Document:

M  E  M  O  R  A  N  D  U  M

TO:               [NAME]

FROM:             [MANAGER]

CC:               GIL  JOHNSON

DATE:

SUBJECT:          2000  BONUS  PLAN  -  NOTICE  OF  ELIGIBILITY

I.     BONUS  PLAN  ELIGIBILITY
       ------------------------

You  will  have  the  potential  to  receive  a  bonus  of:

     [Bonus  %]  of  salary  (based  upon  your annual salary as of 30 September
2000).

II.     BONUS  CRITERIA  AND  WEIGHTING
        -------------------------------

Each  of  the following criteria represents a portion of the above bonus and are
weighted  as  follows:

     [INDIVIDUAL  WEIGHTING]     ---     Operating  Income

     [INDIVIDUAL  WEIGHTING]     ---     Revised  Profit  Plan  For  Applicable
Business  Unit

     [INDIVIDUAL  WEIGHTING]     ---     Customer  Satisfaction

     [INDIVIDUAL  WEIGHTING]     ---     Employee  Satisfaction

     Business  Unit  means  [Business  Group].

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<PAGE>

III.     BONUS  CRITERIA  AND  OPERATION
         -------------------------------

A.     OPERATING  INCOME-  [Target  Operating  Income]
       -----------------

The  2000  target  to earn 100% of this bonus criterion is [TARGET] company wide
Operating  Income  based on year end audited results and before special one time
charges  and  discontinued Banking Operations.  A pro-rata portion of this bonus
criterion  is  earned  in  excess  [MINIMUM]  and  up  to  [TARGET].

B.     PROFIT  PLAN  --  Target  100%  or  greater  of  plan
       ------------

The  2000  target  to  earn  100%  of  this bonus criterion is achieving 100% or
greater of your revised business unit profit plan.  There is no pro-rata portion
of  this  criterion.

C.     CLIENT  AND  EMPLOYEE  SATISFCATION  IMPROVEMENT
       ------------------------------------------------

The  2000  target  to earn 100% of these bonus criterion is the achievement of a
[TARGET]  score  based  on  a  1 to 5 scale at the lowest client/employee survey
level.  A  pro-rata  portion  of each client and employee satisfaction criterion
will  be  paid  according to the following schedule.  All scores are computed to
one  decimal  point,  rounded  down.

     [TARGET  -  0.5]     =  50%          [TARGET  -  0.2]  =  80%
     [TARGET  -  0.4]     =  60%          [TARGET  -  0.1]  =  90%
     [TARGET  -  0.3]     =  70%          [TARGET]         =  100%

IV.     ADDITIONAL  BONUS  QUALIFICATIONS
        ---------------------------------

A.     Your  bonus,  as well as all other bonuses under this 2000 Bonus Plan, is
subject  to  the  discretion  and  authorization  of  the Board of Directors and
management  based  upon  their  evaluation  of  your  and  the  Company's  2000
performance.  The  amount  of  any  bonus  may be adjusted, in whole or in part,
prior  to  payment.

B.     You must be employed by the Company on the date of bonus payment approval
by  the  Board  of  Directors.

C.     Bonuses  for  employees  who  join  the  Company after 1 January 2000 and
before  30  September  2000  will  be  prorated.

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<PAGE>

V.     BONUS  OPPORTUNITY
       ------------------

Your  bonus  opportunity  is  affected  by  a  variety of factors including your
management  level,  the  level  of  manager  you  report  to,  as  well  as  the
margin/budget  level  of  your  organization.  For  that  reason  your  bonus
opportunity may be different from others and it is important that you treat your
specific  bonus  opportunity,  as  presented  in this memorandum, as private and
confidential  information.

VI.     RESTRICTED  STOCK  PLAN
        -----------------------

The  Policy  Management  Systems Corporation Restricted Stock Plan ("Plan") will
apply  in  the  payment  of  all  management  bonuses under the 2000 Bonus Plan.
Participation  in  the  Plan is required for all employees holding the office of
Vice  President  and  above  and  is  voluntary  for  all  other  bonus eligible
management.  Application of the Plan to international personnel varies depending
upon  the  international  location.

The  Plan  and  its Prospectus and a current list of the countries participating
under  the  Restricted  Stock Ownership Plan may be found on the intranet at the
Legal  Department's  web  page.

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<PAGE>
                             SCHEDULE OF PARTICULARS
                          FOR NAMED EXECUTIVE OFFICERS
                              RE: 2000  BONUS PLAN

<TABLE>
<CAPTION>

                    SECTION  II  -  INDIVIDUAL  WEIGHTING
                    -------------------------------------

<S>                  <C>         <C>             <C>            <C>

NAMED EXECUTIVE . .  OPERATING   BUSINESS UNIT   CUSTOMER       EMPLOYEE
-------------------              --------------  -------------  -------------
OFFICER . . . . . .  INCOME      PROFIT PLAN     SATISFACTION   SATISFACTION
-------------------  ----------  --------------  -------------  -------------

DAVID T. BAILEY . .         50%             40%             5%             5%
STEPHEN MORRISON. .         70              20              5%             5%
MICHAEL W. RISLEY .         50              40              5%             5%
TIMOTHY V. WILLIAMS         70              20              5%             5%
G. LARRY WILSON            100             ---            ---            ---
</TABLE>

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<PAGE><PAGE>

                                 AMENDMENT NO. 1
                                       TO
                    SECURITIES PURCHASE AND HOLDERS AGREEMENT

         This Amendment No. 1 to the Securities Purchase and Holders Agreement
(this "Amendment") is made as of December 13, 1999, among Intersil Holding
Corporation, a Delaware corporation (the "Company"), Sterling Holding Company,
LLC, a Delaware limited liability company ("Sterling"), Manatee Investment
Corporation, a Delaware corporation ("Harris"), Intersil Prism, LLC, a Delaware
limited liability company ("Prism LLC"), Citicorp Mezzanine Partners, L.P., a
Delaware limited partnership ("CMP"), and the Management Investors. Sterling,
Harris, Prism LLC, and the Management Investors are sometimes referred to
hereinafter individually as an "Investor" and collectively as the "Investors."

                                 R E C I T A L S

         The Company and the Investors are parties to that certain Securities
Purchase and Holders Agreement dated August 13, 1999 (the "Securities Purchase
and Holders Agreement"). The Company and the Investors desire to amend the
Securities Purchase and Holders Agreement as set forth herein. Capitalized terms
used but not defined herein shall have the meanings set forth in the Securities
Purchase and Holders Agreement.

         NOW THEREFORE, in consideration of the mutual promises and covenants
herein contained and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto agree as
follows:

         1.    Directors of Company Subsidiaries. Section 6.5 of the Securities
               Purchase and Holders Agreement is hereby amended to read in its
               entirety as follows:

               "6.5 Directors of Company Subsidiaries. The Company shall take,
               and each of the Investors agrees that he or it shall cause the
               Company to take, at any time and from time to time, all action
               necessary (including voting all shares of common stock of
               Intersil, calling special meetings of stockholders and executing
               and delivering written consents) to ensure that the Board of
               Directors of Intersil is identical to the Board of Directors of
               the Company."

         2.    Effectiveness. This Amendment shall be effective when executed by
               the Company and Sterling.

         3.    Counterparts. This Amendment may be executed in two or more
               counterparts (including by means of telecopied signature pages),
               all of which shall be considered one and the same agreement.

<PAGE>

         4.    No Other Amendments. Except as expressly set forth in this
               amendment, no other amendment or modification is made to any
               other provisions of the Securities Purchase and Holders
               Agreement, and the Securities Purchase and Holders Agreement
               shall remain in full force and effect, as amended hereby, and as
               so amended the Company and each of the Investors hereby reaffirm
               all of their respective rights and obligations thereunder.

<PAGE>

         IN WITNESS WHEREOF, the parties have executed this Amendment No. 1 to
the Securities Purchase and Holders Agreement as of the date first written
above.

                          INTERSIL HOLDING CORPORATION

                          By: /s/ Gregory L. Williams
                              ----------------------------------------
                              Name:  Gregory L. Williams
                              Title: Chief Executive Officer

                          STERLING HOLDING COMPANY, LLC

                          By: /s/ James A. Urry
                              ----------------------------------------
                              Name:  James A. Urry
                              Title: Authorized Signatory

                          MANATEE INVESTMENT CORPORATION

                          By: /s/ Ronald R. Spoehel
                              ----------------------------------------
                              Name:  Ronald R. Spoehel
                              Title: Vice President

                         CITICORP MEZZANINE PARTNERS, L.P.

                          By: /s/ illegible
                              ----------------------------------------
                              Name:
                              Title: Authorized Signatory

                          INTERSIL PRISM, LLC

                          By: /s/ Daniel Heneghan
                              ----------------------------------------
                              Name:  Daniel Heneghan
                              Title: Authorized Signatory

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