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                                                                   Exhibit 10.13

                             SOFTWARE SPECTRUM, INC.
                         MANAGEMENT CONTINUITY AGREEMENT

         This Agreement (the "Agreement") is entered into by and between
Software Spectrum, Inc., a Texas corporation (the "Company"), and James W. Brown
(the "Executive"), dated as of the 1st day of March, 1998.

         The Board of Directors of the Company (the "Board"), has determined
that it is in the best interests of the Company and its shareholders to assure
that the Company will have the continued dedication of the Executive,
notwithstanding the possibility, threat or occurrence of a Change of Control (as
defined in Section 2) of the Company. The Board believes it is imperative to
diminish the inevitable distraction of the Executive by virtue of the personal
uncertainties and risks created by a pending or threatened Change of Control and
to encourage the Executive's full attention and dedication to the Company
currently and in the event of any threatened or pending Change of Control, and
to provide the Executive with compensation and benefits arrangements upon a
Change of Control which ensure that the compensation and benefits expectations
of the Executive will be satisfied and which are competitive with those of other
corporations. Therefore, in order to accomplish these objectives, the Board has
caused the Company to enter into this Agreement.

                 NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

1.       CERTAIN DEFINITIONS.

         (a)      The "Effective Date" shall mean the first date during the
                  Change of Control Period (as defined in Section 1(b)) on which
                  a Change of Control occurs. Anything in this Agreement to the
                  contrary notwithstanding, if a Change of Control occurs and if
                  the Executive's employment with the Company is terminated
                  prior to the date on which the Change of Control occurs, and
                  if it is reasonably demonstrated by the Executive that such
                  termination of employment (i) was at the request of a third
                  party who has taken steps reasonably calculated to effect the
                  Change of Control or (ii) otherwise arose in connection with
                  or anticipation of the Change of Control, then for all
                  purposes of this Agreement the "Effective Date" shall mean the
                  date immediately prior to the date of such termination of
                  employment.

         (b)      The "Change of Control Period" shall mean the period
                  commencing on the date hereof and ending on the second
                  anniversary of such date; provided, however, that commencing
                  on the date one year after the date hereof, and on each annual
                  anniversary of such date (such date and each annual
                  anniversary thereof shall be hereinafter referred to as the
                  "Renewal Date"), the Change of Control Period shall be
                  automatically extended so as to terminate two years from such
                  Renewal Date, unless at least 60 days prior to the Renewal
                  Date the Company shall give notice to the Executive that the
                  Change of Control Period shall not be so extended.

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2.       CHANGE OF CONTROL. For the purpose of this Agreement, a "Change of
         Control" shall mean:

         (a)      The acquisition by any individual, entity or group (within the
                  meaning of Section 13(d)(3) or 14(d)(2) of the Securities
                  Exchange Act of 1934, as amended (the "Exchange Act")) (a
                  "Person") of beneficial ownership (within the meaning of Rule
                  13d-3 promulgated under the Exchange Act) of 50% or more of
                  either (i) the then outstanding shares of common stock of the
                  Company (the "Outstanding Company Common Stock") or (ii) the
                  combined voting power of the then outstanding voting
                  securities of the Company entitled to vote generally in the
                  election of directors (the "Outstanding Company Voting
                  Securities"); provided, however, that the following
                  acquisitions shall not constitute a Change of Control: (i) any
                  acquisition directly from the Company (excluding an
                  acquisition by virtue of the exercise of a conversion
                  privilege), (ii) any acquisition by the company, (iii) any
                  acquisition by any employee benefit plan (or related trust)
                  sponsored or maintained by the Company or any corporation
                  controlled by the Company or (iv) any acquisition by any
                  corporation pursuant to a reorganization, merger or
                  consolidation, if, following such reorganization, merger or
                  consolidation, the conditions described in clauses (i) and
                  (ii) of subsection (c) of this Section 2 are satisfied; or

         (b)      Individuals who, as of the date hereof, constitute the Board
                  (the "Incumbent Board") cease for any reason to constitute at
                  least a majority of the Board; provided, however, that any
                  individual becoming a director subsequent to the date hereof
                  whose election, or nomination for election by the Company's
                  shareholders, was approved by a vote of at least a majority of
                  the directors then comprising the Incumbent Board shall be
                  considered as though such individual were a member of the
                  Incumbent Board, but excluding, for this purpose, any such
                  individual whose initial assumption of office occurs as a
                  result of either an actual or threatened election contest (as
                  such terms are used in Rule 14a-11 of Regulation 14A
                  promulgated under the Exchange Act) or other actual or
                  threatened solicitation of proxies or consents by or on behalf
                  of a Person other than the Board; or

         (c)      Approval by the shareholders of the Company of a
                  reorganization, merger or consolidation, in each case, unless,
                  following such reorganization, merger or consolidation, (i)
                  more than 60% of, respectively, the then outstanding shares of
                  common stock of the corporation resulting from such
                  reorganization, merger or consolidation and the combined
                  voting power of the then outstanding voting securities of such
                  corporation entitled to vote generally in the election of
                  directors is then beneficially owned, directly or indirectly,
                  by all or substantially all of the individuals and entities
                  who were the beneficial owners, respectively, of the
                  Outstanding Company Common Stock and Outstanding Company
                  Voting Securities immediately prior to such reorganization,
                  merger or consolidation in substantially the same proportions
                  as their ownership, immediately prior to such reorganization,
                  merger or consolidation, of the outstanding Company Common
                  Stock and Outstanding Company Voting Securities, as the case
                  may be and (ii) at least a majority of the members of the
                  board of directors of the corporation resulting from such
                  reorganization, merger or consolidation were members of the
                  Incumbent Board at the time of the execution of the initial
                  agreement providing for such reorganization, merger or
                  consolidation; or

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         (d)      Approval by the shareholders of the Company of (i) a complete
                  liquidation or dissolution of the Company or (ii) the sale or
                  other disposition of all or substantially all of the assets of
                  the Company, other than to a corporation, with respect to
                  which following such sale or other disposition, (A) more than
                  60% of, respectively, the then outstanding shares of common
                  stock of such corporation and the combined voting power of the
                  then outstanding voting securities of such corporation
                  entitled to vote generally in the election of directors is
                  then beneficially owned, directly or indirectly, by all or
                  substantially all of the individuals and entities who were the
                  beneficial owners, respectively, of the Outstanding Company
                  Common Stock and outstanding Company Voting Securities
                  immediately prior to such sale or other disposition in
                  substantially the same proportion as their ownership,
                  immediately prior to such sale or other disposition, of the
                  outstanding Company Common Stock and Outstanding Company
                  Voting Securities, as the case may be and (B) at least a
                  majority of the members of the board of directors of such
                  corporation were members of the Incumbent Board at the time of
                  the execution of the initial agreement or action of the Board
                  providing for such sale or other disposition of assets of the
                  Company.

3.       EMPLOYMENT PERIOD. The Company hereby agrees to continue the Executive
         in its employ, and the Executive hereby agrees to remain in the employ
         of the Company, in accordance with the terms and provisions of this
         Agreement, for the period commencing on the Effective Date and ending
         on the second anniversary of such date (the "Employment Period").

4.       TERMS OF EMPLOYMENT.

         (a)      POSITION AND DUTIES.

                  (i)      During the Employment Period, (A) the Executive's
                           position (including status, offices, titles and
                           reporting requirements), authority, duties and
                           responsibilities shall be at least commensurate in
                           all material aspects with the most significant of
                           those held, exercised and assigned at any time during
                           the 90-day period immediately preceding the Effective
                           Date and (B) the Executive's services shall be
                           performed at the location where the Executive was
                           employed immediately preceding the Effective Date or
                           any office which is the headquarters of the Company
                           and is less than 35 miles from such location.

                  (ii)     During the Employment Period, and excluding any
                           periods of vacation and sick leave to which the
                           Executive is entitled, the Executive agrees to devote
                           reasonable attention and time during normal business
                           hours to the business and affairs of the Company and,
                           to the extent necessary to discharge the
                           responsibilities assigned to the Executive hereunder,
                           to use the Executive's reasonable best efforts to
                           perform faithfully and efficiently such
                           responsibilities. During the Employment Period it
                           shall not be a violation of this Agreement for the
                           Executive to (A) serve on corporate, civic or
                           charitable boards or committees,

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                           (B) deliver lectures, fulfill speaking engagements or
                           teach at educational institutions and (C) manage
                           personal investments, so long as such activities are
                           similar to such activities of the Executive prior to
                           the Effective Date and do not significantly interfere
                           with the performance of the Executive's
                           responsibilities as an employee of the Company in
                           accordance with this Agreement. It is expressly
                           understood and agreed that to the extent that any
                           such activities have been, conducted by the Executive
                           prior to the Effective Date, the continued conduct of
                           such activities (or the conduct of activities similar
                           in nature and scope thereto) subsequent to the
                           Effective Date shall not thereafter be deemed to
                           interfere with the performance of the Executive's
                           responsibilities to the Company.

         (b)      COMPENSATION.

                  (i)      BASE SALARY. During the Employment Period, the
                           Executive shall receive an annual base salary
                           ("Annual Base Salary"), which shall be paid in equal
                           installments in accordance with the Company's
                           customary pay periods, at least equal to twelve times
                           the highest monthly base salary paid or payable to
                           the Executive by the Company and its affiliated
                           companies in respect of the twelve-month period
                           immediately preceding the month in which the
                           Effective Date occurs. For purposes of determining
                           Annual Base Salary for this Agreement, there will be
                           included in, or added to, the base salary all
                           quarterly or other periodic bonuses (other than
                           annual bonus) to which the Executive would have been
                           entitled for the year in which the Effective Date
                           occurs as if all criteria for such bonuses had been
                           satisfied at 100% of plan, with such bonuses to be
                           paid in accordance with the Company's customary pay
                           periods for such bonuses. During the Employment
                           Period, the Annual Base Salary shall be reviewed at
                           least annually and shall be increased at any time and
                           from time to time as shall be substantially
                           consistent with increases in base salary generally
                           awarded in the ordinary course of business to other
                           peer executives of the Company and its affiliated
                           companies. Any increase in Annual Base Salary shall
                           not serve to limit or reduce any other obligation to
                           the Executive under this Agreement. Annual Base
                           Salary shall not be reduced after any such increase
                           and the term Annual Base Salary as utilized in this
                           Agreement shall refer to Annual Base Salary as so
                           increased. As used in this Agreement, the term
                           "affiliated companies" shall include any company
                           controlled by, controlling or under common control
                           with the Company.

                  (ii)     ANNUAL BONUS. In addition to Annual Base Salary, the
                           Executive shall be awarded, for each fiscal year
                           ending during the Employment Period, an annual bonus
                           (the "Annual Bonus") in cash at least equal to the
                           greater of (A) the average annualized (for any fiscal
                           year consisting of less than twelve full months or
                           with respect to which the Executive has been employed
                           by the Company for less than twelve full months)
                           bonus paid or payable, including by reason of any
                           deferral, to the Executive by the Company and its
                           affiliated companies in respect of the three fiscal
                           years immediately preceding the fiscal

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                           year in which the Effective Date occurs (the "Recent
                           Average Bonus"), or (B) the annual bonus paid or
                           payable, including by reason of any deferral, to the
                           Executive (and annualized for any fiscal year
                           consisting of less than twelve full months or for
                           which the Executive has been employed for less than
                           twelve full months) for the most recently completed
                           fiscal year as if all criteria for such bonus at 100%
                           of plan had been satisfied (such greater amount shall
                           be hereinafter referred to as the "Highest Annual
                           Bonus"). Each such Annual Bonus shall be paid no
                           later than the end of the third month of the fiscal
                           year next following the fiscal year for which the
                           Annual Bonus is awarded, unless the Executive shall
                           elect to defer the receipt of such Annual Bonus.

                  (iii)    SPECIAL BONUS. In addition to the Annual Base Salary
                           and Annual Bonus payable as hereinabove provided, if
                           the Executive remains employed with the Company or
                           its affiliated companies through the first
                           anniversary of the Effective Date, the Company shall
                           pay to the Executive a special bonus (the "Special
                           Bonus") in recognition of the Executive's services
                           during the crucial one-year transition period
                           following the Change of Control in cash equal to the
                           sum of (A) the Executive's Annual Base Salary and (B)
                           the Highest Annual Bonus. The Special Bonus shall be
                           paid no later than 30 days following the first
                           anniversary of the Effective Date.

                  (iv)     INCENTIVE, SAVINGS AND RETIREMENT PLANS. During the
                           Employment Period, the Executive shall be entitled to
                           participate in all incentive, savings and retirement
                           plans, practices policies and programs applicable
                           generally to other peer executives of the Company and
                           its affiliated companies, but in no event shall such
                           plans, practices, policies and programs provide the
                           Executive with incentive opportunities (measured with
                           respect to both regular and special incentive
                           opportunities, to the extent, if any, that such
                           distinction is applicable), savings opportunities and
                           retirement benefit opportunities, in each case, less
                           favorable, in the aggregate, than the most favorable
                           of those provided by the Company and its affiliated
                           companies for the Executive under such plans,
                           practices, policies and programs as in effect at any
                           time during the 90-day period immediately preceding
                           the Effective Date or if more favorable to the
                           Executive, those provided generally at any time after
                           the Effective Date to other peer executives of the
                           Company and, its affiliated companies.

                  (v)      WELFARE BENEFIT PLANS. During the Employment Period,
                           the Executive and/or the Executive's family, as the
                           case may be, shall be eligible for participation in
                           and shall receive all benefits under welfare benefit
                           plans, practices, policies and programs provided by
                           the Company and its affiliated companies (including,
                           without limitation, medical, prescription, dental,
                           disability, salary continuance, employee life, group
                           life, accidental death and travel accident insurance
                           plans and programs) to the extent applicable
                           generally to other peer executives of the Company and
                           its affiliated companies, but in no event shall such
                           plans,

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                           practices, policies and programs provide the
                           Executive with benefits which are less favorable, in
                           the aggregate, than the most favorable of such plans,
                           practices, policies and programs in effect for the
                           Executive at any time during the 90-day period
                           immediately preceding the Effective Date or, if more
                           favorable to the Executive, those provided generally
                           at any time after the Effective Date to other peer
                           executives of the Company and its affiliated
                           companies.

                  (vi)     EXPENSES. During the Employment Period, the Executive
                           shall be entitled to receive prompt reimbursement for
                           all reasonable employment expenses incurred by the
                           Executive in accordance with the most favorable
                           policies, practices and procedures of the Company and
                           its affiliated companies in effect for the Executive
                           at any time during the 90-day period immediately
                           preceding the Effective Date or, if more favorable to
                           the Executive, as in effect generally at any time
                           thereafter with respect to other peer executives of
                           the Company and its affiliated companies.

                  (vii)    FRINGE BENEFITS. During the Employment Period, the
                           Executive shall be entitled to fringe benefits in
                           accordance with the most favorable plans, practices,
                           programs and policies of the Company and its
                           affiliated companies in effect for the Executive at
                           any time during the 90-day period immediately
                           preceding the Effective Date or, if more favorable to
                           the Executive, as in effect generally at any time
                           thereafter with respect to other peer executives of
                           the Company and its affiliated companies.

                  (viii)   OFFICE AND SUPPORT STAFF. During the Employment
                           Period, the Executive shall be entitled to an office
                           or offices of a size and with furnishings and other
                           appointments, and to personal secretarial and other
                           assistance, at least equal to the most favorable of
                           the foregoing provided to the Executive by the
                           Company and its affiliated companies at any time
                           during the 90-day period immediately preceding the
                           Effective Date or, if more favorable to the
                           Executive, as provided generally at any time
                           thereafter with respect to other peer executives of
                           the Company and its affiliated companies.

                  (ix)     VACATION. During the Employment Period, the Executive
                           shall be entitled to paid vacation in accordance with
                           the most favorable plans, policies, programs and
                           practices of the Company and its affiliated companies
                           as in effect for the Executive at any time during the
                           90-day period immediately preceding the Effective
                           Date or, if more favorable to the Executive, as in
                           effect generally at any time thereafter with respect
                           to other peer executives of the Company and its
                           affiliated companies.

5.       TERMINATION OF EMPLOYMENT.

         (a)      DEATH OR DISABILITY. The Executive's employment shall
                  terminate automatically upon the Executive's death during the
                  Employment Period. If the Company determines in good faith
                  that the Disability of the Executive has occurred during the
                  Employment Period (pursuant to the definition of Disability
                  set forth below), it may give to the

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                  Executive written notice in accordance with Section 11(b) of
                  its intention to terminate the Executive's employment. In such
                  event, the Executive's employment with the Company shall
                  terminate effective on the 30th day after receipt of such
                  notice by the Executive (the "Disability Effective Date"),
                  provided that, within the 30 days after such receipt, the
                  Executive shall not have returned to full-time performance of
                  the Executive's duties. For purposes of this Agreement,
                  "Disability" shall mean the absence of the Executive from the
                  Executive's duties with the Company on a full-time basis for
                  180 consecutive business days as a result of incapacity due to
                  mental or physical illness which is determined to be total and
                  permanent by a physician selected by the Company or its
                  insurers and acceptable to the Executive or the Executive's
                  legal representative (such agreement as to acceptability not
                  to be withheld unreasonably).

         (b)      CAUSE. The Company may terminate the Executive's employment
                  during the Employment Period for Cause. For purposes of this
                  Agreement, "Cause" shall mean (i) a material breach by the
                  Executive of the Executive's obligations under Section 4(a)
                  (other than as a result of incapacity due to physical or
                  mental illness) which is demonstrably willful and deliberate
                  on the Executive's part, which is committed in bad faith or
                  without reasonable belief that such breach is in the best
                  interests of the Company and which is not remedied in a
                  reasonable period of time after receipt of written notice from
                  the Company specifying such breach or (ii) the conviction of
                  the Executive of a felony involving moral turpitude.

         (c)      GOOD REASON; WINDOW PERIOD. The Executive's employment may be
                  terminated (i) during the Employment Period by the Executive
                  for Good Reason or (ii) during the Window Period by the
                  Executive without any reason. For purposes of this Agreement,
                  the "Window Period" shall mean the 60-day period immediately
                  following the four-month anniversary of the Effective Date
                  (with the fourth-month anniversary to be determined as the
                  same calendar day as the Effective Date four months later; for
                  example, if the Effective Date were January 6, 1997, the
                  Window Period would begin on May 6, 1997). For purposes of
                  this Agreement, "Good Reason" shall mean:

                  (i)      the assignment to the Executive of any duties
                           inconsistent in any respect with the Executive's
                           position (including status, offices, titles and
                           reporting requirements), authority, duties or
                           responsibilities as contemplated by Section 4(a) or
                           any other action by the Company which results in a
                           diminution in such position, authority, duties or
                           responsibilities, excluding for this purpose an
                           isolated, insubstantial and inadvertent action not
                           taken in bad faith and which is remedied by the
                           Company promptly after receipt of notice thereof
                           given by the Executive;

                  (ii)     any failure by the Company to comply with any of the
                           provisions of Section 4(b), other than an isolated,
                           insubstantial and inadvertent failure not occurring
                           in bad faith and which is remedied by the Company
                           promptly after receipt of notice thereof given by the
                           Executive;

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                  (iii)    the Company's requiring the Executive to be based at
                           any office or location other than that described in
                           Section 4(a)(i)(B);

                  (iv)     any purported termination by the Company of the
                           Executive's employment otherwise than as expressly
                           permitted by this Agreement; or

                  (v)      any failure by the Company to comply with and satisfy
                           Section 10(c), provided that such successor has
                           received at least ten days prior written notice from
                           the company or the Executive of the requirements of
                           Section 10(c).

         For purposes of this Section 5(c), any good faith determination of
         "Good Reason" made by the Executive shall be conclusive.

         (d)      NOTICE OF TERMINATION. Any termination by the Company for
                  Cause, or by the Executive without any reason during the
                  Window Period or for Good Reason, shall be communicated by
                  Notice of Termination to the other party hereto given in
                  accordance with section 11(b). For purposes of this Agreement,
                  a "Notice of Termination" means a written notice which (i)
                  indicates the specific termination provision in this Agreement
                  relied upon, (ii) to the extent applicable, sets forth in
                  reasonable detail the facts and circumstances claimed to
                  provide a basis for termination of the Executive's employment
                  under the provision so indicated and (iii) if the Date of
                  Termination (as defined below) is other than the date of
                  receipt of such notice, specifies the termination date (which
                  date shall be not more than 15 days after the giving of such
                  notice). The failure by the Executive or the Company to set
                  forth in the Notice of Termination any fact or circumstance
                  which contributes to a showing of Good Reason or cause shall
                  not waive any right of the Executive or the Company hereunder
                  or preclude the Executive or the Company from asserting such
                  fact or circumstance in enforcing the Executive's or the
                  Company's rights hereunder.

         (e)      DATE OF TERMINATION. "Date of Termination" means (i) if the
                  Executive's employment is terminated by the Company for Cause,
                  or by the Executive during the Window Period or for Good
                  Reason, the date of receipt of the Notice of Termination or
                  any later date specified therein, as the case may be, (ii) if
                  the Executive's employment is terminated by the Company other
                  than for Cause or Disability, the Date of Termination shall be
                  the date on which the Company notifies the Executive of such
                  termination and (iii) if the Executive's employment is
                  terminated by reason of death or Disability, the Date of
                  Termination shall be the date of death of the Executive or the
                  Disability Effective Date, as the case may be.

6.       OBLIGATIONS OF THE COMPANY UPON TERMINATION.

         (a)      GOOD REASON OR DURING THE WINDOW PERIOD; OTHER THAN FOR CAUSE,
                  DEATH OR DISABILITY. If, during the Employment Period, the
                  Company shall terminate the Executive's employment other than
                  for Cause or Disability (and other than a termination due to
                  death) or the Executive shall terminate employment either for
                  Good Reason or without any reason during the Window Period:

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                  (i)      the Company shall pay to the Executive in a lump sum
                           in cash within 30 days after the Date of Termination
                           the aggregate of the following amounts:

                           A.       the sum of (1) the Executive's Annual Base
                                    Salary through the Date of Termination to
                                    the extent not theretofore paid, (2) the
                                    product of (x) the Highest Annual Bonus and
                                    (y) a fraction, the numerator of which is
                                    the number of days in the current fiscal
                                    year through the Date of Termination, and
                                    the denominator of which is 365 and (3) the
                                    Special Bonus, if due to the Executive
                                    pursuant to Section 4(b)(iii), to the extent
                                    not theretofore paid and (4) any
                                    compensation previously deferred by the
                                    Executive (together with any accrued
                                    interest or earnings thereon) and any
                                    accrued vacation pay, in each case to the
                                    extent not theretofore paid (the sum of the
                                    amounts described in clauses (1), (2), (3)
                                    and (4) shall be hereinafter referred to at
                                    the "Accrued Obligations"); and

                           B.       the amount (such amount shall be hereinafter
                                    referred to as the "Severance Amount") equal
                                    to the product of (1) one and one-half (1.5)
                                    and (2) the sum of (x) the Executive's
                                    Annual Base Salary and (y) the Highest
                                    Annual Bonus; and

                  (ii)     for the remainder of the Employment Period, or such
                           longer period as any plan, program, practice or
                           policy may provide, the Company shall continue
                           benefits to the Executive and/or the Executive's
                           family at least equal to those which would have been
                           provided to them in accordance with the plans,
                           programs, practices and policies described in Section
                           4(b)(v) if the Executive's employment had not been
                           terminated in accordance with the most favorable
                           plans, practices, programs or policies of the Company
                           and its affiliated companies as in effect and
                           applicable generally to other peer executives and
                           their families during the 90-day period immediately
                           preceding the Effective Date or, if more favorable to
                           the Executive, as in effect generally at any time
                           thereafter with respect to other peer executives of
                           the Company and its affiliated companies and their
                           families, provided, however, that if the Executive
                           becomes reemployed with another employer and is
                           eligible to receive medical or other welfare benefits
                           under another employer provided plan, the medical and
                           other welfare benefits described herein shall be
                           secondary to those provided under such other plan
                           during such applicable period of eligibility (such
                           continuation of such benefits for the applicable
                           period herein set forth shall be hereinafter referred
                           to as "Welfare Benefit Continuation"). For purposes
                           of determining eligibility of the Executive for
                           retirement benefits pursuant to such plans,
                           practices, programs and policies, the Executive shall
                           be considered to have remained employed until the end
                           of the Employment Period and to have retired on the
                           last day of such period; and,

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                  (iii)    to the extent not theretofore paid or provided, the
                           Company shall timely pay or provide to the Executive
                           and/or the Executive's family any other amounts or
                           benefits required to be paid or provided or which the
                           Executive and/or the Executive's family is eligible
                           to receive pursuant to this Agreement and under any
                           plan, program, policy or practice or contract or
                           agreement of the Company and its affiliated companies
                           as in effect and applicable generally to other peer
                           executives and their families during the 90-day
                           period immediately preceding the Effective Date or,
                           if more favorable to the Executive, as in effect
                           generally thereafter with respect to other peer
                           executives of the Company and its affiliated
                           companies and their families (such other amounts and
                           benefits shall be hereinafter referred to as the
                           "Other Benefits").

         (b)      DEATH. If the Executive's employment is terminated by reason
                  of the Executive's death during the Employment Period, this
                  Agreement shall terminate without further obligations to the
                  Executive's legal representatives under this Agreement, other
                  than for (i) payment of Accrued Obligations (which shall be
                  paid to the Executive's estate or beneficiary, as applicable,
                  in a lump sum in cash within 30 days of the Date of
                  Termination) and the timely payment or provision of the
                  Welfare Benefit Continuation and other Benefits (excluding, in
                  each case, Death Benefits (as defined below)) and (ii) payment
                  to the Executive's estate or beneficiary, as applicable, in a
                  lump sum in cash within 30 days of the Date of Termination of
                  an amount equal to the greater of (A) the Severance Amount or
                  (B) the present value determined as provided in Section
                  280G(d)(4) of the Code of any cash amount to be received by
                  the Executive or the Executive's family as a death benefit
                  pursuant to the terms of any plan, policy or arrangement of
                  the Company and its affiliated companies, but not including
                  any proceeds of life insurance covering the Executive to the
                  extent paid for directly or on a contributory basis by the
                  Executive (which shall be paid in any event as an Other
                  Benefit) (the benefits included in this clause (B) shall be
                  hereinafter referred to as the "Death Benefits").

         (c)      DISABILITY. If the Executive's employment is terminated by
                  reason of the Executive's Disability during the Employment
                  Period, this Agreement shall terminate without further
                  obligations to the Executive, other than for (i) payment of
                  Accrued Obligations (which shall be paid to the Executive in a
                  lump sum in cash within 30 days of the Date of Termination)
                  and the timely payment or provision of the Welfare Benefit
                  Continuation and Other Benefits (excluding, in each case,
                  Disability Benefits (as defined below)) and (ii) payment to
                  the Executive in a lump sum in cash within 30 days of the Date
                  of Termination of an amount equal to the greater of (A) the
                  Severance Amount or (B) the present value (determined as
                  provided in Section 28OG(d)(4) of the Code) of any cash amount
                  to be received by the Executive as a disability benefit
                  pursuant to the terms of any plan, policy or arrangement of
                  the Company and its affiliated companies, but not including
                  any proceeds of disability insurance covering the Executive to
                  the extent paid for directly or on a contributory basis by the
                  Executive (which shall be paid in any event as an Other
                  Benefit) (the benefits included in this clause (B) shall be
                  hereinafter referred to as the "Disability Benefits").

                                      -10-
<PAGE>

         (d)      CAUSE; OTHER THAN FOR GOOD REASON. If the Executive's
                  employment shall be terminated for Cause during the Employment
                  Period, this Agreement shall terminate without further
                  obligations to the Executive other than the obligation to pay
                  to the Executive Annual Base Salary through the Date of
                  Termination plus the amount of any compensation previously
                  deferred by the Executive, in each case to the extent
                  theretofore unpaid. If the Executive terminates employment
                  during the Employment Period, excluding a termination either
                  for Good Reason or without any reason during the Window
                  Period, this Agreement shall terminate without further
                  obligations to the Executive, other than for Accrued
                  Obligations and the timely payment or provision of Other
                  Benefits. In such case, all Accrued Obligations shall be paid
                  to the Executive in a lump sum in cash within 30 days of the
                  Date of Termination.

7.       NON-EXCLUSIVITY OF RIGHTS. Except as provided in sections 6(a)(ii),
         6(b) and 6(c), nothing in this Agreement shall prevent or limit the
         Executive's continuing or future participation in any plan, program,
         policy or practice provided by the Company or any of its affiliated
         companies and for which the Executive may qualify, nor shall anything
         herein limit or otherwise affect such rights as the Executive may have
         under any contract or agreement with the Company or any of its
         affiliated companies. Amounts which are vested benefits or which the
         Executive is otherwise entitled to receive under any plan, policy,
         practice or program of or any contract or agreement with the Company or
         any of its affiliated companies at or subsequent to the Date of
         Termination shall be payable in accordance with such plan, policy,
         practice or program or contract or agreement except as explicitly
         modified by this Agreement.

8.       FULL SETTLEMENT; RESOLUTION OF DISPUTES.

         (a)      The Company's obligation to make the payments provided for in
                  this Agreement and otherwise to perform its obligations
                  hereunder shall not be affected by any set-off, counterclaim,
                  recoupment, defense or other claim, right or action which the
                  Company may have against the Executive or others. In no event
                  shall the Executive be obligated to seek other employment or
                  take any other action by way of mitigation of the amounts
                  payable to the Executive under any of the provisions of this
                  Agreement and, except as provided in Section 6(a)(ii), such
                  amounts shall not be reduced whether or not the Executive
                  obtains other employment. The Company agrees to pay promptly
                  as incurred, to the full extent permitted by law, all legal
                  fees and expenses which the Executive may reasonably incur as
                  a result of any contest (regardless of the outcome thereof) by
                  the Company, the Executive or others of the validity or
                  enforceability of, or liability under, any provision of this
                  Agreement or any guarantee of performance thereof (including
                  as a result of any contest by the Executive about the amount
                  of any payment pursuant to this Agreement), plus in each case
                  interest on any delayed payment at the applicable Federal rate
                  provided for in Section 7872(f)(2)(A) of the Code.

         (b)      If there shall be any dispute between the Company and the
                  Executive (i) in the event of any termination of the
                  Executive's employment by the Company, whether such
                  termination was for Cause, or (ii) in the event of any
                  termination of employment by the Executive, whether Good
                  Reason existed, then, unless and until there is a final,

                                      -11-
<PAGE>

                  nonappealable judgment by a court of competent jurisdiction
                  declaring that such termination was for Cause or that the
                  determination by the Executive of the existence of Good Reason
                  was not made in good faith, the Company shall pay all amounts,
                  and provide all benefits, to the Executive and/or the
                  Executive's family or other beneficiaries, as the case may be,
                  that the Company would be required to pay or provide pursuant
                  to Section 6(a) as though such termination were by the Company
                  without Cause or by the Executive with Good Reason; provided,
                  however, that the Company shall not be required to pay any
                  disputed amounts pursuant to this paragraph except upon
                  receipt of an undertaking by or on behalf of the Executive to
                  repay all such amounts to which the Executive is ultimately
                  adjudged by such court not to be entitled.

9.       CERTAIN ADDITIONAL PAYMENTS BY THE COMPANY.

         (a)      Anything in this Agreement to the contrary notwithstanding, in
                  the event it shall be determined that any payment or
                  distribution by the Company to or for the benefit of the
                  Executive (whether paid or payable or distributed or
                  distributable pursuant to the terms of this Agreement or
                  otherwise, but determined without regard to any additional
                  payments required under this Section 9) (a "Payment") would be
                  subject to the excise tax imposed by Section 4999 of the Code
                  or any interest or penalties are incurred by the Executive
                  with respect to such excise tax (such excise tax, together
                  with any such interest and penalties, are hereinafter
                  collectively referred to as the "Excise Tax"), then the
                  Executive shall be entitled to receive an additional payment
                  (a "Gross-Up Payment") in an amount such that after payment by
                  the Executive of all taxes (including any interest or
                  penalties imposed with respect to such taxes), including,
                  without limitation, any income taxes (and any interest and
                  penalties imposed with respect thereto) and Excise Tax imposed
                  upon the Gross-Up Payment, the Executive retains an amount of
                  the Gross-Up Payment equal to the Excise Tax imposed upon the
                  Payments.

         (b)      Subject to the provisions of Section 9(c), all determinations
                  required to be made under this Section 9, including whether
                  and when a Gross-Up Payment is required and the amount of such
                  Gross-Up Payment and the assumptions to be utilized in
                  arriving at such determination, shall be made by an
                  independent national accounting firm selected by the Company
                  (the "Accounting Firm") which shall provide detailed
                  supporting calculations both to the Company and the Executive
                  within 15 business days of the receipt of notice from the
                  Executive that there has been a Payment, or such earlier time
                  as is requested by the Company. In the event that the
                  Accounting Firm is serving as accountant or auditor for the
                  individual, entity or group affecting the Change of Control,
                  the Executive shall appoint another nationally recognized
                  accounting firm to make the determinations required hereunder
                  (which accounting firm shall then be referred to as the
                  Accounting Firm hereunder). All fees and expenses of the
                  Accounting Firm shall be borne solely by the Company. Any
                  Gross-Up Payment, as determined pursuant to this Section 9,
                  shall be paid by the Company to the Executive within five days
                  of the receipt of the Accounting Firm's determination. If the
                  Accounting Firm determines that no Excise Tax is payable by
                  the Executive, it shall

                                      -12-
<PAGE>

                  furnish the Executive with a written opinion that failure to
                  report the Excise Tax on the Executive's applicable federal
                  income tax return would not result in the imposition of a
                  negligence or similar penalty. Any determination by the
                  Accounting Firm shall be binding upon the Company and the
                  Executive. As a result of the uncertainty in the application
                  of Section 4999 of the Code at the time of the initial
                  determination by the Accounting Firm hereunder, it is possible
                  that Gross-Up Payments which will not have been made by the
                  Company should have been made ("Underpayment"), consistent
                  with the calculations required to be made hereunder. In the
                  event that the Company exhausts its remedies pursuant to
                  Section 9(c) and the Executive thereafter is required to make
                  a payment of any Excise Tax, the Accounting Firm shall
                  determine the amount of the Underpayment that has occurred and
                  any such Underpayment shall be promptly paid by the Company to
                  or for the benefit of the Executive.

         (c)      The Executive shall notify the Company in writing of any claim
                  by the Internal Revenue Service that, if successful, would
                  require the payment by the Company of the Gross-Up Payment.
                  Such notification shall be given as soon as practicable but no
                  later than ten business days after the Executive is informed
                  in writing of such claim and shall apprise the Company of the
                  nature of such claim and the date on which such claim is
                  requested to be paid. The Executive shall not pay such claim
                  prior to the expiration of the 30-day period following the
                  date on which it gives such notice to the Company (or such
                  shorter period ending on the date that any payment of taxes
                  with respect to such claim is due). If the Company notifies
                  the Executive in writing prior to the expiration of such
                  period that it desires to contest such claims the Executive
                  shall:

                  (i)      give the Company any information reasonably requested
                           by the Company relating to such claim,

                  (ii)     take such action in connection with contesting such
                           claim as the Company shall reasonably request in
                           writing from time to time, including, without
                           limitation, accepting legal representation with
                           respect to such claim by an attorney reasonably
                           selected by the Company,

                  (iii)    cooperate with the Company in good faith in order to
                           effectively contest such claim, and

                  (iv)     permit the Company to participate in any proceedings
                           relating to such claim;

                  provided, however, that the Company shall bear and pay
                  directly all costs and expenses (including additional interest
                  and penalties) incurred in connection with such contest and
                  shall indemnify and hold the Executive harmless, on an
                  after-tax basis, for any Excise Tax or income tax (including
                  interest and penalties with respect thereto) imposed as a
                  result of such representation and payment of costs and
                  expenses. Without limitation on the foregoing provisions of
                  this Section 9(c), the Company shall control all proceedings
                  taken in connection with such contest and, at its sole option,
                  may pursue or forgo any and all administrative appeals,
                  proceedings, hearings and conferences with the taxing
                  authority in respect of such claim and may, at its sole

                                      -13-
<PAGE>

                  option, either direct the Executive to pay the tax claimed and
                  sue for a refund or contest the claim in any permissible
                  manner, and the Executive agrees to prosecute such contest to
                  a determination before any administrative tribunal, in a court
                  of initial jurisdiction and in one or more appellate courts,
                  as the Company shall determine; provided, however, that if the
                  Company directs the Executive to pay such claim and sue for a
                  refund, the Company shall advance the amount of such payment
                  to the Executive, on an interest-free basis and shall
                  indemnify and hold the Executive harmless, on an after-tax
                  basis, from any Excise Tax or income tax (including interest
                  or penalties with respect thereto) imposed with respect to
                  such advance or with respect to any imputed income with
                  respect to such advance; and further provided that any
                  extension of the statute of limitations relating to payment of
                  taxes for the taxable year of the Executive with respect to
                  which such contested amount is claimed to be due is limited
                  solely to such contested amount. Furthermore, the Company's
                  control of the contest shall be limited to issues with respect
                  to which a Gross-Up Payment would be payable hereunder and the
                  Executive shall be entitled to settle or contest, as the case
                  may be, any other issue raised by the Internal Revenue Service
                  or any other taxing authority.

         (d)      If, after the receipt by the Executive of an amount advanced
                  by the Company pursuant to Section 9(c), the Executive becomes
                  entitled to receive any refund with respect to such claim, the
                  Executive shall (subject to the Company, complying with the
                  requirements of Section 9(c)) promptly pay to the Company the
                  amount of such refund (together with any interest paid or
                  credited thereon after taxes applicable thereto). If, after
                  the receipt by the Executive of an amount advanced by the
                  Company pursuant to Section 9(c), a determination is made that
                  the Executive shall not be entitled to any refund with respect
                  to such claim and the Company does not notify the Executive in
                  writing of its intent to contest such denial of refund prior
                  to the expiration of 30 days after such determination, then
                  such advance shall be forgiven and shall not be required to be
                  repaid and the amount of such advance shall offset, to the
                  extent thereof, the amount of Gross-Up Payment required to be
                  paid.

10.      SUCCESSORS.

         (a)      This Agreement is personal to the Executive and without the
                  prior written consent of the Company shall not be assignable
                  by the Executive otherwise than by will or the laws of descent
                  and distribution. The economic benefit provisions of this
                  Agreement shall inure to the benefit of and be enforceable by
                  the Executive's legal representatives.

         (b)      This Agreement shall inure to the benefit of and be binding
                  upon the Company and its successors and assigns.

         (c)      The Company will require any successor (whether direct or
                  indirect, by purchase, merger, consolidation or otherwise) to
                  all or substantially all of the business and/or assets of the
                  Company to assume expressly and agree to perform this
                  Agreement in the same manner and to the same extent that the
                  Company would be required to perform it if no such succession
                  had taken place. As used in this Agreement, "Company" shall

                                      -14-
<PAGE>

                  mean the Company as hereinbefore defined and any successor to
                  its business and/or assets as aforesaid which assumes and
                  agrees to perform this Agreement by operation of law, or
                  otherwise.

11.      MISCELLANEOUS; NOTICES.

         (a)      This Agreement shall be governed by and construed in
                  accordance with the laws of the State of Texas without
                  reference to principles of conflict of laws. The captions of
                  this Agreement are not part of the provisions hereof and shall
                  have no force or effect. This Agreement may not be amended or
                  modified otherwise than by a written agreement executed by the
                  parties hereto or their respective successors and legal
                  representatives.

         (b)      All notices and other communications hereunder shall be in
                  writing and shall be given by hand delivery to the other party
                  or by registered or certified mail, return receipt requested,
                  postage prepaid, addressed as follows:

                  If to the Executive:      James W. Brown
                                            2114 Green Hill
                                            McKinney, Texas 75070

                  If to the Company:        Software Spectrum, Inc.
                                            2140 Merritt Drive
                                            Garland, Texas 75041
                                            Attention: Chief Executive Officer

         or to such other address as either party shall have furnished to the
         other in writing in accordance herewith. Notice and communications
         shall be effective when actually received by the addressee.

         (c)      The invalidity or unenforceability of any provision of this
                  Agreement shall not affect the validity or enforceability of
                  any other provision of this Agreement.

         (d)      The Company may withhold from any amounts payable under this
                  Agreement such Federal, state or local taxes as shall be
                  required to be withheld pursuant to any applicable law or
                  regulation.

         (e)      The Executive's or the Company's failure to insist upon strict
                  compliance with any provision hereof or the failure to assert
                  any right the Executive or the Company may have hereunder,
                  including, without limitation, the right of the Executive to
                  terminate employment for Good Reason pursuant to Section
                  5(c)(i)-(v), shall not be deemed to be a waiver of such
                  provision or right or any other provision or right of this
                  Agreement.

         (f)      The Executive and the Company acknowledge that, except as may
                  otherwise be provided under any other written agreement
                  between the Executive and the Company, the employment of the
                  Executive by the Company is "at will" and, prior to the
                  Effective Date, may be terminated by either the Executive or
                  the Company at any time. Moreover, if prior to the Effective
                  Date, the Executives employment with the Company terminates,
                  then the Executive shall have no further rights under this
                  Agreement.

                                      -15-
<PAGE>

         IN WITNESS WHEREOF, the Executive has hereunto set the Executive's hand
and, pursuant to the authorization from its Board of Directors, the Company has
caused these presents to be executed in its name on its behalf, all as of the
day and year first above written.

                                             EXECUTIVE

                                             /s/ JAMES W. BROWN
                                             -----------------------------------
                                             Name: James W. Brown

                                             SOFTWARE SPECTRUM, INC.

                                             By:    /s/ JUDY O. SIMS
                                                    ----------------------------
                                             Name:  Judy O. Sims
                                             Title: Chief Executive Officer

                                      -16-
<PAGE>

                                   SCHEDULE A

                       TO MANAGEMENT CONTINUITY AGREEMENT
                               BETWEEN THE COMPANY
                               AND JAMES W. BROWN

The Company has entered into Management Continuity Agreements with executive
officers of the Company, which agreements are identical to the that filed as
Exhibit 10.13 with the exception of the difference in the parties and the dates
of execution set forth below:

<Table>
<Caption>

PARTY                                                        DATE OF EXECUTION
-----                                                        -----------------
<S>                                                          <C>
Carrie C. Adams                                              March 1, 2001
Lorraine Castorina                                           April 1, 1999
Keith R. Coogan                                              January 10, 1997
Robert D. Graham                                             January 10, 1997
Gary Hanson                                                  October 23, 2000
Roger J. King                                                January 10, 1997
Robert B. Mercer                                             January 10, 1997
Judy C. Odom (formerly, Judy Odom Sims)                      April 1, 1999
Toni J. Portmann                                             November 1, 2001
John Sprague                                                 October 23, 2000
Lisa M. Stewart                                              January 10, 1997
Melissa Womack                                               December 11, 2000
</Table>

                                      -17-<PAGE>
                                                                EXHIBIT 10.18(e)

          FIFTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT AND
                      MODIFICATION TO OTHER LOAN DOCUMENTS

         THIS FIFTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT AND
MODIFICATION TO OTHER LOAN DOCUMENTS (the "Amendment"), dated as of November 30,
2001, is among SOFTWARE SPECTRUM, INC., a corporation duly organized and validly
existing under the laws of the State of Texas (the "Borrower"), NATIONAL CITY
BANK, KENTUCKY ("National City"), each of the other banks or other lending
institutions which is a signatory hereto (individually, a "Bank" and,
collectively, the "Banks"), JPMORGAN CHASE BANK (as the successor in interest by
merger to The Chase Manhattan Bank), individually as a Bank, as administrative
agent for itself and the other Banks (in its capacity as administrative agent,
together with its successors in such capacity "Administrative Agent") and
JPMORGAN CHASE BANK (as the successor in interest by merger to The Chase
Manhattan Bank, the successor in interest to Chase Bank of Texas, National
Association, formerly known as Texas Commerce Bank National Association) as
collateral agent for itself and the other Banks (in its capacity as collateral
agent, together with its successors in such capacity, the "Collateral Agent").

                                   RECITALS:

         The Borrower, the Administrative Agent, certain of the Banks and Chase
Bank of Texas, National Association (now JPMorgan Chase Bank) as the Collateral
Agent have entered into that certain Amended and Restated Credit Agreement dated
as of March 11, 1998 (as amended or otherwise modified by that certain First
Amendment to Amended and Restated Credit Agreement dated as of August 15, 1998,
that certain Assignment and Acceptance dated December 28, 1998 among Wells Fargo
Bank, N.A., Foothill Capital Corporation and The Chase Manhattan Bank, that
certain Second Amendment to Amended and Restated Credit Agreement dated as of
June 23, 1999, that certain Consent, Waiver and Third Amendment to Amended and
Restated Credit Agreement dated as of July 31, 2000, that certain consent letter
dated September 22, 2000, that certain waiver letter dated December 4, 2000 and
that certain Waiver and Fourth Amendment to Amended and Restated Credit
Agreement dated as of December 12, 2000, collectively the "Agreement").

         National City has determined not to participate as a "Bank" under the
Agreement. The Borrower, the Banks, the Administrative Agent and the Collateral
Agent desire to amend the Agreement to remove National City as a Bank and to
otherwise change the terms thereof and of certain other Loan Documents (as that
term is defined in the Agreement) as herein set forth.

         NOW, THEREFORE, in consideration of the premises herein contained and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows, effective as of the
date hereof (the "Effective Date"):

                                   ARTICLE 1

                                  Definitions

         Section 1.1 Definitions. Capitalized terms used in this Amendment, to
the extent not otherwise defined herein, shall have the same meanings as in the
Agreement, as amended hereby.

FIFTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT AND MODIFICATION TO
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<PAGE>

                                   ARTICLE 2

                                   Amendments

         Section 2.1 Amendment to the Term "Bank"; Termination of the
Commitments of the National City. The term "Bank" as used is the Agreement is
amended to exclude National City. The Borrower agrees that the Revolving
Commitment of National City in effect under the Agreement prior to the Effective
Date is terminated as of the Effective Date. Upon receipt by National City of
all amounts owed to it under the Agreement on the Effective Date, National City
agrees to its removal from the Agreement on the Effective Date as herein
contemplated, agrees that it is no longer a party to the Agreement as of the
Effective Date and agrees that the Agreement may be amended or otherwise
modified without its consent or agreement after the Effective Date. On the
Effective Date, the Banks shall make advances, the proceeds of which shall be
utilized to repay the principal amount of the Revolving Loans owed National
City, such advances to be in amounts sufficient so that after giving effect
thereto, the Revolving Loans shall be held by the Banks pro rata according to
the respective Revolving Commitments. Advances made by a Bank under the
foregoing sentence shall be Revolving Loans and Base Rate Accounts.

         Section 2.2 Amendment to Existing Definitions in Section 1.1. The
definitions of the following terms set forth in Section 1.1 of the Agreement are
amended in their respective entireties to read as follows:

                  "Borrowing Availability" means, at any date of determination,
         the amount by which (x) exceeds the Outstanding Credit Agreement
         Obligations, where (x) equals the lesser of (i) the Revolving
         Commitments or (ii) the sum of the Borrowing Base minus all of the
         Obligations described in clauses (iv) and (v) of the definition of the
         term "Obligation" and any other Obligation relating thereto (i.e., the
         deposit and cash management obligations) to the extent not already
         prefunded in a manner satisfactory to the Administrative Agent.

                  "Daily Collection Event" means the occurrence of a Default or
         the occurrence of any event that would cause the amount of the
         Borrowing Availability to be less than Ten Million Dollars
         ($10,000,000) for any five (5) consecutive Business Days.

                  "Obligation" or "Obligations " means all obligations,
         indebtedness, and liabilities of the Borrower or any Subsidiary to the
         Agents, the Banks, any of their respective Affiliates or any of them
         arising pursuant to:

                           (i) any of the Loan Documents;

                           (ii) any interest rate swap, interest rate caps,
                  interest rate collars, or other similar agreements entered
                  into by either Agent, any Bank or any of their respective
                  Affiliates, with the Borrower or any Subsidiary enabling
                  Borrower or a Subsidiary to fix or limit its interest expense;

                           (iii) any foreign exchange, currency hedging, or
                  other agreement entered into by either Agent, any Bank or any
                  of their respective Affiliates with the Borrower or any
                  Subsidiary enabling Borrower or a Subsidiary to limit the
                  market risk of holding currency in either the cash or futures
                  markets;

FIFTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT AND MODIFICATION TO
OTHER LOAN DOCUMENTS - Page 2

<PAGE>

                           (iv) any deposit accounts maintained by Borrower or
                  any of its Subsidiaries with either Agent, any Bank or any of
                  their respective Affiliates;

                           (v) any cash management services or treasury
                  administration services provided by either Agent, any Bank or
                  any of their respective Affiliates;

                           (vi) any documentation relating to any of the
                  foregoing; and

                           (vii) any services or transactions relating to any of
                  the foregoing,

whether, in each case set forth above, such obligations, indebtedness, and
liabilities now existing or hereafter arising, whether direct, indirect,
related, unrelated, fixed, contingent, liquidated, unliquidated, joint, several,
or joint and several. The term "Obligation" includes without limitation, the
following: all obligations of the Borrower to repay the Revolving Loans; the
Reimbursement Obligations; interest on the Revolving Loans and Reimbursement
Obligations; all fees, costs, and expenses (including attorneys' fees and
expenses) provided for in the documentation evidencing or governing any of the
foregoing obligations, indebtedness or liabilities; any daylight overdraft
exposure; and all obligations to reimburse either Agent, any Bank or any of
their respective Affiliates for any credit extended on uncollected funds or the
amount of any item (including checks and automated clearing house credits)
credited to an account but which is subsequently returned unpaid or returned for
any other reason.

         "Outstanding Revolving Credit" means, at any time of determination,
the sum of (a) the aggregate amount of Revolving Loans then outstanding; plus
(b) the aggregate amount of Letter of Credit Liabilities (or when calculated
with respect to a Bank, including either Agent as a Bank, such Bank's
participation or other interest in such Letter of Credit Liabilities); plus (c)
the aggregate amount of all accrued and unpaid interest and fees and all amounts
due under Sections 13.1 and 13.2; plus (d) all of the Obligations described in
clauses (iv) and (v) of the definition of the term "Obligations" and any other
Obligation relating thereto (i.e., the deposit and cash management obligations)
to the extent not already prefunded in a manner satisfactory to the
Administrative Agent.

         "Revolving Commitment" means, as to each Bank, the obligation of such
Bank to make advances of funds and purchase participation interests in Letters
of Credit in an aggregate principal amount at any one time outstanding up to but
not exceeding the amount set forth opposite the name of such Bank on Schedule
1.1(a) under the heading "Revolving Commitment" or, if applicable, in such
Bank's most recent Assignment and Acceptance, as the same may be reduced or
terminated pursuant to Sections 2.6 or 11.2 or subsection 13.8(c). The aggregate
amount of the Revolving Commitments of all Banks as of November 30, 2001 equals
Seventy-Five Million Dollars ($75,000,000).

         "Revolving Termination Date" means November 30, 2004 or such earlier
date on which the Revolving Commitments terminate as provided in this Agreement
or such earlier date on which the Revolving Commitments terminates as provided
in Section 2.6.

FIFTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT AND MODIFICATION TO
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<PAGE>

         Section 2.3 Amendment to the "Borrowing Base" Definition. The
definition of the term "Borrowing Base" in Section 1.1 of the Agreement is
amended as follows:

                  (a) Clause (c) of the term "Borrowing Base" is amended in its
         entirety to read as follows:

                           (c) the outstanding principal amount of any Short
                  Term Bank Debt; minus

                  (b) the following sentence is added to the end of the
         definition of the term "Borrowing Base":

                  If any Subsidiary becomes a Domestic Granting Subsidiary under
                  the terms of Section 8.10(b), such Domestic Granting
                  Subsidiary's Eligible Accounts shall not be included in the
                  Borrowing Base until the Administrative Agent shall have
                  performed an audit of the accounts receivable of such Domestic
                  Granting Subsidiary reasonably satisfactory in form and
                  substance to the Administrative Agent and the Banks.

         Section 2.4 Addition of New Defined Terms to Section 1.1. The following
defined terms are added to Section 1.1 of the Agreement to read in their
respective entireties as follows:

                  "Funded Debt" means, without duplication, all Debt of the type
         identified in clauses (a), (b), (c), (d) and (g) of the definition of
         "Debt" in Section 1.1 of this Agreement.

                  "Outstanding Credit Agreement Obligations" means, at any time
         of determination, the sum of (a) the aggregate amount of Revolving
         Loans then outstanding; plus (b) the aggregate amount of Letter of
         Credit Liabilities (or when calculated with respect to a Bank,
         including either Agent as a Bank, such Bank's participation or other
         interest in such Letter of Credit Liabilities); plus (c) the aggregate
         amount of all accrued and unpaid interest and fees and all amounts due
         under Sections 13.1 and 13.2.

         Section 2.5 Amendment to Section 2.1. The "provided, however" clause of
the first sentence of Section 2.1 of the Agreement is amended in its entirety to
read as follows:

         provided, however, (a) the Outstanding Credit Agreement Obligations
         applicable to a Bank (except, with respect to the Administrative Agent
         as a Bank, as may otherwise result from the operation of Section 4.6)
         shall not at any time exceed such Bank's Revolving Commitment; (b) the
         Outstanding Credit Agreement Obligations shall not at any time exceed
         the lesser of (i) the aggregate Revolving Commitments or (ii) the
         Borrowing Base; and (c) the Outstanding Revolving Credit shall never
         exceed the Borrowing Base.

         Section 2.6 Amendment to Sections 2.5 and 2.6. Sections 2.5 and 2.6 of
the Agreement are amended in their respective entireties to read as follows:

                  Section 2.5 Revolving Commitment Fee. The Borrower agrees to
         pay to the Administrative Agent for the account of each Bank a
         commitment fee on the daily average unused amount of such Bank's
         Revolving Commitment for the period from and including the date hereof
         to and including the Revolving Termination Date, at a rate

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<PAGE>

         equal to three-eighths of one percent (0.375%) per annum calculated
         based on a year of 360 days and the actual number of days elapsed
         (including the first day but excluding the last day). For the purpose
         of calculating the commitment fee hereunder, the Revolving Commitments
         shall be deemed utilized by the Outstanding Credit Agreement
         Obligations. Accrued commitment fees under this Section 2.5 shall be
         payable in arrears on the first day of April, July, October and January
         of each year, beginning January 1, 2002 and on the Revolving
         Termination Date.

                  Section 2.6 Reduction or Termination of Revolving Commitments;
         Early Termination Fee. The Borrower shall have the right to terminate
         or reduce in part the unused portion of the Revolving Commitments at
         any time and from time to time, provided that: (a) the Borrower shall
         give notice of each such termination or reduction as provided in
         Section 4.3; (b) each partial reduction shall be in an aggregate amount
         at least equal to Five Million Dollars ($5,000,000); and (c) in the
         event the Revolving Commitments are voluntarily terminated in full on
         or before November 30, 2002, the Borrower agrees to pay to the
         Administrative Agent for the benefit of each Bank a prepayment fee for
         each Bank equal to one percent (1.00%) of the Revolving Commitments
         held by such Bank as calculated immediately prior to giving effect to
         such termination. The Revolving Commitments may not be reinstated after
         they have been terminated or reduced.

         Section 2.7 Amendment to Section 2.7. The "provided, however" clause of
the first sentence of Section 2.7(a) of the Agreement is amended in its entirety
to read as follows:

         provided, however, (i) the aggregate amount of outstanding Letter of
         Credit Liabilities shall not at any time exceed Twenty-Five Million
         Dollars ($25,000,000); (ii) the Outstanding Credit Agreement
         Obligations shall not at any time exceed the lesser of (A) the
         aggregate Revolving Commitments or (B) the Borrowing Base; (iii) the
         Outstanding Credit Agreement Obligations applicable to a Bank shall not
         at any time exceed such Bank's Revolving Commitment (except, with
         respect to the Administrative Agent as a Bank, as may otherwise result
         from the operation of Section 4.6); and (iv) the Outstanding Revolving
         Credit shall never exceed the Borrowing Base.

         Section 2.8 Amendment to Section 3.2. Section 3.2 of the Agreement is
amended in its entirety to read as follows:

                  Section 3.2 Determinations of Margins and Fees. The margins
         identified in Section 3.1 and the fees payable under subsection 2.7(c)
         shall be defined and determined as follows:

                           "Base Margin" shall mean (i) during the period
                  commencing on November 30, 2001 and ending on but not
                  including the first Adjustment Date (as defined below), zero
                  percent (0%) per annum and (ii) during each period from and
                  including one Adjustment Date to but excluding the next
                  Adjustment Date (herein a "Calculation Period"), the percent
                  per annum set forth in the table below in this Section 3.2
                  under the heading "Base Margin" opposite the Interest Coverage
                  Ratio which corresponds to the Interest Coverage Ratio set
                  forth in, and as calculated in accordance with, the applicable
                  Compliance Certificate.

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<PAGE>

                           "LC Fee Rate " shall mean (i) during the period
                  commencing on November 30, 2001 and ending on but not
                  including the first Adjustment Date, one and three quarters of
                  one percent (1.75%) per annum and (ii) during each Calculation
                  Period, the percent per annum set forth in the table below
                  under the heading "LC Fee" opposite the Interest Coverage
                  Ratio which corresponds to the Interest Coverage Ratio set
                  forth in, and as calculated in accordance with, the applicable
                  Compliance Certificate.

                           "Libor Rate Margin" shall mean (i) during the period
                  commencing on November 30, 2001 and ending on but not
                  including the first Adjustment Date, one and three quarters of
                  one percent (1.75%) per annum and (ii) during each Calculation
                  Period, the percent per annum set forth in the table below
                  under the heading Libor Margin opposite the Interest Coverage
                  Ratio which corresponds to the Interest Coverage Ratio set
                  forth in, and as calculated in accordance with, the applicable
                  Compliance Certificate.

<Table>
<Caption>
                                                                          Libor Margin
                  Interest Coverage Ratio                 Base Margin      and LC Fee
                  -----------------------                 -----------     ------------
<S>                                                       <C>             <C>
               Greater than or equal to 4.50                  0.00%          1.75%

               Greater than or equal to 4.00 but less
               than 4.50                                      0.25%          2.00%

               Greater than or equal to 3.00 but less
               than 4.00                                      0.50%          2.25%

               Greater than or equal to 2.00 but less
               than 3.00                                      0.75%          2.50%

               Less than or equal to 2.00                     1.00%          2.75%
</Table>

         Upon delivery of the Compliance Certificate pursuant to subsection
         8.1(c) in connection with the financial statements of the Borrower and
         the Subsidiaries required to be delivered pursuant to Section 8.1(b) at
         the end of each Fiscal Quarter commencing with such Compliance
         Certificate delivered at the end of the Fiscal Quarter ending on
         October 31, 2001 and provided no Default exists, the Base Margin, the
         Libor Rate Margin and the LC Fee Rate shall automatically be adjusted
         in accordance with the Interest Coverage Ratio set forth therein and
         the table set forth above, such automatic adjustment to take effect as
         of the first Business Day after the receipt by the Administrative Agent
         of the related Compliance Certificate pursuant to Section 8.1(c) (each
         such Business Day when such margins or fees change pursuant to this
         sentence or the next following sentence, herein an "Adjustment Date").
         If the Borrower fails to deliver such Compliance Certificate which so
         sets forth the Interest Coverage Ratio within the period of time
         required by subsection 8.1(c) or if a Default otherwise exists: (i) the
         Base Margin shall automatically be adjusted to one percent (1.00%) per
         annum; (ii) the Libor Rate Margin shall automatically be adjusted to
         two and three-quarters of one percent (2.75%) per annum; and (iii) the
         LC Fee Rate shall automatically be adjusted to two and three-quarters
         percent (2.75%) per annum, such automatic adjustments to take effect as
         of the first Business Day after the last day on which the Borrower was
         required to deliver the applicable Compliance Certificate in accordance
         with Section 8.1(c) or, with respect to the occurrence of any other
         Default, on the date the Administrative Agent gives notice thereof to
         the Borrower and to remain in effect until subsequently adjusted in

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         accordance with the terms hereof with the delivery of a Compliance
         Certificate when no Default exists.

         Section 2.9 Amendment to Section 8.1(b). Clause (b) of Section 8.1 of
the Agreement is amended in its entirety to read as follows:

                  (b) Quarterly and Monthly Financial Statements. As soon as
         available, and in any event:

                           (i) within forty-six (46) days after the end of each
                  Fiscal Quarter beginning with the Fiscal Quarter ending
                  October 31, 2001, a copy of an unaudited financial report of
                  the Borrower and the Subsidiaries as of the end of such Fiscal
                  Quarter and for the portion of the Fiscal Year then ended
                  containing, on a consolidated and (except with respect to the
                  statement of cash flow) consolidating basis, a balance sheet
                  and statements of income, retained earnings, and cash flow, in
                  each case (except in the case of the consolidating statements)
                  setting forth in comparative form the figures for the
                  corresponding periods of the preceding Fiscal Year, all in
                  reasonable detail certified by the chief financial officer or
                  chief operating officer of the Borrower to have been prepared
                  in accordance with GAAP but presented in accordance with the
                  interim reporting rules and regulations of the Securities and
                  Exchange Commission and to fairly present (subject to year-end
                  audit adjustments) the financial condition and results of
                  operations of the Borrower and the Subsidiaries, on a
                  consolidated and consolidating basis, at the date and for the
                  periods indicated therein; and

                           (ii) within twenty-five (25) days after the end of
                  each month ending during any Monthly Reporting Period, a copy
                  of an unaudited financial report of the Borrower and the
                  Subsidiaries as of the end of such month and for the portion
                  of the Fiscal Year then ended containing, on a consolidated
                  basis, a balance sheet and statements of income and retained
                  earnings, in each case setting forth in comparative form the
                  figures for the corresponding periods of the preceding Fiscal
                  Year, all in reasonable detail certified by the chief
                  financial officer or chief operating officer of the Borrower
                  to have been prepared in accordance with GAAP but presented in
                  accordance with the interim reporting rules and regulations of
                  the Securities and Exchange Commission and to fairly present
                  (subject to year-end audit adjustments and quarter ended
                  adjustments) the financial condition and results of operations
                  of the Borrower and the Subsidiaries, on a consolidated basis,
                  at the date and for the periods indicated therein (as used
                  herein the term "Monthly Reporting Period" means any period
                  from: (i) the date that the Administrative Agent notifies the
                  Borrower that the Borrowing Availability has dropped below
                  Twenty Million Dollars ($20,000,000) for any five (5)
                  consecutive Business Days as determined by the Administrative
                  Agent to (ii) the date the Administrative Agent advises the
                  Borrower that monthly reporting is no longer necessary (which
                  notice the Administrative Agent agrees to deliver if no
                  Default exists and the Borrowing Availability has exceeded
                  Twenty Million Dollars ($20,000,000) and could not reasonably
                  be expected to drop below that

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                  amount for any five (5) consecutive Business Days in the
                  foreseeable future as determined by the Administrative Agent
                  in its discretion). The Administrative Agent may give notice
                  of the commencement of a Monthly Reporting Period at any time
                  and from time to time in accordance with the foregoing
                  provisions and as a result, more than one Monthly Reporting
                  Period may be established hereunder),

         Section 2.10 Amendment to Section 8.1(e). Clause (e) of Section 8.1 of
the Agreement is amended in its entirety to read as follows:

                  (e) Receivable Reporting. If a Daily Collection Event occurs
         and the Administrative Agent requests, the Borrower shall furnish to
         the Administrative Agent the Receivables Reports (i) once each week if
         the Borrowing Availability drops below Ten Million Dollars
         ($10,000,000) as of any date of determination or (ii) on each Business
         Day if the Borrowing Availability at any time drops below Five Million
         Dollars ($5,000,000) for any three (3) consecutive Business Days as
         determined by the Administrative Agent. Once Daily Collection
         Procedures have been established, they shall remain in effect until the
         Administrative Agent determines in its discretion that they are no
         longer necessary. The Receivables Reports delivered under this clause
         (e) shall be prepared as of the preceding Business Day prior to the
         date of the delivery of such reports, or in the case of weekly
         reporting, for the period since the last weekly report;

         Section 2.11 Amendment to Section 9.2. Section 9.2 of the Agreement is
amended to add the following to the end thereof:

         The issuance of a letter of credit for the account of Borrower or a
         Subsidiary to secure Debt or other obligations of the Borrower or a
         Subsidiary shall not be deemed to be the granting of a Lien for
         purposes of this Section 9.2.

         Section 2.12 Amendment to Section 9.3. Clauses (iii) and (iv) of
Section 9.3 of the Agreement are amended in their respective entireties to read
as follows:

         (iii) the Borrower or any Subsidiary (the "Acquiring Company") may
         acquire all or substantially all of the assets of any Subsidiary (a
         "Transferring Subsidiary") if the Acquiring Company assumes all the
         Transferring Subsidiary's liabilities, including without limitation,
         all liabilities of the Transferring Subsidiary under the Loan Documents
         to which it is a party (and, following such assignment and assumption,
         such Transferring Subsidiary may wind up, dissolve and liquidate); and
         (iv) Borrower or a Subsidiary may acquire (directly or through a merger
         in which the Borrower or Subsidiary is the surviving Person) one
         hundred percent (100%) of the equity interests issued by a Person or
         all or a substantial part of a Person's assets (a Person who is, or
         whose assets are, to be acquired under this subsection 9.3(iv), herein
         a "Target") if such transaction is approved by the Required Banks (with
         the determination by a Bank whether to approve such a transaction not
         to be unreasonably withheld) or if all of the following conditions are
         satisfied:

                           (a) No Default exists or would result therefrom.

                           (b) The Target is involved in the type of business
                  activities described in Section 9.9.

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                           (c) If the proposed acquisition is an acquisition of
                  the stock of a Target, the acquisition will be structured so
                  that the Target will become a wholly-owned Subsidiary directly
                  owned by Borrower. If the proposed acquisition is an
                  acquisition of assets, the acquisition will be structured so
                  that Borrower or a wholly-owned Subsidiary directly owned by
                  Borrower will acquire all or substantially all of the assets
                  of the Target.

                           (d) The Purchase Price for the proposed acquisition
                  does not exceed Ten Million Dollars ($10,000,000) and the sum
                  of the Purchase Price for the proposed acquisition plus the
                  aggregate amount of the Purchases Prices paid during the most
                  recently completed twelve (12) month period prior to the date
                  of the closing of the proposed acquisition for all other
                  acquisitions under the permissions of this Section 9.3 does
                  not exceed Ten Million Dollars ($10,000,000) (the term
                  "Purchase Price" means, as of any date of determination and
                  with respect to a proposed acquisition, the purchase price to
                  be paid for the Target or its assets, including all cash
                  consideration paid (whether classified as purchase price,
                  noncompete or consulting payments or otherwise), the Dollar
                  amount of all Debt to be paid or assumed by the purchaser and
                  the Dollar value of all other assets to be transferred by the
                  purchaser in connection with such acquisition to the seller
                  (including any stock issued to the seller) all valued in
                  accordance with the applicable purchase agreement).

                           (e) The obligations arising under subsection 8.10(b)
                  shall be fulfilled simultaneously with the closing of the
                  acquisition in question.

                           (f) The average daily balance of the sum of
                  Borrower's cash, cash equivalents and the Borrowing
                  Availability for the thirty (30) days preceding the date of
                  the closing of the acquisition and calculated as if the
                  acquisition occurred on the first (1st) day of such period
                  equals or exceeds Twenty-Five Million Dollars ($25,000,000).

                           (g) The ratio of (x) to (y), calculated on a pro
                  forma basis as of the end of the most recently completed
                  Fiscal Quarter prior to the proposed date of the acquisition
                  (assuming the consummation of the acquisition in question,
                  that the incurrence or assumption of any Debt in connection
                  therewith occurred on the first day of such period and, to the
                  extent such Debt bears interest at a floating rate, that the
                  rate in effect for the entire period of calculation was the
                  rate in effect at the time of calculation) shall be not be
                  greater than 3.00 to 1.00, where:

                                    (x) equals the sum of (1) the total Funded
                           Debt outstanding as of such Fiscal Quarter end
                           (excluding the Revolving Loans) plus (2) the daily
                           average outstanding Revolving Loans over the four
                           consecutive Fiscal Quarter periods ending on the date
                           of calculation; and

                                    (y) equals the Adjusted EBITDA calculated
                           for the four Fiscal Quarters then ended.

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<PAGE>

                  The term "Adjusted EBITDA" means, for any period (the "Subject
                  Period"), the total of the following calculated without
                  duplication for such period: (a) Borrower's EBITDA; plus (b),
                  on a pro forma basis, the pro forma EBITDA of the Target and
                  each Prior Target or, as applicable, the EBITDA of the Target
                  and a Prior Target attributable to the assets acquired from
                  such Target and Prior Target, for any portion of such Subject
                  Period occurring prior to the date of the acquisition of each
                  such Target, Prior Target or the related assets but only to
                  the extent such EBITDA can be established based on financial
                  statements prepared in accordance with GAAP and only to the
                  extent the same has been calculated in a manner satisfactory
                  to the Administrative Agent and the Banks. The term "Prior
                  Target" means all Targets acquired or whose assets have been
                  acquired in an acquisition permitted by this Section 9.3.

                           (h) The proposed acquisition shall have been approved
                  by the Target's board of directors or other authorized
                  governing body of the Target and the required percentage of
                  the Target's shareholders or other equity holders.

                           (i) Borrower shall provide the Administrative Agent
                  fifteen (15) Business Days prior to the consummation of the
                  acquisition the following: (1) notice of the acquisition, (2)
                  the most recent financial statements of the Target that the
                  Borrower has available, (3) such other documentation and
                  information relating to the Target and the acquisition as the
                  Administrative Agent may reasonably request, and (4) evidence
                  certified by the chief executive, chief operating or chief
                  financial officer of the Borrower of compliance with clauses
                  (d), (f), and (g) of this Section 9.3 and that on a pro forma
                  basis for the period of four consecutive Fiscal Quarters most
                  recently ended (assuming the consummation of the acquisition
                  in question, that the incurrence or assumption of any Debt in
                  connection therewith occurred on the first day of such period
                  and, to the extent such Debt bears interest at a floating
                  rate, that the rate in effect for the entire period of
                  calculation was the rate in effect at the time of
                  calculation), Borrower shall be in compliance with the
                  covenants contained in Article 10.

         Section 2.13 Amendment to Section 9.4. Clauses (i), (ii) and (iii) of
Section 9.4 of the Agreement are amended in their respective entireties to read
as the following clauses (i) and (ii):

                  (i) Subsidiaries of the Borrower may make, declare, and pay
         dividends and make other distributions to Borrower or to other
         Subsidiaries with respect to their capital stock or other equity
         interests in the ordinary course of business and to allow Borrower to
         pay dividends permitted hereunder; and

                  (ii) The Borrower may pay cash dividends or repurchase its
         capital stock provided that after giving effect to the dividends paid
         or the stock repurchased: (A) no Default exists or would result
         therefrom; (B) the average daily balance of the sum of Borrower's cash,
         cash equivalents and the Borrowing Availability for the thirty (30)
         days preceding the date of payment and calculated as if the stock
         repurchased occurred on the first (1st) day of such period equals or
         exceeds Twenty-Five Million Dollars

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         ($25,000,000); (C) the sum of the aggregate cash dividends and the
         aggregate purchase price of the stock repurchased under this clause
         (ii): (1) in any twelve (12) month period shall not exceed Ten Million
         Dollars ($10,000,000) and (2) during the period from November 30, 2001
         through the Revolving Termination Date shall not exceed Twenty Million
         Dollars ($20,000,000); (D) the ratio of (x) to (y), calculated on a pro
         forma basis as of the end of the most recently completed Fiscal Quarter
         prior to the proposed date of dividend or repurchase and as if the
         dividend or repurchase occurred on the first day of the four Fiscal
         Quarter period then ended, shall be not be greater than 3.00 to 1.00,
         where:

                           (x) equals the sum of (1) the total Funded Debt
                  outstanding as of such Fiscal Quarter end (excluding the
                  Revolving Loans) plus (2) the daily average outstanding
                  Revolving Loans over the four consecutive Fiscal Quarter
                  periods ending on the date of calculation and

                           (y) equals the Borrower's EBITDA calculated for the
                  four Fiscal Quarters then ended; and

         (E) the Borrower shall, within twenty-five (25) days after the end of
         any month during which it has paid any cash dividends or repurchased
         any capital stock, provide the Administrative Agent evidence, certified
         by the chief executive, chief operating or chief financial officer of
         the Borrower, of its compliance with clause (A), (B), (C) and (D) of
         this subsection 9.4(ii) with respect to each such dividends or
         repurchase; and

         Section 2.14 Amendment to Section 9.8. Clause (a) of Section 9.8 is
amended in its entirety to read as follows:

         (a) dispositions of inventory in the ordinary course of business and
         other dispositions of assets to the extent permitted by clauses (ii)
         and (iii) of Sections 9.3 and clauses (h) and (i) of Section 9.5;

         Section 2.15 Amendment to Section 10.1. Section 10.1 of the Agreement
is deleted therefrom.

         Section 2.16 Amendment to Section 10.2. The definition of the term "Net
Income" in Section 10.2 of the Agreement is amended in its entirety to read as
follows:

                  "Net Income" means, for any period and any Person, such
         Person's consolidated net income (or loss) determined in conformity
         with GAAP, but excluding the following, without duplication, in the
         calculation thereof: (a) the income of any other Person (other than its
         subsidiaries) in which such Person or any of its subsidiaries has an
         ownership interest, unless received by such Person or its subsidiary in
         a cash distribution; (b) any after-tax gains attributable to fixed
         asset dispositions; provided that, in connection with any fixed asset
         disposition in the ordinary course of business, if the gain realized
         therefrom is in an amount equal to or less than Fifty Thousand Dollars
         ($50,000), then such gain shall not be excluded from the calculation of
         net income during such period but if the gain from any such fixed asset
         disposition exceeds Fifty Thousand Dollars ($50,000), the total amount
         of the related after-tax gain shall be excluded from the calculation of
         net income; (c) to the extent not included in clauses (a) and (b)
         above, any after-tax extraordinary or non-cash gains; and (d) when
         calculating Net Income for the Borrower, any non-cash deductions
         arising from the write down in the value of goodwill as required under
         Financial Accounting Standards Board Statement 142.

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         Section 2.17 Amendment to Section 12.10. Section 12.10 of the Agreement
is amended in its entirety to read as follows:

                  Section 12.10 Agent Fee. The Borrower agrees to pay to the
         Administrative Agent, on December 1, 2001 and on each Monthly Payment
         Date thereafter, the administrative fee set forth in the letter dated
         September 20, 2001 from J.P. Morgan Business Credit Corporation to the
         Borrower.

         Section 2.18 Amendment to Exhibits "B" and "D". "Exhibits "B" and "D"
to the Agreement are each amended in their respective entireties to read as set
forth on Exhibits "B" and "D" to this Amendment, respectively.

         Section 2.19 Amendment to Schedule 1.1(a). Schedule 1.1(a) to the
Agreement is amended in its entirety to read as set forth on Schedule 1.1(a) to
this Amendment.

         Section 2.20 Amendment to Borrower Security Agreement. Schedule 1 to
the Borrower Security Agreement is amended in its entirety to read as set forth
on Exhibit "E" hereto.

         Section 2.21 Amendment to Subsidiary Security Agreement. The reference
to 7107-C Intermodal Drive in Section 3.5 of the Subsidiary Security Agreement
executed by Spectrum Integrated Services, Inc. is deleted therefrom and Schedule
1 thereto is amended in its entirety to read as set forth on Exhibit "F" hereto.

                                   ARTICLE 3

                              Conditions Precedent

         Section 3.1 Conditions. The effectiveness of Article 2 of this
Amendment is subject to the satisfaction of the following conditions precedent:

                  (a) Administrative Agent shall have received all of the
         following, each dated (unless otherwise indicated) the date of this
         Amendment, in form and substance satisfactory to the Administrative
         Agent:

                           (i) Authorization. Evidence that the Borrower and
                  each Obligated Party are authorized to execute, deliver and
                  perform this Amendment.

                           (ii) Projections. Projected profit and loss
                  statements, balance sheets and cash flow statements for the
                  Borrower and the Subsidiaries all prepared on a consolidated
                  basis, on a quarterly basis for the Fiscal Year ending 2002
                  and on an annual basis for the Fiscal Years ending 2003 and
                  2004. The projections shall be accompanied by appropriate
                  supporting details and narrative statements of underlying
                  assumptions and shall be prepared in sufficient detail to
                  determine the underlining financial statistics including but
                  not limited to fixed and variable costs.

                           (iii) Fee. The arrangement fees due the
                  Administrative Agent under that terms of that certain proposal
                  letter dated September 20,

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                  2001 between J.P. Morgan Business Credit Corporation and the
                  Borrower and evidence that the costs and expenses (including
                  attorneys' fees) referred to in Section 4.4 hereof, to the
                  extent incurred, shall have been paid in full by Borrower.

                           (iv) Additional Information. Administrative Agent
                  shall have received such additional documentation and
                  information as Administrative Agent may request.

                  (b) After giving effect to this Amendment, the representations
         and warranties contained herein and in all other Loan Documents, as
         amended hereby, shall be true and correct in all material respects as
         of the date hereof as if made on the date hereof, except for such
         representations and warranties limited by their terms to a specific
         date;

                  (c) After giving effect to this Amendment, no Default shall
         have occurred and be continuing; and

                  (d) All proceedings taken in connection with this Amendment
         and all documentation and other legal matters incident thereto shall be
         satisfactory to Administrative Agent.

                                   ARTICLE 4

                                 Miscellaneous

         Section 4.1 Ratifications. The terms and provisions set forth in this
Amendment shall modify and supersede all inconsistent terms and provisions set
forth in the Agreement and except as expressly modified and superseded by this
Amendment, the terms and provisions of the Agreement and the other Loan
Documents are ratified and confirmed and shall continue in full force and
effect. Borrower, the Banks and the Agents agree that the Agreement as amended
hereby and the other Loan Documents shall continue to be legal, valid, binding
and enforceable in accordance with their respective terms. For all matters
arising prior to the effective date of this Amendment (including, without
limitation the accrual and payment of interest and commitment and other fees),
the terms of the Agreement (as unmodified by this Amendment) shall control and
are hereby ratified and confirmed.

         Section 4.2 Representations and Warranties. Borrower hereby represents
and warrants to Administrative Agent and the Banks as follows: (a) after giving
effect to this Amendment, no Default has occurred and is continuing; (b) after
giving effect to this Amendment, the representations and warranties set forth in
the Loan Documents are true and correct in all material respects on and as of
the date hereof with the same effect as though made on and as of such date
except with respect to any representations and warranties limited by their terms
to a specific date; (c) the execution, delivery and performance of this
Amendment has been duly authorized by all necessary action on the part of
Borrower and each Obligated Party and does not and will not: (1) violate any
provision of law applicable to Borrower or any Obligated Party, the certificate
of incorporation, bylaws, partnership agreement, membership agreement, or other
applicable governing document of Borrower or any Obligated Party or any order,
judgment, or decree of any court or agency of government binding upon Borrower
or any Obligated Party; (2) conflict with, result in a breach of or constitute
(with due notice or lapse of time or both) a default under any material
contractual obligation of Borrower or any Obligated Party; (3) result in or
require the creation or imposition of any material lien upon any of the assets
of Borrower or any Obligated Party; or (4) require any approval or consent of
any Person under any material contractual obligation of Borrower or any

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<PAGE>

Obligated Party; (d) except as previously disclosed to Administrative Agent, the
articles of incorporation, bylaws, partnership agreement, certificate of limited
partnership, membership agreement, articles of organization or other applicable
governing document of the Borrower and each Obligated Party, resolutions of the
Borrower attached as Exhibit B to its Secretary's Certificate dated as of March
6, 1998, and resolutions of Spectrum Integrated Services, Inc. attached as
Exhibit B to its Secretary's Certificate dated as of March 6, 1998, have not
been modified or rescinded since March 6, 1998, and remain in full force and
effect, and the officers identified in each such Secretary's Certificate
continue to hold the offices set forth in such certificate; and (e) the
projections described in Section 3.1(a)(ii) were prepared by Borrower based on
the most recent financial statements of Borrower in light of the past operations
of Borrower and were prepared on a basis consistent with GAAP, with only such
adjustments thereto as would be required in accordance with GAAP and such
projections represent, as of the date thereof, the good faith estimate of
Borrower and its senior management concerning the projected performance of
Borrower's business based on the supporting details and assumptions set forth in
such projections after giving effect to the transactions contemplated hereby.
The Banks acknowledge that the projections are estimates and that the Borrower's
actual results can differ from those set forth in such projections. IN ADDITION,
TO INDUCE THE ADMINISTRATIVE AGENT AND THE BANKS TO AGREE TO THE TERMS OF THIS
AMENDMENT, BORROWER AND EACH OBLIGATED PARTY (BY ITS EXECUTION BELOW) REPRESENT
AND WARRANT THAT AS OF THE DATE OF ITS EXECUTION OF THIS AMENDMENT THERE ARE NO
CLAIMS OR OFFSETS AGAINST OR DEFENSES OR COUNTERCLAIMS TO ITS OBLIGATIONS UNDER
THE LOAN DOCUMENTS AND IN ACCORDANCE THEREWITH IT WAIVES ANY AND ALL SUCH
CLAIMS, OFFSETS, DEFENSES OR COUNTERCLAIMS, WHETHER KNOWN OR UNKNOWN, ARISING
PRIOR TO THE DATE OF ITS EXECUTION OF THIS AMENDMENT.

         Section 4.3 Reference to Agreement. Each of the Loan Documents,
including the Agreement and any and all other agreements, documents, or
instruments now or hereafter executed and delivered pursuant to the terms hereof
or pursuant to the terms of the Agreement as amended hereby, are hereby amended
so that any reference in such Loan Documents to the Agreement shall mean a
reference to the Agreement as amended hereby.

         Section 4.4 Expenses of Agents. As provided in the Agreement, Borrower
agrees to pay on demand all costs and expenses incurred by Administrative Agent
or Collateral Agent in connection with the preparation, negotiation, and
execution of this Amendment and the other Loan Documents executed pursuant
hereto, including without limitation, the costs and fees of Administrative
Agent's legal counsel.

         Section 4.5 Severability. Any provision of this Amendment held by a
court of competent jurisdiction to be invalid or unenforceable shall not impair
or invalidate the remainder of this Amendment and the effect thereof shall be
confined to the provision so held to be invalid or unenforceable.

         Section 4.6 Applicable Law. This Amendment shall be governed by and
construed in accordance with the laws of the State of Texas and the applicable
laws of the United States of America.

         Section 4.7 Successors and Assigns. This Amendment is binding upon and
shall inure to the benefit of the Banks, National City, the Agents and Borrower
and their respective successors and assigns, except Borrower may not assign or
transfer any of its rights or obligations hereunder without the prior written
consent of the Banks.

         Section 4.8 Counterparts. This Amendment may be executed in one or more
counterparts, each of which when so executed shall be deemed to be an original,
but all of which when taken together shall constitute one and the same
agreement.

FIFTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT AND MODIFICATION TO
OTHER LOAN DOCUMENTS - Page 14

<PAGE>

     Section 4.9 Headings. The headings, captions, and arrangements used in this
Amendment are for convenience only and shall not affect the interpretation of
this Amendment.

     Section 4.10. ENTIRE AGREEMENT. THIS AMENDMENT EMBODIES THE FINAL, ENTIRE
AGREEMENT AMONG THE PARTIES HERETO WITH RESPECT TO THE SUBJECT MATTER HEREOF AND
SUPERSEDES ANY AND ALL PRIOR COMMITMENTS, AGREEMENTS, REPRESENTATIONS AND
UNDERSTANDINGS, WHETHER WRITTEN OR ORAL, RELATING TO THIS AMENDMENT, AND MAY NOT
BE CONTRADICTED OR VARIED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT
ORAL AGREEMENTS OR DISCUSSIONS OF THE PARTIES HERETO. THERE ARE NO ORAL
AGREEMENTS AMONG THE PARTIES HERETO.

     Executed as of the date first written above.

                                       BORROWER:

                                       SOFTWARE SPECTRUM, INC.

                                       By:  /s/ KEITH R. COOGAN
                                           -------------------------------------
                                           Keith R. Coogan
                                           President & Chief Operating Officer

                                       ADMINISTRATIVE AGENT:

                                       JPMORGAN CHASE BANK (as the successor in
                                       interest by merger to The Chase Manhattan
                                       Bank), individually as a Bank, as the
                                       Administrative Agent and the Collateral
                                       Agent

                                       By: /s/ GINA HOLLOWAY
                                          --------------------------------------
                                          Gina Holloway, Senior Vice President

                                       OTHER BANKS AND NATIONAL CITY:

                                       NATIONAL CITY BANK, KENTUCKY

                                       By: /s/ STEPHEN BASSETT
                                          --------------------------------------
                                          Name: Stephen Bassett
                                               ---------------------------------
                                          Title: Account Officer
                                                --------------------------------

                                       PNC BANK, NATIONAL ASSOCIATION

                                       By: /s/ SUNNIE M. KIM
                                          --------------------------------------
                                          Name: SUNNIE M. KIM
                                               ---------------------------------
                                          Title: ASST. VICE PRESIDENT
                                                --------------------------------

FIFTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT AND MODIFICATION TO
OTHER LOAN DOCUMENTS - Page 15

<PAGE>

                                       FOOTHILL CAPITAL CORPORATION

                                       By: /s/ JUAN BARRERA
                                          --------------------------------------
                                          Name: Juan Barrera
                                               ---------------------------------
                                          Title: Assistant Vice President
                                                --------------------------------

FIFTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT AND MODIFICATION TO
OTHER LOAN DOCUMENTS - Page 16

<PAGE>

                                 ACKNOWLEDGMENT

         The undersigned hereby consents and agrees to this Amendment
(including, without limitation, Section 2.21 and Section 4.2), and hereby
ratifies and confirms each of the Loan Documents to which it is a party and
agrees that such Loan Documents continue to be legal, valid, binding and
enforceable in accordance with their respective terms.

         Witness due execution hereof by the undersigned as of the date first
written above.

                                       SPECTRUM INTEGRATED SERVICES, INC.

                                       By: /s/ KEITH R. COOGAN
                                          --------------------------------------
                                          Keith R. Coogan, President,
                                          Executive Vice President and Assistant
                                          Secretary

FIFTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT AND MODIFICATION TO
OTHER LOAN DOCUMENTS - Page 17

<PAGE>

                         LIST OF EXHIBITS AND SCHEDULES

          Exhibit "B"         Borrowing Base Certificate
          Exhibit "D"         Compliance Certificate
          Exhibit "E"         Schedule 1 to Borrower Security Agreement
          Exhibit "F"         Schedule 1 to Subsidiary Security Agreement

          Schedule 1.1(a)     Revolving Commitments

LIST OF EXHIBITS, Solo Page
<PAGE>

                                  EXHIBIT "B"
                                       TO
                            SOFTWARE SPECTRUM, INC.
                               FIFTH AMENDMENT TO
                     AMENDED AND RESTATED CREDIT AGREEMENT

                           Borrowing Base Certificate

EXHIBIT "B", Cover Page
<PAGE>

                           BORROWING BASE CERTIFICATE

TO:      JPMorgan Chase Bank,
         as administrative agent
         600 Fifth Avenue, 4th Floor
         New York, New York 10020

         with a copy to each Bank

Ladies/Gentlemen:

         This Borrowing Base Report for the month ending ____________________,
20___, is executed and delivered by SOFTWARE SPECTRUM, INC. (the "Borrower") to
JPMorgan Chase Bank ("Administrative Agent"), pursuant to that certain Amended
and Restated Credit Agreement (the "Credit Agreement") dated as of March 11,
1998, among the Borrower, The Chase Manhattan Bank, Chase Bank of Texas,
National Association, as Collateral Agent, and the banks named therein. All
terms used herein shall have the meanings assigned to them in the Credit
Agreement.

         The Borrower represents and warrants to the Administrative Agent and
the Banks that all information contained herein is true, correct, and complete,
and that the total Eligible Accounts referred to below represent the Eligible
Accounts that qualify for purposes of determining the Borrowing Base under the
Credit Agreement. The Borrower further represents and warrants to the Lender
that attached are the following Receivable Reports, all for the Borrower and the
Granting Subsidiaries for the month ending ____________, 20__: (A) a list of all
accounts receivable showing all accounts aged in 30, 60, 90 and 120 day
intervals (reflecting all journal entries and adjustments, including all
customer credits and debits), (B) all contra calculations, specifying, among
other items, the accounts payable balances owed to its top ten vendors, (C) a
collections report, (D) the lockbox statements, and (E) inventory designations.

<Table>
<S>                                                                      <C>
1.    Accounts Receivable of Borrower and Domestic Granting
      Subsidiaries as of the date of the last submitted Borrowing
      Base (note: lines 1(a), (b) and (c) to be completed only upon
      Administrative Agent's request)                                    $___________

      (a) + Sales                                                        $___________

      (b) - Collections                                                  $___________

      (c) - Credits                                                      $___________

      (d) Gross Accounts Receivable of Borrower and Domestic
          Granting Subsidiaries as of _____________ (detail of
          the conversion calculation of Canadian dollar accounts
          to U.S. dollars to be attached as a schedule)                  $___________
</Table>

         Accounts Receivable Aging of Borrower and Domestic Granting
Subsidiaries as of ___________

<Table>
<Caption>
       Domestic
       Total A/R   Current   31-60   61-90   91-120   Over 120
       ---------   -------   -----   -----   ------   --------
<S>                <C>       <C>     <C>     <C>      <C>
       $           $         $       $       $        $
</Table>

BORROWING BASE CERTIFICATE, Page 1
<PAGE>

<Table>
<S>                                                                    <C>
2.    Less: Ineligible Accounts of Borrower and the Domestic
      Granting Subsidiaries (determined pursuant to the
      definition of Eligible Account in the Credit Agreement,
      without duplication)
      (a) Accounts not due and payable within 120 days ............... $__________
      (b) Accounts outstanding for more than 120 days past the
          original date of invoice.................................... $__________
      (c) Accounts created outside of the ordinary course of
          business ................................................... $__________
      (d) Accounts relating to unenforceable contracts or
          contracts which do not represent complete bona fide
          transactions ............................................... $__________
      (e) Accounts from sales on bill-and-hold, guaranteed
          sale, sale-and-return, or similar basis .................... $__________
      (f) Accounts subject to, or arising from the sale of goods
          subject to, a Lien other than Liens held by the
          Collateral Agent............................................ $__________
      (g) Accounts as to which the Collateral Agent does not
          have first priority Lien or which are not directed to be
          remitted to a Lockbox Account .............................. $__________
      (h) Accounts subject to set-off, dispute, etc................... $__________
      (i) Accounts owed by account debtors subject to
          bankruptcy or that are insolvent ........................... $__________
      (j) Accounts evidenced by chattel paper or instruments ......... $__________
      (k) Accounts owed by foreign account debtors (other than
          Approved Foreign Account Debtors) not supported by
          an acceptable letter of credit or insurance ................ $__________
      (l) Any U.S. Federal or Canadian Government Accounts
          unless the applicable assignment of claims laws shall
          have been complied with .................................... $__________
      (m) Accounts owed by Affiliates etc. ........................... $__________
      (n) Accounts not payable in Dollars or Canadian dollars ........ $__________
      (o) Accounts that do not comply with laws, etc ................. $__________
      (p) Accounts backed by performance, completion or other
          bonds or performance subcontracted (unless waived in
          writing by the Administrative Agent) ....................... $__________
      (q) Accounts written off per GAAP .............................. $__________
      (r) Accounts for which required notices have not been
          filed ...................................................... $__________
      (s) Excluded Accounts .......................................... $__________
      (t) Accounts subject to 50% past due rule ...................... $__________
      (u) Contra accounts owed to the account debtors ................ $__________
3.    Total Ineligible Accounts of Borrower and the Domestic
      Granting Subsidiaries (total of 2(a) through (u))............... $__________
4.    Total Eligible Accounts of Borrower and the Domestic
      Granting Subsidiaries (1(d) minus 3) ........................... $__________
5.    Advance Percent of line 4 ...................................... $___________
</Table>

BORROWING BASE CERTIFICATE, Page 2
<PAGE>

<Table>
<S>                                                                    <C>
6.    Accounts Receivable of Software Spectrum Canada as of
      the date of the last submitted Borrowing Base (note: lines
      6 (a), (b) and (c) to be completed only upon
      Administrative Agent's request)................................. $__________
      (a) + Sales .................................................... $__________
      (b) - Collections .............................................. $__________
      (c) - Credits .................................................. $__________
      (d) Gross Accounts Receivable of Software Spectrum
          Canada as of _____________ (detail of conversion
          calculation to U.S. dollars to be attached as a
          schedule)................................................... $__________
</Table>

<Table>
<Caption>
       Domestic
       Total A/R   Current   31-60   61-90   91-120   Over 120
       ---------   -------   -----   -----   ------   --------
<S>                <C>       <C>     <C>     <C>      <C>
       $           $         $       $       $        $
</Table>

<Table>
<S>                                                                       <C>
7.    Less: Ineligible Accounts of Software Spectrum Canada

      (a) Accounts not due and payable within 120 days .................. $___________
      (b) Accounts outstanding for more than 120 days past the
          original date of invoice....................................... $___________
      (c) Accounts created outside of the ordinary course of
          business ...................................................... $___________
      (d) Accounts relating to unenforceable contracts or
          contracts which do not represent complete bona fide
          transactions .................................................. $___________
      (e) Accounts from sales on bill-and-hold, guaranteed
          sale, sale-and-return, or similar basis ....................... $___________
      (f) Accounts subject to, or arising from the sale of goods
          subject to, a Lien other than Liens held by the
          Collateral Agent............................................... $___________
      (g) Accounts as to which the Collateral Agent does not
          have first priority Lien or which are not directed to be
          remitted to a Lockbox Account ................................. $___________
      (h) Accounts subject to set-off, dispute, etc...................... $___________
      (i) Accounts owed by account debtors subject to
          bankruptcy or that are insolvent .............................. $___________
      (j) Accounts evidenced by chattel paper or instruments ............ $___________
      (k) Accounts owed by foreign account debtors (other than
          Approved Foreign Account Debtors) not supported by
          an acceptable letter of credit or insurance ................... $___________
      (l) Any U.S. Federal or Canadian Government Accounts
          unless the applicable assignment of claims laws shall
          have been complied with ....................................... $___________
      (m) Accounts owed by Affiliates etc. ..............................
      (n) Accounts not payable in Dollars or Canadian dollars ........... $___________
</Table>

BORROWING BASE CERTIFICATE, Page 3
<PAGE>

<Table>
<S>                                                                   <C>            <C>
      (o) Accounts that do not comply with laws, etc ...............  $___________
      (p) Accounts backed by performance, completion or other
          bonds or performance subcontracted (unless waived in
          writing by the Administrative Agent) .....................  $___________
      (q) Accounts written off per GAAP ............................  $___________
      (r) Accounts for which required notices have not been
          filed ....................................................  $___________
      (s) Excluded Accounts ........................................  $___________
      (t) Accounts subject to 50% past due rule ....................  $___________
      (u) Contra accounts owed to the account debtors ..............  $___________
      (v) Accounts not purchased by Borrower........................  $___________
8.    Total Software Spectrum Canada Ineligible Accounts
      (total 7(a) through (v)) $___________
9.    Total Eligible Accounts relating to Software Spectrum
      Canada (6 minus 8) ...........................................  $___________
10.   Advance Percent of Line 9.....................................  $___________
11.   Market value of cash and cash equivalents held in Cash
      Collateral Account (market value detailed on Schedule 2
      hereto) ......................................................  $___________
12.   Outstanding Short Term Bank Debt ............................. ($___________)
13.   Reserves ..................................................... ($___________)
14.   Borrowing Base: Line 5 plus Line 10 plus line 11 minus
      line 12 minus line 13 ........................................                  $___________

15.   Outstanding Credit Agreement Obligations
      (a) Revolving Loans ..........................................  $___________
      (b) Letter of Credit Liabilities .............................  $___________
      (c) Accrued and unpaid interest and fees and other
          amounts due ..............................................  $___________
      (d) Total.....................................................                  $___________

16.   Outstanding Revolving Credit:
      (a) Deposit and cash management obligations (to the
      extent not prefunded) ........................................  $___________
      (b) Outstanding Credit Agreement Obligations(from line
      15(d))........................................................  $___________
      (c) Total.....................................................                  $___________
</Table>

BORROWING BASE CERTIFICATE, Page 4
<PAGE>

<Table>
<S>                                                            <C>            <C>

17.   The "Borrowing Availability" as defined in the Credit
      Agreement:
      (i) the Revolving Commitments ..........................  $___________

      (ii) line 14 (i.e., the Borrowing Base) minus ..........  $___________

      (iii) line 16(a) (the deposit and cash management
      obligations, to the extent not prefunded) .............. ($___________)

      (iv) total of line 17 (ii) minus line 17 (iii) .........  $___________

      (v) lesser of line (i) or (iv) .........................  $___________

      (vi) Line 15(d) (i.e., the Outstanding Credit Agreement
      Obligations) ........................................... ($___________)

      (vii) Line 17 (v) minus line 17(vi) ....................                $___________
18.   Does Line 16(c) exceed line 14? (i.e., Outstanding
      Revolving Credit can not exceed the Borrowing Base)                Yes            No
</Table>

         The Borrower represents and warrants to the Banks that the
representations and warranties of the Borrower contained in Article 7 of the
Credit Agreement and the other Loan Documents are true and correct on and as of
the date of this Borrowing Base Report as if made on and as of the date hereof
except to the extent that such representations and warranties speak to a
specific date, and that no Default has occurred and is continuing.

Date:           ,      .
      ----------  -----
                                         BORROWER:

                                         SOFTWARE SPECTRUM, INC.

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

BORROWING BASE CERTIFICATE, Page 5
<PAGE>

                                  EXHIBIT "D"
                                       to
                            SOFTWARE SPECTRUM, INC.
                               FIFTH AMENDMENT TO
                     AMENDED AND RESTATED CREDIT AGREEMENT

                             Compliance Certificate

EXHIBIT "D", Cover Page
<PAGE>

                             COMPLIANCE CERTIFICATE
                                    for the
                        quarter ending            ,
                                       -------- --  ----

To:      JPMorgan Chase Bank,
         as administrative agent
         600 Fifth Avenue, 4th Floor
         New York, New York 10020

and each Bank

Ladies and Gentlemen:

         This Compliance Certificate (the "Certificate") is being delivered
pursuant to Section 8.1(c) of that certain Amended and Restated Credit Agreement
(as amended, the "Agreement") dated as of March 11, 1998 among SOFTWARE
SPECTRUM, INC. (the "Borrower"), The Chase Manhattan Bank (now JPMORGAN CHASE
BANK), as administrative agent and Chase Bank of Texas, National Association
Bank (now JPMorgan Chase Bank) as collateral agent and the Banks named therein.
All capitalized terms, unless otherwise defined herein, shall have the same
meanings as in the Agreement. All the calculations set forth below shall be made
pursuant to the terms of the Agreement.

         The undersigned, an authorized financial officer of the Borrower, does
hereby certify to the Agent and the Banks that:

1.       DEFAULT.

         No Default has occurred and is continuing or if a Default has occurred
         and is continuing, I have described on the attached Exhibit "A" the
         nature thereof and the steps taken or proposed to remedy such Default.

<Table>
<Caption>
                                                                  Compliance or
                                                                   Response to
                                                                    Question
                                                                  -------------
<S>                                                              <C>   <C>   <C>
2.       SECTION 8.1 - FINANCIAL STATEMENTS AND RECORDS

      (a) Annual audited financial statements of Borrower on or
          before 91 days after the end of each Fiscal Year.      Yes   No    N/A

      (b) Quarterly unaudited financial statements of Borrower
          on a consolidated and consolidating basis within 46
          days of each Fiscal Quarter end.                       Yes   No    N/A

      (c) Borrowing Base Report together with the Receivables
          Reports within 20 days of each month end or within 20
          days of any other date required by the Administrative
          Agent.                                                 Yes   No    N/A

      (d) If Daily Collection Event occurs, Receivable Reports   Yes   No    N/A
          (i) weekly or
          (ii) daily

      (e) Projections within 30 days before the start of each    Yes   No    N/A
          Fiscal Year.
</Table>

COMPLIANCE CERTIFICATE - Page 1

<PAGE>

<Table>
<S>                                                              <C>           <C>   <C>
3.    SECTION 8.10 - COLLATERAL MATTERS
    (a) Aggregate book value of inventory held by third
        parties                                                  $__________
    (b) Limit                                                    $ 2,500,000   Yes   No
    (c) Collateral perfection/protection required?                             Yes   No
    (d) Material Subsidiary created or acquired?                               Yes   No
    (e) If line (d) is yes, have 8.10(b) and (c) collateral
        measures been taken?                                                   Yes   No

4.    SECTION 9.1 - DEBT No Additional Debt except:
    (a) Purchase money not to exceed:                            $ 5,000,000   Yes   No
        Actual Outstanding                                       $__________
    (b) Guaranties of surety and other bonds not to exceed:      $ 4,000,000   Yes   No
        Actual Outstanding                                       $__________
    (c) Outstanding Guaranties of permitted Debt of Foreign
        Subs and Foreign Ventures                                $__________   Yes   No
    (d) Outstanding Loans, advances, other extensions of
        credit, investments and contributions to Foreign Subs
        (excluding Software Spectrum Canada in an amount
        up to the gross Dollar amount of receivables of
        Software Spectrum Canada) and Foreign Ventures           $__________   Yes   No
    (e) Total Foreign Subsidiary Obligations (line 4(c) plus
        4(d))                                                    $__________   Yes   No
    (f) Foreign Subsidiary Limit
        (i)  $30,000,000 plus                                    $__________
        (ii) if 9.1(e)(ii) test satisfied $10,000,000                          Yes   No
    (g) Acquisition Debt incurred in any Fiscal Year not to
        exceed:                                                  $10,000,000
        Actual incurred in current Fiscal Year(note: Incurrence
        Test must also be met)                                   $__________   Yes   No
    (h) Unsecured Vendor Debt not to exceed:                     $20,000,000
        Actual Outstanding(note : Incurrence Test must also be
        met)                                                     $__________   Yes   No
    (i) Unsecured Short Term Bank Debt not to exceed:            $ 5,000,000
        Actual Outstanding:                                      $__________   Yes   No

5.  SECTION 9.3 - MERGERS, ETC
  (a) Has acquisition been consummated since last
      Compliance Certificate?                                                  Yes   No
  (b) If line (a) yes, Purchase Price                            $__________
</Table>

COMPLIANCE CERTIFICATE - Page 2

<PAGE>

<Table>
<S>                                                              <C>           <C>   <C>  <C>
  (c) Aggregate Purchase Prices from prior acquisitions
      under 9.3 in last 12 months.                               $__________              N/A
  (d) Aggregate Purchase Price Limit per 12 month period         $10,000,000   Yes   No   N/A
  (e) Were the conditions in clauses (vii) of Section 9.3
      satisfied with respect to each acquisition?                              Yes   No   N/A

6.  SECTION 9.4 - DIVIDENDS AND STOCK REPURCHASES

  (a) Stock repurchases and dividends for last 12 months not
      to exceed:                                                 $10,000,000

      Actual repurchases and dividends during the last 12
      months                                                     $__________   Yes   No

  (b) Stock repurchases and dividends for period from
      10/31/02 to Revolving Credit Termination Date not to
      exceed:                                                    $20,000,000

      Actual repurchase and dividends during such period:        $__________   Yes   No

7.  SECTION 9.8 - DISPOSITION ASSETS:
  (a) Book Value of asset disposed of in sale leaseback
      transaction within the last 12 months                      $__________   Yes   No   N/A

      Actual not to exceed:                                      $   500,000

  (b) Book value of assets disposed of within the last 12
      months                                                     $__________   Yes   No   N/A

      Actual not to exceed                                       $   500,000

8.  SECTION 9.10 - PREPAYMENT OF DEBT
    No prepayment of Debt except:

  (a) Obligations
  (b) Foreign Sub Debt Guaranteed
  (c) Prepayment of other Debt limited in any Fiscal Year to:    $   500,000
  (d) Aggregate amount of other Debt so prepaid in current
      Fiscal Year                                                $__________   Yes   No   N/A

9. SECTION 10.2 - INTEREST COVERAGE
  (a) Net Income for applicable period
      (i)   net income or loss                                   $__________
      (ii)  minus income of others                              ($__________)
      (iii) minus after-tax gains from asset dispositions       ($__________)
      (iv)  minus other after-tax extraordinary or
            non-cash gains                                      ($__________)
</Table>

COMPLIANCE CERTIFICATE - Page 3

<PAGE>

<Table>
<S>                                                              <C>           <C>   <C>
      (v)   plus non-cash deductions arising from the
            write down in the value of goodwill                  $__________
      (vi)  total of (i) through (v)                             $__________
  (b) Plus net provisions for tax                                $__________
  (c) Plus Interest Expense                                      $__________
  (d) Plus amortization and depreciation                         $__________
  (e) Borrower EBITDA: 9(a) plus 9(b), 9(c) and 9(d)             $__________
  (f) Unfinanced Capital Expenditures                            $__________
  (g) (line 9(e) minus line 9(f))                                $__________
  (h) Interest Expense                                           $__________
  (i) Interest Coverage (line 9(g) divided by line 9(h))         ___ to 1.00
  (j) Minimum Interest Coverage                                  ___ to 1.00   Yes   No

10. SECTION 10.3 - CAPITAL EXPENDITURE LIMITS

  (a) Capital Expenditure limit for the period                   $__________
  (b) Actual Capital Expenditures                                $__________   Yes   No

11. SECTION 10.4 - NET INCOME

  (a) Net Income for (current Fiscal Quarter)
      (i)   net income or loss                                   $__________
      (ii)  minus income of others                              ($__________)
      (iii) minus after-tax gains from asset dispositions       ($__________)
      (iv)  minus other after-tax extraordinary or
      non-cash gains                                            ($__________)
      (v) plus non-cash deductions arising from the
      write down in the value of goodwill                        $__________
      (vi) total of (i) through (v)                              $__________

  (b) line (a)(v) less than -$2,500,000                                        Yes   No
  (c) Net Income (previous Fiscal Quarter)
      (i)   net income or loss                                   $__________
      (ii)  minus income of others                              ($__________)
      (iii) minus after-tax gains from asset dispositions       ($__________)
      (iv)  minus other after-tax extraordinary or
      non-cash gains                                            ($__________)
      (v)   plus non-cash deductions arising from the
      write down in the value of goodwill                        $__________
</Table>

COMPLIANCE CERTIFICATE - Page 4
<PAGE>

<Table>
<S>                                                              <C>           <C>   <C>
      (vi)  total of (i) through (v)                             $__________
  (d) 11(a)(v) plus 11(b)(v) less than - $3,000,000                            Yes   No

12.   DETERMINATION OF MARGIN AND FEES

  (a) Borrower EBITDA: From 9(e)                                 $__________
  (b) All Capital Expenditures (financed and unfinanced)         $__________
  (c) Actual technical support contract Capital Expenditures
      not to exceed $1,500,000 incurred in the period
      through the Fiscal Quarter ending January 31, 1999         $__________
  (d) (line 12(a) minus the positive sum of (i) line 12(b)
      minus (ii), if calculated for a period prior to February
      1, 1999, line 12(c))                                       $__________
  (e) Interest Expense                                           $__________
  (f) Interest Coverage Ratio (line 12(d) divided by line
      12(e))                                                     ___:1.00      Yes   No
  (g) Adjustment to margin and fees required by Section
      3.2?
  (h) If adjustment required, set forth below new margins
      and fees in accordance with Section 3.2:
      (i)  Base Margin                                           _______%
      (ii) Libor Rate Margin and LC Fee                          _______%
</Table>

13. ATTACHED SCHEDULES

    Attached hereto as schedules are the calculations supporting the computation
    set forth above in this Certificate. All information contained herein and on
    the attached schedules is true and correct.

14. FINANCIAL STATEMENTS

    The unaudited financial statements attached hereto were prepared in
    accordance with GAAP but presented in accordance with the interim reporting
    rules and regulations of the Securities and Exchange Commission and fairly
    present (subject to year end audit adjustments) the financial conditions and
    the results of the operations of the Persons reflected thereon, at the date
    and for the periods indicated therein.

         IN WITNESS WHEREOF, the undersigned has executed this Certificate
effective this _______ day of ____________, _______.

                                         SOFTWARE SPECTRUM, INC.

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

COMPLIANCE CERTIFICATE - Page 5
<PAGE>

                                  EXHIBIT "E"
                                       to
                            SOFTWARE SPECTRUM, INC.
                               FIFTH AMENDMENT TO
                     AMENDED AND RESTATED CREDIT AGREEMENT

EXHIBIT "E", Cover Page
<PAGE>

                                   Schedule 1
                                       to
                          Borrower Security Agreement

                            Locations of Collateral

                                I. ASSUMED NAMES

                               Software Spectrum

         Software Spectrum, Inc. changed its name from The Software Store, Inc.
in May 1991.

           II. BUSINESS LOCATIONS (including locations of Inventory)

<Table>
<Caption>
                                                     Name and Address of Landlord or
               Address          Lease/Own             Mortgagee of Premises (if any)
               -------          ---------        -------------------------------------
<S>                             <C>              <C>
Software Spectrum, Inc.
Corporate Headquarters                           Trammell Crow Dallas/Ft. Worth
2140 Merritt Drive                               2200 Ross Avenue, Suite 3700
Garland, Texas 75041              Lease          Dallas, Texas 75201

Software Spectrum, Inc.
Corporate Headquarters                           Compass Management and Leasing, Inc.
2220 Merritt Drive                               12377 Merritt Drive, Suite 1400
Garland, Texas 75041              Lease          Dallas, Texas 75251

Software Spectrum, Inc.                          Spokane Teacher's Credit Union
1620 North Signal Drive                          1620 North Signal Drive
Liberty Lake, Washington 99019    Lease          Liberty Lake, WA 99019

                                                 SDS Properties Liberty Lake LLC
Software Spectrum, Inc.                          c/o SDS Realty
22820 East Appleway                              202 East Trent, Suite 202
Liberty Lake, WA 99019            Lease          Spokane, WA 99202
</Table>

SCHEDULE 1 TO BORROWER SECURITY AGREEMENT, Solo Page
<PAGE>

                                  EXHIBIT "F"
                                       to
                            SOFTWARE SPECTRUM, INC.
                               FIFTH AMENDMENT TO
                     AMENDED AND RESTATED CREDIT AGREEMENT

EXHIBIT "F", Cover Page
<PAGE>

                                   Schedule 1
                                       to
                               Security Agreement
                             Locations of Inventory

                                I. ASSUMED NAMES

                           Spectrum Contract Services
                               Software Spectrum
                  Software Spectrum Technology Services Group
                                 Info-Pro, Inc.
                           Computer Rental Associates

                                 II. LOCATIONS

<Table>
<Caption>
                                                         Name and Address of Landlord or
               Address              Lease/Own             Mortgagee of Premises (if any)
               -------              ---------        -------------------------------------
<S>                                 <C>              <C>
                                                     Trammell Crow Dallas/Ft. Worth
2140 Merritt Drive                                   2200 Ross Avenue, Suite 3700
Garland, Texas 75041                  Lease          Dallas, Texas 75201

                                                     Compass Management and Leasing, Inc.
2220 Merritt Drive                                   12377 Merritt Drive, Suite 1400
Garland, Texas 75041                  Lease          Dallas, Texas 75251

6302 East Martin Luther King Blvd.                   Highwoods/Florida Holdings L.P.
Suite 200                                            9720 Princess Palm Avenue, Suite 140
Tampa, FL 33610                       Lease          Tampa, FL 33619

                                                     Spokane Teacher's Credit Union
1620 North Signal Drive                              1620 North Signal Drive
Liberty Lake, Washington 99019        Lease          Liberty Lake, WA 99019

                                                     SDS Properties Liberty Lake LLC
                                                     c/o SDS Realty
22820 East Appleway                                  202 East Trent, Suite 202
Liberty Lake, WA 99019                Lease          Spokane, WA 99202
</Table>

SCHEDULE 1 TO SECURITY AGREEMENT, Solo Page

<PAGE>
                                SCHEDULE 1.1(a)
                                       TO
                            SOFTWARE SPECTRUM, INC.
                                CREDIT AGREEMENT

                             Revolving Commitments

<Table>
<Caption>
                       Bank                        Revolving Commitment
                       ----                        --------------------
<S>                                                <C>
         a.  JPMorgan Chase Bank                      $25,000,000.00
         b.  Foothill Capital Corporation             $25,000,000.00
         c.  PNC Bank, National Association           $25,000,000.00
                                                      --------------
             Total                                    $75,000,000.00
</Table>

SCHEDULE 1.1(a) - Revolving Commitments, Solo Page

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