Document:

<PAGE>

                                                                   Exhibit 10.34

                               PLEDGE AGREEMENT
                               ----------------

     THIS PLEDGE AGREEMENT ("Agreement") is made effective as of the 29th day of
                             ---------
February, 2000, by RF MONOLITHICS, INC. (hereinafter called "Pledgor"), in favor
                                                             -------
of BANK ONE, TEXAS, NATIONAL ASSOCIATION, acting in its capacity as agent for
itself and Banc One Leasing Corporation ("Secured Party"). Pledgor hereby agrees
                                          -------------
with Secured Party as follows:

     1.   Definitions.  As used in this Agreement, the following terms shall
          -----------
have the meanings indicated below:

          (a)  The term "Additional Property" shall mean as specified in
                         -------------------
     paragraph 3 of this Agreement.

          (a)  The term "Bank" shall mean Bank One, Texas, National Association,
                         ----
     acting in its individual capacity, its successors and assigns, including,
     without limitation, any party to whom Bank, or its successors and assigns
     may assign its rights and interests under this Agreement or the Loan
     Documents.

          (b)  The term "BOLC" shall mean Banc One Leasing Corporation and its
                         ----
     successors and assigns.

          (c)  The term "Code" shall mean the Uniform Commercial Code as in
                         ----
     effect in the State of Texas on the date of this Agreement or as it may
     hereafter be amended from time to time.

          (d)  The term "Collateral" shall mean all property specifically
                         ----------
     described on Schedule A attached hereto and made a part hereof. The term
                  ----------
     Collateral, as used herein, shall also include (i) all certificates,
     instruments, and/or other documents evidencing the foregoing, (ii) all
     renewals, replacements, and substitutions of all of the foregoing, (iii)
     all Additional Property, and (iv) all PRODUCTS and PROCEEDS of all of the
     foregoing. The designation of proceeds does not authorize Pledgor to sell,
     transfer, or otherwise convey any of the foregoing property. The delivery
     at any time by Pledgor to Secured Party of any property as a pledge to
     secure payment or performance of any indebtedness or obligation whatsoever
     shall also constitute a pledge of such property as Collateral hereunder.

          (e)  The term "Creditor" shall mean each of Bank and BOLC, and their
                         --------
     respective successors and assigns, and "Creditors" means all of such
                                             ---------
     entities, collectively.

          (f)  The term "Event of Default" shall mean as specified in paragraph
                         ----------------                             ---------
     10 of this Agreement.
     --
          (f)  The term "Indebtedness" shall mean (i) all indebtedness,
                         ------------
     obligations, and liabilities of Pledgor to the Creditors (including,
     without limitation, all indebtedness, liabilities, and obligations of
     Pledgor to Bank pursuant to the Loan Documents and of

PLEDGE AGREEMENT - Page 1
<PAGE>

     Pledgor to BOLC pursuant to the Master Lease) of any kind or character, now
     existing or hereafter arising, whether direct, indirect, related,
     unrelated, fixed, contingent, liquidated, unliquidated, joint, several, or
     joint and several, and regardless of whether such indebtedness,
     liabilities, and obligations may, prior to their acquisition by the
     Creditors, be or have been payable to or in favor of a third party and
     subsequently acquired by the Creditors (it being contemplated that the
     Creditors may make such acquisitions from third parties), including,
     without limitation, all indebtedness, liabilities, and obligations of
     Pledgor to any Creditor now existing or hereafter arising by note, draft,
     acceptance, guaranty, endorsement, letter of credit, assignment, purchase,
     overdraft, discount, indemnity agreement or otherwise, (ii) all accrued but
     unpaid interest on any of the indebtedness, liabilities, and obligations
     described in clause (i) preceding, (iii) all indebtedness, liabilities, and
                  ----------
     obligations described in clauses (i) and (ii) preceding, (iv) all costs and
                              -----------     ----
     expenses incurred by Secured Party in connection with the collection and
     administration of all or any part of the indebtedness, liabilities, and
     obligations described in clauses (i), (ii), and (iii) preceding or the
                              -----------  ----      -----
     protection or preservation of, or realization upon, the collateral securing
     all or any part of such indebtedness, liabilities, and obligations,
     including, without limitation, all reasonable attorneys' fees, and (v) all
     renewals, extensions, modifications, and rearrangements of the
     indebtedness, liabilities, and obligations described in clauses (i), (ii),
                                                             -----------  ----
     (iii), and (iv) preceding.
     -----      ----

          (g)  The term "Loan Documents" shall mean the certain Letter Loan
                         --------------
     Agreement dated as of March 8, 1996, as such agreement may be amended,
     restated, or otherwise modified, between Pledgor and Bank (the "Loan
                                                                     ----
     Agreement") and all instruments and documents evidencing, securing,
     ---------
     governing, guaranteeing and/or pertaining to the Indebtedness.

          (h)  The Term "Master Lease" shall mean that certain Master Lease
                         ------------
     Agreement, dated as of November 3, 1995, between Pledgor, as "Lessee," and
     BOLC, as "Lessor," including, without limitation, all "Schedules" (as
     defined therein) and amendments thereto, as such agreement may be amended,
     restated, or otherwise modified from time to time.

          (i)  The term "Obligated Party" shall mean any party other than
                         ---------------
     Pledgor who secures, guarantees, and/or is otherwise obligated to pay all
     or any portion of the Indebtedness.

All words and phrases used herein which are expressly defined in Section 1.201
or in Chapter 8 or Chapter 9 of the Code shall have the meaning provided for
therein. Other words and phrases defined elsewhere in the Code shall have the
meaning specified therein except to the extent such meaning is inconsistent with
a definition in Section 1.201 or in Chapter 8 or Chapter 9 of the Code.

     2.   Security Interest. As security for the Indebtedness, Pledgor, for
          -----------------
value received, hereby grants to Secured Party, for the benefit of the
Creditors, a continuing security interest in the Collateral.

     3.   Additional Property.  Collateral shall also include the following
          -------------------
property (collectively, the "Additional Property") which Pledgor becomes
entitled to receive or shall receive in connection

PLEDGE AGREEMENT - Page 2
<PAGE>

with any other Collateral: (a) any stock certificate, including, without
limitation, any certificate representing a stock dividend or any certificate in
connection with any recapitalization, reclassification, merger, consolidation,
conversion, sale of assets, combination of shares, stock split, or spin-off; (b)
any option, warrant, subscription, or right, whether as an addition to or in
substitution of any other Collateral; (c) any dividends or distributions of any
kind whatsoever, whether distributable in cash, stock, or other property; (d)
any interest, premium, or principal payments; and (e) any conversion or
redemption proceeds; provided, however, that until the occurrence of an Event of
Default, Pledgor shall be entitled to all cash dividends and all interest paid
on the Collateral (except interest paid on any certificate of deposit pledged
hereunder) free of the security interest created under this Agreement. All
Additional Property received by Pledgor shall be received in trust for the
benefit of Secured Party. All Additional Property and all certificates or other
written instruments or documents evidencing and/or representing the Additional
Property that is received by Pledgor, together with such instruments of transfer
as Secured Party may request, shall immediately be delivered to or deposited
with Secured Party and held by Secured Party as Collateral under the terms of
this Agreement. If the Additional Property received by Pledgor shall be shares
of stock or other securities, such shares of stock or other securities shall be
duly endorsed in blank or accompanied by proper instruments of transfer and
assignment duly executed in blank with, if requested by Secured Party,
signatures guaranteed by a member or member organization in good standing of an
authorized Securities Transfer Agents Medallion Program, all in form and
substance satisfactory to Secured Party. Secured Party shall be deemed to have
possession of any Collateral in transit to Secured Party or its agent.

     4.   Voting Rights. As long as no Event of Default shall have occurred
          -------------
hereunder, any voting rights incident to any stock or other securities pledged
as Collateral may be exercised by Pledgor; provided, however, that Pledgor will
not exercise, or cause to be exercised, any such voting rights, without the
prior written consent of Secured Party, if the direct or indirect effect of such
vote will result in an Event of Default hereunder.

     5.   Maintenance of Collateral. Other than the exercise of reasonable care
          -------------------------
to assure the safe custody of any Collateral in Secured Party's possession from
time to time, Secured Party does not have any obligation, duty, or
responsibility with respect to the Collateral. Without limiting the generality
of the foregoing, Secured Party shall not have any obligation, duty or
responsibility to do any of the following: (a) ascertain any maturities, calls,
conversions, exchanges, offers, tenders, or similar matters relating to the
Collateral or informing Pledgor with respect to any such matters; (b) fix,
preserve, or exercise any right, privilege, or option (whether conversion,
redemption, or otherwise) with respect to the Collateral unless (i) Pledgor
makes written demand to Secured Party to do so, (ii) such written demand is
received by Secured Party in sufficient time to permit Secured Party to take the
action demanded in the ordinary course of its business, and (iii) Pledgor
provides additional collateral, acceptable to Secured Party in its sole
discretion; (c) collect any amounts payable in respect of the Collateral
(Secured Party being liable to account to Pledgor only for what Secured Party
may actually receive or collect thereon); (d) sell all or any portion of the
Collateral to avoid market loss; (e) sell all or any portion of the Collateral
unless and until (i) Pledgor makes written demand upon Secured Party to sell the
Collateral, and (ii) Pledgor provides additional collateral, acceptable to
Secured Party in its sole discretion; or (f) hold the Collateral for or on
behalf of any party other than Pledgor.

PLEDGE AGREEMENT - Page 3
<PAGE>

     6.   Representations and Warranties. Pledgor hereby represents and warrants
          ------------------------------
the following to Secured Party:

          (a)  Due Authorization. The execution, delivery, and performance of
               -----------------
     this Agreement and all of the other Loan Documents and the Master Lease by
     Pledgor have been duly authorized by all necessary corporate action of
     Pledgor.

          (b)  Enforceability. This Agreement and the other Loan Documents
               --------------
     constitute legal, valid, and binding obligations of Pledgor, enforceable in
     accordance with their respective terms, except as limited by bankruptcy,
     insolvency, or similar laws of general application relating to the
     enforcement of creditors' rights and except to the extent specific remedies
     may generally be limited by equitable principles.

          (c)  Ownership and Liens. Pledgor has good and marketable title to the
               -------------------
     Collateral free and clear of all liens, security interests, encumbrances,
     or adverse claims, except for the security interest created by this
     Agreement. No dispute, right of set-off, counterclaim, or defense exists
     with respect to all or any part of the Collateral. Pledgor has not executed
     any other security agreement currently affecting the Collateral and no
     financing statement or other instrument similar in effect covering all or
     any part of the Collateral is on file in any recording office except as may
     have been executed or filed in favor of Secured Party.

          (d)  No Conflicts or Consents. Neither the ownership, the intended use
               ------------------------
     of the Collateral by Pledgor, the grant of the security interest by Pledgor
     to Secured Party herein, nor the exercise by Secured Party of its rights or
     remedies hereunder, will (i) conflict with any provision of (A) any
     domestic or foreign law, statute, rule, or regulation, (B) the articles of
     incorporation or bylaws of Pledgor, or (C) any agreement, judgment,
     license, order, or permit applicable to or binding upon Pledgor or
     otherwise affecting the Collateral, or (ii) result in or require the
     creation of any lien, charge, or encumbrance upon any assets or properties
     of Pledgor or of any person except as may be expressly contemplated in the
     Loan Documents and the Master Lease. Except as expressly contemplated in
     the Loan Documents and the Master Lease, no consent, approval,
     authorization, or order of, and no notice to or filing with, any court,
     governmental authority, or third party is required in connection with the
     grant by Pledgor of the security interest herein or the exercise by Secured
     Party of its rights and remedies hereunder.

          (e)  Security Interest. Pledgor has and will have at all times full
               -----------------
     right, power, and authority to grant a security interest in the Collateral
     to Secured Party in the manner provided herein, free and clear of any lien,
     security interest, or other charge or encumbrance. This Agreement creates a
     legal, valid, and binding security interest in favor of Secured Party in
     the Collateral.

          (f)  Location. Pledgor's chief executive office and the office where
               --------
     the records concerning the Collateral are kept is located at its address
     set forth on the signature page hereof.

PLEDGE AGREEMENT - Page 4
<PAGE>

          (g)  Solvency of Pledgor. As of the date hereof, and after giving
               -------------------
     effect to this Agreement and the completion of all other transactions
     contemplated by Pledgor at the time of the execution of this Agreement, (i)
     Pledgor is and will be solvent, (ii) the fair saleable value of Pledgor's
     assets exceeds and will continue to exceed Pledgor's liabilities (both
     fixed and contingent), (iii) Pledgor is paying and will continue to be able
     to pay its debts as they mature, and (iv) Pledgor has and will have
     sufficient capital to carry on Pledgor's businesses and all businesses in
     which Pledgor is about to engage.

          (h)  Securities. Any certificates evidencing securities pledged as
               ----------
     Collateral are valid and genuine and have not been altered. All securities
     pledged as Collateral have been duly authorized and validly issued, are
     fully paid and non-assessable, and were not issued in violation of the
     preemptive rights of any party or of any agreement by which Pledgor or the
     issuer thereof is bound. No restrictions or conditions exist with respect
     to the transfer or voting of any securities pledged as Collateral, except
     as has been disclosed to Secured Party in writing. To the best of Pledgor's
     knowledge, no issuer of such securities (other than securities of a class
     which are publicly traded) has any outstanding stock rights, rights to
     subscribe, options, warrants, or convertible securities outstanding or any
     other rights outstanding entitling any party to have issued to such party
     capital stock of such issuer, except as has been disclosed to Secured Party
     in writing.

     7.   Affirmative Covenants. Pledgor will comply with the covenants
          ---------------------
contained in this paragraph 7 at all times during the period of time this
                  -----------
Agreement is effective unless Secured Party shall otherwise consent in writing.

          (a)  Ownership and Liens. Pledgor will maintain good and marketable
               -------------------
     title to all Collateral free and clear of all liens, security interests,
     encumbrances, or adverse claims, except for the security interest created
     by this Agreement and the security interests and other encumbrances
     expressly permitted by the other Loan Documents and the Master Lease.
     Pledgor will not permit any dispute, right of set-off, counterclaim, or
     defense to exist with respect to all or any part of the Collateral. Pledgor
     will cause any financing statement or other security instrument with
     respect to the Collateral to be terminated, except as may exist or as may
     have been filed in favor of Secured Party. Pledgor will defend at its
     expense Secured Party's right, title, and security interest in and to the
     Collateral against the claims of any third party.

          (b)  Inspection of Books and Records. Pledgor will keep adequate
               -------------------------------
     records concerning the Collateral and will permit Secured Party and all
     representatives and agents appointed by Secured Party to inspect Pledgor's
     books and records of or relating to the Collateral at any time during
     normal business hours, to make and take away photocopies, photographs and
     printouts thereof and to write down and record any such information.

          (c)  Adverse Claim. Pledgor covenants and agrees to promptly notify
               -------------
     Secured Party of any claim, action, or proceeding affecting title to the
     Collateral, or any part thereof, or the security interest created hereunder
     and, at Pledgor's expense, defend Secured Party's security interest in the
     Collateral against the claims of any third party. Pledgor also

PLEDGE AGREEMENT - Page 5
<PAGE>

     covenants and agrees to promptly deliver to Secured Party a copy of all
     written notices received by Pledgor with respect to the Collateral,
     including, without limitation, notices received from the issuer of any
     securities pledged hereunder as Collateral.

          (d)  Delivery of Instruments and/or Certificates. Contemporaneously
               -------------------------------------------
     herewith, Pledgor covenants and agrees to deliver to Secured Party any
     certificates, documents, or instruments representing or evidencing the
     Collateral, with Pledgor's endorsement thereon and/or accompanied by proper
     instruments of transfer and assignment duly executed in blank with, if
     requested by Secured Party, signatures guaranteed by a member or member
     organization in good standing of an authorized Securities Transfer Agents
     Medallion Program, all in form and substance satisfactory to Secured Party.

          (e)  Further Assurances. Pledgor will contemporaneously with the
               ------------------
     execution hereof and from time to time thereafter at its expense promptly
     execute and deliver all further instruments and documents and take all
     further action necessary or appropriate or that Secured Party may request
     in order (i) to perfect and protect the security interest created or
     purported to be created hereby and the first priority of such security
     interest, (ii) to enable Secured Party to exercise and enforce its rights
     and remedies hereunder in respect of the Collateral, and (iii) to otherwise
     effect the purposes of this Agreement, including, without limitation: (A)
     executing and filing any financing or continuation statements, or any
     amendments thereto; (B) obtaining written confirmation from the issuer of
     any securities pledged as Collateral of the pledge of such securities, in
     form and substance satisfactory to Secured Party; (C) cooperating with
     Secured Party in registering the pledge of any securities pledged as
     Collateral with the issuer of such securities; (D) delivering notice of
     Secured Party's security interest in any securities pledged as Collateral
     to any securities or financial intermediary, clearing corporation, or other
     party required by Secured Party, in form and substance satisfactory to
     Secured Party; and (E) obtaining written confirmation of the pledge of any
     securities constituting Collateral from any securities or financial
     intermediary, clearing corporation, or other party required by Secured
     Party, in form and substance satisfactory to Secured Party. If all or any
     part of the Collateral is securities issued by an agency or department of
     the United States, Pledgor covenants and agrees, at Secured Party's
     request, to cooperate in registering such securities in Secured Party's
     name or with Secured Party's account maintained with a Federal Reserve
     Bank. When applicable law provides more than one method of perfection of
     Secured Party's security interest in the Collateral, Secured Party may
     choose the method(s) to be used.

     8.   Negative Covenants. Pledgor will comply with the covenants contained
          ------------------
in this Section at all times during the period of time this Agreement is
effective, unless Secured Party shall otherwise consent in writing.

          (a)  Transfer or Encumbrance. Pledgor will not (i) sell, assign (by
               -----------------------
     operation of law or otherwise), or transfer Pledgor's rights in any of the
     Collateral, (ii) grant a lien or security interest in or execute, file, or
     record any financing statement or other security instrument with respect to
     the Collateral to any party other than Secured Party, or (iii) deliver

PLEDGE AGREEMENT - Page 6
<PAGE>

     actual or constructive possession of any certificate, instrument, or
     document evidencing and/or representing any of the Collateral to any party
     other than Secured Party.

          (b)  Impairment of Security Interest. Pledgor will not take or fail to
               -------------------------------
     take any action which would in any manner impair the value or
     enforceability of Secured Party's security interest in any Collateral.

          (c)  Dilution of Ownership. As to any securities pledged as Collateral
               ---------------------
     (other than securities of a class which are publicly traded), Pledgor will
     not consent to or approve of the issuance of (i) any additional shares of
     any class of securities of such issuer (unless immediately upon issuance
     additional securities are pledged and delivered to Secured Party pursuant
     to the terms hereof to the extent necessary to give Secured Party a
     security interest after such issuance in at least the same percentage of
     such issuer's outstanding securities as Secured Party had before such
     issuance), (ii) any instrument convertible voluntarily by the holder
     thereof or automatically upon the occurrence or non-occurrence of any event
     or condition into, or exchangeable for, any such securities, or (iii) any
     warrants, options, contracts, or other commitments entitling any third
     party to purchase or otherwise acquire any such securities.

          (d)  Restrictions on Securities. Pledgor will not enter into any
               --------------------------
     agreement creating, or otherwise permit to exist, any restriction or
     condition upon the transfer, voting, or control of any securities pledged
     as Collateral, except as consented to in writing by Secured Party.

     9.   Rights of Secured Party. Secured Party shall have the rights contained
          -----------------------
in this paragraph 9 at all times during the period of time this Agreement is
        -----------
effective.

          (a)  Power of Attorney. Pledgor hereby irrevocably appoints Secured
               -----------------
     Party as Pledgor's attorney-in-fact, such power of attorney being coupled
     with an interest, with full authority in the place and stead of Pledgor and
     in the name of Pledgor or otherwise, to take any action and to execute any
     instrument which Secured Party may from time to time in Secured Party's
     discretion deem necessary or appropriate to accomplish the purposes of this
     Agreement, including, without limitation, the following action: (i)
     transfer any securities, instruments, documents, or certificates pledged as
     Collateral in the name of Secured Party or its nominee; (ii) use any
     interest, premium, or principal payments, conversion or redemption proceeds
     or other cash proceeds received in connection with any Collateral to reduce
     any of the Indebtedness; (iii) exchange any of the securities pledged as
     Collateral for any other property upon any merger, consolidation,
     reorganization, recapitalization or other readjustment of the issuer
     thereof, and, in connection therewith, to deposit and deliver any and all
     of such securities with any committee, depository, transfer agent,
     registrar, or other designated agent upon such terms and conditions as
     Secured Party may deem necessary or appropriate; (iv) exercise or comply
     with any conversion, exchange, redemption, subscription, or any other
     right, privilege, or option pertaining to any securities pledged as
     Collateral; provided, however, except as provided herein, Secured Party
                 --------  -------
     shall not have a duty to exercise or comply with any such right, privilege,
     or option (whether conversion, redemption, or otherwise) and shall not be
     responsible for any delay or failure to do so; and

PLEDGE AGREEMENT - Page 7
<PAGE>

     (v)  file any claims or take any action or institute any proceedings which
     Secured Party may deem necessary or appropriate for the collection and/or
     preservation of the Collateral or otherwise to enforce the rights of
     Secured Party with respect to the Collateral.

          (b)  Performance by Secured Party. If Pledgor fails to perform any
               ----------------------------
     agreement or obligation provided herein, Secured Party may itself perform,
     or cause performance of, such agreement or obligation, and the expenses of
     Secured Party incurred in connection therewith shall be a part of the
     Indebtedness, secured by the Collateral and payable by Pledgor on demand.

Notwithstanding any other provision herein to the contrary, Secured Party does
not have any duty to exercise or continue to exercise any of the foregoing
rights and shall not be responsible for any failure to do so or for any delay in
doing so.

     10.  Events of Default. Each of the following constitutes an "Event of
          -----------------
Default" under this Agreement:

          (a)  Failure to Pay Indebtedness. The failure of Pledgor to make any
               ---------------------------
     payment of principal or interest on the Indebtedness, or any portion
     thereof, as the same shall become due and payable and the continuation of
     such failure for a period of five (5) days;

          (b)  Non-Performance of Covenants. The failure of Pledgor or any
               ----------------------------
     Obligated Party to timely and properly observe, keep, or perform any
     covenant, agreement, warranty, or condition required herein, in any of the
     other Loan Documents, or in the Master Lease;

          (c)  Default Under Loan Documents and Master Lease. The occurrence of
               ---------------------------------------------
     an event of default under any of the other Loan Documents or the Master
     Lease;

          (d)  False Representation. Any representation contained herein, in any
               --------------------
     of the other Loan Documents, or in the Master Lease made by Pledgor or any
     Obligated Party is false or misleading in any material respect;

          (e)  Default to Third Party. The occurrence of any event which permits
               ----------------------
     the acceleration of the maturity of any indebtedness owing by Pledgor or
     any Obligated Party to any third party under any agreement or undertaking;

          (f)  Bankruptcy or Insolvency. If Pledgor or any Obligated Party: (i)
               ------------------------
     becomes insolvent, or makes a transfer in fraud of creditors, or makes an
     assignment for the benefit of creditors, or admits in writing its inability
     to pay its debts as they become due; (ii) generally is not paying its debts
     as such debts become due; (iii) has a receiver, trustee, or custodian
     appointed for, or take possession of, all or substantially all of the
     assets of such party or any of the Collateral, either in a proceeding
     brought by such party or in a proceeding brought against such party and
     such appointment is not discharged or such possession is not terminated
     within sixty (60) days after the effective date thereof or such party
     consents to or acquiesces in such appointment or possession; (iv) files a
     petition for relief under the United

PLEDGE AGREEMENT - Page 8
<PAGE>

     States Bankruptcy Code or any other present or future federal or state
     insolvency, bankruptcy, or similar laws (all of the foregoing hereinafter
     collectively called "Applicable Bankruptcy Law") or an involuntary petition
                          -------------------------
     for relief is filed against such party under any Applicable Bankruptcy Law
     and such involuntary petition is not dismissed within sixty (60) days after
     the filing thereof, or an order for relief naming such party is entered
     under any Applicable Bankruptcy Law, or any composition, rearrangement,
     extension, reorganization, or other relief of debtors now or hereafter
     existing is requested or consented to by such party; (v) fails to have
     discharged within a period of sixty (60) days any attachment,
     sequestration, or similar writ levied upon any property of such party; or
     (vi) fails to pay within thirty (30) days any final money judgment against
     such party;

          (g)  Execution on Collateral. The Collateral or any portion thereof is
               -----------------------
     taken on execution or other process of law in any action against Pledgor;

          (h)  Abandonment. Pledgor abandons the Collateral or any portion
               -----------
     thereof;

          (i)  Action by Other Lienholder. The holder of any lien or security
               --------------------------
     interest on any of the assets of Pledgor, including, without limitation,
     the Collateral (without hereby implying the consent of Secured Party to the
     existence or creation of any such lien or security interest on the
     Collateral), declares a default thereunder or institutes foreclosure or
     other proceedings for the enforcement of its remedies thereunder;

          (j)  Liquidation, Death and Related Events. The liquidation,
               -------------------------------------
     dissolution, merger, or consolidation of Pledgor or any Obligated Party (if
     an entity) or the death or legal incapacity of any individual (if any
     Obligated Party is an individual);

          (k)  Bankruptcy of Issuer. (i) The issuer of any securities
               --------------------
     constituting Collateral files a petition for relief under any Applicable
     Bankruptcy Law, (ii) an involuntary petition for relief is filed against
     any such issuer under any Applicable Bankruptcy Law and such involuntary
     petition is not dismissed within thirty (30) days after the filing thereof,
     or (iii) an order for relief naming any such issuer is entered under any
     Applicable Bankruptcy Law.

     11.  Remedies and Related Rights. If an Event of Default shall have
          ---------------------------
occurred, and without limiting any other rights and remedies provided herein,
under any of the other Loan Documents or otherwise available to Secured Party,
Secured Party may exercise one or more of the rights and remedies provided in
this paragraph 11.

          (a)  Remedies. Secured Party may from time to time at its discretion,
               --------
     without limitation and without notice except as expressly provided in any
     of the Loan Documents:

               (i)  exercise in respect of the Collateral all the rights and
          remedies of a secured party under the Code (whether or not the Code
          applies to the affected Collateral);

PLEDGE AGREEMENT - Page 9
<PAGE>

               (ii)  reduce its claim to judgment or foreclose or otherwise
          enforce, in whole or in part, the security interest granted hereunder
          by any available judicial procedure;

               (iii) sell or otherwise dispose of, at its office, on the
          premises of Pledgor or elsewhere, the Collateral, as a unit or in
          parcels, by public or private proceedings, and by way of one or more
          contracts (it being agreed that the sale or other disposition of any
          part of the Collateral shall not exhaust Secured Party's power of
          sale, but sales or other dispositions may be made from time to time
          until all of the Collateral has been sold or disposed of or until the
          Indebtedness has been paid and performed in full), and at any such
          sale or other disposition it shall not be necessary to exhibit any of
          the Collateral;

               (iv)  buy the Collateral, or any portion thereof, at any public
          sale;

               (v)   buy the Collateral, or any portion thereof, at any private
          sale if the Collateral is of a type customarily sold in a recognized
          market or is of a type which is the subject of widely distributed
          standard price quotations;

               (vi)  apply for the appointment of a receiver for the Collateral,
          and Pledgor hereby consents to any such appointment; and

               (vii) at its option, retain the Collateral in satisfaction of the
          Indebtedness whenever the circumstances are such that Secured Party is
          entitled to do so under the Code or otherwise.

     Pledgor agrees that in the event Pledgor is entitled to receive any notice
     under the Uniform Commercial Code, as it exists in the state governing any
     such notice, of the sale or other disposition of any Collateral, reasonable
     notice shall be deemed given when such notice is deposited in a depository
     receptacle under the care and custody of the United States Postal Service,
     postage prepaid, at Pledgor's address set forth on the signature page
     hereof, five (5) days prior to the date of any public sale, or after which
     a private sale, of any of such Collateral is to be held. Secured Party
     shall not be obligated to make any sale of Collateral regardless of notice
     of sale having been given. Secured Party may adjourn any public or private
     sale from time to time by announcement at the time and place fixed
     therefor, and such sale may, without further notice, be made at the time
     and place to which it was so adjourned. Pledgor further acknowledges and
     agrees that the redemption by Secured Party of any certificate of deposit
     pledged as Collateral shall be deemed to be a commercially reasonable
     disposition under Section 9.504(c) of the Code.

          (b) Private Sale of Securities. Pledgor recognizes that Secured Party
              --------------------------
     may be unable to effect a public sale of all or any part of the securities
     pledged as Collateral because of restrictions in applicable federal and
     state securities laws and that Secured Party may, therefore, determine to
     make one or more private sales of any such securities to a restricted group
     of purchasers who will be obligated to agree, among other things, to
     acquire such

PLEDGE AGREEMENT - Page 10
<PAGE>

     securities for their own account, for investment and not with a view to the
     distribution or resale thereof. Pledgor acknowledges that each any such
     private sale may be at prices and other terms less favorable then what
     might have been obtained at a public sale and, notwithstanding the
     foregoing, agrees that each such private sale shall be deemed to have been
     made in a commercially reasonable manner and that Secured Party shall have
     no obligation to delay the sale of any such securities for the period of
     time necessary to permit the issuer to register such securities for public
     sale under any federal or state securities laws. Pledgor further
     acknowledges and agrees that any offer to sell such securities which has
     been made privately in the manner described above to not less than five (5)
     bona fide offerees shall be deemed to involve a "public sale" for the
     purposes of Section 9.504(c) of the Code, notwithstanding that such sale
     may not constitute a "public offering" under any federal or state
     securities laws and that Secured Party may, in such event, bid for the
     purchase of such securities.

          (c)  Application of Proceeds. If any Event of Default shall have
               -----------------------
     occurred, Secured Party may at its discretion apply or use any cash held by
     Secured Party as Collateral, and any cash proceeds received by Secured
     Party in respect of any sale or other disposition of, collection from, or
     other realization upon, all or any part of the Collateral as follows in
     such order and manner as Secured Party may elect:

               (i)     to the repayment or reimbursement of the reasonable costs
          and expenses (including, without limitation, reasonable attorneys'
          fees and expenses) incurred by Secured Party in connection with (A)
          the administration of the Loan Documents and the Master Lease, (B) the
          custody, preservation, use or operation of, or the sale of, collection
          from, or other realization upon, the Collateral, and (C) the exercise
          or enforcement of any of the rights and remedies of Secured Party
          hereunder;

               (ii)    to the payment or other satisfaction of any liens and
          other encumbrances upon the Collateral;

               (iii)   to the satisfaction of the Indebtedness;

               (iv)    by holding such cash and proceeds as Collateral;

               (v)     to the payment of any other amounts required by
          applicable law (including, without limitation, Section 9.504(a)(3) of
          the Code or any other applicable statutory provision); and

               (vi)    by delivery to Pledgor or any other party lawfully
          entitled to receive such cash or proceeds whether by direction of a
          court of competent jurisdiction or otherwise.

     Notwithstanding any other provision of this Agreement, unless Bank consents
     otherwise, in the event Secured Party applies the proceeds of any
     Collateral to payment of the

PLEDGE AGREEMENT - Page 11
<PAGE>

     Indebtedness, all of the Indebtedness owing to Bank shall be paid in full
     before any of such proceeds may be applied to any of the Indebtedness owing
     to BOLC.

          (d)  Deficiency. In the event that the proceeds of any sale of,
               ----------
     collection from, or other realization upon, all or any part of the
     Collateral by Secured Party are insufficient to pay all amounts to which
     Bank, BOLC, or Secured Party are legally entitled, Pledgor and any party
     who guaranteed or is otherwise obligated to pay all or any portion of the
     Indebtedness shall be liable for the deficiency, together with interest
     thereon as provided in the Loan Documents.

          (e)  Non-Judicial Remedies. In granting to Secured Party the power to
               ---------------------
     enforce its rights hereunder without prior judicial process or judicial
     hearing, Pledgor expressly waives, renounces, and knowingly relinquishes
     any legal right which might otherwise require Secured Party to enforce its
     rights by judicial process. Pledgor recognizes and concedes that non-
     judicial remedies are consistent with the usage of trade, are responsive to
     commercial necessity, and are the result of a bargain at arm's length.
     Nothing herein is intended to prevent Secured Party or Pledgor from
     resorting to judicial process at either party's option.

          (f)  Other Recourse. Pledgor waives any right to require Secured Party
               --------------
     to proceed against any third party, exhaust any Collateral or other
     security for the Indebtedness, or to have any third party joined with
     Pledgor in any suit arising out of the Indebtedness, any of the Loan
     Documents or the Master Lease, or pursue any other remedy available to
     Bank, BOLC, or Secured Party. Pledgor further waives any and all notice of
     acceptance of this Agreement and of the creation, modification,
     rearrangement, renewal, or extension of the Indebtedness. Pledgor further
     waives any defense arising by reason of any disability or other defense of
     any third party or by reason of the cessation from any cause whatsoever of
     the liability of any third party. Until all of the Indebtedness shall have
     been paid in full, Pledgor shall have no right of subrogation and Pledgor
     waives the right to enforce any remedy which Secured Party has or may
     hereafter have against any third party, and waives any benefit of and any
     right to participate in any other security whatsoever now or hereafter held
     by Secured Party. Pledgor authorizes Secured Party, and without notice or
     demand and without any reservation of rights against Pledgor and without
     affecting Pledgor's liability hereunder or on the Indebtedness, to (i) take
     or hold any other property of any type from any third party as security for
     the Indebtedness, and exchange, enforce, waive, and release any or all of
     such other property, (ii) apply such other property and direct the order or
     manner of sale thereof as Secured Party may in its discretion determine,
     (iii) renew, extend, accelerate, modify, compromise, settle, or release any
     of the Indebtedness or other security for the Indebtedness, (iv) waive,
     enforce, or modify any of the provisions of any of the Loan Documents or
     the Master Lease executed by any third party, and (v) release or substitute
     any third party.

          (g)  Voting Rights. Upon the occurrence of an Event of Default,
     Pledgor will not exercise any voting rights with respect to securities
     pledged as Collateral. Pledgor hereby irrevocably appoints Secured Party as
     Pledgor's attorney-in-fact (such power of attorney being coupled with an
     interest) and proxy to exercise any voting rights with respect to Pledgor's
     securities pledged as Collateral upon the occurrence of an Event of
     Default.

PLEDGE AGREEMENT - Page 12
<PAGE>

          (h)  Dividend Rights and Interest Payments. Upon the occurrence of an
               -------------------------------------
     Event of Default:

               (i) all rights of Pledgor to receive and retain the dividends and
          interest payments which it would otherwise be authorized to receive
          and retain pursuant to paragraph 3 shall automatically cease, and all
                                 -----------
          such rights shall thereupon become vested with Secured Party which
          shall thereafter have the sole right to receive, hold, and apply as
          Collateral such dividends and interest payments; and

               (ii) all dividend and interest payments which are received by
          Pledgor contrary to the provisions of clause (i) of this paragraph
                                                ----------         ---------
          11(h) shall be received in trust for the benefit of Secured Party,
          -----
          shall be segregated from other funds of Pledgor, and shall be
          forthwith paid over to Secured Party in the exact form received
          (properly endorsed or assigned if requested by Secured Party), to be
          held by Secured Party as Collateral.

     12.  Indemnity. Pledgor hereby indemnifies and agrees to hold harmless
          ---------
Secured Party, and its officers, directors, employees, agents, and
representatives (each an "Indemnified Person") from and against any and all
liabilities, obligations, claims, losses, damages, penalties, actions,
judgments, suits, costs, expenses, or disbursements of any kind or nature
(collectively, the "Claims") which may be imposed on, incurred by, or asserted
against, any Indemnified Person arising in connection with the Loan Documents,
the Master Lease, the Indebtedness, or the Collateral (including, without
limitation, the enforcement of the Loan Documents and the Master Lease and the
defense of any Indemnified Person's actions and/or inactions in connection with
the Loan Documents and the Master Lease). WITHOUT LIMITATION, THE FOREGOING
INDEMNITIES SHALL APPLY TO EACH INDEMNIFIED PERSON WITH RESPECT TO ANY CLAIMS
WHICH IN WHOLE OR IN PART ARE CAUSED BY OR ARISE OUT OF THE NEGLIGENCE OF SUCH
AND/OR ANY OTHER INDEMNIFIED PERSON, EXCEPT TO THE LIMITED EXTENT THE CLAIMS
AGAINST AN INDEMNIFIED PERSON ARE PROXIMATELY CAUSED BY SUCH INDEMNIFIED
PERSON'S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. If Pledgor or any third party
ever alleges such gross negligence or willful misconduct by any Indemnified
Person, the indemnification provided for in this paragraph 12 shall nonetheless
be paid upon demand, subject to later adjustment or reimbursement, until such
time as a court of competent jurisdiction enters a final judgment as to the
extent and effect of the alleged gross negligence or willful misconduct. The
indemnification provided for in this paragraph 12 shall survive the termination
of this Agreement and shall extend and continue to benefit each individual or
entity who is or has at any time been an Indemnified Person hereunder.

     13.  Miscellaneous.
          -------------

          (a)  Entire Agreement. This Agreement contains the entire agreement of
               ----------------
     Secured Party and Pledgor with respect to the Collateral. If the parties
     hereto are parties to any prior agreement, either written or oral, relating
     to the Collateral, the terms of this Agreement shall amend and supersede
     the terms of such prior agreements as to transactions on or after the
     effective date of this Agreement, but all security agreements, financing
     statements,

PLEDGE AGREEMENT - Page 13
<PAGE>

     guaranties, other contracts, and notices for the benefit of Secured Party
     shall continue in full force and effect to secure the Indebtedness unless
     Secured Party specifically releases its rights thereunder by separate
     release.

          (b)  Amendment. No modification, consent, or amendment of any
               ---------
     provision of this Agreement or any of the other Loan Documents or the
     Master Lease shall be valid or effective unless the same is in writing and
     signed by the party against whom it is sought to be enforced.

          (c)  Actions by Secured Party. The lien, security interest, and other
               ------------------------
     security rights of Secured Party hereunder shall not be impaired by (i) any
     renewal, extension, increase, or modification with respect to the
     Indebtedness, (ii) any surrender, compromise, release, renewal, extension,
     exchange, or substitution which Secured Party may grant with respect to the
     Collateral, or (iii) any release or indulgence granted to any endorser,
     guarantor, or surety of the Indebtedness. The taking of additional security
     by Secured Party shall not release or impair the lien, security interest,
     or other security rights of Secured Party hereunder or affect the
     obligations of Pledgor hereunder.

          (d)  Waiver by Secured Party. Secured Party may waive any Event of
               -----------------------
     Default without waiving any other prior or subsequent Event of Default.
     Secured Party may remedy any default without waiving the Event of Default
     remedied. Neither the failure by Secured Party to exercise, nor the delay
     by Secured Party in exercising, any right or remedy upon any Event of
     Default shall be construed as a waiver of such Event of Default or as a
     waiver of the right to exercise any such right or remedy at a later date.
     No single or partial exercise by Secured Party of any right or remedy
     hereunder shall exhaust the same or shall preclude any other or further
     exercise thereof, and every such right or remedy hereunder may be exercised
     at any time. No waiver of any provision hereof or consent to any departure
     by Pledgor therefrom shall be effective unless the same shall be in writing
     and signed by Secured Party and then such waiver or consent shall be
     effective only in the specific instances, for the purpose for which given
     and to the extent therein specified. No notice to or demand on Pledgor in
     any case shall of itself entitle Pledgor to any other or further notice or
     demand in similar or other circumstances.

          (e)  Costs and Expenses. Pledgor will upon demand pay to Bank, BOLC,
               ------------------
     and Secured Party, as applicable, the amount of any and all costs and
     expenses (including, without limitation, attorneys' fees and expenses),
     which Secured Party may incur in connection with (i) the transactions which
     give rise to the Loan Documents and the Master Lease, (ii) the preparation
     of this Agreement and the perfection and preservation of the security
     interests granted under the Loan Documents, (iii) the administration of the
     Loan Documents and the Master Lease, (iv) the custody, preservation, use or
     operation of, or the sale of, collection from, or other realization upon,
     the Collateral, (v) the exercise or enforcement of any of the rights of
     Bank, BOLC, or Secured Party under the Loan Documents or the Master Lease,
     as applicable, or (vi) the failure by Pledgor to perform or observe any of
     the provisions hereof.

PLEDGE AGREEMENT - Page 14
<PAGE>

          (f)  Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED
               -------------
     IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS AND APPLICABLE FEDERAL
     LAWS, EXCEPT TO THE EXTENT PERFECTION AND THE EFFECT OF PERFECTION OR NON-
     PERFECTION OF THE SECURITY INTEREST GRANTED HEREUNDER, IN RESPECT OF ANY
     PARTICULAR COLLATERAL, ARE GOVERNED BY THE LAWS OF A JURISDICTION OTHER
     THAN THE STATE OF TEXAS.

          (g)  Venue. This Agreement has been entered into in the county in
               -----
     Texas where Bank's address for notice purposes is located, and it shall be
     performable for all purposes in such county. Courts within the State of
     Texas shall have jurisdiction over any and all disputes arising under or
     pertaining to this Agreement and venue for any such disputes shall be in
     the county or judicial district where this Agreement has been executed and
     delivered.

          (h)  Severability. If any provision of this Agreement is held by a
               ------------
     court of competent jurisdiction to be illegal, invalid, or unenforceable
     under present or future laws, such provision shall be fully severable,
     shall not impair or invalidate the remainder of this Agreement, and the
     effect thereof shall be confined to the provision held to be illegal,
     invalid, or unenforceable.

          (i)  No Obligation.  Nothing contained herein shall be construed as an
     obligation on the part of Bank, BOLC, or Secured Party to extend or
     continue to extend credit to Pledgor.

          (j)  Notices. All notices, requests, demands, or other communications
     required or permitted to be given pursuant to this Agreement shall be in
     writing and given by (i) personal delivery, (ii) expedited delivery service
     with proof of delivery, or (iii) United States mail, postage prepaid,
     registered or certified mail, return receipt requested, sent to the
     intended addressee at the address set forth on the signature page hereof or
     to such different address as the addressee shall have designated by written
     notice sent pursuant to the terms hereof and shall be deemed to have been
     received either, in the case of personal delivery, at the time of personal
     delivery, in the case of expedited delivery service, as of the date of
     first attempted delivery at the address and in the manner provided herein,
     or in the case of mail, upon deposit in a depository receptacle under the
     care and custody of the United States Postal Service. Either party shall
     have the right to change its address for notice hereunder to any other
     location within the continental United States by notice to the other party
     of such new address at least thirty (30) days prior to the effective date
     of such new address.

          (k)  Binding Effect and Assignment. This Agreement (i) creates a
               -----------------------------
     continuing security interest in the Collateral, (ii) shall be binding on
     Pledgor and the administrators, personal representatives, successors, and
     assigns of Pledgor, and (iii) shall inure to the benefit of Bank, BOLC, and
     Secured Party and their respective successors and assigns. Without limiting
     the generality of the foregoing, each of Bank and BOLC may pledge, assign,
     or otherwise transfer the Indebtedness and their respective rights under
     this Agreement and any of the other Loan Documents or the Master Lease to
     any other party.

PLEDGE AGREEMENT - Page 15
<PAGE>

     Pledgor's rights and obligations hereunder may not be assigned or otherwise
     transferred without the prior written consent of Secured Party.

          (l)  Termination. It is contemplated by the parties hereto that from
               -----------
     time to time there may be no outstanding Indebtedness, but notwithstanding
     such occurrences, this Agreement shall remain valid and shall be in full
     force and effect as to subsequent outstanding Indebtedness. Upon (i) the
     satisfaction in full of the Indebtedness, (ii) the termination or
     expiration of any commitment of Bank or BOLC to extend credit to Pledgor,
     (iii) written request for the termination hereof delivered by Pledgor to
     Secured Party, and (iv) written release delivered by Secured Party to
     Pledgor, this Agreement and the security interests created hereby shall
     terminate. Upon termination of this Agreement and Pledgor's written
     request, Secured Party will, at Pledgor's sole cost and expense, return to
     Pledgor such of the Collateral as shall not have been sold or otherwise
     disposed of or applied pursuant to the terms hereof and execute and deliver
     to Pledgor such documents as Pledgor shall reasonably request to evidence
     such termination .

          (m)  Cumulative Rights. All rights and remedies of Bank, BOLC, and
               -----------------
     Secured Party hereunder are cumulative of each other and of every other
     right or remedy which Bank, BOLC, and Secured Party may otherwise have at
     law or in equity or under any of the other Loan Documents and the Master
     Lease, and the exercise of one or more of such rights or remedies shall not
     prejudice or impair the concurrent or subsequent exercise of any other
     rights or remedies.

          (n)  Gender and Number. Within this Agreement, words of any gender
               -----------------
     shall be held and construed to include the other gender, and words in the
     singular number shall be held and construed to include the plural and words
     in the plural number shall be held and construed to include the singular,
     unless in each instance the context requires otherwise.

          (o)  Descriptive  Headings. The headings in this Agreement are for
               ---------------------
     convenience only and shall in no way enlarge, limit, or define the scope or
     meaning of the various and several provisions hereof.

                 [Remainder of page intentionally left blank]

PLEDGE AGREEMENT - Page 16
<PAGE>

          EXECUTED as of the date first written above.

                                      PLEDGOR:
                                      -------

                                      RF MONOLITHICS, INC.

                                      By:________________________________
                                      Name:______________________________
                                      Title:_____________________________

                                      Pledgor's Address:

                                      4441 Sigma Road Dallas,
                                      Texas 75244

Secured Party's Address:

Bank One, Texas, National Association
1717 Main Street, 3rd Floor
Dallas, Texas 75201
Attention: Julie Smith

PLEDGE AGREEMENT - Page 17
<PAGE>

                                  SCHEDULE A
                                      TO
                  PLEDGE AGREEMENT DATED FEBRUARY 29, 2000 BY
                                  AND BETWEEN
                     BANK ONE, TEXAS, NATIONAL ASSOCIATION
                                      AND
                             RF MONOLITHICS, INC.

The following property is a part of the Collateral as defined in paragraph 1(d):

        Account No. 60Y519683 in the name of "Bank One Texas Collateral Loan
        Account FBO RF Monolithics, Inc." and maintained with Banc One
        Securities Corporation, and all securities, cash, and all other property
        contained from time to time in such Account.<PAGE>

                                                                    EXHIBIT 10.1

                          SECOND AMENDMENT TO AMENDED
                         AND RESTATED CREDIT AGREEMENT
                         -----------------------------

     This SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this
"Amendment"), dated as of July 12, 2000, is among CELLSTAR CORPORATION, a
 ---------
Delaware corporation (the "Borrower"), each of the banks or other lending
                           --------
institutions which is or may from time to time become a signatory to the
Agreement (hereinafter defined) or any successor or permitted assignee thereof
(each a "Bank" and collectively, the "Banks"), BANK ONE, NA (formerly known as
         ----                         -----
The First National Bank of Chicago), as syndication agent (the "Syndication
                                                                -----------
Agent"), NATIONAL CITY BANK, as documentation agent (the "Documentation Agent"),
-----                                                     -------------------
CHASE BANK OF TEXAS, NATIONAL ASSOCIATION (formerly known as Texas Commerce Bank
National Association), a national banking association ("CBT"), as agent for
                                                        ---
itself and the other Banks, as issuer of Letters of Credit under the Agreement,
and as the swing line lender (in such capacity, together with its successors in
such capacity, the "Administrative Agent"), and THE CHASE MANHATTAN BANK
                    --------------------
("Chase"), as alternate currency agent (in such capacity, together with its
  -----
successors in such capacity, the "Alternate Currency Agent").
                                  ------------------------

                                   RECITALS:

     A.   The Borrower, the Banks, the Syndication Agent, the Documentation
Agent, the Administrative Agent and the Alternate Currency Agent have entered
into that certain Amended and Restated Credit Agreement dated as of August 2,
1999, as amended by that certain First Amendment to Amended and Restated Credit
Agreement dated as of November 23, 1999 (the "Agreement").
                                              ---------

     B.   The Borrower, the Banks, the Syndication Agent, the Documentation
Agent, the Administrative Agent and the Alternate Currency Agent now desire to
amend the Agreement as provided herein.

     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:

                                   ARTICLE I

                                  Definitions
                                  -----------

     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.

                                  ARTICLE II

                                  Amendments
                                  ----------

     2.1  New Definitions. Effective as of May 31, 2000, Section 1.1 of the
          ---------------
Agreement is hereby amended to add the following definitions, to read in their
respective entireties as follows:

          "Eligible Analog Inventory" means all Eligible Inventory consisting of
           -------------------------
analog phones.

          "Eligible Non-Analog Inventory" means all Eligible Inventory other
           -----------------------------
than Eligible Analog Inventory.
<PAGE>

          "Fee Agreements" has the meaning specified in Section 9.12.
           --------------                               ------------

          "Second Quarter Special Charges" means the following special charges
           ------------------------------
recorded in the Borrower's fiscal quarter ending May 31, 2000:

          (a)  Up to $5,900,000 related to reserves for Brazil related exit
     expenses;

          (b)  Up to $5,500,000 for the reserve for accounts receivable related
     to the Miami redistribution business;

          (c)  Up to $17,300,000 related to the reserve for US-based Brazilian
     accounts receivable; and

          (d)  Up to $2,100,000 related to special expenses incurred on behalf
     of Asia Pacific.

     2.2  Deleted Definitions. Effective as of the date hereof, Section 1.1 of
          -------------------
the Agreement is hereby amended to delete the definitions of "Alternate Advance
Rate Availability Period", "Exception Period", "Permitted Overadvance Period"
and "Price Protected Inventory".

     2.3  Amended Definitions. Effective as of the date hereof, the respective
          -------------------
definitions of each of the following terms set forth in Section 1.1 of the
                                                        -----------
Agreement are hereby amended to read in their respective entireties as follows:

          "Applicable Percentage" means, for any day, (a) with respect to
           ---------------------
     Eurodollar Advances, the margin of interest over the Eurodollar Rate that
     is applicable when any Applicable Rate based on the Eurodollar Rate is
     determined under this Agreement, (b) with respect to Floating Rate
     Advances, the margin of interest over the Alternate Base Rate that is
     applicable when any Applicable Rate based on the Alternate Base Rate is
     determined under this Agreement, (c) with respect to Alternate Currency
     Advances, the margin of interest over the Alternate Currency Rate that is
     applicable when any Applicable Rate based on the Alternate Currency Rate is
     determined under this Agreement, (d) with respect to commitment fees
     payable under Section 2.9, the commitment fee percentage that is applicable
                   -----------
     when any such commitment fee is determined under this Agreement, and (e)
     with respect to letter of credit fees payable under Section 3.5, the letter
                                                         -----------
     of credit fee percentage that is applicable when any such letter of credit
     fee is determined under this Agreement. The Applicable Percentage is
     subject to adjustment (upwards or downwards, as appropriate) based on the
     ratio of Consolidated Funded Debt to Consolidated Cash Flow; provided that
     from and including July 12, 2000 until the due date for the Compliance
     Certificate for the fiscal quarter ending August 31, 2000, the Applicable
     Percentage shall be the Applicable Percentage prescribed in Category 5
     below. On each date a Compliance Certificate is due under Section 9.1(d),
                                                               --------------
     commencing with the Compliance Certificate for the fiscal quarter ending
     August 31, 2000, the Applicable Percentage shall be adjusted to reflect the
     Applicable Percentage prescribed below for the ratio of Consolidated Funded
     Debt to Consolidated Cash Flow as demonstrated by such Compliance
     Certificate:

                                      -2-
<PAGE>

<TABLE>
<CAPTION>
                                                    Applicable
                             Ratio of               Percentage
                           Consolidated           for Eurodollar          Applicable
                          Funded Debt to           Advances and             Margin         Applicable
                           Consolidated              Alternate           for Floating      Letter of         Applicable
         Category           Cash Flow            Currency Advances      Rate Advances     Credit Fees      Commitment Fee
         --------           ---------            -----------------      -------------     -----------      --------------
         <S>          <C>                        <C>                    <C>
             1        Less than 1.00 to 1.00          1.625%                0.25%            1.625%            0.250%

             2        Greater than or equal           1.750%                0.25%            1.750%            0.250%
                      to 1.00 to 1.00, but
                      less than 1.50 to 1.00

             3        Greater than or equal           2.000%                0.50%            2.000%            0.375%
                      to 1.50 to 1.00, but
                      less than 2.25 to 1.00

             4        Greater than or equal           2.250%                0.75%            2.250%            0.375%
                      to 2.25 to 1.00, but
                      less than 3.00 to 1.00

             5        Greater than or equal           2.500%                1.00%            2.500%            0.500%
                      to 3.00 to 1.00 but
                      less than 3.50 to 1.00

             6        Greater than or equal           2.750%                1.25%            2.750%            0.500%
                      to 3.50 to 1.00
</TABLE>

     After each adjustment of the Applicable Percentage in accordance herewith
     due to a change in the ratio of Consolidated Funded Debt to Consolidated
     Cash Flow as demonstrated by the Compliance Certificate, the new Applicable
     Percentage shall apply to all Advances made or outstanding thereafter until
     the next date that a Compliance Certificate is due under Section 9.1(d) and
                                                              --------------
     demonstrates a change in the ratio of Consolidated Funded Debt to
     Consolidated Cash Flow to an amount so that another Applicable Percentage
     shall be applied. Upon the request of the Agent, the Borrower must
     demonstrate to the reasonable satisfaction of the Agent the required
     applicable ratio in order to obtain an adjustment to a lower Applicable
     Percentage. If the Borrower fails to furnish to the Agent any Compliance
     Certificate by the date required by this Agreement, then the maximum
     Applicable Percentage shall apply at all times after such date for all
     Advances made or outstanding after such date until the Borrower furnishes
     the required Compliance Certificate to the Agent.

          "Borrowing Base" means an amount equal to the sum of (i) 80% of the
           --------------
     Eligible Accounts, plus (ii) the lesser of (A) the sum of 50% of Eligible
     Non-Analog Inventory plus 40% of Eligible Analog Inventory, or (B) the
     Inventory Cap. If the Banks so elect, the Borrowing Base shall also include
     such portion of Credit Insured Accounts as the Banks shall elect. The Banks
     shall have no obligation to allow any of the Credit Insured Accounts to be
     included in the Borrowing Base. Any election by the Banks to include Credit
     Insured Accounts in the Borrowing Base and any election regarding the
     amount or percentage of Credit Insured Accounts to be included in the
     Borrowing Base shall require the unanimous approval of all of the Banks,
     which approval may be given or withheld in the exercise of each Bank's sole
     and absolute discretion.

                                      -3-
<PAGE>

          "Commitment" means (i) as to the Administrative Agent, the obligation
           ----------
     of the Administrative Agent to make Swing Line Advances pursuant to Section
                                                                         -------
     2.2 and issue Letters of Credit pursuant to Section 3.1, and (ii) as to
     ---                                         -----------
     each Bank, the obligation of such Bank to make Advances pursuant to
     Sections 2.1 and 2.2 and participate in Letters of Credit pursuant to
     ------------     ---
     Sections 3.1 and 3.3 in an aggregate principal amount at any time
     ------------     ---
     outstanding up to but not exceeding the amount set forth below opposite the
     name of such Bank under the heading "Commitment":

<TABLE>
<CAPTION>
             BANK                                                            COMMITMENT
             ----                                                            ----------
             <S>                                                            <C>
             CBT                                                            $21,739,130.43

             Bank One, NA                                                   $21,739,130.43

             National City Bank                                             $21,739,130.43

             Credit Lyonnais New York Branch                                $17,391,304.35

             Wells Fargo Bank Texas, National Association                   $17,391,304.35
</TABLE>

     , or the Commitment amount assigned or retained pursuant to an Assignment
     and Acceptance, or the Commitment amount for such Bank specified in
     documentation executed pursuant to Section 2.12; in each case, as such
                                        ------------
     amount may be reduced pursuant to Section 2.10 or terminated pursuant to
                                       ------------
     Section 2.10 or Section 12.2; provided, however, that with regard to CBT's
     ------------    -------------
     Commitment, the commitment to make Alternate Currency Advances shall be the
     commitment of Chase. Notwithstanding anything to the contrary contained
     herein, CBT shall have no commitment to make Alternate Currency Advances,
     and Chase shall have no commitment to make any Advances other than
     Alternate Currency Advances.

          "Maximum Rate" means, at any time, the maximum rate of interest under
           ------------
     applicable law that the Agent or the Banks may charge the Borrower. The
     Maximum Rate shall be calculated in a manner that takes into account any
     and all fees, payments, and other charges in respect of the Loan Documents
     that constitute interest under applicable law. Each change in any interest
     rate provided for herein based upon the Maximum Rate resulting from a
     change in the Maximum Rate shall take effect without notice to the Borrower
     at the time of such change in the Maximum Rate. For purposes of determining
     the Maximum Rate under Texas law, the applicable rate ceiling shall be the
     applicable weekly ceiling described in, and computed in accordance with,
     Chapter 303 of the Texas Finance Code.

          "Total Commitment Amount" means the aggregate amount of the
           -----------------------
     Commitments of the Banks, which amount is $100,000,000 as of July 12, 2000
     and may be increased to $135,000,000 subject to and in accordance with the
     terms, conditions and provisions of Section 2.12. For purposes of the
                                         ------------
     definitions of "Total Commitment Amount" and "Required Banks" set forth in
                     -----------------------       --------------
     this Section 1.1, the portion of the Total Commitment Amount attributable
          -----------
     to the Commitment of Chase and CBT shall be deemed to be held by CBT.

     2.4  Change of Control.  Effective as of the date hereof, the reference to
          -----------------
"Richard M. Gozia" appearing in subsection (c) of the definition of "Change of
                                --------------
Control" set forth in Section 1.1 of the Agreement is hereby amended to read
                      -----------
"Dale H. Allardyce".

                                      -4-
<PAGE>

     2.5  Repayment of Advances.  Effective as of the date hereof, Section 2.4
          ---------------------                                    -----------
of the Agreement is hereby amended to read in its entirety as follows:

          Section 2.4  Repayment of Advances. The Borrower shall make a payment
                       ---------------------
     to the Agent during the month of August on or before August 31, 2000, such
     payment to be in the amount equal to all management services fees and
     intellectual property royalty fees billed under the Fee Agreements during
     the quarter ending August 31, 2000, and shall make a payment to the Agent
     during the month of November on or before November 30, 2000, such payment
     to be in the amount equal to all management services fees and intellectual
     property royalty fees billed under the Fee Agreements during the quarter
     ending November 30, 2000, each such payment to be applied to repay Advances
     in such amount. Such amounts so paid may be reborrowed subject to the
     terms, conditions and provisions of this Agreement. The Borrower shall
     repay the unpaid principal amount of all Advances on the Termination Date.

     2.6  Accordion Provision.  Effective as of the date hereof, the amount
          --------------------
"$20,000,000" appearing in Section 2.12 of the Agreement is hereby amended to
                           ------------
read "$35,000,000".

     2.7  Amendment to Section 4.3.  Effective as of the date hereof, Section
          -------------------------                                   -------
4.3 of the Agreement is hereby amended to read in its entirety as follows:
---

          Section 4.3  Mandatory Prepayment. If at any time the amount equal to
                       --------------------
     the sum of (i) the outstanding principal amount of the Advances (including
     without limitation the Equivalent Amount of any Alternate Currency
     Advances), plus (ii) the Letter of Credit Liabilities exceeds the lesser of
     the Borrowing Base or the Total Commitment Amount (the amount of such
     excess being referred to herein as the "Overadvance"), the Borrower shall
                                             -----------
     promptly prepay the outstanding Advances by the amount of the Overadvance
     plus accrued and unpaid interest on the amount so prepaid or, if no
     Advances are outstanding, the Borrower shall immediately pledge to the
     Agent cash or cash equivalent investments in an amount equal to the
     Overadvance as security for the Obligations.

     2.8  Compliance Certificate.  Effective as of the date hereof, subsection
          ----------------------                                    ----------
(d) of Section 9.1 of the Agreement is hereby amended to read in its entirety
---    -----------
as follows:

          (d)  Compliance Certificate. (i) Concurrently with the delivery of
               ----------------------
     each of the financial statements referenced to in subsections 9.1(a) and
                                                       ------------------
     (b), a Compliance Certificate showing calculation of the financial
     covenants, and (ii) unless the appropriate parties hereto have entered into
     an amendment to this Agreement on or before November 22, 2000, pursuant to
     which Borrower has demonstrated that it is and will be in compliance with
     all covenants, terms and provisions of this Agreement as amended by such
     amendment, Borrower will furnish to the Agent and each Bank on or before
     November 22, 2000, a Compliance Certificate showing calculation of the
     financial covenants as of October 31, 2000 and that Borrower and the
     Subsidiaries are in compliance with all terms, covenants and provisions of
     this Agreement, provided that Borrower acknowledges that the Agent and the
     Banks do not and shall not have any commitment or obligation to enter into
     any such amendment, and none of the Banks or the Agent have made any
     representation or warranty regarding any such amendment to Borrower or any
     other Person;

                                      -5-
<PAGE>

     2.9  Fee Agreements.  Effective as of the date hereof, Article IX of the
          --------------                                    ----------
Agreement is hereby amended to add the following Section 9.12 to the end
                                                 ------------
thereof, such section to read in its entirety as follows:

          Section 9.12  Fee Agreements. The Borrower will enter into and cause
                        --------------
     to be maintained management services agreements and intellectual property
     royalty agreements with certain Foreign Subsidiaries, providing for
     payments from such Foreign Subsidiaries to the Borrower of management
     services fees and intellectual property royalty fees, respectively,
     calculated in accordance with Schedule 9.12 (such management services
                                   -------------
     agreements and intellectual property royalty agreements being herein called
     the "Fee Agreements"). The Borrower shall comply with and perform all of
          --------------
     its obligations under the Fee Agreements and shall bill and collect all
     fees and amounts payable thereunder. It is understood and agreed that
     Schedule 9.12 may change from time to time based upon the results of
     -------------
     transfer pricing studies which may be performed by the Borrower from time
     to time.

     2.10 Financial Covenants.  Effective as of May 31, 2000, Sections 11.2,
          -------------------                                 -------------
11.3, 11.4, 11.5 and 11.6 of the Agreement are hereby amended to read in their
----  ----  ----     ----
respective entireties as follows:

          Section 11.2  Consolidated Interest Coverage Ratio. The Borrower will
                        ------------------------------------
     maintain or cause to be maintained, as of the end of each fiscal quarter of
     the Borrower and as of October 31, 2000, an Interest Coverage Ratio of not
     less than 3.0 to 1.0 for the 12 months then ended.

          Section 11.3  Companies Interest Coverage Ratio. The Borrower will
                        ---------------------------------
     maintain or cause to be maintained, as of the end of each fiscal quarter of
     the Borrower and as of October 31, 2000, a ratio of (a) the Companies Cash
     Flow to (b) interest expense of the Borrower and the Subsidiaries on a
     consolidated basis of not less than 1.25 to 1.0 for the most recent 12
     months then ended, provided that for purposes of calculating the foregoing
     ratio for each of Borrower's fiscal quarters ending May 31, 2000 and August
     31, 2000 only, but not at any time thereafter, the Second Quarter Special
     Charges shall be added back to net income to the extent deducted from gross
     income in determining Companies Cash Flow for such period. In the event it
     is determined (by the most recent Compliance Certificate or otherwise) that
     the Companies Cash Flow is not sufficient to cause compliance with this
     Section 11.3, then within 10 days after such determination, the Borrower
     ------------
     will cause to be transferred to the Companies from the other Subsidiaries
     cash in an amount which when added to the Companies Cash Flow is sufficient
     to cause compliance with this Section 11.3, and, to the extent they comply
                                   ------------
     with such covenant, the Companies shall be deemed to have met the
     requirements of this Section 11.3 for the relevant period of determination,
                          ------------
     except as hereinafter provided. Notwithstanding anything to the contrary
     contained herein, (a) the Companies may not use the transferred cash
     described in the preceding sentence to meet the ratio requirements of this
     Section 11.3 in more than two consecutive fiscal quarters, and (b) the
     ------------
     Companies may not use the transferred cash described in the preceding
     sentence to meet the ratio requirement of this Section 11.3 for the
                                                    ------------
     compliance determination to be made as of October 31, 2000. Such
     transferred cash shall remain with the Companies, notwithstanding any other
     covenants to the contrary contained herein, until the Companies have
     demonstrated compliance with this Section 11.3 without the benefit of such
                                       ------------
     transferred cash.

          Section 11.4  Minimum Turnover Ratio. The Borrower will maintain or
                        ----------------------
     cause to be maintained, as of the end of each fiscal quarter of Borrower
     and as of October 31, 2000, a ratio of Consolidated Cost of Goods Sold to
     Consolidated Average Inventory of not less than 6.0 to

                                      -6-
<PAGE>

     1.0, provided that calculation of the ratio required by this Section 11.4
     as of October 31, 2000 shall be calculated as though the last quarter ended
     on October 31, 2000.

          Section 11.5  Consolidated Funded Debt to Consolidated Cash Flow
                        --------------------------------------------------
     Ratio. The Borrower will maintain or cause to be maintained, as of the end
     -----
     of each fiscal quarter of Borrower and as of October 31, 2000, a ratio of
     Consolidated Funded Debt, as of the date of determination, to Consolidated
     Cash Flow, for the most recent 12 months then ended, of not greater than
     3.5 to 1.0.

          Section 11.6  Consolidated Senior Debt to Consolidated Cash Flow
                        --------------------------------------------------
     Ratio. The Borrower will maintain or cause to be maintained, as of the end
     -----
     of each fiscal quarter of Borrower and as of October 31, 2000, a ratio of
     Consolidated Senior Debt, as of the date of determination, to Consolidated
     Cash Flow, for the most recent 12 months then ended, of not greater than
     2.5 to 1.0.

     2.11 Amendment to Compliance Certificate.  Effective as of May 31, 2000,
          -----------------------------------
Exhibit D to the Credit Agreement is hereby amended to read in its entirety as
---------
set forth on Annex I hereto.
             -------

     2.12 Amendment to Borrowing Base Report.  Effective as of the date hereof,
          ----------------------------------
Exhibit E to the Credit Agreement is hereby amended to read in its entirety as
---------
set forth on Annex II hereto.
             --------

     2.13 Schedule 9.12. Effective as of the date hereof, the Agreement is
          -------------
hereby amended to add Schedule 9.12 thereto, which schedule shall read in its
                      -------------
entirety as set forth on Annex III hereto.
                         ---------

                                  ARTICLE III

                             Conditions Precedent
                             --------------------

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

          (a)  Representations and Warranties. The representations and
               ------------------------------
     warranties contained herein and in all other Loan Documents, as amended
     hereby, shall be true and correct as of the date hereof as if made on the
     date hereof.

          (b)  No Default.  No Default shall have occurred and be continuing.
               ----------

          (c)  Corporate Matters. All corporate proceedings taken in connection
               -----------------
     with the transactions contemplated by this Amendment and all documents,
     instruments, and other legal matters incident thereto shall be satisfactory
     to the Administrative Agent and its legal counsel, Locke Liddell & Sapp
     LLP.

          (d)  Additional Documentation.  The Administrative Agent shall have
               ------------------------
     received such additional approvals, opinions, or documents as the
     Administrative Agent or its legal counsel, Locke Liddell & Sapp LLP, may
     reasonably request.

          (e)  Fees. Borrower shall have paid to Agent, for the account of each
               ----
     Bank that executes and delivers this Amendment (except Chase), an amendment
     fee in the amount of its Commitment multiplied by 20 basis points.

                                      -7-
<PAGE>

                                  ARTICLE IV

                 Ratifications, Representations and Warranties
                 ---------------------------------------------

     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
agrees 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.

     4.2  Representations and Warranties. Borrower hereby represents and
          ------------------------------
warrants to the Administrative Agent and the Banks that (1) the execution,
delivery, and performance by the Borrower and the Guarantors of this Amendment
and compliance with the terms and provisions hereof have been duly authorized by
all requisite action on the part of each such Person and do not and will not (a)
violate or conflict with, or result in a breach of, or require any consent under
(i) the articles of incorporation, certificate of incorporation, bylaws,
partnership agreement or other organizational documents of any such Person, (ii)
any applicable law, rule, or regulation or any order, writ, injunction, or
decree of any Governmental Authority or arbitrator, or (iii) any material
agreement or instrument to which any such Person is a party or by which any of
them or any of their property is bound or subject, (2) the representations and
warranties contained in the Agreement, as amended hereby, and any other Loan
Document are true and correct on and as of the date hereof as though made on and
as of the date hereof, and (3) no Default has occurred and is continuing.

                                   ARTICLE V

                                 Miscellaneous
                                 -------------

     5.1  Survival of Representations and Warranties. All representations and
          ------------------------------------------
warranties made in this Amendment or any other Loan Document shall survive the
execution and delivery of this Amendment, and no investigation by the
Administrative Agent or any Bank or any closing shall affect the representations
and warranties or the right of the Administrative Agent or any Bank to rely upon
them.

     5.2  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.

     5.3  Expenses of the Administrative Agent. Borrower agrees to pay on demand
          ------------------------------------
all costs and expenses incurred by the Administrative Agent in connection with
the preparation, negotiation, and execution of this Amendment and any and all
amendments, modifications, and supplements thereto, including without limitation
the costs and fees of the Administrative Agent's legal counsel, and all costs
and expenses incurred by the Administrative Agent in connection with the
enforcement or preservation of any rights under the Agreement, as amended
hereby, or any other Loan Document, including without limitation the costs and
fees of the Administrative Agent's legal counsel.

                                      -8-
<PAGE>

     5.4  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.

     5.5  APPLICABLE LAW. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN
          --------------
THE OTHER LOAN DOCUMENTS, THIS AMENDMENT AND ALL OTHER LOAN DOCUMENTS SHALL BE
DEEMED TO HAVE BEEN MADE AND TO BE PERFORMABLE IN DALLAS, DALLAS COUNTY, TEXAS
AND SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE
OF TEXAS.

     5.6  Successors and Assigns. This Amendment is binding upon and shall inure
          ----------------------
to the benefit of the Borrower, the Banks, the Syndication Agent, the
Documentation Agent, the Administrative Agent and the Alternate Currency Agent
and their respective successors and assigns, except the Borrower shall not
assign or transfer any of its rights or obligations hereunder without the prior
written consent of the Administrative Agent.

     5.7  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
instrument. This Amendment shall not be effective unless and until the Agent,
the requisite Banks, the Borrower and the Guarantors have each executed and
delivered a counterpart hereof; provided, however that execution and delivery by
Holdings shall not be required for effectiveness of this Amendment, but Holdings
shall execute and deliver this Amendment no later than August 31, 2000, and
failure to do so by such date shall constitute an Event of Default under the
Agreement.

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

     5.9  Release of Claims. The Borrower and the Guarantors each hereby
          -----------------
acknowledge and agree that none of them has any and there are no claims or
offsets against or defenses or counterclaims to the terms and provisions of or
the obligations of the Borrower, any Guarantor or any Subsidiary created or
evidenced by the Agreement or any of the other Loan Documents, and to the extent
any such claims, offsets, defenses or counterclaims exist, Borrower and the
Guarantors each hereby waives, and hereby release the Administrative Agent, the
Alternate Currency Agent, the Syndication Agent, the Documentation Agent and
each of the Banks from, any and all claims, offsets, defenses and counterclaims,
whether known or unknown, such waiver and release being with full knowledge and
understanding of the circumstances and effects of such waiver and release and
after having consulted legal counsel with respect thereto.

     5.10 ENTIRE AGREEMENT. THIS AMENDMENT AND ALL OTHER INSTRUMENTS, DOCUMENTS
          ----------------
AND AGREEMENTS EXECUTED AND DELIVERED IN CONNECTION WITH THIS AMENDMENT EMBODY
THE FINAL, ENTIRE AGREEMENT AMONG THE PARTIES HERETO REGARDING THIS AMENDMENT
AND SUPERSEDE 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.

                                      -9-
<PAGE>

     Executed as of the date first written above.

                                        BORROWER:
                                        --------

                                        CELLSTAR CORPORATION

                                        By: /s/ AUSTIN P. YOUNG
                                            -----------------------------------
                                           Name:  Austin P. Young
                                                  -----------------------------
                                           Title: Senior Vice President, Chief
                                                  -----------------------------
                                                  Financial Officer & Treasurer
                                                  -----------------------------

                                        AGENTS AND BANKS:
                                        ----------------

                                        CHASE BANK OF TEXAS, NATIONAL
                                        ASSOCIATION (formerly known as Texas
                                        Commerce Bank National Association), as
                                        Administrative Agent and as a Bank

                                        By:  /s/ ALLEN K. KING
                                            -----------------------------------
                                            Allen K. King
                                            -----------------------------------
                                            Vice President
                                            -----------------------------------

                                        BANK ONE, NA (formerly known as The
                                        First National Bank of Chicago),
                                        as Syndication Agent and as a Bank

                                        By: /s/ CHRISTOPHER CHILD
                                            -----------------------------------
                                           Name:  Christopher Child
                                                  -----------------------------
                                           Title: Senior V.P./C.O.
                                                  -----------------------------

                                        NATIONAL CITY BANK,
                                        as Documentation Agent and as a Bank

                                        By:  /S/ SCOTT BREWER
                                            ----------------------------------
                                             Name:  Scott Brewer
                                            ----------------------------------
                                             Title:  A. V. P.
                                            ----------------------------------

                                      -10-
<PAGE>

                                        THE CHASE MANHATTAN BANK,
                                        as Alternate Currency Agent and as a
                                        Bank

                                        By: /s/ JOHN F. GEHEBE
                                            ----------------------------------
                                           Name:  John F. Gehebe
                                                 -----------------------------
                                           Title:  Vice President
                                                  ----------------------------

                                        CREDIT LYONNAIS NEW YORK BRANCH

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

                                        WELLS FARGO BANK TEXAS,
                                        NATIONAL ASSOCIATION (formerly known as
                                        Wells Fargo Bank (Texas), National
                                        Association)

                                        By: /s/ BRIAN P. RIORDAN
                                            ----------------------------------
                                           Name:  Brian P. Riordan
                                                  ----------------------------
                                           Title:  Banking Officer
                                                   ---------------------------

Each of the undersigned Guarantors hereby (a) consents and agrees to this
Amendment, and (b) agrees that its Guaranty shall continue to be the legal,
valid and binding obligation of such Guarantor enforceable against such
Guarantor in accordance with its terms.

                                        NATIONAL AUTO CENTER, INC.

                                        By: /s/ AUSTIN P. YOUNG
                                            -----------------------------------
                                           Name:  Austin P. Young
                                                  -----------------------------
                                           Title: Senior Vice President, Chief
                                                  -----------------------------
                                                  Financial Officer & Treasurer
                                                  -----------------------------
                                      -11-
<PAGE>

                                        CELLSTAR, LTD.

                                        By:    National Auto Center, Inc.,
                                               General Partner

                                            /s/ AUSTIN P. YOUNG
                                        By:___________________________________
                                                 Austin P. Young
                                           Name:______________________________
                                                  Senior Vice President,
                                                  Chief Financial Officer
                                                  & Treasurer
                                           Title:_____________________________

                                        CELLSTAR FULFILLMENT, LTD.

                                        By:   CellStar Fulfillment, Inc.,
                                              General Partner

                                            /s/ AUSTIN P. YOUNG
                                        By:___________________________________
                                                 Austin P. Young
                                           Name:______________________________
                                                  Senior Vice President,
                                                  Chief Financial Officer
                                                  & Treasurer
                                           Title:_____________________________

                                        CELLSTAR FINANCO, INC.

                                            /s/ AUSTIN P. YOUNG
                                        By:___________________________________
                                                 Austin P. Young
                                           Name:______________________________
                                                  Senior Vice President,
                                                  Chief Financial Officer
                                                  & Treasurer
                                           Title:_____________________________

                                        CELLSTAR FULFILLMENT, INC.

                                            /s/ AUSTIN P. YOUNG
                                        By:___________________________________
                                                 Austin P. Young
                                           Name:______________________________
                                                  Senior Vice President,
                                                  Chief Financial Officer
                                                  & Treasurer
                                           Title:_____________________________

                                      -12-
<PAGE>

                                        NAC HOLDINGS, INC.

                                        By: /s/ ELAINE FLUD RODRIGUEZ
                                           ------------------------------------
                                           Elaine Flud Rodriguez
                                           President

                                        CELLSTAR INTERNATIONAL CORPORATION/ASIA

                                        By: /s/ AUSTIN P. YOUNG
                                           ------------------------------------
                                           Name:  Austin P. Young
                                                -------------------------------
                                           Title: Senior Vice President, Chief
                                                 ------------------------------
                                                   Financial Officer & Treasurer
                                                 -------------------------------

                                        AUDIOMEX EXPORT CORP.

                                        By: /s/ AUSTIN P. YOUNG
                                           ------------------------------------
                                           Name:  Austin P. Young
                                                -------------------------------
                                           Title: Senior Vice President, Chief
                                                 ------------------------------
                                                   Financial Officer & Treasurer
                                                 -------------------------------

                                        CELLSTAR INTERNATIONAL
                                        CORPORATION/SA

                                        By: /s/ AUSTIN P. YOUNG
                                           ------------------------------------
                                           Name:  Austin P. Young
                                                -------------------------------
                                           Title: Senior Vice President, Chief
                                                 ------------------------------
                                                   Financial Officer & Treasurer
                                                 -------------------------------

                                        CELLSTAR AIR SERVICES, INC.

                                        By: /s/ AUSTIN P. YOUNG
                                           ------------------------------------
                                           Name:  Austin P. Young
                                                -------------------------------
                                           Title: Senior Vice President, Chief
                                                 ------------------------------
                                                   Financial Officer & Treasurer
                                                 -------------------------------

                                      -13-
<PAGE>

                                        A & S AIR SERVICE, INC.

                                        By:/s/ AUSTIN P. YOUNG
                                           -----------------------------------
                                           Name: Austin P. Young
                                                ------------------------------
                                           Title: Senior Vice President,
                                                 -----------------------------
                                                  Chief Financial Officer
                                                 -----------------------------
                                                  and Treasurer
                                                 -----------------------------

                                        CELLSTAR TELECOM, INC.

                                        By: /s/ AUSTIN P. YOUNG
                                           -----------------------------------
                                           Name: Austin P. Young
                                                ------------------------------
                                           Title: Senior Vice President,
                                                 -----------------------------
                                                  Chief Financial Officer
                                                 -----------------------------
                                                  and Treasurer
                                                 -----------------------------

                                        FLORIDA PROPERTIES, INC.

                                        By: /s/ AUSTIN P. YOUNG
                                           -----------------------------------
                                           Name: Austin P. Young
                                                ------------------------------
                                           Title: Senior Vice President,
                                                 -----------------------------
                                                  Chief Financial Officer
                                                 -----------------------------
                                                  and Treasurer
                                                 -----------------------------

                                        CELLSTAR GLOBAL SATELLITE
                                        SERVICE, LTD.

                                        By:    National Auto Center, Inc.,
                                               General Partner

                                        By: /s/ AUSTIN P. YOUNG
                                           -----------------------------------
                                           Name: Austin P. Young
                                                ------------------------------
                                           Title: Senior Vice President,
                                                 -----------------------------
                                                  Chief Financial Officer
                                                 -----------------------------
                                                  and Treasurer
                                                 -----------------------------

                                      -14-
<PAGE>

                                    ANNEX I
                                    -------

                                   EXHIBIT D
                                      TO
                     AMENDED AND RESTATED CREDIT AGREEMENT

                            Compliance Certificate
                            ----------------------
<PAGE>

                            COMPLIANCE CERTIFICATE
                            ----------------------

TO:  Chase Bank of Texas, National Association, as Administrative Agent
     2200 Ross Avenue, 3rd Floor
     Dallas, Texas 75201
     Attention: Allen K. King

Ladies and Gentlemen:

     The undersigned is the president, chief executive officer, the chief
financial officer or the corporate controller of CELLSTAR CORPORATION, a
Delaware corporation (the "Borrower"), and is authorized to make and deliver
                           --------
this certificate pursuant to that certain Amended and Restated Credit Agreement
dated as of August 2, 1999, as amended by that certain First Amendment to
Amended and Restated Credit Agreement dated as of November 23, 1999, and as
further amended by that certain Second Amendment to Amended and Restated Credit
Agreement dated as of July ___, 2000 (as the same has been and may be amended,
supplemented or modified from time to time, being hereinafter referred to as the
"Credit Agreement"), among the Borrower, each of the banks or other lending
 ----------------
institutions which is or may become a party thereto and the successors and
permitted assigns thereof, Bank One, NA (formerly known as The First National
Bank of Chicago), as syndication agent (the "Syndication Agent"), National City
                                             -----------------
Bank, as documentation agent (the "Documentation Agent"), Chase Bank of Texas,
                                   -------------------
National Association, a national banking association, as administrative agent
for itself and each of the other Banks, as issuer of Letters of Credit
thereunder and as the swing line lender (the "Administrative Agent"), and The
                                              --------------------
Chase Manhattan Bank, as alternate currency agent (the "Alternate Currency
                                                        ------------------
Agent"). All terms defined in the Credit Agreement shall have the same meaning
-----
herein.

     In connection with the foregoing and pursuant to the terms and provisions
of the Credit Agreement, the undersigned hereby certifies to the Agent and each
Bank that the following statements are true and correct:

     A.   Representations and Warranties. The representations and warranties
          ------------------------------
contained in Article VIII of the Credit Agreement and in each of the other Loan
             ------------
Documents are true and correct on and as of the date hereof with the same force
and effect as if made on and as of such date.

     B.   Financial Covenants. The information set forth below is true and
          -------------------
correct based upon the financial statements delivered herewith as of the last
day of the fiscal quarter next preceding the date of this certificate or such
other date of determination as may be set forth below:

(1)  Consolidated Tangible Net Worth as of ___________, ______:

<TABLE>
     <S>                                                                                                                <C>
     (a)  Stockholders' or owners' equity of the Borrower and the Subsidiaries
          on a consolidated basis as of such date.................................................................      $___________
     (b)  Amount at which shares of capital stock of any Person appear as an asset on
          the balance sheet of such Person........................................................................      $___________
     (c)  Goodwill, including amounts that represent the excess of the purchase price paid for
          assets or stock over the value assigned thereto.........................................................      $___________
     (d)  Patents, trademarks, trade names, and copyrights........................................................      $___________
     (e)  Deferred expenses.......................................................................................      $___________
     (f)  Loans and advances to any stockholder, director, officer, partner or employee of the
          Borrower, any Subsidiary, or any Affiliate of the Borrower or any Subsidiary............................      $___________
     (g)  All other assets which are properly classified as intangible assets.....................................      $___________
     (h)  Sum of Lines (b), (c), (d), (e), (f) and (g)............................................................      $___________
     (i)  Tangible Net Worth (Difference of Line (a) minus Line (h))..............................................      $___________
     (j)  Sum of net income, after provision for income taxes, of the Borrower and the
          Subsidiaries on a consolidated basis (without any deduction for losses) for each
          fiscal quarter of the Borrower ended through such date beginning with the
          fiscal quarter ending August 31, 1999...................................................................      $___________
     (k)  50% of Line (j).........................................................................................      $___________
     (l)  With respect to any issuance, sale or other disposition of any shares of capital
          stock or other equity securities of Borrower of any class (or any securities
          convertible or exchangeable for any such shares, or any rights, warrants or
</TABLE>

COMPLIANCE CERTIFICATE - Page 1
<PAGE>

<TABLE>
     <S>                                                                                                                <C>
          options to subscribe for or purchase any such shares), the aggregate gross
          proceeds of such issuance, sale or other disposition, less the following:
                                                                ----
          (i) placement agent fees, (ii) underwriting discounts and commissions, (iii) bank
          and other lender fees, and (iv) legal fees and other expenses payable by the issuer
          in connection with such issuance, sale or other disposition, to the extent such proceeds are
          received by the Borrower..............................................................................      $___________
     (m)  Minimum Consolidated Tangible Net Worth required by Section 11.1 of Credit Agreement
                                                              ------------
          ($150,000,000 plus Line (k) plus Line (1))............................................................      $___________
</TABLE>

(2)  Consolidated Interest Coverage Ratio as of ___________, ______ (for the 12
     ------------------------------------
     month period most recently ended):

<TABLE>
     <S>                                                                                                                <C>
     (a)  The sum of the following, calculated on a consolidated basis for the Borrower and the
          Subsidiaries, without duplication: (i) the amount of net income for the 12 month
          period most recently ended (whether positive or negative) before interest
          expense, income taxes and extraordinary items, net of (ii) all non-cash
          items (such as deferred taxes, depreciation, amortization of goodwill and all other
          non-cash charges accrued but not actually paid) which, in determining net income
          for such period, were deducted from (or included in) gross income for such period;
          provided, however, that for purposes of the foregoing calculation, changes in the
          --------  -------
          allowance for doubtful accounts shall not be treated as a non-cash item..................................     $___________
     (b)  Interest expense of the Borrower and the Subsidiaries on a consolidated basis............................     $___________
     (c)  Ratio of Line (a) to Line (b)............................................................................     ____ to ____
     (d)  Minimum Consolidated Interest Coverage Ratio required by Section 11.2 of Credit Agreement................       3.0 to 1.0
                                                                   ------------
</TABLE>

(3)  Companies Interest Coverage Ratio as of _____________, ______ (for the 12
     ---------------------------------
     month period then ended):

<TABLE>
     <S>                                                                                                                <C>
     (a)  The sum of the following, calculated on a combined basis for the Companies, without duplication:
          (i) the amount of net income for the 12 month period most recently ended (whether
          positive or negative) before interest expense, income taxes and extraordinary items, net of
          (ii) all non-cash items (such as deferred taxes, depreciation, amortization of goodwill and all
          other non-cash charges accrued but not actually paid) which, in determining net income for
          such period, were deducted from (or included in) gross income for such period; provided,
                                                                                         --------
          however, that for purposes of calculating the foregoing, changes in the allowance for doubtful
          -------
          accounts shall not be treated as a non-cash item/1/......................................................     $___________
     (b)  Interest expense of the Borrower and the Subsidiaries on a consolidated basis (Line 2(b))................     $___________
     (c)  Ratio of Line (a) to Line (b)............................................................................     ____ to ____
     (d)  Amount of cash transferred from Subsidiaries to the Companies as permitted
          by Section 11.3 of the Credit Agreement/2/...............................................................     $___________
             ------------
     (e)  Ratio of Line (a) plus Line (d) to Line (b)..............................................................     ____ to ____
</TABLE>

_________________________
 /1/ In the calculation of Companies Cash Flow for certain periods, certain
special or non-recurring charges shall be excluded, or added back to net income,
in accordance with Section 11.3 of the Credit Agreement and the definition of
                   ------------
Companies Cash Flow set forth in Section 1.1 of the Credit Agreement.
                                 -----------

 /2/ In the event it is determined that the Companies Cash Flow is not
sufficient with Section 11.3 of the Credit Agreement, then within ten days after
                ------------
such determination, the Borrower will cause to be transferred to the Companies
from the other Subsidiaries cash in an amount which when added to the Companies
Cash Flow is sufficient to cause compliance with Section 11.3 of the Credit
                                                 ------------
Agreement, and, to the extent they comply with such covenant, the Companies
shall be deemed to have met the requirements of Section 11.3 of the Credit
                                                ------------
Agreement for the relevant period of determination, except as hereinafter
provided. The Companies may not use transferred cash to meet the ratio
requirement of Section 11.3 of the Credit Agreement in more than two consecutive
               ------------
fiscal quarters. The Companies may not use transferred cash to meet the ratio
requirement of Section 11.3 of the Credit Agreement for the compliance
               ------------
determination as of October 31, 2000. Such transferred cash shall remain with
the Companies, notwithstanding any other covenants to the contrary contained
herein, until the Companies have demonstrated compliance with Section 11.3 of
                                                              ------------
the Credit Agreement without the benefit of such transferred cash.

COMPLIANCE CERTIFICATE - Page 2
<PAGE>

<TABLE>
     <S>                                                                                                      <C>
     (f)  Minimum Companies Interest Coverage Ratio required by Section 11.3 of Credit Agreement....          1.25 to 1.0
                                                                ------------
</TABLE>

<TABLE>
<CAPTION>
(4)       Minimum Turnover Ratio for the quarter ended ___________, ______:/3/
          ----------------------
          (a)  Cost of goods sold for the Borrower and the Subsidiaries on a consolidated basis in the period
               of the four fiscal quarters then ended.............................................................    $___________
          (b)  Consolidated Average Inventory Per Quarter for each of the most recent four fiscal quarters then ended:

                                        Beginning                         Ending
                                        Inventory                       Inventory
                     Quarters            Amount                          Amount
                     --------            ------                          ------

                       <S>              <C>                            <C>                                            <C>
                       1                $_______          +            $_______ /2 =  ............................    $___________
                       2                $_______          +            $_______ /2 =  ............................    $___________
                       3                $_______          +            $_______ /2 =  ............................    $___________
                       4                $_______          +            $_______ /2 =  ............................    $___________
          (c)  Total sum of Consolidated Average Inventory Per Quarter for quarters shown in Line (b).............    $___________
          (d)  Consolidated Average Inventory (Line (c) divided by four)..........................................    $___________
          (e)  Turnover Ratio (Ratio of Line (a) to Line (d)).....................................................    ____ to ____
          (f)  Minimum Turnover Ratio required by Section 11.4 of Credit Agreement................................    6.0 to 1.0
                                                  ------------
</TABLE>

<TABLE>
<S>                                                                                                                   <C>
(5)       Consolidated Funded Debt to Consolidated Cash Flow Ratio as of __________, ______:
          (a)  On a consolidated basis for the Borrower and the Subsidiaries in accordance
               with GAAP, all obligations for borrowed money (whether as a direct obligor on
               a promissory note, bond, debenture or other similar instrument, as a
               reimbursement obligor with respect to an issued letter of credit or similar
               instrument, as an obligor under a Guarantee for borrowed money, or
               as any other type of direct or contingent obligor) as of the date of determination................     $___________
          (b)  On a consolidated basis for the Borrower and the Subsidiaries, without
               duplicating any amount included in Line (a) above, the capitalized amount of all
               obligations to pay rent or other amounts under a lease of (or other agreement conveying
               the right to use) real and/or personal property, which obligations are required to be
               classified and accounted for as a capital lease on a consolidated balance sheet of the
               Borrower under GAAP (other than the interest component of such obligations), as of the date of
               determination, determined in accordance with GAAP..................................................    $___________
          (c)  Consolidated Funded Debt (the sum of Line (a) plus Line (b)).......................................    $___________
          (d)  Consolidated Cash Flow (Line (2)(a))...............................................................    $___________
          (e)  Ratio of Line (c) to Line (d)......................................................................    _____ to ___
          (f)  Maximum Consolidated Funded Debt to Consolidated Cash Flow Ratio permitted by
               Section 11.5 of the Credit Agreement...............................................................    3.5 to 1.0
               ------------
</TABLE>

<TABLE>
<S>                                                                                                                   <C>
(6)       Consolidated Senior Debt to Consolidated Cash Flow Ratio as of _____________, ______:
          (a)  Consolidated Funded Debt (Line (5)(c))............................................................     $___________
          (b)  Subordinated Debt.................................................................................     $___________
          (c)  Consolidated Senior Debt (Line (a) minus Line (b))................................................     $___________
          (d)  Consolidated Cash Flow (Line (2)(a))..............................................................     $___________
          (e)  Ratio of Line (c) to Line (d).....................................................................     ____ to ____
          (f)  Maximum Consolidated Senior Debt to Consolidated Cash Flow Ratio permitted by
               Section 11.6 of the Credit Agreement..............................................................     2.5 to 1.0
               ------------
</TABLE>

(7)       Intercompany Loans and Capital Contributions as of ____________,
          _______:
          (a) Capital contributions by the Borrower or any Subsidiary
          to any other Subsidiary or any

_______________________
/3/ Calculation of this ratio as of October 31, 2000 shall be calculated as
    though the last quarter ended on October 31, 2000.

COMPLIANCE CERTIFICATE - Page 3
<PAGE>

<TABLE>
<S>                                                                                                                   <C>

          Foreign Affiliate (other than as described in subsections (B) through (E) of Section 10.5(i) of the
                                                        ---------------         ---    ---------------
          Credit Agreement) during the current fiscal year through the fiscal quarter most recently
          ended or other date of determination specified above/4/................................................     $___________
(b)       Capital contributions by the Borrower or any Subsidiary to any other Subsidiary or any
          Foreign Affiliate (other than as described in subsections (B) through (E) of Section 10.5(i) of the
                                                        ---------------         ---    ---------------
          Credit Agreement) during the fiscal year most recently ended/5/.........................................    $___________
(c)       Maximum amount of such capital contributions permitted by subsection (F) of Section 10.5(i) of
                                                                    ---------- ---    ---------------
          the Credit Agreement during any fiscal year.............................................................    $15,000,000
(d)       Aggregate amount of loans and advances by the Borrower or any Subsidiary to any Foreign Affiliate
          outstanding as of such date.............................................................................    $___________
(e)       Maximum aggregate amount of such loans and advances permitted to be outstanding at any time............     $10,000,000
(f)       Aggregate amount of loans and advances by the Borrower or any Subsidiary to any
          other Subsidiary (other than as described in subsections (B) and (C) of Section 10.5(i) of the
                                                       -----------------------    ---------------
          Credit Agreement) outstanding as of such date./6/......................................................     $___________

(g)       Maximum aggregate amount of such loans and advances permitted to be outstanding at any time:
          (1)  Stockholders' equity in the Borrower as of such date...............................................    $___________
          (2)  20% of Line (1)....................................................................................    $___________
          (3)  Greater of $100,000,000 or Line (2)................................................................    $___________
</TABLE>

             The undersigned hereby certifies that (a) the above information and
calculations are true and correct and not misleading as of the date hereof, (b)
Borrower has delivered to the Agent and the Banks all financial information and
reports required by the Credit Agreement by the dates provided therein, and (c)
no Default has occurred and is continuing.

                                            CELLSTAR CORPORATION

                                            By:______________________________
                                               Name:_________________________
                                               Title:________________________

Dated as of:___________________

_______________________
/4/ For each Compliance Certificate other than each Compliance Certificate
delivered for any fiscal year-end of the Borrower.

/5/ For each Compliance Certificate delivered for any fiscal year-end of the
Borrower.

/6/ Amounts loaned or advanced by the Borrower or any Subsidiary to any
Subsidiary that are in turn loaned or advanced by that Subsidiary to another
Subsidiary shall be counted only once for purposes of this calculation.

COMPLIANCE CERTIFICATE - Page 4
<PAGE>

                                   ANNEX II
                                   --------

                                   EXHIBIT E
                                      TO
                     AMENDED AND RESTATED CREDIT AGREEMENT

                             Borrowing Base Report
                             ---------------------
<PAGE>

                             BORROWING BASE REPORT

TO:  Chase Bank of Texas, National Association, as Administrative Agent
         2200 Ross Avenue
         Post Office Box 660197
         Dallas, Texas   75266-0197
         Attention:  Allen K. King

Ladies and Gentlemen:

     This Borrowing Base Report for the month ending ___________, 19___, is
executed and delivered by CELLSTAR CORPORATION, a Delaware corporation (the
"Borrower"), pursuant to that certain Amended and Restated Credit Agreement
 --------
dated as of August 2, 1999, as amended by that certain First Amendment to
Amended and Restated Credit Agreement dated as of November 23, 1999, and as
further amended by that certain Second Amendment to Amended and Restated Credit
Agreement dated as of July ___, 2000 (as the same has been or may be amended,
supplemented, modified or restated from time to time, the "Credit Agreement"),
                                                           ----------------
among the Borrower, each of the banks or other lending institutions which is or
may from time to time become a signatory thereto and any successors or permitted
assigns thereof (each a "Bank" and, collectively, the "Banks"), Bank One, NA
                         ----                          -----
(formerly known as The First National Bank of Chicago), as syndication agent
(the "Syndication Agent"), National City Bank, as documentation agent
      -----------------
("Documentation Agent"), and Chase Bank of Texas, National Association, a
  -------------------
national banking association, as administrative agent for the Banks, as issuer
of Letters of Credit thereunder and as the swing line lender (in such capacity,
together with its successors in such capacity, the "Administrative Agent"). All
                                                    --------------------
terms used herein shall have the meanings assigned to them in the Credit
Agreement.

     The Borrower represents and warrants to the Agent and each Bank that all
information contained herein is true, correct, and complete, and that the total
Eligible Accounts, Eligible Inventory, Eligible Analog Inventory and Eligible
Non-Analog Inventory referred to below represent the Eligible Accounts, Eligible
Inventory, Eligible Analog Inventory and Eligible Non-Analog Inventory that
qualify for purposes of determining the Borrowing Base under the Credit
Agreement.

<TABLE>
<S>                                                                                                                   <C>
ACCOUNTS RECEIVABLE:
1.   Gross Accounts of the Companies (ending balance for period
     ended ______________, 19__)  ..................................................................................  $____________
2.   Less:  Ineligible Accounts (determined pursuant to the definition of Eligible
     Accounts in the Credit Agreement, without duplication):
          (a)  Accounts not complying with applicable law...........................................................  $____________
          (b)  Accounts outstanding for more than 90 days past the original date of invoice.........................  $____________
          (c)  Accounts created outside of the ordinary course of business .........................................  $____________
          (d)  Accounts from unenforceable contracts or contracts not fully completed by any Company ...............  $____________
          (e)  Accounts including progress billings ................................................................  $____________
          (f)  Accounts from sales on bill-and-hold, guaranteed sale, sale-and-return, etc. ........................  $____________
          (g)  Accounts subject to a lien other than liens held by the Agent or permitted by Section 10.2 of the
               Credit Agreement ....................................................................................  $____________
          (h)  Accounts as to which any Company does not have good and indefeasible title ..........................  $____________
          (i)  Accounts subject to anti-assignment provisions ......................................................  $____________
          (j)  Accounts subject to setoff, dispute, etc. ...........................................................  $____________
          (k)  Accounts owed by account debtors subject to bankruptcy, etc. ........................................  $____________
          (l)  Accounts evidenced by chattel paper or instruments ..................................................  $____________
          (m)  Accounts subject to default by any party thereto.....................................................  $____________
          (n)  Accounts owed by Foreign Subsidiaries ...............................................................  $____________
          (o)  Accounts owed by Foreign Affiliates .................................................................  $____________
          (p)  Accounts owed by other Affiliates of any Company, except for accounts owed by Topp Telecom
               for sales of inventory in the ordinary course of the Companies' business.............................  $____________
          (q)  Accounts owed by employees of any Company ...........................................................  $____________
          (r)  Accounts owed by other foreign account debtors in excess of $15,000,000 .............................  $____________
          (s)  Accounts not payable in Dollars .....................................................................  $____________
          (t)  Accounts owed by each account debtor with over 20% of the balances owed by such account debtor
               and its Affiliates to the Companies on a consolidated basis outstanding for more than 90 days
               past the original date of invoice...................................................................   $____________
          (u)  All accounts owed by each account debtor  if balances owed by such account debtor and its Affiliates
               constitute more than 10% of the total accounts receivable of the Companies on a consolidated
               basis...............................................................................................   $____________
          (v)  Accounts owed by the United States of America or any agency thereof for which the Federal
               Assignment of Claims Act of 1940, as amended, has not been complied with. ..........................   $____________
          (w)  Contra accounts owed by any Company to the account debtor which are payable pursuant to terms which
               are not ordinary and customary......................................................................   $____________
          (x)  Contra accounts owed by any Company to the account debtor which are past due or otherwise in
               default ............................................................................................   $____________
          (y)  Past due credits....................................................................................   $____________
3.   Total Ineligible Accounts (sum of Lines 2(a)-(y)) ............................................................   $____________
4.   Total Eligible Accounts (Line 1 minus Line 3) ................................................................   $____________
</TABLE>

BORROWING BASE REPORT - Page 1
<PAGE>

<TABLE>
<S>                                                                                                                   <C>
INVENTORY:
5.   Total Inventory of the Companies (valued at lesser of actual cost for purchase from original
     wholesale supplier or fair market value) .....................................................................   $____________
6.   Less:  Ineligible Inventory (determined pursuant to the definition of Eligible Inventory in the Credit
     Agreement, without duplication)
          (a)  Work-in-process inventory ..........................................................................   $____________
          (b)  Value of obsolescence reserve (expressed as a positive number) .....................................   $____________
          (c)  Inventory shipped or delivered on consignment, sale or return, or similar terms.....................   $____________
          (d)  Inventory in transit (except inventory in transit from Motorola, Nokia or Ericsson to the Companies'
               main warehouse in Carrollton, Texas, the Companies' warehouse with Circle Freight at DFW Airport,
               Texas, or any of the Companies' warehouses in Miami, Florida or Chino, California, which is
               properly documented and insured pursuant to shipping documents and insurance, and proof thereof,
               satisfactory to the Agent)..........................................................................   $____________
          (e)  Inventory which is offsite, except offsite inventory covered by a waiver and agreement
               satisfactory to Agent ..............................................................................   $____________
          (f)  Service or repair parts or equipment ...............................................................   $____________
          (g)  Inventory located at location for which required landlord's waiver not received ....................   $____________
          (h)  Inventory subject to dispute as to any Company's title or right to possession ......................   $____________
          (i)  Inventory located outside of the United States of America ..........................................   $____________
          (j)  Inventory not in good condition or that does not comply with any applicable law or governmental
               standard for manufacture, use, or sale .............................................................   $____________
          (k)  Inventory determined to be unmarketable by the Agent ...............................................   $____________
          (l)  Inventory subject to a lien other than liens held by the Agent or permitted by Section 10.2 of the
               Credit Agreement ...................................................................................   $____________
7.   Total Ineligible Inventory (sum of Lines 6(a)-(l)) ...........................................................   $____________
8.   Total Eligible Inventory of Companies (Line 5 minus Line 7) ..................................................   $____________
9.   Eligible Analog Inventory (amount of Eligible Inventory consisting of analog phones)..........................   $____________
10.  Eligible Non-Analog Inventory (Line 8 minus Line 9)...........................................................   $____________

BORROWING BASE:
11.  Total Eligible Accounts (Line 4) .............................................................................   $____________
12.  Total Eligible Inventory (Line 8) ............................................................................   $____________
13.  Eligible Analog Inventory (Line 9)............................................................................   $____________
14.  Eligible Non-Analog Inventory (Line 10).......................................................................   $____________
15.  80% of Line 11................................................................................................   $____________
16.  60% of the Total Commitment Amount............................................................................   $____________
17.  40% of Line 13................................................................................................   $____________
18.  50% of Line 14 ...............................................................................................   $____________
19.  Sum of Line 17 plus Line 18...................................................................................   $____________
20.  Lesser of Line 16 or Line 19..................................................................................   $____________
21.  Borrowing Base:  Sum of Line 15 plus Line 20..................................................................   $____________
22.  Outstanding Principal Amount of Advances .....................................................................   $____________
23.  Outstanding Letter of Credit Liabilities .....................................................................   $____________
24.  Sum of Line 22 plus Line 23...................................................................................   $____________
25.  Available Credit Amount or amount to be paid if negative (the lesser of the Total Commitment Amount or Line
     21, minus Line 24)............................................................................................   $____________
</TABLE>

       The Borrower further represents and warrants to the Agent and the Banks
that the representations and warranties contained in Article VIII of the Credit
Agreement 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, and that no Default has occurred
and is continuing.

Date _____________________                       NATIONAL AUTO CENTER, INC.

                                                 By: ___________________________
                                                     Name: _____________________
                                                     Title:_____________________

cc:    The Chase Manhattan Bank
       Agency Services
       One Chase Manhattan Plaza, 8/th/ Floor
       New York, New York  10081
       Attention:  Deborah Rockower
                   Muniram Appana
Fax No:  (212) 522-5777

BORROWING BASE REPORT - Page 2
<PAGE>

                                   ANNEX III

                                 SCHEDULE 9.12
                                      TO
                     AMENDED AND RESTATED CREDIT AGREEMENT

                   Calculation of Fees Under Fee Agreements
                   ----------------------------------------

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00012-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00012-of-00352.parquet"}]]