Document:

POLICY MANAGEMENT SYSTEMS CORPORATION

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

     Award Agreement, dated as of February 8, 1999 (the "Date of Grant") between
POLICY  MANAGEMENT  SYSTEMS  CORPORATION,  a  South  Carolina  corporation  (the
"Company"),  and  MICHAEL D. GANTT (the "Participant").  This Award Agreement is
pursuant  to  the  terms  of  the Company's Restricted Stock Ownership Plan (the
"Plan").  The applicable terms of the Plan are incorporated herein by reference,
including  the  definition  of  terms  contained  in  the  Plan.
     Section 1.  Restricted Stock Award.  The Company grants to the Participant,
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on the terms and conditions hereinafter set forth, a Restricted Stock Award with
respect  to  849  SHARES  of  the  Common  Stock of the Company (the "Restricted
Stock").
Section  2.  Vesting  of  Restricted Stock.  Subject to Sections 3 and 4 hereof,
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the  Restricted  Stock  Award  will vest and become payable over a five (5) year
period  in 20 percent increments, with the vesting dates being January 1 of each
of  the  five  calendar  years  following  the  year in which the Award is made,
provided that the Participant remains as an Employee of the Company on each such
date.
            Section 3.  Termination of Employment.  If the Participant's
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employment is terminated by reason of Retirement, Disability or Death, all
unvested shares of Restricted Stock shall become immediately vested and payable.
In the event a Participant voluntarily terminates his employment with the
Company prior to full vesting of any outstanding Award under the Plan, any
unvested portion of such Award will be immediately forfeited.  If the employment
of a Participant is terminated by the Company for Cause prior to full vesting of
any outstanding Award, any unvested portion of such Award will be immediately
forfeited.  If the employment of a Participant is terminated by the Company
other than for Cause prior to full vesting of any outstanding Award: (I) any
unvested portion of a Stock Uplift included in such Award will be immediately
forfeited (applying the shares covered by the Stock Uplift on a pro-rata basis
over the vesting period); and (ii) any unvested portion of the remainder of the
Award shall be immediately vested and payable.

        Section  4.  Change  of  Control.  All  shares of Restricted Stock shall
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become  fully and immediately vested and payable upon the occurrence of a Change
of  Control  of  the  Company prior to any scheduled vesting date as provided in
Section  2  hereof,  provided  that  the  Participant remains an Employee of the
Company  on  the  date  of  the  Change  in  Control.
            Section  5.  Rights  as  a  Shareholder.  Subject  to  the otherwise
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applicable provisions of the Plan and this Award Agreement, the Participant will
have  all  rights  of  a  shareholder with respect to shares of Restricted Stock
granted to the Participant hereunder, including the right to vote the shares and
receive all dividends and other distributions paid or made with respect thereto.

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           Section  6.  Restrictions  on  Transfer.  Neither  this Award nor any
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shares  of  the  Restricted  Stock  covered  hereby  may  be  sold,  assigned,
transferred,  encumbered,  hypothecated or pledged by the Participant, otherwise
than  to  the  Company,  unless  as  of  the  date of any such sale, assignment,
transfer,  encumbrance, hypothecation or pledge, such shares of Restricted Stock
to  be  thus  disposed  of  have  become  vested  in  accordance with this Award
Agreement.
             Section  7.  Award Subject to Plan.  This Award  and the Restricted
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Stock  acquired  hereunder  are subject to the Plan, the terms and provisions of
which, as it may be amended from time to time, are hereby incorporated herein by
reference.  In  the  event of a conflict between any term or provision contained
herein  and  a  term or provision of the Plan, the Plan will govern and prevail.
         Section 8.  Tax Withholding.  The Company's obligation to make payments
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in  respect  of  Restricted  Stock is subject to the making of provision for the
payment or withholding of any taxes from the participant required to be withheld
pursuant  to any applicable law in respect of the receipt or lapse of forfeiture
restrictions  with  respect to such shares.  Section 12.4 of the Plan sets forth
provisions  relating  to  tax withholding for Participants subject to Rule 16b-3
promulgated  by the United States Securities and Exchange Commission pursuant to
the  Securities  and  Exchange  Act  of  1934.
            Section 9.   Section 83(b) Election.  The participant shall promptly
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(and  not  later  than  30  days  of  the date hereof) notify the Company if the
Participant  makes an election under Section 83(b) of the Internal Revenue Code.
1           Section  10.  Changes  in  Common  Stock.  Any  right  hereunder  in
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respect  of the Company s Common Stock to which the Restricted Stock shall apply
in  the same respect to any other shares of stock of the Company  into which the
Common  Stock  has  been  exchanged  or  converted into, or which were issued in
respect  thereof, pursuant to any recapitalization or other event referred to in
Section  3.2  of the Plan, as determined by the Committee in accordance with the
Plan.
             Section  11.  No  Right  of  Employment.  Nothing  in  this  Award
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Agreement shall confer upon the Participant any right to continue as an Employee
of  the  Company or to interfere in any way with the right of the Company or the
shareholders  of  the  Company  to terminate the Participant's employment at any
time.
             Section  12.  Notices.  Any  notice  hereunder  by  the Participant
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shall  be  given  to the Company in writing and such notice shall be deemed duly
given  only  upon  receipt  thereof  at the Company's office at One PMSC Center,
Blythewood,  South  Carolina, 29016, or at such other address as the Company may
designate  by  notice  to  the Participant.  Any notice hereunder by the Company
shall  be  given  to  the Participant in writing and such notice shall be deemed
duly given only upon receipt thereof at such address as the Participant may have
on  file  with  the  Company.
        Section  13.  Construction.  The  Committee shall have the discretionary
        -----------   ------------
authority  for  the  interpretation and construction of this Award Agreement, as
and  in  the  manner  set  forth  in  Section  4.2  of  the  Plan.

<PAGE>
         Section  14.  Governing  Law.  This  Award Agreement shall be construed
         -----------   --------------
and enforced in accordance with the laws of the State of South Carolina, without
giving  effect  to  the  choice  of  law  principles  thereof.

POLICY MANAGEMENT SYSTEMS CORPORATION

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

PARTICIPANT

   /s/ Michael D. Gantt
    --------------------
Name:     Michael  D.  GanttPOLICY MANAGEMENT SYSTEMS CORPORATION

                      CHANGE IN CONTROL SEVERANCE PAY PLAN
                              FOR SELECT EMPLOYEES

1.     PURPOSE

This  Policy Management Systems Corporation Change in Control Severance Pay Plan
for  Select  Employees  has  been  established by the Company to provide for the
payment  of  severance  pay  and benefits to Eligible Employees whose employment
with  the  Company or any other Participating Employer terminates due to certain
conditions  created  by  a Change in Control of the Company.  The purpose of the
Plan  is  to  assure a continuity in operations of the Company in the event of a
Change  in  Control  by allowing employees to focus on their responsibilities to
the  Company  knowing  that they have certain financial security in the event of
their  termination  of employment.  The accomplishment of this purpose is in the
best  interests  of  the  Company  and  its  shareholders.

2.     DEFINITIONS

The  terms  defined  in  this  Section  2  shall  have the meanings given below:

a.     "Annual  Base  Salary"  means  an  Eligible  Employee's gross annual base
salary before any deductions, exclusions or any deferrals or contributions under
any  Participating  Employer  plan  or program, but excluding bonuses, incentive
awards,  or  compensation,  employee  benefits  or  any other non-salary form of
compensation.

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

c.     "Change  in  Control"  has  the  meaning  given  in  Section  3.

d.     "Code"  means  the  Internal  Revenue  Code  of  1986,  as  amended.

e.     "Committee"  means the Compensation Committee of the Board, or such other
committee appointed by the Board to perform the functions of the Committee under
the  Plan.

f.     "Covered  Termination"  has  the  meaning  given  in  Section  6.

g.     "Company"  means  Policy Management Systems Corporation, a South Carolina
corporation.

h.     "Eligible  Employee" means any member of the management of the Company or
any  other  Participating  Employer  who is designated by the Board from time to
time  as  being  eligible  to  participate  in  the  Plan.
i.     "ERISA"  means  the  Employee  Retirement Income Security Act of 1974, as
amended.

j.     "Exchange  Act"  means  the  Securities Exchange Act of 1934, as amended.

k.     "Participating  Employer"  has  the  meaning  given  in  Section  4.

l.     "Plan" means this Policy Management Systems Corporation Change in Control
Severance  Pay  Plan  for  Select  Employees.

m.     "Severance  Period" means the three (3) year period immediately following
a  Covered  Termination.

3.     CHANGE  IN  CONTROL

For purposes of the Plan, a "Change in Control" means the occurrence of one of
the following events:

(a)     any  "person"  (as  such  term  is  defined  in Section 3 (a) (9) of the
Exchange  Act  and as used in Sections 13 (d) (3) and 14 (d) (2) of the Exchange
Act)  is  or  becomes  a  "beneficial owner" (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of securities of the Company representing
33  1/3%  or more of the combined voting power of the Company's then outstanding
securities  eligible  to vote for the election of the Board (the "Company Voting
Securities");  provided,  however,  that  the  event described in this paragraph
shall  not be deemed to be a Change in Control by virtue of any of the following
situations:  (i)  an acquisition by the Company of any of its subsidiaries; (ii)
an  acquisition by any employee benefit plan or employee stock plan sponsored or
maintained by the Company or any of its subsidiaries or any trustee or fiduciary
with  respect  to  such  plan;  or  (iii)  an  acquisition  by  any  underwriter
temporarily  holding  Company  Voting Securities pursuant to an offering of such
securities;

(b)     individuals  who,  as  of  the  date  hereof,  constitute the Board (the
"Incumbent  Board")  cease  for  any  reason  to  constitute at least a majority
thereof; provided however, that any person becoming a director subsequent to the
date  hereof,  whose  election,  or  nomination  for  election, by the Company's
shareholders  was  approved  by  a  vote of at least two-thirds of the directors
comprising  the  Incumbent Board who are then on the Board (either by a specific
vote  or  by approval of the proxy statement of the Company in which such person
is  named as a nominee for director, without objection to such nomination) shall
be,  for purposes of this paragraph (b), considered as though such person were a
member  of  the  Incumbent  Board, but excluding for this purpose any individual
elected  or  nominated as a director of the Company as a result of any actual or
threatened  solicitation  of  proxies  or consents by or on behalf of any person
other  than  the  Board;

(c)     the  consummation  of a merger, consolidation, share exchange or similar
form  of corporate reorganization of the Company or any of its subsidiaries that
requires  the  approval  of  the  Company's  shareholders,  whether  for  such
transactions or the issuance of securities in connection with the transaction or
otherwise  (a  "Business  Combination"),  unless  (i) immediately following such
Business  Combination:  (A)  more  than  50%  of  the  total voting power of the
corporation  resulting  from  such  Business  Combination  (the  "Surviving
Corporation")  or, if applicable, the ultimate parent corporation which directly
or indirectly has beneficial ownership of 100% of the voting securities eligible
to  elect  directors of the Surviving Corporation (the "Parent Corporation"), is
represented by Company Voting Securities that were outstanding immediately prior
to  the  Business Combination (or, if applicable, shares into which such Company
Voting  Securities  were  converted  pursuant to such Business Combination), and
such  voting  power  among  the  holders  thereof  is  in substantially the same
proportion  as  the  voting  power  of  such Company Voting Securities among the
holders  thereof  immediately  prior  to the Business Combination, (B) no person
(other  than  any  employee  benefit  plan  or  employee stock plan sponsored or
maintained  by the Surviving Corporation or Parent Corporation or any trustee or
fiduciary  with  respect  to  any such plan) is or becomes the beneficial owner,
directly  or  indirectly,  of  33  1/3% or more of the total voting power of the
outstanding  voting  securities  eligible  to  elect  directors  of  the  Parent
Corporation  (or, if there is no Parent Corporation, the Surviving Corporation),
following  the  Business Combination, were members of the Incumbent Board at the
time of the Board's approval of the execution of the initial agreement providing
for  such  Business  Combination or (ii) the Business Combination is effected by
means  of  the  acquisition  of  Company Voting Securities from the Company, and
prior  to  such  acquisition  a  majority  of  the  Incumbent  Board  approves a
resolution  providing  expressly  that  such  Business  Combination  does  not
constitute  a  Change  in  Control  under  this  paragraph  (c);  or

(d)     the  shareholders  of the Company approve a plan of complete liquidation
or  dissolution  of  the  Company  or  the  sale  or other disposition of all or
substantially  all of the assets of the Company and its subsidiaries, other than
a  sale  or  disposition  of  assets  to  a  subsidiary  of  the  Company.

Notwithstanding  the foregoing, a Change in Control shall not be deemed to occur
solely  because any person acquires beneficial ownership of more than 33 1/3% of
the  Company  Voting Securities as a result of the acquisition of Company Voting
Securities  by  the  Company  which,  by  reducing  the number of Company Voting
Securities outstanding, increases the percentage of shares beneficially owned by
such  person;  provided,  that if a Change in Control would occur as a result of
such  an acquisition by the Company (if not for the operation of this sentence),
and  after the Company's acquisition such person becomes the beneficial owner of
additional  Company  Voting  Securities  that  increases  the  percentage  of
outstanding  Company  Voting  Securities  beneficially  owned  by such person, a
Change  in  Control  shall  then  occur.

For  purposes  of this Section 3 only, the term "subsidiary" means a corporation
of  which  the  Company  owns  directly  or indirectly 50% or more of the voting
power.

4.     PARTICIPATING  EMPLOYERS

The  Company  and each subsidiary corporation of which the Company owns directly
or  indirectly  more  than  50% of the voting power at the time of the Change in
Control  shall  be  Participating  Employers  under  the Plan.  In addition, the
Committee  may  designate  other  affiliates  of  the  Company  as Participating
Employers  under the Plan, from time to time and under such terms and conditions
as  shall be specified by an action in writing by the Committee.  Such terms and
conditions  may  impose  limitations  on  the extent to which any such affiliate
participates  in  the  Plan  (including, but not limited to, the duration of any
such  participation),  but  shall  not  provide  rights  or benefits to Eligible
Employees that are broader than those set forth in the Plan.  Any entity that is
a Participating Employer at the time of a Change in Control shall continue to be
a  Participating Employer following a Change in Control, and any person, firm or
business  that  is  a  successor to the business or interests of a Participating
Employer  following  a  Change  in  Control  shall be treated as a Participating
Employer  under  the  Plan.

Notwithstanding the foregoing or anything elsewhere in the Plan to the contrary,
the  Committee  shall  have  the discretionary authority, as specified below, to
exclude  from  participation  or  limit  the  participation of any Participating
Employer  with  respect to its Eligible Employees employed outside of the United
States.  The  Committee  shall  exercise  this  authority  only  by an action in
writing  taken  prior  to  a  Change  in  Control  on  the basis of a good faith
determination  that,  as a result of the specific effect of applicable local law
or  practice  with respect to the Plan, it would be in the best interests of the
Company  to  so exclude or limit such participation.  In addition, to the extent
specified  by  an  action in writing prior to a Change in Control, the Committee
may offset the benefits provided under the Plan to any such Eligible Employee by
benefits  under  severance arrangements that exist by reason of applicable local
law  or  practice.

5.     ELIGIBLE  EMPLOYEES

All  Eligible  Employees  shall  participate  in the Plan.  Any person who is an
Eligible  Employee shall continue to be an Eligible Employee notwithstanding any
change  in  his/her  position  or  classification following a Change in Control.

6.     COVERED  TERMINATIONS

An Eligible Employee shall be treated as having suffered a "Covered Termination"
hereunder  if  his/her employment is terminated at any time within two (2) years
following  the  date  of  a  Change  in  Control,  by  reason  of termination of
employment  by  a  Participating  Employer  without  "Cause"  or by the Eligible
Employee  for  "Good  Reason."

An  Eligible  Employee  shall  not  be  treated  as  having  suffered  a Covered
Termination  in the event of his/her death, total disability (within the meaning
of  the  Company's  Long Term Disability Coverage), transfer of employment among
Participating  Employers (unless such transfer gives rise to a "Good Reason") or
involuntary  termination  for  "Cause."

A  termination of an Eligible Employee's employment hereunder by a Participating
Employer  shall  be  deemed to have occurred "For Cause" if, within a reasonable
period  after such termination, a good-faith finding shall be made by a majority
of the Board that such termination occurred as a result of any of the following:
(i)  any act committed by an Eligible Employee which shall represent a breach in
any  material  respect of any of the terms of the Eligible Employee's employment
and which breach is not cured within 30 days of receipt by the Eligible Employee
of  written  notice  from a Participating Employer of such breach; (ii) improper
conduct, consisting of any willful act or omission with the intent of obtaining,
to  the  material detriment of a Participating Employer, any benefit to which an
Eligible  Employee  would  not  otherwise  be  entitled;  (iii) improper conduct
consisting  of  sexual  harassment  or  act  of  moral  turpitude;  (iv)  gross
negligence,  consisting  of  wanton  and  reckless  acts  or  omissions  in  the
performance  of  an  Eligible  Employee's  duties to the material detriment of a
Participating  Employer;  (v)  bad  faith  in  the  performance  of  an Eligible
Employee's  duties,  consisting  of  willful  acts or omissions, to the material
detriment  of  a  Participating  Employer, including excessive unexcused absence
from  work;  (vi)  use  of  illegal  drugs or unauthorized use of alcohol in the
workplace  or  being  under  the  influence of illegal drugs or alcohol while at
work;  or (vii) any conviction of, or plea of nolo contendere to, a crime (other
                                              ---- ----------
than a traffic violation) that constitutes a felony under the laws of the United
States  or  any  political  subdivision thereof.  A Participating Employer shall
provide written notice to an Eligible Employee, within a reasonable time period,
that  the  Board  is  convening  for purposes of determining whether an Eligible
Employee's  termination of employment was For Cause and an Eligible Employee (or
his  representative)  shall  have  the  right  to  appear  before  the  Board in
connection  with  such  determination.

The  employment  of an Eligible Employee shall be deemed to have been terminated
"For  Good  Reason"  upon  termination  of  employment  by  an Eligible Employee
following  a  "constructive termination event," subject to the provisions below.

For  purposes  hereof,  the  following shall constitute constructive termination
events:  (i)  any  reduction  of  an  Eligible  Employee's  salary or failure to
increase an Eligible Employee's salary each year for two consecutive years by 5%
or,  the greater of the change in the Consumer Price Index between January 1 and
December  31  of the next preceding year; (ii) failure to pay an annual bonus to
an  Eligible Employee for each calendar year that ends after a Change in Control
in  an  amount  representing  a  percentage of the Eligible Employee's salary at
least  as  great  as  the  average of the respective percentages of the Eligible
Employee's  salary  represented by the Eligible Employee's bonuses for the three
most  recent  calendar  years before a Change in Control (with any such calendar
years  during  which  no  bonus  was  paid  to  be counted as 0% years); (iii) a
material  reduction  from pre-Change in Control levels in an Eligible Employee's
employee  benefits  and  perquisites (other than incentive and bonus plans which
are  covered  above),  unless  a  Participating  Employer  provides a substitute
benefit  that  is  at  least as favorable on an after-tax basis; (iv) a material
reduction  in  an  Eligible  Employee's title, position, reporting relationship,
responsibilities  or  authority;  and (v) a relocation of an Eligible Employee's
office  by  more  than  35  miles  that increases the Eligible Employee's travel
distances  from  home.

An event described above as a constructive termination event shall be treated as
a  constructive  termination event hereunder following the expiration of 30 days
from  the date an Eligible Employee has notified a Participating Employer of the
occurrence of such event and his intention to treat such event as a constructive
termination  event  and  terminate his employment on the basis thereof, provided
that  a  Participating Employer has not cured the constructive termination event
before  the  expiration  of such 30-day period.  Any notice given by an Eligible
Employee  under  this  paragraph  shall  be  effective  only  if  given  to  a
Participating  Employer  in  writing within 45 days after the event in question.

7.     SEVERANCE  PAYMENT

The amount of the severance payment to be received by an Eligible Employee whose
employment  is  terminated  under  conditions constituting a Covered Termination
shall  equal  three  (3)  times  the  sum  of:
          i.     the  Eligible  Employee's  Annual  Base  Salary  at the time of
Covered  Termination  (calculated without regard to any reduction in Annual Base
Salary that results in a Good Reason termination) or, if greater, at the time of
the  Change  in  Control,  plus

ii     the greater of (i) the amount of the Eligible Employee's target incentive
bonus  for  the  year  of Covered Termination or (ii) the amount of the Eligible
Employee's  incentive  bonus earned for the year immediately prior to the Change
in  Control.

The  severance  payment  to  be made shall be paid to the Eligible Employee in a
single  lump  sum  cash  payment,  net  of  any required tax withholding, within
fifteen  (15)  calendar  days  after the date of the Eligible Employee's Covered
Termination.  Any  payment  required under this Section 7 or any other provision
of  the  Plan  that is not made in a timely manner shall bear interest at a rate
equal  to  one (1) percent above the prime rate, as published in The Wall Street
                                                                 ---------------
Journal,.  as  in  effect  from  time  to  time.
 ------

8.     OTHER  SEVERANCE  BENEFITS

In  addition  to  the  severance  payment  provided under Section 7, an Eligible
Employee  shall  be  entitled  to the following benefits and other rights in the
event  of  his/her  Covered  Termination:

           a.     The  Eligible Employee shall be entitled to continued coverage
and benefits for the duration of the Severance Period, at the Company's expense,
under  all  employee  welfare  benefit  plans  (including,  without  limitation,
medical,  dental,  group life, death benefit, dependent life, supplemental life,
accidental  death  and  dismemberment,  short-term  disability  and  long-term
disability  plans,  health  care  reimbursement  account  and dependent day care
reimbursement  account)  of Participating Employer for which he/she was eligible
at  the  time  of  Covered Termination or, if it would provide benefit coverages
more  favorable  to the Eligible Employee, at the time of the Change in Control,
as  though  his/her  termination  of  employment  had not occurred (the "Welfare
Continuation Coverages").  All Welfare Continuation Coverages shall apply to the
Eligible Employee and any of his/her dependents who would have been eligible for
coverage if the Eligible Employee remained employed for the applicable Severance
Period.  The  Company  may  provide  the  Eligible  Employee  with  the  Welfare
Continuation  Coverages  under  arrangements other than its generally applicable
welfare  benefits  plans, provided that the benefit coverages so provided are at
least  as  favorable  to  the  Eligible Employee as coverage under the otherwise
applicable  Welfare Continuation Coverages, on a coverage by coverage basis, and
taking  into  account  all  tax  consequences  to the Eligible Employee.  At the
expiration  of  the  applicable Severance Period, the Eligible Employee shall be
treated  as  a  then  terminating  employee  with  respect to the right to elect
continued  medical  and dental coverages in accordance with section 4980B of the
Code  (or  any  successor  provision  thereto).

              b.     Immediately  upon  a Covered Termination, any stock options
or  similar equity-based incentive rights granted to the Eligible Employee under
a  stock  incentive  plan  of  a  Participating Employer that are not then fully
vested and exercisable shall become fully vested and immediately exercisable and
the  Eligible  Employee  shall  be  entitled to exercise any such rights for the
longest exercise period that could be granted to the Eligible Employee under the
terms of such plan.  The provisions of this paragraph (b) shall apply equally to
any awards or rights into which the equity incentive rights described herein are
converted  or  for which such rights are substituted in connection with a Change
in  Control.

            c.     The  Eligible  Employee  shall  be  entitled to the following
payments and benefits in respect of accrued compensation rights at the time of a
Covered  Termination,  in  addition to all other rights provided under the Plan:
(i)  immediate  payment of any accrued but unpaid Annual Base Salary through the
date  of  Covered Termination; (ii) payment within fifteen (15) calendar days of
Covered  Termination  of the accrued bonus for the year in effect on the date of
the Covered Termination, determined on the basis of the bonus earned under terms
of  the  applicable  bonus plan through the date of termination, or, if greater,
the  pro-rata amount of the target bonus for the period of such year through the
date  of termination; (iii) payment within fifteen (15) calendar days of Covered
Termination  of  all  non-tax-qualified deferred compensation rights, if any, in
lieu  of  payment  in  respect  of such rights that would otherwise be made at a
later  date  in  accordance  with  the terms of such arrangements, except to the
extent  such  rights  are  funded  by amounts held under an irrevocable grant or
trust  or  other  irrevocable  commitment  of funds by the Company; and (iv) all
benefits  and  rights  accrued  under the employee benefit plans, fringe benefit
programs  and  payroll  practices  of a Participating Employer (other than those
described  in  clause  (iii)  above)  in accordance with their terms (including,
without  limitation,  employee  pension,  employee  welfare, incentive bonus and
stock  incentive  plans).

d.     The  Eligible  Employee shall be provided, at the Company's sole expense,
with  professional  outplacement  services  selected  by  the  Eligible Employee
consistent  with  his/her duties of profession and of a type and level customary
for  persons  in his/her position; provided, however, that the Company shall not
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be  required  to  pay fees in connection with the foregoing in an amount greater
than  fifteen  (15)  percent  of  the Eligible Employee's Annual Base Salary for
purposes  of  item  (i)  of  Section  7.

           e.     With  respect  to  any  Eligible  Employee who is, immediately
prior  to  a
Change  in  Control  or  a  Covered  Termination, indemnified by the Company for
his/her  service as a director, officer or employee of a Participating Employer,
the  Company  shall  indemnify  such  Eligible  Employee  to  the fullest extent
permitted  by  applicable  law, and the Company shall maintain in full force and
effect,  for  the  duration  of  all  applicable  statute of limitation periods,
insurance  policies  at  least  as  favorable  to the Eligible Employee as those
maintained  by  the Company for the benefit of its directors and officers at the
time  of  Change  in  Control,  with  respect to all costs, charges and expenses
whatsoever  (including  payment of expenses in advance of final disposition of a
proceeding)  incurred  or  sustained by the Eligible Employee in connection with
any  action, suit or proceeding to which he/she may be made a party by reason of
being or having been a director, officer or employee of a Participating Employer
or  serving  or  having  served  any  other enterprise as a director, officer or
employee  at  the  request  of  a  Participating  Employer.

9.     POTENTIAL  EXCISE  TAXES

In  the  event  it  shall  be determined that any payment or distribution by the
Company  or  any  other  person  or  entity to or for the benefit of an Eligible
Employee  who  suffers a Covered Termination is a "parachute payment" within the
meaning  of  section 280G of the Code, whether paid or payable or distributed or
distributable  pursuant to the terms of this Plan or otherwise, or whether prior
to  or following the Covered Termination, in connection with, or arising out of,
his/her  employment  with  a  Participating Employer or a change in ownership or
effective  control  of  the  Company  or  a substantial portion of its assets (a
"Payment"),  and  would  be subject to the excise tax imposed by section 4999 of
the  Code  (the  "Excise  Tax"), concurrent with the making of such Payment, the
Company  shall pay to the Eligible Employee an additional payment (the "Gross-Up
Payment")  in  an  amount  such  that  the  net  amount retained by the Eligible
Employee,  after  deduction  of  any Excise Tax on such Payment and any federal,
state or local income tax and Excise Tax on the Gross-Up Payment shall equal the
amount  of such Payment.  In the event the Internal Revenue Service subsequently
may  assess or seek to assess from the Eligible Employee an amount of Excise Tax
in excess of that determined in accordance with the foregoing, the Company shall
pay  to  the  Eligible  Employee  an  additional Gross-Up Payment, calculated as
described  above  in  respect  of  such  excess Excise Tax, including a Gross-Up
Payment  in respect of any interest or penalties imposed by the Internal Revenue
Service  with  respect  to  such  excess  Excise  Tax.

10.        NO  MITIGATION  OR  OFFSET

An  Eligible  Employee  shall  be  under  no  obligation to minimize or mitigate
damages  by  seeking  other  employment,  and  the  obtaining  of any such other
employment shall in no event effect any reduction of the Company's obligation to
make  the  payments  and  provide  the  benefits  required  under  the Plan.  In
addition, the Company's obligation to make the payments and provide the benefits
required  under  the Plan shall not be affected by any circumstances, including,
without  limitation,  any  set-off,  counterclaim,  recoupment, defense or other
rights  which  a  Participating  Employer may have against an Eligible Employee.

11.     UNFUNDED  STATUS

The  Plan  is intended to constitute an unfunded employee benefit plan and shall
be interpreted and administered accordingly.  The payments and benefits provided
hereunder  shall be paid from the general assets of the Company.  Nothing herein
shall  be  construed to require the Company to maintain any fund or to segregate
any  amount  for  the  benefit  of any employee, and no employee or other person
shall  have  any  right  against, right to, or security or other interest in any
fund,  account  or  asset  of the Company from which the payment pursuant to the
Plan  may  be made.  Consistent with the foregoing, the Company may, in its sole
discretion, deposit funds in a grantor trust or otherwise establish arrangements
to  pay  amounts  that  become due under the Plan, and, notwithstanding anything
elsewhere  in  the Plan to the contrary, the payments and benefits due under the
Plan  shall  be  reduced to reflect the amount of any payment made in respect of
any  Eligible Employee from a grantor trust or other arrangement established for
this  purpose.

12.     ADMINISTRATION

The  Committee  shall  be named fiduciary of the Plan and the plan administrator
for  purposes  of  ERISA.  The  Committee  shall  be responsible for the overall
operation  of  the  Plan  and  shall  have  the fiduciary responsibility for the
general operation of the Plan.  The Committee may allocate to any one or more of
the Company's employees any responsibility the Committee may have under the Plan
and  may  designate  any  other  person  or  persons  to  carry  out  any of the
Committee's  responsibilities  under  the  Plan.  As  plan  administrator,  the
Committee  shall maintain records pursuant to the Plan's provisions and shall be
responsible  for the handling, processing and payment of any claims for benefits
under  the  Plan.

13.     CLAIMS  AND  DISPUTES

Within  fifteen  (15)  calendar days of a Covered Termination, the Company shall
notify  each  Eligible  Employee  whom  the  Company  determines  is entitled to
payments and benefits under the Plan of his/her entitlement to such payments and
benefits.  An  Eligible  Employee  who is not so notified may submit a claim for
payments  and  benefits  under  the Plan in writing to the Company within ninety
(90)  calendar  days  after  becoming  entitled to such benefits as described in
Section  6.  All  such  claims  shall  be  approved  or denied in writing by the
Company  within  fifteen  (15)  calendar  days  after  submission.

Any  denial of a claim by the Company shall be in writing and shall include: (i)
the  reason  or  reasons  for  the  denial; (ii) reference to the pertinent Plan
provisions  on  which the denial is based; (iii) a description of any additional
material or information necessary for the Eligible Employee to perfect the claim
together  with  an  explanation of why the material or information is necessary;
and  (iv)  an explanation of the Plan's claim review procedure, described below.

An  Eligible  Employee  shall  have  a reasonable opportunity to appeal a denied
claim  to  the  Company  for  a  full and fair review.  The Eligible Employee or
authorized  representative  shall have sixty (60) calendar days after receipt of
written  notification of the denial of claim in which to request a review and to
review  pertinent  documents of the Plan.  The Company shall notify the Eligible
Employee  or  his/her  authorized  representative  of the time and place for the
claim  review.  The  Company  shall  issue  a  decision  on  the  reviewed claim
promptly,  but  no  later  than  fifteen (15) calendar days after receipt of the
request  for  review.  The  Company's  decision  shall  be  in writing and shall
include:  (i)  the  reasons  for  the  decision, and (ii) references to the Plan
provisions  on  which  the  decision  is  based.

If the Eligible Employee shall dispute the Company's final decision, the dispute
shall  be  submitted  to  an arbitration proceeding, conducted before a panel of
three  arbitrators,  in  accordance  with  the rules of the American Arbitration
Association  (or  such  other  organization  selected by mutual agreement of the
Company  and  the  Eligible Employee).  Such arbitration shall take place in the
location  most  practicably  proximate  to  the  Eligible  Employee's  principal
workplace.  Judgment  may  be  entered  on  the  arbitrators' award in any court
having  jurisdiction.  Notwithstanding  the  foregoing,  if an Eligible Employee
believes  the  claims  procedure  or dispute resolution mechanism provided under
this  Section  13  would  be  futile  or  would  cause  such  Eligible  Employee
irreparable  harm,  the Eligible Employee may, in his/her sole discretion, elect
to  enforce  his/her  rights  under  the  Plan pursuant to section 502 of ERISA.

The  Company  shall bear the expense of any enforcement proceeding brought by an
Eligible  Employee  under the Plan and shall reimburse the Eligible Employee for
all  of  his/her  reasonable  costs  and  expenses  relating to such enforcement
proceedings,  including,  without  limitation,  reasonable  attorneys'  fees and
expenses,  provided  that  the Eligible Employee is the prevailing party in such
proceeding.  For  the  purposes  hereof,  the  trier of fact in such enforcement
proceeding shall be requested to make a determination as to the reimbursement of
the  Eligible Employee's costs and expenses as a prevailing party hereunder.  In
no  event  shall  the Eligible Employee be required to reimburse the Company for
any  of  the  costs  or  expenses  relating  to  such  enforcement  proceeding.

14.     TERM  AND  AMENDMENT

The  Plan  shall  become effective on the date of its adoption by the Board (the
"Effective  Date")  and  shall  continue  to  be effective until the "Expiration
Date."  The  Expiration  Date  shall  initially  be the third anniversary of the
Effective  Date,  but as of the first anniversary of the Effective Date and each
anniversary  date  thereafter,  the  Expiration  Date  shall  be  extended by an
additional  one  (1) year unless, not later than ninety (90) calendar days prior
to  the  respective  anniversary  date  of  the  Effective Date, the Board shall
specify by resolution or other written action that the Expiration Date shall not
be  so  extended.  Notwithstanding  the  foregoing,  in the event of a Change in
Control,  the  Plan  shall continue in effect, and the Expiration Date shall not
occur,  until  the  satisfaction of all severance payments and benefits to which
Eligible  Employees  are  or  may  become entitled to under the Plan.  The Board
shall  have  the  right, by resolution or other written action, to terminate the
Plan,  amend the Plan or to add or delete Eligible Employees; provided, however,
                                                              --------  -------
that  no  such termination, amendment or deletion of an Eligible Employee by the
Board  shall  be  effective  (i)  if taken after a Change in Control, or (ii) to
reduce  the rights or benefits of any Eligible Employee if such action was taken
within  6 months prior to a Change in Control or was taken in anticipation of or
in  connection  with  a  Change  in  Control.

15.     SUCCESSORS  AND  ASSIGNS

The  Plan shall be binding upon any person, firm or business that is a successor
to  the business or interests of the Company, whether as a result of a Change in
Control  of the Company or otherwise.  All payments and benefits that become due
to  an  Eligible  Employee  under the Plan shall inure to the benefit of his/her
heirs,  assigns,  designees  or  legal  representatives.

16.     ENFORCEABILITY

The  Company  intends  the  Plan  to constitute a legally enforceable obligation
between it and each Eligible Employee, and that the Plan confer vested rights on
each  Eligible  Employee  in  accordance  with  the terms of the Plan, with each
Eligible Employee being a third-party beneficiary thereof.  Nothing in the Plan,
however,  shall  be  construed  to  confer on any Eligible Employee any right to
continue  in  the  employ  of  a Participating Employer or affect the right of a
Participating  Employer  to  terminate  the  employment  or change the terms and
conditions  of  employment  of  an  Eligible Employee, with or without notice or
cause,  prior  to  a  Change  in Control, or to take any such action following a
Change  in  Control,  subject  to  the  consequences  specified  by  the  Plan.

The  Plan  shall be construed and enforced in accordance with ERISA and the laws
of  the State of South Carolina to the extent not preempted by ERISA, regardless
of the law that might otherwise govern under applicable principles or provisions
of choice or conflict of law doctrines.  To the extent any provision of the Plan
shall  be  invalid  or  unenforceable  under  any  applicable  law,  it shall be
considered  deleted  herefrom  and  all  other  provisions  of the Plan shall be
unaffected  and  shall  continue  in  full  force  and  effect.

               POLICY  MANAGEMENT  SYSTEMS  CORPORATION

<PAGE>
                             SCHEDULE OF PARTICULARS
                          FOR NAMED EXECUTIVE OFFICERS
                    RE: CHANGE IN CONTROL SEVERANCE PAY PLAN

NAMED EXECUTIVE               EFFECTIVE DATE OF
OFFICER                         PARTICIPATION

Michael D. Gantt               October 22, 1996
Harald J. Karlsen              February 7, 2000

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