POLICY MANAGEMENT SYSTEMS CORPORATION

                                  CONFIDENTIAL
                               M E M O R A N D U M

TO:

FROM:     STEVE  MORRISON
          GENERAL  COUNSEL  AND  SECRETARY

DATE:     APRIL  5,  2000

SUBJECT:  STOCK  OPTIONS



The  Compensation  Committee  of  the  Board  of  Directors  has granted you the
following  stock  options:

     Effective Date:      April  3,  2000

     Number of Options:   15,000

     Exercise Price:      $11.1875

     Vesting:             25%  on  each  of the three (4)  years  following  the
Effective  Date

These  options  are  granted  under  the  1999 Stock Option Plan.  A copy of the
Prospectus  for  the  Plan  is  attached.

As permitted by the Plan, the Compensation Committee, in granting these options,
imposed  an  additional  restriction  on  the  exercise  of  the options granted
effective April 3rd, to no more than one-third of the grant in any calendar year
except:

1.     eight  (8)  years  from  the  effective  date  (after  April  3,  2008);

2.     a  Change  of  Control  as  defined  in  the  Plan;  or

3.     retirement  from  the  Board  of  Directors.

If  you have any questions regarding this agreement, please call Jim McGovern at
extension  5559  or  me  at  extension  6099.

Attachment

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