Document:

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Shareholder Loan

1. This note documents a loan arrangement between Inforte Corporation and
   Stephen Mack, in effect as of December 31, 1998.

2. Inforte agrees to loan Steve $106,191.87 on December 31, 1998.

3. The term of the loan is indefinite, and the loan can be repaid at any time.
   Most likely, the loan will be repaid on or prior to the IPO date, but this is
   not required.

4. There are no interest payments during the life of the loan; the repayment
   amount will include all interest that accrues while the loan is outstanding.

5. The interest rate on this loan is 7.75%, the current prime rate.  Interest
   will accrue annually.

6. The formula below is an example of how accrued interest will be calculated.
   Assume that the loan is repaid on June 30, 2000.

        106,191.87 * (1 + 0.0775) /\ (547 / 365.25) = 118,751.62

        where:
        106,191.87 = the loan principal
        0.0775 = the interest rate, 7.75% in decimal form
        547 = the number of days from December 31, 1998 to June 30, 2000
        365.25 = the average number of days in a year
        118,751.62 = the repayment amount in this example

7. For book and tax purposes, Inforte will recognize interest income from this
   loan each month. Since interest accrues annually, the monthly interest will
   be the same each month within a given calendar year. The calculations below
   show the monthly interest for the next 5 years (assuming the loan remains
   outstanding).

        Year             Principal   Annual Interest  Monthly Interest
        1999            106,191.87      8,229.87          685.82
        2000            114,421.74      8,867.68          738.97
        2001            123,289.42      9,554.93          796.24
        2002            132,844.36     10,295.44          857.95
        2003            143,139.79     11,093.33          924.44

8. The purpose of this loan is to allow Steve to exercise all existing option
   grants.  Steve has two options grants, both of which are fully vested:

        Grant Date       Options    Exercise Price  Amount to Exercise
        10/26/94        1,000,000       $0.02           $20,000.00
        7/31/96         1,850,000       $0.05161        $95,483.87

        Total           2,850,000                      $115,483.87

9. Inforte currently owes Steve $9,292.00 from an outstanding loan that Steve
   made to Inforte. Subtracting this amount from the total amount to exercise
   reduces Steve's obligation to Inforte to $106,191.87 (115,483.87 - 9,292.00 =
   106,191.87). This is the loan amount. Thus, three separate transactions will
   occur: 1) Inforte repays its $9,292.00 loan from Steve; 2)
<PAGE>

    Inforte loans $106,191.87 to Steve; 2) Steve pays $115,483.87 to Inforte to
    exercise 2,850,000 options. No money will actually change hands as all of
    the cash amounts net to 0.

10. The following transaction will occur on Inforte's books:

        Account                                     Dr           Cr
        1006001 AR-Employee                     106,191.87
        1036002 Loans from Shareholders            9292.00
                1086001 Equity-Stock                         115,483.87

11. Steve shall have the discretion to repay the loan with cash or by selling a
    portion of his stock to Inforte at the then current fair market value.
    Inforte shall not be obligated to purchase more stock from Steve than would
    be necessary to repay the then current loan balance.

12. By signing below, Steve and Inforte agree to all points in this document.

/s/ Stephen Mack                        /s/ Nick Padgett
_____________________________           _____________________________
Stephen Mack                            Nick Padgett
                                        Chief Financial Officer
                                        Inforte Corporation<PAGE>

                                                                   EXHIBIT 10.50

                              EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (the "Agreement") is made and entered into
effective as of the 13th day of September, 1999 (the "Effective Date") by and
between System Software Associates, Inc., a Delaware corporation (the
"Employer"), and Robert R. Carpenter (the "Executive").

                                    RECITALS
                                    --------

     A. The Employer desires that the Executive provide services for the benefit
of the Employer and its affiliates and the Executive desires to accept such
employment with the Employer.

     B. The Employer and the Executive acknowledge that the Executive will be a
member of the senior management team of the Employer and, as such, will
participate in creating and implementing the Employer's business plan.

     C. In the course of employment with the Employer, the Executive will have
access to certain confidential information that relates to or will relate to the
business of the Employer and its affiliates.

     D. The Employer desires that any such information not be disclosed to other
parties or otherwise used for unauthorized purposes.

     NOW, THEREFORE, in consideration of the above premises and the following
mutual covenants and conditions, the parties agree as follows:

     1. Employment. The Employer shall employ the Executive beginning on the
Effective Date. On September 15, 1999, the Employee shall become the Chief
Executive Officer. In addition to the foregoing, the Employer covenants and
agrees that, as soon as reasonably practicable on or after September 15, 1999,
the Executive will be elected as a Director of the Employer and as Chairman of
the Board of Directors (the "Board"). The Executive hereby accepts such
employment on the following terms and conditions.

     2. Duties. The Executive shall work for the Employer in a full-time
capacity. The Executive shall have the duties, responsibilities, powers, and
authority customarily associated with the position of Chief Executive Officer
and Chairman of the Board, which duties shall include, but not be limited to,
responsibility for all field-related activities on a worldwide basis, including
all sales, marketing, services and other relationships, as well as
responsibility for the overall financial operations of the Employer and selected
research and development activities of the Employer. The Executive shall report
to, and follow the direction of the Board. In addition to, or in lieu of, the
foregoing, the Executive also shall perform such other and unrelated services

<PAGE>

and duties as may be assigned to him from time to time by the Board consistent
with his position as Chairman of the Board and Chief Executive Officer.  The
Executive shall diligently, competently, and faithfully perform all duties, and
shall devote his entire business time, energy, attention, and skill to the
performance of duties for the Employer or its affiliates and will use his best
efforts to promote the interests of the Employer.  It shall not be considered a
violation of the foregoing for the Executive (i) to serve on corporate,
industry, civic, religious, or charitable boards or committees, so long as such
activities do not significantly interfere with the performance of the
Executive's responsibilities as an employee of the Employer in accordance with
this Agreement, or (ii) to manage his personal investments or financial affairs.

     3. Executive Loyalty. The Executive shall devote all of his time,
attention, knowledge, and skill solely and exclusively to the business and
interests of the Employer, and the Employer shall be entitled to all benefits
and profits arising from or incident to any and all work, services, and advice
of the Executive. The Executive expressly agrees that during the term of this
Agreement, he shall not engage, directly or indirectly, as a partner, officer,
director, stockholder, advisor, agent, employee, or in any other form or
capacity, in any other business similar to that of the Employer. The foregoing
notwithstanding, nothing herein contained shall be deemed to prevent the
Executive from investing his money in the capital stock or other securities of
any corporation whose stock or securities are publicly-owned or are regularly
traded on any public exchange, nor shall anything herein contained be deemed to
prevent the Executive from investing his money in real estate, or to otherwise
manage his personal investments and financial affairs.

     4. Term of Employment. Unless sooner terminated as hereinafter provided,
this Agreement shall be entered into for the period commencing on the Effective
Date and ending on September 12, 2003.

     5. Compensation.
     --  ------------

          A. Salary. The Employer shall pay the Executive an annual salary of
$500,000, payable in substantially equal installments in accordance with the
Employer's payroll policy from time to time in effect. The Executive's salary
shall be subject to any payroll or other deductions as may be required to be
made pursuant to law, government order, or by agreement with, or consent of, the
Executive.

          B. Guaranteed Bonus. The Employer shall pay the Executive the sum of
$600,000 within fifteen (15) business days of the execution of this Agreement.
If the Executive is terminated for "Cause," as defined in Paragraph 7C, or
terminates his employment for other than "Good Reason," as defined in Paragraph
7D, the Executive shall return to the Employer an amount equal to $320,000,
multiplied by a fraction, with the numerator being equal to six (6) less the
number of full calendar months that the Executive has been employed by the
Employer, and the denominator being equal to six (6).

          C.  Fiscal Year 2000 Bonus.  For the fiscal year ending October 31,
2000, the Executive shall participate in a bonus program, which program shall
provide the Executive with

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<PAGE>

an opportunity to achieve a targeted bonus of up to $1,000,000. The Executive
shall be entitled to receive fifty percent (50%) of the targeted bonus of
$1,000,000, or $500,000, if the Employer attains a positive Operating Income as
reflected in the Employer's audited financial statements for such fiscal year
(prepared in accordance with the current accounting practices of the Employer).
If the Operating Income of the Employer is at least $1.00 per share based on the
number of shares outstanding as of the date of this Agreement without giving
effect to the options granted hereunder (Operating Income equal to 12.5 million
dollars), the Executive shall receive an additional $500,000, so that, in the
aggregate, his fiscal year 2000 bonus shall be $1,000,000. If the Operating
Income of the Employer is greater than $0 and less than $1.00 per share, the
Executive shall receive a bonus of $5,000 for each $.01 per share (based on the
number of shares outstanding as of the date of this Agreement without giving
effect to the options granted hereunder) in Operating Income. Any bonus earned
hereunder shall be payable on or before December 31, 2000, or, if later, within
ten (10) days of the completion of the audited financial statements for fiscal
year 2000, but in no event later than January 15, 2001 based on the Employer's
year-end unaudited financial statements (if audited financial statements are
unavailable at that time). In the event the number of shares of the Employer's
common stock outstanding as of the date hereof is increased or decreased, the
formula in this Paragraph 5C shall be adjusted proportionately.

          D.  Incentive Bonus.  For all fiscal years subsequent to the fiscal
year ending October 31, 2000, the Executive shall participate in an annual bonus
program, which program shall provide the Executive with an opportunity to
achieve a targeted annual bonus of up to $500,000. The actual terms and
conditions of the annual bonus program shall be established by the Employer,
with input from the Executive, shall be memorialized in a written document to be
prepared by the Employer and which will be incorporated herein by reference, and
will provide for the payment of an annual bonus hereunder if the Employer
achieves specified company-wide objectives and if the Executive achieves
specified personal management objectives. All such objectives shall be agreed
upon by the Executive and the Board prior to the beginning of each fiscal year
of the Employer. Any bonus earned hereunder shall be payable no later than sixty
(60) days following the end of the Employer's fiscal year in which the bonus is
earned.

          E.  Stock Options.  Effective on the date hereof, the Employer shall
grant the Executive an option to purchase one million (1,000,000) shares of the
common stock of the Employer. Fifty thousand (50,000) of such shares shall be
granted in accordance with and pursuant to the terms of the Employer's Long-Term
Incentive Plan. The grant of such stock option has been memorialized in the
Option Agreement attached hereto as Exhibit A. Nine hundred fifty thousand
(950,000) of such shares shall be granted in accordance with and pursuant to the
terms of the Option Agreements attached hereto as Exhibits B and C.

          F.  Other Benefits.  During the term of this Agreement, the Employer
shall:

               (1) include the Executive in any life insurance (including, but
          not limited to, a term life insurance policy for the Executive, upon
          satisfaction of any applicable physical examination, with a death
          benefit of $3,000,000 and with the beneficiar(ies) to be designated by
          the Executive), disability insurance (including,

                                       3

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          but not limited to, a supplemental individual disability policy with
          monthly disability payments of $10,000 per month), medical, dental or
          health insurance, vacation of twenty-five (25) days per year, savings,
          pension and retirement plans and other benefit plans or programs
          (including, if applicable, any excess benefit or supplemental
          executive retirement plans) maintained by the Employer for the benefit
          of its executives; and

               (2) include the Executive in such perquisites as the Employer may
          establish from time to time that are commensurate with his position
          and at least comparable to those received by other executives of the
          Employer.

     6.  Expenses.  The Employer shall reimburse the Executive for all
reasonable and approved business expenses, provided the Executive submits paid
receipts or other documentation acceptable to the Employer and as required by
the Internal Revenue Service to qualify as ordinary and necessary business
expenses under the Internal Revenue Code of 1986, as amended (the "Code").

     7.  Termination.  Notwithstanding anything in Paragraph 4 of this Agreement
to the contrary, the Executive's services shall terminate upon the first to
occur of the following events:

          A.  At the end of the term of this Agreement.

          B.  Upon the Executive's date of death or the date the Executive is
given written notice that he has been determined to be disabled by the Employer.
For purposes of this Agreement, the Executive shall be deemed to be disabled if
the Executive is absent from his duties with the Employer on a full-time basis
for one-hundred eighty (180) consecutive calendar days, due to mental or
physical illness. A termination of the Executive's employment by the Employer
for disability shall be communicated to the Executive by written notice and
shall be effective on the tenth (10th) calendar day after receipt of such notice
by the Executive, unless the Executive returns to full-time performance of his
duties before such tenth (10th) calendar day.

          C.  On the date the Employer provides the Executive with written
notice that he is being terminated for "Cause." For purposes of this Agreement,
the Executive shall be deemed terminated for Cause if the Employer terminates
the Executive after the Executive:

               (1) shall have been indicted (or the equivalent thereof) for any
          felony including, but not limited to, a felony involving fraud, theft,
          misappropriation, dishonesty, or embezzlement;

               (2) shall have committed intentional acts of gross misconduct
          that materially impair the goodwill or business of the Employer or
          cause material damage to its property, goodwill, or business; or

               (3) shall have willfully refused to, or willfully failed to,
          perform his material duties hereunder, provided, however, that no
          termination under this

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<PAGE>

          subparagraph (3) shall be effective unless the Executive does not cure
          such refusal or failure to the Employer's satisfaction as soon as
          practicable after the Employer gives the Executive written notice
          identifying such refusal or failure (and, in any event, within thirty
          (30) calendar days after receipt of such written notice).

No act or failure to act on the part of the Executive shall be considered
"willful" unless it is done, or omitted to be done, by the Executive in bad
faith or without reasonable belief that his action or omission was in the best
interests of the Employer. A termination of the Executive's employment for Cause
shall be effected in accordance with the following procedures. The Employer
shall give the Executive written notice ("Notice of Termination for Cause") of
its intention to terminate the Executive's employment for Cause, setting forth
in reasonable detail the specific conduct of the Executive that it considers to
constitute Cause and the specific provision(s) of this Agreement on which it
relies, and stating the date, time and place of the Board Meeting for Cause. The
"Board Meeting for Cause" means a meeting of the Board at which the Executive's
termination for Cause will be considered, that takes place not less than ten
(10) and not more than twenty (20) business days after the Executive receives
the Notice of Termination for Cause. The Executive shall be given an
opportunity, together with counsel, to be heard at the Board Meeting for Cause.
The Executive's termination for Cause shall be effective when and if a
resolution is duly adopted at the Board Meeting for Cause by a majority vote of
the entire membership of the Board, stating that in the good faith opinion of
the Board, the Executive is guilty of the conduct described in the Notice of
Termination for Cause, and that such conduct constitutes Cause under this
Agreement.

          D.  On the date the Executive terminates his employment for "Good
Reason."  For purposes of this Agreement, "Good Reason" means:

               (1) the assignment to the Executive of any duties materially
          inconsistent in any respect with Paragraph 2 of this Agreement, or any
          other action by the Employer that results in a diminution in the
          Executive's position, authority, duties or responsibilities, other
          than an isolated, insubstantial and inadvertent action that is not
          taken in bad faith and is remedied by the Employer after receipt of
          notice thereof from the Executive;

               (2) any requirement by the Employer that the Executive's services
          be rendered primarily at a location or locations other than within the
          greater Chicago metropolitan area and for other than a de minimis
          period of time;

               (3) any breach of this Agreement by the Employer that is not
          remedied by the Employer within five (5) business days after receipt
          of notice thereof from the Executive, or as soon thereafter as may be
          commercially practicable;

               (4) any failure by the Employer to comply with any provision of
          Paragraph 5 of this Agreement, other than an isolated, insubstantial
          and inadvertent failure that is not taken in bad faith and is remedied
          by the Employer promptly after receipt of notice thereof from the
          Executive;

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<PAGE>

               (5) any purported termination of the Executive's employment by
          the Employer for a reason or in a manner not expressly permitted by
          this Agreement;

               (6) the resignation by the Executive following a "Change in
          Control." A "Change in Control" shall be deemed to occur on the
          earliest of (a) the acquisition by any entity, person, or group of
          beneficial ownership, as that term is defined in Rule 13d-3 under the
          Securities Exchange Act of 1934, of more than 50% of the outstanding
          capital stock of the Employer entitled to vote for the election of
          directors ("Voting Stock"); (b) the completion by any entity, person,
          or group (other than the Employer or a subsidiary of the Employer) of
          the purchase of more than 50% of the outstanding Voting Stock of the
          Employer; (c) the effective time of (1) a merger or consolidation of
          the Employer with one or more corporations as a result of which the
          holders of the outstanding Voting Stock of the Employer immediately
          prior to such merger hold less than 50% of the Voting Stock of the
          surviving or resulting corporation, or (2) a transfer of substantially
          all of the property or assets of the Employer other than to an entity
          of which the Employer owns at least 80% of the Voting Stock; and (d)
          the election to the Board, without the recommendation or approval of
          the incumbent Board, of directors constituting a majority of the
          number of directors of the Employer then in office;

               (7) the entry against the Employer of any material, adverse
          finding or judgment (either from a financial reputation or other
          business perspective), in connection with any lawsuit, arbitration,
          regulatory action or investigation by any governmental agency or body
          based on any alleged act, omission, cause or thing occurring prior to
          the date of this Agreement;

               (8) the failure of the Employer to register Shares to be issued
          under Section 6 of Exhibits B and C within six (6) months after this
          Agreement is executed; or

               (9) the failure by the Employer to make provision for, or to
          timely pay or deposit, any federal, state or local employment or other
          taxes.

A termination of employment by the Executive for Good Reason shall be
effectuated by giving the Employer written notice ("Notice of Termination for
Good Reason") of the termination within three (3) months of the event
constituting Good Reason, setting forth in reasonable detail the specific
conduct of the Employer that constitutes Good Reason and the specific provisions
of this Agreement on which Executive relies. In the event of a termination by
the Executive for Good Reason following a Change in Control, the Executive shall
provide the Employer with written notice within six (6) months of such Change in
Control that he has decided to terminate his employment. A termination of
employment by the Executive for Good Reason shall be effective on the fifth
(5th) business day following the date when the Notice of Termination for Good
Reason is given, unless the notice sets forth a later date (which date shall in
no event be later than thirty (30) business days after the notice is given).

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<PAGE>

          E.  On the date the Executive terminates his employment for any
reason, other than for the reason set forth in Paragraph 7D, provided that the
Executive shall give the Employer ninety (90) days written notice prior to such
date of his intention to terminate this Agreement.

          F.  On the date the Employer terminates the Executive's employment for
any reason, other than a reason set forth in Paragraph 7C, provided that the
Employer shall give the Executive ninety (90) days written notice prior to such
date of its intention to terminate this Agreement.

     8.  Compensation Upon Termination.

          A.  If the Executive's services are terminated pursuant to Paragraph
7A, 7B, 7C or 7E, the Executive shall be entitled to his salary through his
final date of active employment, plus any accrued but unused vacation pay. The
Executive also shall be entitled to any benefits mandated under the Consolidated
Omnibus Budget Reconciliation Act of 1985 (COBRA) or required under the terms of
any death, insurance, or retirement plan, program, or agreement provided by the
Employer and to which the Executive is a party or in which the Executive is a
participant, including, but not limited to, any short-term or long-term
disability plan or program, if applicable.

          B.  If the Executive's services are terminated pursuant to Paragraph
7D or 7F, the Executive shall be entitled to his salary through his final date
of active employment, plus any accrued but unused vacation pay. The Executive
also shall be entitled to the present value of his current base salary (as set
forth in Paragraph 5A) for a period of twenty-four (24) months, payable in a
single lump sum within thirty (30) calendar days of such termination (based upon
a five percent (5%) discount rate), provided he signs an agreement that releases
the Employer from actions, suits, claims, proceedings and demands related to the
period of employment and/or the termination of employment (other than for
compensation or indemnification provided under this Agreement). The Executive
also shall be entitled to any benefits mandated under the Consolidated Omnibus
Budget Reconciliation Act of 1985 (COBRA) or required under the terms of any
death, insurance, or retirement plan, program, or agreement provided by the
Employer and to which the Executive is a party or in which the Executive is a
participant.

          C.  This Paragraph 8 shall not supersede or invalidate any severance
benefit agreement or other benefit plans to which the Executive is a party or in
which the Executive is a participant; provided, however, if a change in control
shall occur (as defined in Section 280G(b)(2)(a)(i) of the Code), and a
determination is made by legislation, regulation, ruling directed to the
Executive or the Employer, or court decision, that the aggregate amount of any
payment made to the Executive hereunder, or pursuant to any plan, program, or
policy of the Employer in connection with, on account of, or as a result of,
such change in control constitutes "excess parachute payments" under the Code
that are subject to the excise tax provisions of Section 4999 of the Code, or
any successor sections thereof, the Executive shall be entitled to receive from
the Employer, in addition to any other amounts payable hereunder, an additional
payment (a "Gross-Up Payment") in an amount such that after payment by the
Executive of all

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taxes (including any interest or penalties imposed with respect to such taxes),
including, without limitation, any income taxes (and any interest and penalties
imposed thereon) and any excise tax imposed upon the Gross-Up Payment, the
Executive retains an amount of the Gross-Up Payment equal to the excise tax
imposed. All determinations required to be made under this Paragraph 8,
including whether and when a Gross-Up Payment is required and the amount of such
Gross-Up Payment and the assumptions to be utilized in arriving at such
determination, shall be made by a certified public accounting firm designated by
the Employer and reasonably acceptable to the Executive which is one of the five
largest accounting firms in the United States (the "Accounting Firm"), which
shall provide detailed supporting calculations both to the Employer and the
Executive within fifteen (15) business days of the receipt of notice from the
Executive that there has been an excess parachute payment, or such earlier time
as is requested by the Employer. All fees and expenses of the Accounting Firm
shall be borne solely by the Employer. Any Gross-Up Payment, as determined
pursuant to this Paragraph 8 shall be paid by the Employer to the Executive
within five (5) business days of the receipt of the Accounting Firm's
determination. As a result of the uncertainty in the application of Section 4999
of the Code at the time of the initial determination by the Accounting Firm
hereunder, it is possible that Gross-Up Payments which will not have been made
by the Employer should have been made ("Underpayment") consistent with the
calculations required to be made hereunder. In the event that the Employer
exhausts its remedies hereunder and the Executive thereafter is required to make
a payment of any excise tax, the Accounting Firm shall determine the amount of
the Underpayment that has occurred and any such Underpayment shall be promptly
paid by the Employer to or for the benefit of the Executive. The Executive shall
notify the Employer in writing of any claim by the Internal Revenue Service
that, if successful, would require the payment by the Employer of the Gross-Up
Payment. Such notification shall be given as soon as practicable but no later
than ten (10) business days after the Executive is informed in writing of such
claim and shall apprise the Employer of the nature of such claim and the date on
which such claim is requested to be paid. The Executive shall not pay such claim
prior to the expiration of the thirty (30) day period following the date on
which he gives such notice to the Employer (or such shorter period ending on the
date that any payment of taxes with respect to such claim is due). If the
Employer notifies the Executive in writing prior to the expiration of such
period that it desires to contest such claim, the Executive shall:

          (1) give the Employer any information reasonably requested by the
     Employer relating to such claim;

          (2) take such action in connection with contesting such claim as the
     Employer shall reasonably request in writing from time to time, including,
     without limitation, accepting legal representation with respect to such
     claim by an attorney reasonably selected by the Employer;

          (3) cooperate with the Employer in good faith in order effectively to
     contest such claim; and

          (4) permit the Employer to participate in any proceedings relating to
    such claim;

                                       8

<PAGE>

provided, however, that the Employer shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest and shall indemnify and hold the Executive harmless, on an
after-tax basis, for any excise tax or income tax (including interest and
penalties with respect thereto) imposed as a result of such representation and
payment of costs and expenses. Without limitation on the foregoing provision of
this Paragraph 8C, the Employer shall control all proceedings taken in
connection with such contest and, at its sole option, may pursue or forego any
and all administrative appeals, proceedings, hearings and conferences with the
taxing authority in respect of such claim and may, at its sole option, either
direct the Executive to pay the tax claimed and sue for a refund or contest the
claim in any permissible manner, and the Executive agrees to prosecute such
contest to a determination before any administrative tribunal, in a court of
initial jurisdiction and in one or more appellate courts, as the Employer shall
determine. Notwithstanding anything herein to the contrary, if, after the
receipt by the Executive of an amount advanced by the Employer pursuant to this
Paragraph 8C, the Executive becomes entitled to receive any refund with respect
to such claim, the Executive shall (subject to the Employer's substantial
compliance with the requirements of this Paragraph 8C) promptly pay to the
Employer the amount of such refund (together with any interest paid or credited
thereon after taxes applicable thereto). If, after the receipt by the Executive
of an amount advanced by the Employer pursuant to Paragraph 8C, a determination
is made that the Executive shall not be entitled to any refund with respect to
such claim and the Employer does not notify the Executive in writing of its
intent to contest such denial of refund prior to the expiration of thirty (30)
days after such determination, then such advance shall be forgiven and shall not
be required to be repaid and the amount of such advance shall offset, to the
extent thereof, the amount of Gross-Up Payment required to be paid.

     9.  Protective Covenants.  The Executive acknowledges and agrees that
solely by virtue of his employment by, and relationship with, the Employer, he
has acquired and will continue to acquire "Confidential Information", as
hereinafter defined, and that, but for his association with the Employer, the
Executive will not have had access to said Confidential Information. In return
for the consideration described in this Agreement, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, and
as a condition precedent to the Employer entering into this Agreement, and as an
inducement to the Employer to do so, the Executive hereby represents, warrants,
and covenants as follows:

          A.  The Executive has executed and delivered this Agreement as his
free and voluntary act, after having determined that the provisions contained
herein are of a material benefit to him, and that the duties and obligations
imposed on him hereunder are fair and reasonable and will not prevent him from
earning a comparable livelihood following the termination of his employment with
the Employer;

          B.  The Executive has read and fully understands the terms and
conditions set forth herein, has had time to reflect on and consider the
benefits and consequences of entering into this Agreement, and has had the
opportunity to review the terms hereof with an attorney or other representative,
if he so chooses;

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<PAGE>

          C.  The execution and delivery of this Agreement by the Executive does
not conflict with, or result in a breach of or constitute a default under, any
agreement or contract, whether oral or written, to which the Executive is a
party or by which the Executive may be bound;

          D.  The Executive agrees that, during the time of his employment and
for a period of six (6) months after the termination of the Executive's
employment hereunder for any reason whatsoever or for no reason, whether
voluntary or involuntary, the Executive will not, except on behalf of the
Employer, solicit, on his own behalf or on behalf of any other person, the
services of any person who is an employee of the Employer, nor solicit any of
the Employer's employees to terminate employment with the Employer, provided,
however, the Executive may hire employees of the Employer who initiated contact
with the Executive and have announced their intent to terminate their employment
with the Employer;

          E.  The Executive agrees that both during his employment and
thereafter the Executive will not, for any reason whatsoever, use for himself or
disclose to any person not employed by the Employer any "Confidential
Information" of the Employer acquired by the Executive during his relationship
with the Employer. The Executive further agrees to use Confidential Information
solely for the purpose of performing duties with the Employer and further agrees
not to use Confidential Information for his own private use or commercial
purposes or in any way detrimental to the Employer. The Executive agrees that
"Confidential Information" includes but is not limited to: (1) any financial,
business, planning, operations, services, potential services, products,
potential products, technical information and/or know-how, formulas, production,
purchasing, marketing, sales, personnel, customer, broker, supplier, or other
information of the Employer; (2) any papers, data, records, processes, methods,
techniques, systems, models, samples, devices, equipment, compilations,
invoices, customer lists, or documents of the Employer; (3) any confidential
information or trade secrets of any third party provided to the Employer in
confidence or subject to other use or disclosure restrictions or limitations;
and (4) any other information, written, oral, or electronic, whether existing
now or at some time in the future, whether pertaining to current or future
developments, which pertains to the Employer's affairs or interests or with whom
or how the Employer does business. The Employer acknowledges and agrees that
Confidential Information does not include (1) information properly in the public
domain, or (2) information in the Executive's possession prior to the date of
his original employment with the Employer;

          F.  During and after the term of employment hereunder, the Executive
will not remove from the Employer's premises any documents, records, files,
notebooks, correspondence, computer printouts, computer programs, computer
software, price lists, microfilm, or other similar documents containing
Confidential Information, including copies thereof, whether prepared by him or
others, except as his duty shall require, and in such cases, will promptly
return such items to the Employer. Upon termination of his employment with the
Employer, all such items including summaries or copies thereof, then in the
Executive's possession, shall be returned to the Employer immediately;

                                      10

<PAGE>

          G.  The Executive recognizes and agrees that all ideas, inventions,
enhancements, plans, writings, and other developments or improvements (the
"Inventions") conceived by the Executive, alone or with others, during the term
of his employment, whether or not during working hours, that are within the
scope of the Employer's business operations or that relate to any of the
Employer's work or projects, are the sole and exclusive property of the
Employer. The Executive further agrees that (1) he will promptly disclose all
Inventions to the Employer and hereby assigns to the Employer all present and
future rights he has or may have in those Inventions, including without
limitation those relating to patent, copyright, trademark or trade secrets; and
(2) all of the Inventions eligible under the copyright laws are "work made for
hire." At the request of and without charge to the Employer, the Executive will
do all things deemed by the Employer to be reasonably necessary to perfect title
to the Inventions in the Employer and to assist in obtaining for the Employer
such patents, copyrights or other protection as may be provided under law and
desired by the Employer, including but not limited to executing and signing any
and all relevant applications, assignments or other instruments. Notwithstanding
the foregoing, pursuant to the Employee Patent Act, Illinois Public Act 83-493,
the Employer hereby notifies the Executive that the provisions of this Paragraph
9 shall not apply to any Inventions for which no equipment, supplies, facility
or trade secret information of the Employer was used and which were developed
entirely on the Executive's own time, unless (1) the Invention relates (i) to
the business of the Employer, or (ii) to actual or demonstrably anticipated
research or development of the Employer, or (2) the Invention results from any
work performed by the Executive for the Employer;

          H.  The Executive acknowledges and agrees that all customer lists,
supplier lists, and customer and supplier information, including, without
limitation, addresses and telephone numbers, are and shall remain the exclusive
property of the Employer, regardless of whether such information was developed,
purchased, acquired, or otherwise obtained by the Employer or the Executive. The
Executive agrees to furnish to the Employer on demand at any time during the
term of this Agreement, and upon termination of this Agreement, his complete
list of the correct names and places of business and telephone numbers of all of
its customers served by him, including all copies thereof wherever located. The
Executive further agrees to immediately notify the Employer of the name and
address of any new customer, and report all changes of a location of old
customers, so that upon the termination of this Agreement, the Employer will
have a complete list of the correct names and addresses of all of its customers
with which the Executive has had dealings. The Executive also agrees to furnish
to the Employer on demand at any time during the term of this Agreement, and
upon the termination of this Agreement, any other records, notes, computer
printouts, computer programs, computer software, price lists, microfilm, or any
other documents related to the Employer's business, including originals and
copies thereof; and

          I.  It is agreed that any breach or anticipated or threatened breach
of any of the Executive's covenants contained in this Paragraph 9 will result in
irreparable harm and continuing damages to the Employer and its business and
that the Employer's remedy at law for any such breach or anticipated or
threatened breach will be inadequate and, accordingly, in addition to any and
all other remedies that may be available to the Employer at law or in equity in
such event, any court of competent jurisdiction may issue a decree of specific
performance or

                                       11
<PAGE>

issue a temporary and permanent injunction, without the necessity of the
Employer posting bond or furnishing other security and without proving special
damages or irreparable injury, enjoining and restricting the breach, or
threatened breach, of any such covenant, including, but not limited to, any
injunction restraining the Executive from disclosing, in whole or part, any
Confidential Information. The Executive acknowledges the truthfulness of all
factual statements in this Agreement and agrees that he is estopped from and
will not make any factual statement in any proceeding that is contrary to this
Agreement or any part thereof.

     10.  Notices.  Any and all notices required in connection with this
Agreement shall be deemed adequately given only if in writing and (a) personally
delivered, or sent by first class, registered or certified mail, postage
prepaid, return receipt requested, or by recognized overnight courier, (b) sent
by facsimile, provided a hard copy is mailed on that date to the party for whom
such notices are intended, or (c) sent by other means at least as fast and
reliable as first class mail. A written notice shall be deemed to have been
given to the recipient party on the earlier of (a) the date it shall be
delivered to the address required by this Agreement; (b) the date delivery shall
have been refused at the address required by this Agreement; (c) with respect to
notices sent by mail or overnight courier, the date as of which the Postal
Service or overnight courier, as the case may be, shall have indicated such
notice to be undeliverable at the address required by this Agreement; or (d)
with respect to a facsimile, the date on which the facsimile is sent and receipt
of which is confirmed. Any and all notices referred to in this Agreement, or
which either party desires to give to the other, shall be addressed to his
residence in the case of the Executive, or to its principal office in the case
of the Employer.

     11.  Waiver of Breach.  A waiver by the Employer of a breach of any
provision of this Agreement by the Executive shall not operate or be construed
as a waiver or estoppel of any subsequent breach by the Executive. No waiver
shall be valid unless in writing and signed by an authorized officer of the
Employer.

     12.  Assignment.  The Executive acknowledges that the services to be
rendered by him are unique and personal. Accordingly, the Executive may not
assign any of his rights or delegate any of his duties or obligations under this
Agreement. The rights and obligations of the Employer under this Agreement shall
inure to the benefit of and shall be binding upon the successors and assigns of
the Employer .

     13.  Entire Agreement.  This Agreement sets forth the entire and final
agreement and understanding of the parties and contains all of the agreements
made between the parties with respect to the subject matter hereof. This
Agreement supersedes any and all other agreements, either oral or in writing,
between the parties hereto, with respect to the subject matter hereof. No change
or modification of this Agreement shall be valid unless in writing and signed by
the Employer and the Executive. If any provision of this Agreement shall be
found invalid or unenforceable for any reason, in whole or in part, then such
provision shall be deemed modified, restricted, or reformulated to the extent
and in the manner necessary to render the same valid and enforceable, or shall
be deemed excised from this Agreement, as the case may require, and this
Agreement shall be construed and enforced to the maximum extent permitted by
law, as if such provision had been originally incorporated herein as so
modified, restricted, or reformulated or as

                                       12
<PAGE>

if such provision had not been originally incorporated herein, as the case may
be. The parties further agree to seek a lawful substitute for any provision
found to be unlawful; provided, that, if the parties are unable to agree upon a
lawful substitute, the parties desire and request that a court or other
authority called upon to decide the enforceability of this Agreement modify
those restrictions in this Agreement that, once modified, will result in an
agreement that is enforceable to the maximum extent permitted by the law in
existence at the time of the requested enforcement.

     14.  Headings.  The headings in this Agreement are inserted for convenience
only and are not to be considered a construction of the provisions hereof.

     15.  Execution of Agreement.  This Agreement may be executed in several
counterparts, each of which shall be considered an original, but which when
taken together, shall constitute one agreement.

     16.  Recitals.  The recitals to this Agreement are incorporated herein as
an integral part hereof and shall be considered as substantive and not precatory
language.

     17.  Fees.  The Employer agrees to reimburse the Executive for any
reasonable attorneys' fees or other expenses incurred by the Executive in
connection with the negotiation, preparation and review of this Agreement.

     18.  Indemnification.  To the fullest extent permitted by law, the Employer
agrees to indemnify the Executive against, and to hold the Executive harmless
from any and all claims, lawsuits, losses, damages, assessments, penalties,
expenses, costs and liabilities of any kind or nature, including without
limitation, court costs and attorneys' fees, which the Executive may sustain
directly as a result of, or in connection with, the Employer's breach or
violation of any provision of this Agreement or any other act or omission by
Employer or its employees or any suit or other proceeding brought by a third
party (including but not limited to governmental or regulatory agencies or
bodies) in connection with the foregoing or in connection with any act or
omission of the Executive while he was employed or serves as an officer or
director of the Employer or any affiliate thereof, unless such claim, lawsuit,
loss, damage, assessment, penalty, expense, cost or liability is the result of
the Executive's gross negligence or willful misconduct.

                                       13
<PAGE>

     19.  Governing Law.  This Agreement shall be governed by, and construed in
accordance with, the laws of the State of Illinois, without reference to its
conflict of law provisions. Any and all disputes arising under this Agreement,
other than a dispute arising under Paragraph 9, initially shall be referred by
the parties hereto to non-binding mediation for resolution. If such mediation is
unsuccessful in resolving the dispute (or in the context of Paragraph 9 hereof),
any court action commenced to enforce this Agreement shall have as its sole and
exclusive venue the County of Cook, Illinois.

     IN WITNESS WHEREOF, the parties have set their signatures on the date first
written above.

EMPLOYER:                                 EXECUTIVE:

SYSTEM SOFTWARE ASSOCIATES,
INC.,

a Delaware corporation
                                                    /s/ Robert R. Carpenter
                                          --------------------------------------
                                                      Robert R. Carpenter

By:  /s/ William N. Weaver, Jr.
Its:  Director/Assistant Secretary

                                       14

<PAGE>

                                   EXHIBIT A
                                   ---------

                       SYSTEM SOFTWARE ASSOCIATES, INC.
                      NONSTATUTORY STOCK OPTION AGREEMENT

     THIS AGREEMENT is made effective this 13th day of September, 1999 between
System Software Associates, Inc., a Delaware corporation (the "Company"), and
Robert R. Carpenter (the "Optionee").

     WHEREAS, the Company desires to grant to the Optionee an option to purchase
shares of its common capital stock (the "Shares") under the Company's Long-Term
Incentive Plan (the "Plan"); and

     WHEREAS, the Company and the Optionee understand and agree that any terms
used herein have the same meanings as in the Plan (the Optionee being referred
to in the Plan as a "Participant").

     NOW, THEREFORE, in consideration of the following mutual covenants and for
other good and valuable consideration, the parties agree as follows:

1.  GRANT OF OPTION

     The Company grants to the Optionee the right and Option to purchase all or
     any part of an aggregate of 50,000 Shares (the "Option") on the terms and
     conditions and subject to all the limitations set forth herein and in the
     Plan, which is incorporated herein by reference.  The Optionee acknowledges
     receipt of a copy of the Plan and acknowledges that the definitive records
     pertaining to the grant of this Option, and exercises of rights hereunder,
     shall be retained by the Company.  The Option granted herein is intended to
     be a Nonstatutory Option as defined in the Plan.

2.  PURCHASE PRICE

     The purchase price of the Shares subject to the Option shall be Four
     Dollars ($4.00) per Share, the Fair Market Value of the Shares at the close
     of business on September 13, 1999.

3.  EXERCISE OF OPTION

     Subject to the Plan and this Agreement, the Option shall be exerciseable in
     its entirety effective immediately.  The Option shall expire on, and shall
     be exercised (if at all) prior to the first to occur of:

          (a)  September 12, 2009;

     (b)  Ninety (90) days after the date on which the Optionee shall cease, for
          any reason or cause whatsoever, and without regard to such reason or
          cause (except as set forth in

<PAGE>

          (c) and (d) below) to be an employee of, or consultant to, the Company
          or any affiliate or subsidiary thereof;

     (c)  The date the Optionee's employment is terminated, if it is terminated
          for "Cause" as that term is defined in the Optionee's Employment
          Agreement (the "Employment Agreement") with the Company made and
          entered into effective as of the 13th day of September, 1999; or

     (d)  Twelve months from the date the Optionee's employment is terminated,
          if it is terminated pursuant to Paragraph 7B of the Employment
          Agreement, in which case the Option, to the extent it is otherwise
          exerciseable on the date the Optionee's employment is terminated, may
          be exercised by the Optionee or his legal representative or estate
          within such twelve month period.

     Upon expiration of the Option without it having been duly exercised, the
     Option shall be and become null, void, and of no further effect.

4.  EXERCISE OF OPTION AND ISSUANCE OF STOCK

     The Option may be exercised in whole or in part (to the extent that it is
     exerciseable in accordance with its terms) by giving written notice (or any
     other approved form of notice) to the Company. Such written notice shall be
     signed by the person exercising the Option, shall state the number of
     Shares with respect to which the Option is being exercised, shall contain
     the warranty, if any, required under the Plan and shall specify a date
     (other than a Saturday, Sunday or legal holiday) not less than five (5) nor
     more than ten (10) days after the date of such written notice, as the date
     on which the Shares will be purchased, at the principal office of the
     Company during ordinary business hours, or at such other hour and place
     agreed upon by the Company and the person or persons exercising the Option,
     and shall otherwise comply with the terms and conditions of this Agreement
     and the Plan. On the date specified in such written notice (which date may
     be extended by the Company if any law or regulation requires the Company to
     take any action with respect to the Shares prior to the issuance thereof),
     the Company shall accept payment for the Shares and shall deliver to the
     Optionee an appropriate certificate or certificates for the Shares as to
     which the Option was exercised.

     The Option price of any Shares shall be payable at the time of exercise as
     determined by the Company in its sole discretion either:

     (a)  in cash, by certified check or bank check, or by wire transfer; or

     (b)  in whole shares of the Company's common stock, provided, however, that
          if such shares were acquired pursuant to an incentive stock option
          plan (as defined in Code Section 422) of the Company or Affiliate,
          then the applicable holding period requirements of said Section 422
          have been met with respect to such shares, and, provided further, that
          if the Optionee is subject to the reporting requirements of Section 16
          of the Securities Exchange Act of 1934, as amended from time to time,

                                       2

<PAGE>

          then, if (i) such shares were granted pursuant to an option, then such
          option must have been granted at least six (6) months prior to the
          exercise of the Option hereunder, and (ii) such shares were purchased
          other than through the grant and exercise of an option, such shares
          were owned by the Optionee for more than six (6) months prior to the
          exercise of the Option hereunder; or

     (c)  in any combination of (a) or (b) above.

     The fair market value of the stock to be applied toward the purchase price
     shall be determined as of the date of exercise of the Option in a manner
     consistent with the determination of fair market value with respect to the
     grant of an Option under the Plan.  Any certificate for shares of
     outstanding stock of the Company used to pay the purchase price shall be
     accompanied by a stock power duly endorsed in blank by the registered
     holder of the certificate, with signature guaranteed in the event the
     certificate shall also be accompanied by instructions from the Optionee to
     the Company's transfer agent with respect to disposition of the balance of
     the shares covered thereby.

     The Company shall pay all original issue taxes with respect to the issuance
     of Shares pursuant hereto and all other fees and expenses necessarily
     incurred by the Company in connection therewith.  The holder of this Option
     shall have the rights of a stockholder only with respect to those Shares
     covered by the Option which have been registered in the holder's name in
     the share register of the Company upon the due exercise of the Option.

5.  NON-ASSIGNABILITY

     This Option shall not be transferable by the Optionee and shall be
     exerciseable only by the Optionee, except as the Plan may otherwise
     provide.

6.  NOTICES

     Any notices required or permitted by the terms of this Agreement or the
     Plan shall be given by registered or certified mail, return receipt
     requested, addressed as follows:

     To the Company:   System Software Associates, Inc.
                       500 West Madison
                       Chicago, Illinois  60661
                       Attn:  Long-Term Incentive Plan Award Committee

     To the Optionee:  Robert R. Carpenter
                       c/o System Software Associates, Inc.
                       500 W. Madison St.
                       Chicago, IL  60661

                                       3

<PAGE>

     With a copy to:  David S. Barritt
                      Chapman and Cutler
                      111 W. Monroe St.
                      Chicago, IL  60603

     or to such other address or addresses of which notice in the same manner
     has previously been given.  Any such notice shall be deemed to have been
     given when mailed in accordance with the foregoing provisions.

7.  GOVERNING LAW

     This Agreement shall be construed and enforced in accordance with the laws
     of the State of  Illinois.

8.  BINDING EFFECT

     This Agreement shall (subject to the provisions of Section 5 hereof) be
     binding upon the heirs, executors, administrators, successors and assigns
     of the parties hereto.

     IN WITNESS WHEREOF, the Company and the Optionee have caused this Agreement
to be executed on their behalf, by their duly authorized representatives, all on
the day and year first above written.

                                           SYSTEM SOFTWARE ASSOCIATES, INC.

                                           By: /s/ William N. Weaver, Jr.
                                             ----------------------------

                                           Its: Director/Assistant Secretary
                                                ----------------------------

                                           OPTIONEE

                                           /s/ Robert R. Carpenter
                                           ---------------------------
                                           Robert R. Carpenter

                                       4

<PAGE>

                                   EXHIBIT B
                                   ---------

                       SYSTEM SOFTWARE ASSOCIATES, INC.
                      NONSTATUTORY STOCK OPTION AGREEMENT

     THIS AGREEMENT is made effective this 13th day of September, 1999 between
System Software Associates, Inc., a Delaware corporation (the "Company"), and
Robert R. Carpenter (the "Optionee").

     WHEREAS, in accordance with the terms of that certain Employment Agreement
(the "Employment Agreement") as executed by and between the Company and the
Optionee effective of even date herewith, the Company desires to grant to the
Optionee an option to purchase shares of its common capital stock (the
"Shares"); and

     WHEREAS, the grant hereunder shall not be under the Company's Long-Term
Incentive Plan.

     NOW, THEREFORE, in consideration of the following mutual covenants and for
other good and valuable consideration, the parties agree as follows:

1.   GRANT OF OPTION

     The Company grants to the Optionee the right and option to purchase all or
     any part of an aggregate of 750,000 Shares (the "Option") on the terms and
     conditions and subject to all the limitations set forth herein.  The
     Optionee acknowledges that the definitive records pertaining to the grant
     of this Option, and exercises of rights hereunder, shall be retained by the
     Company.  The Option granted herein is intended to be a nonstatutory
     option.

2.   PURCHASE PRICE

     The purchase price of the Shares subject to the Option shall be Four
     Dollars ($4.00) per Share, the fair market value of the Shares at the close
     of business on September 13, 1999.

3.   EXERCISE OF OPTION

     Subject to this Agreement, the Option shall be exerciseable as follows:
<PAGE>

<TABLE>
<CAPTION>
                                         EXERCISE PERIOD
                         Vesting                  Expiration
Number of Shares         Date                     Date
----------------         ------------------       ------------------
<C>                      <S>                      <C>
150,000                  September 13, 1999       September 12, 2009
150,000                  September 13, 2000       September 12, 2009
150,000                  September 13, 2001       September 12, 2009
150,000                  September 13, 2002       September 12, 2009
150,000                  September 13, 2003       September 12, 2009
</TABLE>

     Notwithstanding anything in this Paragraph 3 to the contrary, the Shares
     subject to the Option shall be exercisable, as described below, upon the
     following events (if such events occur sooner than the dates set forth
     above):

     (a)  Upon a "Change in Control," as such term is defined in Paragraph 7D(6)
          of the Employment Agreement, all Shares not then exercisable shall
          immediately become exerciseable and shall be exercisable in accordance
          with the terms of the Plan.

     (b)  (i)  Upon the first date that the closing sales price of the Common
          Stock as reported on the NASDAQ National Market System shall have been
          equal to or in excess of $7.00 per share, as adjusted for stock splits
          or stock dividends, for any sixty (60) Trading Days (as defined below)
          out of any consecutive ninety (90) calendar days during the period
          beginning on September 13, 1999 and ending on September 12, 2003 (the
          "Option Acceleration Period"), 300,000 Shares in the aggregate shall
          be exerciseable, whether or not they were previously exercisable in
          accordance with the Exercise Period set forth above.  Such adjustment
          to the Exercise Period shall occur only upon the initial attainment of
          such sixty-day share price during any ninety (90) consecutive calendar
          day period.  A "Trading Day" shall be defined as any day on which the
          principal national securities exchange or market quotation system on
          which the Common Stock is then listed or admitted for trading is open.

          (ii) Upon the first date that the closing sales price of the Common
          Stock as reported on the NASDAQ National Market System shall have been
          equal to or in excess of $15.00 per share, as adjusted for stock
          splits or stock dividends, for sixty (60) Trading Days out of any
          consecutive ninety (90) calendar days during the Option Acceleration
          Period, 450,000 Shares in the aggregate shall be exerciseable, whether
          or not they were previously exercisable in accordance with the
          Exercise

                                       2

<PAGE>

          Period set forth above. Such adjustment to the Exercise Period shall
          occur only upon the initial attainment of such sixty-day share price
          during any ninety (90) consecutive calendar day period.

          (iii)  Upon the first date that the closing sales price of the Common
          Stock as reported on the NASDAQ National Market Systems shall have
          been equal to or in excess of $20.00 per share, as adjusted for stock
          splits or stock dividends, for sixty (60) Trading Days out of any
          consecutive ninety (90) calendar days during the Option Acceleration
          Period, 600,000 Shares in the aggregate shall be exercisable, whether
          or not they were previously exercisable in accordance with the
          Exercise Period set forth above.  Such adjustment to the Exercise
          Period shall occur only upon the initial attainment of such sixty-day
          share price during any ninety (90) consecutive calendar day period.

          (iv) Upon the first date that the closing sales price of the Common
          Stock as reported on the NASDAQ National Market Systems shall have
          been equal to or in excess of $25.00 per share, as adjusted for stock
          splits or stock dividends, for sixty (60) Trading Days out of any
          consecutive ninety (90) calendar days during the Option Acceleration
          Period, the remaining Shares of the Option, if otherwise unexercisable
          at such time, shall become exerciseable.

     Except as set forth in subparagraph 3(a) above in the event of a Change in
     Control, any Option, to the extent not yet vested in accordance with the
     Exercise Period set forth above, shall expire on the date the Optionee's
     employment is terminated.  Any Option that is vested in accordance with the
     Exercise Period set forth above shall expire on, and shall be exercised (if
     at all) prior to the first to occur of:

          (a)  September 12, 2009;

     (b)  Ninety (90) days after the date on which the Optionee shall cease, for
          any reason or cause whatsoever, and without regard to such reason or
          cause (except as set forth in (c) and  (d) below) to be an employee
          of, or consultant to, the Company or any affiliate or subsidiary
          thereof;

     (c)  The date the Optionee's employment is terminated, if it is terminated
          for "Cause" as that term is defined in the Employment Agreement; or

     (d)  Twelve months from the date the Optionee's employment is terminated,
          if it is terminated pursuant to Paragraph 7B of the Employment
          Agreement, in which case the Option, to the extent it is otherwise
          exerciseable on the date the Optionee's employment is terminated, may
          be exercised by the Optionee or his legal representative or estate
          within such twelve month period.

     Upon expiration of the Option without it having been duly exercised, the
     Option shall be and become null, void, and of no further effect.

                                       3
<PAGE>

4.   EXERCISE OF OPTION AND ISSUANCE OF STOCK

     The Option may be exercised in whole or in part (to the extent that it is
     exerciseable in accordance with its terms) by giving written notice (or any
     other approved form of notice) to the Company.  Such written notice shall
     be signed by the person exercising the Option, shall state the number of
     Shares with respect to which the Option is being exercised, and shall
     specify a date (other than a Saturday, Sunday or legal holiday) not less
     than five (5) nor more than ten (10) days after the date of such written
     notice, as the date on which the Shares will be purchased, at the principal
     office of the Company during ordinary business hours, or at such other hour
     and place agreed upon by the Company and the person or persons exercising
     the Option, and shall otherwise comply with the terms and conditions of
     this Agreement.  On the date specified in such written notice (which date
     may be extended by the Company if any law or regulation requires the
     Company to take any action with respect to the Shares prior to the issuance
     thereof), the Company shall accept payment for the Shares and shall deliver
     to the Optionee an appropriate certificate or certificates for the Shares
     as to which the Option was exercised.

     The Option price of any Shares shall be payable at the time of exercise as
     determined by the Company in its sole discretion either:

     (a)  in cash, by certified check or bank check, or by wire transfer; or

     (b)  in whole shares of the Company's common stock, provided, however, that
          if such shares were acquired pursuant to an incentive stock option
          plan (as defined in Code Section 422) of the Company or Affiliate,
          then the applicable holding period requirements of said Section 422
          have been met with respect to such shares, and, provided further, that
          if the Optionee is subject to the reporting requirements of Section 16
          of the Securities Exchange Act of 1934, as amended from time to time,
          then, if (i) such shares were granted pursuant to an option, then such
          option must have been granted at least six (6) months prior to the
          exercise of the Option hereunder, and (ii) such shares were purchased
          other than through the grant and exercise of an option, such shares
          were owned by the Optionee for more than six (6) months prior to the
          exercise of the Option hereunder; or

     (c)  in any combination of (a) or (b) above.

     The fair market value of the stock to be applied toward the purchase price
     shall be determined as of the date of exercise of the Option.  Any
     certificate for shares of outstanding stock of the Company used to pay the
     purchase price shall be accompanied by a stock power duly endorsed in blank
     by the registered holder of the certificate, with signature guaranteed in
     the event the certificate shall also be accompanied by instructions from
     the Optionee to the Company's transfer agent with respect to disposition of
     the balance of the shares covered thereby.

     The Company shall pay all original issue taxes with respect to the issuance
     of Shares pursuant hereto and all other fees and expenses necessarily
     incurred by the Company in

                                       4
<PAGE>

     connection therewith. The holder of this Option shall have the rights of a
     stockholder only with respect to those Shares covered by the Option which
     have been registered in the holder's name in the share register of the
     Company upon the due exercise of the Option.

5.   REPRESENTATIONS AND COVENANTS OF THE OPTIONEE

     In connection with the grant of the Option hereunder, the Optionee
     represents and warrants to the Company that:

     (a)  The Shares subject to the Option under this Agreement shall be
          acquired for the Optionee's own account and not with a view to, or
          present intention of, distribution in violation of the Securities Act
          of 1933 (the "1933 Act") or any applicable state securities laws, and
          the Shares will not be disposed of in contravention of the 1933 Act or
          any applicable state securities laws.

     (b)  The Optionee is sophisticated in financial matters and is able to
          evaluate the risks and benefits of the Option and the Shares.

     (c)  The Optionee acknowledges that he is able to bear the economic risk of
          the exercise of the Option for an indefinite period of time, because
          the Shares have not been registered under the 1933 Act and, therefore,
          cannot be resold unless subsequently registered under the 1933 Act or
          an exemption from such registration is available.

     (d)  The Optionee has had an opportunity to ask questions and receive
          answers concerning the terms and conditions of the grant of the Option
          and has had full access to such information concerning the Company as
          he has requested.

     (e)  The Optionee has the full right, power and authority to execute and
          deliver this Agreement and to perform his obligations hereunder.  This
          Agreement constitutes the valid and legally binding obligations of the
          Optionee enforceable against him in accordance with its terms, except
          as the same may be limited by applicable bankruptcy, insolvency,
          reorganization, moratorium or other laws relating to or affecting the
          enforcement of creditors' rights generally, now or hereafter in effect
          and subject to the application of equitable principles and the
          availability of equitable remedies.

     (f)  The Optionee is not a party to, subject to or bound by any agreement
          or any judgment, order, writ, prohibition, injunction or decree of any
          court or other governmental body which would prevent the execution or
          delivery of this Agreement by him or the consummation of the
          transactions contemplated hereby.

6.   REGISTRATION

     The Optionee understands that the Shares are not currently being registered
     under the 1933 Act by reason of their contemplated issuance in a
     transaction exempt from the registration and prospectus delivery
     requirements of the 1933 Act pursuant to Section 4(2) thereof.  The

                                       5
<PAGE>

     Optionee further agrees that he will not sell or otherwise dispose of the
     Shares unless such sale or other disposition has been registered or is
     exempt from registration under the 1933 Act and has been registered or
     qualified or is exempt from registration or qualification under applicable
     securities laws of any state.  The Optionee understands that a restrictive
     legend consistent with the foregoing, and as set forth in Paragraph 8, will
     be placed on the certificates evidencing the Shares, and related stop
     transfer instructions will be noted in the stock transfer records of the
     Company and/or its stock transfer agent for the Shares.  The foregoing
     notwithstanding, the Company agrees that it will use all reasonable efforts
     to cause a registration of the Shares obtained by the Optionee through the
     exercise of all or any portion of the Option to be declared effective
     within two (2) months after the date of this Agreement.

7.   WITHHOLDING

     The Company shall have the power and right to deduct or withhold, or
     require the Optionee to remit to the Company, an amount sufficient to
     satisfy federal, state, and local taxes required by law to be withheld with
     respect to any grant made under or as a result of this Agreement.  In the
     alternative, upon any taxable event hereunder, the Optionee may elect,
     subject to Company approval, to satisfy the withholding requirement in
     whole or in part, by having the Company withhold Shares that would
     otherwise be transferred to the Optionee having a fair market value, on the
     date the tax is to be determined, equal to the minimum marginal tax that
     could be imposed on the transaction.  All elections shall be made in
     writing and signed by the Optionee.

8.   LEGEND

     The Optionee shall be bound by the provisions of the following legend (or
     similar legend) which shall be endorsed upon the certificate(s) evidencing
     the Shares issued pursuant to the grant of the Option hereunder.

          "The shares represented by this certificate have been acquired for
          investment and they may not be sold or otherwise transferred by any
          person in the absence of an effective registration statement for the
          shares under the Securities Act of 1933 or an opinion of counsel
          satisfactory to the Company that an exemption from registration is
          then available."

9.   ADJUSTMENTS UPON CHANGES IN CAPITALIZATION

     In the event that the outstanding Shares of the Company are changed into or
     exchanged for a different number or kind of shares or other securities of
     the Company or of another corporation by reason of any reorganization,
     merger, consolidation, recapitalization, reclassification, change in par
     value, stock split-up, combination of shares or dividends payable in
     capital stock, or the like, appropriate adjustments to prevent dilution or
     enlargement of the Shares granted to, or available for, the Optionee shall
     be made in the manner and kind of Shares granted hereunder.

                                       6

<PAGE>

10.  NON-ASSIGNABILITY

     This Option shall not be transferable by the Optionee and shall be
     exerciseable only by the Optionee, except as the Board of Directors may
     otherwise provide.

11.  NOTICES

     Any notices required or permitted by the terms of this Agreement shall be
     given by registered or certified mail, return receipt requested, addressed
     as follows:

     To the Company:  System Software Associates, Inc.
                      500 West Madison
                      Chicago, Illinois  60661
                      Attn:  Board of Directors

     To the Optionee: Robert R. Carpenter
                      c/o System Software Associates, Inc.
                      500 W. Madison St.
                      Chicago, IL  60661

     With a copy to:  David S. Barritt
                      Chapman and Cutler
                      111 W. Monroe St.
                      Chicago, IL  60603

     or to such other address or addresses of which notice in the same manner
     has previously been given.  Any such notice shall be deemed to have been
     given when mailed in accordance with the foregoing provisions.

12.  GOVERNING LAW

     This Agreement shall be construed and enforced in accordance with the laws
     of the State of  Illinois.

                                       7
<PAGE>

13.  BINDING EFFECT

     This Agreement shall (subject to the provisions of Section 10 hereof) be
     binding upon the heirs, executors, administrators, successors and assigns
     of the parties hereto.

     IN WITNESS WHEREOF, the Company and the Optionee have caused this Agreement
to be executed on their behalf, by their duly authorized representatives, all on
the day and year first above written.

                                  SYSTEM SOFTWARE ASSOCIATES, INC.

                                  By:      /s/ William N. Weaver, Jr.
                                     ------------------------------------

                                  Its:   Director/Assistant Secretary
                                      -----------------------------------

                                  OPTIONEE

                                      /s/ Robert R. Carpenter
                                  -----------------------------
                                  Robert R. Carpenter

                                       8

<PAGE>

                                   EXHIBIT C
                                   ---------

                        SYSTEM SOFTWARE ASSOCIATES, INC.
                      NONSTATUTORY STOCK OPTION AGREEMENT

     THIS AGREEMENT is made effective this 13th day of September, 1999 between
System Software Associates, Inc., a Delaware corporation (the "Company"), and
Robert R. Carpenter (the "Optionee").

     WHEREAS, in accordance with the terms of that certain Employment Agreement
(the "Employment Agreement") as executed by and between the Company and the
Optionee effective of even date herewith, the Company desires to grant to the
Optionee an option to purchase shares of its common capital stock (the
"Shares"); and

     WHEREAS, the grant hereunder shall not be under the Company's Long-Term
Incentive Plan.

     NOW, THEREFORE, in consideration of the following mutual covenants and for
other good and valuable consideration, the parties agree as follows:

1.   GRANT OF OPTION

     The Company grants to the Optionee the right and option to purchase all or
     any part of an aggregate of 200,000 Shares (the "Option") on the terms and
     conditions and subject to all the limitations set forth herein.  The
     Optionee acknowledges that the definitive records pertaining to the grant
     of this Option, and exercises of rights hereunder, shall be retained by the
     Company.  The Option granted herein is intended to be a nonstatutory
     option.

2.   PURCHASE PRICE

     The purchase price of the Shares subject to the Option shall be Ten Dollars
     ($10.00) per Share.

3.   EXERCISE OF OPTION

     Subject to this Agreement, the Option shall be exerciseable as follows:

<TABLE>
<CAPTION>
                                           EXERCISE PERIOD

                         Vesting                 Expiration
Number of Shares         Date                    Date
----------------         ------------------      ------------------
<S>                      <C>                     <C>
200,000                  September 13, 2003      September 12, 2009
</TABLE>
<PAGE>

     Notwithstanding anything in this Paragraph 3 to the contrary, the Shares
     subject to the Option shall be exercisable, as described below, upon the
     following events:

     (a)  Upon a "Change in Control," as such term is defined in Paragraph 7D(6)
          of the Employment Agreement, all Shares not then exercisable shall
          immediately become exerciseable and shall be exercisable in accordance
          with the terms of the Plan.

     (b)  Upon the first date that the closing sales price of the Common Stock
          as reported on the NASDAQ National Market System shall have been equal
          to or in excess of $40.00 per share, as adjusted for stock splits or
          stock dividends, for any sixty (60) Trading Days (as defined below)
          out of any consecutive ninety (90) calendar days during the period
          beginning on September 13, 1999 and ending on September 12, 2003 (the
          "Option Acceleration Period"), all Shares subject to the option shall
          be exerciseable, whether or not they were previously exercisable in
          accordance with the Exercise Period set forth above.  Such adjustment
          to the Exercise Period shall occur only upon the initial attainment of
          such sixty-day share price during any ninety (90) consecutive calendar
          day period.  A "Trading Day" shall be defined as any day on which the
          principal national securities exchange or market quotation system on
          which the Common Stock is then listed or admitted for trading is open.

     Except as set forth in subparagraph 3(a) above in the event of a Change in
     Control, the Option shall expire on, and shall be exercised (if at all)
     prior to the first to occur of:

          (a)  September 12, 2009;

     (b)  Ninety (90) days after the date on which the Optionee shall cease, for
          any reason or cause whatsoever, and without regard to such reason or
          cause (except as set forth in (c) and  (d) below) to be an employee
          of, or consultant to, the Company or any affiliate or subsidiary
          thereof;

     (c)  The date the Optionee's employment is terminated, if it is terminated
          for "Cause" as that term is defined in the Employment Agreement; or

     (d)  Twelve months from the date the Optionee's employment is terminated,
          if it is terminated pursuant to Paragraph 7B of the Employment
          Agreement, in which case the Option, to the extent it is otherwise
          exerciseable on the date the Optionee's employment is terminated, may
          be exercised by the Optionee or his legal representative or estate
          within such twelve month period.

     Upon expiration of the Option without it having been duly exercised, the
     Option shall be and become null, void, and of no further effect.

4.   EXERCISE OF OPTION AND ISSUANCE OF STOCK

     The Option may be exercised in whole or in part (to the extent that it is
     exerciseable in accordance with its terms) by giving written notice (or any
     other approved form of notice)

                                       2
<PAGE>

     to the Company. Such written notice shall be signed by the person
     exercising the Option, shall state the number of Shares with respect to
     which the Option is being exercised, and shall specify a date (other than a
     Saturday, Sunday or legal holiday) not less than five (5) nor more than ten
     (10) days after the date of such written notice, as the date on which the
     Shares will be purchased, at the principal office of the Company during
     ordinary business hours, or at such other hour and place agreed upon by the
     Company and the person or persons exercising the Option, and shall
     otherwise comply with the terms and conditions of this Agreement. On the
     date specified in such written notice (which date may be extended by the
     Company if any law or regulation requires the Company to take any action
     with respect to the Shares prior to the issuance thereof), the Company
     shall accept payment for the Shares and shall deliver to the Optionee an
     appropriate certificate or certificates for the Shares as to which the
     Option was exercised.

     The Option price of any Shares shall be payable at the time of exercise as
     determined by the Company in its sole discretion either:

     (a)  in cash, by certified check or bank check, or by wire transfer; or

     (b)  in whole shares of the Company's common stock, provided, however, that
          if such shares were acquired pursuant to an incentive stock option
          plan (as defined in Code Section 422) of the Company or Affiliate,
          then the applicable holding period requirements of said Section 422
          have been met with respect to such shares, and, provided further, that
          if the Optionee is subject to the reporting requirements of Section 16
          of the Securities Exchange Act of 1934, as amended from time to time,
          then, if (i) such shares were granted pursuant to an option, then such
          option must have been granted at least six (6) months prior to the
          exercise of the Option hereunder, and (ii) such shares were purchased
          other than through the grant and exercise of an option, such shares
          were owned by the Optionee for more than six (6) months prior to the
          exercise of the Option hereunder; or

     (c)  in any combination of (a) or (b) above.

     The fair market value of the stock to be applied toward the purchase price
     shall be determined as of the date of exercise of the Option.  Any
     certificate for shares of outstanding stock of the Company used to pay the
     purchase price shall be accompanied by a stock power duly endorsed in blank
     by the registered holder of the certificate, with signature guaranteed in
     the event the certificate shall also be accompanied by instructions from
     the Optionee to the Company's transfer agent with respect to disposition of
     the balance of the shares covered thereby.

     The Company shall pay all original issue taxes with respect to the issuance
     of Shares pursuant hereto and all other fees and expenses necessarily
     incurred by the Company in connection therewith.  The holder of this Option
     shall have the rights of a stockholder only with respect to those Shares
     covered by the Option which have been registered in the holder's name in
     the share register of the Company upon the due exercise of the Option.

                                       3
<PAGE>

5.   REPRESENTATIONS AND COVENANTS OF THE OPTIONEE

     In connection with the grant of the Option hereunder, the Optionee
     represents and warrants to the Company that:

     (a)  The Shares subject to the Option under this Agreement shall be
          acquired for the Optionee's own account and not with a view to, or
          present intention of, distribution in violation of the Securities Act
          of 1933 (the "1933 Act") or any applicable state securities laws, and
          the Shares will not be disposed of in contravention of the 1933 Act or
          any applicable state securities laws.

     (b)  The Optionee is sophisticated in financial matters and is able to
          evaluate the risks and benefits of the Option and the Shares.

     (c)  The Optionee acknowledges that he is able to bear the economic risk of
          the exercise of the Option for an indefinite period of time, because
          the Shares have not been registered under the 1933 Act and, therefore,
          cannot be resold unless subsequently registered under the 1933 Act or
          an exemption from such registration is available.

     (d)  The Optionee has had an opportunity to ask questions and receive
          answers concerning the terms and conditions of the grant of the Option
          and has had full access to such information concerning the Company as
          he has requested.

     (e)  The Optionee has the full right, power and authority to execute and
          deliver this Agreement and to perform his obligations hereunder.  This
          Agreement constitutes the valid and legally binding obligations of the
          Optionee enforceable against him in accordance with its terms, except
          as the same may be limited by applicable bankruptcy, insolvency,
          reorganization, moratorium or other laws relating to or affecting the
          enforcement of creditors' rights generally, now or hereafter in effect
          and subject to the application of equitable principles and the
          availability of equitable remedies.

     (f)  The Optionee is not a party to, subject to or bound by any agreement
          or any judgment, order, writ, prohibition, injunction or decree of any
          court or other governmental body which would prevent the execution or
          delivery of this Agreement by him or the consummation of the
          transactions contemplated hereby.

6.   REGISTRATION

     The Optionee understands that the Shares are not currently being registered
     under the 1933 Act by reason of their contemplated issuance in a
     transaction exempt from the registration and prospectus delivery
     requirements of the 1933 Act pursuant to Section 4(2) thereof.  The
     Optionee further agrees that he will not sell or otherwise dispose of the
     Shares unless such sale or other disposition has been registered or is
     exempt from registration under the 1933 Act and has been registered or
     qualified or is exempt from registration or qualification under applicable
     securities laws of any state.  The Optionee understands that a restrictive

                                       4
<PAGE>

     legend consistent with the foregoing, and as set forth in Paragraph 8, will
     be placed on the certificates evidencing the Shares, and related stop
     transfer instructions will be noted in the stock transfer records of the
     Company and/or its stock transfer agent for the Shares.  The foregoing
     notwithstanding, the Company agrees that it will use all reasonable efforts
     to cause a registration of the Shares obtained by the Optionee through the
     exercise of all or any portion of the Option to be declared effective
     within two (2) months after the date of this Agreement.

7.   WITHHOLDING

     The Company shall have the power and right to deduct or withhold, or
     require the Optionee to remit to the Company, an amount sufficient to
     satisfy federal, state, and local taxes required by law to be withheld with
     respect to any grant made under or as a result of this Agreement.  In the
     alternative, upon any taxable event hereunder, the Optionee may elect,
     subject to Company approval, to satisfy the withholding requirement in
     whole or in part, by having the Company withhold Shares that would
     otherwise be transferred to the Optionee having a fair market value, on the
     date the tax is to be determined, equal to the minimum marginal tax that
     could be imposed on the transaction.  All elections shall be made in
     writing and signed by the Optionee.

8.   LEGEND

     The Optionee shall be bound by the provisions of the following legend (or
     similar legend) which shall be endorsed upon the certificate(s) evidencing
     the Shares issued pursuant to the grant of the Option hereunder.

          "The shares represented by this certificate have been acquired for
          investment and they may not be sold or otherwise transferred by any
          person in the absence of an effective registration statement for the
          shares under the Securities Act of 1933 or an opinion of counsel
          satisfactory to the Company that an exemption from registration is
          then available."

9.   ADJUSTMENTS UPON CHANGES IN CAPITALIZATION.

     In the event that the outstanding Shares of the Company are changed into or
     exchanged for a different number or kind of shares or other securities of
     the Company or of another corporation by reason of any reorganization,
     merger, consolidation, recapitalization, reclassification, change in par
     value, stock split-up, combination of shares or dividends payable in
     capital stock, or the like, appropriate adjustments to prevent dilution or
     enlargement of the Shares granted to, or available for, the Optionee shall
     be made in the manner and kind of Shares granted hereunder.

10.  NON-ASSIGNABILITY

     This Option shall not be transferable by the Optionee and shall be
     exerciseable only by the Optionee, except as the Board of Directors may
     otherwise provide.

                                       5
<PAGE>

11.  NOTICES

     Any notices required or permitted by the terms of this Agreement shall be
     given by registered or certified mail, return receipt requested, addressed
     as follows:

     To the Company:  System Software Associates, Inc.
                      500 West Madison
                      Chicago, Illinois  60661
                      Attn:  Board of Directors

     To the Optionee: Robert R. Carpenter
                      c/o System Software Associates, Inc.
                      500 W. Madison St.
                      Chicago, IL  60661

     With a copy to:  David S. Barritt
                      Chapman and Cutler
                      111 W. Monroe St.
                      Chicago, IL  60603

     or to such other address or addresses of which notice in the same manner
     has previously been given.  Any such notice shall be deemed to have been
     given when mailed in accordance with the foregoing provisions.

12.  GOVERNING LAW

     This Agreement shall be construed and enforced in accordance with the laws
     of the State of Illinois.

                                       6
<PAGE>

13.  BINDING EFFECT

     This Agreement shall (subject to the provisions of Section 10 hereof) be
     binding upon the heirs, executors, administrators, successors and assigns
     of the parties hereto.

     IN WITNESS WHEREOF, the Company and the Optionee have caused this Agreement
to be executed on their behalf, by their duly authorized representatives, all on
the day and year first above written.

                                  SYSTEM SOFTWARE ASSOCIATES, INC.

                                  By:   /s/ William N. Weaver, Jr.
                                     --------------------------------

                                  Its:  Director/Assistant Secretary
                                      -------------------------------

                                  OPTIONEE

                                      /s/ Robert R. Carpenter
                                  -----------------------------
                                  Robert R. Carpenter

                                       7

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