Document:

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                                                                   EXHIBIT 10.2

                      FOURTH AMENDMENT TO CREDIT AGREEMENT

     THIS FOURTH AMENDMENT TO CREDIT AGREEMENT (the "Fourth Amendment") is made
and dated as of the 18th day of April, 2000, by and among QAD INC., a Delaware
corporation (the "Borrower"), the Lenders, and BANK ONE, NA, formerly known as
The First National Bank of Chicago, as agent for the Lenders (in such capacity,
the "Agent").

                                    RECITALS

     A. Pursuant to that certain Credit Agreement dated as of April 19, 1999 by
and among the Borrower, the Lenders, and the Agent (as amended from time to
time, the "Credit Agreement"), the Lenders agreed to extend credit to the
Borrower on the terms and subject to the conditions set forth therein. All
capitalized terms not otherwise defined herein shall have the meanings given to
such terms in the Credit Agreement.

     B. The Borrower has requested that the Agent and the Lenders amend the
Credit Agreement in certain respects and waive an existing Event of Default and
the Agent and the Lenders have agreed to do so on the terms and subject to the
conditions set forth herein.

     NOW, THEREFORE, in consideration of the foregoing Recitals and for other
valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereto hereby agree as follows:

                                    AGREEMENT

     1. WAIVER. The Agent and the Lenders hereby agree that the Event of Default
existing under the Credit Agreement as a result of the failure of the Company to
be in compliance with the financial covenant set forth in Section 6.23.4 of the
Credit Agreement at the end of the fiscal quarter and fiscal year ended January
31, 2000 is hereby waived.

     2. RESERVATION OF RIGHTS. The Borrower hereby acknowledges and agrees that
nothing contained herein shall constitute any agreement by the Agent or any
Lender to waive: (a) any future Event of Default under Section 6.23.4 of the
Credit Agreement, or (b) any other Event of Default, whether existing on the
date hereof or arising in the future and whether or not known to the Agent and
the Lenders or which should be known to the Agent and the Lenders in the course
of their business.

     3. AMENDMENT OF FINANCIAL COVENANTS. To reflect the agreement of the Agent
and the Lenders to amend certain of the financial covenants set forth in the
Credit Agreement:

         (a) Section 6.23.1 is hereby amended to read in its entirety as
follows:

              "6.23.1. INTEREST COVERAGE RATIO. The Borrower will not permit the
ratio, determined as of the end of each of its fiscal quarters, commencing with
the fiscal quarter ending July 31, 2000, for the then most-recently ended four
fiscal quarters, of (i) Consolidated EBITDA plus Consolidated Rentals to (ii)
Consolidated Interest Expense plus Consolidated Rentals to be less than 1.30 to
1.0."

<PAGE>

         (b) Section 6.23.2 is hereby amended to read in its entirety as
follows:

              "6.23.2. LEVERAGE RATIO. The Borrower will not permit the ratio,
determined as of the end of each of its fiscal quarters, commencing with the
fiscal quarter ending July 31, 2000, of (i) Consolidated Funded Indebtedness to
(ii) Consolidated EBITDA less Consolidated Capital Expenditures for the then
most-recently ended four fiscal quarters to be greater than 2.00 to 1.0."

         (c) Section 6.23.3 is hereby amended to read in its entirety as
follows:

              "6.23.3. MINIMUM NET WORTH. The Borrower will at all times
maintain Consolidated Net Worth of not less than the sum of (i) $66,000,000 plus
(ii) 75% of Consolidated Net Income earned in each fiscal quarter beginning with
the quarter ending April 30, 2000 (without deduction for losses), and plus (iii)
100% of the net proceeds from any equity offering of the Borrower or any of its
Subsidiaries."

         (d) Section 6.23.4 is hereby amended to read in its entirety as
follows:

              "6.23.4. MINIMUM EBITDA. The Borrower will: (i) not have a
negative Consolidated EBITDA of more than $3,250,000 for the fiscal quarter
ending April 30, 2000, and (ii) thereafter, at all times maintain Consolidated
EBITDA of not less than: (1) for the fiscal quarter ending July 31, 2000,
$6,500,000, (2) for the fiscal quarter ending October 31, 2000, $7,500,000, and
(3) for the fiscal quarter ending January 31, 2001 and for each fiscal quarter
end thereafter, $10,000,000."

         (e) Section 6.23.5 is hereby amended to read in its entirety as
follows:

              "6.23.5. CAPITAL EXPENDITURES. The Borrower will not, nor will it
permit any Subsidiary to, expend or be committed to expend in excess of
$3,000,000 in the aggregate for the Borrower and such Subsidiaries for Capital
Expenditures during each of the fiscal quarters ending April 30, 2000 and July
31, 2000."

         (f) Schedule I to the Compliance Certificate is hereby amended to
conform to the amendments to the financial covenants set forth in this Paragraph
3.

     4. PRICING MODIFICATION. In consideration of the agreement of the Agent and
the Lenders to enter into this Fourth Amendment, the parties hereto hereby agree
as follows:

         (a) From and after the date of this Fourth Amendment the Eurocurrency
pricing option incorporated in the Credit Agreement shall no longer be
available. All Advances funded from and after such date shall be denominated in
Dollars and funded as Floating Rate Advances and Floating Rate Advances
outstanding shall not be permitted to be converted into Eurocurrency Advances.
All Eurocurrency Advances outstanding on the date of this Fourth Amendment shall
be automatically converted into Floating Rate Advances payable in Dollars, it
being agreed by the Agent and the Lenders that any funding indemnification which
would otherwise be payable by the Borrower pursuant to Section 3.3 of the Credit
Agreement as a result of the conversion of outstanding Eurocurrency Advances
prior to the last day of the Interest Period therefor as required hereunder is
hereby waived by the Lenders.

<PAGE>

         (b) The Pricing Schedule dated as of July 1, 1999 (the "Existing
Pricing Schedule") is hereby amended and restated to read in its entirety as set
forth on the Pricing Schedule attached hereto as AMENDMENT EXHIBIT 1 (the
"Amended Pricing Schedule"), which Amended Pricing Schedule shall replace and
supercede the Existing Pricing Schedule. It is expressly acknowledged and agreed
by the Borrower that from and after the date of this Fourth Amendment there
shall be no pricing differential based upon the Leverage Ratio of the Borrower
and that the "Level I Status" and "Level II Status" provisions contained in the
Existing Pricing Schedule are hereby deleted in their entirety.

         (c) The Credit Agreement and the other Loan Documents are hereby
amended to conform to the amendment to the pricing provisions of the Credit
Agreement as provided above.

     5. EFFECTIVE DATE. This Fourth Amendment shall be effective, retroactive to
the date first above written, upon the date upon which the Agent has received:

         (a) A copy of this Fourth Amendment, duly executed by all parties
hereto; and

         (b) Such corporate resolutions, incumbency certificates and other
authorizing documentation as the Agent may require.

     6. REAFFIRMATIONS. The Borrower hereby affirms and agrees that: (a) the
execution and delivery by the Borrower of and the performance of its obligations
under this Fourth Amendment shall not in any way impair, invalidate or otherwise
affect any of the obligations of the Borrower or the rights of the Agent and the
Lenders under the Borrower Security Agreement or any other document, agreement
or instrument made or given by the Borrower or any Subsidiary Borrower in
connection therewith, (b) the term "Secured Obligations" as used in the Borrower
Security Agreement and any Subsidiary Borrower Security Agreement includes,
without limitation, the Obligations of the Company under the Credit Agreement as
amended to date, including, without limitation, pursuant to this Fourth
Amendment, and (c) each of the Borrower Security Agreement and any Subsidiary
Borrower Security Agreement remains in full force and effect and continues to
constitute a first priority security interest in and lien upon the Collateral.

     7. NO OTHER AMENDMENT. Except as expressly amended herein, the Credit
Agreement and other Loan Documents shall remain in full force and effect as
currently written.

     8. COUNTERPARTS. This Fourth Amendment may be executed in any number of
counterparts, each of which when so executed shall be deemed to be an original
and all of which when taken together shall constitute one and the same
agreement.

     9. REPRESENTATIONS AND WARRANTIES. The Borrower hereby represents and
warrants to the Agent and each Lender as follows:

         (a) The Borrower has the corporate power and authority and the legal
right to execute, deliver and perform this Fourth Amendment and has taken all
necessary corporate action to authorize the execution, delivery and performance
of this Fourth Amendment. This Fourth Amendment has been duly executed and
delivered on behalf of the Borrower and constitutes the legal, valid and binding
obligation of the Borrower, enforceable against the Borrower in accordance with
its terms.

<PAGE>

         (b) At and as of the date of execution hereof and at and as of
effective date hereof: (1) the representations and warranties of the Borrower
contained in the Credit Agreement and the other Loan Documents are accurate and
complete in all respects, and (2) other than the Event of Default described in
Paragraph 1 above, there has not occurred an Event of Default or Potential
Default under the Credit Agreement.

         (c) Each of the representations and warranties set forth in the
Acknowledgment and Agreement attached hereto by each of the Subsidiary Borrowers
are accurate and complete in all respects.

     IN WITNESS WHEREOF, the parties hereto have caused this Fourth Amendment to
be executed as of the day and year first above written.

                           QAD INC., a Delaware corporation

                                 By________________________________________
                                 Name______________________________________
                                 Title_____________________________________

                                 BANK ONE, NA, formerly known as THE FIRST
                                 NATIONAL BANK OF CHICAGO, as the
                                 sole Lender and as the Agent

                                 By _______________________________________
                                     James P. Moore, Senior Vice President

<PAGE>

                          ACKNOWLEDGMENT AND AGREEMENT
                            OF SUBSIDIARY BORROWERS

     Each of the undersigned Subsidiary Borrowers hereby acknowledges and agrees
and represents and warrants as follows:

     1. Such Subsidiary Borrower has reviewed and acknowledges the effectiveness
of the Fourth Amendment and all previous amendments to the Credit Agreement and
related Loan Documents and confirms that the Fourth Amendment constitutes, and
each such previous amendment concurrently constituted, a conforming amendment to
the Related Facility Agreement to which such Subsidiary Borrower is party and
all documents, agreements and instruments made or given by such Subsidiary
Borrower in connection therewith. Without limiting the generality of the
foregoing, such Subsidiary Borrower acknowledges that the modifications to
pricing described in Paragraph 4 of the Fourth Amendment are applicable to the
pricing provisions of said Related Facility Agreement.

     2. The execution and delivery by the Borrower and agreement by the Borrower
to the terms of the Fourth Amendment and the performance by the Borrower of its
obligations under the Fourth Amendment are conclusively binding upon such
Subsidiary Borrower and shall not in any way impair, invalidate or otherwise
affect any of the obligations of such Subsidiary Borrower or the rights of the
Agent and the Lenders under the Subsidiary Borrower Loan Documents to which such
Subsidiary Borrower is a party, including, without limitation, under the Related
Facility Agreement and the Subsidiary Borrower Security Agreement.

     3. Such Subsidiary Borrower has the corporate power and authority and the
legal right to execute, deliver and perform this Acknowledgment and Agreement
and has taken all necessary corporate action to authorize the execution,
delivery and performance of this Acknowledgment and Agreement. This
Acknowledgment and Agreement has been duly executed and delivered on behalf of
such Subsidiary Borrower and constitutes the legal, valid and binding obligation
of such Subsidiary Borrower, enforceable against such Subsidiary Borrower in
accordance with its terms.

     4. At and as of the date of execution hereof and at and as of effective
date hereof: (a) the representations and warranties of such Subsidiary Borrower
contained in the Related Facility Agreement and the Subsidiary Borrower Security
Agreement to which it is party are accurate and complete in all respects, and
(b) other than the Event of Default described in Paragraph 1 of the Fourth
Amendment, there has not occurred an Event of Default or Potential Default under
said Related Facility Agreement.

     5. This Acknowledgment and Agreement may be executed in any number of
counterparts, each of which when so executed shall be deemed to be an original
and all of which when taken together shall constitute one and the same
agreement.

     Dated as of April 18, 2000.

                                        QAD AUSTRALIA PTY LIMITED

                                        By: __________________________
                                             Barry Anderson, Director

<PAGE>

                                        QAD EUROPE BV

                                        By: __________________________
                                             Barry Anderson, Director

                                        QAD EUROPE LIMITED

                                        By: ___________________________
                                             Barry Anderson, Director

<PAGE>

                              AMENDMENT EXHIBIT 1

                                PRICING SCHEDULE
                             (as of April 18, 2000)

<TABLE>
<CAPTION>

------------------------------------------------------------- ----------------------------------------------------------
                     <S>                                                               <C>
                     APPLICABLE MARGIN
------------------------------------------------------------- ----------------------------------------------------------

                   Floating Rate Advances                                               1.00%
------------------------------------------------------------- ----------------------------------------------------------

------------------------------------------------------------- ----------------------------------------------------------
                     APPLICABLE MARGIN
------------------------------------------------------------- ----------------------------------------------------------

                    Letter of Credit Fee                                                3.25%
------------------------------------------------------------- ----------------------------------------------------------

                       Commitment Fee                                                   0.625%
------------------------------------------------------------- ----------------------------------------------------------
</TABLE><PAGE>

                                                                  EXHIBIT 10.3

                       FIFTH AMENDMENT TO CREDIT AGREEMENT

         THIS FIFTH AMENDMENT TO CREDIT AGREEMENT (the "Fifth Amendment") is
made and dated as of the 26th day of May, 2000, by and among QAD INC., a
Delaware corporation (the "Borrower"), the Lenders, and BANK ONE, NA,
formerly known as The First National Bank of Chicago, as agent for the
Lenders (in such capacity, the "Agent").

                                    RECITALS

         A. Pursuant to that certain Credit Agreement dated as of April 19, 1999
by and among the Borrower, the Lenders, and the Agent (as amended from time to
time, the "Credit Agreement"), the Lenders agreed to extend credit to the
Borrower on the terms and subject to the conditions set forth therein. All
capitalized terms not otherwise defined herein shall have the meanings given to
such terms in the Credit Agreement.

         B. The Borrower has requested that the Agent and the Lenders reduce the
dollar commitment of the Lenders under the Credit Agreement and amend the Credit
Agreement in certain other respects and the Agent and the Lenders have agreed to
do so on the terms and subject to the conditions set forth herein.

         NOW, THEREFORE, in consideration of the foregoing Recitals and for
other valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereto hereby agree as follows:

                                    AGREEMENT

         1. REDUCTION IN COMMITMENT. The Borrower, the Agent and the Lender
hereby agree that effective as of the Effective Date, the Commitment of Bank
One, as the sole current Lender under the Credit Agreement, shall be reduced
from $25,000,000 to $20,000,000, with the Aggregate Commitment thereby being
reduced to $20,000,000.

         2. LIBERALIZATION OF RESTRICTIONS ON ACQUISITIONS. To reflect the
agreement of the Agent and the Lenders to liberalize the restrictions on
additional acquisitions by the Borrower and its Subsidiaries, Section 6.14 of
the Credit Agreement is hereby amended to read in its entirety as follows:

                  "6.14. INVESTMENTS AND ACQUISITIONS. The Borrower will not,
         nor will it permit any Subsidiary to, make or suffer to exist any
         Investments (including without limitation, loans and advances to, and
         other Investments in, Subsidiaries), or commitments therefor, or to
         create any Subsidiary or to become or remain a partner in any
         partnership or joint venture, or to make any Acquisition of any Person,
         except:

                           (i)     Cash Equivalent Investments.

                           (ii)    Existing Investments in Subsidiaries and
                  other Investments in existence on the date hereof and
                  described on SCHEDULE 6.14(ii).

<PAGE>

                           (iii)   The French Acquisition.

                           (iv)    Other Acquisitions consummated from and after
                  May 1, 2000 to and including January 31, 2001 (the "Current
                  Acquisition Period"): (a) for a total consideration which,
                  when taken together with the total consideration for all other
                  Acquisitions by the Borrower and its Subsidiaries during the
                  Current Acquisition Period, would not exceed $5,500,000, and
                  (b) for a total cash consideration, which when taken together
                  with the total cash consideration for all other Acquisitions
                  by the Borrower and its Subsidiaries during the Current
                  Acquisition Period which cash consideration is payable on or
                  before January 31, 2001, would not exceed $3,000,000."

         3. EFFECTIVE DATE. This Fifth Amendment shall be effective, retroactive
to the date first above written, upon the date upon which the Agent has
received:

                  (a)      A copy of this Fifth Amendment, duly executed by all
parties hereto; and

                  (b)      Such corporate resolutions, incumbency certificates
and other authorizing documentation as the Agent may require.

         4. REAFFIRMATIONS. The Borrower hereby affirms and agrees that: (a) the
execution and delivery by the Borrower of and the performance of its obligations
under this Fifth Amendment shall not in any way impair, invalidate or otherwise
affect any of the obligations of the Borrower or the rights of the Agent and the
Lenders under the Borrower Security Agreement or any other document, agreement
or instrument made or given by the Borrower or any Subsidiary Borrower in
connection therewith, (b) the term "Secured Obligations" as used in the Borrower
Security Agreement and any Subsidiary Borrower Security Agreement includes,
without limitation, the Obligations of the Company under the Credit Agreement as
amended to date, including, without limitation, pursuant to this Fifth
Amendment, and (c) each of the Borrower Security Agreement and any Subsidiary
Borrower Security Agreement remains in full force and effect and continues to
constitute a first priority security interest in and lien upon the Collateral.

         5. NO OTHER AMENDMENT. Except as expressly amended herein, the Credit
Agreement and other Loan Documents shall remain in full force and effect as
currently written.

         6. COUNTERPARTS. This Fifth Amendment may be executed in any number of
counterparts, each of which when so executed shall be deemed to be an original
and all of which when taken together shall constitute one and the same
agreement.

         7. REPRESENTATIONS AND WARRANTIES. The Borrower hereby represents and
warrants to the Agent and each Lender as follows:

                  (a)      The Borrower has the corporate power and authority
and the legal right to execute, deliver and perform this Fifth Amendment and
has taken all necessary corporate action to authorize the execution, delivery
and performance of this Fifth Amendment. This Fifth Amendment has been duly
executed and delivered on behalf of the Borrower and constitutes the legal,
valid and binding obligation of the Borrower, enforceable against the
Borrower in accordance with its terms.

<PAGE>

                  (b)      At and as of the date of execution hereof and at
and as of effective date hereof: (1) the representations and warranties of
the Borrower contained in the Credit Agreement and the other Loan Documents
are accurate and complete in all respects, and (2) there has not occurred an
Event of Default or Potential Default under the Credit Agreement.

                  (c)      Each of the representations and warranties set
forth in the Acknowledgment and Agreement attached hereto by each of the
Subsidiary Borrowers are accurate and complete in all respects.

         IN WITNESS WHEREOF, the parties hereto have caused this Fifth Amendment
to be executed as of the day and year first above written.

                         QAD INC., a Delaware corporation

                         By
                            --------------------------------------------------

                         Name
                             -------------------------------------------------

                         Title
                              ------------------------------------------------

                         BANK ONE, NA, formerly known as THE FIRST NATIONAL
                         BANK OF CHICAGO, as the sole Lender and as the
                         Agent

                         By
                            --------------------------------------------------
                            James P. Moore, Senior Vice President

<PAGE>

                          ACKNOWLEDGMENT AND AGREEMENT
                             OF SUBSIDIARY BORROWERS

         Each of the undersigned Subsidiary Borrowers hereby acknowledges and
agrees and represents and warrants as follows:

         1.       Such Subsidiary Borrower has reviewed and acknowledges the
effectiveness of the Fifth Amendment and all previous amendments to the Credit
Agreement and related Loan Documents and confirms that the Fifth Amendment
constitutes, and each such previous amendment concurrently constituted, a
conforming amendment to the Related Facility Agreement to which such Subsidiary
Borrower is party and all documents, agreements and instruments made or given by
such Subsidiary Borrower in connection therewith. Without limiting the
generality of the foregoing, such Subsidiary Borrower acknowledges that the
modifications to pricing described in Paragraph 4 of the Fifth Amendment are
applicable to the pricing provisions of said Related Facility Agreement.

         2.       The execution and delivery by the Borrower and agreement by
the Borrower to the terms of the Fifth Amendment and the performance by the
Borrower of its obligations under the Fifth Amendment are conclusively binding
upon such Subsidiary Borrower and shall not in any way impair, invalidate or
otherwise affect any of the obligations of such Subsidiary Borrower or the
rights of the Agent and the Lenders under the Subsidiary Borrower Loan Documents
to which such Subsidiary Borrower is a party, including, without limitation,
under the Related Facility Agreement and the Subsidiary Borrower Security
Agreement.

         3.       Such Subsidiary Borrower has the corporate power and authority
and the legal right to execute, deliver and perform this Acknowledgment and
Agreement and has taken all necessary corporate action to authorize the
execution, delivery and performance of this Acknowledgment and Agreement. This
Acknowledgment and Agreement has been duly executed and delivered on behalf of
such Subsidiary Borrower and constitutes the legal, valid and binding obligation
of such Subsidiary Borrower, enforceable against such Subsidiary Borrower in
accordance with its terms.

         4.       At and as of the date of execution hereof and at and as of
effective date hereof: (a) the representations and warranties of such Subsidiary
Borrower contained in the Related Facility Agreement and the Subsidiary Borrower
Security Agreement to which it is party are accurate and complete in all
respects, and (b) other than the Event of Default described in Paragraph 1 of
the Fifth Amendment, there has not occurred an Event of Default or Potential
Default under said Related Facility Agreement.

         5.       This Acknowledgment and Agreement may be executed in any
number of counterparts, each of which when so executed shall be deemed to be an
original and all of which when taken together shall constitute one and the same
agreement.

         Dated as of April 18, 2000.

                                        QAD AUSTRALIA PTY LIMITED

                                        By:
                                            ------------------------
                                            Barry Anderson, Director

<PAGE>

                                        QAD EUROPE BV

                                        By:
                                            ------------------------
                                            Barry Anderson, Director

                                        QAD EUROPE LIMITED

                                        By:
                                            ------------------------
                                            Barry Anderson, Director

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