Document:

ESCROW AGREEMENT

     THIS ESCROW  AGREEMENT (the "Escrow  Agreement"),  dated as of December 15,
1999 is among  QAD  INC.,  a  Delaware  corporation  ("QAD"),  DAVID  A.  TAYLOR
("Taylor")  and SANTA  BARBARA  BANK & TRUST as the Escrow  Agent  (the  "Escrow
Agent").

WHEREAS:

     A.   Contemporaneous  with  the  execution  and  delivery  of  this  Escrow
Agreement,  QAD is acquiring all of the  outstanding  Common Stock of ENTERPRISE
ENGINES, INC. ("EEI") in accordance with the Stock Purchase Agreement among QAD,
EEI and Taylor dated December 15, 1999 (the "Purchase  Agreement").  Capitalized
terms not  defined  herein  shall  have the  meaning  ascribed  in the  Purchase
Agreement; and

     B. The Purchase  Agreement  provides  for the  delivery  into escrow of One
Hundred Twenty Thousand (120,000) shares of QAD's Common Stock (the "Stock").

     NOW, THEREFORE, QAD and the Escrow Agent hereby agree as follows:

     1.  APPOINTMENT  OF ESCROW AGENT;  DEPOSIT OF STOCK.  QAD and Taylor hereby
constitute  and appoint the Escrow Agent as, and the Escrow Agent hereby  agrees
to assume and perform the duties of, the escrow agent under and pursuant to this
Escrow  Agreement.  The  Escrow  Agent  acknowledges  receipt  of the  Stock  as
evidenced by __ (__) certificates in the name of Taylor  representing the shares
of Stock.

     2.  STOCK.  The  Stock  is to be held by the  Escrow  Agent  in  trust  and
delivered to Taylor or QAD depending  upon whether the  Milestones  set forth in
Exhibit A hereto have or have not been met.

     3. RELEASE OF STOCK.  The Escrow Agent is  authorized  to release the Stock
when it has received from Taylor a written  statement that a specific  Milestone
set forth in Exhibit A to the Purchase Agreement has been reached.  Upon receipt
of the notice by Taylor,  in the form  attached  hereto as Exhibit B, the Escrow
Agent will forward to QAD such notice, as provided in Paragraph 8, and QAD shall
have ten (10)  business  days from  receipt  to accept or reject  the  notice by
written notice to the Escrow Agent.  Unless QAD accepts or rejects the notice as
set forth in the  immediately  preceding  sentence within such ten business (10)
day period,  the Escrow  Agent shall  release to Taylor the portion of the Stock
subject to the notice and such  action  shall be  conclusive  and binding on all
parties hereto.  If the parties are unable to agree on the achievement of one or
more of the Milestones,  then the parties will resolve the matter by arbitration
as provided in the Purchase  Agreement.  Except as set forth  above,  the Escrow
Agent can only deliver  Stock to Taylor if it has received the written  approval
of QAD,  unless the matter has been resolved by arbitration and a certified copy
of the arbitrator's decision has been tendered to the Escrow Agent. If all Stock
is not released by January 31,  2001,  the Escrow Agent will return the Stock to
QAD and this Escrow will terminate.
<PAGE>

     4. DUTIES AND  OBLIGATIONS OF ESCROW AGENT.  The duties and  obligations of
the Escrow Agent shall be limited to, and  determined  solely by, the provisions
of this Escrow Agreement,  and the Escrow Agent is not charged with knowledge of
or any duties or responsibilities in respect of any other agreement or document.
In furtherance and not in limitation of the foregoing:

               (i) the Escrow Agent shall be fully  protected in relying in good
          faith upon any  written  certification,  notice,  direction,  request,
          waiver,  consent,  receipt or other  document  that the  Escrow  Agent
          reasonably  believes to be genuine and duly  authorized,  executed and
          delivered;

               (ii) the  Escrow  Agent  shall  not be  liable  for any  error of
          judgment,  or for any act done or omitted by it, or for any mistake in
          fact or law, or for  anything  that it may do or refrain from doing in
          connection  herewith  in good  faith  and with  such  care,  including
          reasonable  inquiry,  as an ordinarily prudent person in like position
          would  use  under  similar  circumstances;  provided,  however,  that,
          notwithstanding  any other  provision  of this Escrow  Agreement,  the
          Escrow Agent shall be liable for its breach of this Escrow Agreement;

               (iii)  the  Escrow  Agent may seek the  advice of legal  counsel,
          selected with  reasonable  care and given full  information  as to the
          context  in which an issue  arises,  in the  event of any  dispute  or
          question  as to the  construction  of any of the  provisions  of  this
          Escrow  Agreement  or its  duties  hereunder,  and it  shall  incur no
          liability and shall be fully protected in respect of any action taken,
          omitted or suffered by it in good faith in accordance with the opinion
          of such counsel;

               (iv) in the event that the Escrow  Agent  shall in any  instance,
          after seeking the advice of legal counsel  pursuant to the immediately
          preceding  clause,  in good  faith be  uncertain  as to its  duties or
          rights  hereunder,  it shall be  entitled  to refrain  from taking any
          action in that instance and its sole obligation,  in addition to those
          of its  duties  hereunder  as to which  there is no such  uncertainty,
          shall be to keep safely the Stock until it shall be directed otherwise
          in writing  by QAD and  Taylor in the event that the Escrow  Agent has
          not received  such written  direction or court order within sixty (60)
          calendar  days after  requesting  the same, it shall have the right to
          interplead QAD and Taylor in any court of competent  jurisdiction  and
          request that such court determine its rights and duties hereunder;

               (v)  the  Escrow   Agent  may   execute  any  of  its  powers  or
          responsibilities  hereunder and exercise any rights  hereunder  either
          directly or by or through agents or attorneys selected with reasonable
          care,  nothing in this Escrow Agreement shall be deemed to impose upon
          the  Escrow  Agent any duty to  qualify  to do  business  or to act as
          fiduciary  or otherwise  in any  jurisdiction  other than the State of
          California and the Escrow Agent shall not be responsible for and shall
          not be under a duty to examine into or pass upon the validity, binding
          effect,  execution or sufficiency  of this Escrow  Agreement or of any
          agreement amendatory or supplemental hereto; and

                                       2
<PAGE>

               (vi) the  general  provisions  of the Escrow  Agent are  attached
          hereto as Exhibit C.

     5.  COOPERATION.  QAD and Taylor  shall  provide  to the  Escrow  Agent all
instruments  and  documents  within their  respective  powers  necessary for the
Escrow Agent to perform its duties and responsibilities hereunder.

     6.  INDEMNITY;  EXPENSES.  QAD  and  Taylor  shall  jointly  and  severally
indemnify the Escrow Agent  against and hold the Escrow Agent  harmless from any
costs,   damages,   judgments,   attorney's  fees,  expenses,   obligations  and
liabilities of any kind or nature that may be suffered or incurred by the Escrow
Agent as a result of, in connection  with, or arising from or out of the acts or
omissions of the Escrow Agent in the operation,  administration,  enforcement or
performance  of or pursuant  to this Escrow  Agreement  in  accordance  with the
standards of care applicable  under this Escrow  Agreement;  provided,  however,
that neither QAD nor Taylor shall be obligated to indemnify the Escrow Agent for
any  costs,  damages,  judgments,  attorney's  fees,  expenses,  obligations  or
liabilities  caused by the negligence or willful  misconduct of the Escrow Agent
or caused by the breach of this Escrow  Agreement  by the Escrow  Agent.  If any
controversy  arises between QAD and Taylor or with any third person with respect
to the subject matter of this Escrow  Agreement or its terms or conditions,  the
Escrow  Agent  shall not be required  to  determine  the same or take any action
thereupon, but may await the settlement of any such controversy.  In such event,
the Escrow Agent shall not be liable for interest or damages.

     7. RESIGNATION AND REMOVAL OF ESCROW AGENT.

          (a) The Escrow  Agent may  resign as escrow  agent  under this  Escrow
     Agreement by delivering  written  notice thereof to QAD and Taylor at least
     thirty (30)  calendar days prior to the stated  effective date thereof.  In
     addition, the Escrow Agent may be removed and replaced on a date designated
     in a written  instrument  signed by QAD and  Taylor  and  delivered  to the
     Escrow Agent. Notwithstanding the foregoing, no such resignation or removal
     shall be  effective  until a successor  escrow agent has  acknowledged  its
     appointment as such as provided in  paragraph (c)  below.  In either event,
     upon the effective date of such  resignation  or removal,  the Escrow Agent
     shall  deliver  the  Stock  (or  any  remaining  portion  thereof)  to such
     successor escrow agent, together with such records maintained by the Escrow
     Agent in connection with its duties  hereunder and other  information  with
     respect to the Escrow Fund as such successor may reasonably request.

          (b) If a  successor  escrow  agent  shall  not have  acknowledged  its
     appointment as such as provided in  paragraph (c)  below,  in the case of a
     resignation, prior to the expiration of thirty (30) calendar days following
     the date of a notice of  resignation  or, in the case of a removal,  on the
     date designated for the Escrow Agent's removal, as the case may be, because
     QAD and Taylor are unable to  determine  an  appropriate  successor  escrow
     agent,  or for any other  reason,  the Escrow  Agent may select a successor
     escrow agent and any such resulting  appointment  shall be binding upon all

                                       3
<PAGE>

     of the parties to and beneficiaries of this Escrow Agreement, provided that
     any such successor selected by the Escrow Agent shall be a Bank.

          (c) Upon written  acknowledgment by a successor escrow agent appointed
     in  accordance  with the  foregoing  provisions  of this  Section  7 of its
     agreement  to  serve as  escrow  agent  hereunder  and the  receipt  of the
     property then  comprising  the Escrow Fund, the Escrow Agent shall be fully
     released and relieved of all duties, responsibilities and obligations under
     this Escrow  Agreement,  subject to the proviso contained in clause (ii) of
     Section 4 hereof,  and such  successor  escrow agent shall for all purposes
     hereof be the Escrow Agent.

          8. NOTICES. All notices permitted or required by this Escrow Agreement
     shall be in writing and shall be deemed to be  delivered  and  received (a)
     when  personally  delivered,  (b) on the third (3rd) business day after the
     date on  which  deposited  in the  United  States  Mail,  postage  prepaid,
     certified or registered mail, return receipt requested,  (c) on the date on
     which  transmitted  by facsimile  or other  electronic  means  generating a
     receipt  evidencing a successful  transmission  or (d) on the next business
     day after the date on which  deposited  with a regulated  public carrier of
     recognized national standing (e.g., Federal Express), carriage prepaid, for
     overnight delivery, addressed to the party for whom intended at the address
     or  facsimile  set  forth  below,  or  such  other  address,  facsimile  or
     electronic  transmission  address,  notice of which is provided in a manner
     permitted by this Section 10 (provided,  however, that, notwithstanding the
     foregoing,  a copy each such  notice  shall be  provided  to each  party by
     facsimile concurrently with delivery by any other means):

                  If to QAD, to:      QAD Inc.
                                      6450 Via Real
                                      Carpinteria, California  93013
                                      Attention:   General Counsel
                                      Facsimile:   805-566-6080

                  If to Taylor, to:   David A. Taylor
                                      4008 Bayview Avenue
                                      San Mateo, California  94403
                                      Facsimile:  none

                  with a copy to:     Heller Ehrman White and McAuliffe
                                      525 University Avenue
                                      Palo Alto, California  94301
                                      Attn:  Sarah A. O'Dowd
                                      Facsimile:  (650) 324-0638

                                       4
<PAGE>

                  If to the Escrow
                  Agent, to:          Santa Barbara Bank & Trust
                                      _______________________
                                      _______________________
                                      Attn:___________________
                                      Facsimile:_______________

Any notice or communication  directed to Subscribers shall be made in the manner
provided for communications to the Holders hereunder.

     9.  AMENDMENTS,  ETC. This Escrow Agreement may only be amended or modified
by a written  agreement signed by the parties hereto.  No waiver by any party of
any term or  condition  contained of this Escrow  Agreement,  in any one or more
instances,  shall be  deemed to be or  construed  as a waiver of the same or any
other term or condition of this Escrow Agreement on any future occasion.

     10.  GOVERNING  LAW.  THIS  ESCROW  AGREEMENT  SHALL BE  GOVERNED  BY,  AND
CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF CALIFORNIA.

     11. MISCELLANEOUS.  This Escrow Agreement is binding upon and will inure to
the benefit of the parties hereto and their respective  successors and permitted
assigns.  The  headings  used in this Escrow  Agreement  have been  inserted for
convenience of reference only and do not define or limit the provisions  hereof.
This Escrow  Agreement  may be executed in any number of  counterparts,  each of
which will be deemed an original,  but all of which together will constitute one
and the same instrument.

                                       5
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Escrow Agreement to
be executed as of the date first above written.

                                        QAD:

                                        QAD Inc.,
                                        a Delaware corporation

                                       By:/s/ A.J. Moyer
                                          -----------------------------
                                           Name:  Albert J. Moyer
                                           Title: Chief Financial Officer

                                        TAYLOR:

                                        /s/ David A. Taylor
                                        ------------------------------
                                        DAVID A. TAYLOR

                                        ESCROW AGENT:

                                        SANTA BARBARA BANK & TRUST

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

<PAGE>

                                    Exhibit A
                                       to
                                Escrow Agreement

                                   MILESTONES

     Upon  achieving  each of the following six  objectives  (the  completion of
which shall be to the reasonable satisfaction of QAD), David Taylor will receive
20,000 shares of QAD stock as consideration  for his Enterprise  Engines shares.
Where  sub-objectives  are  specified,  the  indicated  number of shares will be
awarded as each sub-objective is achieved.

1.       Shipping AT&T

*    Delivery of AT&T Wireless functionality by 12/15/99 (20,000)

          Delivery  requires  sign-off  from  AT&T  that eQ was  delivered  with
          promised  functionality,  as described in the attachment,  and that eQ
          works to specification  at AT&T Wireless,  except,  however,  that the
          functionality described as "Send production order to MFG/PRO" will not
          be considered in determining whether this objective has been met.

2.       eQ Marketing

*    eQ Vision presentation (3,000)

          Completion  by January 31, 2000 of a  PowerPoint  vision  presentation
          with a  presenter's  script for the eQ product line for  collaborative
          applications.

*    eQ Product presentation (2,000 ea.)

          Completion  by January 31, 2000 of a PowerPoint  product  presentation
          along with a presenter's script of eQ v2.

          Completion by Q4 2000 (or per development  schedule for eQ v3 Beta) of
          a PowerPoint  product  presentation along with a presenter's script of
          eQ v3.

*    eQ Product Demonstration (1,800 ea.)

          Completion by January 31, 2000 of a Demonstration script for eQ v2.

          Completion by Q4 2000 (or per development  schedule for eQ v3 Beta) of
          a demonstration script for eQ v3.

*    eQ Product Brochure (1,800 ea.)

          Completion by April 30, 2000 of an updated eQ Product  Brochure for eQ
          v2 for conceptual images and text.

<PAGE>

          Completion by Q4 2000 (or per development  schedule for eQ v3 Beta) of
          an updated eQ Product  Brochure  for eQ v3 for  conceptual  images and
          text.

*    eQ Documentation (4,000 or 2,000 ea.)

          Completion in accordance with development  schedule for eQ Beta and GA
          deliverables of high-level product documentation for a manager's guide
          to eQ  consisting  of 30 to 40  pages.  This can be used for  training
          materials as well as excerpts for product  brochures.  This high level
          documentation or managers guide is for eQ v2 and eQ v3.  Documentation
          is for eQ's functionality and technology.

*    eQ General Sales  Presentations and review of QAD Marketing Materials (1800
     total with 150 Per month)

          Completion  of general  sales  presentations  as  required  as well as
          review of QAD marketing materials for improvement.

3.        IBM Partnership

*    Benefits  article (4,000 upon completion of article,  2,000 upon acceptance
     for publication of article)

          Completion by September 30, 2000, and acceptance for  publication,  by
          December  31, 2000,  of an article on the  benefits of Internet  order
          management using eQ and SF as an example.

*    Collateral review (6,000)

          Completion  by June 30, 2000 of a promotional  paper and review,  with
          proposals  for,  other  collateral  materials  produced by QAD for the
          promotion of eQ through IBM's channels.

*    IBM Presentations (4,000)

          Completion in accordance  with Q1 through Q3 2000 launch plan roll-out
          of six presentations  (which may be at IBM facilities duration and may
          be 1 to 2 days each) on the  benefits of eQ and eQ  developed on IBM's
          middle-ware   products  to  IBM  personnel,   customers  and  business
          partners.

*    IBM Road Show (4,000)

          Completion in accordance  with Q1 through Q3 2000 launch plan roll-out
          schedule of a 6 to 8 city international road show to promote eQ to IBM
          personnel, customers and business partners.
<PAGE>

4.       Industry and Security Analysts

*    Analyst strategy (5,000)

          Completion  by April  30,  2000 of a  strategic  plan  and  supporting
          presentation  for  selling  the vision  and the  reality of eQ to such
          industry analysts as AMR, Gartner,  Forrester,  Metagroup,  and Yankee
          Group.

*    Analysts white paper (5,000)

          Completion  by  April  30,  2000  of an  illustrated  white  paper  of
          approximately  10-15 pages that  communicates the key advantages of eQ
          to analysts.

*    Positive Press (2,500 per write-up)

          Publication  by December 31, 2000 of two  one-page  write-ups of eQ by
          the industry analysts (2500 shares per write-up).

*    Promotional Road Show (5,000)

          Completion  in  accordance  with Q1  through Q3 launch  plan  roll-out
          schedule  of a 6 to 8 city  promotional  road  show for  Industry  and
          Security Analysts.

5.       Convergent Engineering Class

*    Course update (8,000)

          Completion  by May 30, 2000 of an update to the CE 3 day course for eQ
          v2 and v3) to reflect  current  industry trends and to incorporate the
          advanced concepts used in eQ (roles,  relationships,  etc.) as well as
          any concepts from IBM SF.

*    Train the Trainer (7,000)

          Completion  by  September  30,  2000 of  training  of  designated  QAD
          personnel (4 to 5 personnel) on CE to be a certified CE trainer.

*    Course presentations (5,000)

          Completion  between Q2 and Q4 2000 of teaching along with or providing
          assistance to QAD's trainer in connection  with the updated  course at
          five sessions (1000 shares per session).

6.       Gartner

          Placement  by  Gartner  of QAD in the "4th"  quadrant  of  either  its
          large-company ERP matrix or its new collaborative matrix. (20,000)

<PAGE>

                                    Exhibit B
                                       to
                                Escrow Agreement

     The  undersigned  hereby  declares,  under  penalty  of  perjury,  that the
following Milestone has been achieved:

Date Achieved   Milestone Description  Number of Shares  Basis for Achievement
-------------   ---------------------  ----------------  ---------------------

Executed at San Mateo, California.

Date:_____________                           ______________________________
                                             DAVID A. TAYLOR

<PAGE>

                          Exhibit C to Escrow Agreement
                               General ProvisionsCONSULTING AGREEMENT

     THIS CONSULTING AGREEMENT (the "Agreement") is between DAVID A. TAYLOR (the
"Consultant") and QAD Inc., a Delaware corporation (the "Company").

                                   BACKGROUND

     A. The Consultant has the background,  technical expertise,  and experience
to assist the  Company,  and is offering  his  services as a  consultant  to the
Company on an as needed basis;

     B.  The  Company  desires  to  retain  the  Consultant  as  an  independent
consultant; and

     C. The parties hereto wish to memorialize the Consultant's  consulting work
for the Company by entering into this written Agreement.

                                    AGREEMENT

     Intending to be legally bound, the parties hereto agree as follows:

     1. DUTIES. The Company hereby retains the Consultant as a consultant to the
Company.  It is understood and agreed, and it is the intention of the parties to
this Agreement,  that the Consultant is an independent  contractor,  and not the
employee or agent of the Company for any purpose whatsoever.

     2.  INDEPENDENCE.   The  Company  and  the  Consultant  conduct  their  own
businesses  each for its or his own account and risk.  Neither  party shall have
the  power or  authority  to act on behalf  of or incur  any  liability  for the
account of the other  party save to the extent  that the same is required in the
normal  course  of  the  completion  of a  project.  Each  party  hereto  hereby
indemnifies and holds the other harmless from any claims resulting from a breach
of this Paragraph 2.

     3. SERVICES.  The  Consultant  will perform tasks for the Company solely as
requested by the Company and agrees to make himself  available for approximately
twenty (20) hours of service per week, at such times as his schedule allows. The
Consultant  will  be  paid a fee of ONE  HUNDRED  THOUSAND  DOLLARS  ($100,000),
payable in twelve (12) equal  monthly  installments,  commencing on December 16,
1999. The Consultant  will present an accounting of hours spent on the Company's
business,  along with any reimbursable  expenses and receipts for said expenses,
to the Company on a monthly basis.

     In performing  services under this  Agreement,  the  Consultant,  except as
otherwise  provided,  shall be  responsible  for paying  all costs and  expenses

                                       1
<PAGE>

incidental to the  performance  of such services,  except for reasonable  travel
expenses and lodging  accommodations  based upon the Company's  employee  travel
policies,  a copy of which will be provided,  and which have been  authorized in
advance by the Company.

     4. BUSINESS DISCLOSURES. The Consultant agrees that during the term of this
Agreement,  or  thereafter,  he will not disclose,  other than to an employee or
director  of the  Company,  any  confidential  information  as to  the  Company,
including any information relating to the Company's business,  customers,  trade
or industrial  practices or trade secrets or know-how,  without prior consent by
the Company, and that at the termination of this Agreement, and thereafter,  for
any reason,  the  Consultant  shall not remove or retain,  without the Company's
express  written  consent,  any  hardware,  software,  calculations  or letters,
papers,  drawings,  blueprints or other confidential  information of any type or
description related to the Company.

     The  Consultant  retains the rights to book  copyrights  and  royalties  on
existing   books,   plus  rights  to  the  Convergent   Engineering   trademark,
intellectual  property and  certification  process.  The Company is to receive a
royalty-free license to use said intellectual property.

     5. DEVELOPMENT OF INVENTIONS AND IMPROVEMENTS.

     5.1  Notice.  The  Consultant  agrees to keep the  Company  informed of any
inventions,  discoveries,  improvements, trade secrets and secret processes made
by him, in whole or in part,  or  conceived  by the  Consultant  alone,  or with
others,  which result from any work which the  Consultant  may do for, or at the
request of, the Company.

     5.2 Company Property.  Such inventions,  discoveries,  improvements,  trade
secrets  and secret  processes  shall be the  property  of the  Company,  or its
nominees,  whether patented or not, and the Consultant shall,  without charge to
the  Company,  assign to the  Company  all  right,  title and  interest  in such
inventions,  discoveries,  improvements, trade secrets and secret processes, and
shall execute,  acknowledge and deliver any instruments  confirming the complete
ownership by the Company of such inventions,  discoveries,  improvements,  trade
secrets and secret processes.

     5.3  Confidentiality.  The  Consultant  shall not,  at any time,  except as
required in the conduct of the business of the Company,  or except as authorized
in writing by the Company, publish, disclose or authorize anyone else to publish
or disclose  any secret or  confidential  matters  relating to any aspect of the
business of the  Company,  with which the  Consultant's  services in any way may
acquaint the Consultant.

     6.  TERMINATION.  The  Company  may  terminate  this  Agreement  should the
Consultant  die,  become  disabled  and be unable  to  perform  his  obligations
hereunder,  or should the  Consultant  breach the terms of this  Agreement,  and

                                       2
<PAGE>

should  the  Consultant  not cure the  breach  within  thirty  (30)  days of the
Company's  notice of the Consultant's  breach of this Agreement.  The Consultant
may terminate this Agreement on thirty (30) days? written notice to the Company.

     7.  REMEDIES.  It is agreed that in the event of any breach,  violation  or
evasion of terms of this  Agreement,  such  breach,  violation  or evasion  will
result in  immediate  and  irreparable  injury and harm to the  Company and will
authorize  recourse by the Company to the  remedies of  injunction  and specific
performance  or either of such  remedies,  as well as to all legal or  equitable
remedies to which the Company may be entitled.

     8.  GOVERNING  LAW. This  Agreement and the rights and  obligations  of the
parties hereunder shall be construed in accordance with and governed by the laws
of the State of California then in effect.

     9.  SEVERABILITY.   Any  provision  of  this  Agreement  that  in  any  way
contravenes any provision of applicable law shall, to the extent that the law is
contravened,  be considered  severable and not applicable and shall not alter or
affect any other provision or provisions of this Agreement.

     10.  COMPLETE  AGREEMENT;  AMENDMENT.  The  provisions  of  this  Agreement
constitute  the  entire  Agreement  among the  parties.  This  Agreement  may be
amended, modified or otherwise changed only by an instrument in writing executed
by all of the parties,  and no waiver,  alteration or modification of any of the
provisions  hereof shall be binding upon a party unless in writing and signed by
such  party  or his  duly  authorized  representative.  The  provisions  of this
Agreement  supersede  and revoke the  provisions  of any other  agreement of the
parties related to the subject matter hereof.

     11. TAXES AND OTHER  LIABILITIES.  The Consultant  shall indemnify and hold
harmless the Company from and against any taxes, interests or penalties assessed
against the Company for payments made to the  Consultant,  or any liabilities or
obligations  incurred  by the  Consultant  which  have  not been  authorized  in
writing, in advance, by the Company.

     12.  ARBITRATION.  Any dispute relating to this Agreement shall be resolved
in accordance with the arbitration  provisions of the Enterprise  Engines,  Inc.
Stock  Purchase  Agreement  dated  December  15,  1999  among the  Company,  the
Consultant and Enterprise Engines, Inc.

                                       3
<PAGE>

     IN WITNESS  WHEREOF,  the parties  hereto have executed  this  Agreement at
Santa Barbara, California this 15th day of December, 1999.

                                      COMPANY:

                                      QAD Inc.,
                                      a Delaware corporation

                                      By: /s/  A.J. Moyer
                                         -------------------------------
                                         Name:  Albert J. Moyer
                                         Title:  Chief Financial Officer

                                       C0NSULTANT:

                                       /s/ David A. Taylor
                                       --------------------------------
                                       David A. Taylor

                                       4
<PAGE>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00001-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00001-of-00352.parquet"}]]