Document:

<PAGE>
                       FIRST AMENDMENT TO CREDIT AGREEMENT

         THIS FIRST AMENDMENT TO CREDIT AGREEMENT (this "Amendment") is entered
into as of August 1, 2001 (the "Amendment Date"), among INDUSTRIAL DISTRIBUTION
GROUP, INC., a Delaware corporation (the "Borrower"), those Subsidiaries of the
Borrower identified on the signature pages hereto as "Affiliate Guarantors";
Borrower and the Affiliate Guarantors are sometimes collectively referred to as
the "Obligors" or individually referred to as an "Obligor"); FIRST UNION
NATIONAL BANK, a national bank ("FUNB," "First Union" or the "Bank"), as a
"Lender," together with each of the other financial institutions identified as
"Lenders" on the signature pages hereto (together with each of their successors
and assigns, referred to individually as a "Lender" and, collectively, as the
"Lenders"); First Union, acting as agent for the Lenders (including the
Swingline Lender) in the manner and to the extent described in Article XIII of
the Credit Agreement defined below (First Union, when acting in such capacity,
herein called the "Administrative Agent"); FLEET CAPITAL CORPORATION ("Fleet"),
a Rhode Island corporation, as a Lender and as Documentation Agent pursuant to
the Credit Agreement; and BANK OF AMERICA, N.A. ("Bank of America"), a national
bank, as a Lender and as Syndication Agent pursuant to the Credit Agreement; for
the purpose of amending that certain Credit Agreement, dated as of December 22,
2000, among the aforesaid parties (as amended hereby, the "Credit Agreement") in
the following particulars. Capitalized terms used in this Amendment, but not
otherwise expressly defined herein, shall have the meanings given to such terms
in the Credit Agreement.

                                R E C I T A L S:

                  WHEREAS, a certain Event of Default has occurred and is
continuing on the Amendment Date, namely, the Fixed Charge Coverage Ratio, set
forth in Section 8.1 of the Credit Agreement, was less than 1.10:1 as of the
fiscal quarter ended June 30, 2001 which, under Section 11.1(c) of the Credit
Agreement, is an Event of Default (the "Existing Default"); and

                  WHEREAS, Borrower has requested that Lenders waive the
Existing Default and forbear from exercising any of the rights and remedies
accorded to Lenders under the Credit Agreement after the occurrence and during
the continuance of the Existing Default; and

                  WHEREAS, Lenders have considered, and are willing to
accommodate, Borrower's request, subject, however, to certain amendments and
modifications being incorporated into the Credit Agreement, as more particularly
set forth below; and

                  WHEREAS, all Affiliate Guarantors will obtain direct and
material economic benefits from such waiver being given and such amendments
being made, and have agreed to join with Borrower in executing this Amendment in
order to confirm their continuing credit support to Borrower in respect thereof;

                  NOW, THEREFORE, in consideration of the foregoing recitals and
the agreements, provisions and covenants herein contained, the receipt and
sufficiency of which are hereby acknowledged, the Obligors, together with
Lenders and the Administrative Agent, the

<PAGE>
Documentation Agent and the Syndication Agent, each intending to be legally
bound, hereby acknowledge, covenant and agree as follows:

         1. Pricing Matrix Change. The existing pricing matrix, set forth in the
definition of "Applicable Percentage" in Section 1.1 of the Credit Agreement, is
deleted in its entirety, and the following revised pricing matrix is substituted
in its place:

<TABLE>
<CAPTION>

-------------- ---------------------- ----------------------------- ----------------------------- --------------------------
 Tier Levels      Leverage Ratio       Applicable Percentage for     Applicable Percentage for      Applicable Percentage
                                            Eurodollar Loans              Base Rate Loans            for Unused Line Fee
<S>            <C>                     <C>                           <C>                           <C>
-------------- ---------------------- ----------------------------- ----------------------------- --------------------------
1              > 4.5 to 1.0                      3.00%                         1.75%                        .375%
               -
-------------- ---------------------- ----------------------------- ----------------------------- --------------------------
2              > 4.0 to 1.0 but                  2.75%                         1.50%                        .375%
               -
               < 4.5 to 1.0
-------------- ---------------------- ----------------------------- ----------------------------- --------------------------
3              > 3.5 to 1.0 but                  2.50%                         1.25%                        .375%
               -
               < 4.0 to 1.0
-------------- ---------------------- ----------------------------- ----------------------------- --------------------------
4              > 3.0 to 1.0 but                  2.25%                         1.00%                        .25%
               -
               < 3.5 to 1.0
-------------- ---------------------- ----------------------------- ----------------------------- --------------------------
5              < 3.0 to 1.0                      2.00%                          .75%                        .25%
-------------- ---------------------- ----------------------------- ----------------------------- --------------------------
</TABLE>

         2. Eligible Inventory Change. There shall be excluded from Eligible
Inventory any Boring-Smith mobile inventory, which is maintained on and sold
from trucks.

         3. Cash Control. Existing Section 2.3(b)(ii)(C) of the Credit Agreement
shall be deleted in its entirety, and the following revised Section
2.3(b)(ii)(C) shall be substituted in its place:

                            (C) Notwithstanding any terms of subsection (B)
                            above to the contrary, so long as (i) no Event of
                            Default or Default exists, and (ii) Average Excess
                            Availability exceeds Twenty-Two Million Five Hundred
                            Thousand Dollars ($22,500,000), all or portions of
                            any funds deposited into the Lockbox Accounts on any
                            Business Day may, at the Borrower's option, be
                            transferred to an account of the Borrower other than
                            the First Union Account, thereafter to be used by
                            the Borrower in a manner consistent with the terms
                            of this Credit Agreement. Should the Administrative
                            Agent at any time determine that either of the
                            foregoing conditions is not being met, then, the
                            Administrative Agent may, or at the direction of the
                            Required Lenders, the Administrative Agent shall,
                            notify the Borrower and the Lockbox Banks
                            accordingly and the special permission granted
                            herein to the Borrower shall cease to be effective
                            until such time as the Administrative Agent, by
                            subsequent notice to the Borrower and the Lockbox
                            Banks, determine that each of the foregoing
                            conditions is being met and that the special
                            permission granted herein to the Borrower may be
                            restored.

                                       2
<PAGE>
         4. Borrowing Base Certificate Change. Existing Section 7.1(e) of the
Credit Agreement is deleted in its entirety, and the following revised Section
6.3(e) is substituted in its place:

                  (e) biweekly, by not later than 12:00 Noon on the second
         Business Day of every other calendar week, a certificate, to be
         substantially in the form of Exhibit T (the "Borrowing Base
         Certificate"), duly completed and certified by an Authorized Officer of
         the Borrower, detailing the Obligors' Eligible Accounts Receivable as
         of the most recent date of determination (which shall be determined not
         less frequently than monthly) and Eligible Inventory as of each Friday
         of the immediately preceding week; provided, however, that if the Fixed
         Charge Coverage Ratio as of the end of any Fiscal Quarter equals or
         exceeds 1.10:1, then, the Borrower may defer the delivery of the
         Borrowing Base Certificates until the end of each calendar month, with
         delivery thereof to be completed within thirty (30) days after the end
         of such month, for so long as the Fixed Charge Coverage Ratio is
         maintained in at least the amount specified above; and, provided,
         further, that if (i) any Event of Default or Default exists, or (ii)
         Average Excess Availability is at any time less than Twenty-Two Million
         Five Hundred Thousand Dollars ($22,500,000), the Administrative Agent
         may, or at the direction of the Required Lenders, the Administrative
         Agent shall require the reporting of the Borrowing Base be changed from
         biweekly to weekly, in which event such report shall be due not later
         than the 12:00 Noon on the second Business Day of each week, for the
         preceding calendar week. In addition, on the thirtieth (30th) day of
         each month (or if such day is not a Business Day, then on the next
         succeeding Business Day), the Borrower shall furnish a written report
         to the Lenders setting forth (i) the accounts receivable aged trial
         balance at the immediately preceding month end for each account debtor,
         aged by due date, which aging reports shall indicate which Accounts are
         current, up to 30, 30-to-60 and over 60 days past due and shall list
         the names and addresses of all applicable account debtors, (ii) a
         monthly accounts payable aging with such aging to be in form
         satisfactory to the Administrative Agent, (iii) a schedule of Inventory
         owned by each Obligor by location and category, in summary form,
         together with, on at least a quarterly basis, a detailed report in
         respect thereof, and (iv) a monthly report on the addition of any new
         locations of Inventory (including ISA Sites) and the entry into any new
         ISA. The Administrative Agent may, but shall not be required to, rely
         on each Borrowing Base Certificate delivered hereunder as accurately
         setting forth the available Borrowing Base for all purposes of this
         Credit Agreement until such time as a new Borrowing Base Certificate is
         delivered to the Administrative Agent in accordance herewith; Borrowing
         Base Certificates may be prepared and submitted to the Lenders on a
         more frequent basis than weekly (or, in the Administrative Agent's
         discretion, less frequently, but in no case less than monthly),
         provided, however, that such certificate complies with the requirements
         set forth elsewhere herein;

                                       3
<PAGE>
         5. Fixed Charge Coverage Ratio Change. Existing Section 8.1 of the
Credit Agreement (Fixed Charge Coverage Ratio) is deleted in its entirety, and
the following revised Section 8.1 is substituted in its place:

                  8.1 Fixed Charge Coverage Ratio. The Borrower shall maintain a
         Fixed Charge Coverage Ratio of not less than: (i) 1.10:1, as of March
         31, 2001; (ii) .90:1, as of June 30, 2001; (iii) .85:1, as of September
         30, 2001; (iv) .90:1, as of December 31, 2001; (v) 1.00:1, as of March
         31, 2002; and (vi) 1.10:1, as of the last day of each fiscal quarter of
         the Borrower ending subsequent to March 31, 2002.

         6. Certain Representations And Warranties. Each Obligor represents and
warrants to the Lenders as inducements to their entry into this Amendment that:
(a) it has the power and authority to enter into, deliver and to perform this
Amendment and any Credit Documents to be executed and delivered in connection
herewith (herein, "Amendment Documents"), and to incur any obligations provided
for in this Amendment and any Amendment Documents, all of which have been duly
authorized and approved in accordance with its corporate documents; (b) it has
obtained all consents or approvals from any Person necessary to permit it to
enter into and perform under the Amendment Documents without its being in
violation of any material agreements with such Person; (c) this Amendment,
together with all other Amendment Documents, shall constitute, when executed,
its valid and legally binding obligations in accordance with their respective
terms; (d) except with respect to events or circumstances occurring subsequent
to the date thereof and known to the Lenders, all representations and warranties
made by it in the Credit Agreement remain true and correct in all material
respects as of the date hereof, with the same force and effect as if all such
representations and warranties were fully set forth herein (except to the extent
that any such representations or warranties refer to a specific date or period);
(e) its obligations under the Credit Agreement and the other Credit Documents
remain valid and enforceable obligations, and the execution and delivery of the
Amendment and the other Amendment Documents shall not be construed as a novation
of the Credit Agreement or any of the other Credit Documents; (f) as of the
Amendment Date, it has no knowledge of any offsets or defenses existing in its
favor in respect of the payment of any of the Obligations; and (g) as of the
Amendment Date, after giving effect to this Amendment, it has no knowledge that
any Default or Event of Default exists.

         7. Existing Default. Lenders hereby waive the Existing Default and
agree to exercise no right or remedy in respect thereof hereafter; provided,
however, that this waiver (i) shall be limited to the Existing Default only and
to no other Event of Default (known or unknown); and (ii) shall not be construed
to suggest or imply that Lenders have waived, or will waive, any other similar
or dissimilar Event of Default hereafter.

         8. Amendment Fee. Upon execution and delivery by Lenders of this
Amendment on the Amendment Date, the Lenders shall have fully earned a
non-refundable amendment fee equal in amount to Two Hundred Fifty Thousand
Dollars ($250,000), to be shared pro rata among them, which shall be due and
payable, in installments, as follows (if payment thereof is not sooner
accelerated in conjunction with any acceleration of the Obligations pursuant to
the terms of Credit Agreement): (i) One Hundred Thousand Dollars ($100,000),
which shall be due and payable on October 1, 2001, (ii) One Hundred Thousand
Dollars ($100,000), which shall be due

                                       4
<PAGE>
and payable on January 1, 2002, and (iii) Fifty Thousand Dollars ($50,000),
which shall be due and payable on April 1, 2002; provided, however, that,
notwithstanding the foregoing, if the Fixed Charge Coverage Ratio, computed as
of the fiscal quarter of the Borrower ending December 31, 2001, is at least
1.00:1, and no Event of Default then exists, the final installment of the
amendment fee otherwise due and payable on April 1, 2002, shall be waived.

         9. Miscellaneous.

            (a) Reference to Agreement and Note. This Amendment shall become
effective upon its execution by all parties hereto and, at such time, its
effective date shall be the date of this Amendment. Upon the effectiveness of
this Amendment, each reference in the Credit Agreement to "this Agreement" and
each reference in the other Credit Documents to the Loan Agreement, shall mean
and be a reference to the Credit Agreement as amended hereby.

            (b) Effect on Credit Documents. Except as specifically amended
above, the Credit Agreement and all other Credit Documents shall remain in full
force and effect and are hereby ratified and confirmed.

            (c) No Waiver. The execution, delivery and effectiveness of this
Amendment shall not operate as a waiver of any right, power, or remedy of the
Agent or Lenders under any of the Credit Documents, nor constitute a waiver of
any provision of any of the Credit Documents.

            (d) Costs and Expenses. The Borrower agrees to pay on demand all
reasonable costs and expenses of the Administrative Agent in connection with
the preparation, reproduction, execution, and delivery of this Amendment and the
other instruments and documents to be delivered hereunder, including the
reasonable fees and out-of-pocket expenses of counsel for the Agent with respect
hereto. All such fees and charges, if not paid promptly when due, may be charged
directly as Revolving Loans.

            (e) No Novation. Nothing contained herein is intended, or shall
be construed, to constitute a novation of the Credit Agreement or any Credit
Document.

            (f) Governing Law. This Amendment shall be governed by and
construed in accordance with the laws of the State of Georgia, without giving
effect to conflict of law provisions.

            (g) Credit Document. This Amendment constitutes a Credit
Document.

                                       5
<PAGE>
         IN WITNESS WHEREOF the parties hereto have caused this Amendment to be
executed under seal and delivered by their proper and duly authorized officers
as of the date set forth above.

                           BORROWER:

                           INDUSTRIAL DISTRIBUTION GROUP, INC. (SEAL)

                           By:
                              -------------------------------------------------
                                Jack P. Healey, Senior Vice President

                                       6
<PAGE>
                           AFFILIATED GUARANTORS:

                           IDG USA, LLC                                 (SEAL)

                           By:
                              -------------------------------------------------
                                Jack P. Healey,
                                Secretary

                                       7
<PAGE>
                           BUFORD BROS., INC.                           (SEAL)

                           By:
                              -------------------------------------------------
                                Jack P. Healey, Secretary

                                       8
<PAGE>
                           CARDINAL MACHINERY, INC.                     (SEAL)

                           By:
                              -------------------------------------------------
                                Jack P. Healey, Secretary

                                       9
<PAGE>
                           E.C. BLACKSTONE COMPANY                      (SEAL)

                           By:
                              -------------------------------------------------
                                Jack P. Healey, Secretary

                                       10
<PAGE>
                           IDG-MEXICO, INC.                             (SEAL)

                           By:
                              -------------------------------------------------
                                Jack P. Healey, Secretary

                                       11
<PAGE>
                          THE NEW ENGLAND GROUP INDUSTRIAL
                          DISTRIBUTORS, INC.                            (SEAL)

                          By:
                             --------------------------------------------------
                               Jack P. Healey, Secretary

                                       12
<PAGE>
                           ADMINISTRATIVE AGENT AND LENDER:

                           FIRST UNION NATIONAL BANK, (SEAL)
                           as Administrative Agent and as a Lender

                           By:
                              -------------------------------------------------
                                Name:
                                     ------------------------------------------
                                Title:
                                      -----------------------------------------

                                       13
<PAGE>
                           OTHER LENDERS:

                           FLEET CAPITAL CORPORATION, (SEAL)
                           as Documentation Agent and as a Lender

                           By:
                              -------------------------------------------------
                           Name:
                                -----------------------------------------------
                           Title:
                                 ----------------------------------------------

                                       14
<PAGE>
                           BANK OF AMERICA, N.A.,             (SEAL)
                           as Syndication Agent and as a Lender

                           By:
                              -------------------------------------------------
                           Name:
                                -----------------------------------------------
                           Title:
                                 ----------------------------------------------

                                       15
<PAGE>
                           PNC BANK, NATIONAL ASSOCIATION,  (SEAL)
                           as a Lender

                           By:
                              -------------------------------------------------
                           Name:
                                -----------------------------------------------
                           Title:
                                 ----------------------------------------------

                                       16
<PAGE>
                           IBJ WHITEHALL BUSINESS CREDIT      (SEAL)
                           CORPORATION, as a Lender

                           By:
                              -------------------------------------------------
                           Name:
                                -----------------------------------------------
                           Title:
                                 ----------------------------------------------

                                       17<PAGE>
                                                                    EXHIBIT 10.1

                   EXECUTIVE EMPLOYMENT AGREEMENT MODIFICATION

         The purpose of this letter is to modify and amend the Executive
Employment Agreement (the "Agreement") by and between Manhattan Associates, Inc,
a Georgia corporation ("Company"), and Richard Haddrill ("Executive") that was
entered into the 11th day of October 1999. This modification to that agreement
(the "Modification") shall be effective as of the date of execution. In the
event of a conflict between this Modification and the Agreement, the terms of
this Modification shall control. Capitalized terms not defined herein shall have
the meanings ascribed to them in the Agreement.

         Executive has agreed to continue in the position of President and Chief
Executive Officer through December 31, 2004. In light of this agreement, Company
has agreed to modify the Agreement. This Modification is effective as of July
19, 2001.

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
set forth herein, the parties agree as follows:

         1.       Employment and Duties.

                  A.       Company shall continue to employ Executive as
President and Chief Executive Officer. Executive hereby accepts employment on
the terms set forth herein and in the Agreement as modified hereby. Executive
shall continue to report to the Board of Directors.

                  B.       Executive shall continue with the duties that have
been established and as are normally associated with the duties of President and
Chief Executive Officer. Specifically, Executive shall have overall primary
responsibility for the functions of the Company.

         2.       Compensation.

                  A.       Base Salary. During his employment hereunder, Company
shall continue to pay Executive a base salary ("Base Salary") of $25,000 per
month ($300,000.00 annualized), subject to all standard employment deductions,
Company and Executive agree that this amount shall be fixed for the duration of
this Modification and the Agreement. Executive may request and receive an annual
increase of up to six (6) percent per year, compounded annually.

                  B.       Performance-Related Bonus. The Performance-related
bonus described in the Agreement shall continue until December 31, 2002.
Commencing on January 1, 2003, Executive shall be eligible to receive a
performance-related bonus, calculated quarterly, and paid annually on or about
the same timing as other executive bonuses are paid, in no event more than
ninety (90) days after the end of the Company's fiscal year. The bonus shall
have two components and be determined as follows: 1) Executive shall receive
0.25% of the lower of a) the pre-tax operating income, as that term is
used in the Agreement (hereinafter "Operating Income") during the quarter or b)
the average of the pre-tax Operating Income during the quarter and the preceding
three financial quarters; and 2) 2% of the amount by which the pre-tax Operating
Income of the quarter exceeds that amount computed in 1) above. Provided,
however, the bonus for financial year 2004, shall be paid at the sole discretion
of the Board based on, but not limited to Executive's performance in working
with the Board to provide for an acceptable succession plan, including hiring of
a suitable new Chief Executive Officer, investments made in Company's new
products and infrastructure, the status of the Company in its industry and the
Company's success in marketing and alliances.

                  C.       Stock Options. In consideration of Executive's
continued duties and responsibilities, Executive shall receive an option
pursuant to the Manhattan Associates, Inc. Option Plan (the "Option Plan") and
the terms of the Agreement to purchase 500,000 shares of the Company's common

<PAGE>

stock with an exercise price of $26.05 (which amount is the closing price of the
Company's shares for the day preceding the effective date of this Modification)
and such shares shall vest in eight equal installments on the last day of the
eight financial quarters of 2003 and 2004 (March 31, 2003, June 30, 2003,
September 30, 2003 and December 31, 2003, March 31, 2004, June 30, 2004,
September 30, 2004 and December 31, 2004). Notwithstanding anything to the
contrary in the Agreement, these options shall have a term of 5 years, provided
however, should Executive's employment terminate voluntarily prior to December
31, 2004, all unvested options granted pursuant to this Modification shall
expire and be unexercisable and all vested options granted pursuant to this
Modification shall expire 90 days following the termination date of Executive's
employment.

         3.       Severance.

                  The severance provision of the Agreement shall control with
respect to a Termination, other than with respect to a Change in Control though
December 31, 2002. Notwithstanding any provision to the contrary and in lieu of
any other provisions in the Agreement, in the event of a termination of
employment after December 31, 2002 or any Change of Control during the term of
this Modification and Agreement, other than a termination based on cause or
voluntary termination ("Termination"), Executive shall receive a severance
payment equal to One (1) times his annual salary. No severance shall be due upon
expiration of this Modification and the Agreement on December 31, 2004. The
severance provisions of the Agreement relating to the Options granted under that
Agreement shall remain in full force and effect. In the event a voluntary
Termination, no severance shall be due.

         4.       Additional Modifications.

                  A.       Change of Control. The definition of Change of
Control in the Agreement is amended by deleting the parenthetical in line 11 of
paragraph 1.C. through the word "consolidation" in line 18.

                  B.       Constructive Termination. The definition of
Constructive Termination (Paragraph 1.G. (A)(i)) in the Agreement is amended by
deleting the words "President and".

                  IN WITNESS WHEREOF, the parties hereto have executed this
Agreement as of the day and year first above written.

                                       COMPANY:

                                       Manhattan Associates, Inc.

                                       By: /s/ Deepak Raghavan
                                          --------------------------------------
                                          Name: Deepak Raghavan
                                               ---------------------------------
                                          Title:  Director
                                                --------------------------------

                                          Date: 7/19/2001
                                               ---------------------------------

                                       EXECUTIVE:

                                       /s/ Richard M. Haddrill
                                       -----------------------------------------
                                       Richard Haddrill

                                       Date: 7/19/01
                                            ------------------------------------

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