Document:

UNISYS CORPORATION
                  DEFERRED COMPENSATION PLAN
      (as amended and restated effective September 22, 2000)

                        ARTICLE I
                    PURPOSE & AUTHORITY

          1.1   PURPOSE.  The purpose of the Plan is to offer Eligible
Executives the opportunity to defer receipt of a portion of their
compensation from the Corporation, under terms advantageous to both the
Eligible Executive and the Corporation.

          1.2   EFFECTIVE DATE.  The Board originally approved the
Officers' Plan on January 29, 1982.  The Plan has been amended and
restated from time to time since its original adoption and, except to
the extent specifically provided otherwise, this amended and restated
version of the Plan is effective with respect to all amounts credited to
a Participant's Account as of September 22, 2000 or any date thereafter.

          1.3   AUTHORITY.  Any decision made or action taken by the
Corporation and any of its officers or employees involved in the
administration of this Plan, or any member of the Board or the Committee
arising out of or in connection with the construction, administration,
interpretation and effect of the Plan shall be within the absolute
discretion of all and each of them, as the case may be, and will be
conclusive and binding on all parties.  No member of the Board and no
employee of the Corporation shall be liable for any act or action
hereunder, whether of omission or commission, by any other member or
employee or by any agent to whom duties in connection with the
administration of the Plan have been delegated or, except in
circumstances involving the member's or employee's bad faith, for
anything done or omitted to be done by himself or herself.

                          ARTICLE II
                          DEFINITIONS

          2.1   "Account" means, for any Participant, each memorandum
account established for the Participant under Section 5.1.

          2.2   "Account Balance" means, for any Participant as of any
date and with respect to any Account, the aggregate amount reflected in
that Account.

          2.3   "Annual Incentive Pay" means, for any individual, the
amount payable, if any, to such individual under the Unisys Executive
Variable Compensation Plan (or under any successor annual incentive plan
of the Corporation) or under any other similar annual incentive plan of
the Corporation approved by the Vice President, Human Resources.

          2.4   "Beneficiary" means the person or persons designated
from time to time in writing by a Participant to receive payments under
the Plan after the death of such Participant or, in the absence of such
designation or in the event that such designated person or persons
predeceases the Participant, the Participant's estate.

          2.5   "Board" means the Board of Directors of the Corporation.

          2.6   "Committee" means the Corporate Governance and
Compensation Committee of the Board, or such other committee as may be
appointed by the Board to administer the Plan.

          2.7   "Corporation" means Unisys Corporation.

          2.8   "Corporation Contributions" means discretionary
contributions that are made by the Corporation at any time based on
individual or corporate performance or such other criteria as is deemed
appropriate by the Corporation.

          2.9   "Corporation Contributions Account" means that portion
of a Participant's Account to which any Corporation Contributions made
under the Plan for him or her are credited.

          2.10  "Deferral Election" means an election by an Eligible
Executive to defer a portion of his or her compensation from the
Corporation under the Plan, as described in Section 3.1.

          2.11  "Directors' Plan" means the Deferred Compensation Plan
for Directors of Unisys Corporation.

          2.12  "Eligible Executive" means, for any calendar year, an
employee (a) whose base salary from the Corporation equals or exceeds 70
percent (70%) of the maximum amount of compensation that is permitted to
be taken into account under Section 401(a)(17) of the Internal Revenue
Code and who is eligible to receive Annual Incentive Pay or sales
commissions, (b) whose base salary from the Corporation equals or
exceeds the maximum amount of compensation that is permitted to be taken
into account under Section 401(a)(17) of the Internal Revenue Code, or
(c) who satisfies any other eligibility criteria established by the
Committee.

          2.13  "Fair Market Value" means, on any date, the  sales price
of a share of Unisys Common Stock  as of the official close of the New
York Stock Exchange at 4:00 p.m. US Eastern Standard Time. .

          2.14  "Investment Measurement Option" means any of the
hypothetical investment alternatives available for determining the
additional amounts to be credited to a Participant's Account under
Section 5.2.  Effective January 1, 1997, the Investment Measurement
Options available are all of the investment options available to
eligible participants under the USP.  Performance Unit Compensation
deferred under the Plan will be held as Stock Units.

          2.15  "Officers' Plan" means the Deferred Compensation Plan
for Officers of Unisys Corporation, the predecessor of this Plan.

          2.16  "Option for Stock Units" means an option, created
pursuant to a Participant's election in accordance with Section 3.2,
that, if exercised by the Participant, will result in the crediting of
Stock Units to the Participant's Account.

          2.17  "Participant" means an Eligible Executive or former
Eligible Executive who has made a Deferral Election and who has not
received a distribution of his or her entire Account Balance.

          2.18  "Performance Unit Compensation" means any amount payable
to an Eligible Executive as a result of the Eligible Executive's vesting
in a Performance Unit award (including, but not limited to, share unit
and restricted share unit awards) made under the terms of the 1990
Unisys Long-Term Incentive Plan, or any successor equity-based incentive
compensation plan.

          2.19  "Plan" means the Unisys Corporation Deferred
Compensation Plan, as set forth herein and as amended from time to time.

          2.20  "Revised Election" means an election made by a
Participant, in accordance with Section 6.2, to change the date as of
which payment of his or her Account Balance is to commence and/or the
form in which such payment is to be made.

          2.21  "Stock Units" means Unisys common stock-equivalent
units.  Each Stock Unit represents the equivalent of one share of Unisys
common stock; therefore, the value of a Stock Unit on any given date is
the Fair Market Value of a share of Unisys Common Stock on that date.

          2.22  "USP" means the Unisys Savings Plan.

          2.23  "Valuation Date" means any business day as of which the
interest of a Participant in each of the Participant's Accounts is
valued.

                               ARTICLE III
                         DEFERRAL OF COMPENSATION

          3.1   DEFERRAL ELECTION.

            (a)   During any calendar year, each individual who is an
Eligible Executive for such calendar year may, by properly completing
and filing a Deferral Election in the form and manner prescribed by the
Committee (including properly completing a life insurance application if
required by the Committee), elect to defer:

                  (1)  all or a portion of his or her salary that,
absent deferral under this Plan but giving effect to any deferral or
salary deduction election under any other plan maintained by the
Corporation (other than the USP), would be paid to him or her for
services rendered during the remainder of the current calendar year
and/or the next following calendar year; and/or

                  (2)  up to seventy-five percent (75%) of his or her
sales commissions that, absent deferral under this Plan but giving
effect to any deferral or salary deduction election under any other plan
maintained by the Corporation (other than the USP), would be paid to him
or her during the remainder of the current calendar year and/or the next
following calendar year; and

                  (3)  all or a portion of his or her Annual Incentive
Pay that, absent deferral under this Plan, but giving effect to any
deferral or salary deduction election under any other plan maintained by
the Corporation (other than the USP), would be paid to him/her in the
next following calendar year.

            (b)   To be effective, a Deferral Election with respect to
salary, sales commissions and/or Annual Incentive Pay must be filed by
the date specified by the Committee, or if no date is specified, by
October 31 of the calendar year immediately preceding the calendar year
in which the amounts to be deferred, absent deferral, would be paid to
the Eligible Executive.  Notwithstanding the foregoing, an Eligible
Executive may make a Deferral Election with respect to salary and/or
sales commissions by filing a Deferral Election on or before the date
that is at least three months and one day before the date on which the
amounts to be deferred, absent deferral, would be paid to the Eligible
Executive, provided, however, that an individual who becomes an Eligible
Executive after the effective date of the Plan (as set forth in Section
1.2) may make and file a Deferral Election on or before the date that is
30 days after the date on which he or she becomes an Eligible Executive
with respect to salary and/or sales commissions that, absent deferral,
would be paid to him or her during the remainder of the calendar year in
which he or she becomes an Eligible Executive, with such Deferral
Election becoming effective as soon as administratively practicable.

            (c)   In addition to the Deferral Elections described in
Section 3.1(a), an Eligible Executive may make a Deferral Election with
respect to Performance Unit Compensation that, absent deferral, would be
paid to the Eligible Executive.  To be effective, a Deferral Election
with respect to Performance Unit Compensation must be made in writing by
the Eligible Executive on or before the date that is 12 months and one
day before the date on which the amounts to be deferred, absent
deferral, would be paid to the Executive.

            (d)   Once made, a Deferral Election shall become effective
upon approval by the Corporate Executive Compensation Department and is
thereafter irrevocable, except to the extent otherwise provided in
Section 6.2.  A Deferral Election will be deemed to have been approved
by the Corporate Executive Compensation Department if it is not
disapproved by the Corporate Executive Compensation Department within
ten days of the date on which it is received.

            (e)   An Eligible Executive's Deferral Election must specify
either a percentage or a certain dollar amount of his or her salary,
sales commissions, and/or Annual Incentive Pay, and/or a percentage of
his or her Performance Unit Compensation, to be deferred under the Plan.
In addition, the Deferral Election must specify the portion of the year,
if less than the full year, to which the Deferral Election is to apply.
Finally, the Deferral Election must specify the date on which payment of
the Eligible Executive's Account Balance is to commence and the manner
in which such payment is to be made.

                  (1)  The Eligible Executive must specify the date as
of which payment of his or her Account Balance is to commence and may
specify that such payment is to commence as of:

                       (A)  his or her termination of active employment
(including as a result of retirement, onset of long term disability or
other reason for termination) with the Corporation; or

                       (B)  a specific date (which may be determined by
reference to the Eligible Executive's termination of employment by
retirement or otherwise) that is at least two years after the end of the
calendar year containing the date on which the amounts to be deferred,
absent deferral, would be paid to the Eligible Executive.

                  (2)  The Eligible Executive must specify the manner in
which payment of his or her Account Balance is to be made and may
specify that such payment is to be made either in a single sum or in
annual installments.  If the Eligible Executive is still employed when
such distributions commence, then annual installments  may not be for a
period shorter than 2 years nor longer than 5 years.

                  (3)  Notwithstanding the foregoing, an Eligible
Executive may not elect a time of benefit commencement and/or a form of
payment to the extent that such an election would cause any payments to
be made after the March 31 first following the date that is 20 years
after the date of the Eligible Executive's termination of employment (by
retirement or otherwise).

            (f)   Deferrals of an Eligible Executive's salary shall be
credited to the Plan ratably throughout the year (or, where applicable,
the portion of the year) to which the Deferral Election applies.
Deferrals of an Eligible Executive's Annual Incentive Pay and
Performance Unit Compensation shall be credited in a single sum.  Any
deferral will be credited to the Plan as soon as administratively
practicable after the date on which the amount, absent deferral, would
be payable to the Participant.

            (g)   A Deferral Election with respect to salary shall
expire as of the last day of the calendar year that includes the first
day on which any amount, absent deferral, would be paid to the Eligible
Executive and a Deferral Election with respect to Annual Incentive Pay
or Performance Unit Compensation shall expire as of the date on which
the Annual Incentive Pay or Performance Unit Compensation that is the
subject of the Deferral Election is credited under the Plan.

          3.2   OPTIONS FOR STOCK UNITS.  A Participant who holds an
option for Corporation common stock that was awarded to him or her under
any plan maintained by the Corporation may elect, to the extent
permitted under that plan or otherwise by the Committee, to convert all
or part of that option to an Option for Stock Units in accordance with
the provisions of this Section 3.2.

            (a)   ELECTION TO CONVERT OPTION. A Participant can elect to
convert all or a portion of an outstanding option to an Option for Stock
Units by providing written notice to the Corporation, which must be
received by the Corporate Executive Compensation Department, at least
six months before the expiration date of the option.  The election must
specify the number of shares of Corporation common stock subject to the
option that are to become subject to the Option for Stock Units.  The
election must also specify the date on which the Stock Units to be
credited to the Participant's Account upon the exercise of the Option
for Stock Units are to be paid to the Participant; such date may be (1)
the Participant's termination of active employment (including as a
result of retirement, onset of long term disability or other reason for
termination) with the Corporation or (2) a specific date (which may be
determined by reference to the Participant's termination of employment
(by retirement or otherwise) or by reference to the date of the
Participant's exercise of the Option for Stock Units).

            (b)   EXERCISE OF OPTIONS FOR STOCK UNITS.  A Participant may
not exercise an Option for Stock Units until the expiration of the six-
month period beginning on the date on which the Participant's option is
converted to an Option for Stock Units.  Thereafter, but only until the
expiration of the period during which the option that the Participant
converted to an Option for Stock Units could, in accordance with its
original terms be exercised, a Participant may exercise Options for
Stock Units by providing written notice of exercise to the place
designated by the Committee.  At the time of the exercise of an Option
for Stock Units, the Participant must certify to the Corporation or its
designee that he or she currently owns shares of Corporation common
stock sufficient to pay the aggregate option price and, if the shares
were acquired for services to the Corporation that he or she has held
those shares for at least six months.

            (c)   EFFECT OF EXERCISE.
                  (1)  As soon as practicable following receipt of a
Participant's notice of exercise under Section 3.2(b), Stock Units will
be credited to the Participant's Account.  The number of Stock Units to
be so credited will be equal to (A) the difference between (i) the
aggregate Fair Market Value (as defined in the Unisys 1990 Long-Term
Incentive Plan) on the date of exercise of the shares of Corporation
common stock relating to the portion of the Option for Stock Units that
the Participant has elected to exercise and (ii) the sum of (a) the
aggregate exercise price and (b) any Social Security, Medicare or state
or local income tax required to be withheld with respect to the
exercise, divided by (B) the Fair Market Value (as defined in the
Unisys 1990 Long-Term Incentive Plan)  of a share of Corporation common
stock on the date of exercise.

                  (2)  Notwithstanding a Participant's election of a
payment date under Section 3.2(a), if the Participant exercises an
Option for Stock Units later than two years before the payment date
elected, the Stock Units credited to his or her Account as a result of
the exercise will be paid as soon as practicable after the second
anniversary of the date of exercise.

            (d)   EFFECT OF TERMINATION OF EMPLOYMENT.  If a Participant
terminates employment before exercising an Option for Stock Units, the
Option for Stock Units will remain exercisable to the extent that the
option that the Participant converted to the Option for Stock Units
would have remained exercisable absent conversion.  If, however, the
Participant (or his or her Beneficiary) subsequently exercises the
Option for Stock Units after his or her Account Balance has been paid or
has begun to be paid as a result of his or her termination of
employment, the Stock Units acquire upon such exercise will be
distributed immediately.  If the Participant (or his or her Beneficiary)
fails to exercise the Option for Stock Units before the date on which
the option that the Participant converted to an Option for Stock Units
would have expired or terminated, then the Participant's (or
Beneficiary's) right to exercise the Option for Stock Units will
likewise terminate.

          3.3   PAYMENT OF FICA AND OTHER TAXES.  Generally, any FICA or
other taxes that are payable by the Eligible Executive and are required
to be withheld by the Corporation during any period with respect to
amounts deferred under the Plan pursuant to Section 3.1 above during
such period shall be withheld from the compensation otherwise currently
payable to the Eligible Executive during the period.  To the extent
that, as a result of a Deferral Election, the compensation currently
payable to an Eligible Executive during any period is insufficient to
permit an amount equal to the FICA and other taxes that are payable by
the Eligible Executive, and required to be withheld by the Corporation,
during that period to be withheld from such current compensation, the
Eligible Executive's Account Balance shall be reduced by an amount equal
to the sum of (a) the difference between the amount of FICA and other
taxes payable by the Eligible Executive, and required to be withheld by
the Corporation, during the period and the amount of compensation
otherwise currently payable to the Eligible Executive during the period
and (b) any additional Federal, state and local income taxes payable by
the Eligible Executive with respect to the reduction in his or her
Account Balance made pursuant to this Section 3.3.

                            ARTICLE IV
                     CORPORATION CONTRIBUTIONS

          4.1   CORPORATION CONTRIBUTIONS.  The Corporation may make
Corporation Contributions to a Participant's Corporation Contributions
Account from time to time.

          4.2   VESTING.  Participants will vest in their Corporation
Contributions Accounts according to the schedule established by the
Corporation when the Corporation Contribution is made to that
Corporation Contributions Account.  If a Participant dies while employed
by the Corporation, the Participant will be fully vested in all his
Corporation Contributions Accounts, if any.

                            ARTICLE V
                  TREATMENT OF DEFERRED AMOUNTS

          5.1   MEMORANDUM ACCOUNT.  The Corporation shall establish on
its books a separate Account for each Participant for each calendar year
in which the Participant defers amounts pursuant to a Deferral Election.
In addition, Corporation Contributions, if any, will be credited to a
Participant's Account and recorded in a separate Corporation
Contributions Account therein.  Further, when a Participant acquires any
Deferred Stock Units, those Deferred Stock Units will be credited to his
or her Account.  Performance Unit Compensation will be credited to the
Participant's Account as Stock Units.  As of each Valuation Date,
incremental amounts determined in accordance with Section 5.2 will be
credited or debited to each Participant's Account.  Any payments made to
or on behalf of the Participant and for his or her Beneficiary shall be
debited from the Account.  No assets shall be segregated or earmarked in
respect to any Account and no Participant or Beneficiary shall have any
right to assign, transfer, pledge or hypothecate his or her interest or
any portion thereof in his or her Account.  The Plan and the crediting
of Accounts hereunder shall not constitute a trust or a funded
arrangement of any sort and shall be merely for the purpose of recording
an unsecured contractual obligation of the Corporation.

          5.2   INVESTMENT MEASUREMENT OPTIONS.

            (a)   Subject to the provisions of this Section 5.2, a
Participant's Account shall be credited or debited with amounts equal to
the amounts that would be earned or lost with respect to the
Participant's Account Balance (including, with respect to Stock Units,
dividend equivalents and other adjustments) if amounts equal to that
Account Balance were actually invested in the Investment Measurement
Options in the manner specified by the Participant.

            (b)   Each Eligible Executive may elect, at the same time as
a Deferral Election is made, to have one or more of the Investment
Measurement Options applied to current deferrals.  Such election with
respect to current deferrals may be changed at any time upon appropriate
notice to the Plan recordkeeper

            (c)   Subject to the restrictions described in subsection
(e), a Participant may elect to change the manner in which Investment
Measurement Options apply to existing Account Balances.  Such an
election will be effective as soon as practicable after the Participant
has provided appropriate notice to the Plan recordkeeper.

            (d)   Notwithstanding anything to the contrary in the Plan,
Deferred Stock Units credited to a Participant's Account as the result
of the Participant's exercise of an Option for Stock Units or the
deferral of Performance Unit Compensation may not be credited with any
Investment Measurement Option.

            (e)   The following rules apply to Investment Measurement
Options.

                  (1)  The percentage of a Participant's current
deferrals and/or Account Balance to which a specified Investment
Measurement Option is to be applied must be in integral multiples of one
percent (1%).  The Participant may change the specified Investment
Measurement Options which shall apply to his or her Account(s) on any
business day as of which the Plan's recordkeeper is open for business.
Changes in a specified Investment Measurement Option with respect to a
Participant's Account will be effective as soon as administratively
practicable following receipt of the Participant's election.

                  (2)  To the extent that a Participant has not
specified an Investment Measurement Option to apply to all or a portion
of his or her current deferrals and/or Account Balance, the Insurance
Contract Fund or such other fund as designated by the Committee from
time to time shall be deemed to be the applicable Investment Measurement
Option.

                  (3)  The chosen Investment Measurement Option or
Options shall apply to deferred amounts on and after the date on which
such amounts are credited to the Participant's Account.

            (f)   The Committee shall have the authority to modify the
rules and restrictions relating to Investment Measurement Options
(including the authority to change such Investment Measurement Options
prospectively) as it, in its discretion, deems necessary and in accord
with the investment practices in place under the USP.

                            ARTICLE VI
                   PAYMENT OF DEFERRED AMOUNTS

          6.1   FORM AND TIME OF PAYMENT.  The benefits to which a
Participant or a Beneficiary may be entitled under the Plan shall be
paid in accordance with this Section 6.1.

            (a)   All payments under the Plan shall be made in cash,
provided, however, that unless otherwise provided by the Committee,
Stock Units shall be paid in shares of Unisys common stock.

            (b)   Except as otherwise provided in Sections 6.3 and 6.4,
payment of a Participant's Account Balance (other than with respect to
his Deferred Stock Units) shall commence as of the Valuation Date next
following the date or dates specified in the Participant's Deferral
Election or Elections or (where applicable) the Participant's Revised
Election or Elections, provided, however, that where the Participant's
Deferral Election or Elections or (where applicable) the Participant's
Revised Election or Elections specify that payments with respect to a
Participant's Account Balance are to commence as of a specified date or
specified dates not determined by reference to the Participant's
termination of employment and the Participant terminates employment with
the Corporation prior to such date or dates, payment of the portion of
the Participant's Account Balance that was deferred to such date or
dates shall commence as of the Valuation Date next following the
Participant's termination of employment, but in the same form specified
in the Participant's Deferral Election or Elections or (where
applicable) the Participant's Revised Election or Elections.

            (c)   All payments shall be made in the form or forms
specified in the Participant's Deferral Election or Elections or (where
applicable) the Participant's Revised Election or Elections.

            (d)   To the extent a Participant has not specified the form
or time of payment of his or her Account Balance, payment will be made
in a single sum as soon as administratively practicable, but within 90
days, after the first Valuation Date following the Participant's
termination of employment (by retirement or otherwise) with the
Corporation.

            (e)   Where a Participant has elected payment in the form of
annual installments, each installment payment after the initial
installment payment shall be made on or about March 31 of each year
following the year in which the first installment was paid.  With
respect to each Deferral Election made by a Participant, the amount of
each annual installment payment to be made to a Participant or
Beneficiary under such Deferral Election shall be determined by dividing
the portion of the Participant's Account Balance attributable to such
Deferral Election as of the latest Valuation Date preceding the date of
payment by the number of installments remaining to be paid under such
Deferral Election.

            (f)   Notwithstanding any Deferral Election made by the
Participant:

                  (1)  If the Participant terminates employment (by
retirement, by onset of a long term disability or otherwise) before the
specific date as of which a Participant's Account Balance is scheduled
to be paid to the Participant, the Participant's election with respect
to the time of commencement of payment will be accelerated until the
date as of which the Participant terminated employment.

                  (2)  If a Participant terminates employment (by reason
of retirement, long term disability or otherwise) after beginning to
receive any portion of an Account Balance that was to be paid to the
Participant as of a specific date, the remaining Account Balance shall
be distributed in accordance with the distribution election in effect at
the time of the Participant's termination of employment.

                  (3)  If the balance in all of a Participant's Accounts
is less than $25,000 at the time of a Participant's termination of
employment (by retirement or otherwise), the balance in all the
Participant's Accounts shall be paid to the Participant in a single sum.

                  (4)  Any portion of a Participant's Account Balance
that has not been paid to the Participant as of the date of his or her
death shall be paid to the Participant's Beneficiary in a single sum as
soon as administratively practicable after the Valuation Date following
the date on which the Corporation receives notification of the
Participant's death.

          6.2   REVISED ELECTION.

            (a)   Pursuant to a Revised Election, a Participant may
specify:

                  (1)  a date for the commencement of the payment of the
Participant's Account Balance that is either the date of the
Participant's termination of employment (by retirement or otherwise) or
a date at least one year after the date specified in the Participant's
applicable Deferral Election; and/or

                  (2)  a form of payment that calls for a greater number
of annual installment payments than that specified in the Participant's
applicable Deferral Election, or a number of annual installment payments
where the Participant specified a single sum payment in his or her
applicable Deferral Election.

                  (3)  Notwithstanding the foregoing, an Eligible
Executive may not elect a time of benefit commencement and/or a form of
payment to the extent that such an election would cause any payments to
be made after the March 31 first following the date that is 20 years
after the date of the Eligible Executive's termination of employment.

            (b)   A Participant may only make three Revised Elections
with respect to each of the Participant's Accounts.

            (c)   To be effective, a Revised Election must be:

                  (1)  made in writing by the Participant on a form
furnished for such purpose by the Corporate Executive Compensation
Department;

                  (2)  submitted to the Corporate Executive Compensation
Department on or before the date that is three months and one day before
the date on which the portion of the Participant's Account Balance that
is the subject of the Revised Election would, absent the Revised
Election, first become payable; and

                  (3)  approved by the Corporate Executive Compensation
Department.  A Revised Election will be deemed to have been approved by
the Corporate Executive Compensation Department if it is not disapproved
by the Corporate Executive Compensation Department within ten days of
the date on which it is received.

          6.3   SPECIAL PAYMENTS.

            (a)   Notwithstanding any other provision of the Plan to the
contrary, a Participant may receive payment of all or a portion of the
balance in one or more of his or her Accounts as soon as
administratively practicable following the receipt by the Corporate
Executive Compensation Department of the Participant's written request
for such payment.  The Participant's election may specify the Account or
Accounts from which the payment is to be made.

            (b)   As a condition of receiving any payment made pursuant
to Subsection 6.3(a), a Participant will be required to pay to the
Corporation an amount equal to eight percent of the amount of the
payment made pursuant to Subsection 6.3(a), which payment shall
generally be deducted from the amount otherwise payable to the
Participant under Subsection 6.3(a), and the Participant will be subject
to suspension of the Participant's further participation in the Plan or
any equivalent plan or plans maintained by the Corporation or a
subsidiary of the Corporation until the last day of the first full
calendar year that follows the date on which the Participant submits his
request for payment under this Subsection 6.3(b).

            (c)   If a Participant receives a payment of less than the
entire balance in any of his or her Accounts from which payment is being
made pursuant to Subsection 6.3(a), the portion of the Participant's
Account Balance to which each Investment Measurement Option is applied
shall be reduced proportionately so that the Investment Measurement
Options apply to the Participant's Account Balance in the same
percentages immediately before and immediately after the payment.

            (d)   Notwithstanding any provision of the Plan to the
contrary, in the event the Committee determines that any portion of a
Participant's Account Balance is the subject of a final determination by
the Internal Revenue Service that such portion is includible in the
Participant's taxable income, the Participant's Account Balance shall be
distributed to the extent it is so includible.  All income taxes and
related interest and penalties associated with credits to or
distributions from a Participant's Account shall be borne by the
Participant.

          6.4   ACCELERATION OF PAYMENT.  Notwithstanding any other
provision of this Plan to the contrary, the Committee in its sole
discretion may accelerate the payment of Account Balances to all or any
group of similarly situated Participants or Beneficiaries, whether
before or after the Participants' termination of service, in response to
changes in the tax laws or accounting principles.

                            ARTICLE VII
                           MISCELLANEOUS

          7.1   AMENDMENT.  The Board may modify or amend, in whole or in
part, any of or all the provisions of the Plan, or suspend or terminate
it entirely; provided, however, that any such modification, amendment,
suspension or termination may not, without the Participant's consent,
adversely affect any deferred amount credited to him or her for any
period prior to the effective date of such modification, amendment,
suspension or termination.  The Plan shall remain in effect until
terminated pursuant to this provision.

          7.2   ADMINISTRATION.  The Committee shall have the sole
authority to interpret the Plan and in its discretion to establish and
modify administrative rules for the Plan, including (but not limited to)
establishing rules regarding elections, investments and distributions.
All expenses and costs in connection with the operation of this Plan
shall be borne by the Corporation.  The Corporation shall have the right
to deduct from any payment to be made pursuant to this Plan any federal,
state or local taxes required by law to be withheld, and any associated
interest and/or penalties.

          7.3   GOVERNING LAW.  The Plan shall be construed and its
provisions enforced and administered in accordance with the laws of the
Commonwealth of Pennsylvania except as such laws may be superseded by
the federal law.

          7.4   UNFUNDED PLAN.  It is intended that the Plan constitute
an "unfunded" plan for deferred compensation.  The Corporation may
authorize the creation of trusts or other arrangements to meet the
obligations created under the Plan; provided, however, that, unless the
Corporation otherwise determines, the existence of such trusts or other
arrangements is consistent with the "unfunded" status of the Plan.  Any
liability of the Corporation to any person with respect to any grant
under the Plan shall be based solely upon any contractual obligations
that may be created pursuant to the Plan.  No such obligation of the
Corporation shall be deemed to be secured by any pledge of, or other
encumbrance on, any property of the Corporation.

                            ARTICLE VIII
                     TRANSFER OF ACCOUNT BALANCE

          8.1   TRANSFER TO DIRECTOR'S PLAN.  Notwithstanding any
election of form of payments made hereunder, a Participant who,
following his termination of employment with the Corporation will be
eligible to participate in the Directors' Plan, may elect at any time
prior to the date that is three months and one day before the
Participant's termination of employment to transfer all or any portion
of his Account Balance to the Directors' Plan.  Such transfer must occur
prior to the date that payments of the Participant's Account Balance
would otherwise be made, or commence, hereunder.  Upon transfer, the
Participant's Account Balance (or the portion thereof transferred) will
be subject to the terms and conditions of the Directors' Plan; provided,
however, that any election of form of payment made under the Directors'
Plan with respect to the amount transferred may not provide for a form
of payment that is in any way more rapid than the form of payment in
effect under this Plan with respect to such amounts immediately prior to
transfer to the Directors' Plan.  Valuation of the Account Balance (or
the portion thereof) to be transferred shall be made consistent with the
valuation provisions described in Article V.  Upon transfer, the
Participant's (or his or her Beneficiary's) rights hereunder with
respect to the amounts transferred shall cease.DEFERRED COMPENSATION
                     PLAN FOR DIRECTORS OF UNISYS CORPORATION

                                    ARTICLE I
                                PURPOSE & AUTHORITY

          1.1   Purpose.  The purpose of the Plan is to offer members of the
Board of Directors who are not employees of the Corporation the opportunity
to defer receipt of a portion of their Compensation, under terms advantageous
to both the Director and the Corporation.

          1.2   Effective Date.  The Board originally approved the Plan on
November 20, 1981, and the Plan was subsequently amended, effective January
1, 1994.  This document reflects the Plan as amended and restated effective
September 22, 2000.  The terms of this amended and restated Plan shall apply
to all Account Balances and elections made pursuant to the Plan prior to its
amendment.

          1.3   Authority.  Any decision made or action taken by the
Corporation and any of its officers or employees involved in the
administration of this Plan, or any member of the Board or the Committee
arising out of or in connection with the construction, administration,
interpretation and effect of the Plan shall be within the absolute discretion
of all and each of them, as the case may be, and will be conclusive and
binding on all parties.  No member of the Board and no employee of the
Corporation shall be liable for any act or action hereunder, whether of
omission or commission, by any other member or employee or by any agent to
whom duties in connection with the administration of the Plan have been
delegated or, except in circumstances involving the member's or employee's
bad faith, for anything done or omitted to be done by himself or herself.

                                   ARTICLE II
                                  DEFINITIONS

          2.1   "Account" means, for any Participant, each memorandum
account established for the Participant under Section 4.1.

          2.2   "Account Balance" means, for any Participant as of any date,
the aggregate amount reflected in his or her Account.

          2.3   "Beneficiary" means the person or persons designated from
time to time in writing by a Participant to receive payments under the Plan
after the death of such Participant or, in the absence of such designation or
in the event that such designated person or persons predeceases the
Participant, the Participant's estate.

          2.4   "Board" means the Board of Directors of the Corporation.

          2.5   "Committee" means the Corporate Governance and Compensation
Committee of the Board, or such other committee as may be appointed by the
Board to administer the Plan.

          2.6   "Compensation" means amounts payable by the Corporation,
absent deferral, with respect to services provided by a Participant to the
Corporation as a Director, including retainer and meeting fees, but shall not
include non-elective stock unit amounts credited, payable or paid under the
Stock Unit Plan.

          2.7   "Corporation" means Unisys Corporation.

          2.8   "Deferral Election" means an election by an Eligible
Director to defer a portion of his or her Compensation under the Plan, as
described in Section 3.1.

          2.9   "Eligible Director" means a member of the Board who is not
an employee of the Corporation.

          2.10  "Executives' Plan" means the Unisys Corporation  Deferred
Compensation Plan .

          2.11  "Investment Measurement Option" means any of the
hypothetical investment alternatives available for determining the additional
amounts to be credited to a Participant's Account under Section 4.2.  The
Investment Measurement Options available are all of the investment options
available to eligible participants under the USP other than the Unisys Common
Stock Fund.

          2.12  "Participant" means an Eligible Director or former Eligible
Director who has made a Deferral Election and who has not received a
distribution of his or her entire Account Balance.

          2.13  "Plan" means the Deferred Compensation Plan for Directors of
Unisys Corporation, as set forth herein and as amended from time to time.

          2.14  "Revised Election" means an election made by a Participant,
in accordance with Section 5.2, to change the date as of which payment of his
or her Account Balance is to commence and/or the form in which such payment
is to be made.

          2.15  "USP" means the Unisys Savings Plan.

          2.16  "Valuation Date" means any business day as of which the
interest of a Participant in each of the Participant's Accounts is valued.

                                 ARTICLE III
                           DEFERRAL OF COMPENSATION

          3.1   Deferral Election.

                (a)  Prior to or during any calendar year, each Eligible
Director may elect to defer all or a portion of his or her Compensation that,
absent deferral, would be paid to him or her for services rendered during the
following calendar year or the remainder of the current calendar year, as
applicable, by properly completing a Deferral Election form.

                (b)  To be effective, a Deferral Election must be made in
writing by the Eligible Director on a form furnished by the Secretary of the
Corporation on or before the date that is (I) no later than the December 31
prior to the calendar year to which the Deferral Election applies or (II) at
least three months and one day before the date on which the amounts to be
deferred, absent deferral, would be paid to the Eligible Director, provided,
however, that an individual who becomes an Eligible Director after January 1
of a calendar year may make a Deferral Election with respect to Compensation
that, absent deferral, would be paid to him or her during the remainder of
the
calendar year in which he or she has become an Eligible Director, by filing
the required written election on or before the date that is 30 days after the
date on which he or she becomes an Eligible Director.

                (c)  Once made, a Deferral Election shall become effective
upon approval by the Secretary of the Corporation and is thereafter
irrevocable, except to the extent otherwise provided in Section 5.2.  A
Deferral Election will be deemed to have been approved by the Secretary of
the Corporation if it is not disapproved by the Secretary of the Corporation
within ten days of the date on which it is received.

                (d)  An Eligible Director's Deferral Election must specify
either a percentage or a certain dollar amount of his or her Compensation to
be deferred under the Plan.  In addition, the Deferral Election must specify
the date on which payment of the amount deferred is to commence and the
manner in which such payment is to be made.

                  (1)  The Eligible Director must specify the date as of
which payment of the amount deferred is to commence, subject to Section
5.1(b) hereof, and may specify that such payment is to commence as of:

                        (A)  his or her termination of service as a member of
the Board (including as a result of disability); or

                        (B)  a specific date (which may be determined by
reference to the Eligible Director's termination of service) that is at least
two years after the date on which the initial amounts to be deferred, absent
deferral, would be paid to the Eligible Director.

                  (2)  The Eligible Director must specify the manner in which
payment of his or her Account Balance is to be made and may specify that such
payment is to be made either in a single sum or in annual installments.

                  (3)  Notwithstanding the foregoing, an Eligible Director
may not elect a time of benefit commencement and/or a form of payment to the
extent that such an election would cause any payments to be made after the
March 31 first following the date that is 20 years after the date of the
Eligible Director's  termination of service.

                (e)  Deferrals of an Eligible Director's Compensation shall
be credited to the Plan at the time at which the Compensation, absent
deferral, would be payable to the Participant.

                (f)  Unless the Deferral Election form specifically provides
otherwise, a Deferral Election shall expire as of the last day of the
calendar year that includes the first day on which any amount, absent
deferral, would be paid to the Eligible Director.

                                   ARTICLE IV
                          TREATMENT OF DEFERRED AMOUNTS

          4.1   Memorandum Account.  The Corporation shall establish on its
books a separate Account for each Participant for each calendar year in which
the Participant elects to defer Compensation.  Amounts deferred by a
participant pursuant to a Deferral Election shall be credited to the
Participant's Account on the date on which the deferred amounts, absent
deferral, would have been paid to the Participant. In addition, as of each
Valuation Date, incremental amounts determined in accordance with Section 4.2
will be credited or debited to each Participant's Account.  Any payments made
to or on behalf of the Participant and for his or her Beneficiary shall be
debited from the Account.  No assets shall be segregated or earmarked in
respect to any Account and no Participant or Beneficiary shall have any right
to assign, transfer, pledge or hypothecate his or her interest or any portion
thereof in his or her Account.  The Plan and the crediting of Accounts
hereunder shall not constitute a trust or a funded arrangement of any sort
and shall be merely for the purpose of recording an unsecured contractual
obligation of the Corporation.

          4.2  Investment Measurement Options.

                (a)  Subject to the provisions of this Section 4.2, a
Participant's Account shall be credited or debited with amounts equal to the
amounts that would be earned or lost with respect to the Participant's
Account Balance if amounts equal to that Account Balance were actually
invested in the Investment Measurement Options in the manner specified by the
Participant.

                (b)  Each Eligible Director may elect, at the same time as a
Deferral Election is made, to have one or more of the Investment Measurement
Options applied to current deferrals.  Such election with respect to current
deferrals may be changed at any time upon appropriate notice to the Corporate
Executive Compensation Department.

                (c)  Subject to the restrictions described in Subsection (d),
a Participant may elect to change the manner in which Investment Measurement
Options apply to existing Account Balances.  In addition, a Participant may
elect to transfer all or any portion of his/her Account balance to the
Director Stock Unit Plan and such amounts will be credited under that Plan as
Elective Stock Units, subject to the terms and conditions of the Director
Stock Unit Plan.  Any election described in this subsection (c) will be
effective upon appropriate notice to the Corporate Executive Compensation
Department.

                (d)  The following rules apply to Investment Measurement
Options.

                  (1)  The percentage of a Participant's current deferrals
and/or Account Balance to which a specified Investment Measurement Option is
to be applied must be a multiple of one percent (1%).  The Participant may
change the specified Investment Measurement Options which shall apply to his
or her Account(s) on any business day as of which the Plan's recordkeeper is
open for business.  Changes in a specified Investment Measurement Option with
respect to a Participant's Account will be effective as soon as
administratively practicable following receipt of the Participant's election.

                  (2)  To the extent that a Participant has not specified an
Investment Measurement Option to apply to all or a portion of his or her
current deferrals and/or Account Balance, the Insurance Contract Fund or such
other fund as is designated by the Committee shall be deemed to be the
applicable Investment Measurement Option.

                  (3)  The chosen Investment Measurement Option or Options
shall apply to deferred amounts on and after the date on which such amounts,
absent deferral, would have been paid to the Participant.

                 (e)  The Committee shall have the authority to modify the
rules and restrictions relating to Investment Measurement Options (including
the authority to change such Investment Measurement Options prospectively) as
it, in its discretion, deems necessary and in accord with the investment
practices in place under the USP.

                                      ARTICLE V
                            PAYMENT OF DEFERRED AMOUNTS

          5.1   Form and Time of Payment.  The benefits to which a
Participant or a Beneficiary may be entitled under the Plan shall be paid in
accordance with this Section 5.1.

                (a)  All payments under the Plan shall be made in cash.

                (b)  Except as otherwise provided in Sections 5.3 and 5.4,
payment of a Participant's Account Balance shall commence as of the Valuation
Date next following the date or dates specified in the Participant's Deferral
Election or Elections or (where applicable) the Participant's Revised
Election or Elections; provided, however, that where the Participant's
Deferral Election or Elections or (where applicable) the Participant's
Revised Election or Elections specify that payments with respect to a
Participant's Account Balance are to commence as of a specified date or
specified dates not determined by reference to the Participant's retirement
or other termination of service and the Participant terminates service with
the Corporation prior to such date or dates, payment of the portion of the
Participant's Account Balance that was deferred to such date or dates shall
commence as of the Valuation Date next following the Participant's
termination of service, but in the same form specified in the Participant's
Deferral Election or Elections or (where applicable) the Participant's
Revised Election or Elections.

                (c)  All payments shall be made in the form or forms
specified in the Participant's Deferral Election or Elections or (where
applicable) the Participant's Revised Election or Elections.

                (d)  To the extent a Participant has not specified the form
or time of payment of all or a part of his or her Account Balance, payment of
the amounts not specified will be made in a single sum as soon as
administratively practicable, but within 90 days, after the first Valuation
Date following the Participant's termination of service as a Director.

                (e)  Where a Participant has elected payment in the form of
annual installments, each installment payment after the initial installment
payment shall be made on or about March 31 of each year following the year in
which the first installment was paid.  With respect to each Deferral Election
made by a Participant, the amount of each annual installment payment to be
made to a Participant under such Deferral Election shall be determined by
dividing the portion of the Participant's Account Balance covered by such
Deferral Election as of the latest Valuation Date preceding the date of
payment by the number of installments remaining to be paid under such
Deferral Election.

                (f) Notwithstanding any Deferral Election made by the
Participant:

                  (1)  If the Participant terminates service as a Director
before the specific date as of which a Participant's Account Balance is
scheduled to be paid to the Participant, the Participant's election with
respect to the time of commencement of payment will be accelerated to  the
date as of which the Participant terminated service as a director.

                  (2)  If a Participant terminates service as a Director
after beginning to receive any portion of an Account Balance that was to be
paid to the Participant as of a specific date, the remaining Account Balance
shall be distributed in accordance with the distribution election in effect
at the time of the Participant's termination of service as a Director.

                  (3)  If the balance in all of a Participant's Accounts is
less than a minimum amount established by the Committee at the time of a
Participant's termination of service as a Director, the balance in all the
Participant's Accounts shall be paid to the Participant in a single sum.

                  (4)  Any portion of a Participant's Account Balance that
has not been paid to the Participant as of the date of his or her death shall
be paid to the Participant's Beneficiary in a single sum as soon as
administratively practicable after the Valuation Date following the date on
which the Corporation receives notification of the Participant's death.

          5.2   Revised Election.

                (a)  Pursuant to a Revised Election, a Participant may
specify:

                  (1)  a date for the commencement of the payment of the
Participant's Account Balance that is either the date of the Participant's
termination of service as a Director or a date at least one year after the
date specified in the Participant's applicable Deferral Election; and/or

                  (2)  a form of payment that calls for a greater number of
annual installment payments than that specified in the Participant's
applicable Deferral Election, or a number of annual installment payments
where the Participant specified a single sum payment in his or her applicable
Deferral Election.

                  (3)  Notwithstanding the foregoing, a Participant  may not
elect a time of benefit commencement and/or a form of payment to the extent
that such an election would cause any payments to be made after the March 31
first following the date that is 20 years after the date of the Eligible
Executive's termination of service as a Director.

                (b)  A Participant may only make three Revised Elections with
respect to each of  the Participant's Accounts.

                (c)  To be effective, a Revised Election must be:

                  (1)  made in writing by the Participant on a form furnished
for such purpose by the Corporate Executive Compensation Department;

                  (2)  submitted to the Corporate Executive Compensation
Department on or before the date that is three months and one day before the
date on which the portion of the Participant's Account Balance that is the
subject of the Revised Election would, absent the Revised Election, first
become payable; and

                  (3)  approved by the Corporate Executive Compensation
Department.  A Revised Election will be deemed to have been approved by the
Corporate Executive Compensation Department if it is not disapproved by the
Corporate Executive Compensation Department within ten days of the date on
which it is received.

          5.3   Special Payment.

                (a)  Notwithstanding any other provision of the Plan to the
Contrary, a Participant may receive payment of all or a portion of his or her
Account Balance as soon as administratively practicable following the receipt
by the Secretary of the Corporation of the Participant's written request for
such payment.

                (b)  As a condition of receiving any payment made pursuant to
Subsection 5.3(a), a Participant will be subject to, as a penalty, payment to
the Company of an amount equal to eight percent of the amount of the payment
made pursuant to Subsection 5.3(a) and suspension of the Participant's
further participation in the Plan, the Unisys Corporation Director Stock Unit
Plan, or any equivalent plan or plans maintained by the Corporation or a
subsidiary of the Corporation for the entire full calendar year that follows
the date on which the Participant submits to the Secretary of the Corporation
his or her request for payment pursuant to Subsection 5.3(a).  The payment to
the Company shall generally be deducted from the amount otherwise payable to
the Participant under Subsection 5.3(a).

                (c)  If a Participant receives a payment of less than his or
her entire Account Balance pursuant to Subsection 5.3(a), the portion of the
Participant's Account Balance to which each Investment Measurement Option is
applied shall be reduced proportionately so that the Investment Measurement
Options apply to the Participant's Account Balance in the same percentage
immediately before and immediately after the payment.

                (d)  Notwithstanding any provision of the Plan to the
contrary, in the event the Committee determines that any portion of a
Participant's Account Balance is the subject of a determination by the
Internal Revenue Service that such portion is includible in the Participant's
taxable income, the Participant's Account Balance shall be distributed to the
extent it is so includible.  All income taxes and related interest and
penalties associated with credits to or distributions from a Participant's
Account shall be borne by the Participant.

          5.4   Acceleration of Payment.  Notwithstanding any other
provision of this Plan to the contrary, the Committee in its sole discretion
may accelerate the payment of Account Balances to all or any group of
similarly situated Participants or Beneficiaries, whether before or after the
Participant's termination of service, in response to changes in the tax laws
or accounting principles.

                                  ARTICLE VI
                                 MISCELLANEOUS

          6.1   Amendment.   The Board may modify or amend, in whole or in
part, any of or all the provisions of the Plan, or suspend or terminate it
entirely; provided, however, that any such modification, amendment,
suspension or termination may not, without the Participant's consent,
adversely affect any deferred amount credited to him or her for any period
prior to the effective date of such modification, amendment, suspension or
termination.  The Plan shall remain in effect until terminated pursuant to
this provision.

          6.2   Administration.  The Committee shall have the sole authority
to interpret the Plan and in its discretion to establish and modify
administrative rules for the Plan.  All expenses and costs in connection with
the operation of this Plan shall be borne by the Corporation.  The
Corporation shall have the right to deduct from any payment to be made
pursuant to this Plan any federal, state or local taxes required by law to be
withheld, and any associated interest and/or penalties.

          6.3   Governing Law.  The Plan shall be construed and its
provisions enforced and administered in accordance with the laws of the
Commonwealth of Pennsylvania except as such laws may be superseded by the
federal law.

                                   ARTICLE VII
                          TRANSFER OF ACCOUNT BALANCE

          7.1   Transfer of Executives' Plan Accounts.  Notwithstanding any
other provision of the Plan to the contrary, a Director who is a former
employee of Unisys Corporation and who is a participant in the Executives'
Plan may elect to transfer any or all of his/her account balance in the
Executives' Plan into this Plan.  Upon transfer, such amounts shall be
subject to the terms and conditions of this Plan, provided that all elections
previously made under the Executives' Plan with respect to such amounts shall
continue in effect until otherwise modified hereunder.  Notwithstanding the
payment election provision described in Article V hereof, in no event may a
Director elect a form of payment with respect to amounts transferred from the
Executives' Plan that is any more rapid than the form of payment in effect
under the Executives' Plan at the time of such transfer.

                                  ARTICLE VIII
                                CHANGE IN CONTROL

          8.1   Withdrawal Election.

                (a)  Notwithstanding any other provision of the Plan to the
contrary, in the event of a "change in control," as defined below, each
Participant may elect to receive a single sum payment of all or any portion
of his/her account balance. Such election shall only be effective if
delivered to the Secretary of the Corporation within the ninety-day period
immediately following the date of the occurrence of the change in control.

                (b)  If an election is timely made, the Participant(or
Beneficiary) will be entitled to receive, as soon as practicable after the
expiration of the ninety-day period, an amount equal to (1) the full value or
any portion thereof of the Account Balance minus (2) an early withdrawal
penalty equal to 8% of the total value of (1).  The Committee, upon advice of
counsel, may modify the early withdrawal penalty described above in any way
it
deems appropriate and consistent with the purposes of the Plan.

          8.2   Litigation Expenses.  If litigation is brought by a
Participant or Beneficiary after a change in control to enforce or interpret
any provision of the Plan, the Corporation to the extent permitted by
applicable law shall reimburse the Participant (or Beneficiary) for the
reasonable fees and disbursements of counsel incurred in such litigation.

          8.3   Change in Control Definition.  For purposes of this Article
VIII, a "change in control" shall have the same meaning as is ascribed to
that term under the 1990 Long-Term Incentive Plan, or any successor plan
designated by the Committee.

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