[GRAPHIC OMITED] M E M O R A N D U M
TO: [NAME]
FROM: [MANAGER]
CC: GIL JOHNSON
DATE:
SUBJECT: 2000 BONUS PLAN - NOTICE OF ELIGIBILITY
I. BONUS PLAN ELIGIBILITY
----------------------
You will have the potential to receive a bonus of:
[Bonus %] of salary (based upon your annual salary as of 30 September
2000).
II. BONUS CRITERIA AND WEIGHTING
----------------------------
Each of the following criteria represents a portion of the above bonus and
are weighted as follows:
[INDIVIDUAL WEIGHTING] --- Operating Income
[INDIVIDUAL WEIGHTING] --- Revised Profit Plan For
Applicable Business Unit
[INDIVIDUAL WEIGHTING] --- Customer Satisfaction
[INDIVIDUAL WEIGHTING] --- Employee Satisfaction
Business Unit means [Business Group].
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III. BONUS CRITERIA AND OPERATION
----------------------------
A. OPERATING INCOME- [Target Operating Income]
----------------
The 2000 target to earn 100% of this bonus criterion is [TARGET]
company wide Operating Income based on year end audited results and
before special one time charges and discontinued Banking Operations. A
pro-rata portion of this bonus criterion is earned in excess [MINIMUM]
and up to [TARGET].
B. PROFIT PLAN -- Target 100% or greater of plan
-----------
The 2000 target to earn 100% of this bonus criterion is achieving 100%
or greater of your revised business unit profit plan. There is no
pro-rata portion of this criterion.
C. CLIENT AND EMPLOYEE SATISFCATION IMPROVEMENT
---------------------------------------------
The 2000 target to earn 100% of these bonus criterion is the
achievement of a [TARGET] score based on a 1 to 5 scale at the lowest
client/employee survey level. A pro-rata portion of each client and
employee satisfaction criterion will be paid according to the
following schedule. All scores are computed to one decimal point,
rounded down.
[TARGET - 0.5] = 50% [TARGET - 0.2] = 80%
[TARGET - 0.4] = 60% [TARGET - 0.1] = 90%
[TARGET - 0.3] = 70% [TARGET] = 100%
IV. ADDITIONAL BONUS QUALIFICATIONS
-------------------------------
A. Your bonus, as well as all other bonuses under this 2000 Bonus Plan,
is subject to the discretion and authorization of the Board of
Directors and management based upon their evaluation of your and the
Company's 2000 performance. The amount of any bonus may be adjusted,
in whole or in part, prior to payment.
B. You must be employed by the Company on the date of bonus payment
approval by the Board of Directors.
C. Bonuses for employees who join the Company after 1 January 2000 and
before 30 September 2000 will be prorated.
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V. BONUS OPPORTUNITY
-----------------
Your bonus opportunity is affected by a variety of factors including your
management level, the level of manager you report to, as well as the
margin/budget level of your organization. For that reason your bonus
opportunity may be different from others and it is important that you treat
your specific bonus opportunity, as presented in this memorandum, as
private and confidential information.
VI. RESTRICTED STOCK PLAN
---------------------
The Policy Management Systems Corporation Restricted Stock Plan ("Plan")
will apply in the payment of all management bonuses under the 2000 Bonus
Plan. Participation in the Plan is required for all employees holding the
office of Vice President and above and is voluntary for all other bonus
eligible management. Application of the Plan to international personnel
varies depending upon the international location.
The Plan and its Prospectus and a current list of the countries
participating under the Restricted Stock Ownership Plan may be found on the
intranet at the Legal Department's web page.
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SCHEDULE OF PARTICULARS
FOR NAMED EXECUTIVE OFFICERS
RE: 2000 BONUS PLAN
SECTION II - INDIVIDUAL WEIGHTING
-------------------------------------
NAMED EXECUTIVE OPERATING BUSINESS UNIT CUSTOMER EMPLOYEE
------------------- ------------- ------------- --------------
OFFICER INCOME PROFIT PLAN SATISFACTION SATISFACTION
------------------- --------- ------------- -------------- -------------
DAVID T. BAILEY 50% 40% 5% 5%
STEPHEN MORRISON 70 20 5% 5%
MICHAEL W. RISLEY 50 40 5% 5%
TIMOTHY V. WILLIAMS 70 20 5% 5%
G. LARRY WILSON 100 - - -
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