Document:

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                                                                  EXHIBIT 10.4

                      AMERICAN MANAGEMENT SYSTEMS, INC.

                     EXECUTIVE DEFERRED COMPENSATION PLAN

                         Effective September 1, 1996

                        (As Revised September 1, 1997)

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                              TABLE OF CONTENTS

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ARTICLE I-- PURPOSE; EFFECTIVE DATE..........................................1

   1.1 Purpose...............................................................1
   1.2 Effective Date........................................................1

ARTICLE II-- DEFINITIONS.....................................................1

   2.1 Account...............................................................1
   2.2 Actuarial Equivalent..................................................1
   2.3 Base Rate.............................................................1
   2.4 Beneficiary...........................................................2
   2.5 Board.................................................................2
   2.6 Cause.................................................................2
   2.7 Change in Control.....................................................3
   2.8 Committee.............................................................3
   2.9 Company...............................................................3
   2.10 Compensation.........................................................3
   2.11 Deferral Commitment..................................................4
   2.12 Deferral Period......................................................4
   2.13 Determination Date...................................................4
   2.14 Disability...........................................................4
   2.15 Discretionary Contribution...........................................4
   2.16 Earnings.............................................................4
   2.17 Employer.............................................................4
   2.18 Entrance Fee.........................................................4
   2.19 Entrance Fee Base....................................................5
   2.20 Financial Hardship...................................................5
   2.21 Financial Plan.......................................................5
   2.22 401(k) Plan..........................................................5
   2.23 Full-Time Participants...............................................5
   2.24 Incentive Compensation...............................................5
   2.25 Participant..........................................................6
   2.26 Participation Agreement..............................................6
   2.27 Plan.................................................................6
   2.28 Premium Rate.........................................................6
   2.29 Retirement...........................................................6

ARTICLE III-- PARTICIPATION AND DEFERRAL COMMITMENTS.........................6

   3.1 Eligibility and Participation.........................................6

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                              TABLE OF CONTENTS

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   3.2 Form of Deferral......................................................7
   3.3 Limitations on Deferral Commitments...................................7
   3.4 Commitment Limited by Termination.....................................7
   3.5 Modification of Deferral Commitment...................................8

ARTICLE IV-- DEFERRED COMPENSATION ACCOUNT...................................8

   4.1 Account...............................................................8
   4.2 Timing of Credits; Withholding........................................8
   4.3 SEP Makeup Contribution...............................................8
   4.4 Discretionary Contributions...........................................8
   4.5 Determination of Account..............................................8
   4.6 Vesting of Account....................................................9
   4.7 Statement of Account..................................................9

ARTICLE V-- PLAN BENEFITS....................................................9

   5.1 Distributions Prior to Termination of Employment......................9
   5.2 Termination of Employment............................................10
   5.3 Termination for Cause................................................10
   5.4 Retirement Benefit...................................................10
   5.5 Disability Benefit...................................................11
   5.6 Accelerated Distribution.............................................11
   5.7 Withholding for Taxes................................................11
   5.8 Valuation and Settlement.............................................11
   5.9 Payment to Guardian..................................................11
   5.10 Company Discretionary Distribution..................................12

ARTICLE VI-- BENEFICIARY DESIGNATION........................................12

   6.1 Beneficiary Designation..............................................12
   6.2 Changing Beneficiary.................................................12
   6.3 Community Property...................................................12
   6.4 No Beneficiary Designation...........................................13

ARTICLE VII-- ADMINISTRATION................................................13

   7.1 Committee; Duties....................................................13
   7.2 Agents...............................................................14
   7.3 Binding Effect of Decisions..........................................14
   7.4 Indemnity of Committee...............................................14
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                              TABLE OF CONTENTS

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ARTICLE VIII-- CLAIMS PROCEDURE.............................................14

   8.1 Claim................................................................14
   8.2 Review of Claim......................................................14
   8.3 Notice of Denial of Claim............................................15
   8.4 Reconsideration of Denied Claim......................................15
   8.5 Employer to Supply Information.......................................16

ARTICLE IX-- AMENDMENT AND TERMINATION OF PLAN..............................16

   9.1 Amendment............................................................16
   9.2 Employer's Right to Terminate........................................16

ARTICLE X-- MISCELLANEOUS...................................................17

   10.1 Unfunded Plan.......................................................17
   10.2 Company and Employer Obligations....................................17
   10.3 Unsecured General Creditor..........................................17
   10.4 Trust Fund..........................................................17
   10.5 Nonassignability....................................................18
   10.6 Not a Contract of Employment........................................18
   10.7 Protective Provisions...............................................18
   10.8 Governing Law.......................................................18
   10.9 Validity............................................................18
   10.10 Notice.............................................................18
   10.11 Successors.........................................................19

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                      AMERICAN MANAGEMENT SYSTEMS, INC.

                     EXECUTIVE DEFERRED COMPENSATION PLAN

                     ARTICLE I -- PURPOSE; EFFECTIVE DATE

1.1   PURPOSE

      The purpose of this Executive Deferred Compensation Plan is to provide
current tax planning opportunities as well as supplemental funds for
retirement or death for selected employees of the Employer.  It is intended
that the Plan will aid in attracting and retaining employees of exceptional.
ability by providing them with these benefits.

1.2   EFFECTIVE DATE

      The Plan is effective as of September 1, 1996 (as revised September 1,
1997).

                          ARTICLE II -- DEFINITIONS

      For the purposes of this Plan, the following terms shall have the
meanings indicated, unless the context clearly indicates otherwise:

2.1   ACCOUNT

      "Account" means the device used by the Employer to measure and
determine the amount to be paid to a Participant under the Plan.

2.2   ACTUARIAL EQUIVALENT

      "Actuarial Equivalent" means equivalence in value between two or more
forms and/or times of payment based on a determination by an actuary chosen
by the Committee, using sound actuarial assumptions at the time of such
determination.

2.3   BASE RATE

      "Base Rate" means the effective annual Yield of the average of the
Moody's Average Corporate Bond Yield Index for the previous calendar month as
published by Moody's Investor Services, Inc. (or any successor publisher
thereto). or, if such index is no longer published, a substantially similar
index selected by the Board.

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2.4   BENEFICIARY

      "Beneficiary" means the person, persons or entity entitled under
Article VI to receive any Plan benefits payable after a Participant's death.

2.5   BOARD

      "Board" means the Board of Directors of the Company.

2.6   CAUSE

      "Cause" shall mean termination upon.

         (a) Your conviction or plea of guilty or nolo contenders to any
      felony or misdemeanor, except misdemeanors relating to traffic offenses;

         (b) The reasonable determination by the Company that you have engaged
      in an act of personal dishonesty in any way relating to or affecting the
      performance of your duties for the Company;

         (c) Your breach of fiduciary duty to the Company, its subsidiaries or
      affiliates;

         (d) Your willful continued failure to perform the duties assigned to
      you by the Company (other than failure to perform due to physical or
      mental disability);

         (e) Gross negligence in the performance of your duties, or

         (f) A breach of Company policy or of any written agreement between
      you and the Company.

      For purposes of this Section 2.6, no act, or failure to act. on your
part shall be considered "willful" unless done, or omitted to be done, by you
in bad faith and without reasonable belief that your action or emission was
in, or not opposed to, the best interests of the Company.  Any act, or
failure to act, based upon authority given pursuant to a resolution duly
adopted by the Committee or based upon the advice of counsel for the Company
shall be conclusively presumed to be done, or omitted to be done, by you in
good faith and in the best interests of the Company.  It is also expressly
understood that your attention to matters not directly related to the
business of the Company shall not provide a basis for termination for Cause
so long as the Company has approved your engagement in such activities.
Notwithstanding the foregoing, you shall not be deemed to have been
terminated for Cause unless and until there shall have been delivered to you
a copy of a resolution duly adopted by the affirmative vote of not less than
three-quarters (3/4) of the entire membership of the Committee at a meeting
of the Committee called and held for this purpose (after reasonable notice to
you and an opportunity for you, together with your counsel, to be heard
before the Committee). finding that, in the good faith opinion of the
Committee you were guilty of the conduct set forth above in any of (a)
through (f) of this Section 2.6 and specifying the particulars thereof in
detail.

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2.7   CHANGE IN CONTROL

      A "Change in Control" means a Change in Control of a nature that would
be required to be reported (assuming such event has not been "previously
reported") in response to Item 1(a) of he current report on Form 8-K, as in
effect on the date hereof, pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934, as amended (the "Exchange Act") or any successor
thereto; provided that, without limitation, such a Change in Control shall be
deemed to have occurred at such time as:

         (a) Any person is or becomes the "beneficial owner" (as defined in Rule
      13d-3 under the Exchange Act), directly or indirectly, of thirty percent
      (30%) or more of the combined voting power of the Company's Voting
      Securities;

         (b) During any period of two (2) consecutive years, individuals who at
      the beginning of such period constitute the Board of Directors of the
      Company, together with any new directors whose election, or nomination for
      election by the shareholders, was approved by a vote of at least
      two-thirds (2/3) of the directors then still in office who were either
      directors at the beginning of the period or whose election or nomination
      for election was previously so approved, cease for any reason to
      constitute at least a majority of the Board of Directors of the Company;

         (c) The sale by the Company of more than fifty percent (50%) of the
      book value of its assets to a single purchaser or to a group of affiliated
      purchasers; or

         (d) The merger or consolidation of the Company in a transaction in
      which the shareholders of the Company receive less than fifty percent
      (50%) of the outstanding voting shares of the continuing corporation.
      Notwithstanding anything in the foregoing to the contrary, no Change in
      Control shall be deemed to have occurred by virtue of arty transaction
      which results in a Participant, or group of Participants, acquiring,
      directly or indirectly. twenty-five percent (25%) or more of the combined
      voting power of the Company's Voting Securities.

2.8   COMMITTEE

      "Committee" means the Administrative Committee appointed to administer
the Plan pursuant to Article VII hereof.

2.9   COMPANY

      "Company" means American Management Systems, Inc., a Delaware
corporation.

2.10  COMPENSATION

      "Compensation" means only base salary and Incentive Compensation
payable to a Participant during the calendar year, before reduction for
amounts deferred under this Plan or any other salary reduction program.

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2.11  DEFERRAL COMMITMENT

      "Deferral Commitment" means a commitment made by a Participant to defer
Compensation pursuant to Article III.

2.12  DEFERRAL PERIOD

      "Deferral Period" means each calendar year.  The initial Deferral
Period, however, shall be from September 1, 1996, through December 31, 1996.

2.13  DETERMINATION DATE

      "Determination Date" means the last day of each calendar month.

2.14  DISABILITY

      "Disability" means a physical or mental condition that, in the opinion
of the Committee, shall prevent the Participant from satisfactorily
performing his usual duties for the Employer for a two (2) year period or
longer.  The Committee shall determine the existence of the Disability and
may rely on advice from a medical examiner medical reports, and/or other
evidence satisfactory to the Committee.

2.15  DISCRETIONARY CONTRIBUTION

      "Discretionary Contribution" means the Employer contribution credited
to a Participant's Account under Section 4.4.

2.16  EARNINGS

      "Earnings" means the rate of growth credited to an account on each
Determination Date in a calendar year, the rate shall be the Base Rate unless
the Employer meets or exceeds its Financial Plan in a calendar year, in which
case the rate shall be the Premium Rate for all Participants who are not
Retired or not Disabled.

2.17  EMPLOYER

      "Employer" means the Company and any U.S. subsidiary or affiliate of
the Company designated by the Board.

2.18  ENTRANCE FEE

      "Entrance Fee" means an amount equal to four percent (4%) of any
deferral which is part of the Participant's First Deferral Commitment.  In
subsequent Deferral Periods the Entrance Fee shall equal four percent (4%) of
the amount by which the deferral exceeds the Participant's Entrance Fee Base
less prior deferrals made during the current Deferral Period.  The Executive
Committee of the Board of Directors may waive the four percent (4%) fee at
its discretion if such waiver is deemed to be in the best Financial interest
of the Company.

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2.19  ENTRANCE FEE BASE

      "Entrance Fee Base" means for a Deferral Period an amount equal to the
Participant's first Deferral Commitment times the number of Deferral Periods
the Participant has participated in the Plan (including the current Deferral
Period), plus the portion of any subsequent Deferral Commitments subject to
the Entrance Fee times the number of Deferral Periods including. and
subsequent to, the payment of any such additional Entrance Fee, less total
deferrals made prior to the current Deferral Period.

2.20  FINANCIAL HARDSHIP

      "Financial Hardship" means severe financial hardship to the Participant
resulting from a sudden and unexpected illness or accident of the Participant
or of a dependent (as defined in Section 152(a) of the Internal Revenue Code)
of the Participant, loss of the Participant's property due to casualty, or
other similar extraordinary and unforeseeable circumstances arising as a
result of events beyond the control of the Participant.  The circumstances
that will constitute an unforeseeable emergency will depend upon the facts of
each case, but in any Case, payment may not be made to the extent that such
hardship is or may be relieved:

          (a) Through reimbursement or compensation by insurance or otherwise;

          (b) By liquidation of the Participant's assets, to the extent the
      liquidation of such assets would not itself cause severe financial
      hardship; or

          (c) By cessation of deferrals under the Plan.

2.21  FINANCIAL PLAN

      "Financial Plan" means the plan approved by the Board of Directors in
the beginning of each year and used for purposes of setting AMS-wide profit
sharing goals.

2.22  401(k) PLAN

      "401(k) Plan" means the American Management Systems, Inc. 401(k) plan,
as amended from time to time.

2.23  FULL-TIME PARTICIPANTS

      Participants who worked a minimum of 1,248 hours in the Financial Plan
year on direct and/or indirect projects.

2.24  INCENTIVE COMPENSATION

      "Incentive Compensation" means the cash portion of the amounts payable
to a participant as incentive awards under the Company's incentive
compensation plans.

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2.25  PARTICIPANT

      "Participant" means any eligible individual who has elected to defer
Compensation under this Plan.

2.26  PARTICIPATION AGREEMENT

      "Participation Agreement" means the agreement submitted by a
Participant to the Committee prior to the beginning of a Deferral Period,
with respect to a Deferral Commitment made for such Deferral Period.

2.27  PLAN

      "Plan" means this Executive Deferred Compensation Plan as amended from
time to time.

2.28  PREMIUM RATE

      "Premium Rate" means the Base Rate plus three percent (3%) (300 basis
points) for full-time.  Participants and the Base Rate plus one and one-half
percent (1.5%) (150 basis points) for all other Participants.  Retired
Participants shall not be eligible for the Premium Rate after the date of
retirement.  Terminated employees are not eligible for the premium rate for
the year in which they terminate.

2.29  RETIREMENT

      "Retirement" means a termination of employment which. in the opinion of
the Committee, based on the Participant's facts and circumstances, is a
termination for retirement and not to pursue employment or self-employment.

            ARTICLE III -- PARTICIPATION AND DEFERRAL COMMITMENTS

3.1   ELIGIBILITY AND PARTICIPATION

         (a) ELIGIBILITY. Eligibility to participate in the Plan shall be
      limited to U.S. employees of Employer who are a Senior Consultant or
      above. The Executive Committee of the Board of Directors, in its
      Discretion may deem otherwise eligible employees to be ineligible to
      Participate if such participation is deemed by the Executive Committee not
      in the best financial interests of the Company.

         (b) PARTICIPATION. An eligible individual may elect to participate in
      the Plan with respect to any Deferral Period by submitting a Participation
      Agreement to the Committee by the. thirtieth (30th) day of September
      immediately preceding the beginning of the Deferral Period.

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3.2   FORM OF DEFERRAL

      A Participant may elect Deferral Commitments in the Participation
Agreement as follows:

         (a) SALARY DEFERRAL COMMITMENT. A salary Deferral Commitment shall be
      related to the base salary payable by Employer to a Participant during the
      Deferral Period. The amount to be deferred shall be stated as a percentage
      amount.

         (b) INCENTIVE DEFERRAL COMMITMENT. An incentive Deferral Commitment
      shall be related to the Incentive Compensation payable by Employer to a
      Participant during tire Deferral Period. The amount to be deferred shall
      be stated either as a percentage or a dollar amount.

         (c) BONUS DEFERRAL COMMITMENT. Subject to the, discretion of the
      Executive Committee of the Board of Directors, a Participant may defer
      bonuses payable by the employer during the deferral period. The amount to
      be deferred shall be stated either as a percentage or as a dollar amount.

      No deferral shall be permitted that is in violation of law. e.g., wage
garnishments, tax levies, or child support orders.

3.3   LIMITATIONS ON DEFERRAL COMMITMENTS

      The following limitations shall apply to Deferral Commitments:

         (a) MINIMUM. The minimum Salary Deferral Commitment amount shall be one
      thousand dollars ($1,000) for each month in the Deferral Period. There
      shall be no minimum deferral amount on an incentive Deferral Commitment.
      The minimum Deferral Commitment for a Participant who enters participation
      after the beginning of a Deferral Period shall be based on the number of
      months remaining in the Deferral Period.

         (b) MAXIMUM. The maximum deferral amount shall be fifty percent (50%)
      of base salary in a salary Deferral Commitment and ninety percent (90%) of
      Incentive Compensation in an incentive Deferral Commitment.

         (c) CHANGES IN MINIMUM OR MAXIMUM. The Committee may change the minimum
      or maximum deferral amounts from time to time by giving written notice to
      all Participants. No such chance may affect a Deferral Commitment made
      prior to the Committee's action.

3.4   COMMITMENT LIMITED BY TERMINATION

      If a Participant terminates employment with Employer prior to the end
of the Deferral Period, the Deferral Period shall end at the date of
termination.  The minimum deferral for the Deferral Period shall be based on
the number of months to the date of termination.

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3.5   MODIFICATION OF DEFERRAL COMMITMENT

      Except as provided in Section 5.1(b) below, Deferral Commitments shall
be irrevocable.

                 ARTICLE IV -- DEFERRED COMPENSATION ACCOUNT

4.1   ACCOUNT

      The amounts deferred by a Participant under the Plan any Employer
contributions and Earnings shall be credited to the Participant's Account.
Separate subaccounts may be maintained to reflect different forms of
distribution and levels of vesting and forms of payment.  The Account shall
be a bookkeeping device utilized for the sole purpose of determining the
benefits payable under the Plan and shall not constitute a separate fund of
assets.

4.2   TIMING OF CREDITS; WITHHOLDING

      A Participant's deferred Compensation shall be credited to the
Participant's Account at the time it would have been payable to the
Participant.  Any withholding of taxes or other amounts with respect to
deferred Compensation or earnings that is required by state, federal or local
law shall be withheld from the Participant's nondeferred Compensation to the
maximum extent possible and any remaining amount shall reduce the amount
credited to the Participant's Account.

4.3   SEP MAKEUP CONTRIBUTION

      If as a result of participation in this plan, a Participant's SEP
contribution is reduced. the Company shall credit an amount equal to the
foregone SEP contribution into the Participant's account on the date the SEP
contribution is made.

4.4   DISCRETIONARY CONTRIBUTIONS

      Employer may make Discretionary Contributions to a Participant's
Account.  Discretionary Contributions shall be credited at such times and in
such amounts as the Board in its sole discretion shall determine.

4.5   DETERMINATION OF ACCOUNT

      Each Participant's Account as of each Determination Date shall consist
of the balance of the Account as of the immediately preceding Determination
Date, adjusted as follows:

         (a) NEW DEFERRALS. The Account shall be increased by any deferred
      Compensation credited since such Determination Date.

         (b) ENTRANCE FEE. The Account shall be reduced by the Entrance Fee, if
      any, on deferred Compensation credited since such Determination Date.

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         (c) EMPLOYER CONTRIBUTIONS. The Account shall be increased by any
      discretionary Employer contributions and SEP makeup contribution credited
      since such Determination Date.

         (d) DISTRIBUTIONS. The Account shall be reduced by any benefits
      distributed from the Account to the Participant since such Determination
      Date.

         (e) EARNINGS. The Account shall be increased by the Earnings on the
      average daily balance in the Account since such Determination Date.

4.6   VESTING OF ACCOUNT

      Each Participant shall be vested in the amounts credited to such
Participant's Account and Earnings thereon as follows.

         (a) AMOUNTS DEFERRED. A Participant shall be one hundred percent (100%)
      vested at all times in the amount of Compensation elected to be deferred
      under this Plan and Earnings thereon.

         (b) DISCRETIONARY CONTRIBUTIONS. A Participant's Discretionary
      Contributions and Earnings thereon shall become vested as determined by
      the Board.

         (c) SEP MAKEUP CONTRIBUTIONS. A Participant shall be one hundred
      percent (100%) vested at all times in any SEP makeup contribution and
      earnings thereon.

4.7   STATEMENT OF ACCOUNT

      The Committee shall give to each Participant a Statement showing the
balance in the Participant's Account on a semi-annual basis and at such times
as may be determined by the Committee.

                          ARTICLE V -- PLAN BENEFITS

5.1   DISTRIBUTIONS PRIOR TO TERMINATION OF EMPLOYMENT

      A Participant's Account may be distributed to the Participant prior to
termination of employment as follows:

         (a) IN-SERVICE WITHDRAWALS. A Participant may elect in a Participation
      Agreement to withdraw all or any portion of the amount deferred by that
      Participation Agreement as of a date specified in the election. Such date
      shall not be sooner than five (5) years after the date the Deferral Period
      commences. The amount withdrawn shall not exceed the amount of'
      Compensation deferred plus Earnings on the deferral. Such election shall
      be made at the time the Deferral Commitment is made and can only be
      amended if such amendment is made at least two (2) calendar years before
      the calendar year in which the distribution was scheduled.

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         (b) HARDSHIP WITHDRAWALS. Upon a finding that a Participant has
      suffered a Financial Hardship, the Committee may, in its sole discretion,
      (a) waive or modify the deferral commitment and/or (b) make distributions
      from the Participant's Account. The amount of such a withdrawal shall be
      limited to the amount reasonably necessary to meet the Participant's needs
      resulting from the Financial Hardship. If payment is made due to Financial
      Hardship under this Plan or the 401(k) Plan, the Participant's deferrals
      under this Plan shall cease the remainder of the current calendar year and
      for the following calendar year. Any resumption of the Participant's
      deferrals under the Plan after this period shall be made only at the
      election of the Participant in accordance with Article III herein.

         (c) FORM OF PAYMENT AND TIME. Any distribution pursuant to Section
      5.1(a) or 5.1(b) shall be payable in a lump sum. The distribution shall be
      paid in the case of a partial withdrawal, as provided in the Participation
      Agreement, and in case of a Financial Hardship, within thirty (30) days
      after the determination of a Financial Hardship.

5.2   TERMINATION OF EMPLOYMENT

      Upon a Participant's termination of employment with Employer for any
reason, other than Retirement or Disability, the Employer shall pay the
Participant, in the case of death the Participant's Beneficiary, a lump-sum
benefit equal to the balance (after recalculation if terminated for Cause) in
the Participant's Account.  Such payment will be paid within sixty (60) days
of the termination.

5.3   TERMINATION FOR CAUSE

      If a Participant is terminated for Cause, the Participant's account
shall be recalculated using only the Base Rate regardless of whether the
Employer has met or exceeded its Financial Plan in the current year or past
years.  Any interest which exceeded the Base Rate and had been accrued to the
Participant's Account shall be forfeited.  The recalculated Account balance
shall be paid in a lump sum.

5.4   RETIREMENT BENEFIT

      Retirement benefits shall be paid in the form elected by the
Participant at the time of the deferral commitment.

            (a) Form of benefit payments shall be one (1) of the following:

               (i)   Lump sum,

               (ii)  Annual installments with a maximum of ten (10); or

               (iii) A portion in a lump sum and a portion in annual
            installments.

            (b) Benefits shall commence the last day of February in the calendar
      year following the date of retirement.

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         (c) SMALL ACCOUNT(S). Notwithstanding Section 5.4(a), if a
      Participant's Account is under fifty thousand dollars ($50,000) on the
      valuation date, the benefit shall be paid by a lump sum.

         (d) CHANGE IN FORM AND COMMENCEMENT OF PAYMENT. A Participant may elect
      to file a modified election as to form and timing of payment. To be
      effective such modified election must be filed two (2) calendar years
      prior to the calendar year in which distributions would have occurred if
      the modification had not been made.

5.5   DISABILITY BENEFIT

      At the time of the deferral commitment, the Participant must elect,
upon disability, to receive their benefit either in a lump sum or upon
Retirement as elected under Section 5.4 above.

5.6   ACCELERATED DISTRIBUTION

      Notwithstanding any other provision of the Plan a Participant shall be
entitled to receive, upon written request to the Committee, a lump-sum
distribution equal to ninety percent (90%) of the vested Account balance as
of the Determination Date immediately preceding the date on which the
Committee receives the written request.  The remaining balance shall be
forfeited by the Participant.  The amount payable under this section shall be
paid in a lump sum within sixty-five (65) days following the receipt of the
notice by the Committee from the Participant.  Any Participant who elects to
receive a benefit under this section shall not be eligible to participate in
or defer into this Plan in the future.

5.7   WITHHOLDING FOR TAXES

      To the extent required by the law in effect at the time payments are
made, the Employer shall withhold from the payments made hereunder any Taxes
required to be withheld by the federal or any state or local government,
including any amounts which the Employer determines is reasonably necessary
to pay any generation-skipping transfer tax which is or may become due.  A
beneficiary, however, may elect not to have withholding of federal income tax
pursuant to Section 3405(a)(2), of the Internal Revenue Code, or any
successor provision thereto.

5.8   VALUATION AND SETTLEMENT

      The amount of a lump-sum payment and the initial amount of installments
shall be based on the value of the Participant's Account on the valuation
date.  The valuation date shall be the date on which a lump sum is paid or
the date on which installments commence.

5.9   PAYMENT TO GUARDIAN

      The Committee may direct payment to the duly appointed guardian,
conservator. or other similar legal representative of a Participant or
Beneficiary to whom payment is due.  In the absence of such a legal
representative. the Committee may, in it sole and absolute discretion make
payment to a person having the care and custody of a minor, incompetent or
person

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incapable of handling the disposition of property upon proof satisfactory to the
Committee of incompetency, minority, or incapacity. Such distribution shall
completely discharge the Committee from all liability with respect to such
benefit.

5.10  COMPANY DISCRETIONARY DISTRIBUTION

      The Executive Committee of the Board of Directors may elect to
distribute a Participant's account balance to the Participant if the
Executive Committee deems it to be in the best financial interests of the
Company.

                    ARTICLE VI -- BENEFICIARY DESIGNATION

6.1   BENEFICIARY DESIGNATION

      Subject to Section 6.3, each Participant shall have the right, at any
time, to designate one (1) or more persons or an entity as Beneficiary (both
primary as well as secondary) to whom benefits under this Plan shall be paid
in the event of Participant's death prior to complete distribution of the
Participant's Account.  Each Beneficiary designation shall be in a written
form prescribed by the Committee and shall be effective only when filed with
the Committee during the Participant's lifetime.

6.2   CHANGING BENEFICIARY

      Subject to Section 6.3, any Beneficiary designation may be changed by a
Participant without the consent of the previously named Beneficiary by the
filing of a new designation with the Committee.  The filing of a new
designation shall cancel all designations previously filed.

6.3   COMMUNITY PROPERTY

      If the Participant resides in a community property state, the following
rules shall apply:

         (a) Designation by a married Participant of a Beneficiary other than
      the Participant's spouse shall not be effective unless the spouse executes
      a written consent that acknowledges the effect of the designation, or it
      is established the consent cannot be obtained because the spouse cannot be
      located.

         (b) A married participant's Beneficiary designation may be changed by a
      Participant with the consent of the Participant's spouse as provided for
      in Section 6.3(a) by the filing of a new designation with the Committee.

         (c) If the Participant's marital status changes after the Participant
      has designated a Beneficiary, the following shall apply:

            (i) If the Participant is married at the time of death but was
         unmarried when the designation was made, the designation shall be void
         unless the spouse has consented to it in the manner prescribed in
         Section 6.3(a)

PAGE 12 - EXECUTIVE DEFERRED COMPENSATION PLAN
<PAGE>

            (ii) If the Participant is unmarried at the time of death but was
         married when the designation was made:

                a) The designation shall be void if the spouse was named as
            Beneficiary unless Participant had submitted a change of beneficiary
            listing the former spouse as the beneficiary.

                b) The designation shall remain valid if a nonspouse Beneficiary
            was named.

            (iii) If the Participant was married when the designation was made
         and is married to a different spouse at death, the designation shall be
         void unless the new spouse has consented to it in the manner prescribed
         above.

6.4   NO BENEFICIARY DESIGNATION

      If any Participant fails to designate a Beneficiary in the manner
provided above, if the designation is void, or if the Beneficiary designated
by a deceased Participant dies before the Participant or before complete
distribution of the Participant's benefits, the Participant's Beneficiary
shall be the person in the first of the following classes in which there is a
survivor:

         (a) The Participant's spouse;

         (b) The Participant's children in equal shares, except that if any of
      the children predeceases the Participant but leaves issue surviving. then
      such issue shall take by right of representation the share the parent
      would have taken if living;

         (c) The Participant's estate.

                        ARTICLE VII -- ADMINISTRATION

7.1   COMMITTEE; DUTIES

      This Plan shall be administered by the Administrative Committee.  The
Committee shall be appointed by the Executive Committee of the Board of
Directors.  The Committee shall have the authority to make, amend, interpret
and enforce all appropriate rules and regulations for the administration of
the Plan and decide or resolve any and all questions, including
interpretations of the Plan, as may arise in such administration.  A majority
vote of the Committee members shall control any decision.  Members of the
Committee may be Participants under this Plan.

7.2   AGENTS

      The Committee may, from time to time, employ agents and delegate to
them such administrative duties as it sees fit, and may from time to time
consult with counsel who may be counsel to the Company.

PAGE 13 - EXECUTIVE DEFERRED COMPENSATION PLAN
<PAGE>

7.3   BINDING EFFECT OF DECISIONS

      The decision or action of the Committee with respect to any question
arising out of or in connection with the administration, interpretation and
application of the Plan and the rules and regulations promulgated hereunder
shall be final, conclusive and binding upon all persons having any interest
in the Plan.

7.4   INDEMNITY OF COMMITTEE

      The Company shall indemnify and hold harmless the members of the
Committee against any and all claims, loss, damage, expense or liability
arising from any action or failure to act with respect to this Plan on
account of such person's service on the Committee, except in the cast of
gross negligence or willful misconduct.

                       ARTICLE VIII -- CLAIMS PROCEDURE

8.1   CLAIM

      The Committee shall establish rules and procedures to be followed by
Participants and Beneficiaries in (a) filing claims for benefits, and (b) for
furnishing and verifying proofs necessary to establish the right to benefits
in accordance with the Plan, consistent with the remainder of this Article.
Such rules and procedures shall require that claims and proofs be made in
writing and directed to the Committee.

8.2   REVIEW OF CLAIM

      The Committee shall review all claims for benefits.  Upon receipt by
the Committee of such a claim, it shall determine all facts which are
necessary to establish the right of the claimant to benefits under the
provisions of the Plan and the amount thereof as herein provided within
ninety (90) days of receipt of such claim.  If prior to the expiration of the
initial ninety (90) day period, the Committee determines additional time is
needed to come to a determination on the claim, the Committee shall provide
written notice to the Participant, Beneficiary or other claimant of the need
for the extension, not to exceed a total of one hundred eighty (180) days
from the date the application was received.

8.3   NOTICE OF DENIAL OF CLAIM

      In the event that any Participant, Beneficiary or other claimant claims
to be entailed to a benefit under the Plan, and the Committee determine that
such claim should be denied in whole or in part, the Committee shall, in
writing, notify such claimant that the claim has been denied, in whole or in
part, setting forth the specific reasons for such denial.  Such notification
shall be written in a manner reasonably expected to be understood by such
claimant and shall refer to the specific sections of the Plan relied on,
shall describe any additional material or information necessary for the
claimant to perfect the claim and an explanation of why such material or

PAGE 14 - EXECUTIVE DEFERRED COMPENSATION PLAN
<PAGE>

information is necessary, and where appropriate, shall include an explanation
of how the claimant can obtain reconsideration of such denial.

8.4   RECONSIDERATION OF DENIED CLAIM

         (a) Within sixty (60) days after receipt of the notice of the denial of
      a claim, such claimant or duly authorized representative may request, by
      mailing or delivery of such written notice to the Committee, a
      reconsideration by the Committee of the decision denying the claim. If the
      claimant or duty authorized representative fails to request such a
      reconsideration within such sixty (60) day period. it shall be
      conclusively determined for all purposes of this Plan that the denial of
      such claim by the Committee is correct. If such claimant or duly
      authorized representative requests a reconsideration within such sixty
      (60) day period, the claimant or duly authorized representative shall have
      thirty (30) days after filing a request for reconsideration to submit
      additional written material in support of the claim, review pertinent
      documents, and submit issues and comments in writing.

         (b) After such reconsideration request, the Committee shall determine
      within sixty (60) days of receipt of the claimant's request for
      reconsideration whether such denial of the claim was correct and shall
      notify such claimant in writing of its determination. The written notice
      of decision shall be in writing and shall include specific reasons for the
      decision, written in a manner calculated to be understood by the claimant,
      as well as specific reference to the pertinent Plan provisions on which
      the decision is based. In the event of special circumstances determined by
      the Committee, the time for the Committee to make a decision may be
      extended by an additional sixty (60) days upon written notice to the
      claimant prior to the commencement of the extension. If such determination
      is favorable to the claimant, it shall be binding and conclusive. If such
      determination is adverse to such claimant, it shall be binding and
      conclusive unless the claimant or his duly authorized representative
      notifies the Committee within ninety (90) days after the mailing or
      delivery to the claimant by the Committee of its determination that
      claimant intends to institute legal proceedings challenging the
      determination of the Committee and actually institutes such legal
      proceedings within one hundred eighty (180) days after such mailing or
      delivery.

8.5   EMPLOYER TO SUPPLY INFORMATION

      To enable the Committee to perform its functions, the Employer shall
supply full and timely information to the Committee of all matters relating
to the retirement, death or other cause for termination of employment of all
Participants, and such other pertinent facts as the Committee may require.

PAGE 15 - EXECUTIVE DEFERRED COMPENSATION PLAN
<PAGE>

               ARTICLE IX -- AMENDMENT AND TERMINATION OF PLAN

9.1   AMENDMENT

      The Board may at any time amend the Plan by written instrument, notice
of which is given to all Participants and to Beneficiaries receiving
installment payments, subject to the following;

         (a) PRESERVATION OF ACCOUNT BALANCE. No amendment shall reduce the
      amount accrued in any Account to the date such notice of the amendment is
      given.

         (b) CHANGES IN EARNINGS RATE. No amendment shall reduce the rate of
      earnings to be credited after the date of the amendment to the amount
      already accrued in any Account and any Deferred Compensation credited to
      the Account under Deferral Commitments already in effect on that date.

9.2   EMPLOYER'S RIGHT TO TERMINATE

      The Board may at any time partially or completely terminate the Plan
if, in its judgment, the tax, accounting or other effects of the continuance
of the Plan, or potential payments thereunder would not be in the best
interests of Employer.

         (a) PARTIAL TERMINATION. The Board may partially terminate the Plan by
      instructing the Committee not to accept any additional Deferral
      Commitments. If such a partial termination occurs, the Plan shall continue
      to operate and be effective with regard to Deferral Commitments entered
      into prior to the effective date of such partial termination.

         (b) COMPLETE TERMINATION. The Board may completely terminate the Plan
      by instructing the Committee not to accept any additional Deferral
      Commitments, and by terminating all ongoing Deferral Commitments. If such
      a complete termination occurs, the Plan shall cease to operate and
      Employer shall pay out each Account. Payment shall be made in equal
      monthly installments over the following period, based on the Account
      balance:

<TABLE>
<CAPTION>
             ACCOUNT BALANCE                      PAYOUT PERIOD
       ----------------------------------------------------------
<S>                                                <C>
       Less than $50,000                            Lump Sum
       $50,000 but less than $100,000                3 Years
       More than $100,000                            5 Years
       ----------------------------------------------------------
</TABLE>

      Payments shall commence within sixty-five (65) days after the Board
Terminates the Plan and earnings shall continue to be credited on the unpaid
Account balance at the rate specified in Section 4.5(e).

PAGE 16 - EXECUTIVE DEFERRED COMPENSATION PLAN
<PAGE>

                          ARTICLE X -- MISCELLANEOUS

10.1  UNFUNDED PLAN

      This plan is an unfunded plan maintained primarily to provide deferred
compensate benefits for a select group of management or highly-compensated
employees' within the meaning of Sections 201, 301 and 401 of the Employee
Retirement Income Security Act of 1974, as amended ("ERISA"), and therefore
is exempt from the provisions of Parts 2, 3 and 4 of Title I of ERISA.

10.2  COMPANY AND EMPLOYER OBLIGATIONS

      The obligation to make benefit payments to any Participant under the
Plan shall be a joint and several liability of the Company and the Employer
that employed the Participant.

10.3  UNSECURED GENERAL CREDITOR

      Participants and Beneficiaries shall be unsecured general creditors,
with no secured or preferential right to any assets of Employer or any other
party for payment of benefits under this Plan.  Any life insurance policies
annuity contracts or other property purchased by Employer in connection with
this Plan shall remain its general, unpledged and Unrestricted assets.
Employees obligation under the Plan shall be an unfunded and unsecured
promise to pay money in the future.

10.4  TRUST FUND

      At its discretion, the Company may establish one or more trusts with
such trustees as the Board may approve, for the purpose of providing for the
payment of benefits owed under the Plan.  Although such a trust shall be
irrevocable, its assets shall be held for payment of all the Company's
general creditors in the event of insolvency or bankruptcy.  To the extent
any benefits provided under the Plan are paid from any such trust, Employer
shall have no further obligation to pay them.  If not paid from the trust,
such benefits shall remain the obligation of Employer.

10.5  NONASSIGNABILITY

      Neither a Participant nor any other person shall have any right to
commute, sell, assign, transfer, pledge, anticipate, mortgage or otherwise
encumber, transfer, hypothecate or convey in advance of actual receipt the
amounts, if any, payable hereunder, or any part thereof, which are, and all
rights to which are, expressly declared to be unassignable and
nontransferable.  No part of the amounts payable shall, prior to actual
payment, be subject to seizure or sequestration for the payment of any debts,
judgments, alimony or separate maintenance owed by a Participant or any other
person, nor be transferable by operation of law in the event of a
Participant's or any other person's bankruptcy or insolvency.

PAGE 17 - EXECUTIVE DEFERRED COMPENSATION PLAN
<PAGE>

10.6  NOT A CONTRACT OF EMPLOYMENT

      This Plan shall not constitute a contract of employment between
Employer and the Participant.  Nothing in this Plan shall give a Participant
the right to be retained in the service of Employer or to interfere with the
right of Employer to discipline or discharge a Participant at any time.

10.7  PROTECTIVE PROVISIONS

      A Participant will cooperate with Employer by furnishing any and all
information requested by Employer in order to facilitate the payment of
benefits hereunder, and by taking such physical examinations as Employer may
deem necessary and taking such other action as may be requested by Employer.

10.8  GOVERNING LAW

      The provisions of this Plan shall be construed and interpreted
according to the laws of the Commonwealth of Virginia, except as preempted by
federal law.

10.9  VALIDITY

      In case any provision of this Plan shall be held illegal or invalid for
any reason, said illegality or invalidity shall not affect the remaining
parts hereof, but this Plan shall be construed and enforced as if such
illegal and invalid provision had never been inserted herein.

10.10 NOTICE

      Any notice required or permitted under the Plan shall be sufficient if
in writing and hand delivered or sent by registered or certified mail.  Such
notice shall be deemed as given as of the date of delivery or, if delivery is
made by mail, as of the date shown on the postmark on the receipt for
registration or certification.  Mailed notice to the Committee shall be
directed to the Company's address.  Mailed notice to a Participant or
Beneficiary shall be directed to the individual's last known address in
Employer's records.

PAGE 18 - EXECUTIVE DEFERRED COMPENSATION PLAN
<PAGE>

10.11 SUCCESSORS

      The provisions of this Plan shall bind and inure to the benefit of
Employer and its successors and assigns.  The term successors as used herein
shall include any corporate or other business entity which shall, whether by
merger, consolidation, purchase or otherwise acquire all or substantially all
of the business and assets of Employer, and successors of any such
corporation or other business entity.

                                    AMERICAN MANAGEMENT SYSTEMS, INC.

                                By:
                                    -----------------------------------------

                             Dated:
                                    -----------------------------------------<PAGE>
                                                                    EXHIBIT 10.5

                       AMERICAN MANAGEMENT SYSTEMS, INC.

                  OUTSIDE DIRECTOR DEFERRED COMPENSATION PLAN

                           EFFECTIVE JANUARY 1, 1997
<PAGE>
                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                     Page
                                                                                                                     ----
<S>                                                                                                                     <C>
ARTICLE I - PURPOSE; EFFECTIVE DATE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
  1.1. Purpose  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
  1.2. Effective Date   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

ARTICLE II - DEFINITIONS  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
  2.1. Account  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
  2.2. Actuarial Equivalent   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
  2.3. Base Rate  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
  2.4. Beneficiary  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
  2.5. Board  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
  2.6. Change in Control  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
  2.7. Committee  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
  2.8. Company  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
  2.9. Compensation   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
  2.10. Deferral Commitment   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
  2.11. Deferral Period   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
  2.12. Determination Date  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
  2.13. Disability  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
  2.14. Earnings  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
  2.15. Entrance Fee  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
  2.16. Entrance Fee Base   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
  2.17. Financial Hardship  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
  2.18. Financial Plan  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
  2.19. Participant   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
  2.20. Participation Agreement   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
  2.21. Plan  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
  2.22. Premium Rate  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
  2.23. Retirement  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

ARTICLE III - PARTICIPATION AND DEFERRAL COMMITMENTS  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
  3.1. Eligibility and Participation  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
  3.2. Deferral Commitment  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
  3.3. Limitations on Deferral Commitments  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
  3.4. Modification of Deferral Commitment  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

ARTICLE IV - DEFERRED COMPENSATION ACCOUNT  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
  4.1. Account  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
  4.2. Timing of Credits; Withholding   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
  4.3. Determination of Account   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
  4.4. Vesting of Account   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
  4.5. Statement of Account   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
</TABLE>

                                                                             (i)
<PAGE>

<TABLE>
<S>                                                                                                                    <C>
ARTICLE V - PLAN BENEFITS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
  5.1. Distributions Prior to Termination of Service  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
  5.2. Termination of Service   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
  5.3. Retirement Benefit   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
  5.4. Disability Benefit   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
  5.5. Accelerated Distribution   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
  5.6. Withholding for Taxes  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
  5.7. Valuation and Settlement   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
  5.8. Payment to Guardian  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
  5.9. Company Discretionary Distribution   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

ARTICLE VI - BENEFICIARY DESIGNATION  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
  6.1. Beneficiary Designation  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
  6.2. Changing Beneficiary   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
  6.3. Community Property   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
  6.4. No Beneficiary Designation   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  10

ARTICLE VII - ADMINISTRATION  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  11
  7.1. Committee; Duties  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  11
  7.2. Agents   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  11
  7.3. Binding Effect of Decisions  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  11
  7.4. Indemnity of Committee   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  11

ARTICLE VIII - CLAIMS PROCEDURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  11
  8.1. Claim  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  11
  8.2. Review of Claim  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  12
  8.3. Notice of Denial of Claim  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  12
  8.4. Reconsideration of Denied Claim  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  12
  8.5. Company to Supply Information  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  13

ARTICLE IX - AMENDMENT AND TERMINATION OF PLAN  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  13
  9.1. Amendment  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  13
  9.2. Company's Right to Terminate   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  13

ARTICLE X - MISCELLANEOUS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  14
  10.1. Unfunded Plan   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  14
  10.2. Company Obligations   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  14
  10.3. Unsecured General Creditor  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  14
  10.4. Trust Fund  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  14
  10.5. Nonassignability  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  15
  10.6. Not a Contract  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  15
  10.7. Protective Provisions   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  15
  10.8. Governing Law   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  15
</TABLE>

                                                                            (ii)
<PAGE>

<TABLE>
  <S>                                                                                                                  <C>
  10.9.  Validity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  15
  10.10. Notice   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  15
  10.11. Successors   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  15
</TABLE>

                                                                           (iii)
<PAGE>

                       AMERICAN MANAGEMENT SYSTEMS, INC.

                  OUTSIDE DIRECTOR DEFERRED COMPENSATION PLAN

                      ARTICLE I - PURPOSE; EFFECTIVE DATE

1.1.     PURPOSE

         The Compensation Plan is to provide current tax planning opportunities
as well as supplemental funds for retirement or death for outside directors of
the Company.  It is intended that the Plan will aid in attracting and retaining
directors of exceptional ability by providing them with these benefits.

1.2.     EFFECTIVE DATE

         The Plan is effective as January 1, 1997.

                            ARTICLE II - DEFINITIONS

         For the purposes of this Plan. the following terms shall have the
meanings indicated, unless the context clearly indicates otherwise:

2.1.     ACCOUNT

         "Account" means the device used by the Company to measure and
determine the amount. to be paid to a Participant under the Plan.

2.2.     ACTUARIAL EQUIVALENT

         "Actuarial Equivalent" means equivalence in value- between two or more
forms and/or times of payment based on a determination by an actuary chosen by
the Committee, using sound actuarial assumptions at the time of such
determination.

2.3.     BASE RATE

         "Base Rate" means the effective annual yield of the average of the
Moody's Average Corporate Bond Yield Index for the previous calendar month as
published by Moody's Investor Services, Inc. (or any successor publisher
thereto). or, if such index is no longer published, a substantially similar
index selected by the Board.

2.4.     BENEFICIARY

         "Beneficiary" means the person, persons or entity entitled under
Article VI to receive any Plan benefits payable after a Participant's death.

PAGE 1 - OUTSIDE DIRECTOR DEFERRED COMPENSATION PLAN
<PAGE>

2.5.     BOARD

         "Board" means the Board of Directors of the Company.

2.6.     CHANGE IN CONTROL

         A "Change in Control" means  a Change in Control of a nature that
would be required to be reported (assuming such event has not been "previously
reported") in response to item I (a) of the current report on Form 8-K, as in
effect on the date hereof, pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934, as amended (the "Exchange Act") or any successor
thereto-, provided that, without limitation, such a Change in Control shall be
deemed to have occurred at such time as:.

                 (a)      Any person is or becomes the "beneficial owner" (as
         defined in Rule 13d-3 under the Exchange Act). directly or indirectly,
         of thirty percent (30%) or more of the combined voting power of the
         Company's Voting Securities;

                 (b)      During any period of two (2) consecutive years,
         individuals who at the beginning of such period constitute the Board
         of Directors of the Company, together with any new directors whose
         election, or nomination for election by the shareholders, was approved
         by a vote of at least two-thirds (2/3) of the directors then still in
         office who were either director' at the beginning of the period or
         whose election or nomination for election was previously so approved,
         cease for any reason to constitute at least a majority of the Board of
         Directors of the Company;

                 (c)      The sale by the Company of more than fifty percent
         (50%) of the book value of its assets to a single purchaser or to a
         group of affiliated purchasers; or

                 (d)      The merger or consolidation of the Company in a
         transaction in which the shareholders of the Company receive less than
         fifty percent (50%) of the outstanding voting shares of the continuing
         corporation.  Notwithstanding anything in the foregoing to the
         contrary, no Change in Control shall be deemed to have occurred by
         virtue of any transaction which results in a Participant, or group of
         Participants. acquiring, directly or indirectly, twenty-five percent
         (25%) or more of the combined voting power of the Company's Voting
         Securities.

2.7.     COMMITTEE

         "Committee" means the Administrative Committee appointed to administer
the Plan pursuant to Article VII hereof.

2.8.     COMPANY

         "Company" means American Management Systems, Inc., a Delaware
corporation, or successor thereto.

2.9.     COMPENSATION

PAGE 2 - OUTSIDE DIRECTOR DEFERRED COMPENSATION PLAN
<PAGE>

         "Compensation" means all of the fees including retainer, meeting and
committee meeting fees payable by the Company for services on the Board.

2.10.    DEFERRAL COMMITMENT

         "Deferral Commitment" means a commitment made by a Participant to
defer Compensation pursuant to Article III.

2.11.    DEFERRAL PERIOD

         "Deferral Period" means each calendar year.  The initial Deferral
Period, however, shall be from January 1, 1997, through December 31, 1997.

2.12.    DETERMINATION DATE

         "Determination Date" means the last day of each calendar month.

2.13.    DISABILITY

         "Disability" means a physical or mental condition that, in the opinion
of the Committee, shall prevent the Participant from satisfactorily performing
his usual duties for the Company for a two (2) year period or longer.  The
Committee shall determine the existence of the Disability and may rely on
advice from a medical examiner, medical reports, and/or other evidence
satisfactory to the Committee.

2.14.    EARNINGS

         "Earnings" means the rate of growth credited to an account on each
Determination Date in a calendar year.  The rate shall be the Base Rate unless
the Company meets or exceeds its Financial Plan in a calendar year, in which
case the rate shall be the Premium Rate for all Participants who are not
Retired or not Disabled.

2.15.    ENTRANCE FEE

         "Entrance Fee" means an amount equal to four percent (4%) of any
deferral which is part of the Participant's first Deferral Commitment.  In
subsequent Deferral Periods the Entrance Fee shall equal four percent (4%) of
the amount by which the deferral exceeds the Participant's Entrance Fee Base
less prior deferrals made during the current Deferral Period.  The Executive
Committee of the Board of Directors may waive the four percent (4%) fee at its
discretion if such waiver is deemed to be in the best financial interest of the
Company.

2.16.    ENTRANCE FEE BASE

         "Entrance Fee Base" means for a Deferral Period an amount equal to the
Participant's first Deferral Commitment times the number of Deferral Periods
the Participant has participated in the Plan (including the current Deferral
Period), plus the portion of any subsequent Deferral Commitment subject to the
Entrance Fee times the number of Deferral Periods including, and

PAGE 3 - OUTSIDE DIRECTOR DEFERRED COMPENSATION PLAN
<PAGE>

subsequent to, the payment of any such additional Entrance Fee, less total
deferrals made prior to the current Deferral Period.

2.17.    FINANCIAL HARDSHIP

         "'Financial Hardship"  means severe financial hardship to the
Participant resulting from a sudden and unexpected illness or accident of the
Participant or of a dependent (as defined in Section 152(a) of the Internal
Revenue Code) of the Participant, loss of the Participant's property due to
casualty, or other similar extraordinary and unforseeable circumstances arising
as a result of events beyond the control of the Participant.  The circumstances
that will constitute an unforseeable emergency will depend upon the facts of
each case, but in any case, payment may not be made to the extent that such
hardship is or may be relieved:

                 (a)      Through reimbursement or compensation by insurance or
         otherwise;

                 (b)      By liquidation of the Participant's assets, to the
         extent the liquidation of such assets would not itself cause severe
         financial hardship; or

                 (c)      By cessation of deferrals under the Plan.

2.18.    FINANCIAL PLAN

         The plan approved by the Board of Directors in the beginning of each
year and used for purposes of setting AMS-wide profit sharing goals.

2.19.    PARTICIPANT

         "Participant" means any eligible individual who has elected to defer
Compensation under this Plan.

2.20.    PARTICIPATION AGREEMENT

         "Participation Agreement" means the agreement submitted by a
Participant to the Committee prior to the beginning of a Deferral Period, with
respect to a Deferral Commitment made for such Deferral Period.

2.21.    PLAN

         "Plan" means this Outside Director Deferred Compensation Plan as
amended from time to time.

2.22.    PREMIUM RATE

         "Premium Rate" means the Base Rate plus three percent (3%) (300 basis
points).  Retired Participants shall not be eligible for the Premium Rate after
the date of retirement.  Terminated employees are not eligible for the premium
rate for the year in which they terminate.

PAGE 4 - OUTSIDE DIRECTOR DEFERRED COMPENSATION PLAN
<PAGE>

2.23.    RETIREMENT

         "Retirement" means a termination of service on the Board after the
Participant attains age fifty-five (55).

              ARTICLE III - PARTICIPATION AND DEFERRAL COMMITMENTS

3.1.     ELIGIBILITY AND PARTICIPATION

         ELIGIBILITY.  Eligibility to Participate in the plan shall be limited
to outside directors of the Company.

         PARTICIPATION.  An eligible individual may elect to participate in the
Plan with respect to any Deferral Period by submitting a Participation
Agreement to the Committee by the fifteenth (15th) day of December the month
immediately preceding the beginning of the Deferral Period.

3.2.     DEFERRAL COMMITMENT

         FEE DEFERRAL COMMITMENT.  A Fee Deferral Commitment shall be related
to the fees payable by the Company to a Participant during the Deferral Period.
The amount to be deferred shall be stated as a percentage amount.

3.3.     LIMITATIONS ON DEFERRAL COMMITMENTS

         The following, limitations shall apply to Deferral Commitments:

                 (a)      MINIMUM.  The minimum deferral amount shall be fifty
         percent (5096) of Board lees in the Deferral Period.  The minimum
         Deferral Commitment for a Participant who enters participation after
         the beginning of a Deferral Period shall be based on the number of
         months remaining in the Deferral Period.

                 (b)      MAXIMUM.  The maximum deferral amount shall be one
         hundred percent (100%) of Board fees.

                 (c)      CHANGES IN MINIMUM OR MAXIMUM.  The Committee may
         change the minimum or maximum deferral amounts from time to time by
         giving written notice to all Participants.  No such change may affect
         a Deferral Commitment made prior to the Committee's action.

3.4.     MODIFICATION OF DEFERRAL COMMITMENT

         Except as provided in Section 5.1(b) below, Deferral Commitments shall
be irrevocable.

                   ARTICLE IV - DEFERRED COMPENSATION ACCOUNT

4.1.     ACCOUNT

PAGE 5 - OUTSIDE DIRECTOR DEFERRED COMPENSATION PLAN
<PAGE>

         The amounts deferred by a Participant under the Plan, any Company
contributions and Earnings shall be credited to the Participant's Account.
Separate subaccounts may be maintained to reflect different forms of
distribution and levels of vesting and forms of payment.  The Account shall be
a bookkeeping device utilized for the sole purpose of determining the benefits
payable under the Plan and shall not constitute a separate fund of assets.

4.2.     TIMING OF CREDITS; WITHHOLDING

         A Participant's deferred Compensation shall be credited to the
Participant's Account at the time it would have been payable to the
Participant.  Any withholding of taxes or other amounts with respect to
deferred Compensation or earnings that is required by state, federal or local
law shall be withheld from the Participant's nondeferred Compensation to the
maximum extent possible and any remaining amount shall reduce the amount
credited to the Participant's Account.

4.3.     DETERMINATION OF ACCOUNT

                 (a)      Each Participant's Account as of each Determination
         Date shall consist of the balance of the Account as of the immediately
         preceding Determination Date, adjusted as follows:

                 (b)      NEW DEFERRALS.  The Account shall be increased by any
         deferred Compensation credited since such Determination Date.

                 (c)      ENTRANCE FEE.  The Account shall be reduced by the
         Entrance fee, if any, on deferred Compensation credited since such
         Determination Date.

                 (d)      DISTRIBUTIONS.  The Account shall be reduced by any
         benefits distributed from the Account to the Participant since such
         Determination Date.

                 (e)      EARNINGS.  The Account shall be increased by the
         Earnings on the average daily balance in the Account since such
         Determination Date.

4.4.     VESTING OF ACCOUNT

         A Participant shall be one hundred percent (100%) vested at all times
in the amount of Compensation elected to be deferred under this Plan and
Earnings thereon.

4.5.     STATEMENT OF ACCOUNT

         The Committee shall give to each Participant a statement showing the
balance in the Participant's Account on a semi-annual basis and at such times
as may be determined by the Committee.

PAGE 6 - OUTSIDE DIRECTOR DEFERRED COMPENSATION PLAN
<PAGE>

                          ARTICLE V - PLAN BENEFITS

5.1.     DISTRIBUTIONS PRIOR TO TERMINATION OF SERVICE

         A Participant's Account may be distributed to the Participant prior to
termination of service on the Board as follows:

                 (a)      IN-SERVICE WITHDRAWALS.  A Participant may elect in a
         Participation Agreement to withdraw all or any portion of the amount
         deferred by that Participation Agreement as of a date specified in the
         election.  Such date shall not be sooner than Five (5) years after the
         date the Deferral Period commences.  The amount Withdrawn shall not
         exceed the amount of Compensation deferred plus Earnings on the
         deferral.  Such election shall be made at the time the Deferral
         Commitment is made and can only be amended if such amendment is made
         at least two (2) calendar years before the calendar year in which the
         distribution was scheduled.

                 (b)      HARDSHIP WITHDRAWALS. Upon a finding that a
         Participant has sufferer a Financial Hardship, the Committee may, in
         its sole discretion, (a) waive or modify the deferral commitment
         and/or (b) make distributions from the Participant's Account.  The
         amount of such withdrawal shall be limited to the amount reasonably
         necessary to meet the Participant's needs resulting from the Financial
         Hardship.  If payment is made due to Financial Hardship under this
         Plan, the Participant's deferrals under this Plan shall cease the
         remainder of the current calendar year and for the following calendar
         year.  Any resumption of the Participant's deferrals under the Plan
         after this period shall be made only at the election of the
         Participant in accordance with Article III herein.

                 (c)      FORM OF PAYMENT AND TIME.  Any distribution pursuant
         to Section 5.1(a) or 5.l(b) shall be payable in a lump sum.  The
         distribution shall be paid in the case of a partial withdrawal, as
         provided in the Participation Agreement, and in case of Financial
         Hardship, within thirty (30) days after the determination of a
         Financial Hardship.

5.2.     TERMINATION OF SERVICE

         Upon a Participant's termination of service on the Board for any
reason other than Retirement or Disability, the Company shall pay the
Participant, or, in the case of death, the Participant's Beneficiary, a
lump-sum, benefit equal to the balance in the Participant's Account.  Such
payment will be paid within sixty (60) days of the termination.

5.3.     RETIREMENT BENEFIT

         Retirement benefits shall be paid in the form elected by the
Participant at the time of the deferral commitment.

                 (a)      Form of benefit payments shall be one (1) of the
         following:

                                  (i)      Lump sum;

PAGE 7 - OUTSIDE DIRECTOR DEFERRED COMPENSATION PLAN
<PAGE>

                                  (ii)     Annual installments with a maximum
                          of ten (10); or

                                  (iii)    A portion in a lump sum and a
                          portion in annual installments.

                 (b)      Benefits shall commence the last day of February in
         the calendar year following the date of retirement.

                 (c)      Small Account(s).  Notwithstanding Section 5.3(a), if
         a Participant's Account is under fiery thousand dollars ($50,000) on
         the valuation date, the benefit shall be paid in a lump sum.

                 (d)      Change in Form and Commencement of Payment.  A
         Participant may elect to file modified election as to form and timing,
         of payment  To be effective such modified election must be filed two
         (2) calendar years prior to the calendar year in which distributions
         would have occurred if the modification had not been made.

5.4.     DISABILITY BENEFIT

         At the time of the deferral commitment, the Participant must elect,
upon disability, to receive their benefit either in a lump sum or upon
Retirement as elected under Section 5.3 above.

5.5.     ACCELERATED DISTRIBUTION

         Notwithstanding any other provision of the Plan a Participant shall be
entitled to receive, upon written request to the Committee, a lump-sum
distribution equal to ninety percent (90%) of the vested Account balance as of
the Determination Date immediately preceding the date on which the Committee
receives the written request.  The remaining balance shall be forfeited by the
Participant.  The amount payable under this section shall be paid in a lump sum
within sixty-five (65) days following the receipt of the notice by the
Committee from the Participant.  Any Participant who elects to receive a
benefit under this section shall not be eligible to participate in or defer
into this Plan in the future.

5.6.     WITHHOLDING FOR TAXES

         To the extent required by the law in effect at the time payments are
reads, the Company shall withhold from the payments made hereunder any Taxes
required to be withheld by the federal or ally state or local government,
including any amounts which the Company determines is reasonably necessary to
pay any generation skipping transfer tax which is or may become due A
beneficiary, however, may elect not to have withholding of Federal income tax
pursuant to Section 3405(a)(2) of the Internal Revenue Code, or any successor
provision thereto.

5.7.     VALUATION AND SETTLEMENT

         The amount of a lump-sum payment and the initial amount of
installments shall be based on the value of the Participant's Account on the
valuation date.  The valuation date shall be the date on which a lump sum is
paid or the date on which installments commence.

PAGE 8 - OUTSIDE DIRECTOR DEFERRED COMPENSATION PLAN
<PAGE>

5.8.     PAYMENT TO GUARDIAN

         The Committee may direct payment to the duly appointed guardian,
conservator, or other similar legal representative of a Participant or
Beneficiary to whom payment is due In the absence of such a legal
representative, the Committee may, in it sole and absolute discretion, make
payment to a person having the care and custody of a minor, incompetent or
person incapable of handling the disposition of property upon proof
satisfactory to the Committee of incompetency, minority, or incapacity.  Such
distribution shall completely discharge the Committee from all liability with
respect to such benefit.

5.9.     COMPANY DISCRETIONARY DISTRIBUTION

         The Executive Committee of the Board of Directors may elect to
distribute a Participant's account balance to the Participant if the Executive
Committee deems it to be in the best financial interests of the Company.

                      ARTICLE VI - BENEFICIARY DESIGNATION

6.1.     BENEFICIARY DESIGNATION

         Subject to Section 6.3, each Participant shall have the right, at any
time, to designate or[e or more persons or an entity as Beneficiary (both
primary as well as secondary) to whom benefits under this Plan shall be paid in
the event of Participant's death prior to complete distribution of the
Participant's Account. Each Beneficiary designation shall be in a written form
prescribed by the Committee and shall be effective only when fiend with the
Committee during the Participant's lifetime.

6.2.     CHANGING BENEFICIARY

         Subject to Section 6.3, any Beneficiary designation new be changed by
a Participant without the consent of the previously named Beneficiary by the
filing of a new designation with the Committee. The filing of a new designation
shall cancel all designations previously filed.

6.3.     COMMUNITY PROPERTY

         If the Participant resides in a community property state, the
following rules shall apply

                 (a)      Designation by a roamed Participant of a Beneficiary
         other than the Participant's spouse shall not be effective unless the
         spouse executes a written consent that acknowledges the effect of the
         designation, or it is established the consent cannot be obtained
         because the spouse cannot be located.

                 (b)      A married Participant's Beneficiary designation may
         be changed by a Participant troth the consent of the Participant's
         spouse as provided For in Section 6.3(a) by the filing of a new
         designation with the Committee.

PAGE 9 - OUTSIDE DIRECTOR DEFERRED COMPENSATION PLAN
<PAGE>

                 (c)      If the Participant's marital status changes after the
         Participant has designated a Beneficiary, the following, shall apply:

                                  (i)      If the Participant is marked at the
                          time of death but was unmarried when the designation
                          was made, the designation shall be void unless the
                          spouse has consented to it in the Planner prescribed
                          in Section 6.3(a).

                                  (ii)     If the Participant is unmarried at
                          the time of death but was married when the
                          designation was made:

                                        a)      The designation shall be void
                                  if the spouse was named as Beneficiary unless
                                  Participant had submitted a change of
                                  beneficiary listing the former spouse as the
                                  beneficiary.

                                        b)      The designation shall remain
                                  valid if a nonspouse Beneficiary was named.

                                  (iii)    If the Participant divas married
                          when the designation was made and is married to a
                          different spouse at death, the designation shall be
                          void unless the new spouse has consented to it in the
                          manner prescribed above.

6.4.     NO BENEFICIARY DESIGNATION

         If any Participant fails to designate a Beneficiary in the manner
provided above, if the designation is void, or if the Beneficiary designated by
a deceased Participant dies before the Participant or before complete
distribution of the Participant's benefits. the Participant's Beneficiary shall
be the person in the first of the following classes in which there is a
survivor:

                 (a)      The Participant's spouse;

                 (b)      The Participant's children in equal shares, except
         that if any of the children predeceases the Participant but leaves
         issue surviving. then such issue shall take by right of representation
         the share the parent would have taken if living;

                 (c)      The Participant's estate.

                          ARTICLE VII - ADMINISTRATION

7.1.     COMMITTEE; DUTIES

         This Plan shall be administered by the Administrative Committee.  The
Committee shall be appointed by the Executive Committee of the Board of
Directors.  The Committee shall have the authority to make amend, interpret and
enforce all appropriate rules and regulations for the administration of the
Plan and decide or resolve any and all questions, including interpretations of

PAGE 10 - OUTSIDE DIRECTOR DEFERRED COMPENSATION PLAN
<PAGE>

the Plan, as may arise in such administration.  A majority vote of the
Committee members shall control any decision.  Members of the Committee may be
Participants under this Plan.

7.2.     AGENTS

         The Committee may, from time to time, employ agents and delegate to
them such administrative duties as it sees fit, and may from time to time
consult with counsel who may be counsel to the Company.

7.3.     BINDING EFFECT OF DECISIONS

         The decision or action of the Committee with respect to any question
arising, out of or in connection lavish the administration, interpretation ant
application of the Plan and the rules and regulations promulgated hereunder
shall be final, conclusive and binding upon all persons having any interest in
the Plan.

7.4.     INDEMNITY OF COMMITTEE

         The Company shall indemnity and hold harmless the members of the
Committee against my and all claims, loss. damage, expense or liability arising
from any action or failure to act with respect to this Plan on account of such
person's service on the Committee, except in the case of gross negligence or
willful misconduct.

                        ARTICLE VIII - CLAIMS PROCEDURE

8.1.     CLAIM

         The Committee shall establish rules and procedures to be followed by
Participants and Beneficiaries in (a) filing claims for benefits, and (b) for
furnishing and verifying proofs necessary to establish the right to benefits in
accordance with the Plan, consistent with the remainder of this Article.  Such
rules and procedures shall require that claims and proofs be made in writing
and directed to the Committee.

8.2.     REVIEW OF CLAIM

         The Committee shall review all claims for benefits.  Upon receipt by
the Committee of such a claim, it shall determine all facts which are necessary
to establish the right of the claimant to benefits under the provisions of the
Plan and the amount thereof as herein provided within ninety (90) dam of
receipt of such claim.  If prior to the expiration of the initial ninety (90)
day period, the Committee determines additional time is needed to come to a
determination on the claim, the Committee shall provide Driven notice to the
Participant, Beneficiary or other claimant of the need for the extension, not
to exceed a total of one hundred eighty (180) days from the date the
application Divas received.

8.3.     NOTICE OF DENIAL OF CLAIM

PAGE 11 - OUTSIDE DIRECTOR DEFERRED COMPENSATION PLAN
<PAGE>

         In the event that any Participant, Beneficiary or other claimant
claims to be entitled to a benefit under the Plan, and the Committee determines
that such claim should be denied in whole or in part, the Committee shall, in
writing, notify such claimant that the claim has been denied, in whole or in
part, setting forth the specific reasons for such denial. Such notification
shall be written in a manner reasonably expected to be understood by
such-claimant and shall refer to the specific sections of the Plan relied on,
shall describe any additional material or information necessary for the
claimant to perfect the claim ant an explanation of why such material or
information is necessary, and where appropriate, shall include an explanation
of how the claimant can obtain reconsideration of such denial.

8.4.     RECONSIDERATION OF DENIED CLAIM

                 (a)      Within sixty (60) days after receipt of the notice of
         the denial of a claim, such claimant or duly authorized representative
         may request, bar mailing or delivery of such written notice to the
         Committee, a reconsideration by the Committee of the decision denying
         the claim. If the claimant or duly authorized representative fails to
         request such a reconsideration within such sixty (60) day period, it
         shall be conclusively determined for all purposes of this Plan that
         the dental of such claim by the Committee is correct. If such claimant
         or duly authorized representative requests a reconsideration within
         such sixty (60) day period, the claimant or duly authorized
         representative shall have thirty (30) days after filing a request for
         reconsideration to submit additional written material in support of
         the claim, review pertinent documents, and submit issues and comments
         in writing.

                 (b)      After such reconsideration request, the Committee
         skill determine within sixty (60) days of receipt of the claimant's
         request for reconsideration whether such denial of the claim was
         correct and shall notify such claimant in writing of its
         determination.  The written notice of decision shall be in writing and
         shall include specific reabsorbs for the decision, written in a manner
         calculated to be understood by the claimant, as well as specific
         references to the pertinent Plan provisions on which the decision is
         based. In the event of special circumstances determined by the
         Committee, the time for the Committee to make a decision may be
         extended by an additional sixty (60) days upon written notice to the
         claimant prior to the commencement of the extension.  If such
         determination is favorable to the claimant, it shall be binding and
         conclusive.  If such is adverse to such claimant, it shall be binding
         and conclusive unless the claimant or his duly authorized
         representative notifies the Committee within ninety (90) days after
         the mailing or delivery to the claimant by the Committee of its
         determination that claimant intends to institute legal proceedings
         challenging the determination of the Committee and actually institutes
         such legal proceedings within one hundred eighty (180) days after such
         mailing or delivery.

8.5.     COMPANY TO SUPPLY INFORMATION

         To enable the Committee to perform its functions, the Company shall
supply full and timely information to the Committee of all Platters relating to
the retirement, death or other cause for termination of employment of all
Participants, and such other pertinent facts as the Committee may require.

PAGE 12 - OUTSIDE DIRECTOR DEFERRED COMPENSATION PLAN
<PAGE>

                 ARTICLE IX - AMENDMENT AND TERMINATION OF PLAN

9.1.     AMENDMENT

         The Board may at any time amend the Plan by written instrument, notice
of which is given to all Participants and to Beneficiaries receiving
installment payments, subject to the following:

                 (a)      PRESERVATION OF ACCOUNT BALANCE.  No amendment shall
         reduce the amount accrued in any Account to the date such notice of
         the amendment is given.

                 (b)      CHANGES IN EARNINGS RATE. No amendment shall reduce
         the rate of earnings to be credited after the date or the amendment to
         the amount already accrued in any Account and any Deferred
         Compensation credited to the Account under Deferral Commitments
         already in effect on that date.

9.2.     COMPANY'S RIGHT TO TERMINATE

         The Board may at any time partially or completely terminate the Plan
if, in its judgment, the tax, accounting or other effects of the continuance of
the Plan, or potential pavements thereunder would not be in the best interests
of the Company.

                 (a)      PARTIAL TERMINATION. The Board may partially
         terminate the Plan by instructing the Committee not to accept any
         additional Deferral Commitments.  If such a partial termination
         occurs, the Plan shall continue to operate and be effective with
         regard to Deferral Commitments entered into prior to the effective
         date of such partial termination.

                 (b)      COMPLETE TERMINATION. The Board may completely
         terminate the Plan by instructing the Committee not to accept any
         additional Deferral Commitments, and by terminating all ongoing
         Deferral Commitments. If such a complete termination occurs. the Plan
         shall cease to operate and the Company shall pay out each Account
         Payment shall be Inane in equal monthly installments over the
         following period, based on the Account balance:

<TABLE>
<CAPTION>
         ACCOUNT BALANCE                              PAYOUT PERIOD
---------------------------------------------------------------------------------
         <S>                                          <C>
         Less than $50,000                            Lump Sum
         $50,000 but less than $100,000               3 Years
         More than $100,000                           5 Years
---------------------------------------------------------------------------------
</TABLE>

         Payments shall commence within sixty-five (65) days after the Board
terminates the Plan and earnings shall continue to be credited on the unpaid
Account balance al the rate specified in Section 5.3(b).

PAGE 13 - OUTSIDE DIRECTOR DEFERRED COMPENSATION PLAN
<PAGE>
                           ARTICLE X - MISCELLANEOUS

10.1.    UNFUNDED PLAN

         This plan is an unfunded plan maintainer primarily to provide deferred
compensation benefits for outside directors of the Company and therefore is
exempt from ERISA.

10.2.    COMPANY OBLIGATIONS

         The obligation to make benefit payments to any Participant under the
Plan shall be the liability of the Company.

10.3.    UNSECURED GENERAL CREDITOR

         Participants and Beneficiaries shall toe unsecured general creditors,
with no secured or preferential right to any assets of the Company or any other
party for payment of benefits under this Plan.  Any life insurance policies,
annuity contracts or other property purchased by the Company in connection with
this Plan shall remain its general, unpledged and unrestricted assets. The
Company's obligation under the Plan shall be an unfunded and unsecured promise
to pay money in the future.

10.4.    TRUST FUND

         At its discretion, the Company may establish one or more trusts, with
such trustees as the Board may approve, for the purpose of providing for the
payment of benefits owed under the Plan. Although such a trust shall be
irrevocable. its assets shall be held for payment of all the Company's general
creditors in the event of insolvency or bankruptcy.  To the extent any benefits
provided under the Plan are paid from any such trust, the Company shall have no
further obligation to pay them.  It not paid from the trust such benefits shall
remain the obligation of the Company.

10.5.    NONASSIGNABILITY

         Neither a Participant nor any other person Shall have any right to
commute, sell. assign, transfer pledge, anticipate, mortgage or otherwise
encumber, transfer, hypothecate or convey in advance of actual receipt the
amounts, if any, payable hereunder, or any part thereof, which are, and all
rights to which are, expressly declared to be unassignable and nontransferable.
No part of the amounts payable shall, prior to actual payment, be subject to
seizure or sequestration for the payment of any debts, judgments, alimony or
separate maintenance oared by a Participant or any other person, nor be
transferable by operation of law in the event of a Participant's or any other
person's bankruptcy or insolvency.

10.6.    NOT A CONTRACT

         This Plan shall not constitute an undertaking by the Company that the
Participant shall continue to be a director of the Company for any period of
time.

PAGE 14 - OUTSIDE DIRECTOR DEFERRED COMPENSATION PLAN
<PAGE>

10.7.    PROTECTIVE PROVISIONS

         Participant will cooperate with the Company toy furnishing any and ail
information requested in order to facilitate the payment of benefits hereunder,
and by taking such physical examinations as the Company Ray deem necessary and
taking such other action as may be requested.

10.8.    GOVERNING LAW

         The provisions of this Plan shall be construed and interpreted
according to the laws of the Commonwealth of Virginia, except as preempted by
federal law.

10.9.    VALIDITY

         In case any provision of this Plan shall be held illegal or invalid
for any reason, said illegality or invalidity shall not affect the remaining
parts hereof, but this Plan shall be construed and enforced as if such illegal
and invalid provision had never been inserted herein.

10.10.   NOTICE

         Any notice required or permitted under the Plan shall be sufficient if
in writing and hard delivered or sent by registered or certified mail.  Such
notice shall be decreed as given as of the date of delivery or, if delivery is
made by mail, as of the date shown on the postmark on the receipt for
registration or certification.  Mailed notice to the Committee shall be
directed to the Company's address.  Mailed notice to a Participant or
Beneficiary shall be directed to the individual's last known address in the
Company's records.

10.11.   SUCCESSORS

         The provisions of this Plan shall bind and inure to the benefit of The
Company and its successors and assigns.  The term successors as used herein
shall include any corporate or other business entity which shall, whether by
merger, consolidation, purchase or otherwise acquire all or substantially all
of the business and assets of the Company, and successors of any such
corporation or other business entity.

                                            AMERICAN MANAGEMENT SYSTEMS, INC.

                                            By:
                                                -------------------------------
                                            Dated:
                                                   ----------------------------

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