The Agency agrees that it will provide to the union the requirements and/or limitations placed on Defense Finance and Accounting Service (DFAS) by the Internal Revenue Service regarding the DFAS eW-2 initiative.

If, as a result of reviewing this information, the union has concerns it wishes to address, the parties agree that they will engage in expedited post-implementation bargaining on these concerns on a date determined by the Co-chairs. These negotiations will have no affect on the implementation of the DFAS eW-2 initiative or the July 23, 2003 Memorandum of Agreement between the parties on the DFAS eW-2 initiative, unless mutually agreed upon by the Co-chairs. Should these negotiations occur, the Ground Rules in effect in July 2003 will apply, unless otherwise agreed to by the Co-chairs.

The negotiating teams for these negotiations will be limited to no more than 4 participants per team, as determined by the co-chairs. Nothing in this agreement shall constitute a waiver of either parties’ rights

Signed this date _____July 23,2003_________

/S/ /S/

______________________________ _______________________________

Robert McNamara Mark McDonald

DFAS, Co-Chair Chief Negotiator