom as successor by giving notice to the other Finance Parties
              and the Company.

      27.10.2 Alternatively the Agent or Security Trustee may resign by giving
              notice to the other Finance Parties and the Company, in which case
              the Majority Banks (after consultation with the Company) may
              appoint a successor Agent or Security Trustee.

      27.10.3 If the Majority Banks have not appointed a successor Agent or
              Security Trustee in accordance with sub-clause 27.10.2 of this
              Clause 27.10 within 30 days after notice of resignation was given,
              the Agent or Security Trustee (after consultation with the
              Company) may appoint a successor Agent or Security Trustee (acting
              through an office in the United Kingdom).

      27.10.4 The retiring Agent or Security Trustee shall, at its own cost,
              make available to the successor Agent or Security Trustee such
              documents and records and provide such assistance as the successor
              Agent may reasonably request for the purposes of performing its
              functions as Agent or Security Trustee under the Finance
              Documents.

      27.10.5 The Agent's or Security Trustee's resignation notice shall only
              take effect upon the appointment of a successor.

      27.10.6 Upon the appointment of a successor, the retiring Agent or
              Security Trustee shall be discharged from any further obligation
              in respect of the Finance Documents but shall remain entitled to
              the benefit of this Clause 27. Its

                                      -49-
<PAGE>
              successor and each of the other Parties shall have the same rights
              and obligations amongst themselves as they would have had if such
              successor had been an original Party.

      27.10.7 After consultation with the Company, the Majority Banks may, by
              notice to the Agent or Security Trustee, require it to resign in
              accordance with sub-clause 27.10.2 of this Clause 27.10. In this
              event, the Agent or Security Trustee shall resign in accordance
              with sub-clause 27.10.2 of this Clause 27.10.

27.11 CONFIDENTIALITY

      27.11.1 In acting as agent or security trustee for the Finance Parties,
              the Agent or Security Trustee shall be regarded as acting through
              its agency or trustee division which shall be treated as a
              separate entity from any other of its divisions or departments.

      27.11.2 If information is received by another division or department of
              the Agent or Security Trustee, it may be treated as confidential
              to that division or department and the Agent or Security Trustee
              shall not be deemed to have notice of it.

27.12 RELATIONSHIP WITH THE BANKS

      27.12.1 Each of the Agent and Security Trustee may treat each Bank as a
              Bank, entitled to payments under this Agreement and acting through
              its Facility Office unless it has received not less than five
              Business Days prior notice from that Bank to the contrary in
              accordance with the terms of this Agreement.

      27.12.2 Each Bank shall supply the Agent with any information required by
              the Agent in order to calculate the Mandatory Cost in accordance
              with Schedule 4 (Mandatory Cost Formulae).

27.13 CREDIT APPRAISAL BY THE BANKS

      Without affecting the responsibility of any Obligor for information
      supplied by it or on its behalf in connection with any Finance Document,
      each Bank confirms to the Agent and the Security Trustee that it has been,
      and will continue to be, solely responsible for making its own independent
      appraisal and investigation of all risks arising under or in connection
      with any Finance Document including but not limited to:

      27.13.1 the financial condition, status and nature of each member of the
              Group;

      27.13.2 the legality, validity, effectiveness, adequacy or enforceability
              of any Finance Document and any other agreement, arrangement or
              document entered into, made or executed in anticipation of, under
              or in connection with any Finance Document;

      27.13.3 whether that Bank has recourse, and the nature and extent of that
              recourse, against any Party or any of its respective assets under
              or in connection with any Finance Document, the transactions
              contemplated by the Finance Documents or any other agreement,
              arrangement or document entered into, made or executed in
              anticipation of, under or in connection with any Finance Document;
              and

                                      -50-
<PAGE>
      27.13.4 the adequacy, accuracy and/or completeness of any information
              provided by the Agent or the Security Trustee, any Party or by any
              other person under or in connection with any Finance Document, the
              transactions contemplated by the Finance Documents or any other
              agreement, arrangement or document entered into, made or executed
              in anticipation of, under or in connection with any Finance
              Document.

27.14 REFERENCE BANKS

      If a Reference Bank (or, if a Reference Bank is not a Bank, the Bank of
      which it is an Affiliate) ceases to be a Bank, the Agent shall (in
      consultation with the Company) appoint another Bank or an Affiliate of a
      Bank to replace that Reference Bank.

27.15 AGENT'S AND SECURITY TRUSTEE'S MANAGEMENT TIME

      Any amount payable to the Agent or Security Trustee under Clause 16.3
      (Indemnity to the Agent and Security Trustee), Clause 18 (Costs and
      expenses) and Clause 27.9 (Banks' indemnity to the Agent) shall include
      the cost of utilising the Agent's and Security Trustee's management time
      or other resources and will be calculated on the basis of such reasonable
      daily or hourly rates as the Agent or Security Trustee may notify to the
      Company and the Banks, and is in addition to any fee paid or payable to
      the Agent and Security Trustee under Clause 13 (Fees).

27.16 DEDUCTION FROM AMOUNTS PAYABLE BY THE AGENT OR SECURITY TRUSTEE If any
      Party owes an amount to the Agent or Security Trustee under the Finance
      Documents the Agent or Security Trustee may, after giving notice to that
      Party, deduct an amount not exceeding that amount from any payment to that
      Party which the Agent or Security Trustee would otherwise be obliged to
      make under the Finance Documents and apply the amount deducted in or
      towards satisfaction of the amount owed. For the purposes of the Finance
      Documents that Party shall be regarded as having received any amount so
      deducted.

27.17 TRUST

      The Security Trustee declares that it shall hold the Transaction Security
      on trust for the Finance Parties on the terms contained in this Agreement.
      Each of the parties to this Agreement agrees that the Security Trustee
      shall have only those duties, obligations and responsibilities expressly
      specified in this Agreement or the Security Agreement (and no others shall
      be implied).

27.18 NO INDEPENDENT POWER

      The Finance Parties shall not have any independent power to enforce, or
      have recourse to, any of the Transaction Security or to exercise any
      rights or powers arising under the Security Agreement except through the
      Security Trustee.

27.19 SECURITY TRUSTEE'S ACTIONS

      Subject to the provisions of this Clause 27:

      27.19.1 the Security Trustee may, in the absence of any instructions to
              the contrary, take such action in the exercise of any of its
              powers and duties under the Finance Documents which in its
              absolute discretion it considers to be for the protection and
              benefit of all the Finance Parties; and

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<PAGE>
      27.19.2 at any time after receipt by the Security Trustee of notice from
              the Agent directing the Security Trustee to exercise all or any of
              its rights, remedies, powers or discretions under any of the
              Finance Documents, the Security Trustee may, and shall if so
              directed by the Agent, take any action as in its sole discretion
              it thinks fit to enforce the Transaction Security.

27.20 NO RESPONSIBILITY TO PERFECT TRANSACTION SECURITY

      The Security Trustee shall not be liable for any failure to:

      27.20.1 require the deposit with it of any deed or document certifying,
              representing or constituting the title of any Obligor to any of
              the property subject to the Transaction Security;

      27.20.2 obtain any licence, consent or other authority for the execution,
              delivery, legality, validity, enforceability or admissibility in
              evidence of any of the Finance Documents or the Transaction
              Security;

      27.20.3 register, file or record or otherwise protect any of the
              Transaction Security (or the priority of any of the Transaction
              Security) under any applicable laws in any jurisdiction or to give
              notice to any person of the execution of any of the Finance
              Documents or of the Transaction Security;

      27.20.4 take, or to require any of the Obligors to take, any steps to
              perfect its title to any of the property subject to the
              Transaction Security or to render the Transaction Security
              effective or to secure the creation of any ancillary Security
              under the laws of any jurisdiction; or

      27.20.5 require any further assurances in relation to any of the
              Transaction Security Documents.

27.21 CUSTODIANS AND NOMINEES

      The Security Trustee may appoint and pay any person to act as a custodian
      or nominee on any terms in relation to any assets of the trust as the
      Security Trustee may determine, including for the purpose of depositing
      with a custodian this Agreement or any document relating to the trust
      created under this Agreement and the Security Trustee shall not be
      responsible for any loss, liability, expense, demand, cost, claim or
      proceedings incurred by reason of the misconduct, omission or default on
      the part of any person appointed by it under this Agreement or be bound to
      supervise the proceedings or acts of any person PROVIDED THAT the Security
      Trustee has acted with due care in appointing such custodian or nominee.

27.22 REFRAIN FROM ILLEGALITY

      The Security Trustee may refrain from doing anything which in its opinion
      will or may be contrary to any relevant law, directive or regulation of
      any jurisdiction which would or might otherwise render it liable to any
      person, and the Security Trustee may do anything which is, in its opinion,
      necessary to comply with any law, directive or regulation.

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<PAGE>
27.23 WINDING UP OF TRUST

      If the Security Trustee, with the approval of the Majority Banks,
      determines that (a) all of the obligations secured by the Security
      Agreement have been fully and finally discharged and (b) none of the
      Finance Parties is under any commitment, obligation or liability (actual
      or contingent) to provide financial accommodation to any Obligor pursuant
      to the Finance Documents, the trusts set out in this Agreement shall be
      wound up and the Security Trustee shall release, without recourse or
      warranty, all of the Transaction Security and the rights of the Security
      Trustee under the Security Agreement.

27.24 PERPETUITY PERIOD

      The perpetuity period under the rule against perpetuities, if applicable
      to this Agreement, shall be the period of eighty years from the date of
      this Agreement.

27.25 POWERS SUPPLEMENTAL

      The rights, powers and discretions conferred upon the Security Trustee by
      this Agreement shall be supplemental to the Trustee Acts 1925 and 2000 and
      in addition to any which may be vested in the Security Trustee by general
      law or otherwise.

27.26 DISAPPLICATION

      Section 1 of the Trustee Act 2000 shall not apply to the duties of the
      Security Trustee in relation to the trusts constituted by this Agreement.
      Where there are any inconsistencies between the Trustee Acts 1925 and 2000
      and the provisions of this Agreement, the provisions of this Agreement
      shall, to the extent allowed by law, prevail and, in the case of any
      inconsistency with the Trustee Act 2000, the provisions of this Agreement
      shall constitute a restriction or exclusion for the purposes of that Act.

27.27 DELEGATION

      27.27.1 The Security Trustee may, at any time, delegate by power of
              attorney or otherwise to any person for any period, all or any of
              the rights, powers and discretions vested in it by any of the
              Finance Documents.

      27.27.2 The delegation may be made upon any terms and conditions
              (including the power to sub-delegate) and subject to any
              restrictions as the Security Trustee may think fit in the
              interests of the Finance Parties and it shall not be bound to
              supervise, or be in any way responsible for any loss incurred by
              reason of any misconduct or default on the part of any delegate or
              sub-delegate.

27.28 ORDER OF APPLICATION

      Subject to the terms of the Security Trust and Intercreditor Deed, all
      monies from time to time received or recovered by the Security Trustee in
      connection with the realisation or enforcement of all or any part of the
      Transaction Security or recovered from the STID Security Trustee in
      connection with the realisation or enforcement of the STID Transaction
      Security shall be held by the Security Trustee on trust to apply them at
      such times as the Security Trustee sees fit, to the extent permitted by
      applicable law, in the following order of priority:

      27.28.1 in discharging any sums owing to the Security Trustee (in its
              capacity as Security Trustee);

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<PAGE>
      27.28.2 in payment to the Agent, on behalf of the Secured Parties, for
              application towards the discharge of all sums due and payable by
              any Obligor under any of the Finance Documents in accordance with
              Clause 30.5 (Partial payments).

      27.28.3 if none of the Obligors is under any further actual or contingent
              liability under any Finance Document, in payment to any person to
              whom the Security Trustee is obliged to pay in priority to any
              Obligor; and

      27.28.4 the balance, if any, in payment to the relevant Obligor.

27.29 INVESTMENT OF PROCEEDS

      Prior to the application of the proceeds of the Transaction Security in
      accordance with Clause 27.28 (Order of Application) the Security Trustee
      may, at its discretion, hold all or part of those proceeds in an interest
      bearing suspense or impersonal account(s) in the name of the Security
      Trustee or Agent with such financial institution (including itself) for so
      long as the Security Trustee thinks fit (the interest being credited to
      the relevant account) pending the application from time to time of those
      monies at the Security Trustee's discretion in accordance with the
      provisions of this Clause.

27.30 CURRENCY CONVERSION

      27.30.1 For the purpose of or pending the discharge of any of the Secured
              Obligations the Security Trustee may convert any monies received
              or recovered by the Security Trustee from one currency to another,
              at the spot rate at which the Security Trustee is able to purchase
              the currency in which the Secured Obligations are due with the
              amount received.

      27.30.2 The obligations of any Obligor to pay in the due currency shall
              only be satisfied to the extent of the amount of the due currency
              purchased after deducting the costs of conversion.

27.31 PERMITTED DEDUCTIONS

      The Security Trustee shall be entitled (a) to set aside by way of reserve
      amounts required to meet and (b) to make and pay, any deductions and
      withholdings (on account of Taxes or otherwise) which it is or may be
      required by any applicable law to make from any distribution or payment
      made by it under this Agreement, and to pay all Taxes which may be
      assessed against it in respect of any of the property charged under the
      Security Agreement, or as a consequence of performing its duties, or by
      virtue of its capacity as Security Trustee under any of the Finance
      Documents or otherwise (except in connection with its remuneration for
      performing its duties under any Finance Document).

27.32 DISCHARGE OF SECURED OBLIGATIONS

      27.32.1 Any payment to be made in respect of the Secured Obligations by
              the Security Trustee may be made to the Agent on behalf of the
              Banks and that payment shall be a good discharge to the extent of
              that payment, to the Security Trustee.

      27.32.2 The Security Trustee is under no obligation to make payment to the
              Agent in the same currency as that in which any Unpaid Sum is
              denominated.

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28.   CONDUCT OF BUSINESS BY THE FINANCE PARTIES

      No provision of this Agreement will:

      28.1.1 interfere with the right of any Finance Party to arrange its
             affairs (tax or otherwise) in whatever manner it thinks fit;

      28.1.2 oblige any Finance Party to investigate or claim any credit,
             relief, remission or repayment available to it or the extent, order
             and manner of any claim; or

      28.1.3 oblige any Finance Party to disclose any information relating to
             its affairs (tax or otherwise) or any computations in respect of
             Tax.

29.   SHARING AMONG THE FINANCE PARTIES

29.1  PAYMENTS TO FINANCE PARTIES

      If a Finance Party (a "RECOVERING FINANCE PARTY") receives or recovers any
      amount from an Obligor other than in accordance with Clause 30 (Payment
      mechanics) and applies that amount to a payment due under the Finance
      Documents then:

      29.1.1 the Recovering Finance Party shall, within three Business Days,
             notify details of the receipt or recovery, to the Agent;

      29.1.2 the Agent shall determine whether the receipt or recovery is in
             excess of the amount the Recovering Finance Party would have been
             paid had the receipt or recovery been received or made by the Agent
             and distributed in accordance with Clause 30 (Payment mechanics),
             without taking account of any Tax which would be imposed on the
             Agent in relation to the receipt, recovery or distribution; and

      29.1.3 the Recovering Finance Party shall, within three Business Days of
             demand by the Agent, pay to the Agent an amount (the "SHARING
             PAYMENT") equal to such receipt or recovery less any amount which
             the Agent determines may be retained by the Recovering Finance
             Party as its share of any payment to be made, in accordance with
             Clause 30.5 (Partial payments).

29.2  REDISTRIBUTION OF PAYMENTS

      The Agent shall treat the Sharing Payment as if it had been paid by the
      relevant Obligor and distribute it between the Finance Parties (other than
      the Recovering Finance Party) in accordance with Clause 30.5 (Partial
      payments).

29.3  RECOVERING FINANCE PARTY'S RIGHTS

      29.3.1 On a distribution by the Agent under Clause 29.2 (Redistribution of
             payments), the Recovering Finance Party will be subrogated to the
             rights of the Finance Parties which have shared in the
             redistribution.

      29.3.2 If and to the extent that the Recovering Finance Party is not able
             to rely on its rights under sub-clause 29.3.1 of this Clause 29.3,
             the relevant Obligor shall be liable to the Recovering Finance
             Party for a debt equal to the Sharing Payment which is immediately
             due and payable.

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<PAGE>
29.4  REVERSAL OF REDISTRIBUTION

      If any part of the Sharing Payment received or recovered by a Recovering
      Finance Party becomes repayable and is repaid by that Recovering Finance
      Party, then:

      29.4.1 each Finance Party which has received a share of the relevant
             Sharing Payment pursuant to Clause 29.2 (Redistribution of
             payments) shall, upon request of the Agent, pay to the Agent for
             account of that Recovering Finance Party an amount equal to the
             appropriate part of its share of the Sharing Payment (together with
             an amount as is necessary to reimburse that Recovering Finance
             Party for its proportion of any interest on the Sharing Payment
             which that Recovering Finance Party is required to pay); and

      29.4.2 that Recovering Finance Party's rights of subrogation in respect of
             any reimbursement shall be cancelled and the relevant Obligor will
             be liable to the reimbursing Bank for the amount so reimbursed.

29.5  EXCEPTIONS

      29.5.1 This Clause 29 shall not apply to the extent that the Recovering
             Finance Party would not, after making any payment pursuant to this
             Clause, have a valid and enforceable claim against the relevant
             Obligor.

      29.5.2 A Recovering Finance Party is not obliged to share with any other
             Bank any amount which the Recovering Finance Party has received or
             recovered as a result of taking legal or arbitration proceedings,
             if:

             (a)  it notified that other Finance Party of the legal or
                  arbitration proceedings; and

             (b)  that other Finance Party had an opportunity to participate in
                  those legal or arbitration proceedings but did not do so as
                  soon as reasonably practicable having received notice and did
                  not take separate legal or arbitration proceedings.

30.   PAYMENT MECHANICS

30.1  PAYMENTS TO THE AGENT OR SECURITY TRUSTEE

      30.1.1 On each date on which an Obligor or a Bank is required to make a
             payment under a Finance Document, that Obligor or Bank shall make
             the same available to the Agent or Security Trustee (unless a
             contrary indication appears in a Finance Document) for value on the
             due date at the time and in such funds specified by the Agent or
             Security Trustee as being customary at the time for settlement of
             transactions in the relevant currency in the place of payment.

      30.1.2 Payment shall be made to such account in the principal financial
             centre of the country of that currency (or, in relation to euro, in
             a principal financial centre in a Participating Member State or
             London) with such bank as the Agent or Security Trustee specifies.

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30.2  DISTRIBUTIONS BY THE AGENT

      Each payment received by the Agent under the Finance Documents for another
      Party shall, subject to Clause 30.3 (Distributions to an Obligor) and
      Clause 30.4 (Clawback), be made available by the Agent as soon as
      practicable after receipt to the Party entitled to receive payment in
      accordance with this Agreement (in the case of a Bank, for the account of
      its Facility Office), to such account as that Party may notify to the
      Agent by not less than five Business Days' notice with a bank in the
      principal financial centre of the country of that currency (or, in
      relation to euro, in the principal financial centre of a Participating
      Member State or London).

30.3  DISTRIBUTIONS TO AN OBLIGOR

      The Agent or Security Trustee may (with the consent of the Obligor or in
      accordance with Clause 31 (Set-off)) apply any amount received by it for
      that Obligor in or towards payment (on the date and in the currency and
      funds of receipt) of any amount due from that Obligor under the Finance
      Documents or in or towards purchase of any amount of any currency to be so
      applied.

30.4  CLAWBACK

      30.4.1 Where a sum is to be paid to the Agent or Security Trustee under
             the Finance Documents for another Party, the Agent or Security
             Trustee is not obliged to pay that sum to that other Party (or to
             enter into or perform any related exchange contract) until it has
             been able to establish to its satisfaction that it has actually
             received that sum.

      30.4.2 If the Agent or Security Trustee pays an amount to another Party
             and it proves to be the case that the Agent or Security Trustee had
             not actually received that amount, then the Party to whom that
             amount (or the proceeds of any related exchange contract) was paid
             by the Agent or Security Trustee shall on demand refund the same to
             the Agent or Security Trustee together with interest on that amount
             from the date of payment to the date of receipt by the Agent or
             Security Trustee, calculated by the Agent or Security Trustee to
             reflect its cost of funds.

30.5  PARTIAL PAYMENTS

      30.5.1 If the Agent receives a payment that is insufficient to discharge
             all the amounts then due and payable by an Obligor under the
             Finance Documents, the Agent shall apply that payment towards the
             obligations of that Obligor under the Finance Documents in the
             following order:

             (a)  FIRST, in or towards payment pro rata of any unpaid fees,
                  costs and expenses of the Agent and the Issuing Banks under
                  the Finance Documents;

             (b)  SECONDLY, in or towards payment pro rata of any accrued
                  interest, fee or commission due but unpaid under this
                  Agreement;

             (c)  THIRDLY, in or towards payment pro rata of any principal or
                  indemnity payment in respect of a Bond due but unpaid under
                  this Agreement; and

             (d)  FOURTHLY, in or towards payment pro rata of any other sum due
                  but unpaid under the Finance Documents.

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      30.5.2 The Agent shall, if so directed by the Majority Banks, vary the
             order set out in sub-clause 30.5.1(b) to 30.5.1(d).

      30.5.3 Sub-clause 30.5.1 and 30.5.2 of this Clause 30.5 will override any
             appropriation made by an Obligor.

30.6  NO SET-OFF BY OBLIGORS

      All payments to be made by an Obligor under the Finance Documents shall be
      calculated and be made without (and free and clear of any deduction for)
      set-off or counterclaim.

30.7  BUSINESS DAYS

      30.7.1 Any payment which is due to be made on a day that is not a Business
             Day shall be made on the next Business Day in the same calendar
             month (if there is one) or the preceding Business Day (if there is
             not).

      30.7.2  During any extension of the due date for payment of any principal
              or Unpaid Sum under this Agreement interest is payable on the
              principal or Unpaid Sum at the rate payable on the original due
              date.

30.8  CURRENCY OF ACCOUNT

      30.8.1 Subject to sub-clauses 30.8.2 to 30.8.5 of this Clause 30.8, the
             Base Currency is the currency of account and payment for any sum
             due from an Obligor under any Finance Document.

      30.8.2 Unless expressly indicated to the contrary, a repayment of a Bond
             or Unpaid Sum or a part of a Bond or Unpaid Sum shall be made in
             the currency in which that Bond or Unpaid Sum is denominated on its
             due date.

      30.8.3 Each payment of interest shall be made in the currency in which the
             sum in respect of which the interest is payable was denominated
             when that interest accrued.

      30.8.4 Each payment in respect of costs, expenses or Taxes shall be made
             in the currency in which the costs, expenses or Taxes are incurred.

      30.8.5 Any amount expressed to be payable in a currency other than the
             Base Currency shall be paid in that other currency.

30.9  CHANGE OF CURRENCY

      30.9.1 Unless otherwise prohibited by law, if more than one currency or
             currency unit are at the same time recognised by the central bank
             of any country as the lawful currency of that country, then:

             (a)  any reference in the Finance Documents to, and any obligations
                  arising under the Finance Documents in, the currency of that
                  country shall be translated into, or paid in, the currency or
                  currency unit of that country designated by the Agent (after
                  consultation with the Company); and

             (b)  any translation from one currency or currency unit to another
                  shall be at the official rate of exchange recognised by the
                  central bank for the

                                      -58-
<PAGE>
                  conversion of that currency or currency unit into the other,
                  rounded up or down by the Agent (acting reasonably).

      30.9.2 If a change in any currency of a country occurs, this Agreement
             will, to the extent the Agent (acting reasonably and after
             consultation with the Company) specifies to be necessary, be
             amended to comply with any generally accepted conventions and
             market practice in the Relevant Interbank Market and otherwise to
             reflect the change in currency.

31.   SET-OFF

      A Finance Party may set off any matured obligation due from an Obligor
      under the Finance Documents (to the extent beneficially owned by that
      Finance Party) against any matured obligation owed by that Finance Party
      to that Obligor, regardless of the place of payment, booking branch or
      currency of either obligation. If the obligations are in different
      currencies, the Finance Party may convert either obligation at a market
      rate of exchange in its usual course of business for the purpose of the
      set-off.

32.   NOTICES

32.1  COMMUNICATIONS IN WRITING

      Any communication to be made under or in connection with the Finance
      Documents shall be made in writing and, unless otherwise stated, may be
      made by fax or letter.

32.2  ADDRESSES

      The address and fax number (and the department or officer, if any, for
      whose attention the communication is to be made) of each Party for any
      communication or document to be made or delivered under or in connection
      with the Finance Documents is:

      32.2.1 in the case of the Company or the Applicant, that identified with
             its name below;

      32.2.2 in the case of each Bank or any other Original Obligor, that
             notified in writing to the Agent on or prior to the date on which
             it becomes a Party; and

      32.2.3 in the case of the Agent and the Security Trustee, that identified
             with its name below,

      or any substitute address or fax number or department or officer as the
      Party may notify to the Agent (or the Agent may notify to the other
      Parties, if a change is made by the Agent) by not less than five Business
      Days' notice.

32.3  DELIVERY

      32.3.1 Any communication or document made or delivered by one person to
             another under or in connection with the Finance Documents will only
             be effective:

             (a)  if by way of fax, when received in legible form; or

             (b)  if by way of letter, when it has been left at the relevant
                  address or five Business Days after being deposited in the
                  post postage prepaid in an envelope addressed to it at that
                  address,

                                      -59-
<PAGE>
             and, if a particular department or officer is specified as part of
             its address details provided under Clause 32.2 (Addresses), if
             addressed to that department or officer.

      32.3.2 Any communication or document to be made or delivered to the Agent
             will be effective only when actually received by the Agent or
             Security Trustee and then only if it is expressly marked for the
             attention of the department or officer identified with the Agent's
             or Security Trustee's signature below (or any substitute department
             or officer as the Agent or Security Trustee shall specify for this
             purpose).

      32.3.3 All notices from or to an Obligor shall be sent through the Agent
             or Security Trustee.

      32.3.4 Any communication or document made or delivered to the Company in
             accordance with this Clause will be deemed to have been made or
             delivered to each of the Obligors.

32.4  NOTIFICATION OF ADDRESS OR FAX NUMBER

      Promptly upon receipt of notification of an address or fax number or
      change of address or fax number telex number pursuant to Clause 32.2
      (Addresses) or changing its own address or fax number, the Agent shall
      notify the other Parties.

32.5  ELECTRONIC COMMUNICATION

      32.5.1 Any communication to be made between the Agent and a Bank under or
             in connection with the Finance Documents may be made by electronic
             mail or other electronic means, if the Agent and the relevant Bank:

             (a)  agree that, unless and until notified to the contrary, this is
                  to be an accepted form of communication;

             (b)  notify each other in writing of their electronic mail address
                  and/or any other information required to enable the sending
                  and receipt of information by that means; and

             (c)  notify each other of any change to their address or any other
                  such information supplied by them.

      32.5.2 Any electronic communication made between the Agent and a Bank will
             be effective only when actually received in readable form and in
             the case of any electronic communication made by a Bank to the
             Agent only if it is addressed in such a manner as the Agent shall
             specify for this purpose.

32.6  ENGLISH LANGUAGE

      32.6.1 Any notice given under or in connection with any Finance Document
             must be in English.

      32.6.2 All other documents provided under or in connection with any
             Finance Document must be:

             (a)  in English; or

                                      -60-
<PAGE>

             (b)  if not in English, and if so required by the Agent,
                  accompanied by a certified English translation and, in this
                  case, the English translation will prevail unless the document
                  is a constitutional, statutory or other official document.

33.   CALCULATIONS AND CERTIFICATES

33.1  ACCOUNTS

      In any litigation or arbitration proceedings arising out of or in
      connection with a Finance Document, the entries made in the accounts
      maintained by a Finance Party are prima facie evidence of the matters to
      which they relate.

33.2  CERTIFICATES AND DETERMINATIONS

      Any certification or determination by a Finance Party of a rate or amount
      under any Finance Document is, in the absence of manifest error,
      conclusive evidence of the matters to which it relates.

33.3  DAY COUNT CONVENTION

      Any interest, commission or fee accruing under a Finance Document will
      accrue from day to day and is calculated on the basis of the actual number
      of days elapsed and a year of 365 days or, in any case where the practice
      in the Relevant Interbank Market differs, in accordance with that market
      practice.

34.   PARTIAL INVALIDITY

      If, at any time, any provision of the Finance Documents is or becomes
      illegal, invalid or unenforceable in any respect under any law of any
      jurisdiction, neither the legality, validity or enforceability of the
      remaining provisions nor the legality, validity or enforceability of such
      provision under the law of any other jurisdiction will in any way be
      affected or impaired.

35.   REMEDIES AND WAIVERS

      No failure to exercise, nor any delay in exercising, on the part of any
      Finance Party, any right or remedy under the Finance Documents shall
      operate as a waiver, nor shall any single or partial exercise of any right
      or remedy prevent any further or other exercise or the exercise of any
      other right or remedy. The rights and remedies provided in this Agreement
      are cumulative and not exclusive of any rights or remedies provided by
      law.

36.   AMENDMENTS AND WAIVERS

36.1  REQUIRED CONSENTS

      36.1.1 Subject to Clause 36.2 (Exceptions) any term of the Finance
             Documents may be amended or waived only with the consent of the
             Majority Banks and the Company and any such amendment or waiver
             will be binding on all Parties.

      36.1.2 The Agent may effect, on behalf of any Finance Party, any amendment
             or waiver permitted by this Clause.

                                      -61-
<PAGE>
36.2  EXCEPTIONS

      36.2.1 An amendment or waiver that has the effect of changing or which
             relates to:

             (a)  the definition of "Majority Banks" in Clause 1.1
                  (Definitions);

             (b)  an extension to the date of payment of any amount under the
                  Finance Documents;

             (c)  a reduction in the amount of any payment of principal,
                  interest, fees or commission payable;

             (d)  an increase in or an extension of any Commitment;

             (e)  a change to the Obligors other than in accordance with Clause
                  26 (Changes to the Obligors);

             (f)  any provision which expressly requires the consent of all the
                  Banks;

             (g)  Clause 2.2 (Finance Parties' rights and obligations), Clause
                  22 (Security undertakings), Clause 25 (Changes to the Banks)
                  or this Clause 36,

             shall not be made without the prior consent of all the Banks.

      36.2.2 An amendment or waiver which relates to the rights or obligations
             of the Agent, the Security Trustee or an Issuing Bank may not be
             effected without the consent of the Agent, the Security Trustee or
             that Issuing Bank.

37.   COUNTERPARTS

      Each Finance Document may be executed in any number of counterparts, and
      this has the same effect as if the signatures on the counterparts were on
      a single copy of the Finance Document.

38.   GOVERNING LAW

      This Agreement is governed by English law.

39.   ENFORCEMENT

39.1  JURISDICTION

      39.1.1 The courts of England have exclusive jurisdiction to settle any
             dispute arising out of or in connection with this Agreement
             (including a dispute regarding the existence, validity or
             termination of this Agreement) (a "DISPUTE").

      39.1.2 The Parties agree that the courts of England are the most
             appropriate and convenient courts to settle Disputes and
             accordingly no Party will argue to the contrary.

      39.1.3 This Clause 39.1 is for the benefit of the Finance Parties only. As
             a result, no Finance Party shall be prevented from taking
             proceedings relating to a Dispute in any other courts with
             jurisdiction. To the extent allowed by law, the Finance Parties may
             take concurrent proceedings in any number of jurisdictions.

                                      -62-
<PAGE>
39.2  SERVICE OF PROCESS

      Without prejudice to any other mode of service allowed under any relevant
      law, each Obligor (other than an Obligor incorporated in England and
      Wales):

      39.2.1 irrevocably appoints the Company as its agent for service of
             process in relation to any proceedings before the English courts in
             connection with any Finance Document; and

      39.2.2 agrees that failure by a process agent to notify the relevant
             Obligor of the process will not invalidate the proceedings
             concerned.

This Agreement has been entered into on the date stated at the beginning of this
Agreement.

                                      -63-
<PAGE>
                                   SCHEDULE 1

                              THE ORIGINAL PARTIES

                                     PART A

                           THE ORIGINAL ISSUING BANKS

HSBC Bank plc
JP Morgan Chase Bank

                                      -64-
<PAGE>
                                     PART B

                               THE ORIGINAL BANKS

<TABLE>
<CAPTION>
Name of Original Bank                                          Commitment
                                                               [L]
<S>                                                            <C>
HSBC Bank plc                                                  25,000,000
JP Morgan Chase Bank                                           25,000,000
</TABLE>

                                      -65-
<PAGE>
                                     PART C

                       THE ORIGINAL INDEMNIFYING COMPANIES
<TABLE>
<CAPTION>

NAME OF ORIGINAL INDEMNIFYING COMPANIES                                     COMPANY NO.

<S>                                                                         <C>
Marconi Corporation plc (in respect of the Scheme Expenses Bond only)       00067307
Albany Partnership Limited                                                  03049168
GPT Special Project Management Limited                                      02984211
Marconi Communications China Limited                                        02956293
Marconi Communications GmbH                                                 HRB1563
Marconi Communications International Limited                                00464439
Marconi Communications Ltd                                                  00703317
Marconi Communications SpA                                                  01168770996
Marconi International SpA                                                   01201400999
Metapath Software International Limited                                     02436108
Marconi Mobile Access SpA                                                   02008610301
Marconi Sud SpA                                                             04159131004
</TABLE>

                                      -66-
<PAGE>
                                   SCHEDULE 2

                              CONDITIONS PRECEDENT

                                     PART A

                   CONDITIONS PRECEDENT TO INITIAL UTILISATION

1.    ORIGINAL OBLIGORS

(a)   A copy of the constitutional documents of each Original Obligor.

(b)   A copy of a resolution of the board of directors of each Original Obligor:

      (i)   approving the terms of, and the transactions contemplated by, the
            Finance Documents to which it is a party and resolving that it
            execute the Finance Documents to which it is a party;

      (ii)  authorising a specified person or persons to execute the Finance
            Documents to which it is a party on its behalf; and

      (iii) authorising a specified person or persons, on its behalf, to sign
            and/or despatch all documents and notices (including, if relevant,
            any Utilisation Request) to be signed and/or despatched by it under
            or in connection with the Finance Documents to which it is a party.

(c)   A specimen of the signature of each person authorised by the resolution
      referred to in paragraph (b) above.

(d)   A certificate of the Company (signed by a director) confirming that
      guaranteeing the Total Commitments would not cause any borrowing,
      guaranteeing or similar limit binding on the Company to be exceeded.

(e)   A certificate of an authorised signatory of the relevant Original Obligor
      certifying that each copy document relating to it specified in this Part A
      of Schedule 2 is correct, complete and in full force and effect as at a
      date no earlier than the date of this Agreement.

2.    LEGAL OPINIONS

(a)   A legal opinion of Clifford Chance LLP, legal advisers to the Agent in
      England, substantially in the form distributed to the Original Banks prior
      to signing this Agreement.

(b)   If an Original Obligor is incorporated in a jurisdiction other than
      England and Wales, a legal opinion of the legal advisers to the Agent in
      the relevant jurisdiction, substantially in the form distributed to the
      Original Banks prior to signing this Agreement.

3.    OTHER DOCUMENTS AND EVIDENCE

(a)   Evidence that any process agent referred to in Clause 39.2 (Service of
      process), if not an Original Obligor, has accepted its appointment.

                                      -67-
<PAGE>
(b)   A copy of any other Authorisation or other document, opinion or assurance
      which the Agent considers to be necessary or desirable (if it has notified
      the Company accordingly) in connection with the entry into and performance
      of the transactions contemplated by any Finance Document or for the
      validity and enforceability of any Finance Document.

(c)   Evidence that the fees, costs and expenses then due from the Company
      pursuant to Clause 13 (Fees) and Clause 18 (Costs and expenses) have been
      paid or will be paid by the first Utilisation Date.

(d)   Evidence that the Effective Date has occurred.

(e)   Executed original copies of all Finance Documents and of all documents to
      be delivered thereunder.

(f)   A copy, certified by an authorised signatory of the Applicant as being
      correct, complete and in full force and effect of each of the Notes
      Indentures.

                                      -68-
<PAGE>
                                     PART B

                       CONDITIONS PRECEDENT REQUIRED TO BE
                       DELIVERED BY AN ADDITIONAL OBLIGOR

1.    An Accession Letter, duly executed by the Additional Obligor and the
      Company.

2.    A copy of the constitutional documents of the Additional Obligor.

3.    A copy of a resolution of the board of directors of the Additional
      Obligor:

      (a)   approving the terms of, and the transactions contemplated by, the
            Accession Letter and the Finance Documents and resolving that it
            execute the Accession Letter;

      (b)   authorising a specified person or persons to execute the Accession
            Letter on its behalf; and

      (c)   authorising a specified person or persons, on its behalf, to sign
            and/or despatch all other documents and notices (including, in
            relation to an Additional Borrower, any Utilisation Request) to be
            signed and/or despatched by it under or in connection with the
            Finance Documents.

4.    A specimen of the signature of each person authorised by the
      resolution referred to in paragraph 3 above.

5.    A certificate of an authorised signatory of the Additional Obligor
      certifying that each copy document listed in this Part B of Schedule 2 is
      correct, complete and in full force and effect as at a date no earlier
      than the date of the Accession Letter.

6.    A copy of any other Authorisation or other document, opinion or assurance
      which the Agent considers to be necessary or desirable in connection with
      the entry into and performance of the transactions contemplated by the
      Accession Letter or for the validity and enforceability of any Finance
      Document.

7.    A legal opinion of Clifford Chance LLP, legal advisers to the Agent
      in England.

8.    If the Additional Obligor is incorporated in a jurisdiction other than
      England and Wales, a legal opinion of the legal advisers to the Agent in
      the jurisdiction in which the Additional Obligor is incorporated.

9.    If the proposed Additional Obligor is incorporated in a jurisdiction other
      than England and Wales, evidence that the process agent specified in
      Clause 39.2 (Service of process), if not an Obligor, has accepted its
      appointment in relation to the proposed Additional Obligor.

                                     - 69 -
<PAGE>
                                   SCHEDULE 3

                               UTILISATION REQUEST

From: [Applicant]

To:   [Agent]

Dated:

Dear Sirs

                       [COMPANY] - [ ] FACILITY AGREEMENT
                           DATED [ ] (THE "AGREEMENT")

1.    We refer to the Agreement.  This is a Utilisation Request.  Terms
      defined in the Agreement have the same meaning in this Utilisation
      Request unless given a different meaning in this Utilisation Request.

2.    We wish to arrange for a Bond to be issued by [-] as Issuing Bank on the
      following terms:

<TABLE>
<S>                                     <C>
     Proposed Utilisation Date:         [         ] (or, if that is not a
                                        Business Day, the next Business Day)
     Currency of Bond:                  [        ]
     Amount:                            [         ] or, if less, the Available
                                        Facility
     Term:                              [             ]
     Type of Bond:                      [             ]
     Beneficiary of Bond:               [             ]
     [Correspondent Bank:](1)
</TABLE>

3.    The Bond is for a purpose specified in Clause 3.1 (Purpose) of the
      Agreement and the relevant Indemnifying Company is [o].

4.    We confirm that each condition specified in Clause 4.2 (Further conditions
      precedent) is satisfied on the date of this Utilisation Request.

5.    We attach a copy of the proposed Bond.

6.    [We request that L[ ] of the Initial Cash Security provided for us in
      respect of Discharged Bonds, which has not already been treated as Initial
      Cash Security in respect of any other Bond, be counted towards the Initial
      Cash Security to be provided by us in respect of the Bond requested
      pursuant to the Utilisation Request.]

7.    [We confirm that the form of/Beneficiary of/Optional Currency of/(if
      relevant) the tenor of the proposed Bond has been previously approved
      by the relevant Issuing Bank](2)

-------------
(1) Insert where relevant

(2) Only if relevant matter has been pre-approved.

                                     - 70 -
<PAGE>
8.    The Bond is to be delivered to [-].

9.    This Utilisation Request is irrevocable.

                                Yours faithfully

                     ---------------------------------------
                            authorised signatory for
                                   [Applicant]

                                     - 71 -
<PAGE>
SCHEDULE 4

                             MANDATORY COST FORMULAE

1.    The Mandatory Cost is an addition to the interest rate to compensate Banks
      for the cost of compliance with (a) the requirements of the Bank of
      England and/or the Financial Services Authority (or, in either case, any
      other authority which replaces all or any of its functions) or (b) the
      requirements of the European Central Bank.

2.    On the first day of each Interest Period (or as soon as possible
      thereafter) the Agent shall calculate, as a percentage rate, a rate
      (the "ADDITIONAL COST RATE") for each Bank, in accordance with the
      paragraphs set out below.  The Mandatory Cost will be calculated by
      the Agent as a weighted average of the Banks' Additional Cost Rates
      (weighted in proportion to the percentage participation of each Bank
      in the relevant Loan) and will be expressed as a percentage rate per
      annum.

3.    The Additional Cost Rate for any Bank lending from a Facility Office
      in a Participating Member State will be the percentage notified by
      that Bank to the Agent.  This percentage will be certified by that
      Bank in its notice to the Agent to be its reasonable determination of
      the cost (expressed as a percentage of that Bank's participation in
      all Loans made from that Facility Office) of complying with the
      minimum reserve requirements of the European Central Bank in respect
      of loans made from that Facility Office.

4.    The Additional Cost Rate for any Bank lending from a Facility Office in
      the United Kingdom will be calculated by the Agent as follows:

      (a)   in relation to a sterling Loan:

<TABLE>
<S>                                         <C>
                  AB + C(B - D) + E x 0.01
                  ------------------------  per cent. per annum
                       100 - (A + C )
</TABLE>

      (b)   in relation to a Loan in any currency other than sterling:

<TABLE>
<S>                                         <C>
                              E x 0.01
                         -----------------  per cent. per annum
                                300
</TABLE>

      Where:

      A     is the percentage of Eligible Liabilities (assuming these to be in
            excess of any stated minimum) which that Bank is from time to time
            required to maintain as an interest free cash ratio deposit with the
            Bank of England to comply with cash ratio requirements.

      B     is the percentage rate of interest (excluding the Margin and the
            Mandatory Cost and, if the Loan is an Unpaid Sum, the additional
            rate of interest specified in sub-clause 10.1.1 of Clause 10.1
            (Default Interest)) payable for the relevant Interest Period on the
            Loan.

      C     is the percentage (if any) of Eligible Liabilities which that Bank
            is required from time to time to maintain as interest bearing
            Special Deposits with the Bank of England.

                                     - 72 -
<PAGE>
      D     is the percentage rate per annum payable by the Bank of England to
            the Agent on interest bearing Special Deposits.

      E     is designed to compensate Banks for amounts payable under the Fees
            Rules and is calculated by the Agent as being the average of the
            most recent rates of charge supplied by the Reference Banks to the
            Agent pursuant to paragraph 7 below and expressed in pounds per
            L1,000,000.

5.    For the purposes of this Schedule:

      (a)   "ELIGIBLE LIABILITIES" and "SPECIAL DEPOSITS" have the meanings
            given to them from time to time under or pursuant to the Bank of
            England Act 1998 or (as may be appropriate) by the Bank of England;

      (b)   "FEES RULES" means the rules on periodic fees contained in the FSA
            Supervision Manual or such other law or regulation as may be in
            force from time to time in respect of the payment of fees for the
            acceptance of deposits;

      (c)   "FEE TARIFFS" means the fee tariffs specified in the Fees Rules
            under the activity group A.1 Deposit acceptors (ignoring any minimum
            fee or zero rated fee required pursuant to the Fees Rules but taking
            into account any applicable discount rate); and

      (d)   "TARIFF BASE" has the meaning given to it in, and will be calculated
            in accordance with, the Fees Rules.

6.    In application of the above formulae, A, B, C and D will be included
      in the formulae as percentages (i.e. 5 per cent. will be included in
      the formula as 5 and not as 0.05).  A negative result obtained by
      subtracting D from B shall be taken as zero.  The resulting figures
      shall be rounded to four decimal places.

7.    If requested by the Agent, each Reference Bank shall, as soon as
      practicable after publication by the Financial Services Authority,
      supply to the Agent, the rate of charge payable by that Reference
      Bank to the Financial Services Authority pursuant to the Fees Rules
      in respect of the relevant financial year of the Financial Services
      Authority (calculated for this purpose by that Reference Bank as
      being the average of the Fee Tariffs applicable to that Reference
      Bank for that financial year) and expressed in pounds per L1,000,000
      of the Tariff Base of that Reference Bank.

8.    Each Bank shall supply any information required by the Agent for the
      purpose of calculating its Additional Cost Rate. In particular, but
      without limitation, each Bank shall supply the following information on or
      prior to the date on which it becomes a Bank:

      (a)   the jurisdiction of its Facility Office; and

      (b)   any other information that the Agent may reasonably require for such
            purpose.

      Each Bank shall promptly notify the Agent of any change to the information
      provided by it pursuant to this paragraph.

                                     - 73 -
<PAGE>
9.    The percentages of each Bank for the purpose of A and C above and
      the rates of charge of each Reference Bank for the purpose of E above
      shall be determined by the Agent based upon the information supplied
      to it pursuant to paragraphs 7 and 8 above and on the assumption
      that, unless a Bank notifies the Agent to the contrary, each Bank's
      obligations in relation to cash ratio deposits and Special Deposits
      are the same as those of a typical bank from its jurisdiction of
      incorporation with a Facility Office in the same jurisdiction as its
      Facility Office.

10.   The Agent shall have no liability to any person if such determination
      results in an Additional Cost Rate which over or under compensates any
      Bank and shall be entitled to assume that the information provided by any
      Bank or Reference Bank pursuant to paragraphs 3, 7 and 8 above is true and
      correct in all respects.

11.   The Agent shall distribute the additional amounts received as a result of
      the Mandatory Cost to the Banks on the basis of the Additional Cost Rate
      for each Bank based on the information provided by each Bank and each
      Reference Bank pursuant to paragraphs 3, 7 and 8 above.

12.   Any determination by the Agent pursuant to this Schedule in relation to a
      formula, the Mandatory Cost, an Additional Cost Rate or any amount payable
      to a Bank shall, in the absence of manifest error, be conclusive and
      binding on all Parties.

13.   The Agent may from time to time, after consultation with the Parent
      and the Banks, determine and notify to all Parties any amendments
      which are required to be made to this Schedule in order to comply
      with  any change in law, regulation or any requirements from time to
      time imposed by the Bank of England, the Financial Services Authority
      or the European Central Bank (or, in any case, any other authority
      which replaces all or any of its functions) and any such
      determination shall, in the absence of manifest error, be conclusive
      and binding on all Parties.

                                     - 74 -
<PAGE>
                                   SCHEDULE 5

                          FORM OF TRANSFER CERTIFICATES

To:   [           ] as Agent

From: [The Existing Bank] (the "EXISTING BANK") and [The New Bank] (the
      "NEW BANK")

Dated:

                       [COMPANY] - [ ] FACILITY AGREEMENT
                           DATED [ ] (THE "AGREEMENT")

1.    We refer to the Agreement.  This is a Transfer Certificate.  Terms
      defined in the Agreement have the same meaning in this Transfer
      Certificate unless given a different meaning in this Transfer
      Certificate.

2.    We refer to Clause 25.5 (Procedure for transfer):

      (a)   The Existing Bank and the New Bank agree to the Existing Bank
            transferring to the New Bank by novation all or part of the Existing
            Bank's Commitment, rights and obligations referred to in the
            Schedule in accordance with Clause 25.5 (Procedure for transfer).

      (b)   The proposed Transfer Date is [           ].

      (c)   The Facility Office and address, fax number and attention details
            for notices of the New Bank for the purposes of Clause 32.2
            (Addresses) are set out in the Schedule.

3.    The New Bank expressly acknowledges the limitations on the Existing Bank's
      obligations set out in sub-clause 25.4.3 of Clause 25.4 (Limitation of
      responsibility of Existing Banks).

4.    This Transfer Certificate may be executed in any number of counterparts
      and this has the same effect as if the signatures on the counterparts were
      on a single copy of this Transfer Certificate.

5.    This Transfer Certificate is governed by English law.

                                     - 75 -
<PAGE>
                                  THE SCHEDULE

               COMMITMENT/RIGHTS AND OBLIGATIONS TO BE TRANSFERRED

                            [insert relevant details]
   [Facility Office address, fax number and attention details for notices and
                         account details for payments,]

      [Existing Bank]                   [New Bank]
      By:                               By:

      This Transfer Certificate is accepted by the Agent and the Transfer
      Date is confirmed as [           ].

      [Agent]

      By:

                                     - 76 -
<PAGE>
                                   SCHEDULE 6

                            FORM OF ACCESSION LETTER

To:   [                   ] as Agent

From: [Subsidiary] and [Company]

Dated:

Dear Sirs

                       [COMPANY] - [ ] FACILITY AGREEMENT
                           DATED [ ] (THE "AGREEMENT")

1.    We refer to the Agreement.  This is an Accession Letter.  Terms
      defined in the Agreement have the same meaning in this Accession
      Letter unless given a different meaning in this Accession Letter.

2.    [Subsidiary] agrees to become an Additional Indemnifying Company and to be
      bound by the terms of the Agreement as an Additional Indemnifying Company
      pursuant to Clause 26.2 (Additional Indemnifying Companies) of the
      Agreement. [Subsidiary] is a company duly incorporated under the laws of
      [name of relevant jurisdiction].

3.    [Subsidiary's] administrative details are as follows:

      Address:

      Fax No:

      Attention:

4.    This Accession Letter is governed by English law.

     [Company]                             [Subsidiary]

                                     - 77 -
<PAGE>
                                   SCHEDULE 7

                                   TIMETABLES

<TABLE>
<CAPTION>
                                                SPECIFIED TIME
                                                --------------
<S>                                             <C>
Agent notifies the Application if a                  D - 4
currency is approved as an Optional                11.00 am
Currency in accordance with Clause
4.3 (Conditions relating to Optional
Currencies)

Delivery of a duly completed                         D - 3
Utilisation Request (Clause 5.1)                   11.00 am
(Delivery of a Utilisation Request
for Bonds)

Agent notifies the Application if                    D - 1
the form, beneficiary or tenor of                  11.00 am
the Bond is not approved in
accordance with sub-clause 5.2.3 of
Clause 5.2 (Completion of a
Utilisation Request)

Agent determines (in relation to a                   D - 1
Utilisation) the Base Currency                       Noon
Amount of the Bond, if required
under Clause 5.4 (Issue of Bonds)
and notifies the Issuing Bank and
the Banks of the Bond in accordance
with Clause 5.4 (Issue of Bonds)
</TABLE>

D     =     Utilisation Date

D-x   =     Business Days prior to Utilisation Date

                                     - 78 -
<PAGE>
                                   SCHEDULE 8

                     FORM OF LMA CONFIDENTIALITY UNDERTAKING

                          [LETTERHEAD OF EXISTING BANK]

To:

                                                 [insert name of Potential
                                                 New Bank]

Re:   THE AGREEMENT

APPLICANT: Marconi Bonding Limited
DATE:  [  ] 2003
AMOUNT: L50,000,000
AGENT: HSBC Bank plc

Dear Sirs

We understand that you are considering acquiring an interest in the Agreement
(the "ACQUISITION"). In consideration of us agreeing to make available to you
certain information, by your signature of a copy of this letter you agree as
follows:

1.    CONFIDENTIALITY UNDERTAKING

      You undertake (a) to keep the Confidential Information confidential and
      not to disclose it to anyone except as provided for by paragraph 2 below
      and to ensure that the Confidential Information is protected with security
      measures and a degree of care that would apply to your own confidential
      information, (b) to use the Confidential Information only for the
      Permitted Purpose, (c) to use all reasonable endeavours to ensure that any
      person to whom you pass any Confidential Information (unless disclosed
      under paragraph 2(c) below) acknowledges and complies with the provisions
      of this letter as if that person were also a party to it, and (d) not to
      make enquiries of any member of the Group or any of their officers,
      directors, employees or professional advisers relating directly or
      indirectly to the Acquisition.

2.    PERMITTED DISCLOSURE

      We agree that you may disclose Confidential Information:

      (a)   to members of the Purchaser Group and their officers, directors,
            employees and professional advisers to the extent necessary for the
            Permitted Purpose and to any auditors of members of the Purchaser
            Group;

                                     - 79 -
<PAGE>
      (b)   subject to the requirements of the Agreement, to any person to (or
            through) whom you assign or transfer (or may potentially assign or
            transfer) all or any of the rights, benefits and obligations which
            you may acquire under the Agreement or with (or through) whom you
            enter into (or may potentially enter into) any sub-participation in
            relation to, or any other transaction under which payments are to be
            made by reference to, the Agreement or the Borrower or any member of
            the Group in each case so long as that person has delivered a letter
            to you in equivalent form to this letter; and

      (c)   (i) where requested or required by any court of competent
            jurisdiction or any competent judicial, governmental, supervisory or
            regulatory body, (ii) where required by the rules of any stock
            exchange on which the shares or other securities of any member of
            the Purchaser Group are listed or (iii) where required by the laws
            or regulations of any country with jurisdiction over the affairs of
            any member of the Purchaser Group.

3.    NOTIFICATION OF REQUIRED OR UNAUTHORISED DISCLOSURE

      You agree (to the extent permitted by law) to inform us of the full
      circumstances of any disclosure under paragraph 2(c) or upon becoming
      aware that Confidential Information has been disclosed in breach of this
      letter.

4.    RETURN OF COPIES

      If we so request in writing, you shall return all Confidential Information
      supplied to you by us and destroy or permanently erase all copies of
      Confidential Information made by you and use all reasonable endeavours to
      ensure that anyone to whom you have supplied any Confidential Information
      destroys or permanently erases such Confidential Information and any
      copies made by them, in each case save to the extent that you or the
      recipients are required to retain any such Confidential Information by any
      applicable law, rule or regulation or by any competent judicial,
      governmental, supervisory or regulatory body or in accordance with
      internal policy, or where the Confidential Information has been disclosed
      under paragraph 2(c) above.

5.    CONTINUING OBLIGATIONS

      The obligations in this letter are continuing and, in particular, shall
      survive the termination of any discussions or negotiations between you and
      us. Notwithstanding the previous sentence, the obligations in this letter
      shall cease (a) if you become a party to or otherwise acquire (by
      assignment or sub-participation) an interest, direct or indirect, in the
      Agreement or (b) twelve months after you have returned all Confidential
      Information supplied to you by us and destroyed or permanently erased all
      copies of Confidential Information made by you (other than any such
      Confidential Information or copies which have been disclosed under
      paragraph 2 above (other than sub-paragraph 2(a)) or which, pursuant to
      paragraph 4 above, are not required to be returned or destroyed).

6.    NO REPRESENTATION; CONSEQUENCES OF BREACH, ETC

      You acknowledge and agree that:

                                     - 80 -
<PAGE>
      (a)   neither we, nor any member of the Group nor any of our or their
            respective officers, employees or advisers (each a "RELEVANT
            PERSON") (i) make any representation or warranty, express or
            implied, as to, or assume any responsibility for, the accuracy,
            reliability or completeness of any of the Confidential Information
            or any other information supplied by us or the assumptions on which
            it is based or (ii) shall be under any obligation to update or
            correct any inaccuracy in the Confidential Information or any other
            information supplied by us or be otherwise liable to you or any
            other person in respect to the Confidential Information or any such
            information; and

      (b)   we or members of the Group may be irreparably harmed by the breach
            of the terms hereof and damages may not be an adequate remedy; each
            Relevant Person may be granted an injunction or specific performance
            for any threatened or actual breach of the provisions of this letter
            by you.

7.    NO WAIVER; AMENDMENTS, ETC

      This letter sets out the full extent of your obligations of
      confidentiality owed to us in relation to the information the subject of
      this letter. No failure or delay in exercising any right, power or
      privilege hereunder will operate as a waiver thereof nor will any single
      or partial exercise of any right, power or privilege preclude any further
      exercise thereof or the exercise of any other right, power or privileges
      hereunder. The terms of this letter and your obligations hereunder may
      only be amended or modified by written agreement between us.

8.    INSIDE INFORMATION

      You acknowledge that some or all of the Confidential Information is or may
      be price-sensitive information and that the use of such information may be
      regulated or prohibited by applicable legislation relating to insider
      dealing and you undertake not to use any Confidential Information for any
      unlawful purpose.

9.    NATURE OF UNDERTAKINGS

      The undertakings given by you under this letter are given to us and
      (without implying any fiduciary obligations on our part) are also given
      for the benefit of the Borrower and each other member of the Group.

10.   THIRD PARTY RIGHTS

      (a)   Subject to this paragraph 10 and to paragraphs 6 and 9, a person who
            is not a party to this letter has no right under the Contracts
            (Rights of Third Parties) Act 1999 (the "THIRD PARTIES ACT") to
            enforce or to enjoy the benefit of any term of this letter.

      (b)   The Relevant Persons may enjoy the benefit of the terms of
            paragraphs 6 and 9 subject to and in accordance with this paragraph
            10 and the provisions of the Third Parties Act.

                                     - 81 -
<PAGE>
      (c)   The parties to this letter do not require the consent of the
            Relevant Persons to rescind or vary this letter at any time.

11.   GOVERNING LAW AND JURISDICTION

      (a)   This letter (including the agreement constituted by your
            acknowledgement of its terms) is governed by English law.

      (b)   The parties submit to the non-exclusive jurisdiction of the English
            courts.

12.   DEFINITIONS

      In this letter (including the acknowledgement set out below) terms defined
      in the Agreement shall, unless the context otherwise requires, have the
      same meaning and:

      "CONFIDENTIAL INFORMATION" means any information relating to the Borrower,
      the Group, the Agreement and/or the Acquisition provided to you by us or
      any of our affiliates or advisers, in whatever form, and includes
      information given orally and any document, electronic file or any other
      way of representing or recording information which contains or is derived
      or copied from such information but excludes information that (a) is or
      becomes public knowledge other than as a direct or indirect result of any
      breach of this letter or (b) is known by you before the date the
      information is disclosed to you by us or any of our affiliates or advisers
      or is lawfully obtained by you thereafter, other than from a source which
      is connected with the Group and which, in either case, as far as you are
      aware, has not been obtained in violation of, and is not otherwise subject
      to, any obligation of confidentiality;

      "GROUP" means the Borrower and each of its holding companies and
      subsidiaries and each subsidiary of each of its holding companies (as each
      such term is defined in the Companies Act 1985);

      "PERMITTED PURPOSE" means considering and evaluating whether to enter
      into the Acquisition; and

      "PURCHASER GROUP" means you, each of your holding companies and
      subsidiaries and each subsidiary of each of your holding companies (as
      each such term is defined in the Companies Act 1985).

      Please acknowledge your agreement to the above by signing and returning
      the enclosed copy.

      Yours faithfully

      -----------------------------------

      For and on behalf of

      [Existing Bank]

      To:   [Existing Bank ]

                                     - 82 -
<PAGE>
            and the Applicant

      We acknowledge and agree to the above:

      -----------------------------------

      For and on behalf of

      [POTENTIAL NEW BANK]

                                     - 83 -
<PAGE>
                                   SCHEDULE 9

                              DRAFT INDENTURE TERMS

                                     - 84 -
<PAGE>
                                  SCHEDULE 10

                          FORM OF SCHEME EXPENSES BOND

                                     - 85 -
<PAGE>
                                   SIGNATURES

<TABLE>
<CAPTION>
THE APPLICANT

MARCONI BONDING LIMITED

<S>              <C>
By:              THOMAS CHARLES REILLY SHEPHERD

Address:         New Century Park
                 P.O. Box 53
                 Coventry  CV3 1HY

Fax:             020 7656 7000
</TABLE>

<TABLE>
<CAPTION>
THE COMPANY

MARCONI CORPORATION PLC
<S>              <C>
By:              MARY ANGELA SKELLY

Address:         44 Hartswood Road
                 London  W12 9NF
</TABLE>

<TABLE>
<CAPTION>
THE ORIGINAL ISSUING BANKS

HSBC BANK PLC
<S>              <C>
By:              IAN McMILLAN

Address:         8 Canada Square
                 London  E14 5HQ

Fax:             020 7991 4346
</TABLE>

<TABLE>
<CAPTION>
JP MORGAN CHASE BANK
<S>              <C>
By:              MIKE WHARRAD
Address:         125 London Wall
                 London  EC2Y 5AJ

Fax:             020 7777 3459
</TABLE>

                                     - 86 -
<PAGE>
<TABLE>
<CAPTION>
THE ORIGINAL BANKS

HSBC BANK PLC
<S>              <C>
By:              IAN McMILLAN

Address:         8 Canada Square
                 London  E14 5HQ

Fax:             020 7991 4346
</TABLE>

<TABLE>
<CAPTION>
JP MORGAN CHASE BANK
<S>              <C>
By:              MIKE WHARRAD

Address:         125 London Wall
                 London  EC2Y 5AJ

Fax:             020 7777 3459
</TABLE>

<TABLE>
<CAPTION>
THE AGENT

HSBC BANK PLC
<S>              <C>
By:              MARK HEPTINSTALL

Address:         8 Canada Square
                 London  E14 5HQ

Fax:             020 7991 4346
</TABLE>

<TABLE>
<CAPTION>
THE SECURITY TRUSTEE

HSBC BANK PLC
<S>              <C>
By:              MARK HEPTINSTALL

Address:         8 Canada Square
                 London  E14 5HQ

Fax:             020 7991 4346
</TABLE>

ORIGINAL INDEMNIFYING COMPANIES

                                     - 87 -
<PAGE>
<TABLE>
<CAPTION>
MARCONI CORPORATION PLC
<S>              <C>
By:              MARY ANGELA SKELLY

Address:         44 Hartswood Road
                 London  W12 9NF
</TABLE>

<TABLE>
<CAPTION>
ALBANY PARTNERSHIP LIMITED
<S>              <C>
By:              THOMAS CHARLES REILLY SHEPHERD

Address:         New Century Park
                 P.O. Box 53
                 Coventry  CV3 1HY

Fax:             020 7656 7000
</TABLE>

<TABLE>
<CAPTION>
GPT SPECIAL PROJECT MANAGEMENT LIMITED
<S>              <C>
By:              THOMAS CHARLES REILLY SHEPHERD

Address:         New Century Park
                 P.O. Box 53
                 Coventry  CV3 1HY

Fax:             020 7656 7000
</TABLE>

<TABLE>
<CAPTION>
MARCONI COMMUNICATIONS CHINA LIMITED
<S>              <C>
By:              THOMAS CHARLES REILLY SHEPHERD

Address:         New Century Park
                 P.O. Box 53
                 Coventry  CV3 1HY

Fax:             020 7656 7000
</TABLE>

                                     - 88 -
<PAGE>
<TABLE>
<CAPTION>
MARCONI COMMUNICATIONS GMBH
<S>              <C>
By:              MICHEAL GARTNER AND STEFFEN DICK

Address:         Geberstrasse 33
                 71522 Backnang,
                 Germany

Fax:             + 49 7191 13 2007
</TABLE>

<TABLE>
<CAPTION>
MARCONI COMMUNICATIONS INTERNATIONAL LIMITED
<S>              <C>
By:              THOMAS CHARLES REILLY SHEPHERD

Address:         New Century Park
                 P.O. Box 53
                 Coventry  CV3 1HY

Fax:             020 7656 7000
</TABLE>

<TABLE>
<CAPTION>
MARCONI COMMUNICATIONS LTD
<S>              <C>
By:              THOMAS CHARLES REILLY SHEPHERD

Address:         New Century Park
                 P.O. Box 53
                 Coventry  CV3 1HY

Fax:             020 7656 7000
</TABLE>

<TABLE>
<CAPTION>
MARCONI COMMUNICATIONS SPA
<S>              <C>
By:              MARY ANGELA SKELLY

Address:         44 Hartswood Road
                 London  W12 9NF
</TABLE>

<TABLE>
<CAPTION>
MARCONI INTERNATIONAL SPA
<S>              <C>
By:              MARY ANGELA SKELLY

Address:         44 Hartswood Road
                 London  W12 9NF
</TABLE>

                                     - 89 -
<PAGE>
<TABLE>
<CAPTION>
METAPATH SOFTWARE INTERNATIONAL LIMITED
<S>              <C>
By:              THOMAS CHARLES REILLY SHEPHERD

Address:         New Century Park
                 P.O. Box 53
                 Coventry  CV3 1HY

Fax:             020 7656 7000
</TABLE>

<TABLE>
<CAPTION>
MARCONI MOBILE ACCESS SPA
<S>              <C>
By:              MARY ANGELA SKELLY

Address:         44 Hartswood Road
                 London  W12 9NF
</TABLE>

<TABLE>
<CAPTION>
MARCONI SUD SPA
<S>              <C>
By:              MARY ANGELA SKELLY

Address:         44 Hartswood Road
                 London  W12 9NF
</TABLE>

                                     - 90 -

<PAGE>

                                                                  CONFORMED COPY

                                  HSBC BANK PLC

                               AS SECURITY TRUSTEE

                                       AND

                             MARCONI BONDING LIMITED

                                   AS COMPANY

                          SECURITY OVER CASH AGREEMENT
<PAGE>
                                                 CONTENTS

<TABLE>
<CAPTION>
CLAUSE                                                                        PAGE
<S>                                                                           <C>
1. Definitions And Interpretation............................................  1
2. Charge....................................................................  2
3. Accounts And Deposits.....................................................  2
4. Effectiveness Of Security.................................................  5
5. Company's Rights And Undertakings.........................................  6
6. Further Assurance.........................................................  7
7. Power Of Attorney.........................................................  7
8. Subsequent Interests......................................................  7
9. Miscellaneous Clauses.....................................................  7
</TABLE>
<PAGE>
                          SECURITY OVER CASH AGREEMENT

THIS AGREEMENT is made on 27 March 2003

BETWEEN

(1)      HSBC BANK PLC (the "SECURITY TRUSTEE") of Poultry, London EC2P 2BX and
         fax number 020 7260 4800; and

(2)      MARCONI BONDING LIMITED (the "APPLICANT") of New Coventry Park, PO Box
         53, Coventry, Warwickshire CV3 1HJ and fax number 0247 656 5333
         (registered number 3818628).

WHEREAS

(A)      Pursuant to the terms of the Bonding Facility Agreement (as defined
         below) and at the request of the Applicant, the Issuing Banks have
         agreed to grant the Applicant a revolving bonding facility.

(B)      The Applicant has agreed to indemnify the Issuing Banks in respect of
         any liability which the Issuing Banks incur under the Bonding Facility
         Agreement.

(C)      As security for its obligations under the Finance Documents, the
         Applicant has agreed to place cash deposits with the Security Trustee
         as trustee for and on behalf of the Issuing Banks and the Banks.

IT IS HEREBY AGREED that the cash deposits placed by the Applicant with the
Security Trustee shall be held pursuant and subject to the following terms and
conditions:

1.       DEFINITIONS AND INTERPRETATION

1.1      In this Agreement, terms defined in, and the principles of
         interpretation set out in, the Bonding Facility Agreement shall, unless
         otherwise provided herein, apply to this Agreement.

1.2      In this Agreement:

         "ACCOUNTS" means each account of the Applicant with the Security
         Trustee and designated as a "Cash Collateral Security Account" by the
         Security Trustee (together with any substitute, replacement or
         sub-account in relation to such designated account).

         "ACCOUNT BALANCE" means, in relation to an Account, the total sum
         standing to the credit of such Account (including all amounts in
         respect of earnings on such Account which have been credited thereto).

         "BONDING FACILITY AGREEMENT" means the L50,000,000 committed
         multicurrency revolving bonding facility agreement of even date entered
         into between (inter alios) HSBC Bank plc and the Applicant.

         "COLLATERAL RIGHTS" means all rights, powers and remedies of the
         Security Trustee provided by or pursuant to this Agreement or by law.

                                      -1-
<PAGE>
         "DEPOSIT" means each sum from time to time standing to the credit of an
         Account (including all amounts in respect of earnings on such Account
         which have been credited thereto).

         "ESCROW BANK" means the financial institution appointed as escrow bank
         in respect of the accounts to be operated pursuant to the Escrow
         Agreement.

         "MANDATORY REDEMPTION ESCROW ACCOUNT" has the meaning given thereto in
         the Escrow Agreement.

         "SECURED OBLIGATIONS" means all obligations owing to the Finance
         Parties (in their capacity as such) by the Applicant under or pursuant
         to the Finance Documents whether present or future, actual or
         contingent, as principal or as surety.

1.3      In this Agreement, any reference to (a) a "Clause" is, unless otherwise
         stated, a reference to a Clause hereof and (b) "this Agreement", "the
         Finance Document " or the "Bonding Facility Agreement" is a reference
         to this Agreement, the Finance Document or the Bonding Facility
         Agreement (as applicable) as amended, varied or supplemented from time
         to time. Clause headings are for ease of reference only.

2.       CHARGE

2.1      The Applicant charges the Accounts and the Deposits, with full title
         guarantee, by way of first fixed charge, in favour of the Security
         Trustee (as trustee for and on behalf of all the Finance Parties on the
         terms set out in the Bonding Facility Agreement) for the payment and
         discharge of all of the Secured Obligations.

2.2      This Agreement shall constitute notice to the Security Trustee of the
         charge referred to in Clause 2.1.

3.       ACCOUNTS AND DEPOSITS

3.1      If all or any part of the Secured Obligations are due and payable but
         unpaid, the Security Trustee shall be entitled (but shall, to the
         extent reasonably practicable, give prior notice of the same to the
         Applicant) to set-off or transfer all or part of the Account Balances
         (or any of them) in or towards satisfaction of such amount which has
         become due and payable PROVIDED THAT when discharging any part of the
         Secured Obligations pursuant to this Clause 3.1, such liability shall
         be set off against or transferred from:

         3.1.1    firstly, the Account Balance (if any) of the Account
                  denominated in the currency of the relevant Secured
                  Obligation; and

         3.1.2    thereafter, against the Account Balance of any other Account
                  (applying such commercial rate of exchange as the Security
                  Trustee shall reasonably determine).

                                      -2-

<PAGE>

3.2      Subject to Clause 3.3, except with the Security Trustee's prior written
         consent, each Deposit in an Account shall be maintained on the terms
         that it shall mature on (but not before) the earlier of:

         3.2.1    the first time at which the Security Trustee reasonably
                  determines (and the Security Trustee shall make such
                  determination promptly upon a request by the Applicant) that
                  (a) there are no outstanding Secured Obligations and (b) no
                  Finance Party is under any obligation or liability (whether
                  actual or contingent) under the Finance Documents or the
                  Bonds;

         3.2.2    the close of business in London on the date on which all or
                  any part of any Secured Obligations shall have become due and
                  payable and shall not have been paid upon becoming so due and
                  payable, but in any case where only part of the Secured
                  Obligations have become due and payable, then only such part
                  of the Deposits as corresponds to the amount of the Secured
                  Obligations as have become due and payable shall so mature;

         3.2.3    the close of business in London on the last day of the
                  Availability Period, PROVIDED THAT (a) all Long Dated Bonds
                  have been repaid in accordance with clause 7.1 or clause 7.2
                  of the Bonding Facility Agreement and (b) no Finance Party is
                  under any other obligation or liability (whether actual or
                  contingent) under the Finance Documents or the Bonds which has
                  not been fully collateralised by the provision of cash cover
                  (as defined in the Bonding Facility Agreement), in which case
                  such amount of the relevant Deposits as is equal to the amount
                  of all Deposits then held by the Security Trustee LESS (i) the
                  amount of the Deposits as corresponds to the face value of all
                  Long Dated Bonds which have been prepaid in accordance with
                  clause 7.1 of the Bonding Facility by the provision of cash
                  cover (as defined in the New Bonding Agreement) and (ii) the
                  amount of Deposits held as collateral in respect of any other
                  obligations or liabilities (actual or contingent) under the
                  Finance Documents or the Bonds shall so mature;

         3.2.4    in circumstances where, after the expiry of the Availability
                  Period, the relevant Issuing Bank is satisfied that it has no
                  further liability under or in respect of a Long Dated Bond
                  which has been repaid in accordance with clause 7.1 of the
                  Bonding Facility by the provision of cash cover (as defined in
                  the Bonding Facility Agreement) (a "TERMINATED BOND"), and
                  provided that (a) all other Long Dated Bonds have been repaid
                  in accordance with clause 7.1 or 7.2 of the Bonding Facility
                  Agreement and (b) no Finance Party is under any other
                  obligation or liability (whether actual or contingent) under
                  the Finance Documents or the Bonds which has not been fully
                  collateralised by the provision of cash cover (as defined in
                  the Bonding Facility Agreement), the close of business in
                  London on the day on which such Long Dated Bond becomes a
                  Terminated Bond, in which case only such amount of the
                  relevant Deposits as corresponds to the face value of the
                  relevant Long Dated Bond shall so mature;

                                      -3-
<PAGE>
         3.2.5    at any other time, PROVIDED THAT the aggregate Base Currency
                  amount of all cash security provided pursuant to clause 22
                  (Security Undertakings) of the Bonding Facility Agreement and
                  all other cash cover (as defined in the Bonding Facility
                  Agreement) provided generally pursuant to the terms of the
                  Bonding Facility Agreement standing to the credit of the
                  Accounts and any other account held with the Security Trustee
                  (as referred to in paragraph (j) of sub-clause 1.2.1 of Clause
                  1.2 (Construction) of the Bonding Facility Agreement),
                  together with all interest earned on and credited to the
                  Accounts and/or those account, exceeds the lesser of (i)
                  L50,000,000 or (ii) the Total Commitments under the Bonding
                  Facility Agreement (such excess amount being a "COLLATERAL
                  EXCESS"), in which case only the amount of such Collateral
                  Excess shall so mature,

         so that, at such time as such Deposit (or the relevant part thereof)
         shall mature (or at any time thereafter), it (or the relevant part
         thereof) shall become repayable to the Applicant subject to (a) any
         rights of set-off, combination or consolidation in respect of such
         Deposit which the Security Trustee may be entitled to exercise either
         under this Agreement or at law and (b) the provisions of Clause 3.6.

         In any case where any Deposit or any part thereof is to mature in
         accordance with sub-Clauses 3.2.3 or 3.2.4, the Deposit or Deposits (or
         part or parts thereof) which shall so mature shall first be those on
         the Account or Accounts denominated in the currency of the relevant
         Long Dated Bond and, thereafter, to the extent that there are
         insufficient Deposits in such Account or Accounts or if there is no
         such Account, on any other Account (applying such commercial rate of
         exchange as the Security Trustee shall reasonably determine).

3.3      Notwithstanding Clauses 3.1 and 3.2, in circumstances where the
         Applicant is entitled to request a roll-over of the Initial Cash
         Security provided in respect of a Discharged Bond pursuant to, and in
         accordance with the provisions of clause 22.3 (Roll-over of Initial
         Cash Security) of the Bonding Facility Agreement, but subject to any
         rights of set off or transfer which the Security Trustee has already
         exercised or is entitled to exercise pursuant to Clause 3.1, the
         relevant amount of the relevant Deposit or Account Balance (as
         appropriate) in the relevant Account shall be capable of being and may
         be transferred to another Account to stand as security in respect of
         another Bond to be issued pursuant to the Bonding Facility Agreement,
         (and for this purpose, the Security Trustee is authorised to any enter
         into any currency exchange transactions as may be necessary).

3.4      If the Applicant fails to fulfil its indemnity obligations under clause
         8 of the Bonding Facility Agreement by close of business in London on
         the day upon which such indemnity obligations are required to be
         fulfilled in any case where only part of the Secured Obligations have
         become due and payable then only so much of the relevant Deposit shall
         mature as equals the amount to be indemnified by the Applicant pursuant
         to clause 8 of the Bonding Facility Agreement.

3.5      Save for any second ranking security granted pursuant to the terms of
         the Notes Indentures for the benefit of the holders of the Notes, as
         contemplated pursuant to the terms of the Security Trust and
         Intercreditor Deed or the Escrow Agreement or (otherwise) with the
         Security Trustee's prior written consent, no right, title or interest
         in

                                      -4-
<PAGE>
         relation to any Account or any Deposit or to this Agreement shall be
         (a) capable of assignment or other disposal or (b) the subject of (and
         the Applicant shall not permit to exist) any security or other third
         party interest other than the security created pursuant to this
         Agreement.

3.6      To the extent that the Company is under any obligation pursuant to the
         terms of the Escrow Agreement and/or the Notes Indentures to procure
         that any Deposit (or any part thereof) is upon maturity to be deposited
         into the Mandatory Redemption Escrow Account, the Applicant hereby
         authorises the Security Trustee (but without imposing any obligation
         upon the Security Trustee) to pay over the amount of such Deposit (or
         the relevant part thereof) to the Escrow Bank to be so deposited into
         the Mandatory Redemption Escrow Account and any such payment by the
         Security Trustee shall constitute a good discharge towards the
         Applicant in respect of such Deposit (or the relevant part thereof).

4.       EFFECTIVENESS OF SECURITY

4.1      The security constituted and the rights, powers and remedies provided
         by this Agreement shall be cumulative, in addition to and independent
         of every other security which the Security Trustee may at any time hold
         for the Secured Obligations or any rights, powers and remedies of the
         Security Trustee provided by law (each such right, power and remedy
         under this Agreement and at law being a "COLLATERAL RIGHT").

4.2      This Agreement shall remain in full force and effect as a continuing
         arrangement unless and until the Security Trustee discharges it. Upon
         the maturity of all Deposits pursuant to sub-clause 3.2.1 and PROVIDED
         THAT (a) there are no outstanding Secured Obligations and (b) no
         Finance Party is under any obligation or liability (whether actual or
         contingent) under the Finance Documents or the Bonds, the Security
         Trustee shall, on the Applicant's request, release the Applicant from
         its obligations under the Finance Documents and release the charge
         created pursuant to Clause 2.1.

4.3      No failure on the part of the Security Trustee to exercise, or delay on
         its part in exercising, any Collateral Right shall operate as a waiver
         thereof, nor shall any single or partial exercise of a Collateral Right
         preclude any further or other exercise of that or any other Collateral
         Right.

4.4      The obligations of the Applicant under this Agreement and the
         Collateral Rights shall not be discharged, impaired or otherwise
         affected by:

         4.4.1    any lack of validity, legality, effectiveness or
                  enforceability of (a) the Finance Documents or the Bonds or
                  any agreement or instrument relating thereto (collectively,
                  the "RELATED DOCUMENTS") or (b) any obligation under any
                  Related Document;

         4.4.2    any amendment or waiver of or any consent to departure from or
                  any release of any of the obligations of any party under all
                  or any of the Related Documents other than in accordance with
                  and to the extent expressly stated in any written amendment,
                  waiver, consent or release (and subject to the conditions
                  thereof)

                                      -5-
<PAGE>
                  (and "written" shall include, for the avoidance of doubt, any
                  communication by electronic mail);

         4.4.3    the existence of any claim, set-off, defence or other right
                  which the Applicant or any Obligor may have at any time
                  against the Security Trustee or any other person or entity,
                  whether in connection with the transactions contemplated in
                  the Related Documents, or any unrelated transaction or the
                  attachment (or similar order of court) of any payment under
                  the Related Documents;

         4.4.4    any winding-up, dissolution, administration or re-organisation
                  of or other change in the Applicant, any Obligor or any other
                  company, corporation, partnership or other person;

         4.4.5    any time or other indulgence being granted to the Applicant,
                  any Obligor or any other company, corporation, partnership or
                  other person other than in accordance with and to the extent
                  expressly stated in any written document (including, for the
                  avoidance of doubt, any communication by electronic mail)
                  referring to such indulgence;

         4.4.6    any failure to take or failure to realise the value of any
                  collateral in respect of the obligations of the Applicant
                  under the Related Documents or any release, discharge,
                  exchange or substitution of any such collateral other than in
                  accordance with and to the extent expressly stated in any
                  written document (including, for the avoidance of doubt, any
                  communication by electronic mail) referring to such release,
                  discharge, exchange or substitution;

         4.4.7    any other act, event or omission which but for this provision
                  would or might operate to impair, discharge or otherwise
                  affect the obligations of the Applicant hereunder.

4.5      Neither the Security Trustee nor any other Finance Party shall be
         obliged to make any demand on the Applicant or any Obligor on whose
         behalf a Bond was issued, to take any action or obtain judgment in any
         court against any such party or to make or file any proof or claim in a
         liquidation or insolvency of any such party or to enforce or seek to
         enforce any security held in respect of the obligations of the
         Applicant under the Finance Documents before exercising any Collateral
         Right.

5.       COMPANY'S RIGHTS AND UNDERTAKINGS

5.1      Any settlement or discharge hereunder shall be conditional upon no
         payment to the Finance Parties by or on behalf of the Applicant being
         avoided or reduced by virtue of any bankruptcy, insolvency, liquidation
         or similar laws of general application and shall in those circumstances
         be void.

5.2      The Applicant hereby represents and warrants to the Security Trustee
         and undertakes during the subsistence of this Agreement that:

         5.2.1    it is and will be the sole, lawful and beneficial owner of
                  each Account and each Deposit free from any security interest
                  or third party right except the security

                                      -6-
<PAGE>
                  and other rights granted to the Security Trustee under the
                  Finance Documents and the second ranking security referred to
                  in Clause 3.5; and

         5.2.2    save as provided in the Finance Documents, it will not sell or
                  dispose of the benefit of all or any of its rights, title and
                  interest in any Account or any Deposit.

6.       FURTHER ASSURANCE

         The Applicant shall promptly upon notice from the Security Trustee
         execute all documents and do all things that the Security Trustee may
         reasonably specify for the purpose of (a) exercising the Collateral
         Rights or (b) securing and perfecting its security over or title to all
         or any part of the Accounts and the Deposits.

7.       POWER OF ATTORNEY

         The Applicant, by way of security, irrevocably appoints the Security
         Trustee to be its attorney and in its name, on its behalf and as its
         act and deed to execute, deliver and perfect all documents and do all
         things that the Security Trustee may consider to be requisite for (a)
         carrying out any obligation imposed on the Applicant under this
         Agreement or (b) exercising any of the Collateral Rights. The Applicant
         shall ratify and confirm all things done and all documents executed by
         the Security Trustee in the proper exercise of that power of attorney.

8.       SUBSEQUENT INTERESTS

         If the Security Trustee at any time receives notice of any subsequent
         mortgage, assignment, charge or other interest affecting all or any
         part of any Account and/or any Deposit, all payments thereafter made by
         the Applicant to the Security Trustee or the other Finance Documents
         shall be treated as having been credited to a new account of the
         Applicant and not as having been applied in reduction of the Secured
         Obligations as at the time when the Security Trustee received notice.

9.       MISCELLANEOUS CLAUSES

         The provisions of clauses 37 (Governing Law) and 38 (Jurisdiction) of
         the Bonding Facility Agreement shall apply mutatis mutandis as if set
         out here in full.

IN WITNESS WHEREOF this Agreement has been signed on behalf of the Security
Trustee and executed as a deed by the Applicant and is intended to be and is
hereby delivered by it as a deed on the date specified above.

                                      -7-
<PAGE>
                                 EXECUTION PAGE

THE SECURITY TRUSTEE

HSBC Bank plc

By:           MARK HEPTINSTALL

Title:        MANAGER

THE APPLICANT

EXECUTED as a DEED

by Marconi Bonding Limited

              KEVIN DAVID SMITH

              Director

              C G DONALDSON

              Director

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