Exhibit 10.7

                                LOGIC WORKS, INC.
                         University Square at Princeton
                                111 Campus Drive
                           Princeton, New Jersey 08540

                                 March 12, 1998



Gregory A. Peters
c/o Logic Works, Inc.
University Square at Princeton
111 Campus Drive
Princeton, New Jersey 08540

Dear Mr. Peters:

            We are pleased to inform you that the Board of Directors has
recently authorized a special severance benefit package for you and other key
executives of the Company. Your severance benefits as described below will
become payable in the event your employment terminates under certain
circumstances described below. This Agreement clarifies and confirms the current
severance obligations of the Company set forth in the employment letter to you
dated July 3, 1996 (the "Letter Agreement") and sets forth certain additional
severance benefits in Section 5.

            1. Severance Payments. Upon your involuntary discharge or dismissal
(for reasons other than Misconduct), you will receive severance payments in an
aggregate amount equal to one-half the annual base salary in effect for you at
the time of such termination. Additionally, if such termination is an
Involuntary Termination in connection with or within eighteen (18) months
following a Change in Control, you will receive additional severance payments in
an aggregate amount equal to one-half of your annual base salary in effect for
you at the time of your termination (or the base salary in effect prior to a
reduction which triggered the Involuntary Termination under Section 4(b)(ii)(B)
of this letter agreement).

            Your severance payments will be paid monthly over the six (6)-month
period following the effective date of any termination described above and will
be subject to the Company's collection of applicable Federal and state income
and employment withholding taxes.

            2. Health Care Coverage. If you become entitled to severance
payments under Paragraph 1, the Company will, at its expense, provide you and
your eligible dependents with continued health care coverage under the Company's
medical/dental plan until the earlier of (i) the first date that you are covered
under another employer's health benefit program which provides substantially the
same level of benefits without exclusion for pre-existing medical conditions or
(ii) the end of the severance payment period under Paragraph 1. Any further
coverage to which you or your dependents may be entitled during the remainder
(if any) of your COBRA coverage period under Internal Revenue Code Section 4980B
will be at your sole expense.

            3. Limitation on Benefits. In the event your employment terminates
by reason of your death or disability or in the event of your termination for
Misconduct, you will not be entitled to receive any severance benefits under
this letter agreement.


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            4. Definitions. For purposes of this letter agreement, the following
definitions will be in effect:

                  a. Change in Control means any of the following transactions
effecting a change in ownership or control of the Company:

                        (1) a merger or consolidation in which securities
      possessing more than fifty percent (50%) of the total combined voting
      power of the Company's outstanding securities are transferred to a person
      or persons different from the persons holding those securities immediately
      prior to such transaction, or

                        (2) the sale, transfer or other disposition of all or
      substantially all of the Company's assets in complete liquidation or
      dissolution of the Company, or

                        (3) the acquisition, directly or indirectly, by any
      person or related group of persons (other than the Company or a person
      that directly or indirectly controls, is controlled by, or is under common
      control with, the Company) of beneficial ownership (within the meaning of
      Rule 13d-3 of the Securities Exchange Act of 1934, as amended) of
      securities possessing more than fifty percent (50%) of the total combined
      voting power of the Company's outstanding securities pursuant to a tender
      or exchange offer made directly to the Company's stockholders, or

                        (4) a change in the composition of the Board over a
      period of thirty-six (36) consecutive months or less such that a majority
      of the Board members ceases by reason of one or more contested elections
      for Board membership, to be comprised of individuals who either (A) have
      been Board members continuously since the beginning of such period or (B)
      have been elected or nominated for election as Board members during such
      period by at least a majority of the Board members described in clause (A)
      who were still in office at the time such election or nomination was
      approved by the Board.

                  b. Involuntary Termination means the termination of your
employment with the Company:

                        (1) involuntarily upon your discharge or dismissal (for
      reasons other than Misconduct), or

                        (2) voluntarily upon your resignation following (A) a
      change in your position with the Company which materially reduces your
      duties or level of responsibility, (B) a reduction in your level of
      compensation (including base salary, fringe benefits and participation in
      corporate-performance based bonus or incentive programs) or (C) a change
      in your place of employment which is more than fifty (50) miles from your
      place of employment prior to the Change in Control, provided and only if
      such change or reduction is effected without your written concurrence.

            In no event shall an Involuntary Termination be deemed to occur
should your employment terminate by reason of your death or disability.

                  c. Misconduct means the commission of any act of fraud,
embezzlement or dishonesty by you, any unauthorized use or disclosure by you of
confidential information or trade secrets of the Company, or any other
intentional misconduct by you adversely affecting the business or affairs of the
Company in a material manner. The foregoing definition shall not be deemed to be
inclusive of all the acts or omissions which the Company may consider as grounds
for the dismissal or discharge of you or any other individual in the service of
the Company.


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            5. Tax Gross-Up.

                  a. Tax Gross-Up. Should one or more benefits which become
payable to you under the Letter Agreement (as clarified by Section 1 of this
Agreement) or with respect to your outstanding options under the Company's 1995
Stock Option/Stock Issuance Plan be deemed, by reason of the acquisition of the
Company by PLATINUM technology, inc. ("PLATINUM") pursuant to the Agreement Plan
of Merger by and among PLATINUM, PT Acquisition Corporation II, a Delaware
corporation and a wholly-owned subsidiary of PLATINUM, and the Company, dated
March 14, 1998, to constitute an excess parachute payment under Section 280(G)
of the Internal Revenue Code, then the Company shall provide you with a full tax
gross-up with respect to your parachute tax liability under Section 4999 of the
Internal Revenue Code. The amount of such tax gross-up shall be determined
pursuant to the following formula:

                        X  =  Y / 1 - (A + B + C), where

                        X is the total dollar payment (the "Tax Gross-Up")
                        required to be paid under this Agreement,

                        Y is the total excise tax (the "Parachute Tax") imposed
                        on you pursuant to Internal Revenue Code Section 4999
                        (or any successor provision) with respect to the excess
                        parachute payment,

                        A is the excise tax rate in effect under Internal
                        Revenue Code Section 4999 for such excess parachute
                        payment,

                        B is the highest combined marginal federal income and
                        applicable state income tax rate in effect for you,
                        after taking into account the deductibility of state
                        income taxes against federal income taxes to the extent
                        allowable, for the calendar year in which the Tax
                        Gross-Up is paid, and

                        C is the applicable Hospital Insurance (Medicare) Tax
                        Rate in effect for you for the calendar year in which
                        the Tax Gross-Up is paid.

                  b. Initial Payment. Within ninety (90) days after each
determination is made by your tax advisor that you have received a parachute
payment for which you are liable for a Parachute Tax, you shall identify the
nature of such parachute payment to the Company and submit to the Company the
calculation of the Parachute Tax attributable to that payment and the Tax
Gross-Up to which you are entitled with respect to such tax liability. The
Company shall pay such Tax Gross-Up to you (net of all applicable withholding
taxes, including any taxes required to be withheld under Internal Revenue Code
Section 4999) within ten (10) business days after your submission of the
calculation of such Parachute Tax and the resulting Tax Gross-Up, provided such
calculations represent a reasonable interpretation of the applicable law and
regulations.

                  c. Final IRS Determination. In the event that your actual
Parachute Tax liability is determined by a Final IRS Determination to be greater
than the Parachute Tax liability taken into account for purposes of the
Tax-Gross-Up paid to you pursuant to this Section, then within ninety (90) days
following the Final IRS Determination, you shall submit to the Company a new
Parachute Tax calculation based upon the Final IRS Determination. Within ten
(10) business days after receipt of such calculation, the Company shall pay to
you the additional Tax Gross-Up attributable to such excess Parachute Tax
liability.


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                  d. Refund. In the event that your actual Parachute Tax
liability is determined by a Final IRS Determination to be less than the
Parachute Tax liability taken into account for purposes of the Tax Gross-Up paid
to you pursuant to this Section, then you shall refund to the Company, promptly
upon receipt, any federal or state tax refund attributable to the Parachute Tax
overpayment.

                  e. Definition. For purposes of this Section, a Final IRS
Determination means an audit adjustment by the Internal Revenue Service that is
either agreed to by you or your estate or an adjustment that is sustained by a
court of competent jurisdiction in a decision with which you concur or with
respect to which the period within which an appeal may be filed has lapsed
without a notice of appeal being filed.

            6. General Creditor Status. The payments and benefits to which you
become entitled hereunder will be paid, when due, from the general assets of the
Company, and no trust fund, escrow arrangement or other segregated account will
be established as a funding vehicle for such payment. Accordingly, your right
(or the right of the personal representatives or beneficiaries of your estate)
to receive any payments or benefits hereunder will at all times be that of a
general creditor of the Company and will have no priority over the claims of
other general creditors.

            7. Death. Should you die before receipt of one or more severance
payments to which you become entitled under this letter, then those payment or
payments will be made to the executors or administrators of your estate.

            8. Miscellaneous. This letter agreement will be binding upon the
Company, its successors and assigns (including, without limitation, the
surviving entity in any Change in Control) and is to be construed and
interpreted under the laws of the State of New Jersey. This letter agreement
supersedes all prior agreements between you and the Company relating to the
subject of severance benefits payable upon your termination of employment.

            9. At Will Employment. Nothing in this letter agreement is intended
to provide you with any right to continue in the employ of the Company for any
period of specific duration or interfere with or otherwise restrict in any way
your rights or the rights of the Company, which rights are hereby expressly
reserved by each party, to terminate your employment at any time for any reason
whatsoever, with or without cause.

            We hope that you find the new severance benefit program to be an
important addition to your total compensation package which will provide you
with certain financial assurances in the event your employment were to terminate
under the circumstances indicated in this letter agreement.


                                    LOGIC WORKS, INC.


                                    BY: /s/ Benjamin C. Cohen
                                    ---------------------------------
                                    TITLE: Chairman of the Board of Directors
                                    ---------------------------------




                                    /s/ Gregory A. Peters
                                    ---------------------------
                                    Gregory A. Peters


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