Document:

2

                                     FORM OF

                      POLICY MANAGEMENT SYSTEMS CORPORATION

                        RESTRICTED STOCK AWARD AGREEMENT
                        --------------------------------

     Award  Agreement,  dated as of  March 1, 2000 (the "Date of Grant") between
POLICY  MANAGEMENT  SYSTEMS  CORPORATION,  a  South  Carolina  corporation  (the
"Company"),  and _________________ (the "Participant").  This Award Agreement is
pursuant  to  the  terms  of  the Company's Restricted Stock Ownership Plan (the
"Plan").  The applicable terms of the Plan are incorporated herein by reference,
including  the  definition  of  terms  contained  in  the  Plan.
          Section  1.     Restricted  Stock  Award.  The  Company  grants to the
          ----------      ------------------------
Participant,  on  the  terms  and conditions hereinafter set forth, a Restricted
Stock  award  with  respect  to ______ SHARES of the Common Stock of the Company
(the  "Restricted  Stock").
          Section 2.     Vesting of Restricted Stock.  Subject to Sections 3 and
          ---------      ---------------------------
4  hereof,  the  Restricted Stock shall become vested and nonforfeitable in five
equal  annual  installments based on the continued service of the Participant on
the  Board  in  accordance  with  the  following  vesting  schedule:
                             Vesting  Date     Number  of  Shares
                             -------------     ------------------
                  1.     January  1,  2001
                  2.     January  1,  2002
                  3.     January  1,  2003
                  4.     January  1,  2004
                  5.     January  1,  2005

          Section 3.     Termination of Service. If the Participant's service on
          ---------      ----------------------
the  Board  is  terminated  by  reason  of  Retirement, Disability or Death, all
unvested  shares  of  Restricted  Stock  shall  become  immediately  vested  and
nonforfeitable.  If  the Participant's service on the Board is terminated by the
Company  without Cause prior to any applicable vesting date, two-thirds (2/3) of
the  remaining  unvested  shares  of  Restricted  Stock shall become immediately
vested  and nonforfeitable, and one-third (1/3) of the remaining unvested shares
shall  be  forfeited  to the Company (in each case rounded upward or downward to
the nearest whole share, as applicable).  If the Participant is nominated but is
not  reelected  as a member of the Board by the shareholders of the Company, the
restrictions  imposed  on  any  unvested  portion  of the Restricted stock shall
immediately  lapse.  If the Participant's service on the Board is terminated for
any  reason  other  than as provided above in this Section 3 (including, without
limitation,  voluntary  termination  by  the  Participant  or termination by the
Company  for  Cause) prior to any applicable vesting date, the Participant shall
forfeit  his  interest  in  all  shares of Restricted Stock that have not become
vested  as  of the date of termination.  Any shares of Restricted Stock that are
forfeited  by the Participant hereunder shall be returned and transferred to the
Company  or  the  Plan  Trust, as determined by the Company, and the Participant
shall  cease  for all purposes to be a shareholder of such shares as of the date
of  termination  of  service.
          Section  4.     Change  of  Control.  All  shares  of Restricted Stock
          ----------      -------------------
shall become fully and immediately vested and nonforfeitable upon the occurrence
of  a  Change  of  Control of the Company prior to any scheduled vesting date as
provided  in  Section  2  hereof,  provided  that  the  Participant  remains  an
Independent  Director  of  the  Company  on  the  date of the Change in Control.

<PAGE>
          Section  5.     Rights  as  a  Shareholder.  Subject  to the otherwise
          ----------      --------------------------
applicable provisions of the Plan and this Award Agreement, the Participant will
have  all  rights  of  a  shareholder with respect to shares of Restricted Stock
granted to the Participant hereunder, including the right to vote the shares and
receive all dividends and other distributions paid or made with respect thereto.
          Section  6.     Restrictions  on Transfer.  Neither this Award nor any
          ----------      -------------------------
shares  of  the  Restricted  Stock  covered  hereby  may  be  sold,  assigned,
transferred,  encumbered,  hypothecated or pledged by the Participant, otherwise
than  to  the  Company,  unless  as  of  the  date of any such sale, assignment,
transfer,  encumbrance, hypothecation or pledge, such shares of Restricted Stock
to  be  thus  disposed  of  have  become  vested  in  accordance with this Award
Agreement.  The  certificate  or  certificates  representing  shares  delivered
pursuant to the Award shall bear a legend referring to the nontransferability or
assignability of such shares pursuant to this Section, and a stop-transfer order
against  such certificate or certificates will be placed by the Company with its
transfer  agents and registrars.  At the discretion of the Committee, in lieu of
issuing  a  stock  certificate to the Participant, the Company or its designated
agent  may  hold the shares of Restricted Stock in escrow during the period such
shares  remain  subject  to  the  vesting  restrictions  and  other restrictions
provided  hereunder.
          Section  7.     Award  Subject to Plan.  This Award and the Restricted
          ----------      ----------------------
Stock  acquired  hereunder  are subject to the Plan, the terms and provisions of
which, as it may be amended from time to time, are hereby incorporated herein by
reference.  In  the  event of a conflict between any term or provision contained
herein  and  a  term  or  provision  of  the  Plan  will  govern  and  prevail.
          Section 8.     Section 83(b) Election.  The Participant shall promptly
          ---------      ----------------------
(and  not  later  than  30  days  of  the date hereof) notify the Company if the
Participant  makes an election under section 83(b) of the Internal Revenue Code.
          Section  9.     Investment  Representation.  Upon  acquisition  of
          ----------      --------------------------
Restricted  Stock  under  the  Plan  at  a  time  when  there is not in effect a
registration  statement  under the Securities Act of 1933 relating to the shares
of  Common  Stock, the Participant hereby represents and warrants, and by virtue
of  such  acquisition  shall  be deemed to represent and warrant, to the Company
that  the  shares  of  Restricted Stock shall be acquired for investment and not
with  a  view to the distribution thereof, and not with any present intention of
distributing  the  same, and the Participant shall provide the Company with such
further  representations  and  warranties as the Company may require in order to
ensure  compliance  with  applicable  federal and state securities, blue sky and
other  laws.  No  shares  of Restricted Stock shall be acquired unless and until
the  Company  and/or  the  Participant  shall  have complied with all applicable
federal or state registration, listing and/or qualification requirements and all
other  requirements  of  law  or of any regulatory agencies having jurisdiction,
unless  the  Committee  has  received  evidence  satisfactory  to  it  that  the
Participant  may  acquire such shares pursuant to an exemption from registration
under  the  applicable securities laws.  Any determination in this connection by
the Committee shall be final, binding, and conclusive.  The Company reserves the
right  to  legend any certificate for shares of Common Stock, conditioning sales
of such shares upon compliance with applicable federal and state securities laws
and  regulations.
          Section 10.     Changes in Common Stock.  Any right of the Participant
          ----------      -----------------------
or  the  Company hereunder with respect to the Restricted Stock shall also apply
to any other shares of stock of the Company which such Restricted Stock has been
exchanged  or  converted into, or which were issued in respect thereof, pursuant
to  any  recapitalization or other event referred to in Section 3.2 of the Plan,
as  determined  by  the  Committee  in  accordance  with  the  Plan.
          Section  11.     No Right of Service.  Nothing in this Award Agreement
          -----------      -------------------
shall  confer  upon  the  Participant  any  right  to continue as an Independent
Director  of  the  Company  or  to  interfere  in  any

<PAGE>
way  with  the  right  of  the  Company  or  the  shareholders of the Company to
terminate  the  Participant's  service  on  the  Board  at  any  time.
          Section  12.     Notices.  Any  notice  hereunder  by  the Participant
          -----------      -------
shall  be  given  to the Company in writing and such notice shall be deemed duly
given  only  upon  receipt  thereof  at the Company's office at One PMSC Center,
Blythewood,  South  Carolina, 29016, or at such other address as the Company may
designate  by notice to the President and General Counsel.  Any notice hereunder
by  the  Company  shall  be  given to the Participant in writing and such notice
shall  be  deemed  duly  given  only upon receipt thereof at such address as the
Participant  may  have  on  file  with  the  Company.
          Section  13.     Construction.  The  Committee  shall  have  the
          -----------      ------------
discretionary  authority  for  the interpretation and construction of this Award
Agreement,  as  and  in  the  manner  set  forth  in  Section  4.2  of the Plan.
          Section  14.     Governing  Law.  This  Award  Agreement  shall  be
          -----------      --------------
construed  and  enforced  in  accordance  with  the  laws  of the State of South
Carolina,  without  giving  effect  to  the  choice  of  law principles thereof.
                        POLICY  MANAGEMENT  SYSTEMS  CORPORATION

                        By:_____________________________________
                           Name:  Stephen  G.  Morrison
                           Title:    Executive  Vice  President,  Secretary  &
                                     General  Counsel

                        PARTICIPANT

                        Name:6
     6
10697v7

10697v7
                  FIRST  AMENDMENT  TO  CREDIT  AGREEMENT

     This  Amendment, dated as of November 5, 1999 (this "Amendment") is entered
into  by  and  among  Policy  Management  Systems  Corporation, a South Carolina
corporation  (the  "Company"),  the  financial  institutions  parties  to  this
Agreement  (collectively,  the  "Banks";  individually,  a  "Bank")  and Bank of
America,  N.A.  (formerly  known  as  Bank of America National Trust and Savings
Association),  as  Agent  (the  "Agent").

                                 RECITALS
                                 --------

     The  Company,  the  Agent  and  the Banks are parties to a Credit Agreement
dated  as of August 8, 1997 (the "Credit Agreement") pursuant to which the Banks
extended a revolving facility.  Capitalized terms used and not otherwise defined
or  amended  in  this Amendment shall have the meanings respectively assigned to
them  in  the  Credit  Agreement.

     The  Company  has  requested  that the Banks modify the Credit Agreement to
take  into  account  certain  restriction  changes  along  with  certain  other
modifications. In order to induce the Banks to agree to the foregoing, the Banks
have  requested,  and  the  Company  has  agreed,  that the Company will provide
certain  information,  pay  an amendment fee and modify certain other covenants.
The  Company  has requested that the Banks enter into this Amendment in order to
approve  and reflect the foregoing, and the Banks have agreed to do so, all upon
the  terms  and  provisions and subject to the conditions hereinafter set forth.

                                  AGREEMENT
                                  ---------

     In  consideration  of  the foregoing and the mutual covenants and agreement
hereinafter  set  forth,  the  parties  hereto  mutually  agree  as  follows:

A.     AMENDMENTS
       ----------

1.     Amendment  of  Section  1.1.
--     ---------------------------

     (a)     A  new  definition  of  "Term  Loan"  is  hereby  added as follows:

     "Term  Loan" means that certain term loan in the amount of $70,000,000 made
to  the  Borrower  by  the  Banks
<PAGE>
party  to  the  Term  Loan  Agreement  dated  November  5,  1999."

     (b)     The  definition  of  "Consolidated  Tangible  Net  Worth" is hereby
amended  by  deleting  the  text  in  subclause "(i)" before the word "less" and
substituting  the  words  "Total  Shareholders'  Equity"  therefore.

2.     Amendment  to Section 2.1.  Section 2.1 is hereby amended by deleting the
--     --------------------------
amount  "$15,000,000"  and  replacing  it  with  the  amount  "$5,000,000".
3.     Amendment  to  Section  2.4(a).  Section  2.4(a)  is  hereby  amended  by
--     ------------------------------
deleting  the amount "$15,000,000" and replacing it with the amount "$5,000,000"
--
throughout  Section  2.4(a).
4.     Amendment  to  Section 2.11.  Section 2.11 is hereby amended and restated
--     ---------------------------
as  follows:
     (a)     The  Commitments  shall  terminate  on the Termination Date and any
Loans then due and outstanding (together with accrued interest thereon) shall be
due  and  payable  on  such  date.

     (b)     If  the  Borrower shall issue for cash any additional equity (other
than  in  connection  with  the  exercise  of options, the issuance of equity in
connection  with  employee  benefit  plans, or a contribution to the Borrower in
connection  with a vendor agreement to fund a specific development and marketing
effort  or  to  fund  one  or more specific acquisitions set forth in the vendor
agreement  or  a  technology  transfer  agreement)  or  incur Debt for cash, the
Borrower  shall  promptly notify the Agent of the estimated net proceeds of such
issuance  to  be received by the Borrower.  Promptly upon, and in no event later
than  three Business Days after receipt by the Borrower of the net cash proceeds
of such issuance, the Borrower shall prepay the Term Loan in an aggregate amount
equal to the amount of net proceeds until the Term Loan shall be repaid in full.

5.     Amendment  of  Section  5.12.  Section  5.12  of  the Credit Agreement is
--     ----------------------------
hereby  amended  by  replacing  the  amount  "$80,000,000"  with  the  amount
--
"$126,718,000"  and  replacing the date "January 1, 1997" with the date "January
--
1,  1999".
6.
--
<PAGE>
------
Amendment to Section 5.10(g).  Section 5.10(g) of the Credit Agreement is hereby
----------------------------
amended  by  deleting  the  percentage  "10%"  and  substituting "35%" therefor.
7.     Amendment  to  Section  5.13.  Section  5.13  of  the Credit Agreement is
--     ----------------------------
hereby  amended  by  adding  "or  the  Term Loan" after the words "the Loans" in
--
subsection  "(x)"  of  Section  5.13  and  by  adding  a  new  "(w)" as follows:
--
     "(w)     Outstandings  in the amount of $30,000,000 under a promissory note
in  favor  of  First  Union  National  Bank  payable  on  November  5,  1999."
8.     Addition  of  New  Section  5.17.  A  new Section 5.17 is hereby added as
--     --------------------------------
follows:
--
     "5.17       Limitation  on  Non-Cash  Charges.  The Borrower will not incur
                 ---------------------------------
non-cash  charges that would exceed $50,000,000 in the aggregate with respect to
the  Borrower  and its Consolidated Subsidiaries from and after November 1, 1999
other  than (i) depreciation and amortization expensed in the ordinary course of
business  determined in accordance with generally accepted accounting principles
excluding  a one-time acceleration of amortization and depreciation expense; and
(ii)  any  acquisition related charges of intangibles within one year of the end
of the fiscal quarter in which the acquisition occurred determined in accordance
with  generally  accepted  accounting  principles."

B.     REPRESENTATIONS  AND  WARRANTIES
       --------------------------------

     The  Company  hereby  represents  and warrants to the Agent and Banks that:

     1.     After giving effect to this Amendment, no Event of Default specified
in  the Credit Agreement and no event which with notice or lapse of time or both
would  become  such  an  Event  of  Default  has  occurred  and  is  continuing;

     2.     The  representations  and  warranties of the Company pursuant to the
Credit  Agreement  are true on and as of the date hereof as if made on and as of
said  date;  and

     3.     The  making  and  performance  by the Company of this Amendment have
been  duly  authorized  by  all  corporate  action.

<PAGE>
C.     CONDITIONS  PRECEDENT
       ---------------------

     This  Amendment will become effective as of October 29, 1999 upon execution
by  the  Required  Banks provided that the Agent shall have received in form and
substance  satisfactory  to  the  Agent  all  of  the  following:

     1.     A  copy  of  a  resolution  passed  by the Board of Directors of the
Company,  certified by the Secretary or an Assistant Secretary of the Company as
being  in  full  force and effect on the date hereof, authorizing the execution,
delivery  and  performance  of  the  Credit  Agreement  as  hereby  amended.

     2.     A  certificate of incumbency certifying the names of the officers of
the Company authorized to sign this Amendment, together with the true signatures
of  such  officers.

     3.     Executed  counterparts  of  this  Amendment.

     4.     Borrower shall have paid the Agent for the account of the consenting
Banks an amendment fee equal to 15 basis points payable to the Banks on November
5,  1999  in  accordance  with  their  Pro  Rata  Share.

D.     MISCELLANEOUS
       -------------

     1.     This  Amendment may be signed in any number of counterparts, each of
which  shall  be  an original, with same effect as if the signatures thereto and
hereto  were  upon  the  same  instrument.

     2.     Except  as  herein  specifically  amended,  all terms, covenants and
provisions  of  the  Credit  Agreement shall remain in full force and effect and
shall  be  performed by the parties hereto according to its terms and provisions
and  all  references  therein  or  in the Exhibits shall henceforth refer to the
Credit  Agreement  as  amended  by  this  Amendment.

     3.     This Amendment shall be governed by and construed in accordance with
the  laws  of  the  State  of  New  York.

<PAGE>
     IN  WITNESS  WHEREOF,  the  parties hereto have executed and delivered this
Amendment  as  of  the  date  first  written.

POLICY  MANAGEMENT  SYSTEMS
CORPORATION

By:_/S/  Stephen  G.  Morrison
    --------------------------
Title:  Executive  Vice  President
        --------------------------
        And  General  Counsel
        ---------------------

BANK  OF  AMERICA,  N.A.

By:/S/  Michael  J.  McKenney
   --------------------------
Title:   Managing  Director
       --------------------

WACHOVIA  BANK,  N.A.

By:/S/Donald  E.  Sellers,  Jr.
   ----------------------------
Title:  Vice  President
       ----------------

FIRST  UNION  NATIONAL  BANK

By:     /S/Daniel  Amaker
        -----------------
Title:     Vice  President
           ---------------

DEUTSCHE  BANK  AG,  NEW  YORK
BRANCH  AND/OR  CAYMAN  ISLANDS
BRANCH

By:  /S/  Susan  M.  O'Connor
     ------------------------
Title:     Director
           --------

By:  /S/  Susan  L.  Pearson
     -----------------------
Title:     Director
           --------

<PAGE>

DAI-ICHI  KANGYO  BANK,  LTD.

By:     /S/  Nelson  Chang
        ------------------
Title:  Assistant  Vice  President
        --------------------------

THE  FUJI  BANK,  LIMITED

By:     /S/  Raymond  Ventura
        ---------------------
Title:Vice  President  &  Manager
      ---------------------------

ACKNOWLEDGED  AND  AGREED:

POLICY  MANAGEMENT  SYSTEMS
  CORPORATION
CYBERTEK  CORPORATION
PMSC  LIMITED
CYBERTEK  SOLUTIONS,  L.P.
By:  POLICY  MANAGEMENT
SYSTEMS  CORPORATION;
Its  General  Partner
THE  LEVERAGE  GROUP

By:  /S/  Stephen  G.  Morrison
     --------------------------
Title:     Secretary
           ---------

ACKNOWLEDGED  AND  AGREED:

POLICY  MANAGEMENT  SYSTEMS
  INVESTMENTS,  INC.

By:  /S/  Elizabeth  Powers
   ------------------------
Title:     President
           ---------

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