Document:

MODIFICATION NUMBER ONE
                             TO THE PROMISSORY NOTE
Policy Management Systems Corporation
One PMSC Center
Blythewood, SC, South Carolina 29016
(Individually and collectively, "Borrower")

First Union National Bank
201 S. College Street
Charlotte, North Carolina 28288
(Hereinafter referred to as the "Bank")

THIS  AGREEMENT  is  entered into as of October 15, 1999 by and between Bank and
Borrower.

                                    RECITALS
Bank  is  the  holder  of  a Promissory Note executed and delivered by Borrower,
dated  July  21,  1999,  in  the  original  principal amount of $40,000,000 (the
"Note");  and
Borrower  and  Bank  have  agreed  to  modify  the terms of the Promissory Note.
In  consideration  of  Bank's  continued  extension of credit and the agreements
contained  herein,  the  parties  agree  as  follows:
                                    AGREEMENT
ACKNOWLEDGEMENT  OF  BALANCE.  Borrower  acknowledges  that  the  most  recent
Commercial  Loan  Invoice sent to Borrower with respect to the obligations under
the  Note  is  correct.
MODIFICATIONS.
1.     The  Note  is  hereby  modified  by  deleting  the provisions in the Note
establishing  the  repayment terms and substituting the following in their place
and  stead:
REPAYMENT  TERMS.  The  Note  shall  be  due  and payable in full, including all
principal  and  accrued  interest,  on  October  29,  1999.
ACKNOWLEDGMENTS.  Borrower  acknowledges and represents that the Note, as hereby
amended, is in full force and effect without any defense, counterclaim, right or
claim  or  set-off;  that,  after giving effect to this Agreement, no default or
event  that  with  the  passage  of  time or giving of notice would constitute a
default  under  the  Note  has occurred; that all representations and warranties
contained  in  the  Note are true and correct as of this date; that Borrower has
taken  all  necessary  action  to  authorize  the execution and delivery of this
Agreement;  and  that this Agreement is a modification of an existing obligation
and  is  not  a  novation.

<PAGE>
MISCELLANEOUS.  This  Agreement  shall  be  construed  in  accordance  with  and
governed by the laws of the applicable state as originally provided in the Note,
without  reference  to that state's conflicts of law principles.  This Agreement
and  the  Note  constitute the sole agreement of the parties with respect to the
subject  matter  thereof  and supersede all oral negotiations and prior writings
with respect to the subject matter thereof.  No amendment of this Agreement, and
no  waiver of any one or more of the provisions hereof shall be effective unless
set  forth  in  writing  and  signed  by  the  parties  hereto.  The illegality,
unenforceability  or  inconsistency of any provision of this Agreement shall not
in  any  way affect or impair the legality, enforceability or consistency of the
remaining provisions of this Agreement or the Note.  This Agreement and the Note
are  intended  to  be  consistent.  However, in the event of any inconsistencies
among  this  Agreement and Note, the terms of this Agreement, and then the Note,
shall control.  This Agreement may be executed in any number of counterparts and
by  the different parties on separate counterparts.  Each such counterpart shall
be  deemed  an original, but all such counterparts shall together constitute one
and  the same agreement.  Terms used in this Agreement which are capitalized and
not  otherwise  defined herein shall have the meanings ascribed to such terms in
the  Note.
IN  WITNESS  WHEREOF,  the undersigned have signed and sealed this Agreement the
day  and  year  first  above  written.

Policy Management Systems Corporation
Taxpayer Identification Number: 57-0723125
                               -----------

CORPORATE     By:_/s/ James J. McGovern
                  ---------------------
SEAL     Senior Vice President

     First Union National Bank

CORPORATE     By:__/s/_________________
                   ---
SEAL     Title:__________________MODIFICATION NUMBER TWO
                             TO THE PROMISSORY NOTE
Policy Management Systems Corporation
One PMSC Center
Blythewood, SC, South Carolina 29016
(Individually and collectively, "Borrower")

First Union National Bank
201 S. College Street
Charlotte, North Carolina 28288
(Hereinafter referred to as the "Bank")

THIS  AGREEMENT  is  entered into as of October 28, 1999 by and between Bank and
Borrower.

                                    RECITALS
Bank  is  the  holder  of  a Promissory Note executed and delivered by Borrower,
dated  July  21,  1999,  in  the  original  principal amount of $40,000,000 (the
"Note");  and
Borrower  and  Bank  have  agreed  to  modify  the terms of the Promissory Note.
In  consideration  of  Bank's  continued  extension of credit and the agreements
contained  herein,  the  parties  agree  as  follows:
                                    AGREEMENT
ACKNOWLEDGEMENT  OF  BALANCE.  Borrower  acknowledges  that  the  most  recent
Commercial  Loan  Invoice sent to Borrower with respect to the obligations under
the  Note  is  correct.
MODIFICATIONS.
1.     The  Note  is  hereby  modified  by  deleting  the provisions in the Note
establishing  the  repayment terms and substituting the following in their place
and  stead:
REPAYMENT  TERMS.  The  Note  shall  be  due  and payable in full, including all
principal  and  accrued  interest,  on  November  5,  1999.
ACKNOWLEDGMENTS.  Borrower  acknowledges and represents that the Note, as hereby
amended, is in full force and effect without any defense, counterclaim, right or
claim  or  set-off;  that,  after giving effect to this Agreement, no default or
event  that  with  the  passage  of  time or giving of notice would constitute a
default  under  the  Note  has occurred; that all representations and warranties
contained  in  the  Note are true and correct as of this date; that Borrower has
taken  all  necessary  action  to  authorize  the execution and delivery of this
Agreement;  and  that this Agreement is a modification of an existing obligation
and  is  not  a  novation.

<PAGE>
MISCELLANEOUS.  This  Agreement  shall  be  construed  in  accordance  with  and
governed by the laws of the applicable state as originally provided in the Note,
without  reference  to that state's conflicts of law principles.  This Agreement
and  the  Note  constitute the sole agreement of the parties with respect to the
subject  matter  thereof  and supersede all oral negotiations and prior writings
with respect to the subject matter thereof.  No amendment of this Agreement, and
no  waiver of any one or more of the provisions hereof shall be effective unless
set  forth  in  writing  and  signed  by  the  parties  hereto.  The illegality,
unenforceability  or  inconsistency of any provision of this Agreement shall not
in  any  way affect or impair the legality, enforceability or consistency of the
remaining provisions of this Agreement or the Note.  This Agreement and the Note
are  intended  to  be  consistent.  However, in the event of any inconsistencies
among  this  Agreement and Note, the terms of this Agreement, and then the Note,
shall control.  This Agreement may be executed in any number of counterparts and
by  the different parties on separate counterparts.  Each such counterpart shall
be  deemed  an original, but all such counterparts shall together constitute one
and  the same agreement.  Terms used in this Agreement which are capitalized and
not  otherwise  defined herein shall have the meanings ascribed to such terms in
the  Note.
IN  WITNESS  WHEREOF,  the undersigned have signed and sealed this Agreement the
day  and  year  first  above  written.

Policy Management Systems Corporation
Taxpayer Identification Number: ___-___________

CORPORATE     By:/s/____________________________________
                 ---
SEAL     __________ President

     First Union National Bank

CORPORATE     By:/s/_______________________________________
                 ---
SEAL     Title:______________________EMPLOYEE  STOCK  OPTION/NON-COMPETE  AGREEMENT

THIS  EMPLOYEE  STOCK  OPTION/NON-COMPETE  AGREEMENT  ("the  Agreement") is made
effective  as  of  May  11, 1999, by and between ______________ ("EMPLOYEE") and
Policy  Management  Systems  Corporation  ("PMSC").

     W  I  T  N  E  S  S  E  T  H:

WHEREAS,  EMPLOYEE  has  been  employed by Policy Management Systems Corporation
A/S,  PMSC's Danish subsidiary,  in a position of significant responsibility and
PMSC  desires  to recognize EMPLOYEE'S contribution to Policy Management Systems
Corporation A/S by making EMPLOYEE an "Eligible Person" as defined in the Policy
Management  Systems  Corporation  1999  Stock Option Plan ("Plan") and therefore
eligible  to  be  granted  Options  as  defined  therein;  and

WHEREAS,  EMPLOYEE has developed and will continue to develop intimate knowledge
of  PMSC's  business practices, which, if exploited by EMPLOYEE in contravention
of  this  Agreement,  could  seriously,  adversely  and  irreparably  affect the
business  of  PMSC;  and

WHEREAS,  EMPLOYEE  and  PMSC each desire to induce the other to enter into this
Agreement;  and

WHEREAS,  PMSC  would  not  make  EMPLOYEE  an Eligible Person in the event that
EMPLOYEE refused to agree to the terms and conditions of this Agreement and thus
EMPLOYEE  would  not  be  eligible  to  receive  Options  under  the  Plan;

NOW,  THEREFORE,  in  consideration  of the premises and the mutual promises and
covenants  of  the  parties  hereto,  EMPLOYEE  and  PMSC  agree  as  follows:

 1.     Grant.  Effective  May  11,  1999,  PMSC grants EMPLOYEE "non-qualified"
        -----
Options  to purchase up to _________ shares of PMSC common stock pursuant to the
Plan.  Non-qualified  options  are  subject to tax upon exercise as set forth in
paragraph  6  below.

2.     Price  and  Expiration.  The  option price of the shares subject to these
       ----------------------
Options  is the closing price of the stock on the New York Stock Exchange on the
date  of  grant, i.e., $40.125.  These Options must be exercised within ten (10)
years  of  the  effective  date  of  this  Agreement  or  they  expire.

 3.     Availability  for  Exercise.  25%  of  the shares subject to the Options
        ---------------------------
granted  will  become  available for exercise at the end of each of the four (4)
years  following  the effective date of this Agreement.  For example 25% of the
total number of Options granted will be available for exercise beginning May 11,
2000;  50%  will  be  available for exercise beginning May 11, 2001; 75% will be
available  for  exercise  beginning  May  11,  2002;  and  100%  will

<PAGE>
be available for exercise beginning May 11, 2003.  Once Options become available
for  exercise,  they  will  remain available for exercise in accordance with the
terms  of  the  Plan  unless  they  expire.

3a.     Restriction  on  Exercise.  Notwithstanding  the  foregoing,  (a)  the
        -------------------------
Options  hereby  granted  shall not be exercisable until such time as the common
stock  to  be  issued  on  exercise of the Options has been registered under the
Securities  Act  of 1933 or PMSC has otherwise qualified such issuance of shares
under  an  exemption  from  registration  under  said  Act; and (b) no more than
one-third  of the total number of Options hereby granted may be exercised in any
calendar  year; provided however, all vested Options may be exercised regardless
of  the  one-third  limit  per  calendar  year  after  the  earlier  of:

     (i)          May  11,  2007;

     (ii)          a  Change  in  Control  as  defined  in  the  Plan;  or

(iii)          EMPLOYEE's  "retirement",  as  defined  in  the Policy Management
Systems  Corporation  401(k)  Retirement  Savings  Plan.

 4.     Change in Control.  If there is a Change in Control of PMSC prior to the
        -----------------
Expiration Date, the     Options shall vest and become exercisable in accordance
with  the  provisions  of  Section  16  of  the  Plan.

 5.     Order  of  Exercise.  The Options may be exercised without regard to the
        -------------------
order  in  which  these and any other Options were granted and without regard to
any  unexpired  and  unexercised qualified, Incentive Stock Options ("ISO's") or
other  non-qualified  options.

 6.     Tax  Liability.  The  tax liability which EMPLOYEE may incur relating to
        --------------
these  Options  is  described below based upon present law and regulations which
are  subject  to  change.  Taxes  incurred  are:

+     when  options  are  granted  -  none
      ---------------------------

+     when  options are exercised - the difference between the fair market value
      ---------------------------
of  the  stock  at  the  date of exercise of an Option and the option price is a
capital  gain  but  generally will be treated as ordinary income during the year
the  Option  is  exercised.  Such  tax liability is created at the time EMPLOYEE
exercises  an  Option  and  PMSC  is  required to collect withholding taxes from
EMPLOYEE.  Federal  income  taxes  (computed  at  a  rate  of  28%  of the above
described  difference)  and  FICA  and  state  income  taxes  (computed  at  the
applicable rate of the above described difference) are withheld.  For example if
the option price is $33.00 and the fair market value at the date of the exercise
is  $38.00,  the  difference  is  $5.00, and assuming an applicable FICA rate of
7.65%  and  state  income tax rate of 7%, along with the 28% federal income tax,
the

<PAGE>
Company  would  collect  a  tax  of  $2.13  per  share  from  EMPLOYEE.

+     when shares are sold - the difference between the fair market value at the
      --------------------
date  of  exercise  (the  $38.00  in  the  above example) and the price at which
EMPLOYEE  sells the stock is treated the same as above described during the year
in  which  EMPLOYEE sells the stock purchased by exercise of his or her Options.

 7.     Exercise  and  Payment.  Exercises  of  Options  shall  only  be handled
        ----------------------
pursuant  to  the Instructions set forth on the last page of this Agreement.  To
exercise  these  Options,  EMPLOYEE  shall  make payment in full to PMSC for the
option  price of the shares to be purchased plus the combined (federal, FICA and
state)  tax liability EMPLOYEE incurs. Such taxes paid to PMSC will be forwarded
to  the  Internal  Revenue  Service  and  appropriate  state  tax commission and
credited  to  EMPLOYEE  in  the same manner as the withholding tax on EMPLOYEE's
salary.  EMPLOYEE's  actual tax will depend upon the overall tax rate calculated
when  EMPLOYEE  prepares  his or her tax returns.  EMPLOYEE should consult a tax
professional  regarding  questions  about  EMPLOYEE's  actual  tax  liability.

 8.     Noncompetition.  In  consideration  of  the  Options  hereby  granted,
        --------------
EMPLOYEE covenants and agrees that EMPLOYEE shall devote his or her best efforts
to  furthering  the  best interests of PMSC and that for the one (1) year period
from  the  effective date hereof, and if EMPLOYEE separates from employment with
PMSC  for  any  reason  within said one (1) year period, then for a one (1) year
period  from  the  date  of  such separation from employment, EMPLOYEE shall not
"Compete"  with  PMSC.  The  region  within which EMPLOYEE agrees not to Compete
with  PMSC  is  the  United States, Canada and those countries in which PMSC has
customers  or  clients  as of the date of EMPLOYEE's separation from employment.
For  the  purpose  of this Agreement, the term "Compete" shall have its commonly
understood  meaning  which  shall  include, but not be limited by, the following
items  with  respect  to  PMSC's  insurance application software licensing, data
processing,  consulting  and  information  services  businesses  and  any  other
businesses  carried  on  by  PMSC  at  the  time  of  EMPLOYEE's separation from
employment:

  (i)          soliciting  or  accepting as a client or customer any individual,
partnership,  corporation,  trust  or association that was a client, customer or
actively  sought  after prospective client or customer of PMSC during the twelve
(12)  calendar  month  period  immediately  preceding  the  date  of  EMPLOYEE's
separation  from  employment;

 (ii)          acting  as  an  employee,  independent  contractor,  agent,
representative,  consultant, officer, director, or otherwise affiliated party of
any  entity  or  enterprise  which  is  competing  with PMSC in offering similar
application  software  or  services  to  parties  described  in  (i)  above;  or

(iii)          participating  in  any  such competing entity or enterprise as an
owner,  partner,

<PAGE>
limited  partner,  joint  venturer, creditor or stockholder (except as an equity
holder  holding  less  than  a  one  percent  (1%)  interest).

 9.     Non-Hiring.  During  EMPLOYEE'S employment with PMSC and for a period of
        ----------
three  (3)  years  after  separation  from such employment, EMPLOYEE agrees that
EMPLOYEE  shall  under  no  circumstances  hire, attempt to hire or assist or be
involved in the hiring of any employee of PMSC either on EMPLOYEE'S behalf or on
behalf of any other person, entity or enterprise.  Also, for a similar period of
time,  EMPLOYEE  agrees  to  not  communicate  to  any  such  person,  entity or
enterprise the names, addresses or any other information concerning any employee
of  PMSC  or  any  past,  present  or  prospective  client  or customer of PMSC.

10.     Equitable  Relief.  EMPLOYEE  acknowledges  (i)  that  EMPLOYEE'S skill,
        -----------------
knowledge,  ability  and  expertise  in  the  business  described herein is of a
special,  unique,  unusual,  extraordinary,  and/or intellectual character which
gives  said skill, etc. a peculiar value; (ii) that PMSC could not reasonably or
adequately  be  compensated  in  damages  in an action at law for breach of this
Agreement;  and  (iii)  that a breach of any of the provisions contained in this
Agreement  could  be  extremely  detrimental  to  PMSC  and  could  cause  PMSC
irreparable  injury  and  damage.  Therefore, EMPLOYEE agrees that PMSC shall be
entitled,  in addition to any other remedies it may have under this Agreement or
otherwise, to preliminary and permanent injunctive and other equitable relief to
prevent  or  curtail  any  breach  of this Agreement; provided, however, that no
specification in this Agreement of a specific legal or equitable remedy shall be
construed  as  a waiver of or prohibition against the pursuing of other legal or
equitable  remedies  in  the  event  of  such  a  breach.

11.     Breach  of  Agreement.  EMPLOYEE  agrees  that  in  the  event  EMPLOYEE
        ---------------------
breaches any provision of this Agreement, PMSC shall be entitled, in addition to
any other remedies it may have under this Agreement, to offset, to the extent of
any  liability,  loss,  damage  or  injury from such breach, any payments due to
EMPLOYEE  pursuant  to  his  or  her  employment  with  PMSC.

12.     Employment  Understanding.  This  Agreement  constitutes  the  entire
        -------------------------
agreement  between  the  parties  with  regard to the subject matter hereof, and
there  are  no  agreements,  understandings,  restrictions,  warranties  or
representations  between  the parties relating to said subject matter other than
those  set  forth  or  provided for herein or in any Agreement Not To Divulge or
employment  agreement  between  PMSC and EMPLOYEE.  It is understood that PMSC's
and  EMPLOYEE's relationship is one of  "at will" employment unless EMPLOYEE and
PMSC  have entered into a written employment agreement which provides otherwise.
This Agreement shall not affect, or be affected by, any employment agreement, if
any,  between  PMSC and EMPLOYEE.  It is understood further that the granting of
Options  under  this  Agreement  does not entitle EMPLOYEE to receive additional
Option  grants  in  future  years.

<PAGE>
13.     General.  In the event that any provision of this Agreement or any word,
        -------
phrase,  clause,  sentence  or  other  portion  thereof  (including,  without
limitation,  the geographical and temporal restrictions contained herein) should
be held to be unenforceable or invalid for any reason, such provision or portion
thereof  shall  be  modified  or  deleted  in  such  a manner so as to make this
Agreement  enforceable  to  the  fullest extent permitted under applicable laws.
All  references  to  PMSC  shall  include  its subsidiaries as applicable.  This
Agreement  shall  inure  to  the  benefit  of and be enforceable by PMSC and its
successors  and  assigns.  No  provision  of  this  Agreement  may  be  changed,
modified, waived or terminated, except by an instrument in writing signed by the
party  against  whom  the  enforcement  of  such  is  sought.  No  waiver of any
provision  or provisions of this Agreement shall be deemed or shall constitute a
waiver  of  any  other  provision,  whether or not similar, nor shall any waiver
constitute  a continuing waiver.  Headings in this Agreement are inserted solely
as a matter of convenience and reference and are not a part of this Agreement in
any substantive sense.  This Agreement may be executed in two counterparts, each
of  which  will  take  effect as an original and shall evidence one and the same
Agreement.

14.     Plan  Controls.  In  the event of any discrepancy between this Agreement
        --------------
and  the  Plan  as  to  the  terms and conditions of the Options, the Plan shall
control.

15.     Governing  Law.  The  terms  of  this Agreement shall be governed by and
        --------------
construed  in  accordance  with  the  laws  of  the  State  of  South  Carolina.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective as
of  the  date  first  above  written.

POLICY  MANAGEMENT  SYSTEMS  CORPORATION
"PMSC"

BY:  _/s/  Stephen  G.  Morrison
      --------------------------
               Stephen  G.  Morrison

TITLE:   Executive  Vice  President
         --------------------------

EMPLOYEE

_/s/
 ---
(Signature)

(Type  or  Print  Name)

____________________________________
(Date  Signed  by  Employee)

<PAGE>
                             SCHEDULE OF PARTICULARS
                          FOR NAMED EXECUTIVE OFFICERS
                 RE: EMPLOYEE STOCK OPTION/NON-COMPETE AGREEMENT

NAMED EXECUTIVE                    NUMBER
OFFICER                         GRANTED

Michael D. Gantt                    50,000
Harald J. Karlsen                      7,500

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