Document:

<PAGE>

                                                                   Exhibit 10.22

            SECOND AMENDMENT AND WAIVER, dated as of October 20, 2000 (this
"AMENDMENT"), to the Credit Agreement, dated as of April 29, 1998 (as amended by
the First Amendment to the Credit Agreement, dated as of October 22, 1999, the
"CREDIT AGREEMENT"), among GROVE WORLDWIDE LLC, a Delaware limited liability
company (the "COMPANY"), GROVE CAPITAL, INC., a Delaware corporation and a
Wholly Owned Subsidiary of the Company ("GROVE CAPITAL"; the Company and Grove
Capital, individually, a "BORROWER" and collectively, the "Borrowers"), the
several banks and other financial institutions or entities from time to time
parties to this Agreement (collectively, the "LENDERS"; individually, a
"LENDER") and THE CHASE MANHATTAN BANK, as Administrative Agent (as hereinafter
defined) for the Lenders hereunder.

                              W I T N E S S E T H:

            WHEREAS, pursuant to the Credit Agreement, the Lenders have agreed
to make, and have made, certain loans and other extensions of credit to the
Borrowers; and

            WHEREAS, the Borrowers have requested, and, upon this Amendment
becoming effective, the Required Lenders have agreed that certain provisions of
the Credit Agreement be amended in the manner provided for in this Amendment.

            NOW, THEREFORE, in consideration of the premises contained herein,
the parties hereto hereby agree as follows:

            1. DEFINED TERMS. Terms defined in the Credit Agreement and used
      herein shall have the meanings given to them in the Credit Agreement.

            2. AMENDMENTS TO SECTION 1 OF THE CREDIT AGREEMENT. Subsection 1.1
      of the Credit Agreement is hereby amended as follows:

            (a) by adding the following definitions in their proper alphabetical
                order:

            "ACCOUNTS": all of the accounts, instruments, documents, chattel
      paper and general intangibles of the Borrower or any of its Subsidiaries,
      whether secured or unsecured, whether now existing or hereafter created or
      arising, and whether or not specifically assigned to the Administrative
      Agent for the ratable benefit of the Lenders.

            "ACCOUNT DEBTOR": the Person obligated on an Account.

            "BILL AND HOLD": Accounts that have been invoiced but for which the
      related goods have not been shipped (other than Accounts for which the
      customer purchase order and Included Divisions' order acknowledgment and
      invoice acknowledge the transfer of title upon final testing and
      inspection of the unit up to a maximum of $1,000,000 in any one month,
      PROVIDED, that such Account is not more than 30 days past the invoice
      date).

<PAGE>
                                                                               2

            "BORROWING BASE": at any date, the amount of the then most recent
      computation of the Borrowing Base, determined by calculating the amount
      equal to:

            (a) 85% of (i) Domestic Eligible Accounts minus (ii) the applicable
                Dilution Reserve at such date;

            PLUS

            (b) 50% of (i) Deutsche Grove Eligible Accounts minus (ii) the
                applicable Dilution Reserve;

            (c) 25% of Eligible Raw Materials;

            (d) 25% of Eligible Work-in-Process;

            (e) 55% of Domestic Eligible Finished Goods;

            (f) 25% of (i) Deutsche Grove Eligible Finished Goods minus (ii) the
                Reserve for Leasehold Obligations; and

            (g) 20% of Eligible Service Parts.

      Borrowing Base standards may be fixed and revised from time to time by the
      Administrative Agent in the Administrative Agent's Permitted Discretion
      with ten days prior notice to the Company. The Borrowing Base will be
      computed hereunder by the Company on a monthly basis based on information
      available to the Administrative Agent including, without limitation, the
      periodic reports and listings delivered to the Administrative Agent in
      accordance with Section 6, and a monthly Borrowing Base Certificate from a
      Responsible Officer of the Borrower presenting the Borrower's computation
      of the Borrowing Base will be periodically delivered to the Administrative
      Agent in accordance with Section 6.12(a).

            "BORROWING BASE CERTIFICATE": a certificate duly executed by a
      Responsible Officer substantially in the form of Exhibit M.

            "COMMERZBANK FACILITY": the cash credit line in the amount of DM
      51,000,000 from Commerzbank (Wilhelmshaven) and Deutsche Bank to Deutsche
      Grove GmbH, dated September 2000.

            "DEUTSCHE GROVE": a division of Grove Worldwide Holdings
      Germany GmbH in accordance with the Borrower's current and
      historical classification.

            "DEUTSCHE GROVE ELIGIBLE ACCOUNTS": on any date of determination
      thereof, all Accounts of Deutsche Grove on such date, that (i) have been
      invoiced and represent the bona fide sale of merchandise in the ordinary
      course of business in connection with its trade operations and (ii) are
      deemed by the Administrative Agent in good faith to be eligible for
      inclusion in the calculation of the Borrowing Base. Without limiting the
      foregoing, to qualify as a Deutsche Grove Eligible Account, an Account
      shall indicate

<PAGE>
                                                                               3

      Deutsche Grove (whether by legal or trade name) as sole payee and as sole
      remittance party. In determining the amount to be so included, the face
      amount of Accounts shall be reduced, without duplication, by (a) the
      aggregate amount of all cash received in respect of the Accounts but not
      yet applied by Deutsche Grove to reduce the amount of Accounts, (b) the
      amount of all actual returns, discounts, claims, credits, charges, price
      adjustments or other adjustments asserted or taken by Account Debtors of
      Deutsche Grove (to the extent the same are included in Accounts), (c) the
      amount of Deutsche Grove Finance Company Receivables and (d) the aggregate
      amount of all other reserves, limits and deductions provided for in this
      definition and elsewhere in this Agreement.

            Standards of eligibility for Accounts may be fixed and revised from
      time to time solely by the Administrative Agent in the Administrative
      Agent's Permitted Discretion with ten days prior notice by the
      Administrative Agent to the Borrower.

            In general, without limiting the foregoing, a Deutsche Grove
      Eligible Account must comply with all of the following requirements
      (unless otherwise approved from time to time in writing by the
      Administrative Agent):

            (a) all payments due on the Account have been billed and invoiced in
                a timely fashion and in the normal course of business;

            (b) no payment on any invoice is outstanding on the Account for more
                than 90 days after the date of invoice or is more than 60 days
                past due (to be reduced by the net credit balances within these
                categories);

            (c) such Account is not an extended terms account, payment plan, or
                single contract account which offers terms of more than 30 days
                from invoice date;

            (d) the payments due on 50% or more of all Accounts owing to
                Deutsche Grove by the applicable Account Debtor are less than 90
                days past the date of invoice;

            (e) the total Accounts owing to Deutsche Grove by the applicable
                Account Debtor constitute 10% or less of the aggregate Accounts
                owing to Deutsche Grove by all Account Debtors, or if the total
                Accounts of the applicable Account Debtor exceed 10% of the
                aggregate of all Accounts owing to Deutsche Grove by all Account
                Debtors, the Accounts of the applicable Account Debtor up to
                such 10% limit shall be deemed to constitute Deutsche Grove
                Eligible Accounts (subject to compliance with all other
                applicable standards of eligibility) and the Accounts of the
                applicable Account Debtor exceeding such 10% limit shall be
                included within Deutsche Grove Eligible Accounts (subject to
                compliance with all other applicable standards of eligibility)
                only if the Accounts exceeding such 10% limit are backed or
                secured by credit insurance or a guarantee issued by a bank
                reasonably satisfactory to the Administrative Agent in all
                respects and such credit insurance or such guarantee has been
                assigned to

<PAGE>
                                                                               4

                or issued in favor of, as the case may be, the Administrative
                Agent upon terms acceptable to the Administrative Agent in its
                discretion;

            (f) the Account (x) is free and clear of all security interests,
                liens, charges and encumbrances of any nature whatsoever (except
                for the Lien in favor of the Administrative Agent and any Lien
                under the Commerzbank Facility) and (y) has not been sold or
                factored to Commerzbank under the Commerzbank Facility;

            (g) the Account arose from a completed, outright and lawful sale of
                goods, to which title has passed to the applicable Account
                Debtor on an absolute sales basis, or from the rendering of
                services by or on behalf of Deutsche Grove;

            (h) the Account does not arise out of a bill and hold,
                sale-or-return, consignment, memo, progress billing,
                promotional, sample or trial basis, C.O.D. or cash in advance
                arrangement or is subject to any setoff, contra (any amount for
                which there is an offsetting liability from Deutsche Grove),
                offset, deduction, dispute, chargeback, credit, counterclaim,
                subject to retainage or holdbacks of any type or other defense
                arising out of the transactions represented by the Account or
                independently thereof;

            (i) the applicable Account Debtor is not any Governmental Authority,
                unless there has been compliance satisfactory to the
                Administrative Agent in all respects with the Assignment of
                Claims Act or similar foreign statutes;

            (j) the applicable Account Debtor is not an Affiliate of Deutsche
                Grove or any of its Subsidiaries or an employee, officer, sales
                representative, agent or shareholder thereof;

            (k) the Account Debtor must be located in the United States, France,
                Germany, Italy, Spain, Switzerland or the United Kingdom or in
                another foreign jurisdiction acceptable to the Administrative
                Agent, except for Accounts insured or backed by credit insurance
                or a letter of credit in form and substance acceptable to the
                Administrative Agent in all respects;

            (l) the Account complies with all material Requirements of Law
                (including without limitation, all usury laws, fair credit
                reporting and billing laws, fair debt collection practices and
                rules, and regulations relating to truth in lending and other
                similar matters);

            (m) the Account is in full force and effect and constitutes a legal,
                valid and binding obligation of the applicable Account Debtor
                enforceable in accordance with the terms thereof;

            (n) the Account is denominated in and provides for payment by the
                applicable Account Debtor in Dollars, Deutsche Marks, Euros,
                Pounds Sterling or other currency acceptable to the Agent;

<PAGE>
                                                                               5

            (o) the Account has not been and is not required to be charged or
                written off as uncollectible in accordance with GAAP;

            (p) the Account Debtor (i) is not a creditor of Deutsche Grove, (ii)
                has not asserted a right of setoff against Deutsche Grove or
                (iii) has not disputed its liability (whether by chargeback or
                otherwise) or made any claim with respect to the Account or any
                other Account of Deutsche Grove which has not been resolved, in
                each case without duplication, to the extent of the amount owed
                by the borrower to the Account Debtor, the amount of such actual
                or asserted right of setoff;

            (q) the Account Debtor is solvent and is not the subject of any
                bankruptcy case or insolvency proceeding of any kind;

            (r) a check, promissory note, draft, trade acceptance or other
                instrument for the payment of money has been received, presented
                for payment and returned uncollected for any reason.

            In determining the aggregate amount of Accounts from the same
      Account Debtor that are unpaid more than 90 days from the date of invoice
      or more than 60 days from the due date pursuant to clause (b) above, there
      shall be excluded the amount of any net credit balances relating to
      Accounts with invoice dates more than 90 days prior to the date of
      determination or more than 60 days from the due date.

            "DEUTSCHE GROVE ELIGIBLE FINISHED GOODS": on any date, the Inventory
      Value of Finished Goods of Deutsche Grove (subject to the same standards
      of eligibility as set forth in the definition of "Eligible Inventory"
      hereunder) on such date as determined by an analysis of production reports
      or physical inspection of work-in-process in accordance with the current
      and historical classification of finished goods excluding prototypes,
      demonstrators, used cranes and manlifts, and rental cranes and manlifts.

            "DEUTSCHE GROVE FINANCE COMPANY RECEIVABLES": 10% of the value of
      Accounts that are less than 90 days from invoice date and owed from
      customers that have refinanced their receivables with finance companies
      that Deutsche Grove has agreed to provide residual value guarantees in
      excess of 10%. The Administrative Agent may adjust this percentage based
      on a quarterly review of a supporting documents submitted in accordance
      with Section 6.12.

            "DILUTION FACTORS": with respect to any period, the aggregate amount
      of all gross deductions, credit memos, returns, adjustments, allowances,
      bad debt write-offs and other non-cash credits to Accounts of the Included
      Divisions (or, for purposes of calculating the applicable Dilution Reserve
      in the case of Deutsche Grove, Accounts of Deutsche Grove) arising from
      transactions conducted in the normal course of business.

            "DILUTION RATIO": at any date, the amount (expressed as a
      percentage) equal to (a) the aggregate amount of the applicable Dilution
      Factors for the 12 most recently ended fiscal months DIVIDED by (b) total
      gross sales of the Included Divisions or Deutsche Grove, as the case may
      be, for the 12 most recently ended fiscal months; provided that

<PAGE>
                                                                               6

      the Dilution Ratio for Deutsche Grove be fixed at the higher of 12.0% or
      the most recently calculated dilution ratio until such time as Deutsche
      Grove has provided six consecutive months of rollforward data as detailed
      at Exhibit M hereto that is acceptable to the Administrative Agent (at
      which time the Dilution Ratio shall be the amount most recently
      calculated).

            "DILUTION RESERVE": at any date the applicable Dilution Ratio
      multiplied by the Domestic Eligible Accounts (or, for purposes of
      calculating the applicable Dilution Reserve in the case of Deutsche Grove,
      the Deutsche Grove Eligible Accounts) on such date.

            "DOMESTIC ELIGIBLE ACCOUNTS": on any date of determination thereof,
      all Accounts of the Included Divisions on such date, that (i) have been
      invoiced and represent the bona fide sale of merchandise in the ordinary
      course of business in connection with its trade operations and (ii) are
      deemed by the Administrative Agent in good faith to be eligible for
      inclusion in the calculation of the Borrowing Base. Without limiting the
      foregoing, to qualify as a Domestic Eligible Account, an Account shall
      indicate the Included Division (whether by legal or trade name) as sole
      payee and as sole remittance party. In determining the amount to be so
      included, the face amount of Accounts shall be reduced, without
      duplication, by (a) the aggregate amount of all cash received in respect
      of the Accounts but not yet applied by the Included Divisions to reduce
      the amount of Accounts, (b) the amount of all actual returns, discounts,
      claims, credits, charges, price adjustments or other adjustments asserted
      or taken by Account Debtors of the Included Divisions (to the extent the
      same are included in Accounts), and (c) the aggregate amount of all other
      reserves, limits and deductions provided for in this definition and
      elsewhere in this Agreement.

            Standards of eligibility for Accounts may be fixed and revised from
      time to time solely by the Administrative Agent in the Administrative
      Agent's Permitted Discretion with ten days prior notice by the
      Administrative Agent to the Borrower.

            In general, without limiting the foregoing, a Domestic Eligible
      Account must comply with all of the following requirements (unless
      otherwise approved from time to time in writing by the Administrative
      Agent):

            (a) all payments due on the Account have been billed and invoiced in
                a timely fashion and in the normal course of business;

            (b) no payment on any invoice is outstanding on the Account for more
                than 90 days after the date of invoice or is more than 60 days
                past due (to be reduced by the net credit balances within these
                categories);

            (c) such Account is not an extended terms account which offers terms
                of more than 30 days from invoice date;

            (d) the payments due on 50% or more of all Accounts owing to the
                Included Divisions by the applicable Account Debtor are less
                than 90 days past the date of invoice;

<PAGE>
                                                                               7

            (e) the total Accounts owing to the Included Divisions by the
                applicable Account Debtor constitute 10% or less of the
                aggregate Accounts owing to the Included Divisions by all
                Account Debtors, or if the total Accounts of the applicable
                Account Debtor exceed 10% of the aggregate of all Accounts owing
                to the Included Divisions by all Account Debtors, the Accounts
                of the applicable Account Debtor up to such 10% limit shall be
                deemed to constitute Domestic Eligible Accounts (subject to
                compliance with all other applicable standards of eligibility)
                and the Accounts of the applicable Account Debtor exceeding such
                10% limit shall be included within Domestic Eligible Accounts
                (subject to compliance with all other applicable standards of
                eligibility) only if the Accounts exceeding such 10% limit are
                backed or secured by credit insurance or a guarantee issued by a
                bank reasonably satisfactory to the Administrative Agent in all
                respects and such credit insurance or such guarantee has been
                assigned to or issued in favor of, as the case may be, the
                Administrative Agent upon terms acceptable to the Administrative
                Agent in its discretion;

            (f) the Account is free and clear of all security interests, liens,
                charges and encumbrances of any nature whatsoever (except for
                the Lien in favor of the Administrative Agent);

            (g) the Account arose from a completed, outright and lawful sale of
                goods, to which title has passed to the applicable Account
                Debtor on an absolute sales basis, or from the rendering of
                services by or on behalf of any Included Division;

            (h) the Account constitutes an "account" within the meaning of the
                Uniform Commercial Code of the state in which such Included
                Division's principal offices are located;

            (i) the Account does not arise out of a Bill and Hold,
                sale-or-return, consignment, memo, progress billing,
                promotional, sample or trial basis, C.O.D. or cash in advance
                arrangement or is subject to any setoff, contra (any amount for
                which there is an offsetting liability from any Included
                Division), offset, deduction, dispute, chargeback, credit,
                counterclaim, subject to retainage or holdbacks of any type or
                other defense arising out of the transactions represented by the
                Account or independently thereof;

            (j) the applicable Account Debtor is not any authority of the United
                States of America, unless there has been compliance satisfactory
                to the Administrative Agent in all respects with the Assignment
                of Claims Act or similar state statutes;

            (k) the applicable Account Debtor is not an Affiliate of any
                Included Division or any of their Subsidiaries or an employee,
                officer, sales representative, agent or shareholder thereof;

<PAGE>
                                                                               8

            (l) the Account Debtor must be located in the United States, Canada
                or another foreign jurisdiction acceptable to the Administrative
                Agent (PROVIDED, that, in the case of such other foreign
                jurisdiction, only 50% of the Account is eligible for inclusion
                as a Domestic Eligible Account providing that all of the other
                conditions set forth in clauses (l) through (t) of this
                definition have been complied with), except for Accounts insured
                or backed by credit insurance or a letter of credit in form and
                substance acceptable to the Administrative Agent in all
                respects;

            (m) the Account complies with all material Requirements of Law
                (including without limitation, all usury laws, fair credit
                reporting and billing laws, fair debt collection practices and
                rules, and regulations relating to truth in lending and other
                similar matters);

            (n) the Account is in full force and effect and constitutes a legal,
                valid and binding obligation of the applicable Account Debtor
                enforceable in accordance with the terms thereof;

            (o) the Account is denominated in and provides for payment by the
                applicable Account Debtor in Dollars;

            (p) the Account has not been and is not required to be charged or
                written off as uncollectible in accordance with GAAP;

            (q) if the Account is owing by an Account Debtor for which the
                applicable Included Division must have filed a "Notice of
                Business Activities Report" or similar report in a state or
                states where failure to comply with such filing of notice
                precludes bringing suit against the applicable Account Debtor,
                the applicable Included Division must have filed such requisite
                activities report or other similar report and otherwise be in
                full compliance with such Requirement of Law;

            (r) the Account Debtor (i) is not a creditor of any Included
                Division, (ii) has not asserted a right of setoff against such
                Included Division or (iii) has disputed its liability (whether
                by chargeback or otherwise) or made any claim with respect to
                the Account or any other Account of any Included Division which
                has not been resolved, in each case without duplication, to the
                extent of the amount owed by the borrower to the Account Debtor,
                the amount of such actual or asserted right of setoff, or the
                amount to such dispute or claim as the case may be;

            (s) the Account Debtor is solvent and is not the subject of any
                bankruptcy case or insolvency proceeding of any kind;

            (t) a check, promissory note, draft, trade acceptance or other
                instrument for the payment of money has been received, presented
                for payment and returned uncollected for any reason.

<PAGE>
                                                                               9

      In determining the aggregate amount of Accounts from the same Account
      Debtor that are unpaid more than 90 days from the date of invoice or more
      than 60 days from the due date pursuant to clause (b) above, there shall
      be excluded the amount of any net credit balances relating to Accounts
      with invoice dates more than 90 days prior to the date of determination or
      more than 60 days from the due date.

            "DOMESTIC ELIGIBLE FINISHED GOODS": on any date, that part of
      Eligible Inventory consisting of Finished Goods of the Included Divisions
      on such date as determined by an analysis of production reports or
      physical inspection of work-in-process in accordance with the current and
      historical classification of finished goods excluding prototypes,
      demonstrators, used cranes and manlifts and rental cranes and manlifts.

            "ELIGIBLE INVENTORY": on any date, the Inventory Value of the
      Included Divisions and Deutsche Grove (but only (with respect to the
      Included Divisions) to the extent that such inventory is subject to a
      first priority perfected Lien in favor of the Administrative Agent for the
      ratable benefit of the Lenders) less, without duplication, Inventory
      Reserves.

            Standards of eligibility for inventory may be fixed and revised from
      time to time solely by the Administrative Agent in the Administrative
      Agent's Permitted Discretion with ten days prior notice by the
      Administrative Agent to the Borrower. In general, without limiting the
      foregoing, Inventory shall in no event be considered as Eligible Inventory
      without complying with the following requirements:

            (a) such inventory is in good condition, meets all standards imposed
                by any Governmental Authority having regulatory authority over
                it, is not repair or replacement parts for machinery and
                equipment, is not returned, defective or damaged or undergoing
                quality review, is not seconds or thirds or stale or obsolete or
                slow moving or unmerchantable, or does not otherwise conform to
                the representations and warranties contained in the Loan
                Documents; is not packaging or shipping supplies or materials
                and is currently usable in the manufacturing process or saleable
                in the normal course of business of any of the Included
                Divisions and Deutsche Grove;

            (b) such inventory is not in the possession of or control of any
                warehouseman, bailee, or any agent or processor for or customer
                of the Included Divisions, unless such warehouseman, bailee,
                agent, processor, or customer has subordinated any Lien it may
                claim therein pursuant to a written subordination agreement
                reasonably acceptable to Administrative Agent and Deutsche Grove
                (exclusive of up to $3,000,000 of Inventory in transit among any
                of the Included Divisions and/or Deutsche Grove);

            (c) such inventory must not be in transit and must be housed or
                stored in the United States at a location owned or leased by any
                of the Included Divisions and Deutsche Grove (exclusive of up to
                $3,000,000 of Inventory in transit among any of the Included
                Divisions and/or Deutsche Grove);

<PAGE>
                                                                              10

            (d) if such inventory is housed or stored at a location which is
                leased, and not owned by any of the Included Divisions and
                Deutsche Grove, the owner of such leased facility shall have
                subordinated or waived any Lien it may claim against such
                inventory, whether contractual or statutory, to the Lien which
                the Administrative Agent holds against such inventory for the
                ratable benefit of the Lenders pursuant to a written
                subordination or waiver agreement acceptable to the
                Administrative Agent in all respects;

            (e) such inventory must be adequately insured to the reasonable
                satisfaction of the Administrative Agent pursuant to insurance
                coverage fulfilling the requirements of Section 6.5 and of the
                Security Documents; and

            (f) the Administrative Agent has not deemed such inventory
                ineligible because the Administrative Agent reasonably considers
                the value thereof to be impaired or its ability to realize such
                value to be insecure.

            "ELIGIBLE RAW MATERIALS": on any date, that part of Eligible
      Inventory consisting of Raw Materials of the Included Divisions on such
      date as shown on the Included Divisions' perpetual inventory records in
      accordance with their current and historical classification of raw
      materials excluding return to vendor or defective items, offsite
      inventory, paints, miscellaneous packaging and supplies, chemicals
      including but not limited to oil and anti-freeze, decal kits, materials
      issued for research and development, items under quality review and
      prototypes.

            "ELIGIBLE SERVICE PARTS": on any date, the Inventory Value of
      Service Parts of the Included Divisions (subject to the same standards of
      eligibility as set forth in the definition of "Eligible Inventory"
      hereunder) on such date as shown on the Included Divisions' perpetual
      inventory records in accordance with their current and historical
      classification of service parts.

            "ELIGIBLE WORK-IN-PROCESS": on any date, that part of Eligible
      Inventory consisting of Work-In-Process of the Included Divisions (subject
      to the same standards of eligibility as set forth in the definition of
      "Eligible Inventory" hereunder) on such date that constitutes
      work-in-process as shown on the Included Divisions' perpetual inventory
      records or equivalent reporting in accordance with their current and
      historical classification of work-in-process excluding prototypes.

            "FINISHED GOODS": goods to be sold by the Included Divisions or
      Deutsche Grove in the normal course of business.

            "FIRST AMENDMENT": the First Amendment, dated as of October 22,
      1999, to the Agreement.

            "GROVE US CRANE": a division of Grove U.S. LLC in accordance with
      the Borrower's current and historical classification

            "GROVE US MANLIFT": a division of Grove U.S. LLC in accordance with
      the Borrower's current and historical classification.

<PAGE>
                                                                              11

            "GROVE US SERVICE PARTS": a reporting division of Grove US Crane
      that provides aftermarket services to Grove US Crane and Grove US Manlift
      customers.

            "INACTIVE, EXCESS AND OBSOLETE INVENTORY RESERVE": the reserve
      calculated by the Included Divisions or Deutsche Grove for such Inventory
      in accordance with their current and historical accounting practices,
      PROVIDED, that for Grove US Crane the reserve is equal to 100% of the
      Inventory Value of items that are no longer in use or for which there are
      excess quantities on hand.

            "INCLUDED DIVISIONS": Grove US Crane, Grove US Manlift, Grove US
      Service Parts and National Crane.

            "INVENTORY": all Raw Materials, Work-in-Process, and Finished Goods
      owned by the Included Divisions in the normal course of business.

            "INVENTORY RESERVES": with respect to Inventory of the Included
      Divisions at any date, the amount equal to the sum of, without
      duplication, (i) the amount by which the value of the perpetual Inventory
      or other similar reporting on such date exceeds the value of the Inventory
      on the general ledger on such date, (ii) any profits or transfer price
      additions accrued in connection with transfer of such Inventory among the
      Included Divisions or among the Subsidiaries of the Borrower, (iii) any
      cumulative gross favorable variance capitalized to Inventory based on
      inventory turnover (production material, production manufacturing,
      purchase price variance, or other variance categories) that result when
      standard costs are greater than actual costs, (iv) the amount of any
      Inactive, Excess and Obsolete Inventory Reserve, (v) the amount of any
      reserve maintained for shrinkage and markdowns in accordance with their
      respective historical accounting practices and (vi) the amount of any
      accrued actual costs and expenses (such as freight duty and insurance)
      required to be paid by the Included Divisions in order to take possession
      at a facility of the company and the Included Divisions of any Inventory
      which is then in transit and which is included in the Borrowing Base.

            "INVENTORY VALUE": a dollar amount equal to the lesser of (i) the
      standard cost of Inventory determined on a basis consistent with GAAP and
      with the Included Divisions' current and historical accounting practice or
      (ii) the market value of such Inventory; PROVIDED, HOWEVER that (a) in the
      event variances under the standard cost method are capitalized, favorable
      variances shall be deducted from Eligible Inventory Value and unfavorable
      variances shall not be added to Eligible Inventory Value, and (b) in the
      event variances under the standard cost method are expensed, a reserve
      shall be determined as appropriate in order to adjust the standard cost of
      Eligible Inventory Value to approximate actual cost.

            "NATIONAL CRANE": National Crane Corporation.

            "PERMITTED DISCRETION": the Administrative Agent's reasonable
      judgment exercised in good faith and based upon its standard practice.

            "RAW MATERIALS": materials used or consumed in the manufacture of
      goods to be sold by the Included Divisions in the normal course of
      business.

<PAGE>
                                                                              12

            "RESERVE FOR LEASEHOLD OBLIGATIONS": means an amount equal to three
      times Deutsche Grove's monthly rent expense (as recorded on the Borrower's
      financial statements for "leasehold inventory expense") for the most
      recently ended fiscal month for which a Borrowing Base Certificate has
      been delivered, in respect of all leased warehouse properties where
      Eligible Inventory is stored.

            "SECOND AMENDMENT": the Second Amendment and Waiver, dated as of
      October 20, 2000, to this Agreement.

            "SECOND AMENDMENT EFFECTIVE DATE": October 20, 2000.

            "SERVICE PARTS": goods used in the servicing of cranes or manlifts
      manufactured by an Included Division.

            "WORK-IN-PROCESS": materials currently under manufacture by an
      Included Division and to be sold in the normal course of business.

            (b) by deleting therefrom the definition of the following defined
      term and substituting in lieu thereof the following definition:

      "CONSOLIDATED EBITDA": for any period, Consolidated Net Income for such
      period PLUS, without duplication and to the extent reflected as a charge
      in the statement of such Consolidated Net Income for such period, the sum
      of (a) income tax expense and distributions to the direct and indirect
      members of Holdings in lieu of taxes, (b) Consolidated Interest Expense,
      non-cash interest expense not included in Consolidated Interest Expense,
      amortization or writeoff of debt discount and debt issuance costs and
      commissions, discounts and other fees and charges associated with
      Indebtedness (including the Loans), (c) depreciation and amortization
      expense and other non-cash charges, (d) amortization or write-off of
      intangibles (including goodwill) and organization costs, (e) the aggregate
      amount of up-front or one-time fees or expenses payable in respect of
      Interest Rate Protection Agreements during such period (to the extent
      deducted in determining Consolidated Net Income for such period), PLUS (f)
      for the periods of four consecutive fiscal quarters of the Company ended
      June 30, 2001, September 30, 2001 and December 31, 2001 (and for the
      purposes of Section 7.1(d) only, the periods set forth in Section 7.1(d)),
      direct and indirect costs of restructuring as reasonably estimated by the
      Company and reported to the Administrative Agent not to exceed $2,500,000
      in an aggregate amount after September 1, 2000, PROVIDED, that such costs
      are incurred during or prior to the fiscal quarter ended March 31, 2001,
      PLUS (g) the amount of unrealized foreign exchange losses (net of any
      gains) (or MINUS the amount of unrealized foreign exchange gains (net of
      any losses)) MINUS, without duplication and to the extent included in the
      statement of such Consolidated Net Income for such period, the sum of (a)
      other non-cash income and (b) gains relating to a Disposition of Property
      described in Section 7.5(h) not to exceed $4,100,000.";

            (c) by amending the definition of "ASSET SALE" therein by adding
      after the words "clause (g)" in the parentheses in such definition the
      words "and (h)";

<PAGE>
                                                                              13

            (d) by amending the definition of "FOREIGN PLEDGE AGREEMENTS"
      therein by deleting the references to "65%" therefrom and substituting in
      lieu thereof the percentage "100%";

            (e) by amending the definition of "CONSOLIDATED FIXED CHARGE
      COVERAGE RATIO" therein by adding immediately prior to the period at the
      end of such definition the following:

      (excluding, to the extent reflected therein, the amendment fee required
      pursuant to the terms of Section 17(a)(ii) of the Second Amendment)

            (f) by amending the definition of "PERMITTED ACQUISITION" therein by
      deleting the reference to "Amendment Effective Date" therefrom and
      substituting in lieu thereof the words "Second Amendment Effective Date".

            3. AMENDMENTS TO SECTION 2 OF THE CREDIT AGREEMENT. (a) Subsection
      2.4 of the Credit Agreement is hereby amended (1) by adding immediately
      prior to the period at the end of the first sentence of paragraph (a)
      thereof, the following:

      PROVIDED, FURTHER, that, no Lender shall be required to make any Revolving
      Credit Loan if, after giving effect to the making of such Revolving Credit
      Loan, the Total Revolving Extensions of Credit at such time would exceed
      the Borrowing Base at such time.

      and (2) by adding thereto the following paragraph:

            (d) The Borrowers hereby agree that the aggregate amount of the
            Revolving Extensions of Credit shall not exceed (i) an average of
            $40,000,000 for at least 14 consecutive days up to and including
            April 16, 2001 and (ii) $35,000,000 for at least six consecutive
            days up to and including April 23, 2001.

            (b) Subsection 2.6 of the Credit Agreement is hereby amended (1) by
      deleting the word "and" at the end of clause (i) of the proviso in
      paragraph (a) thereof and substituting in lieu thereof a comma and (2) by
      adding immediately prior to the period at the end of clause (ii) of the
      proviso in paragraph (a) thereof, the following:

      and (iii) the Borrower shall not request, and the Swing Line Lender shall
      not make, any Swing Line Loan to the extent that, after giving effect
      thereto, the Total Revolving Extensions of Credit at such time would
      exceed the Borrowing Base at such time.

            (c) Subsection 2.9 of the Credit Agreement is hereby amended by
      adding thereto the following paragraph:

            (c) The Borrowers jointly and severally agree to pay to the
            Administrative Agent for the account of each Lender, an exit fee
            equal to 1.25% of the Commitment of such Lender on the Second
            Amendment Effective Date, and payable on the date on which all Loans
            shall have been paid in full and the Commitments terminated,
            PROVIDED, HOWEVER, that no such fee shall be payable if such date
            occurs on or before September 30, 2001.

<PAGE>
                                                                              14

            (d) Subsection 2.10 of the Credit Agreement is hereby amended by
      deleting the reference to "$1,000,000" therefrom and substituting in lieu
      thereof the amount "$250,000".

            (e) Subsection 2.12 of the Credit Agreement is hereby amended (1) by
      deleting the reference to "50%" from paragraph (a) thereof the
      substituting in lieu thereof the percentage "75%", (2) by deleting the
      word "and" at the end of clause (ii) of paragraph (c) thereof and
      substituting in lieu thereof a comma, (3) by adding immediately prior to
      the period at the end of paragraph (c) thereof, the following:

            and (iv) 100% of the Net Cash Proceeds from any Disposition of
            Property described in Section 7.5(h) shall be applied upon receipt
            as a prepayment in accordance with Section 2.12(f) without giving
            effect to any Reinvestment Notice or Reinvestment Event,

      (4) by deleting the reference to the words "PRO RATA" from paragraph (f)
      thereof, (5) by inserting immediately after the words "Term Loans" in the
      first sentence of paragraph (f) thereof, the words "in inverse order of
      maturity," and (6) by inserting immediately at the end of paragraph (f)
      thereof the following:

            Notwithstanding any other provision of this Credit Agreement, in the
            event that on or prior to March 31, 2001, an Asset Sale of any
            assets set forth on Schedule 2.12 hereto (collectively, the
            "Scheduled Assets")(each such sale collectively referred to herein
            as a "Scheduled Asset Sale") occurs, (a) the first $6,250,000 of
            such Net Cash Proceeds of such Scheduled Asset Sale shall be paid to
            the Administrative Agent to be held in an account (the "Retained
            Proceeds Account") for the benefit of the Revolving Credit Lenders,
            to which the Borrowers and their Subsidiaries shall have no right,
            title and interest, the proceeds of which shall be applied on March
            31, 2001, first, to prepay the Revolving Credit Loans to reduce the
            aggregate outstanding Revolving Extensions of Credit to $60,000,000
            and, second, to the extent that any amount remains in such account
            after reducing the Revolving Extensions of Credit to $60,000,000, to
            prepay the Term Loans in the inverse order of maturity and (b) the
            balance of such Net Cash Proceeds of such Scheduled Asset Sale above
            $6,250,000 shall be applied to prepay the Term Loans in inverse
            order of maturity on the date of the receipt of such Net Cash
            Proceeds by the Borrowers or their Subsidiaries.

      ; PROVIDED, that the amendments set forth in clauses (1), (4), (5) and (6)
      of this paragraph (e) shall only take effect upon the receipt by the
      Administrative Agent of counterparts of this Amendment duly executed and
      delivered by the Required Prepayment Lenders; PROVIDED, FURTHER, that the
      failure to satisfy this condition shall not prejudice the effectiveness of
      the other provisions of this Amendment, if otherwise effective hereunder.

            (f) Subsection 2.15 of the Credit Agreement is hereby amended by
      inserting at the end of paragraph (d) immediately before the period
      therein the following: "and provided further that interest shall be
      payable in arrears on the last day of each month

<PAGE>
                                                                              15

      commencing April 30, 2001 (PROVIDED, HOWEVER, that with respect to
      Eurodollar Loans, interest payments will be made 30 days after the first
      day of the applicable Interest Period and on the last day of such Interest
      Period).

            (g) Section 2 of the Credit Agreement is hereby amended by adding
      thereto the following subsection:

            2.27 SPECIAL CHASE REVOLVING CREDIT LOANS. (a) Notwithstanding any
            provision hereof to the contrary, if at any time after the Second
            Amendment Effective Date, the Borrowers request any Revolving Credit
            Loan or Letter of Credit after giving effect to which the Total
            Revolving Extensions of Credit exceed $64,000,000, Chase shall make
            a Revolving Credit Loan for its own account (a "Special Chase
            Revolving Credit Loan") in the amount equal to the difference
            between (a) the Total Revolving Extensions of Credit to be
            outstanding after such Revolving Credit Loan or Letter of Credit is
            made or issued and (b) the greater of $64,000,000 and the Total
            Revolving Extensions of Credit outstanding immediately prior
            thereto. Such Special Chase Revolving Credit Loan shall be used to
            fund the requested Revolving Credit Loan to the extent of the amount
            of such Special Chase Revolving Credit Loan if a Revolving Credit
            Loan has been requested or shall be used to prepay ratably the other
            outstanding Revolving Credit Loans (including the other outstanding
            Revolving Credit Loans of Chase) if a Letter of Credit has been
            requested.

            (b) So long as no Event of Default has occurred and is continuing,
            any prepayment of the Revolving Credit Loans shall be applied,
            first, to any outstanding Special Chase Revolving Credit Loan
            (except that any prepayment upon a Scheduled Asset Sale or with
            proceeds therefrom (including with any proceeds held in the Retained
            Proceeds Account) shall be applied ratably to the Special Chase
            Revolving Credit Loans and to that portion of other Revolving Credit
            Loans which is equal to the difference between the Total Revolving
            Extensions of Credit (less the Special Chase Revolving Credit Loans
            outstanding at such time) and $60,000,000), and any reduction in the
            aggregate outstanding L/C Obligations when any Special Chase
            Revolving Credit Loan is outstanding shall be accompanied by a
            borrowing of Revolving Credit Loans in an amount equal to the lesser
            of (x) such reduction in the aggregate outstanding L/C Obligations
            and (y) the outstanding Special Chase Revolving Credit Loans, with
            such Revolving Credit Loans to be applied to prepay the Special
            Chase Revolving Credit Loans.

            (c) No Special Chase Revolving Credit Loans shall be made after
            March 31, 2001 or, if earlier, any date on which the Revolving
            Credit Commitments are reduced to $64,000,000 or less. After the
            Second Amendment Effective Date, no Swing Line Loans shall be made
            if the effect thereof would be to increase the Total Revolving
            Extensions of Credit to an amount in excess of $64,000,000. The
            provisions of this Section 2.27 shall not become effective (and
            after the Second Amendment Effective Date, no Revolving Credit Loans
            or Letters of Credit shall be made or issued which would increase
            the Total Revolving Extensions of Credit

<PAGE>
                                                                              16

            to an amount in excess of $64,000,000) until Chase has notified the
            Borrowers and the Lenders of the effectiveness of this Section.

      ;PROVIDED, that, the amendments set forth in this Section 4(g) shall only
      take effect upon the receipt by the Administrative Agent of counterparts
      of this Amendment duly executed and delivered by the Required Prepayment
      Lenders; PROVIDED, FURTHER, that the failure to satisfy this condition
      shall not prejudice the effectiveness of the other provisions of this
      Amendment, if otherwise effective hereunder.

            4. AMENDMENT TO SECTION 3 OF THE CREDIT AGREEMENT. Subsection 3.1 of
      the Credit Agreement is hereby amended (1) by deleting the word "or" at
      the end of clause (i) of the proviso in the first sentence of paragraph
      (a) thereof and substituting in lieu thereof a comma and (2) by adding
      immediately prior to the period at the end of clause (ii) of the proviso
      in the first sentence of paragraph (a) thereof, the following:

      and (iii) the Total Revolving Extensions of Credit at such time would
      exceed the Borrowing Base at such time.

            5. AMENDMENT TO SECTION 4 OF THE CREDIT AGREEMENT. Subsection 4.16
      of the Credit Agreement is hereby amended by deleting the proviso at the
      end of clause (c) thereof in its entirety.

            6. AMENDMENT TO SECTION 5 OF THE CREDIT AGREEMENT. Subsection 5.2 of
      the Credit Agreement is hereby amended, by adding thereto the following
      subsection:

            (c) BORROWING BASE. After giving effect to the Revolving Extensions
            of Credit requested to be made on any such date and the use of
            proceeds thereof, the aggregate amount of the outstanding Revolving
            Extensions of Credit at such time shall not exceed the Borrowing
            Base at such time.

            7. AMENDMENTS TO SECTION 6 OF THE CREDIT AGREEMENT. (a) Subsection
      6.1 of the Credit Agreement is hereby amended by deleting the reference to
      "50 days" from paragraph (c) thereof and substituting in lieu thereof the
      words "30 days".

            (b) Subsection 6.2 of the Credit Agreement is hereby amended (1) by
      adding immediately prior to the semi-colon at the end of paragraph (b)
      thereof, the following:

      , PROVIDED, that, in addition to the delivery of the foregoing, a
      Compliance Certificate for the fiscal quarter ended March 31, 2001 and
      containing the most current financial information available at that time
      for such period, shall be furnished to the Administrative Agent and each
      Lender (through the Administrative Agent) no later than April 20, 2001

(2) by deleting the word "and" at the end of paragraph (f) thereof, (3) by
inserting immediately after paragraph (f) thereof the following new paragraphs
(g) and (h):

            (g) weekly, the cash flow projections of the Company for
            each of the following 13 weeks;

<PAGE>
                                                                              17

            (h) on or before February 28, 2001, a three-year business plan that
            includes, among other things, the Company's analysis of strategic
            alternatives and plans for recapitalization, refinancing and
            repayment of its outstanding Indebtedness; and

and (4) by relettering the existing paragraph (g) thereof as paragraph (i).

            (c) Subsection 6.10 of the Credit Agreement is hereby amended by
      deleting the reference to "65%" in paragraph (c) thereof and substituting
      in lieu thereof the percentage "100%";

            (d) Section 6 of the Credit Agreement is hereby amended by adding
thereto the following subsection:

            6.12 BORROWING BASE CERTIFICATE; COLLATERAL REVIEW RIGHTS;
            ADDITIONAL RESERVES. (a) Furnish to the Administrative Agent, as
            soon as available and in any event within twenty (20) days after the
            end of each fiscal month beginning with the month ending September
            30, 2000 (or within twenty five (25) days after the end of each
            fiscal month occurring on or prior to November 30, 2000), (i) a
            Borrowing Base Certificate, signed by a Responsible Officer of the
            Company and showing the Borrowing Base as of the close of business
            on the last day of such fiscal month, and (ii) if requested by the
            Administrative Agent at any other time when the Administrative Agent
            reasonably believes that the then existing Borrowing Base
            Certificate is materially inaccurate, as soon as reasonably
            available but it in no event later than five (5) Business Days after
            such request, a Borrowing Base Certificate showing the Borrowing
            Base as of the date so requested, in each case with supporting
            documentation (including, without limitation, the documentation
            described on Schedule 1 to Exhibit M), and (iii) such other
            supporting documentation and additional reports with respect to the
            Borrowing Base as the Administrative Agent shall reasonably request.

                  (b) At any time upon the request of the Administrative Agent
            or the Required Lenders through the Administrative Agent, permit the
            Administrative Agent or professionals (including consultants,
            accountants and appraisers) retained by the Administrative Agent or
            its professionals to conduct evaluations and appraisals of (i) the
            Company's practices in the computation of the Borrowing Base and
            (ii) the assets included in the Borrowing Base, and pay the
            reasonable fees (including reasonable and customary internally
            allocated fees of employees of the Administrative Agent) and
            expenses of any such representatives retained by the Administrative
            Agent to conduct any such evaluation or appraisal (including,
            without limitation, the reasonable and customary fees and expenses
            associated with the Administrative Agent's Collateral Agent Services
            Group). In connection with any collateral monitoring or review and
            appraisal relating to the computation of the Borrowing Base, the
            Company shall make such adjustments to the Borrowing Base as the
            Administrative Agent shall require based upon the terms of this
            Agreement and results of such collateral monitoring, review or
            appraisal.

<PAGE>
                                                                              19

                  (c) In the event that historical accounting practices, systems
            or reserves relating to the components of the Borrowing Base are
            modified in a manner that is adverse to the Lenders in any material
            respect, the Company will agree to maintain such additional reserves
            (for purposes of computing the Borrowing Base) in respect to the
            components of the Borrowing Base and make such other adjustments to
            its parameters for including the components of the Borrowing Base as
            the Administrative Agent shall require based upon such
            modifications.

            8. AMENDMENT TO SECTION 7 OF THE CREDIT AGREEMENT. (a) Subsection
      7.1 of the Credit Agreement is hereby amended by deleting the table in
      paragraph (a) thereof and substituting in lieu thereof the following
      table:

<TABLE>
<CAPTION>
            Period                              Senior Leverage Ratio
            ------                              ---------------------
<S>                                                 <C>
            Closing Date to 12/31/1999              0.50 to 1.0
            3/31/2000 to 6/30/2000                  0.45 to 1.0
            9/30/2000 to 12/31/2001                 0.65 to 1.0
            3/31/2002 to 12/31/2002                 0.50 to 1.0
            3/31/2003 to 12/31/2003                 0.40 to 1.0
            3/31/2004 and thereafter                0.35 to 1.0
</TABLE>

            (b) Subsection 7.1 of the Credit Agreement is hereby further
      amended, by adding thereto the following paragraphs:

            (d) MINIMUM ADJUSTED CONSOLIDATED EBITDA. Permit the Consolidated
            EBITDA of the Company for the periods set forth below as at the last
            day of each such period to be less than the amount set forth below
            opposite such period:

<TABLE>
<CAPTION>
                  Period                                  Amount
                  ------                                  ------
<S>                                                   <C>
                  6/30/2000 to 9/30/2000              $(33,000,000)
                  6/30/2000 to 12/31/2000             $(29,000,000)
                  6/30/2000 to 3/31/2001              $(11,500,000)
                  6/30/2000 to 6/30/2001                $9,000,000
                  6/30/2000 to 9/30/2001               $25,000,000
                  6/30/2000 to 12/31/2001              $29,000,000
</TABLE>

            , PROVIDED, HOWEVER, the Borrowers and their respective Subsidiaries
            shall not permit the Consolidated EBITDA of the Company for the
            period commencing September 30, 2000 and ending March 31, 2001 to be
            less than $20,000,000 as at the last day of such period and;
            PROVIDED, FURTHER, that in calculating consolidated EBITDA for
            purposes of the preceding proviso, the reserves and charges referred
            to in clauses (i) through (iv) of Section 15 of the Second Amendment
            shall be added back to Consolidated EBITDA to the extent incurred by
            the Borrowers or their respective Subsidiaries during the period
            commencing September 30, 2000 and ending March 31, 2001.

<PAGE>
                                                                              19

            (e) LIMIT ON CAPITAL EXPENDITURES. Permit Capital Expenditures for
the four consecutive fiscal quarters of the Company ended September 30, 2001 to
exceed $14,000,000.

            (c) Subsection 7.4 of the Credit Agreement is hereby amended (1) by
      deleting the word "and" at the end of paragraph (e) thereof and (2) by
      adding immediately prior to the period at the end of paragraph (f)
      thereof, the following language:

      and (g) any Disposition of Property permitted pursuant to the terms of
      Section 7.5(h)

            (d) Subsection 7.5 of the Credit Agreement is hereby amended by
      adding immediately prior to the word "and" at the end of paragraph (g)
      thereof, the following language:

            (h) any Disposition (other than to the Company or its Subsidiaries)
            of Property constituting the sale of the Scheduled Assets of the
            Borrowers substantially consistent with that previously disclosed to
            the Administrative Agent, so long as it occurs prior to
            March 31, 2001;

            (e) Subsection 7.8 of the Credit Agreement is hereby amended (1) by
      deleting the reference to "$20,000,000" from paragraph (k) thereof and
      substituting in lieu thereof the amount "$10,000,000", (2) by deleting the
      word "and" at the end of paragraph (n) thereof and (3) by adding
      immediately prior to the period at the end of paragraph (o) thereof, the
      following language:

      and (p) the Company may purchase all of the capital stock of Grove France
      SAS from Grove Holdings France SAS for fair-market value (as determined by
      the management committee of the Company), so long as such purchase occurs
      prior to March 31, 2001

            (f) Subsection 7.9 of the Credit Agreement is hereby amended by
      adding immediately prior to the comma at the end of paragraph (a) thereof,
      the following language:

      (provided that Grove Holdings France SAS and its Subsidiaries may repay
      intercompany loans made by the Company (or any of its Domestic
      Subsidiaries) to Grove Holdings France SAS and/or any of its Subsidiaries
      in connection with the sale of Grove Holdings France SAS, so long as such
      repayment occurs prior to March 31, 2001)

            (g) Section 7 of the Credit Agreement is hereby amended by adding
      thereto the following subsection:

            7.18 LIMITATIONS ON DEPOSITS OF CASH BALANCES. Maintain Cash
            Equivalents or bank deposits other than with a Lender, except for
            (i) Cash Equivalents or bank deposits of the Borrower and its
            Domestic Subsidiaries up to an aggregate amount of $3,000,000 and
            (ii) Cash Equivalents or bank deposits of Foreign Subsidiaries.

            9. AMENDMENT TO SECTION 8 OF THE CREDIT AGREEMENT. Section 8 of the
      Credit Agreement is hereby amended (1) by inserting the number "(i)"
      immediately prior to the

<PAGE>
                                                                              20

      text at the beginning of paragraph (c) thereof and (2) by inserting
      immediately prior to the semi-colon at the end of paragraph (c) thereof,
      the following language:

      or (ii) the Borrower shall fail to deliver a Borrowing Base Certificate
      pursuant to Section 6.12(a) within 10 days after such Borrowing Base
      Certificate was due pursuant to such Section 6.12(a)

            10. AMENDMENT TO ANNEX A OF THE CREDIT AGREEMENT. Annex A of the
      Credit Agreement is hereby amended by deleting the Pricing Grid therein
      and substituting in lieu thereof the Pricing Grid attached hereto as
      Annex A.

            11. AMENDMENT TO SCHEDULE 1.1A TO THE CREDIT AGREEMENT. Schedule
      1.1A to the Credit Agreement is hereby amended by deleting the Revolving
      Credit Commitments therein and substituting in lieu thereof the Revolving
      Credit Commitments attached hereto as Annex B.

            12. ADDITION OF SCHEDULE 2.12 TO THE CREDIT AGREEMENT. A new
      Schedule 2.12 to the Credit Agreement in the form of Annex C hereto shall
      be added to the Credit Agreement.

            13. WAIVER OF SECTION 7.1(b) OF THE CREDIT AGREEMENT. The
      Administrative Agent and the Lenders hereby agree to waive, for a period
      commencing as of September 30, 2000 and continuing up to and including
      December 31, 2001, the Company's compliance with the requirements of the
      Consolidated Fixed Charge Coverage Ratio of Section 7.1(b) of the Credit
      Agreement and any breach resulting from any failure to comply with such
      requirements.

            14. NOTICE OF REDUCTION IN REVOLVING CREDIT COMMITMENTS. The
      Borrowers hereby give notice pursuant to the terms of Section 2.10 of the
      Credit Agreement (i) of a reduction in the amount of the Revolving Credit
      Commitments from $125,000,000 to $66,250,000 (it being understood that the
      Revolving Credit Commitments after giving effect to such reduction shall
      be as set forth in Annex B to this Amendment), such notice to take effect
      on the Second Amendment Effective Date, (ii) of a reduction in the amount
      of the Revolving Credit Commitments from $66,250,000 to $60,000,000, such
      notice to take effect on March 31, 2001.

            15. CALCULATION OF EBITDA. The Administrative Agent and the Lenders
      hereby acknowledge and consent that the Company has established or taken
      or may establish or take reserves or charges that will affect Consolidated
      Net Income for the fiscal quarters of the Company ended September 30,
      2000, December 31, 2000 and March 31, 2001, for the following items: (i)
      writedown of inventory not to exceed $23,000,000, (ii) severance charges
      not to exceed $10,000,000, (iii) pension expense not to exceed $5,000,000
      and (iv) writedown of Accounts not to exceed $5,500,000, PROVIDED, that,
      to the extent that reserves surrounding inventory or Accounts exceed the
      actual losses realized with respect thereto, any gains from such
      over-reserved position shall not be utilized by the Company in its
      calculation of Consolidated EBITDA for the purposes of Section 7 of the
      Credit Agreement.

<PAGE>
                                                                              21

            16. LIMITATION ON TRANSACTIONS WITH AFFILIATES. The Borrowers hereby
      jointly and severally agree that each of the Company and Grove Capital
      shall not, and shall not permit any of its respective Subsidiaries to,
      directly or indirectly, make any payment to any Affiliate of any thereof
      (other than the Company) for any management, advisory or similar services.
      This provision does not prohibit any intercompany payment for any
      management, advisory or similar services nor any equity compensation to
      members of the Company's management committee.

            17. CONDITIONS TO EFFECTIVENESS. This Amendment shall become
      effective on the Second Amendment Effective Date upon satisfaction of each
      of the following conditions:

      (a)  the Administrative Agent shall have received:

            (i) counterparts of this Amendment duly executed and delivered by
            the Borrowers and the Required Lenders together with a Consent to
            this Amendment duly executed and delivered by the Loan Parties;

            (ii) an amendment fee for the account of each Lender executing this
            Amendment and delivering its executed signature page to the
            Administrative Agent prior to 5:00 p.m., New York City Time, on
            October 24, 2000 in the amount equal to 0.5% of the sum of such
            Lender's aggregate outstanding extensions of credit and its
            unutilized Commitments (as reduced in accordance with the terms of
            this Amendment) as of such date; PROVIDED, HOWEVER, that in the
            event that holders of at least 75% of the sum of (i) the aggregate
            unpaid principal amount of the Term Loans and (ii) the Total
            Revolving Credit Commitments shall have executed and delivered this
            Amendment by such time, then such fee shall be payable to each
            Lender.

            (iii) certificates representing 100% of the shares of Capital Stock
            of each First-Tier Foreign Subsidiary (to the extent not previously
            provided), together with an undated stock power for such certificate
            executed in blank by a duly authorized officer of the pledgor
            thereof; and

            (iv) a Borrowing Base Certificate signed by a Responsible Officer of
            the Company and showing the Borrowing Base as of the close of
            business on July 1, 2000;

      (b) the Borrowers shall have executed and delivered to the Administrative
      Agent such amendments to the Guarantee and Collateral Agreement as the
      Administrative Agent deems necessary or advisable in order to grant to the
      Administrative Agent for the benefit of the Lenders a perfected first
      priority security interest in 100% of the Capital Stock of each First-Tier
      Foreign Subsidiary as provided for by the terms of this Amendment; and

      (c) the Company shall have entered into agreement in form and substance
      mutually satisfactory to the Administrative Agent and the Company relating
      to the retention of Policano & Manzo as ongoing financial advisor for the
      Lenders.

<PAGE>
                                                                              22

      The Administrative Agent shall give prompt notice to the Borrowers of the
      satisfaction of the conditions set forth in paragraphs (a) through (c)
      above.

            18. REPRESENTATION AND WARRANTIES. To induce the Agents and the
      Lenders parties hereto to enter into this Amendment, each Borrower hereby
      represents and warrants to the Agents and all of the Lenders as of the
      Second Amendment Effective Date that: (i) the unaudited consolidated
      balance sheet of the Company and its consolidated Subsidiaries as at June
      30, 2000 and the related unaudited consolidated statements of income and
      of cash flows for the nine-month period ended on such date, certified by a
      Responsible Officer, copies of which have heretofore been furnished to
      each Lender, are complete and correct and present fairly the consolidated
      financial condition of the Company and its consolidated Subsidiaries as at
      such date, and the consolidated results of their operations and their
      consolidated cash flows for the nine-month period then ended (subject to
      normal year-end audit adjustments) and (ii) none of the Borrowers, nor any
      of their Subsidiaries are currently making any payment to any Affiliate of
      any thereof (other than the Company) for any management, advisory or
      similar services, except for intercompany payments for such services and
      equity compensation to members of the Company's management committee.

            19. GENERAL. (a) PAYMENT OF EXPENSES. The Borrowers jointly and
      severally agree to pay or reimburse the Administrative Agent for all of
      its out-of-pocket costs and reasonable expenses incurred in connection
      with this Amendment, any other documents prepared in connection herewith
      and the transactions contemplated hereby, including, without limitation,
      the reasonable fees and disbursements of (x) counsel to the Administrative
      Agent and (y) counsel to the Lenders.

            (b) NO OTHER AMENDMENTS; CONFIRMATION. Except as expressly amended,
      modified and supplemented hereby, the provisions of the Credit Agreement
      and the Notes are and shall remain in full force and effect.

            (c) GOVERNING LAW. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF
      THE PARTIES UNDER THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
      INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

            (d) COUNTERPARTS. This Amendment may be executed by one or more of
      the parties to this Amendment on any number of separate counterparts, and
      all of said counterparts taken together shall be deemed to constitute one
      and the same instrument. A set of the copies of this Amendment signed by
      all the parties shall be lodged with each Borrower and the Administrative
      Agent.

            (e) SUCCESSORS. The execution and delivery of this Amendment by any
      Lender shall be binding upon each of its successors and assigns (including
      Transferees of its commitments and Loans in whole or in part prior to
      effectiveness hereof) and binding in respect of all of its Revolving
      Credit Commitment and Loans.

<PAGE>
                                                                              23

            [This page has been intentionally left blank.]

<PAGE>

            IN WITNESS WHEREOF, the parties hereto have caused this Amendment to
be duly executed and delivered by their respective proper and duly authorized
officers as of the day and year first above written.

                                    GROVE WORLDWIDE LLC

                                    By:   /s/ Stephen L. Cripe
                                        ----------------------------------
                                        Name:   Stephen L. Cripe
                                        Title:  Senior Vice President and
                                                Chief Financial Officer

                                    GROVE CAPITAL, INC.

                                    By:   /s/ Stephen L. Cripe
                                        ----------------------------------
                                        Name:   Stephen L. Cripe
                                        Title:  Vice President and
                                                Chief Financial Officer

                                    THE CHASE MANHATTAN BANK,
                                    as Administrative Agent, Swing Line Lender,
                                    Issuing Lender and a Lender

                                    By:   /s/ B. B. Wuthrich
                                        ----------------------------------
                                        Name:   B. B. Wuthrich
                                        Title:  Vice President

                                    ARCHIMEDES FUNDING, L.L.C.

                                    By: /s/ Kurt Wegleitner
                                        ----------------------------------
                                        Name:   Kurt Wegleitner
                                        Title:  Senior Vice President

                                    BALANCED HIGH-YIELD FUND I LTD.
                                    BY: BHF (USA) CAPITAL CORPORATION,
                                    acting as Attorney-in-Fact

                                    By:   /s/ Dana L. Mcdougall
                                        ----------------------------------
                                        Name:   Dana L. McDougall
                                        Title:  Vice President

                                    By:   /s/ Aurelio Almonte
                                        ----------------------------------
                                        Name:   Aurelio Almonte
                                        Title:  Associate

<PAGE>

                                    BHF (USA) CAPITAL CORPORATION

                                    By:   /s/ Dana L. Mcdougall
                                        ----------------------------------
                                        Name:   Dana L. McDougall
                                        Title:  Vice President

                                    By:   /s/ Aurelio Almonte
                                        ----------------------------------
                                        Name:   Aurelio Almonte
                                        Title:  Associate

                                    CERES FINANCE, LTD.
                                    By: INVESCO Senior Secured Management, Inc.,
                                    as Sub-Managing Agent

                                    By:   /s/ Anne M. Mccarthy
                                        ----------------------------------
                                        Name:   Anne M. McCarthy
                                        Title:  Authorized Signatory

                                    COMERICA BANK

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

                                    CONTINENTAL ASSURANCE COMPANY

                                    By:   /s/ Mark L. Gold
                                        ----------------------------------
                                        Name:   Mark L. Gold
                                        Title:  Managing Director

                                    By:   /s/ Jonathan Insull
                                        ----------------------------------
                                        Name:   Jonathan Insull
                                        Title:  Senior Vice President

                                    CREDIT LYONNAIS NEW YORK BRANCH

                                    By:   /s/ Michael W. Lord
                                        ----------------------------------
                                        Name:   Michael W. Lord
                                        Title:  Vice President

<PAGE>

                                    CYPRESSTREE INVESTMENT FUND, LLC
                                    BY:  CYPRESSTREE INVESTMENT
                                    MANAGEMENT COMPANY, INC., its Managing
                                    Member

                                    By:   /s/ Philip C. Robbins
                                        ----------------------------------
                                        Name:   Philip C. Robbins
                                        Title:  Principal

                                    CYPRESSTREE INVESTMENT PARTNERS II
                                    BY:  CYPRESSTREE INVESTMENT
                                    MANAGEMENT COMPANY, INC., its Managing
                                    Member

                                    By:   /s/ Philip C. Robbins
                                        ----------------------------------
                                        Name:   Philip C. Robbins
                                        Title:  Principal

                                    ELC (CAYMAN) LTD.

                                    By:   /s/ Amos N. Beason
                                        ----------------------------------
                                        Name:   Amos N. Beason
                                        Title:  Director

                                    FLEET NATIONAL BANK,
                                    Formerly known as BankBoston, N.A.

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

                                    FLEET BUSINESS CREDIT CORPORATION

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

<PAGE>

                                    FREMONT INVESTMENT & LOAN

                                    By:   /s/ Stephen C. Bierman
                                        ----------------------------------
                                        Name:   Stephen C. Bierman
                                        Title:  Senior Vice President

                                    GENERAL ELECTRIC CAPITAL
                                    CORPORATION

                                    By:   /s/ Robert Mcmahon
                                        ----------------------------------
                                        Name:   Robert McMahon
                                        Title:  Senior Risk Manager

                                    HIGHLAND CRUSADER OFFSHORE
                                    PARTNERS L.P.

                                    By:   /s/ James Dondero
                                        ----------------------------------
                                        Name:   James Dondero
                                        Title:  President

                                    KZH CRESCENT LLC

                                    By:   /s/ Kimberly Rowe
                                        ----------------------------------
                                        Name:   Kimberly Rowe
                                        Title:  Authorized Agent

                                    KZH CRESCENT 2 LLC

                                    By:   /s/ Kimberly Rowe
                                        ----------------------------------
                                        Name:   Kimberly Rowe
                                        Title:  Authorized Agent

                                    KZH CRESCENT 3 LLC

                                    By:   /s/ Kimberly Rowe
                                        ----------------------------------
                                        Name:   Kimberly Rowe
                                        Title:  Authorized Agent

<PAGE>

                                    KZH CYPRESS TREE-1 LLC

                                    By:   /s/ Kimberly Rowe
                                        ----------------------------------
                                        Name:   Kimberly Rowe
                                        Title:  Authorized Agent

                                    KZH PAMCO LLC

                                    By:   /s/ Susan Lee
                                        ----------------------------------
                                        Name:   Susan Lee
                                        Title:  Authorized Agent

                                    PAMCO CAYMAN LTD.
                                    BY: HIGHLAND CAPITAL MANAGEMENT
                                    LTD., as Collateral Manager

                                    By:   /s/ James Dondero
                                        ----------------------------------
                                        Name:   James Dondero, CFA, CPA
                                        Title:  President, Highland Capital
                                                Management L.P.

                                    PAM CAPITAL FUNDING LP
                                    BY: HIGHLAND CAPITAL MANAGEMENT
                                    LTD., as Collateral Manager

                                    By:   /s/ James Dondero
                                        ----------------------------------
                                        Name:   James Dondero, CFA, CPA
                                        Title:  President, Highland Capital
                                                Management L.P.

                                    KZH RIVERSIDE LLC

                                    By:   /s/ Kimberly Rowe
                                        ----------------------------------
                                        Name:   Kimberly Rowe
                                        Title:  Authorized Agent

<PAGE>

                                 LONG DRIVE MANAGEMENT TRUST/TRI-
                                 LINKS INVESTMENT TRUST, not in its
                                 individual capacity but solely as Owner Trustee

                                 By:   /s/ David A. Vanaskey, Jr.
                                     ----------------------------------
                                     Name:   David A. Vanaskey, Jr.
                                     Title:  Vice President

                                 MASSACHUSETTS MUTUAL LIFE
                                 INSURANCE

                                 By:   /s/ Lisa J. Yoerg
                                     ----------------------------------
                                     Name:   Lisa J. Yoerg
                                     Title:  Managing Director

                                 MERRILL LYNCH, PIERCE, FENNER &
                                 SMITH, INC

                                 By:   /s/ Graham Goldsmith
                                     ----------------------------------
                                     Name:   Graham Goldsmith
                                     Title:  Director

                                 ML CBO IV (Cayman Ltd)

                                 By:   /s/ James Dondero,
                                     ----------------------------------
                                     Name:   James Dondero, CFA, CPA
                                     Title:  President, Highland Capital
                                             Management L.P.

                                 OAK HILL SECURITIES FUND, L.P.

                                 By: Oak Hill Securities GenPar, L.P.
                                     its General Partner

                                 By: Oak Hill Securities MGP, Inc.
                                     its General Partner

                                 By:   /s/ Scott D. Krase
                                     ----------------------------------
                                     Name:   Scott D. Krase
                                     Title:  Vice President

<PAGE>

                                 SEQUILS I, LTD.

                                 By:   /s/ Mark L. Gold
                                     ----------------------------------
                                     Name:   Mark L. Gold
                                     Title:  Managing Director

                                 By:   /s/ Jonathan Insull
                                     ----------------------------------
                                     Name:   Jonathan Insull
                                     Title:  Senior Vice President

                                 SOCIETE GENERALE, SOUTHWEST
                                 AGENCY

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

                                 SOMERS CDO, LIMITED

                                 By:   /s/ Lisa J. Yoerg
                                     ----------------------------------
                                     Name:   Lisa J. Yoerg
                                     Title:  Managing Director

                                 U.S. BANK NATIONAL ASSOCIATION

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

                                 WELLS FARGO BANK, N.A.

                                 By:   /s/ Dana D. Cagle
                                     ----------------------------------
                                     Name:   Dana D. Cagle
                                     Title:  Vice President

<PAGE>

            Each of the undersigned hereby consents to the foregoing Amendment
and hereby confirms, reaffirms and restates that its obligations under or in
respect of the Credit Agreement and the documents related thereto to which it is
party are and shall remain in full force and effect after giving effect to the
foregoing Amendment and agrees and confirms, in the case of National Crane
Corporation, that it is a party to the Guarantee and Collateral Agreement as a
Grantor thereunder:

                                    GROVE HOLDINGS LLC

                                    By:   /s/ Stephen L. Cripe
                                        ----------------------------------
                                        Name:   Stephen L. Cripe
                                        Title:  Vice President and
                                                Chief Financial Officer

                                    GROVE WORLDWIDE LLC

                                    By:   /s/ Stephen L. Cripe
                                        ----------------------------------
                                        Name:   Stephen L. Cripe
                                        Title:  Senior Vice President and
                                                Chief Financial Officer

                                    GROVE CAPITAL, INC.

                                    By:   /s/ Stephen L. Cripe
                                        ----------------------------------
                                        Name:   Stephen L. Cripe
                                        Title:  Vice President and
                                                Chief Financial Officer

                                    GROVE U.S. LLC

                                    By:   /s/ Stephen L. Cripe
                                        ----------------------------------
                                        Name:   Stephen L. Cripe
                                        Title:  Senior Vice President and
                                                Chief Financial Officer

                                    CRANE ACQUISITION CORPORATION

                                    By:   /s/ Stephen L. Cripe
                                        ----------------------------------
                                        Name:   Stephen L. Cripe
                                        Title:  Vice President and
                                                Chief Financial Officer

<PAGE>

                               CRANE HOLDING INC.

                               By:   /s/ Keith R. Simmons
                                   -----------------------------------
                                   Name:   Keith R. Simmons
                                   Title:  Senior Vice President and Secretary

                               GROVE FINANCE LLC

                               By:   /s/ Stephen L. Cripe
                                   ------------------------------------
                                   Name:   Stephen L. Cripe
                                   Title:  Vice President and
                                           Chief Financial Officer

                               NATIONAL CRANE CORPORATION

                               By:   /s/ Keith R. Simmons
                                   ------------------------------------
                                   Name:   Keith R. Simmons
                                   Title:  Vice President and SecretaryEXHIBIT 10.5

                                                              EXECUTION VERSION

                         CONSENT AND SIXTH AMENDMENT TO
                   THIRD AMENDED AND RESTATED CREDIT AGREEMENT

         THIS CONSENT AND SIXTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT
AGREEMENT (this "Consent and Amendment"), dated as of May 15, 2000, is entered
into by and among:

                  (1) BELL MICROPRODUCTS INC., a California corporation
         ("Borrower");

                  (2) Each of the financial institutions listed in Schedule I to
         the Restated Credit Agreement referred to in Recital A below (the
         "Banks");

                  (3) CALIFORNIA BANK & TRUST, a California banking corporation,
         as administrative agent for the Banks (in such capacity,
         "Administrative Agent"); and

                  (4) UNION BANK OF CALIFORNIA, N.A., a national banking
         association ("UBOC"), as collateral agent thereunder (in such capacity,
         "Collateral Agent").

                                    RECITALS

         A. Borrower, the Banks, Administrative Agent and Collateral Agent are
parties to a Third Amended and Restated Credit Agreement dated as of November
12, 1998, as amended by (i) that certain First Amendment to Third Amended and
Restated Credit Agreement dated as of May 13, 1999, (ii) that certain Second
Amendment to Third Amended and Restated Credit Agreement dated as of July 21,
1999, (iii) that certain Waiver and Third Amendment to Third Amended and
Restated Credit Agreement dated as of October 15, 1999, (iv) that certain Fourth
Amendment to Third Amended and Restated Credit Agreement dated as of December 8,
1999 and (v) that certain Fifth Amendment to Third Amended and Restated Credit
Agreement dated as of December 31, 1999 (as amended, the "Restated Credit
Agreement").

         B. Borrower has recently informed Administrative Agent, Collateral
Agent and the Banks that (i) it intends to form a new, wholly-owned Subsidiary
that will engage in a certain merger transaction as more specifically described
in subparagraph 2(a) below and (ii) it intends to acquire all or substantially
all of the assets of another corporation in an asset acquisition transaction as
more specifically described in subparagraph 2(b) below. Because both the merger
transaction and the asset acquisition transaction would violate certain
covenants of Borrower contained in the Restated Credit Agreement, Borrower has
requested the Banks, Administrative Agent and Collateral Agent to waive
compliance with such covenants in connection with such transactions.

         C. In addition, Borrower has requested Administrative Agent, Collateral
Agent and the Banks to amend the Restated Credit Agreement in certain respects.

<PAGE>

         D. The Banks, Administrative Agent and Collateral Agent are willing so
to consent to such transactions and amend the Restated Credit Agreement upon the
terms and subject to the conditions set forth below.

                                    AGREEMENT

         NOW, THEREFORE, in consideration of the above recitals and for other
good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, Borrower, the Banks, Administrative Agent and Collateral Agent
hereby agree as follows:

         1. Definitions, Interpretation. All capitalized terms defined above and
elsewhere in this Consent and Amendment shall be used herein as so defined.
Unless otherwise defined herein, all other capitalized terms used herein shall
have the respective meanings given to those terms in the Restated Credit
Agreement, as amended by this Consent and Amendment. The rules of construction
set forth in Section I of the Restated Credit Agreement shall, to the extent not
inconsistent with the terms of this Consent and Amendment, apply to this Consent
and Amendment and are hereby incorporated by reference.

         2. Request for Consents to Merger and Acquisition.

         (a) Pursuant to Subparagraph 5.02(d) of the Restated Credit Agreement,
Borrower has agreed, unless Required Banks shall otherwise consent in writing,
that neither Borrower nor any of its Subsidiaries shall consolidate with or
merge into any other Person or permit any other Person to merge into it. In
addition, pursuant to Subparagraph 5.02(e) of the Restated Credit Agreement,
Borrower has agreed, unless Required Banks shall otherwise consent in writing,
that neither Borrower nor any of its Subsidiaries shall make any Investment
except for Permitted Investments. Notwithstanding the foregoing prohibitions,
Borrower has recently informed Administrative Agent, Collateral Agent and the
Banks that it has entered into the Agreement and Plan of Merger (the "Merger
Agreement") dated as of May 3, 2000 by and among the Borrower, RDI Acquisition
Corp., a Minnesota corporation ("Merger Subsidiary"), and Rorke Data,
Incorporated, a Minnesota corporation ("Rorke Data"), pursuant to which Merger
Subsidiary will merge with and into Rorke Data with Merger Subsidiary as the
surviving corporation (such merger transaction, the "Rorke Merger Transaction").
Rorke Data owns 204 shares of the outstanding common stock of Rorke Data Europe
Holding B.V. ("Rorke Europe"), and prior to or simultaneously with the closing
of the Rorke Merger Transaction, Borrower shall purchase the remaining 196
shares of the outstanding stock of Rorke Europe. Borrower has represented to
Administrative Agent, Collateral Agent and the Banks that the consideration to
be paid by Borrower in connection with the Rorke Merger Transaction will not
exceed the following: (i) $1,703,060.12; (ii) $804,500, which amount is subject
to adjustment as described in Section 1.5 of the Merger Agreement; (iii) an
aggregate number of shares of common stock of the Borrower equivalent in value
to $2,507,536, with such valuation determined as provided in Exhibit C to the
Merger Agreement; (iv) $1,104,500 for the purchase of the remaining 196 shares
of the outstanding stock of Rorke Europe; and (v) $195,500 for the purchase of
the remaining 196 shares of the outstanding stock of Rorke Europe, which amount
is subject to adjustment as described in Section 1.5 of the Merger Agreement.
Because the Rorke Merger Transaction is prohibited pursuant to Subparagraph
5.02(d) of the Restated Credit Agreement and Subparagraph 5.02(e) of the
Restated Credit Agreement unless, in each case, Required Banks otherwise consent
in writing, Borrower has approached Administrative Agent, Collateral Agent and
the Banks and requested such consent.

<PAGE>

         (b) Pursuant to Subparagraph 5.02(d) of the Restated Credit Agreement,
Borrower has agreed, unless Required Banks shall otherwise consent in writing,
that neither Borrower nor any of its Subsidiaries shall acquire all or
substantially all of the assets of any other Person. Notwithstanding the
foregoing prohibition, Borrower has recently informed Administrative Agent,
Collateral Agent and the Banks that it has entered into the Asset Purchase
Agreement (the "Asset Purchase Agreement") dated as of April 26, 2000 by and
between Borrower and Streamlogic Corporation, a Delaware corporation ("Seller"),
pursuant to which Borrower has agreed to acquire all or substantially all of the
assets of a division of the Seller known as Hammer Storage Solutions (such asset
acquisition, the "Streamlogic Acquisition Transaction"). Borrower has
represented to Administrative Agent, Collateral Agent and the Banks that the
purchase price to be paid by Borrower in connection with the Streamlogic
Acquisition Transaction will not exceed $450,000. Because the Streamlogic
Acquisition Transaction is prohibited by Subparagraph 5.02(d) of the Restated
Credit Agreement unless Required Banks otherwise consent in writing, Borrower
has recently approached Administrative Agent, Collateral Agent and the Banks and
requested such consent.

         3. Consents. (a) Subject to the satisfaction of the conditions set
forth in paragraph 5 below, the undersigned Banks hereby consent to the Rorke
Merger Transaction; provided that:

                  (i) The aggregate consideration paid by Borrower in connection
         with such merger does not exceed the amount specified in Paragraph 2
         above, as adjusted pursuant to the Merger Agreement;

                  (ii) Borrower provides Administrative Agent with written
         notice of the consummation of the Rorke Merger Transaction on the date
         such transaction closes;

                  (iii) Prior to the closing of the Rorke Merger Transaction,
         Borrower shall have delivered to Administrative Agent (with sufficient
         copies for each Bank) a true and correct copy of the Merger Agreement,
         duly executed by the parties thereto, together with all exhibits and
         schedules thereto in effect as of the date thereof; and

                  (iv) The consummation of the Rorke Merger Transaction does not
         violate any provision of the Restated Credit Agreement or any of the
         other Credit Documents or will result in a violation of any such
         provision, other than Subparagraph 5.02(d) and Subparagraph 5.02(e).

         (b) Subject to the satisfaction of the conditions set forth in
paragraph 5 below, the undersigned Banks hereby consent to the Streamlogic
Acquisition Transaction; provided that:

                  (i) The aggregate consideration paid by Borrower in connection
         with such acquisition does not exceed the amount specified in
         subparagraph 2(b) above;

<PAGE>

                  (ii) Borrower provides Administrative Agent with written
         notice of the consummation of the Streamlogic Acquisition Transaction
         on the date such transaction closes;

                  (iii) Prior to the closing of the Streamlogic Acquisition
         Transaction, Borrower shall have delivered to Administrative Agent
         (with sufficient copies for each Bank) a true and correct copy of the
         Asset Purchase Agreement, duly executed by the parties thereto,
         together with all exhibits and schedules thereto in effect as of the
         date thereof; and

                  (iv) The consummation of the Streamlogic Acquisition
         Transaction does not violate any provision of the Restated Credit
         Agreement or any of the other Credit Documents or will result in a
         violation of any such provision, other than Subparagraph 5.02(d).

         4. Amendments to Restated Credit Agreement. Subject to the satisfaction
of the conditions set forth in paragraph 5 below, the Restated Credit Agreement
is hereby amended as follows:

                  (a) Subparagraph 2.01(f) of the Restated Credit Agreement is
         hereby amended to read in its entirety as follows:

                               (f) Scheduled Revolving Loan Payments. Borrower
                      shall repay to each Bank on the Revolving Loan Maturity
                      Date the unpaid principal amount of each Revolving Loan
                      made by such Bank. Borrower shall pay accrued interest on
                      the unpaid principal amount of each Revolving Loan (A) in
                      the case of a Revolving Prime Rate Loan, on the last
                      Business Day in each month, (B) in the case of a Revolving
                      LIBOR Loan, on the last day of each Interest Period
                      therefor (and, if any such Interest Period is longer than
                      three (3) months, every three (3) months); and (C) in the
                      case of all Revolving Loans, upon prepayment (to the
                      extent thereof) and at maturity.

                  (b) Clause (iv) of Subparagraph 5.02(m) of the Restated Credit
         Agreement is hereby amended to read in its entirety as follows:

                               (iv) Its Leverage Ratio to be greater than 3.50
                      to 1.00 for any fiscal quarter ending prior to the Sixth
                      Amendment Effective Date, its Leverage Ratio to be greater
                      than 4.00 to 1.00 for any fiscal quarter ending on or
                      after the Sixth Amendment Effective Date and prior to the
                      fiscal quarter ending on December 31, 2000, and its
                      Leverage Ratio to be greater than 3.75 to 1.00 for any
                      fiscal quarter ending thereafter;

                  (c) Schedule II of the Restated Credit Agreement is hereby
         amended to read in its entirety as set forth on Appendix 1 hereto.

                  (d) Schedule 1.01 of the Restated Credit Agreement is hereby
         amended by adding thereto, in the appropriate alphabetical order, the
         following definitions:

                     "RDI" shall mean Rorke Data, Inc., a Minnesota corporation.

<PAGE>

                      "Sixth Amendment Effective Date" shall mean May 15, 2000.

                  (e) Schedule 1.01 of the Restated Credit Agreement is hereby
         amended by changing the definition of "Eligible Accounts" set forth
         therein to read in its entirety as follows:

                      "Eligible Accounts" shall mean, with respect to Borrower,
              the aggregate net amount of all accounts (as defined in the
              California Uniform Commercial Code) of Borrower, Bell-Tenex and
              RDI, except, to the extent not already deducted, the following:

                               (a) Any account which does not arise from the
                      sale or lease of goods or services rendered to the account
                      debtor thereon in the ordinary course of Borrower's or the
                      Canadian Subsidiaries' business, or which arises from a
                      sale, lease or service which has not been fully performed
                      by Borrower, Bell-Tenex or RDI;

                               (b) Any account or portion thereof to the extent
                      the same is subject to any right of discount, credit,
                      allowance, rescission, setoff, claim or defense or which
                      is otherwise not valid and enforceable against the account
                      debtor thereon;

                               (c) Any account which is not subject to a first
                      priority perfected security interest in favor of
                      Collateral Agent for the benefit of the Agents and the
                      Banks;

                               (d) Any account which is not owned by Borrower,
                      Bell-Tenex or RDI free and clear of all Liens, rights and
                      interests of all other Persons except for Permitted Liens;

                               (e) Any account which is unpaid more than ninety
                      (90) days after the invoice date therefor;

                               (f) Any account arising from a consignment by
                      Borrower, Bell-Tenex or RDI as consignee or a COD
                      shipment;

                               (g) Any account payable by (i) the United States
                      government or any department, agency or other subdivision
                      thereof (except to the extent Borrower complies with the
                      Federal Assignment of Claims Act of 1940, as amended),
                      (ii) a Person located in any jurisdiction outside the
                      United States or Canada (excluding the provinces of
                      Newfoundland, Nova Scotia, Prince Edward Island, New
                      Brunswick, Nunavut, Manitoba, Saskatchewan, Alberta and
                      the Yukon Territory), except to the extent secured by a
                      letter of credit acceptable to Collateral Agent, or (iii)
                      an Affiliate of Borrower;

                               (h) Any account payable by an account debtor (i)
                      which is the subject of any bankruptcy, insolvency,
                      liquidation or similar proceeding, (ii) which has made an
                      assignment for the benefit of its creditors, (iii) for
                      which a receiver has been appointed or (iv) which has
                      admitted in writing its inability to pay its debts as such
                      debts become due;

<PAGE>

                               (i) All accounts payable by an account debtor
                      which has failed to pay twenty percent (20%) or more of
                      its total accounts payable owed to Borrower, RDI and/or
                      Bell-Tenex (as applicable) within ninety (90) days of
                      their invoice date;

                               (j) Any account payable by an account debtor in
                      which the total accounts payable from such account debtor
                      exceeds twenty five percent (25%) of the total amount of
                      all Eligible Accounts, to the extent of such excess
                      (except as approved from time to time by Collateral
                      Agent); and

                               (k) Any other account which Collateral Agent
                      reasonably determines is unlikely to be paid in full
                      within ninety (90) days after the invoice date.

                      (As used in clauses (a)-(k) of this definition, the term
                      "account" when used in the singular form shall mean an
                      account arising from a single invoice.)

                  (f) Schedule 1.01 of the Restated Credit Agreement is hereby
         amended by changing the definition of "Eligible Inventory" set forth
         therein to read in its entirety as follows:

                      "Eligible Inventory" shall mean, with respect to Borrower,
              the net book value of all inventory (as defined in the California
              Uniform Commercial Code) of Borrower, RDI and Bell-Tenex, except
              the following:

                               (a) Any inventory which is not held by or on
                      behalf of Borrower, RDI or Bell-Tenex for sale or lease in
                      the ordinary course of its business;

                               (b)  Any inventory consisting of work-in-process;

                               (c) Any inventory which is not subject to a first
                      priority perfected security interest in favor of
                      Collateral Agent for the benefit of the Agents and the
                      Banks;

                               (d) Any inventory located in any jurisdiction
                      other than the United States or Canada (excluding the
                      provinces of Newfoundland, Nova Scotia, Prince Edward
                      Island, New Brunswick, Manitoba, Saskatchewan, Alberta and
                      Yukon Territory);

                               (e) Any inventory which is not owned by Borrower,
                      RDI or Bell-Tenex free and clear of all Liens, rights and
                      interests of all other Persons except for Permitted Liens;

                               (f) Any inventory which is obsolete, unsalable or
                      damaged;

<PAGE>

                               (g) Any inventory which has been consigned by
                      Borrower, RDI or Bell-Tenex (except for such inventory on
                      consignment approved from time to time by Collateral
                      Agent);

                               (h) The portion of any inventory shown on the
                      books of Borrower, RDI or Bell-Tenex representing any
                      purchase price discount earned by Borrower, RDI or
                      Bell-Tenex; and

                               (i) Any other inventory which Collateral Agent
                      reasonably determines is unlikely to be sold at or above
                      its net book value.

                  (g) Schedule 4.01(q) of the Restated Credit Agreement is
         hereby amended to read in its entirety as set forth on Appendix 2
         hereto.

         5. Representations and Warranties. Borrower hereby represents and
warrants to Administrative Agent, Collateral Agent and the Banks that, on the
date of this Consent and Amendment and after giving effect to the consents set
forth in paragraph 3 above and the amendments set forth in paragraph 4 above on
the Sixth Amendment Effective Date (as defined below), the following are and
shall be true and correct on each such date:

                  (a) The representations and warranties set forth in Paragraph
         4.01 of the Restated Credit Agreement are true and correct in all
         material respects;

                  (b) No Event of Default or Default has occurred and is
         continuing; and

                  (c) Each of the Credit Documents is in full force and effect.

         6. Effective Date. The consents granted pursuant to paragraph 3 above
and the amendments to the Restated Credit Agreement effected by paragraph 4
above shall become effective on May 15, 2000 (the "Sixth Amendment Effective
Date"), subject to receipt by the Banks, Administrative Agent and Collateral
Agent, as applicable, on or prior to the Sixth Amendment Effective Date (or, in
the case of subparagraph 6(e), on or prior to May 31, 2000) of the following,
each in form and substance satisfactory to the Banks, Administrative Agent,
Collateral Agent and their respective counsel, as applicable:

                  (a) This Consent and Amendment duly executed by Borrower, each
         Bank, Administrative Agent and Collateral Agent;

         A letter in the form of Appendix 3 hereto appropriately completed,
dated the Sixth Amendment Effective Date and duly executed by each Guarantor;

         An amendment fee of $30,000 to be shared equally among the Banks;

         A favorable written opinion of Fredrikson & Byron, P.A., counsel to
Borrower, dated the Sixth Amendment Effective Date, addressed to Administrative
Agent and the Banks and covering such legal matters with respect to Rorke Date,
Inc. as Administrative Agent may reasonably request and otherwise in form and
substance satisfactory to Administrative Agent;

<PAGE>

         A favorable written opinion of Fredrikson & Byron, P.A., counsel to
Borrower, dated on or prior to May 31, 2000, addressed to Administrative Agent
and the Banks and covering such legal matters with respect to the Borrower as
Administrative Agent may reasonably request and otherwise in form and substance
satisfactory to Administrative Agent;

                  (b) A Pledge Agreement substantially in the form of Appendix
         4, duly executed by RDI (the "RDI Pledge Agreement").

                  (c) A Guaranty substantially in the form of Appendix 5, duly
         executed by each of RDI (the "RDI Guaranty") and Rorke Europe (the
         "Rorke Europe Guaranty");

                  (d) A Security Agreement substantially in the form of Appendix
         6, duly executed by RDI (the "RDI Security Agreement");

                  (e) The corporate documents, security documents and other
         items specified on Appendix 7;

                  (i) Such other evidence as Administrative Agent, Collateral
         Agent or any Bank may reasonably request to establish the accuracy and
         completeness of the representations and warranties and the compliance
         with the terms and conditions contained in this Consent and Amendment.

                  The delivery of the opinion referenced in subparagraph 6(e) on
         or prior to May 31, 2000 shall constitute a condition subsequent to the
         effectiveness of this Amendment.

         7. Effect of this Consent and Amendment. On and after the Sixth
Amendment Effective Date, each reference in the Restated Credit Agreement and
the other Credit Documents to the Restated Credit Agreement shall mean the
Restated Credit Agreement as amended hereby. Except as specifically consented to
or amended above, (a) the Restated Credit Agreement and the other Credit
Documents shall remain in full force and effect and are hereby ratified and
confirmed and (b) the execution, delivery and effectiveness of this Consent and
Amendment shall not, except as expressly provided herein, operate as a waiver of
any right, power, or remedy of the Banks, Administrative Agent or Collateral
Agent, nor constitute a waiver of any provision of the Restated Credit Agreement
or any other Credit Document.

         8. Miscellaneous.

                  (a) Counterparts. This Consent and Amendment may be executed
         in any number of identical counterparts, any set of which signed by all
         the parties hereto shall be deemed to constitute a complete, executed
         original for all purposes.

                  (b) Headings. Headings in this Consent and Amendment are for
         convenience of reference only and are not part of the substance hereof.

                  (c) Governing Law. This Consent and Amendment shall be
         governed by and construed in accordance with the laws of the State of
         California without reference to conflicts of law rules.

<PAGE>

         IN WITNESS WHEREOF, Borrower, Administrative Agent, Collateral Agent
and the Banks have caused this Consent and Amendment to be executed as of the
day and year first above written.

BORROWER:                       BELL MICROPRODUCTS INC.

                                By:__________________________________
                                   Name:
                                   Title:

                                By:__________________________________
                                   Name:
                                   Title:

ADMINISTRATIVE AGENT:           CALIFORNIA BANK & TRUST,
                                As Administrative Agent

                                By:__________________________________
                                   Name:
                                   Title:

                                By:__________________________________
                                   Name:
                                   Title:

COLLATERAL AGENT:               UNION BANK OF CALIFORNIA, N.A.,
                                As Collateral Agent

                                By:__________________________________
                                   Name:
                                   Title:

<PAGE>

BANKS:                           CALIFORNIA BANK& TRUST,
                                 As a Bank

                                 By:__________________________________
                                    Name:
                                    Title:

                                 By:__________________________________
                                    Name:
                                    Title:

                                 UNION BANK OF CALIFORNIA, N.A.,
                                 As a Bank

                                 By:__________________________________
                                    Name:
                                    Title:

                                 SANWA BANK CALIFORNIA,
                                 As a Bank

                                 By:__________________________________
                                    Name:
                                    Title:

                                 COMERICA BANK - CALIFORNIA,
                                 As a Bank

                                 By:__________________________________
                                    Name:
                                    Title:

<PAGE>

                                 U.S. BANK NATIONAL ASSOCIATION,
                                 As a Bank

                                 By:__________________________________
                                    Name:
                                    Title:

                                 IBM CREDIT CORPORATION,
                                 As a Bank

                                 By:__________________________________
                                    Name:
                                    Title:

<PAGE>

                                   APPENDIX 1

                                   SCHEDULE II

                                  PRICING GRID

             LEVEL 1  LEVEL 2  LEVEL 3  LEVEL 4  LEVEL 5  LEVEL 6  LEVEL 7
             PERIOD   PERIOD   PERIOD   PERIOD   PERIOD   PERIOD   PERIOD
APPLICABLE
MARGINS:      1.45%    1.65%    1.85%    1.05%     2.25%   2.50%    2.75%

                                   EXPLANATION

1.       The Applicable Margin for each Revolving LIBOR Loan will be set for
         each Pricing Period and will vary depending upon whether such period is
         a Level 1 Period, a Level 2 Period, a Level 3 Period, a Level 4 Period,
         a Level 5 Period, a Level 6 Period or a Level 7 Period.

2.       The first Pricing Period, which commences on the November 12, 1998 and
         ends on February 28, 1999, will be a Level 3 Period.

3.       Each Pricing Period thereafter will be a Level 1 Period, a Level 2
         Period, a Level 3 Period, a Level 4 Period, a Level 5 Period, a Level 6
         Period or a Level 7 Period depending upon Borrower's Leverage Ratio (as
         calculated pursuant to the definition of "Leverage Ratio" set forth in
         Schedule 1.01) for the most recent fiscal quarter period ending prior
         to the first day of such Pricing Period as follows:

         (a)      If, during any Pricing Period, Borrower's Leverage Ratio is
                  less than 2.00 to 1.00, Borrower's pricing will be a Level 1
                  Period.

         (b)      If, during any Pricing Period, Borrower's Leverage Ratio is
                  greater than or equal to 2.00 to 1.00 but less than or equal
                  to 2.50 to 1.00, Borrower's pricing will be a Level 2 Period.

         (c)      If, during any Pricing Period, Borrower's Leverage Ratio is
                  greater than 2.50 to 1.00 but less than or equal to 3.00 to
                  1.00, Borrower's pricing will be a Level 3 Period.

         (d)      If, during any Pricing Period, Borrower's Leverage Ratio is
                  greater than 3.00 to 1.00 but less than or equal to 3.25 to
                  1.00, Borrower's pricing will be a Level 4 Period.

         (e)      If, during any Pricing Period, Borrower's Leverage Ratio is
                  greater than 3.25 to 1.00 but less than or equal to 3.50 to
                  1.00, Borrower's pricing will be a Level 5 Period.

         (f)      If, during any Pricing Period, Borrower's Leverage Ratio is
                  greater than 3.50 to 1.00 but less than or equal to 3.75 to
                  1.00, Borrower's pricing will be a Level 6 Period.

         (e)      If, during any Pricing Period, Borrower's Leverage Ratio is
                  greater than 3.75 to 1.00, Borrower's pricing will be a Level
                  7 Period.

<PAGE>

                                   APPENDIX 2

                                SCHEDULE 4.01(q)

                                  SUBSIDIARIES

                                  Jurisdiction    Classes
                                       of            of     Outstanding  Percent
Name                              Incorporation    Stock      Shares      Owned

Bell Microproducts Canada, Inc.    California      Common        100       100%
Bell Microproducts-Future Tech,
  Inc.                             California      Common      1,000       100%
Rorke Data Europe Holding B.V.     Netherlands     Common        400       100%
Rorke Data, Inc.                    Minnesota      Common      1,000       100%
Rorke Data Asset Management Co,
  Inc.                              Minnesota      Common      1,000       100%
Bell Microproducts Canada -
  Tenex Data ULC                   Nova Scotia,    Common     [____]       100%
                                      Canada

<PAGE>

                                   APPENDIX 3

                        FORM OF GUARANTOR CONSENT LETTER

                                 May [__], 2000

TO:      ADMINISTRATIVE AGENT,
         As Administrative Agent for the Banks
         and the Agents under the
         Restated Credit Agreement referred to below

         1.       Reference is made to the following:

                  (a)      The Third Amended and Restated Credit Agreement dated
                           as of November 12, 1998, among Borrower, the Banks,
                           Administrative Agent and Collateral Agent, as amended
                           by that certain First Amendment to Third Amended and
                           Restated Credit Agreement dated as of May 13, 1999,
                           that certain Second Amendment to Third Amended and
                           Restated Credit Agreement dated as of July 21, 1999,
                           that certain Waiver and Third Amendment to Third
                           Amended and Restated Credit Agreement dated as of
                           October 15, 1999, that certain Fourth Amendment to
                           Third Amended and Restated Credit Agreement dated as
                           of December 8, 1999 and that certain Fifth Amendment
                           to Third Amended and Restated Credit Agreement dated
                           as of December 31, 1999 (as amended, the "Restated
                           Credit Agreement");

                  (b)      [The Bell Canada Guaranty, dated as of November 12,
                           1998 (the " Bell Canada Guaranty"),] [The Bell-Tenex
                           Guaranty, dated as of November 20, 1998 (the
                           "Bell-Tenex Guaranty"),] [The Bell-Future Tech
                           Guaranty, dated as of November ____, 1999 (the
                           "Bell-Future Tech Guaranty"),] executed by the
                           undersigned ("Guarantor") in favor of the Banks and
                           Collateral Agent; and

                  (c)      The Consent and Sixth Amendment to Third Amended and
                           Restated Credit Agreement, dated as of May [___],
                           2000, among Borrower, the Banks, Administrative Agent
                           and Collateral Agent (the "Consent and Sixth
                           Amendment");

         2.       Guarantor hereby confirms that it is a wholly-owned subsidiary
                  of [Bell Microproducts Inc., a California corporation] [Bell
                  Microproducts Canada Inc., a California corporation ("Bell
                  Canada") and that Bell Canada is a wholly-owned subsidiary of
                  Bell Microproducts Inc., a California corporation].

         3.       Guarantor hereby consents to the Consent and Sixth Amendment.
                  Guarantor expressly agrees that the Consent and Sixth
                  Amendment shall in no way affect or alter the rights, duties,
                  or obligations of Guarantor, the Banks or Collateral Agent
                  under the [Bell Canada Guaranty] [Bell-Tenex Guaranty]
                  [Bell-Future Tech Guaranty].

<PAGE>

         4.       Pursuant to the [Bell Canada Guaranty] [Bell-Tenex Guaranty]
                  [Bell-Future Tech Guaranty], Guarantor continues to guaranty
                  the payment when due of, inter alia, all loans, advances,
                  debts, liabilities and obligations, however arising, owed by
                  the Borrower to any Agent or any Bank of every kind and
                  description now existing or hereafter arising pursuant to the
                  terms of the Restated Credit Agreement as amended by the
                  Consent and Sixth Amendment or any of the other Credit
                  Documents.

         5.       The [Pledge] [Security] Agreement, dated as of [November 20,
                  1998][July 21, 1999] executed by Guarantor in favor of
                  Collateral Agent (the "[Pledge] [Security] Agreement") and any
                  other security granted to any Agent or any of the Banks from
                  time to time as security for the obligations of Guarantor
                  under the [Bell Canada Guaranty] [Bell-Tenex Guaranty]
                  [Bell-Future Tech Guaranty] remains in full force and effect
                  and unamended, and the security interests, mortgages, charges,
                  liens, assignments, transfers and pledges granted by Guarantor
                  pursuant to the [Pledge] [Security] Agreement and such other
                  documents (if any) continue to extend to all debts,
                  liabilities and obligations, present or future, direct or
                  indirect, absolute or contingent, matured or unmatured, at any
                  time due or accruing due, of Guarantor to any of the Banks and
                  any Agent arising under, in connection with or pursuant to the
                  Restated Credit Agreement and the other Credit Documents, as
                  acknowledged and confirmed by this Guarantor Consent Letter,
                  notwithstanding the amendment of the Restated Credit Agreement
                  by the Consent and Sixth Amendment.

         6.       From and after the date hereof, the term "Restated Credit
                  Agreement" as used in the [Bell-Canada Guaranty] [Bell-Tenex
                  Guaranty] [Bell-Future Tech Guaranty] shall mean the Restated
                  Credit Agreement, as amended by the Consent and Sixth
                  Amendment.

         7.       Guarantor's consent to the Consent and Sixth Amendment shall
                  not be construed (i) to have been required by the terms of the
                  [Bell Canada Guaranty] [Bell-Tenex Guaranty] [Bell-Future Tech
                  Guaranty], any other Credit Document or any other document,
                  instrument or agreement relating thereto or (ii) to require
                  the consent of Guarantor in connection with any future
                  amendment of the Restated Credit Agreement or any other Credit
                  Document.

<PAGE>

         IN WITNESS WHEREOF, Guarantor has executed this Guarantor Consent
Letter as of the day and year first written above.

                                   [BELL/MICROPRODUCTS CANADA-TENEX DATA ULC]
                                   [BELL MICROPRODUCTS CANADA INC.]
                                   [BELL MICROPRODUCTS - FUTURE TECH, INC.]

                                   By: ____________________________
                                         Name:_______________________
                                         Title:________________________

<PAGE>

                                   APPENDIX 4

                          FORM OF RDI PLEDGE AGREEMENT

                              RDI PLEDGE AGREEMENT

         THIS PLEDGE AGREEMENT, dated as of May [___], 2000, is executed by
Rorke Data, Inc., a Minnesota corporation ("RDI"), in favor of Collateral Agent
for the financial institutions which are from time to time parties to the
Restated Credit Agreement defined in Recital A below (collectively, the
"Banks").

                                    RECITALS

         A. Bell Microproducts Inc., a California corporation (the "Borrower"),
the Banks, California Bank & Trust (formerly known as Sumitomo Bank of
California) ("Administrative Agent"), and Union Bank of California (the
"Collateral Agent") are parties to a Third Amended and Restated Credit Agreement
dated as of November 12, 1998, as amended by (i) that certain First Amendment to
Third Amended and Restated Credit Agreement dated as of May 13, 1999, (ii) that
certain Second Amendment to Third Amended and Restated Credit Agreement dated as
of July 21, 1999, (iii) that certain Waiver and Third Amendment to Third Amended
and Restated Credit Agreement dated as of October 15, 1999, (iv) that certain
Fourth Amendment to Third Amended and Restated Credit Agreement dated as of
December 8, 1999, (v) that certain Fifth Amendment to Third Amended and Restated
Credit Agreement dated as of December 31, 1999, and (vi) that certain Consent
and Sixth Amendment to Third Amended and Restated Credit Agreement dated as of
May [__], 2000 (as amended, the "Restated Credit Agreement").

         B. The Banks' obligations to continue to make the credit accommodations
available to Borrower as set forth in the Restated Credit Agreement is subject,
among other conditions, to receipt by Collateral Agent of this Pledge Agreement,
duly executed by RDI. RDI expects to derive substantial direct and indirect
benefit from the transactions contemplated by the Restated Credit Agreement.

                                    AGREEMENT

         NOW, THEREFORE, in consideration of the above recitals and for other
good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, RDI hereby agrees with Collateral Agent, for the ratable benefit
of the Banks and the Agents, as follows:

         1. Definitions and Interpretation. When used in this Pledge Agreement,
the following terms shall have the following respective meanings:

                  "Administrative Agent" shall have the meaning given to that
         term in the Recital A hereof.

                  "Banks" shall have the meaning given to that term in the
         introductory paragraph hereof.

<PAGE>

                  "Borrower" shall have the meaning given to that term in
         Recital A hereof.

                  "Collateral" shall have the meaning given to that term in
         paragraph 2 hereof.

                  "Collateral Agent" shall have the meaning given to that term
         in the Recital A hereof.

                  "Domestic Subsidiary" shall mean, with respect to any Person,
         any Subsidiary of such Person which is created or organized in the
         United States under the laws of the United States or any state of the
         United States, and with respect to RDI, shall include, without
         limitation, as of the date hereof, each of the Subsidiaries listed on
         Part A of Attachment 1 hereto.

                  "Domestic Subsidiary Membership Interests" shall mean all
         Subsidiary Membership Interests in Domestic Subsidiaries.

                  "Domestic Subsidiary Shares" shall mean all Subsidiary Shares
         in Domestic Subsidiaries.

                  "Foreign Subsidiary" shall mean, with respect to any Person,
         any Subsidiary of such Person which is not a Domestic Subsidiary, and
         with respect to RDI, shall include, without limitation, as of the date
         hereof, each of the Subsidiaries listed on Part B of Attachment 1
         hereto.

                  "Foreign Subsidiary Membership Interests" shall mean all
         Subsidiary Membership Interests in Foreign Subsidiaries.

                  "Foreign Subsidiary Nonvoting Shares" shall mean all
         Subsidiary Shares in Foreign Subsidiaries having no voting power,
         including without limitation as of the date hereof, the Subsidiary
         Shares so designated in Part B of Attachment 1 hereto.

                  "Foreign Subsidiary Voting Shares" shall mean all Subsidiary
         Shares in Foreign Subsidiaries having voting power, including without
         limitation as of the date hereof, the Subsidiary Shares so designated
         in Part B of Attachment 1 hereto.

                  "Governance Agreements" shall mean, with respect to any entity
         which is not a corporation, the operating agreement and the other
         organizational or governing documents of such entity.

                  "Maximum Percentage" shall mean, with respect to the Foreign
         Subsidiary Voting Shares of any Foreign Subsidiary, the maximum
         percentage of such shares that can be pledged to Collateral Agent
         without increasing the gross income of RDI pursuant to Sections 951 and
         956(c) (or any successor provisions) of the Internal Revenue Code of
         1986, as amended, which percentage as of the date hereof shall be
         sixty-six percent (66%).

<PAGE>

                  "Membership Interests" shall mean, with respect to any entity
         that is not a corporation, all membership interests issued by such
         entity, together with (a) all interest in the property and assets of
         such entity; (b) all interest in and to all capital and other accounts
         maintained by such entity; (c) all rights and interests in the
         Governance Agreements of such entity, including any and all enforcement
         and cure rights thereunder, and all income, gain, loss, deductions,
         credits, capital contributions, distributions, and refunds of capital
         of any nature and the proceeds of any of the foregoing; and (d) all
         rights to exercise and enforce every right, power, remedy, authority,
         option and privilege relating to such entity, including without
         limitation, any power to dissolve such entity or terminate, cancel or
         modify any of the Governance Agreements, to exercise any right of first
         refusal or option to acquire any membership interest in such entity and
         the right to acquire or offer to third parties the membership interests
         of such entity pursuant to its Governance Agreements.

                  "Obligations" shall mean and include all loans, advances,
         debts, liabilities and obligations, howsoever arising, owed by Borrower
         to any Bank or any Agent of every kind and description (whether or not
         evidenced by any note or instrument and whether or not for the payment
         of money), direct or indirect, absolute or contingent, due or to become
         due, now existing or hereafter arising pursuant to the terms of the
         Restated Credit Agreement or any of the other Credit Documents,
         including without limitation all interest, fees, charges, expenses,
         attorneys' fees and accountants' fees chargeable to Borrower or payable
         by Borrower thereunder.

                  "Pledge Agreement" shall mean this Pledge Agreement as further
         amended, modified, supplemented or replaced from time to time.

                  "Pledged Membership Interests" shall mean the Subsidiary
         Membership Interests described in subparagraphs 2(b) and 2(d) hereof,
         whether now owned or hereafter acquired, whether certificated or
         uncertificated and whether or not described in Attachment 1.

                  "Pledged Shares" shall mean the Subsidiary Shares described in
         subparagraphs 2(a) and 2(c) hereof, whether now owned or hereafter
         acquired, whether certificated or uncertificated and whether or not
         described in Attachment 1.

                  "Restated Credit Agreement" shall have the meaning given to
         that term in Recital A hereof as further amended, modified,
         supplemented or replaced from time to time.

                  "RDI" shall have the meaning given to that term in the
         introductory paragraph hereof.

                  "Subsidiary Membership Interests" shall mean, with respect to
         any Subsidiary of RDI the ownership interest of which is not
         represented by certificated or uncertificated securities, all
         Membership Interests issued by such Subsidiary.

                  "Subsidiary Shares" shall mean, with respect to any Subsidiary
         of RDI, all Equity Securities issued by such Subsidiary.

                  "UCC" shall mean the Uniform Commercial Code as in effect in
         the State of California from time to time.

<PAGE>

Unless otherwise defined herein, all other capitalized terms used herein and
defined in the Restated Credit Agreement shall have the respective meanings
given to those terms in the Restated Credit Agreement, and all terms defined in
the UCC shall have the respective meanings given to those terms in the UCC. The
rules of construction set forth in Section I of the Restated Credit Agreement
shall, to the extent not inconsistent with the terms of this Pledge Agreement,
apply to this Pledge Agreement and are hereby incorporated by reference.

         2. Pledge. As security for the Obligations, RDI hereby pledges and
assigns to Collateral Agent (for the ratable benefit of the Banks and the
Agents) and grants to Collateral Agent (for the ratable benefit of the Banks and
the Agents) a security interest in all right, title and interest of RDI in and
to the property described in subparagraphs (a) - (f) below, whether now owned or
hereafter acquired (collectively and severally, the "Collateral"):

                  (a) All Domestic Subsidiary Shares;

                  (b) All Domestic Subsidiary Membership Interests;

                  (c) All Foreign Subsidiary Voting Shares of each Foreign
         Subsidiary equal to the Maximum Percentage therefor and all Foreign
         Subsidiary Nonvoting Shares;

                  (d) All Foreign Subsidiary Membership Interests;

                  (e) All other certificated and uncertificated securities;

                  (f) All dividends, cash, instruments and other property from
         time to time received, receivable or otherwise distributed or
         distributable in respect of or in exchange for any of the property
         described in subparagraph (a) through (e) above; and

                  (g) All proceeds of the foregoing.

         3. Representations and Warranties. RDI represents and warrants to the
Agents and the Banks as follows:

                  (a) RDI is the record legal and beneficial owner of the
         Collateral (or, in the case of after-acquired Collateral, at the time
         RDI acquires rights in the Collateral, will be the record legal and
         beneficial owner thereof). No other Person has (or, in the case of
         after-acquired Collateral, at the time RDI acquires rights therein,
         will have) any right, title, claim or interest (by way of Lien (other
         than Permitted Liens), purchase option or otherwise) in, against or to
         the Collateral.

                  (b) Collateral Agent has (or in the case of after-acquired
         Collateral, at the time RDI acquires rights therein, will have) a first
         priority perfected security interest in the Collateral.

                  (c) All Pledged Shares and all Pledged Membership Interests
         have been (or in the case of after-acquired Pledged Shares or Pledged
         Membership Interests, at the time RDI acquires rights therein, will
         have been) duly authorized, validly issued and fully paid and are (or
         in the case of after-acquired Pledged Shares or Pledged Membership
         Interests, at the time RDI acquires rights therein, will be)
         non-assessable.

<PAGE>

                  (d) No portion of the Pledged Shares consists of
         uncertificated securities.

                  (e) RDI has delivered to Collateral Agent, together with all
         necessary stock powers, endorsements, assignments and other necessary
         instruments of transfer, the originals of all Pledged Shares, other
         certificated securities, other Collateral and all certificates,
         instruments and other writings evidencing the same.

                  (f) RDI keeps all records concerning the Pledged Membership
         Interests, the other Collateral and all certificates, instruments and
         other writings evidencing the same at its chief executive office
         located at [_____________________________];

                  (g) No consent, approval, order or authorization of, or
         registration, declaration or filing with, any Governmental Authority or
         other Person (including, without limitation, the shareholders or
         members of any Person) is required in connection with the execution,
         delivery and performance by RDI of this Pledge Agreement, except such
         consents, approvals, orders, authorizations, registrations,
         declarations and filings that are so required and which have been
         obtained and are in full force and effect;

                  (h) Set forth in Attachment 1 hereto is a true, complete and
         accurate list of all Equity Securities and Membership Interests issued
         by RDI's Subsidiaries and all other Equity Securities and Membership
         Interests owned by RDI. All information set forth in Attachment 1 is
         true, complete and accurate.

         4. Covenants. RDI hereby agrees as follows:

                  (a) RDI, at RDI's expense, shall promptly procure, execute and
         deliver to Collateral Agent all documents, instruments and agreements
         and perform all acts which are necessary or desirable, or which
         Collateral Agent may reasonably request, to establish, maintain,
         preserve, protect and perfect the Collateral, the Lien granted to
         Collateral Agent therein and the first priority of such Lien or to
         enable Collateral Agent to exercise and enforce its rights and remedies
         hereunder with respect to any Collateral. Without limiting the
         generality of the preceding sentence, RDI shall (i) procure, execute
         and deliver to Collateral Agent all stock powers, endorsements,
         assignments, financing statements and other instruments of transfer
         requested by Collateral Agent, (ii) deliver to Collateral Agent
         promptly upon receipt the originals of all Pledged Shares, other
         certificated securities, other Collateral and all certificates,
         instruments and other writings evidencing the same and (iii) cause the
         Lien of Collateral Agent to be recorded or registered in the books of
         any financial intermediary or clearing corporation reasonably requested
         by Collateral Agent.

                  (b) RDI shall pay promptly when due all taxes and other
         Governmental Charges, all Liens and all other charges now or hereafter
         imposed upon, relating to or affecting any Collateral, except to the
         extent that RDI is contesting such taxes or other Governmental Charges
         in good faith by appropriate proceedings with adequate reserves
         established therefor in accordance with GAAP.

<PAGE>

                  (c) With respect to Pledged Membership Interests, RDI shall
         not (i) admit any person or entity as an additional or substitute
         member of such entity without Collateral Agent's prior written consent,
         which Collateral Agent may give or withhold in Collateral Agent's sole
         discretion; or (ii) alter, amend or modify the Governance Agreements
         without Collateral Agent's prior written consent, which Collateral
         Agent shall not unreasonably withhold; provided, however, that
         Collateral Agent's prior written consent shall not be required for
         technical amendments to the Governance Agreements which (A) in no way
         materially affect Assignor's rights or obligations under the Governance
         Agreements or (B) in no way affect the Borrower's rights or obligations
         or affect the Borrower's ability to perform its obligations or exercise
         its rights under the Credit Documents; provided further that technical
         amendments shall not include amendments to the Governance Agreements
         that affect voting or consent rights.

                  (d) Without ninety (90) days' prior written notice to
         Collateral Agent, RDI shall not change its name or place of business
         (or, if RDI has more than one place of business, its chief executive
         office), or the office in which RDI's records relating to the Pledged
         Membership Interests are kept.

                  (e) RDI shall deposit, or cause to be deposited, all
         remittances, checks and other funds (in whatever form) received with
         respect to Collateral to a deposit account in which Collateral Agent
         has a first priority perfected security interest.

                  (f) RDI shall appear in and defend any action or proceeding
         which may affect its title to or Collateral Agent's interest in the
         Collateral.

                  (g) RDI shall not surrender or lose possession of (other than
         to Collateral Agent), sell, encumber, lease, rent, option, or otherwise
         dispose of or transfer any Collateral or right or interest therein
         except as permitted in the Restated Credit Agreement.

         5. Voting Rights and Dividends Prior to Payment Default. Unless an
Event of Default under Subparagraph 6.01(a) of the Restated Credit Agreement
(whether resulting from the failure of RDI to make a scheduled payment, a
payment due upon acceleration or otherwise) has occurred and is continuing and
RDI has not made the appropriate payments under the RDI Guaranty in connection
therewith:

                  (a) RDI may exercise or refrain from exercising any and all
         voting and other consensual rights pertaining to the Pledged Shares and
         the Pledged Membership Interests or any part thereof; provided,
         however, that RDI shall not exercise or refrain from exercising any
         such rights where the consequence of such action or inaction would be
         (i) to impair any Collateral, the Lien granted to Collateral Agent
         therein, the first priority of such Lien or Collateral Agent's rights
         and remedies hereunder with respect to any Collateral or (ii) otherwise
         inconsistent with the terms of this Pledge Agreement and the other
         Credit Documents.

<PAGE>

                  (b) RDI may receive and retain all dividends and interest paid
         in cash in respect of the Pledged Shares and the Pledged Membership
         Interests, except for any such dividends and interest paid in
         connection with a partial or total liquidation or dissolution or in
         connection with a reduction of capital, capital surplus or
         paid-in-surplus. RDI shall promptly deliver to Collateral Agent to hold
         as Collateral all dividends and interest which RDI is not entitled to
         receive and retain pursuant to the preceding sentence, in the same form
         as so received (with any necessary endorsement), and, until so
         delivered, shall hold such dividends and interest in trust for the
         benefit of Collateral Agent, segregated from the other property or
         funds of RDI.

         6. Authorized Action by Collateral Agent. RDI hereby irrevocably
appoints Collateral Agent as its attorney-in-fact and agrees that Collateral
Agent may perform (but Collateral Agent shall not be obligated to and shall
incur no liability to RDI or any third party for failure so to do) any act which
RDI is obligated by this Pledge Agreement to perform, and to exercise such
rights and powers as RDI might exercise with respect to the Collateral,
including, without limitation, the right to (a) collect by legal proceedings or
otherwise and endorse, receive and receipt for all dividends, interest,
payments, proceeds and other sums and property now or hereafter payable on or on
account of the Collateral; (b) enter into any extension, reorganization,
deposit, merger, consolidation or other agreement pertaining to, or deposit,
surrender, accept, hold or apply other property in exchange for the Collateral;
(c) insure, process, preserve and enforce the Collateral; (d) make any
compromise or settlement, and take any action it deems advisable, with respect
to the Collateral; (e) pay any Indebtedness of RDI relating to the Collateral;
and (f) execute UCC financing statements and other documents, instruments and
agreements required hereunder; provided, however, that Collateral Agent may
exercise such powers only after the occurrence and during the continuance of an
Event of Default. RDI agrees to reimburse Collateral Agent within thirty (30)
days after written demand for all reasonable costs and expenses, including
attorneys' fees, Collateral Agent may incur while acting as RDI's
attorney-in-fact hereunder, all of which costs and expenses are included in the
Obligations. RDI agrees that such care as Collateral Agent gives to the
safekeeping of its own property of like kind shall constitute reasonable care of
the Collateral when in Collateral Agent's possession; provided, however, that
Collateral Agent shall not be required to make any presentment, demand or
protest, or give any notice and need not take any action to preserve any rights
against any prior party or any other Person in connection with the Obligations
or with respect to the Collateral.

         7. Events of Default.

                  (a) Event of Default. RDI shall be deemed in default under
         this Pledge Agreement upon the occurrence and during the continuance of
         an Event of Default, as that term is defined in the Restated Credit
         Agreement, which RDI has not otherwise cured under the RDI Guaranty.

                  (b) Voting Rights and Dividends. Upon the occurrence and
         during the continuance of an Event of Default under Subparagraph
         6.01(a) of the Restated Credit Agreement (whether resulting from the
         failure of Borrower to make a scheduled payment, a payment due upon
         acceleration or otherwise, or RDI to make the appropriate payments
         under the RDI Guaranty):

<PAGE>

                           (i) All rights of RDI to exercise the voting and
                  other consensual rights which it would otherwise be entitled
                  to exercise pursuant to subparagraph 5(a) hereof and to
                  receive the dividends and interest payments which it would
                  otherwise be authorized to receive and retain pursuant to
                  subparagraph 5(a) hereof shall cease and all such rights shall
                  thereupon become vested in Collateral Agent which shall
                  thereupon have the sole right, but not the obligation, to
                  exercise such voting and other consensual rights and to
                  receive and hold as Collateral such dividends and interest
                  payments.

                           (ii) RDI shall promptly deliver to Collateral Agent
                  to hold as Collateral all dividends and interest received by
                  RDI in the same form as so received (with any necessary
                  endorsement), and, until so delivered, shall hold such
                  dividends and interest in trust for the benefit of Collateral
                  Agent, segregated from the other property or funds of RDI.

                  (c) Other Rights and Remedies. In addition to all other rights
         and remedies granted to Collateral Agent by this Pledge Agreement, the
         Restated Credit Agreement, the other Credit Documents, the UCC and
         other applicable Governmental Rules, Collateral Agent may, upon the
         occurrence and during the continuance of any Event of Default, which
         RDI has not otherwise cured under the RDI Guaranty, exercise any one or
         more of the following rights and remedies: (i) collect, receive,
         appropriate or realize upon the Collateral or otherwise foreclose or
         enforce Collateral Agent's security interests in any or all Collateral
         in any manner permitted by applicable Governmental Rules or in this
         Pledge Agreement; (ii) notify any or all issuers of or transfer or
         paying agents for the Collateral or any applicable clearing
         corporation, financial intermediary or other Person to register the
         Collateral in the name of Collateral Agent or its nominee and/or to pay
         all dividends, interest and other amounts payable in respect of the
         Collateral directly to Collateral Agent; (iii) subject to applicable
         law, sell or otherwise dispose of any or all Collateral at one or more
         public or private sales, whether or not such Collateral is present at
         the place of sale, for cash or credit or future delivery, on such terms
         and in such manner as Collateral Agent may determine; and (iv) require
         RDI to assemble all records and information relating to the Collateral
         and make it available to Collateral Agent at a place to be designated
         by Collateral Agent. In any case where notice of any sale or
         disposition of any Collateral is required, RDI hereby agrees that seven
         (7) days notice of such sale or disposition is reasonable.

                  (d) Securities Laws.

                           (i) RDI acknowledges and recognizes that Collateral
                  Agent may be unable to effect a public sale of all or a part
                  of the Pledged Shares and may be compelled to resort to one or
                  more private sales to a restricted group of purchasers who
                  will be obligated to agree, among other things, to acquire the
                  Pledged Shares for their own account, for investment and not
                  with a view to the distribution or resale thereof. RDI
                  acknowledges that any such private sales may be at prices and

<PAGE>

                  on terms less favorable to Collateral Agent than those of
                  public sales, and agrees that such private sales shall be
                  deemed to have been made in a commercially reasonable manner
                  and that Collateral Agent has no obligation to delay sale of
                  any Pledged Shares to permit the issuer thereof to qualify the
                  Pledged Shares for distribution by prospectus under applicable
                  Canadian securities laws, or register it for public sale under
                  the Securities Act of 1933, as amended, or under any state
                  securities law.

                           (ii) Upon the occurrence of an Event of Default, not
                  otherwise cured by RDI under the RDI Guaranty and at
                  Collateral Agent's request, RDI shall, and shall cause all
                  issuers of Collateral and all officers and directors thereof
                  and all other necessary Persons to, execute and deliver all
                  documents, instruments and agreements and perform all other
                  acts necessary or, in the opinion of Collateral Agent,
                  advisable to sell the Collateral in any public or private
                  sale, including any acts requested by Collateral Agent to (A)
                  register any Collateral under the Securities Act of 1933, (B)
                  qualify any Collateral under any state securities or "Blue
                  Sky" laws or (C) otherwise permit any such sale to be made in
                  full compliance with all applicable Governmental Rules.

         8. Authorizations. RDI authorizes the Banks and the Agents, in their
discretion, without notice to RDI, irrespective of any change in the financial
condition of Borrower, RDI or any other guarantor of the Obligations since the
date hereof, and without affecting or impairing in any way the liability of RDI
hereunder, from time to time to (a) create new Obligations, and, either before
or after receipt of notice of revocation, renew, compromise, extend, accelerate
or otherwise change the time for payment or performance of, or otherwise change
the terms of the Obligations or any part thereof, including increase or decrease
of the rate of interest thereon; (b) take and hold security for the payment or
performance of the Obligations and exchange, enforce, waive or release any such
security; (c) apply such security and direct the order or manner of sale
thereof; (d) purchase such security at public or private sale; (e) otherwise
exercise any right or remedy it may have against Borrower, RDI, any other
guarantor of the Obligations or any security, including, without limitation, the
right to foreclose upon any such security by judicial or nonjudicial sale; (f)
settle, compromise with, release or substitute any one or more makers, endorsers
or guarantors of the Obligations or any Collateral; and (g) assign the
Obligations, this Pledge Agreement, or the other Credit Documents in whole or in
part.

         9. Waivers. RDI waives (a) any right to require the Banks or the Agents
to (i) proceed against Borrower or any other guarantor of the Obligations, (ii)
proceed against or exhaust any security received from Borrower or any other
guarantor of the Obligations, or (iii) pursue any other remedy in the Banks' or
the Agents' power whatsoever; (b) any defense arising by reason of the
application by Borrower of the proceeds of any borrowing; (c) any defense
resulting from the absence, impairment or loss of any right of reimbursement,
subrogation, contribution or other right or remedy of RDI against Borrower, any
other guarantor of the Obligations or any security, whether resulting from an
election by the Agents or the Banks to foreclose upon security by nonjudicial
sale, or otherwise; (d) any setoff or counterclaim of Borrower or any defense
which results from any disability or other defense of Borrower or the cessation
or stay of enforcement from any cause whatsoever of the liability of Borrower
(including, without limitation, the lack of validity or enforceability of any
Credit Document); (e) any right to exoneration of sureties which would otherwise
be applicable; (f) until all obligations of the Banks to extend credit under the
Restated Credit Agreement are terminated and all Obligations of Borrower are
satisfied in full, any right of subrogation or reimbursement and, if there are
any other guarantors of the Obligations, any right of contribution, and right to

<PAGE>

enforce any remedy which any Agent or any Bank now has or may hereafter have
against Borrower, and any benefit of, and any right to participate in, any
security now or hereafter received by the Agents or the Banks; (g) all
presentments, demands for performance, notices of non-performance, notices
delivered under the Restated Credit Agreement or any Credit Document, protests,
notice of dishonor, and notices of acceptance of this Pledge Agreement and of
the existence, creation or incurring of new or additional Obligations and
notices of any public or private foreclosure sale; (h) the benefit of any
statute of limitations to the extent permitted by law; (i) any appraisement,
valuation, stay, extension, moratorium, redemption or similar law or similar
rights for marshalling; and (j) any right to be informed by any Agent or any
Bank of the financial condition of Borrower or any other guarantor of the
Obligations or any change therein or any other circumstances bearing upon the
risk of nonpayment or nonperformance of the Obligations. RDI has the ability and
assumes the responsibility for keeping informed of the financial condition of
Borrower and any other guarantors of the Obligations and of other circumstances
affecting such nonpayment and nonperformance risks. Without limiting the
generality of any of the foregoing, RDI hereby waives (i) all rights and
defenses arising out of an election of remedies by any Agent or any Bank, even
though that election of remedies, such as a nonjudicial foreclosure with respect
to security for an obligation, has destroyed RDI's rights of subrogation and
reimbursement against Borrower by the operation of Section 580d of the Code of
Civil Procedure or otherwise, (ii) all rights and defenses RDI may have by
reason of protection afforded to Borrower with respect to the Obligations
pursuant to the antideficiency or other laws of California limiting or
discharging the Pledge Agreement, including, without limitation, Section 580a,
580b, 580d, or 726 of the California Code of Civil Procedure, and (iii) all
other rights and defenses available to RDI by reason of Sections 2787 to 2855,
inclusive, of the California Civil Code.

         10. Miscellaneous.

                  (a) Notices. Except as otherwise provided herein, all notices,
         requests, demands, consents, instructions or other communications to or
         upon Collateral Agent or RDI under this Pledge Agreement shall be by
         facsimile or in writing and faxed, mailed, telexed or delivered to each
         party at its facsimile number or its address set forth below. All such
         notices and communications: when sent by Federal Express or other
         overnight service, shall be effective on the Business Day following the
         deposit with such service; when mailed, first class postage prepaid and
         addressed as aforesaid in the mails, shall be effective upon receipt;
         when telexed, shall be effective upon receipt of answerback; when
         delivered by hand, shall be effective upon delivery; and when faxed,
         shall be effective upon confirmation of receipt.

         Collateral Agent:        Union Bank of California, N.A.
                                  Northern California Commercial Banking Group
                                  350 California Street, 10th Floor
                                  San Francisco, CA  94104
                                  Attention:  William Hinch
                                              Vice President
                                  Telephone: (415) 705-7028
                                  Facsimile: (415) 705-7111

<PAGE>

         RDI:                     Rorke Data, Inc.
                                  c/o Bell Microproducts, Inc.
                                  1941 Ringwood Avenue
                                  San Jose, CA  95131
                                  Attn: Mr. Don W. Bell
                                        President
                                  Telephone:  (408) 451-1635
                                  Facsimile:  (408) 451-1694

                  (b) Waivers; Amendments. Any term, covenant, agreement or
         condition of this Pledge Agreement may be amended or waived by written
         instruments signed by RDI and Collateral Agent. No failure or delay by
         any Agent or any Bank in exercising any right hereunder shall operate
         as a waiver thereof or of any other right nor shall any single or
         partial exercise of any such right preclude any other further exercise
         thereof or of any other right. Unless otherwise specified in any such
         waiver or consent, a waiver or consent given hereunder shall be
         effective only in the specific instance and for the specific purpose
         for which given.

                  (c) Successors and Assigns. This Pledge Agreement shall be
         binding upon and inure to the benefit of the Agents, the Banks and RDI
         and their respective successors and assigns; provided, however, that
         the Agents, the Banks and RDI may sell, assign and delegate their
         respective rights and obligations hereunder only as permitted by the
         Restated Credit Agreement. The Agents and the Banks may disclose this
         Pledge Agreement as provided in the Restated Credit Agreement.

                  (d) Partial Invalidity. If at any time any provision of this
         Pledge Agreement is or becomes illegal, invalid or unenforceable in any
         respect under the law of any jurisdiction, neither the legality,
         validity or enforceability of the remaining provisions of this Pledge
         Agreement nor the legality, validity or enforceability of such
         provision under the law of any other jurisdiction shall in any way be
         affected or impaired thereby.

                  (e) Cumulative Rights, etc. The rights, powers and remedies of
         the Agents and the Banks under this Pledge Agreement shall be in
         addition to all rights, powers and remedies given to the Agents and the
         Banks by virtue of any applicable Governmental Rule, the Restated
         Credit Agreement, any other Credit Document or any other agreement, all
         of which rights, powers, and remedies shall be cumulative and may be
         exercised successively or concurrently without impairing Collateral
         Agent's rights hereunder. RDI waives any right to require any Agent or
         any Bank to proceed against any Person or to exhaust any Collateral or
         to pursue any remedy in such Agent's or such Bank's power.

                  (f) Payments Free of Taxes, Etc. All payments made by RDI
         under this Pledge Agreement shall be made by RDI free and clear of and
         without deduction for any and all present and future taxes, levies,
         charges, deductions and withholdings. In addition, RDI shall pay
         promptly when due any stamp or other taxes, levies or charges of any
         jurisdiction with respect to the execution, delivery, registration,

<PAGE>

         performance and enforcement of this Pledge Agreement. Upon request by
         Collateral Agent, RDI shall furnish evidence satisfactory to Collateral
         Agent that all requisite authorizations and approvals by, and notices
         to and filings with, governmental authorities and regulatory bodies
         have been obtained and made and that all requisite taxes, levies and
         charges have been paid.

                  (g) Governing Law and Jurisdiction. This Pledge Agreement
         shall be governed by and construed in accordance with the laws of the
         State of California without reference to conflicts of law rules. Any
         legal action or proceeding with respect to this Pledge Agreement may be
         brought in the courts of the State of California or of the United
         States for the Northern District of California, and by execution and
         delivery of this Pledge Agreement, RDI consents, for itself and in
         respect of its property, to the non-exclusive jurisdiction of those
         courts. RDI irrevocably waives any objection, including any objection
         to the laying of venue or based on the grounds of forum non conveniens,
         which it may now or hereafter have to the bringing of any action or
         proceeding in such jurisdiction in respect of this Pledge Agreement.
         RDI waives personal service of any summons, complaint or other process,
         which may be made by any other means permitted by California law.

                  (h) Arbitration.

                           (i) This subparagraph 10(h) concerns the resolution
                  of any controversies or claims between or among RDI, any Bank
                  and any Agent, including but not limited to those that arise
                  from:

                                    (A) This Pledge Agreement or any other
                           Credit Document to which RDI is a party;

                                    (B) Any violation of this Pledge Agreement
                           or any other Credit Document to which RDI is a party;
                           or

                                    (C) Any claims for damages resulting from
                           any business conducted between RDI and any Bank or
                           any Agent, including claims for injury to persons,
                           property or business interests.

                           (ii) At the request of RDI, any Bank or any Agent,
                  any controversies or claims will be settled by arbitration in
                  accordance with the United States Arbitration Act. The United
                  States Arbitration Act will apply even though this Agreement
                  provides that it is governed by California law.

                           (iii) Arbitration proceedings will be administered by
                  the American Arbitration Association and will be subject to
                  its commercial rules of arbitration. The arbitration will be
                  conducted within the California county of San Francisco.

                           (iv) For purposes of the application of the statute
                  of limitation, the filing of an arbitration pursuant to this
                  subparagraph is the equivalent of the filing of a lawsuit, and
                  any claim or controversy which may be arbitrated under this
                  subparagraph is subject to any applicable statute of
                  limitations. The arbitrators will have the authority to decide
                  whether any such claim or controversy is barred by the statute
                  of limitations and if so to dismiss the arbitration on that
                  basis.

<PAGE>

                           (v) If there is a dispute as to whether an issue is
                  arbitrable, the arbitrators will have the authority to resolve
                  any such dispute.

                           (vi) The decision that results from an arbitration
                  proceeding may be submitted to any authorized court of law to
                  be confirmed and enforced.

                           (vii) The procedure described above will not apply if
                  the controversy or claim, at the time of the proposed
                  submission to arbitration arises from or relates to an
                  obligation to Bank secured by real property located in
                  California. If the obligation is secured by real property,
                  RDI, each Bank and each Agent must consent to submission of
                  the claim or controversy to arbitration. If all parties do not
                  consent to arbitration, the controversy or claim will be
                  settled as follows:

                                    (A) RDI, the Banks and the Agents will
                           designate a referee (or a panel of referees) selected
                           under the auspices of the American Arbitration
                           Association in the same manner as arbitrators are
                           selected in Association-sponsored proceedings;

                                    (B) The designated referee (or the panel of
                           referees) will be appointed by a court as provided in
                           California Code of Civil Procedure Section 638 and
                           the following related sections;

                                    (C) The referee (or the presiding referee of
                           the panel) will be an active attorney or a retired
                           judge; and

                                    (D) The award that results from the decision
                           of the referee (or the panel) will be entered as a
                           judgment in the court that appointed the referee, in
                           accordance with the provisions of California Code of
                           Civil Procedure Sections 644 and 645.

                           (viii) This subparagraph 10(h) does not limit the
                  right of RDI, any Bank or any Agent to:

                                    (A) Exercise self-help remedies such as
                           setoff;

                                    (B) Foreclose against or sell any real or
                           personal property collateral; or

                                    (C) Take action in a court of law, before,
                           during or after the arbitration proceeding to obtain
                           an interim remedy or additional or supplementary
                           remedies.

<PAGE>

                           (ix) The pursuit of or a decision in an action for
                  interim, additional or supplementary remedies, or the filing
                  of a court action, does not constitute a waiver of the right
                  of RDI, any Bank or any Agent, including the suing party, to
                  submit the controversy or claim to arbitration.

                  (i) JURY TRIAL. EACH OF RDI, THE BANKS AND THE AGENTS, TO THE
         FULLEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY IRREVOCABLY WAIVES
         ALL RIGHT TO TRIAL BY JURY AS TO ANY ISSUE RELATING HERETO IN ANY
         ACTION, PROCEEDING, OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS
         PLEDGE AGREEMENT OR ANY OTHER CREDIT DOCUMENT NOT RESOLVED PURSUANT TO
         SUBPARAGRAPH 10(h) HEREOF.

<PAGE>

         IN WITNESS WHEREOF, RDI has caused this Pledge Agreement to be executed
as of the day and year first above written.

                                RORKE DATA, INC.

                                By:
                                     Name:
                                     Title:

                                By:
                                     Name:
                                     Title:

                                UNION BANK OF CALIFORNIA, N.A.
                                as Collateral Agent

                                By:
                                     Name:
                                     Title:

<PAGE>

                                  ATTACHMENT 1
                               TO PLEDGE AGREEMENT

                                     Part A

     Domestic Subsidiary Shares and Domestic Subsidiary Membership Interests

                                                 Shares or        Shares or
                              Outstanding        Membership       Membership
                               Shares or       Interests Owned  Interests Owned
                      Class   Membership          Directly         Indirectly
  Issuer            of Stock   Interests           by RDI            by RDI

Not Applicable
No domestic
  subsidiaries

<PAGE>

                                  ATTACHMENT 1
                               TO PLEDGE AGREEMENT

                                     Part B

      Foreign Subsidiary Shares and Foreign Subsidiary Membership Interests
                                                 Shares or        Shares or
                                Outstanding      Membership       Membership
                                 Shares or     Interests Owned  Interests Owned
                      Class     Membership        Directly         Indirectly
  Issuer            of Stock(1)  Interests         by RDI            by RDI

Rorke Data Europe
 Holding B.V.        Common      [____]             400                0

---------------
(1)  Asterisks indicate non-voting. Otherwise all listed are voting.

<PAGE>

                                   APPENDIX 5

                      FORM OF RDI AND RORKE EUROPE GUARANTY

                    [RORKE DATA, INC.][RORKE EUROPE] GUARANTY

         THIS GUARANTY, dated as of July 21, 1999 is executed by [RORKE DATA,
INC.][RORKE DATA EUROPE HOLDING B.V.], a [Minnesota][Netherlands] corporation
("Guarantor"), in favor of Collateral Agent for the financial institutions which
are from time to time parties to the Restated Credit Agreement referred to in
Recital A below (collectively, the "Banks").

                                    RECITALS

         A. Bell Microproducts Inc., a California corporation (the "Borrower"),
the Banks, California Bank & Trust (formerly known as Sumitomo Bank of
California) ("Administrative Agent"), and Union Bank of California (the
"Collateral Agent") are parties to a Third Amended and Restated Credit Agreement
dated as of November 12, 1998, as amended by (i) that certain First Amendment to
Third Amended and Restated Credit Agreement dated as of May 13, 1999, (ii) that
certain Second Amendment to Third Amended and Restated Credit Agreement dated as
of July 21, 1999, (iii) that certain Waiver and Third Amendment to Third Amended
and Restated Credit Agreement dated as of October 15, 1999, (iv) that certain
Fourth Amendment to Third Amended and Restated Credit Agreement dated as of
December 8, 1999, (v) that certain Fifth Amendment to Third Amended and Restated
Credit Agreement dated as of December 31, 1999, and (vi) that certain Consent
and Sixth Amendment to Third Amended and Restated Credit Agreement dated as of
May [__], 2000 (as amended, the "Restated Credit Agreement").

         B. The Banks' obligations to continue to make the credit accommodations
available to Borrower as set forth in the Restated Credit Agreement is subject,
among other conditions, to receipt by Collateral Agent of this Guaranty, duly
executed by Guarantor. Guarantor expects to derive substantial direct and
indirect benefit from the transactions contemplated by the Restated Credit
Agreement.

                                    AGREEMENT

         NOW, THEREFORE, in consideration of the above recitals and for other
good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, Guarantor hereby agrees with Collateral Agent, for the ratable
benefit of the Banks and the Agents, as follows:

         1.       Definitions and Interpretation.

                  (a) Definitions. When used in this Guaranty, the following
         terms shall have the following respective meanings:

                           "Adjusted Net Worth" shall mean, with respect to
                  Guarantor at any time, the remainder of (i) the fair value of
                  the assets of Guarantor as of such date, minus (ii) the fair
                  value of the liabilities of Guarantor as of such date
                  (excluding, however, any liability of Guarantor hereunder),
                  such assets and liabilities to be determined in accordance
                  with any state or federal fraudulent conveyance or transfer
                  law which is applicable to this Guaranty.

<PAGE>

                           "Administrative Agent" shall have the meaning given
                  to that term in Recital A hereof.

                           "Banks" shall have the meaning given to that term in
                  the introductory paragraph hereof.

                           "Borrower" shall have the meaning given to that term
                  in the Recital A hereof.

                           "Disallowed Post-Commencement Interest and Expenses"
                  shall mean interest computed at the rate provided in the
                  Restated Credit Agreement and claims for reimbursement, costs,
                  expenses or indemnities under the terms of any of the Credit
                  Documents accruing or claimed at any time after the
                  commencement of any Insolvency Proceeding, if the claim for
                  such interest, reimbursement, costs, expenses or indemnities
                  is not allowable, allowed or enforceable against Borrower in
                  such Insolvency Proceeding.

                           "Guaranteed Obligations" shall mean all loans,
                  advances, debts, liabilities and obligations, howsoever
                  arising, owed by Borrower to any Agent or any Bank of every
                  kind and description (whether or not evidenced by any note or
                  instrument and whether or not for the payment of money),
                  direct or indirect, absolute or contingent, due or to become
                  due, now existing or hereafter arising pursuant to the terms
                  of the Restated Credit Agreement or any of the other Credit
                  Documents, including, without limitation, all principal,
                  interest, rent, fees, taxes, charges, expenses, attorneys'
                  fees and accountants' fees chargeable to Borrower or payable
                  by Borrower thereunder.

                           "Guarantor" shall have the meaning given to that term
                  in the introductory paragraph hereof.

                           "Guarantor Documents" shall have the meaning given to
                  that term in paragraph 3 hereof.

                           "Insolvency Proceeding" shall mean any case or
                  proceeding under the United States Bankruptcy Code or any
                  other similar law, rule or regulation of the United States or
                  any jurisdiction or any other action or proceeding for the
                  reorganization, liquidation, appointment of a receiver,
                  rearrangement of debts, marshalling of assets or similar
                  action relating to Borrower or Guarantor, their respective
                  creditors or any substantial part of their respective assets,
                  whether or not any such case, proceeding or action is
                  voluntary or involuntary.

                           "Maximum Guaranty Amount" shall mean, at any time,
                  the greatest of (i) ninety-five percent (95%) of the Adjusted
                  Net Worth of Guarantor at such time, (ii) ninety-five percent
                  (95%) of the Adjusted Net Worth of Guarantor on the date
                  hereof and (iii) the value derived by Guarantor from the
                  Guaranteed Obligations incurred at or prior to such time.

<PAGE>

                           "Restated Credit Agreement" shall have the meaning
                  given to that term in the Recital A hereof.

         Unless otherwise defined herein, all other capitalized terms used
         herein and defined in the Restated Credit Agreement shall have the
         respective meanings given to those terms in the Restated Credit
         Agreement.

                  (b) Other Interpretive Provisions. The rules of construction
         set forth in Section I of the Restated Credit Agreement shall, to the
         extent not inconsistent with the terms of this Guaranty, apply to this
         Guaranty and are hereby incorporated by reference. Guarantor
         acknowledges receipt of copies of the Restated Credit Agreement and the
         other Credit Documents.

         2.       Guaranty.

                  (a) Payment Guaranty. Guarantor unconditionally guarantees and
         promises to pay and perform as and when due, whether at stated
         maturity, upon acceleration or otherwise, any and all of the Guaranteed
         Obligations. If any Insolvency Proceeding relating to Borrower is
         commenced, Guarantor further unconditionally guarantees and promises to
         pay and perform, upon the demand of Collateral Agent, any and all of
         the Guaranteed Obligations (including any and all Disallowed
         Post-Commencement Interest and Expenses) in accordance with the terms
         of the Credit Documents, whether or not such obligations are then due
         and payable by Borrower and whether or not such obligations are
         modified, reduced or discharged in such Insolvency Proceeding. This
         Guaranty is a guaranty of payment and not of collection.

                  (b) Continuing Guaranty. This Guaranty is an irrevocable
         continuing guaranty of the Guaranteed Obligations which shall continue
         in effect until all obligations of the Banks to extend credit to
         Borrower have terminated and all of the Guaranteed Obligations have
         been fully, finally and indefeasibly paid. If any payment on any
         Guaranteed Obligation is set aside, avoided or rescinded or otherwise
         recovered from any Agent or any Bank, such recovered payment shall
         constitute a Guaranteed Obligation hereunder and, if this Guaranty was
         previously released or terminated, it automatically shall be fully
         reinstated, as if such payment was never made.

                  (c) Independent Obligation. The liability of Guarantor
         hereunder is independent of the Guaranteed Obligations, and a separate
         action or actions may be brought and prosecuted against Guarantor
         irrespective of whether action is brought against Borrower or any other
         guarantor of the Guaranteed Obligations or whether Borrower or any
         other guarantor of the Guaranteed Obligations is joined in any such
         action or actions.

<PAGE>

                  (d) Maximum Guaranty Amount. The liability of Guarantor under
         this Guaranty shall not at any time exceed the Maximum Guaranty Amount;
         provided, however, that the Agents and the Banks may permit the
         Guaranteed Obligations to exceed the foregoing limitation without
         affecting Guarantor's liability hereunder.

                  (e) Termination. This Guaranty shall continue to be in full
         force and effect and applicable to any Guaranteed Obligations arising
         thereafter which arise because prior payments of Guaranteed Obligations
         are rescinded or otherwise required to be surrendered by any Agent or
         any Bank after receipt.

         3. Representations and Warranties. Guarantor represents and warrants to
the Agents and the Banks that (a) Guarantor is a corporation duly organized,
validly, existing and in good standing under the laws of its state of
incorporation and is duly qualified and in good standing in each jurisdiction
where the nature of its business or properties requires such qualification,
except where the failure to qualify could not have a Material Adverse Effect;
(b) the execution, delivery and performance by Guarantor of this Guaranty and
the other Credit Documents executed or to be executed by Guarantor
(collectively, the "Guarantor Documents") are within the power of Guarantor and
have been duly authorized by all necessary actions on the part of Guarantor; (c)
this Guaranty and the other Guarantor Documents have been duly executed and
delivered by Guarantor and constitute legal, valid and binding obligations of
Guarantor, enforceable against it in accordance with their terms, except as
limited by bankruptcy, insolvency or other laws of general application relating
to or affecting the enforcement of creditors' rights generally; (d) the
execution, delivery and performance of this Guaranty and the other Guarantor
Documents do not (i) violate any Requirement of Law applicable to Guarantor,
(ii) contravene any material Contractual Obligation of Guarantor, or (iii)
result in the creation or imposition of any Lien upon any property, asset or
revenue of Guarantor except Permitted Liens; (e) no consent, approval, order or
authorization of, or registration, declaration or filing with, any Governmental
Authority or other Person (including, without limitation, the shareholders of
any Person) is required in connection with the execution, delivery and
performance by Guarantor of this Guaranty and the other Guarantor Documents,
except such consents, approvals, orders, authorizations, registrations,
declarations and filings that are so required and which have been obtained and
are in full force and effect; (f) Guarantor has paid all taxes and other charges
imposed by any Governmental Authority due and payable by Guarantor other than
those which are being challenged in good faith by appropriate proceedings and
for which adequate reserves have been established; (g) Guarantor is not in
violation of any Requirement of Law or Contractual Obligation applicable to
Guarantor other than those the consequences of which could not have a Material
Adverse Effect; (h) Guarantor is neither an investment company (as defined in
the Investment Company Act of 1940) nor controlled by an investment company; and
(i) no litigation, investigation or proceeding of any Governmental Authority is
pending or, to the knowledge of Guarantor, threatened against Guarantor which,
if adversely determined, could have a Material Adverse Effect.

         4. Covenants. Guarantor hereby agrees (a) to deliver to Collateral
Agent (i) promptly after Guarantor becomes aware of any Default or Event of
Default or of any other event or condition which could have a Material Adverse
Effect, notice thereof, and (ii) such other information regarding the business,
operations or financial or other condition of Guarantor as Collateral Agent may
reasonably request; (b) to the extent failure to do so could have a Material
Adverse Effect, to pay all taxes and other charges imposed by any Government
Authority upon Guarantor or its property as and when they become due; (c) to the
extent failure to do so could have a Material Adverse Effect, to comply with all
Requirements of Law and Contractual Obligations applicable to Guarantor; (d) to
maintain its corporate existence and all rights, privileges and franchises

<PAGE>

necessary for the conduct of its business; (e) to maintain with financially
sound and reputable insurance carriers insurance in such amounts, with such
deductibles and covering such risks as is customary for companies engaged in
similar businesses in the same geographic areas as Guarantor; and (f) to the
extent covenants set forth in the Restated Credit Agreement apply to
Subsidiaries of Borrower, to comply with such covenants.

         5. Authorizations. Guarantor authorizes the Banks and the Agents, in
their discretion, without notice to Guarantor, irrespective of any change in the
financial condition of Borrower, Guarantor or any other guarantor of the
Guaranteed Obligations since the date hereof, and without affecting or impairing
in any way the liability of Guarantor hereunder, from time to time to (a) create
new Guaranteed Obligations, and, either before or after receipt of notice of
revocation, renew, compromise, extend, accelerate or otherwise change the time
for payment or performance of, or otherwise change the terms of the Guaranteed
Obligations or any part thereof, including increase or decrease of the rate of
interest thereon; (b) take and hold security for the payment or performance of
the Guaranteed Obligations and exchange, enforce, waive or release any such
security; (c) apply such security and direct the order or manner of sale
thereof; (d) purchase such security at public or private sale; (e) otherwise
exercise any right or remedy it may have against Borrower, Guarantor, any other
guarantor of the Guaranteed Obligations or any security, including, without
limitation, the right to foreclose upon any such security by judicial or
nonjudicial sale; (f) settle, compromise with, release or substitute any one or
more makers, endorsers or guarantors of the Guaranteed Obligations or any
Collateral; and (g) assign the Guaranteed Obligations, this Guaranty, or the
other Credit Documents in whole or in part.

         6. Waivers. Guarantor waives (a) any right to require the Banks or the
Agents to (i) proceed against Borrower or any other guarantor of the Guaranteed
Obligations, (ii) proceed against or exhaust any security received from Borrower
or any other guarantor of the Guaranteed Obligations, or (iii) pursue any other
remedy in the Banks' or the Agents' power whatsoever; (b) any defense arising by
reason of the application by Borrower of the proceeds of any borrowing; (c) any
defense resulting from the absence, impairment or loss of any right of
reimbursement, subrogation, contribution or other right or remedy of Guarantor
against Borrower, any other guarantor of the Guaranteed Obligations or any
security, whether resulting from an election by the Agents or the Banks to
foreclose upon security by nonjudicial sale, or otherwise; (d) any setoff or
counterclaim of Borrower or any defense which results from any disability or
other defense of Borrower or the cessation or stay of enforcement from any cause
whatsoever of the liability of Borrower (including, without limitation, the lack
of validity or enforceability of any Credit Document); (e) any right to
exoneration of sureties which would otherwise be applicable; (f) until all
obligations of the Banks to extend credit under the Restated Credit Agreement
are terminated and all Guaranteed Obligations of Borrower are satisfied in full,
any right of subrogation or reimbursement and, if there are any other guarantors
of the Guaranteed Obligations, any right of contribution, and right to enforce
any remedy which any Agent or any Bank now has or may hereafter have against
Borrower, and any benefit of, and any right to participate in, any security now
or hereafter received by the Agents or the Banks; (g) all presentments, demands
for performance, notices of non-performance, notices delivered under the
Restated Credit Agreement or any Credit Document, protests, notice of dishonor,

<PAGE>

and notices of acceptance of this Guaranty and of the existence, creation or
incurring of new or additional Guaranteed Obligations and notices of any public
or private foreclosure sale; (h) the benefit of any statute of limitations to
the extent permitted by law; (i) any appraisement, valuation, stay, extension,
moratorium, redemption or similar law or similar rights for marshalling; and (j)
any right to be informed by any Agent or any Bank of the financial condition of
Borrower or any other guarantor of the Guaranteed Obligations or any change
therein or any other circumstances bearing upon the risk of nonpayment or
nonperformance of the Guaranteed Obligations. Guarantor has the ability and
assumes the responsibility for keeping informed of the financial condition of
Borrower and any other guarantors of the Guaranteed Obligations and of other
circumstances affecting such nonpayment and nonperformance risks. Without
limiting the generality of any of the foregoing, Guarantor hereby waives (i) all
rights and defenses arising out of an election of remedies by any Agent or any
Bank, even though that election of remedies, such as a nonjudicial foreclosure
with respect to security for an obligation, has destroyed such Guarantor's
rights of subrogation and reimbursement against Borrower by the operation of
Section 580d of the Code of Civil Procedure or otherwise, (ii) all rights and
defenses Guarantor may have by reason of protection afforded to Borrower with
respect to the Guaranteed Obligations pursuant to the antideficiency or other
laws of California limiting or discharging the Guaranty, including, without
limitation, Section 580a, 580b, 580d, or 726 of the California Code of Civil
Procedure, and (iii) all other rights and defenses available to Guarantor by
reason of Sections 2787 to 2855, inclusive, of the California Civil Code.

         7. Subordination. Guarantor hereby subordinates any Indebtedness of
Borrower to Guarantor to the Guaranteed Obligations. Guarantor agrees that after
the occurrence and during the continuance of any Default or Event of Default the
Banks and the Agents shall be entitled to receive payment of all Guaranteed
Obligations before Guarantor receives payment of any Indebtedness of Borrower to
Guarantor. Any payments on such Indebtedness of Borrower to Guarantor made after
the occurrence and during the continuance of any Default or Event of Default, if
Collateral Agent so requests, shall be collected, enforced and received by
Guarantor as trustee for Collateral Agent and be paid over to Collateral Agent
on account of the Guaranteed Obligations, but without reducing or affecting in
any manner the liability of Guarantor under the other provisions of this
Guaranty. After the occurrence and during the continuance of any Default or
Event of Default, Collateral Agent is authorized and empowered (but without any
obligation to so do), in its discretion, (a) in the name of Guarantor, to
collect and enforce, and to submit claims in respect of, Indebtedness of
Borrower to Guarantor and to apply any amounts received thereon to the
Guaranteed Obligations, and (b) to require Guarantor (i) to collect and enforce,
and to submit claims in respect of, Indebtedness of Borrower to Guarantor, and
(ii) to pay any amounts received on such Indebtedness to Collateral Agent for
application to the Guaranteed Obligations.

         8. General Pledge; Setoff.

                  (a) Pledge. In addition to all liens upon and rights of setoff
         against the property of Guarantor given to any Agent or any Bank by law
         or separate agreement to secure the liabilities of Guarantor hereunder,
         to the extent permitted by law, Guarantor hereby grants to Collateral
         Agent, for the benefit of the Banks and the Agents, a security interest
         in all monies, deposit accounts, securities and other property of
         Guarantor now or hereafter in the possession of or on deposit with any
         Agent or any Bank, whether held in a general or special account or
         deposit, or for safekeeping or otherwise; and the Agents and the Banks
         shall have all rights and remedies of a secured party with respect to
         such property.

<PAGE>

                  (b) Setoff. In addition to any rights and remedies of the
         Agent and the Banks provided by law, the Agents and the Banks shall
         have the right, without prior notice to Guarantor, any such notice
         being expressly waived by Guarantor to the extent permitted by
         applicable law, upon the occurrence and during the continuance of a
         Default or an Event of Default, to set-off and apply against the
         Guaranteed Obligations then due any amount owing from any Bank or any
         Agent to Guarantor, including all deposits, accounts and moneys of
         Guarantor then or thereafter maintained with any Bank or any Agent, at
         or at any time after, the happening of any of the above mentioned
         events.

                  (c) Nonwaiver. No security interest or right of setoff shall
         be deemed to have been waived by any act or conduct on the part of any
         Bank or any Agent or by any failure to exercise such right of setoff or
         to enforce such security interest, or by any delay in so doing; and
         every right of setoff and security interest shall continue in full
         force and effect until such right of setoff or security interest is
         specifically waived or released by an instrument in writing executed by
         Collateral Agent.

         9. Miscellaneous.

                  (a) Notices. Except as otherwise provided herein, all notices,
         requests, demands, consents, instructions or other communications to or
         upon Collateral Agent or Guarantor under this Guaranty shall be by
         facsimile or in writing and faxed, mailed, telexed or delivered to each
         party at its facsimile number or its address set forth below. All such
         notices and communications: when sent by Federal Express or other
         overnight service, shall be effective on the Business Day following the
         deposit with such service; when mailed, first class postage prepaid and
         addressed as aforesaid in the mails, shall be effective upon receipt;
         when telexed, shall be effective upon receipt of answerback; when
         delivered by hand, shall be effective upon delivery; and when faxed,
         shall be effective upon confirmation of receipt.

         Collateral Agent:   Union Bank of California, N.A.
                             Northern California Commercial Banking Group
                             350 California Street, 10th Floor
                             San Francisco, CA  94104
                             Attention:  William Hinch
                                         Vice President
                             Telephone: (415) 705-7028
                             Facsimile: (415) 705-7111

         Guarantor:          [Rorke Data, Inc.][Rorke Data Europe Holding B.V.]
                             c/o Bell Microproducts, Inc.
                             1941 Ringwood Avenue
                             San Jose, CA  95131
                             Attn: Mr. Don W. Bell
                                    President
                             Telephone:  (408) 451-1635
                             Facsimile:  (408) 451-1694

<PAGE>

                  (b) Waivers; Amendments. This Guaranty may not be amended or
         modified, nor may any of its terms be waived, except by written
         instruments signed by Guarantor and Collateral Agent. Each waiver or
         consent under any provision hereof shall be effective only in the
         specific instances and for the purpose for which given. No failure or
         delay by any Agent or any Bank in exercising any right hereunder shall
         operate as a waiver thereof or of any other right nor shall any single
         or partial exercise of any such right preclude any other further
         exercise thereof or of any other right. Unless otherwise specified in
         any such waiver or consent, a waiver or consent given hereunder shall
         be effective only in the specific instance and for the specific purpose
         for which given.

                  (c) Successors and Assigns. This Guaranty shall be binding
         upon and inure to the benefit of the Agents, the Banks and Guarantor
         and their respective successors and assigns; provided, however, that
         the Agents, the Banks and Guarantor may sell, assign and delegate their
         respective rights and obligations hereunder only as permitted by the
         Restated Credit Agreement. Collateral Agent may disclose this Guaranty
         as provided in the Restated Credit Agreement.

                  (d) Partial Invalidity. If at any time any provision of this
         Guaranty is or becomes illegal, invalid or unenforceable in any respect
         under the law of any jurisdiction, neither the legality, validity or
         enforceability of the remaining provisions of this Guaranty nor the
         legality, validity or enforceability of such provision under the law of
         any other jurisdiction shall in any way be affected or impaired
         thereby.

                  (e) Cumulative Rights, etc. The rights, powers and remedies of
         the Agents and the Banks under this Guaranty shall be in addition to
         all rights, powers and remedies given to the Agents and the Banks by
         virtue of any applicable Governmental Rule, the Restated Credit
         Agreement, any other Credit Document or any other agreement, all of
         which rights, powers, and remedies shall be cumulative and may be
         exercised successively or concurrently without impairing the Agents' or
         the Bank's rights hereunder.

                  (f) Payments Free of Taxes, Etc. All payments made by
         Guarantor under this Guaranty shall be made by Guarantor free and clear
         of and without deduction for any and all present and future taxes,
         levies, charges, deductions and withholdings. In addition, Guarantor
         shall pay upon demand any stamp or other taxes, levies or charges of
         any jurisdiction with respect to the execution, delivery, registration,
         performance and enforcement of this Guaranty. Upon request by
         Collateral Agent, Guarantor shall furnish evidence satisfactory to
         Collateral Agent that all requisite authorizations and approvals by,
         and notices to and filings with, governmental authorities and
         regulatory bodies have been obtained and made and that all requisite
         taxes, levies and charges have been paid.

<PAGE>

                  (g) Governing Law and Jurisdiction. This Guaranty shall be
         governed by and construed in accordance with the laws of the State of
         California without reference to conflicts of law rules. Any legal
         action or proceeding with respect to this Guaranty may be brought in
         the courts of the State of California or of the United States for the
         Northern District of California, and by execution and delivery of this
         Guaranty, Guarantor consents, for itself and in respect of its
         property, to the non-exclusive jurisdiction of those courts. Guarantor
         irrevocably waives any objection, including any objection to the laying
         of venue or based on the grounds of forum non conveniens, which it may
         now or hereafter have to the bringing of any action or proceeding in
         such jurisdiction in respect of this Guaranty. Guarantor waives
         personal service of any summons, complaint or other process, which may
         be made by any other means permitted by California law.

                  (h) Arbitration.

                           (i) This subparagraph 9(h) concerns the resolution of
                  any controversies or claims between or among Guarantor, any
                  Bank and any Agent, including but not limited to those that
                  arise from:

                                    (A) This Guaranty or any other Guarantor
                           Document;

                                    (B) Any violation of this Guaranty or any
                           other Guarantor Document; or

                                    (C) Any claims for damages resulting from
                           any business conducted between Guarantor and any Bank
                           or any Agent, including claims for injury to persons,
                           property or business interests.

                           (ii) At the request of Guarantor, any Bank or any
                  Agent, any controversies or claims will be settled by
                  arbitration in accordance with the United States Arbitration
                  Act. The United States Arbitration Act will apply even though
                  this Agreement provides that it is governed by California law.

                           (iii) Arbitration proceedings will be administered by
                  the American Arbitration Association and will be subject to
                  its commercial rules of arbitration. The arbitration will be
                  conducted within the California county of San Francisco.

                           (iv) For purposes of the application of the statute
                  of limitation, the filing of an arbitration pursuant to this
                  subparagraph is the equivalent of the filing of a lawsuit, and
                  any claim or controversy which may be arbitrated under this
                  subparagraph is subject to any applicable statute of
                  limitations. The arbitrators will have the authority to decide
                  whether any such claim or controversy is barred by the statute
                  of limitations and if so to dismiss the arbitration on that
                  basis.

                           (v) If there is a dispute as to whether an issue is
                  arbitrable, the arbitrators will have the authority to resolve
                  any such dispute.

                           (vi) The decision that results from an arbitration
                  proceeding may be submitted to any authorized court of law to
                  be confirmed and enforced.

<PAGE>

                           (vii) The procedure described above will not apply if
                  the controversy or claim, at the time of the proposed
                  submission to arbitration arises from or relates to an
                  obligation to Bank secured by real property located in
                  California. If the obligation is secured by real property,
                  Guarantor, each Bank and each Agent must consent to submission
                  of the claim or controversy to arbitration. If all parties do
                  not consent to arbitration, the controversy or claim will be
                  settled as follows:

                                    (A) Guarantor, the Banks and the Agents will
                           designate a referee (or a panel of referees) selected
                           under the auspices of the American Arbitration
                           Association in the same manner as arbitrators are
                           selected in Association-sponsored proceedings;

                                    (B) The designated referee (or the panel of
                           referees) will be appointed by a court as provided in
                           California Code of Civil Procedure Section 638 and
                           the following related sections;

                                    (C) The referee (or the presiding referee of
                           the panel) will be an active attorney or a retired
                           judge; and

                                    (D) The award that results from the decision
                           of the referee (or the panel) will be entered as a
                           judgment in the court that appointed the referee, in
                           accordance with the provisions of California Code of
                           Civil Procedure Sections 644 and 645.

                           (viii) This subparagraph 9(h) does not limit the
                  right of Guarantor, any Bank or any Agent to:

                                    (A) Exercise self-help remedies such as
                           setoff;

                                    (B) Foreclose against or sell any real or
                           personal property collateral; or

                                    (C) Take action in a court of law, before,
                           during or after the arbitration proceeding to obtain
                           an interim remedy or additional or supplementary
                           remedies.

                           (ix) The pursuit of or a decision in an action for
                  interim, additional or supplementary remedies, or the filing
                  of a court action, does not constitute a waiver of the right
                  of Guarantor, any Bank or any Agent, including the suing
                  party, to submit the controversy or claim to arbitration.

                  (i) JURY TRIAL. EACH OF GUARANTOR, THE BANKS AND THE AGENTS,
         TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY IRREVOCABLY
         WAIVES ALL RIGHT TO TRIAL BY JURY AS TO ANY ISSUE RELATING HERETO IN
         ANY ACTION, PROCEEDING, OR COUNTERCLAIM ARISING OUT OF OR RELATING TO
         THIS GUARANTY OR ANY OTHER CREDIT DOCUMENT NOT RESOLVED PURSUANT TO
         SUBPARAGRAPH 9(h) HEREOF.

<PAGE>

         IN WITNESS WHEREOF, Guarantor has caused this Guaranty to be executed
as of the day and year first above written.

                              [RORKE DATA, INC.][RORKE DATA EUROPE HOLDING B.V.]

                               By:
                                     Name:
                                     Title:

                               By:
                                     Name:
                                     Title:

<PAGE>

                                   APPENDIX 6

                         FORM OF RDI SECURITY AGREEMENT

                                RORKE DATA, INC.
                               SECURITY AGREEMENT

         THIS SECURITY AGREEMENT, dated as of May [___], 2000, is executed by
RORKE DATA, INC., a Minnesota corporation ("RDI"), in favor of Collateral Agent
for the financial institutions which are from time to time parties to the
Restated Credit Agreement defined in Recital A below (collectively, the
"Banks").

                                    RECITALS

         A. Bell Microproducts Inc., a California corporation (the "Borrower"),
the Banks, California Bank & Trust (formerly known as Sumitomo Bank of
California) ("Administrative Agent"), and Union Bank of California (the
"Collateral Agent") are parties to a Third Amended and Restated Credit Agreement
dated as of November 12, 1998, as amended by (i) that certain First Amendment to
Third Amended and Restated Credit Agreement dated as of May 13, 1999, (ii) that
certain Second Amendment to Third Amended and Restated Credit Agreement dated as
of July 21, 1999, (iii) that certain Waiver and Third Amendment to Third Amended
and Restated Credit Agreement dated as of October 15, 1999, (iv) that certain
Fourth Amendment to Third Amended and Restated Credit Agreement dated as of
December 8, 1999, (v) that certain Fifth Amendment to Third Amended and Restated
Credit Agreement dated as of December 31, 1999, and (vi) that certain Consent
and Sixth Amendment to Third Amended and Restated Credit Agreement dated as of
May [__], 2000 (as amended, the "Restated Credit Agreement").

         B. The Banks' obligations to continue to make the credit accommodations
available to Borrower as set forth in the Restated Credit Agreement is subject,
among other conditions, to receipt by Collateral Agent of this Security
Agreement, duly executed by RDI. RDI expects to derive substantial direct and
indirect benefit from the transactions contemplated by the Restated Credit
Agreement.

                                    AGREEMENT

         NOW, THEREFORE, in consideration of the above recitals and for other
good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, RDI hereby agrees with Collateral Agent, for the ratable benefit
of the Banks and the Agents, as follows:

         1. Definitions and Interpretation. When used in this Security
Agreement, the following terms shall have the following respective meanings:

         "Account Debtor" shall have the meaning given to that term in
subparagraph 3(g) hereof.

         "Administrative Agent" shall have the meaning given to that term in
Recital A hereof.

         "Banks" shall have the meaning given to that term in the introductory
paragraph hereof.

          "Borrower" shall have the meaning given to that term in Recital A
hereof.

<PAGE>

         "Collateral" shall have the meaning given to that term in paragraph 2
hereof.

         "Depositary Bank" shall have the meaning given to that term in
subparagraph 4(e) hereof.

         "Equipment" shall have the meaning given to that term in Attachment 1
hereto.

         "Excluded Collateral" shall mean Collateral consisting of Equipment,
Inventory or other goods located at an address not specified in item 8 of
Attachment 2 hereto and having a value not to exceed $10,000 in the aggregate
for each such unspecified location or $100,000 in the aggregate for all such
unspecified locations.

         "Intermediary" shall have the meaning given to that term in
Subparagraph 4(f) hereof.

         "Inventory" shall have the meaning given to that term in Attachment 1
hereto.

         "Obligations" shall mean and include all loans, advances, debts,
liabilities and obligations, howsoever arising, owed by Borrower to any Bank or
any Agent of every kind and description (whether or not evidenced by any note or
instrument and whether or not for the payment of money), direct or indirect,
absolute or contingent, due or to become due, now existing or hereafter arising
pursuant to the terms of the Restated Credit Agreement or any of the other
Credit Documents, including without limitation all interest, fees, charges,
expenses, attorneys' fees and accountants' fees chargeable to Borrower or
payable by Borrower thereunder.

         "Receivables" shall have the meaning given to that term in Attachment 1
hereto.

         "Related Contracts" shall have the meaning given to that term in
Attachment 1 hereto.

         "Restated Credit Agreement" shall have the meaning given to that term
in Recital A hereof.

         "RDI" shall have the meaning given to that term in the introductory
paragraph hereof

         "Security Agreement" shall mean this Security Agreement as further
amended, modified, supplemented or replaced from time to time.

         "UCC" shall mean the Uniform Commercial Code as in effect in the State
of California from time to time.

Unless otherwise defined herein, all other capitalized terms used herein and
defined in the Restated Credit Agreement shall have the respective meanings
given to those terms in the Restated Credit Agreement, and all terms defined in
the UCC shall have the respective meanings given to those terms in the UCC. The
rules of construction set forth in Section I of the Restated Credit Agreement
shall, to the extent not inconsistent with the terms of this Security Agreement,
apply to this Security Agreement and are hereby incorporated by reference.

<PAGE>

         2. Grant of Security Interest. As security for the Obligations, RDI
hereby pledges and assigns to Collateral Agent (for the ratable benefit of the
Banks and the Agents) and grants to Collateral Agent (for the ratable benefit of
the Banks and Agents) a security interest in all right, title and interest of
RDI in and to the property described in Attachment 1 hereto, whether now owned
or hereafter acquired (collectively and severally, the "Collateral"), which
Attachment 1 is incorporated herein by this reference.

         3. Representations and Warranties. RDI represents and warrants to the
Banks and the Agents as follows:

         (a) RDI is the legal and beneficial owner of the Collateral (or, in the
case of after-acquired Collateral, at the time RDI acquires rights in the
Collateral, will be the legal and beneficial owner thereof). No other Person has
(or, in the case of after-acquired Collateral, at the time RDI acquires rights
therein, will have) any right, title, claim or interest (by way of Lien,
purchase option or otherwise) in, against or to the Collateral, other than
Permitted Liens.

         (b) Collateral Agent has (or in the case of after-acquired Collateral,
at the time RDI acquires rights therein, will have) a first priority perfected
security interest in the Collateral.

         (c) All Equipment and Inventory (except for Excluded Collateral) are
(i) located at the locations indicated in item 8 of Attachment 2 hereto, (ii) in
transit to such locations or (iii) in transit to a third party purchaser which
will become obligated on a Receivable to RDI upon receipt. Except for Equipment
and Inventory referred to in clauses (ii) and (iii) of the preceding sentence,
RDI has exclusive possession and control of the Inventory and Equipment.

         (d) All Inventory has been (or, in the case of hereafter produced
Inventory, will be) produced in compliance with all applicable Governmental
Rules, including the Fair Labor Standards Act (if applicable).

         (e) RDI keeps all records concerning the Receivables and the originals
of all Related Contracts at its chief executive office located at the address
set forth in item 2 of Attachment 2 hereto.

         (f) RDI has delivered to Collateral Agent, together with all necessary
stock powers, endorsements, assignments and other necessary instruments of
transfer, the original of each Receivable which is an instrument or chattel
paper having a face value in excess of $100,000 and the originals of all
certificated securities owed directly by RDI.

         (g) Each Receivable is genuine and enforceable against the party
obligated to pay the same (an "Account Debtor") free from any right of
rescission, defense, setoff or discount.

         (h) Each insurance policy maintained by RDI is validly existing and is
in full force and effect. RDI is not in default in any material respect under
the provisions of any insurance policy, and there are no facts which, with the
giving of notice or passage of time (or both), would result in such a default
under any provision of any such insurance policy.

<PAGE>

         4. Covenants. RDI hereby agrees as follows:

         (a) RDI, at RDI's expense, shall promptly procure, execute and deliver
to Collateral Agent all documents, instruments and agreements and perform all
acts which are necessary or desirable, or which Collateral Agent may reasonably
request, to establish, maintain, preserve, protect and perfect the Collateral,
the Lien granted to Collateral Agent therein and the first priority of such Lien
or to enable Collateral Agent to exercise and enforce its rights and remedies
hereunder with respect to any Collateral. Without limiting the generality of the
preceding sentence, RDI shall (i) procure, execute and deliver to Collateral
Agent all stock powers, endorsements, assignments, financing statements and
other instruments of transfer requested by Collateral Agent, (ii) deliver to
Collateral Agent promptly upon receipt the original of all Collateral which is
an instrument, document or chattel paper having a face value in excess of
$100,000 and letters of credit and certificated securities and (iii) take such
actions as may be necessary to perfect the Lien of Collateral Agent in any
Collateral consisting of investment property (including taking the actions
required by Subparagraph 4(f) hereof and, in those jurisdictions where
appropriate, causing such Liens to be recorded or registered in the books of any
financial intermediary or clearing corporation requested by Collateral Agent).

         (b) RDI shall not use or permit any Collateral to be used in violation
of (i) any provision of the Restated Credit Agreement, this Security Agreement
or any other Credit Document, (ii) any applicable Governmental Rule where such
use might have a Material Adverse Effect, or (iii) any policy of insurance
covering the Collateral.

         (c) RDI shall pay promptly when due all taxes and other Governmental
Charges, all Liens and all other charges now or hereafter imposed upon, relating
to or affecting any Collateral, except such Governmental Charges, Liens and
other charges as may in good faith be contested or disputed by appropriate
proceedings, provided that in each such case appropriate reserves are maintained
in accordance with GAAP.

         (d) Without ninety (90) days' prior written notice to Collateral Agent,
RDI shall not (i) change RDI's name or place of business (or, if RDI has more
than one place of business, its chief executive office), or the office in which
RDI's records relating to Receivables or the originals of Related Contracts are
kept, (ii) keep Collateral consisting of chattel paper and documents at any
location other than its chief executive office set forth in item 2 of Attachment
2 hereto, or (iii) keep Collateral consisting of Equipment, Inventory or other
goods (except for Excluded Collateral) at any location other than the locations
set forth in item 8 of Attachment 2 hereto.

         (e) For each deposit account maintained by RDI, RDI shall (i) execute
and deliver to the bank or other depository institution at which such deposit
account is maintained (the "Depositary Bank") a Notice of Security Interest in
the form of Attachment 3 hereto (or in any other form acceptable to Collateral
Agent in its sole discretion) and (ii) cause the Depositary Bank to execute and
deliver to Collateral Agent an Acknowledgment and Agreement in the form set
forth in such Notice of Security Interest. Without ten (10) days prior written
notice to Collateral Agent, RDI shall not establish any deposit account not set
forth in item 16 of Attachment 2 hereto.

<PAGE>

         (f) For each securities account and commodity account maintained by
RDI, RDI shall (i) complete, execute and deliver to the bank, broker or other
Person at which such account is maintained (the "Intermediary") a Notice of
Security Interest in the form of Attachment 4 hereto and (ii) cause the
Intermediary to execute and deliver to Collateral Agent an Acknowledgment and
Agreement in the form set forth in such Notice of Security Interest (or in any
other form acceptable to Collateral Agent in its sole discretion). Without
thirty (30) days prior written notice to Collateral Agent, RDI shall not
establish any securities account or commodity account not set forth in item 14
of Attachment 2 hereto.

         (g) RDI shall deposit, or cause to be deposited, all remittances,
checks and other funds (in whatever form) received with respect to Receivables
to a deposit account for which RDI has complied with subparagraph 4(e) above and
in which Collateral Agent has a first priority perfected security interest,
subject only to the banker's lien of the Depositary Bank covering its customary
account maintenance charges and fees.

         (h) RDI shall appear in and defend any action or proceeding which may
affect its title to or Collateral Agent's interest in the Collateral.

         (i) If Collateral Agent gives value to enable RDI to acquire rights in
or the use of any Collateral, RDI shall use such value for such purpose.

         (j) RDI shall keep separate, accurate and complete records of the
Collateral and shall provide Collateral Agent with such records and such other
reports and information relating to the Collateral as Collateral Agent may
reasonably request from time to time.

         (k) RDI shall not surrender or lose possession of (other than to
Collateral Agent), sell, encumber, lease, rent, option, or otherwise dispose of
or transfer any Collateral or right or interest therein except as permitted in
the Restated Credit Agreement, and notwithstanding any provision of the Restated
Credit Agreement, RDI shall keep the Collateral free of all Liens except
Permitted Liens.

         (l) RDI shall type, print or stamp conspicuously on the face of all
original copies of all Collateral consisting of chattel paper and documents not
in the possession of Collateral Agent a legend satisfactory to Collateral Agent
indicating that such chattel paper is subject to the security interest granted
hereby.

         (m) RDI shall collect, enforce and receive delivery of the Receivables
in accordance with past practice unless otherwise notified by Collateral Agent
after the occurrence and during the continuance of an Event of Default.

         (n) RDI shall comply with all material Requirements of Law applicable
to RDI which relate to the production, possession, operation, maintenance and
control of the Collateral (including, without limitation, the Fair Labor
Standards Act).

         (o) RDI shall (i) maintain and keep in force insurance of the types and
in amounts customarily carried from time to time during the term of this
Security Agreement in its lines of business, including fire, public liability,
property damage and worker's compensation, such insurance to be carried with
companies and in amounts satisfactory to Collateral Agent, (ii) deliver to
Collateral Agent from time to time, as Collateral Agent may request, schedules
setting forth all insurance then in effect, and (iii) deliver to Collateral
Agent copies of each policy of insurance which replaces, or evidences the

<PAGE>

renewal of, each existing policy of insurance at least fifteen (15) days prior
to the expiration of such policy. Collateral Agent shall be named as additional
insured or additional loss payee, as appropriate, on all liability and property
insurance of RDI and such policies shall contain such additional endorsements as
shall be required by Collateral Agent, including the endorsements specified in
Attachment 5 hereto. Prior to the occurrence and the continuance of an Event of
Default, all proceeds of any property insurance paid as a result of any event or
occurrence shall be paid to RDI. All proceeds of any property insurance paid
after the occurrence and during the continuance of an Event of Default shall be
paid to Collateral Agent to be held as Collateral and applied as provided in the
Restated Credit Agreement or, at the election of the Required Banks, returned to
RDI.

         5. Authorized Action by Collateral Agent. RDI hereby irrevocably
appoints Collateral Agent as its attorney-in-fact and agrees that Collateral
Agent may perform (but Collateral Agent shall not be obligated to and shall
incur no liability to RDI or any third party for failure so to do) any act which
RDI is obligated by this Security Agreement to perform, and to exercise such
rights and powers as RDI might exercise with respect to the Collateral,
including, without limitation, the right to (a) collect by legal proceedings or
otherwise and endorse, receive and receipt for all dividends, interest,
payments, proceeds and other sums and property now or hereafter payable on or on
account of the Collateral; (b) enter into any extension, reorganization,
deposit, merger, consolidation or other agreement pertaining to, or deposit,
surrender, accept, hold or apply other property in exchange for the Collateral;
(c) insure, process, preserve and enforce the Collateral; (d) make any
compromise or settlement, and take any action it deems advisable, with respect
to the Collateral; (e) pay any Indebtedness of RDI relating to the Collateral;
and (f) execute UCC financing statements and other documents, instruments and
agreements required hereunder; provided, however, that Collateral Agent may
exercise such powers only after the occurrence and during the continuance of an
Event of Default. RDI agrees to reimburse Collateral Agent upon demand for all
reasonable costs and expenses, including attorneys' fees, Collateral Agent may
incur while acting as RDI's attorney-in-fact hereunder, all of which costs and
expenses are included in the Obligations. RDI agrees that such care as
Collateral Agent gives to the safekeeping of its own property of like kind shall
constitute reasonable care of the Collateral when in Collateral Agent's
possession; provided, however, that Collateral Agent shall not be required to
make any presentment, demand or protest, or give any notice and need not take
any action to preserve any rights against any prior party or any other Person in
connection with the Obligations or with respect to the Collateral.

         6. Default and Remedies. RDI shall be deemed in default under this
Security Agreement upon the occurrence and during the continuance of an Event of
Default, as that term is defined in the Restated Credit Agreement. In addition
to all other rights and remedies granted to Collateral Agent by this Security
Agreement, the Restated Credit Agreement, the other Credit Documents, the UCC
and other applicable Governmental Rules, Collateral Agent may, upon the
occurrence and during the continuance of any Event of Default, exercise any one
or more of the following rights and remedies: (a) collect, receive, appropriate
or realize upon the Collateral or otherwise foreclose or enforce Collateral
Agent's security interests in any or all Collateral in any manner permitted by
applicable Governmental Rules or in this Security Agreement; (b) notify any or
all Account Debtors to make payments on Receivables directly to Collateral
Agent; (c) direct any Depositary Bank or Intermediary to liquidate the
account(s) maintained by it, pay all amounts payable in connection therewith to
Collateral Agent and/or deliver any proceeds thereof to Collateral Agent; (d)
sell or otherwise dispose of any or all Collateral at one or more public or
private sales, whether or not such Collateral is present at the place of sale,
for cash or credit or future delivery, on such terms and in such manner as
Collateral Agent may determine; (e) require RDI to assemble the Collateral and
make it available to Collateral Agent at a place to be designated by Collateral
Agent; (f) enter onto any property where any Collateral is located and take

<PAGE>

possession thereof with or without judicial process; and (g) prior to the
disposition of the Collateral, store, process, repair or recondition any
Collateral consisting of goods, perform any obligations and enforce any rights
of RDI under any Related Contracts or otherwise prepare and preserve Collateral
for disposition in any manner and to the extent Collateral Agent deems
appropriate. In furtherance of Collateral Agent's rights hereunder, RDI hereby
grants to Collateral Agent an irrevocable, non-exclusive license (exercisable
without royalty or other payment by Collateral Agent) to use, license or
sublicense any patent, trademark, tradename, copyright or other intellectual
property in which RDI now or hereafter has any right, title or interest,
together with the right of access to all media in which any of the foregoing may
be recorded or stored. In any case where notice of any sale or disposition of
any Collateral is required, RDI hereby agrees that seven (7) days notice of such
sale or disposition is reasonable.

         7.       Miscellaneous.

                  (a) Notices. Except as otherwise provided herein, all notices,
         requests, demands, consents, instructions or other communications to or
         upon Collateral Agent or RDI under this Security Agreement shall be by
         facsimile or in writing and faxed, mailed, telexed or delivered to each
         party at its facsimile number or its address set forth below. All such
         notices and communications: when sent by Federal Express or other
         overnight service, shall be effective on the Business Day following the
         deposit with such service; when mailed, first class postage prepaid and
         addressed as aforesaid in the mails, shall be effective upon receipt;
         when telexed, shall be effective upon receipt of answerback; when
         delivered by hand, shall be effective upon delivery; and when faxed,
         shall be effective upon confirmation of receipt.

         Collateral Agent:          Union Bank of California, N.A.
                                    Northern California Commercial Banking Group
                                    350 California Street, 10th Floor
                                    San Francisco, CA  94104
                                    Attention:  Bill Hinch
                                                Vice President
                                    Telephone: (415) 705-7028
                                    Facsimile: (415) 705-7111

<PAGE>

         RDI:                       Rorke Data, Inc.
                                    c/o Bell Microproducts, Inc.
                                    1941 Ringwood Avenue
                                    San Jose, CA  95131
                                    Attn:    Mr. Don W. Bell
                                             President
                                    Telephone:  (408) 451-1635
                                    Facsimile:  (408) 451-1694

         (b) Waivers; Amendments. Any term, covenant, agreement or condition of
this Security Agreement may be amended or waived only as provided in the
Restated Credit Agreement. No failure or delay by any Agent or any Bank in
exercising any right hereunder shall operate as a waiver thereof or of any other
right nor shall any single or partial exercise of any such right preclude any
other further exercise thereof or of any other right. Unless otherwise specified
in any such waiver or consent, a waiver or consent given hereunder shall be
effective only in the specific instance and for the specific purpose for which
given.

         (c) Successors and Assigns. This Security Agreement shall be binding
upon and inure to the benefit of the Agents, the Banks and RDI and their
respective successors and assigns; provided, however, that the Agents, the Banks
and RDI may sell, assign and delegate their respective rights and obligations
hereunder only as permitted by the Restated Credit Agreement. Collateral Agent
may disclose this Security Agreement as provided in the Restated Credit
Agreement.

         (d) Partial Invalidity. If at any time any provision of this Security
Agreement is or becomes illegal, invalid or unenforceable in any respect under
the law or any jurisdiction, neither the legality, validity or enforceability of
the remaining provisions of this Security Agreement nor the legality, validity
or enforceability of such provision under the law of any other jurisdiction
shall in any way be affected or impaired thereby.

         (e) Cumulative Rights, Etc. The rights, powers and remedies of the
Agents and the Banks under this Security Agreement shall be in addition to all
rights, powers and remedies given to the Agents and the Banks by virtue of any
applicable Governmental Rule, the Restated Credit Agreement, any other Credit
Document or any other agreement, all of which rights, powers, and remedies shall
be cumulative and may be exercised successively or concurrently without
impairing Collateral Agent's rights hereunder. RDI waives any right of
marshalling or to require any Agent or any Bank to proceed against any Person or
to exhaust any Collateral or to pursue any remedy in such Agent's or such Bank's
power.

         (f) Payments Free of Taxes, Etc. All payments made by RDI under this
Security Agreement shall be made by RDI free and clear of and without deduction
for any and all present and future taxes, levies, charges, deductions and
withholdings. In addition, RDI shall pay upon demand any stamp or other taxes,
levies or charges of any jurisdiction with respect to the execution, delivery,
registration, performance and enforcement of this Security Agreement. Upon
request by Collateral Agent, RDI shall furnish evidence satisfactory to

<PAGE>

Collateral Agent that all requisite authorizations and approvals by, and notices
to and filings with, governmental authorities and regulatory bodies have been
obtained and made and that all requisite taxes, levies and charges have been
paid.

         (g) RDI's Continuing Liability. Notwithstanding any provision of this
Security Agreement or any other Credit Document or any exercise by any Agent of
any of its rights hereunder or thereunder (including, without limitation, any
right to collect or enforce any Collateral), (i) RDI shall remain liable to
perform its obligations and duties in connection with the Collateral (including,
without limitation, the Related Contracts and all other agreements relating to
the Collateral) and (ii) neither any Agent nor any Bank shall assume any
liability to perform such obligations and duties or to enforce any of RDI's
rights in connection with the Collateral (including, without limitation, the
Related Contracts and all other agreements relating to the Collateral).

         (h) Governing Law and Jurisdiction. This Security Agreement shall be
governed by and construed in accordance with the laws of the State of California
without reference to conflicts of law rules. Any legal action or proceeding with
respect to this Security Agreement may be brought in the courts of the State of
California or of the United States for the Northern District of California, and
by execution and delivery of this Security Agreement, RDI consents, for itself
and in respect of its property, to the non-exclusive jurisdiction of those
courts. RDI irrevocably waives any objection, including any objection to the
laying of venue or based on the grounds of forum non conveniens, which it may
now or hereafter have to the bringing of any action or proceeding in such
jurisdiction in respect of this Security Agreement. RDI waives personal service
of any summons, complaint or other process, which may be made by any other means
permitted by California law.

         (i) Arbitration.

                  (i) This subparagraph 9(i) concerns the resolution of any
         controversies or claims between or among RDI, any Bank and any Agent,
         including but not limited to those that arise from:

                           (A) This Security Agreement or any other Credit
                  Document to which RDI is a party;

                           (B) Any violation of this Security Agreement or any
                  other Credit Document to which RDI is a party; or

                           (C) Any claims for damages resulting from any
                  business conducted between RDI and any Bank or any Agent,
                  including claims for injury to persons, property or business
                  interests.

                  (ii) At the request of RDI, any Bank or any Agent, any
         controversies or claims will be settled by arbitration in accordance
         with the United States Arbitration Act. The United States Arbitration
         Act will apply even though this Agreement provides that it is governed
         by California law.

<PAGE>

                  (iii) Arbitration proceedings will be administered by the
         American Arbitration Association and will be subject to its commercial
         rules of arbitration. The arbitration will be conducted within the
         California county of San Francisco.

                  (iv) For purposes of the application of the statute of
         limitation, the filing of an arbitration pursuant to this subparagraph
         is the equivalent of the filing of a lawsuit, and any claim or
         controversy which may be arbitrated under this subparagraph is subject
         to any applicable statute of limitations. The arbitrators will have the
         authority to decide whether any such claim or controversy is barred by
         the statute of limitations and if so to dismiss the arbitration on that
         basis.

                  (v) If there is a dispute as to whether an issue is
         arbitrable, the arbitrators will have the authority to resolve any such
         dispute.

                  (vi) The decision that results from an arbitration proceeding
         may be submitted to any authorized court of law to be confirmed and
         enforced.

                  (vii) The procedure described above will not apply if the
         controversy or claim, at the time of the proposed submission to
         arbitration arises from or relates to an obligation to Bank secured by
         real property located in California. If the obligation is secured by
         real property, RDI, each Bank and Collateral Agent must consent to
         submission of the claim or controversy to arbitration. If all parties
         do not consent to arbitration, the controversy or claim will be settled
         as follows:

                           (A) RDI, the Banks and the Agents will designate a
                  referee (or a panel of referees) selected under the auspices
                  of the American Arbitration Association in the same manner as
                  arbitrators are selected in Association-sponsored proceedings;

                           (B) The designated referee (or the panel of referees)
                  will be appointed by a court as provided in California Code of
                  Civil Procedure Section 638 and the following related
                  sections;

                           (C) The referee (or the presiding referee of the
                  panel) will be an active attorney or a retired judge; and

                           (D) The award that results from the decision of the
                  referee (or the panel) will be entered as a judgment in the
                  court that appointed the referee, in accordance with the
                  provisions of California Code of Civil Procedure Sections 644
                  and 645.

                  (viii) This subparagraph 9(i) does not limit the right of RDI,
         any Bank or the Agents to:

                           (A) Exercise self-help remedies such as setoff;

                           (B) Foreclose against or sell any real or personal
                  property collateral; or

<PAGE>

                           (C) Take action in a court of law, before, during or
                  after the arbitration proceeding to obtain an interim remedy
                  or additional or supplementary remedies.

                  (ix) The pursuit of or a decision in an action for interim,
         additional or supplementary remedies, or the filing of a court action,
         does not constitute a waiver of the right of RDI, any Bank or any
         Agent, including the suing party, to submit the controversy or claim to
         arbitration.

         (j) JURY TRIAL. EACH OF RDI, THE BANKS AND ADMINISTRATIVE AGENT, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY IRREVOCABLY WAIVES ALL RIGHT
TO TRIAL BY JURY AS TO ANY ISSUE RELATING HERETO IN ANY ACTION, PROCEEDING, OR
COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS SECURITY AGREEMENT NOT RESOLVED
PURSUANT TO SUBPARAGRAPH 9(i) HEREOF.

<PAGE>

         IN WITNESS WHEREOF, RDI has caused this Security Agreement to be
executed as of the day and year first above written.

                                RORKE DATA, INC.

                                 By:
                                     Name:
                                     Title:

                                 By:
                                     Name:
                                     Title:

                                 UNION BANK OF CALIFORNIA, N.A.
                                 as Collateral Agent

                                 By:
                                     Name:
                                     Title:

<PAGE>

                                  ATTACHMENT 1
                              TO SECURITY AGREEMENT

         All right, title and interest of RDI, whether now owned or hereafter
acquired, in and to the following:

         (a) All equipment and fixtures (including, without limitation,
manufacturing equipment, furniture, vehicles and other machinery and office
equipment), together with all additions and accessions thereto and replacements
therefor (collectively, the "Equipment");

         (b) All inventory (including, without limitation, (i) all computers,
semiconductor devices, integrated circuits, disc drives, computer peripheral
equipment, monitors, other computer-related equipment, other electronic
equipment, and all other raw materials, work in process and finished goods and
(ii) all such goods which are returned to or repossessed by RDI), together with
all additions and accessions thereto, replacements therefor, products thereof
and documents therefor (collectively, the "Inventory");

         (c) All accounts, chattel paper, instruments, deposit accounts and
other rights to the payment of money (including, without limitation, general
intangibles and contract rights) (collectively, the "Receivables") and all
contracts, security agreements, leases, guaranties and other agreements
evidencing, securing or otherwise relating to the Receivables (collectively, the
"Related Contracts");

         (d) All certificated and uncertificated securities, security
entitlements, securities accounts, commodity contracts, commodity accounts and
other investment property;

         (e) All other general intangibles and contract rights not otherwise
described above (including, without limitation, (i) customer and supplier lists
and contracts, books and records, insurance policies, tax refunds, contracts for
the purchase of real or personal property; (ii) all patents, copyrights,
trademarks, tradenames and service marks, (iii) all licenses to use,
applications for, and other rights to, such patents, copyrights, trademarks,
tradenames and service marks, and (iv) all goodwill of RDI);

         (f) All other property not otherwise described above (including,
without limitation, all money, letters of credit, documents and goods); and

         (g) All proceeds of the foregoing (including, without limitation,
whatever is receivable or received when Collateral or proceeds is sold,
collected, exchanged, returned, substituted or otherwise disposed of, whether
such disposition is voluntary or involuntary, including rights to payment and
return premiums and insurance proceeds under insurance with respect to any
Collateral, and all rights to payment with respect to any cause of action
affecting or relating to the Collateral).

<PAGE>

                                  ATTACHMENT 2
                              TO SECURITY AGREEMENT

                                   RDI PROFILE

                                RORKE DATA, INC.

                                     ("RDI")

         1. The current legal name of RDI is Rorke Data, Inc., a Minnesota
corporation.

         2. RDI's chief executive office is located at [______________________].

         3. RDI was organized on [___________________]. Since its organization,
RDI has had no other legal name (other than its current legal name) except for
the following (provide name and date of change):

                     Prior Name                     Date Name
                                                     Changed
               -----------------------         -------------------

         4. RDI does not do business under any trade name except for the
following (provide name and indicate whether registered):

                     Trade Name                    Registered?
               -----------------------         -------------------

                  5. Since RDI's organization, no other corporation has been
merged into RDI except for the following (provide names, dates and brief
description of transactions):

          Name of                   Date of                 Description of
        Corporation                  Merger                  Transaction
    -----------------------    -------------------     ----------------------

<PAGE>

         6. RDI has not acquired any of its assets in a bulk sale or any other
transaction not in the ordinary course of business of the seller except for the
following (provide description of assets, date and description of transaction
and name of seller):

   Description of           Date of          Description of       Seller
       Assets             Acquisition         Transaction
   --------------         -----------        --------------       ------

         7. The following is a complete list of all other jurisdictions in which
RDI is qualified to do business:

                  Jurisdiction

         8. The following is a complete list of all offices and other places of
business at which RDI currently conducts or has within the last four months
conducted business (provide address, owner of site and brief description of
assets located there):

              Address                                          Brief Description
                                           Owner of Site           of Assets
          -------------------         -------------------      -----------------

         9. The following is a complete list of all persons and entities (other
than RDI) who at any time have possession of any assets of RDI (provide name,
address where located and description of assets located there):

                Person or             Address       Brief Description of Assets
                  Entity
             ---------------        ------------   -----------------------------

                None

         Of the persons and entities listed above in this item 9;

         a. The following persons and entities are warehouses which issue
warehouse receipts:

                                       Person or
                                         Entity
                              -----------------------------

                                          None

<PAGE>

         b. The following persons and entities process or finish inventory or
other goods for RDI:

                                       Person or
                                         Entity
                              -----------------------------

         c. The following persons and entities hold inventory or other goods on
consignment for RDI:

                                       Person or
                                         Entity
                              -----------------------------

         d. The following other persons and entities have possession of assets
of RDI for the purposes indicated:

                      Person or                       Purpose
                       Entity
                    ---------------                --------------

         10. The following is a complete list of all motor vehicles owned by RDI
(describe each vehicle by make, model and year and indicate for each the state
in which registered and the state in which based):

                                 State of                  State in which
         Vehicle               Registration                    Based
         ---------------    --------------------       ------------------------

<PAGE>

         11. The following is a complete list of all aircraft and boats and all
other inventory, equipment and other goods of RDI which are subject to any
certificate of title or other registration statute of the United States, any
state or any other jurisdiction (provide description of covered goods and
indicate registration system and jurisdiction):

                                    Registration
              Goods                    System                  Jurisdiction
          ------------          -------------------          -----------------

         12. The following is a complete list of all patents, copyrights,
trademarks, tradenames and service marks registered in the name of RDI:

           a.          Patents                        Registration No.
                       ---------------------------    --------------------

           b.          Copyrights                     Registration No.
                       ---------------------------    --------------------

           c.          Trademarks,
                       Trade Names and
                       Service Marks                  Registration No.
                       ---------------------------    --------------------

         13. The following is a complete list of all subsidiaries of RDI
(provide name of subsidiary, jurisdiction of incorporation, outstanding shares
and shares owned by RDI):

            Subsidiary         Jurisdiction          Shares        Shares Owned
                                                  Outstanding         by RDI
           ------------       --------------     -------------    --------------

         14. The following is a complete list of all securities accounts
maintained by RDI (provide name and address of securities intermediary at which
maintained, type of account and account number):

             Securities        Intermediary      Type of    Account Number
            Intermediary         Address         Account
            ------------       ------------      -------    --------------
            ------------       ------------      -------    --------------
            ------------       ------------      -------    --------------
            ------------       ------------      -------    --------------

         15. The following is a complete list of all other stock (other than the
stock of subsidiaries described in item 13 above or held indirectly through
securities accounts described in item 14 above), bonds, debentures, notes and
other securities owned by RDI which have a value (higher of cost or market
value) of $100 or more (provide name of issuer, a description of security and
value):

<PAGE>

                                 Description of
               Issuer               Security                       Value
           ---------------     ------------------            --------------
           ---------------     ------------------            --------------

         16. The following is a complete list of all notes payable to RDI not
otherwise listed in item 14 above (provide name of obligor, date, original
principal amount and current principal balance):

        Obligor            Date             Original               Current
                                             Amount                Balance
       ---------      ---------------     ------------          -------------

         17. The following is a complete list of all bank accounts maintained by
RDI (provide name and address of depository bank, type of account and account
number):

           Depository            Bank              Type of           Account
              Bank              Address            Account            Number
          ------------       -------------       ------------      ----------

         18. Does RDI regularly receive letters of credit from customers to
secure payments of sums owed to RDI?

                  Yes  ____.        No   ____.

                  19. Does RDI regularly have accounts receivable due from, or
contracts with, the United States government or any agency or department
thereof?

                  Yes  ____.        No   ____.

         If yes, indicate the percentage of RDI's total outstanding accounts
receivable that are due from the United States government and agencies and
departments thereof: ________%

         20. Does RDI regularly receive advance deposits from customers for
goods not yet delivered to such customers?

                  Yes  ____.        No   ____.

         21. Does RDI regularly import goods from outside the United States? No

<PAGE>

         22. The following is a complete list of all third parties who perform
data processing services for RDI or maintain records with respect to RDI's
accounts receivable (provide name and address of third party and describe
services performed and/or records maintained):

               Name                 Address             Description of Services
                                                            and/or Records
         -------------------  --------------------     -------------------------

         23. The following is a complete list of all data processing equipment
of RDI which is leased (provide description of equipment and name and address of
lessor):

                                                                   Lessor
     Description of Equipment              Lessor                  Address
-----------------------------------  -----------------  ------------------------

         24. The following is a complete list of all data processing equipment
of RDI which is subject to security interests of persons other than Bank
(provide description of equipment and name and address of secured party):

             Description of Equipment     Secured Party         Secured Party
                                                                     Address
           ---------------------------  -----------------  ---------------------

         25. The most recent federal income tax returns of RDI that have been
audited by the IRS are:

         26. Neither RDI nor any of its property is subject to any tax
assessments which are currently outstanding and unpaid except for the following
(provide name of assessing authority and amount and description of assessment):

               Assessing Authority          Amount            Description
         ------------------------------  ---------------  ----------------------

         27. Neither RDI nor any of its property is subject to any judgment
lien, attachment, assessment (other than any tax assessments set forth in item
25 above) or any other similar process which is currently outstanding and unpaid
except for the following (provide name of party asserting lien, etc., amount and
description of lien, etc.):

         Asserting Authority                Amount            Description
         -----------------------     -----------------  ------------------------

         28. The following is a complete list of all pending and threatened
litigation or claims involving amounts claimed against RDI in excess of
$1,000,000 (provide name of claimant, amount of claim and brief description of
claim):

             Claimant                       Amount            Description
         -----------------------    ------------------   ----------------------

<PAGE>

                                  ATTACHMENT 3
                              TO SECURITY AGREEMENT

                           NOTICE OF SECURITY INTEREST
                                       IN
                                 DEPOSIT ACCOUNT

                            ___________ __, [19][20]_

[Name of Depositary Bank]
[Address of Depositary Bank]
---------------------------
---------------------------

         RORKE DATA, INC., a Minnesota corporation ("RDI") and UNION BANK OF
CALIFORNIA, N.A., a national banking association, acting as collateral agent for
certain financial institutions (in such capacity, "Collateral Agent"), under
that certain Security Agreement dated as of May [___], 2000 (the "Security
Agreement"), hereby notify you that RDI has granted to Collateral Agent a
security interest in all deposit accounts maintained by RDI with you including,
without limitation, the deposit accounts described below, and that this security
interest supercedes any previous security interest granted to Administrative
Agent in any deposit accounts maintained by the Borrower with you:

                Account                      Depositor's             Account
                 Number                         Name                   Type
        -------------------------     ----------------------    ----------------

        -------------------------     ----------------------    ----------------

        -------------------------     ----------------------    ----------------

        -------------------------     ----------------------    ----------------

RDI and Collateral Agent authorize you to continue to allow RDI to make deposits
to, draw checks upon and otherwise withdraw funds from such deposit accounts
(the "Deposit Accounts") without the consent of Collateral Agent until
Collateral Agent shall instruct you otherwise.

<PAGE>

         RDI has irrevocably authorized Collateral Agent to inform you when an
Event of Default (as defined in the Restated Credit Agreement) has occurred and
is continuing and at such time instruct you to cease to permit any further
payments or withdrawals from the Deposit Accounts by RDI and/or to pay any or
all amounts in the Deposit Accounts to Collateral Agent. RDI irrevocably
authorizes and directs you to comply with all such instructions received by you
from Collateral Agent without further inquiry on your part and hereby agrees to
indemnify and hold harmless you and your officers, directors and employees from
and for any compliance by you with such instructions.

                                RORKE DATA, INC.

                                By:
                                   Name:
                                   Title:

                                UNION BANK OF CALIFORNIA BANK, N.A.
                                as Collateral Agent

                                By:
                                   Name:
                                   Title:

<PAGE>

                          ACKNOWLEDGEMENT AND AGREEMENT
                               OF DEPOSITARY BANK

         The undersigned depositary bank hereby acknowledges receipt of the
above notice and agrees with RDI and Collateral Agent to comply with any
instruction it may receive from Collateral Agent in accordance therewith. The
undersigned confirms to Collateral Agent that the information set forth above
regarding the Deposit Accounts is accurate, that such Deposit Accounts are
currently open and that the undersigned has no prior notice of any other
security interest, lien or interest in such Deposit Accounts. The undersigned
waives any right of setoff except for its right or recoupment for returned
items.

                                     -------------------------------------

                                     By:
                                        Name:
                                        Title:

<PAGE>

                                  ATTACHMENT 4
                              TO SECURITY AGREEMENT

                           NOTICE OF SECURITY INTEREST
                                       IN
                         [SECURITIES][COMMODITY] ACCOUNT

                            __________ __, [19][20]__

[Name of Intermediary]
[Address of Intermediary]

---------------------------
---------------------------

         RORKE DATA, INC., a Minnesota corporation ("RDI") and UNION BANK OF
CALIFORNIA, N.A., a national banking association, acting as collateral agent for
certain financial institutions (in such capacity, "Collateral Agent"), under
that certain Security Agreement dated as of May [___], 2000 (the "Security
Agreement"), hereby notify you that RDI has granted to Collateral Agent a
security interest in all [securities][commodity] accounts maintained by RDI with
you including, without limitation, the accounts described below:

                Account                Account Holder's                Account
                Number                       Name                       Type
           ----------------            ----------------           --------------

Until Collateral Agent shall instruct you otherwise pursuant to the following
paragraph, RDI and Collateral Agent authorize you, without the consent of
Collateral Agent, to continue to comply with all directions of RDI regarding the
purchase, sale, transfer or redemption of all securities, security entitlements,
other investment property and other financial assets for and in such accounts
(the "Accounts").

         RDI has authorized Collateral Agent to inform you when an Event of
Default (as defined in the Restated Credit Agreement) has occurred and is
continuing and at such time direct you to cease to comply with any further
directions of RDI with respect to the Accounts. After your receipt of any such
notice, RDI authorizes and directs you, without the consent of RDI or further
inquiry on your part, to comply with all directions of Collateral Agent
regarding the Accounts, including, without limitation, any direction to (a)
purchase, sell, transfer or redeem any or of all securities, security
entitlements, other investment property or other financial assets for and in the
Accounts, (b) withdraw any or all funds from the Accounts and pay such funds to

<PAGE>

Collateral Agent or any person designated by Collateral Agent or (c) transfer
any or all of the Accounts to the name of Collateral Agent or any person
designated by Collateral Agent. RDI hereby agrees to indemnify and hold harmless
you and your officers, directors and employees from and for any compliance by
you with such directions of Collateral Agent.

                              RORKE DATA, INC.

                              By:
                                  Name:
                                  Title:

                              UNION BANK OF CALIFORNIA, N.A. as Collateral Agent

                              By:
                                   Name:
                                   Title:

<PAGE>

                          ACKNOWLEDGEMENT AND AGREEMENT
                                 OF INTERMEDIARY

         The undersigned institution hereby acknowledges receipt of the above
notice and agrees with RDI and Collateral Agent to comply with any direction it
may receive from Collateral Agent in accordance therewith without the consent of
RDI or further inquiry. The undersigned confirms to Collateral Agent that the
information set forth above regarding the Accounts is accurate, that such
Accounts are currently open and that the undersigned has no prior notice of any
other security interest, lien or interest in such Accounts. The undersigned
agrees that any lien or right of setoff it may have in or against the accounts
is subordinate to the security interest of Collateral Agent therein.

                                       ----------------------------------

                                       By:
                                          Name:
                                          Title:

<PAGE>

                                  ATTACHMENT 5
                              TO SECURITY AGREEMENT

                             INSURANCE ENDORSEMENTS

         1. Property Insurance. Each of the property insurance policies of RDI
shall contain substantially the following endorsements:

                  (a) UNION BANK OF CALIFORNIA, N.A. as collateral agent
         ("Collateral Agent"), shall be named as additional loss payee.

                  (b) In respect of the interests of Collateral Agent in the
         policies, the insurance shall not be invalidated by any action or by
         inaction of RDI or by any Person having temporary possession of the
         property covered thereby (the "Property") while under contract with RDI
         to perform maintenance, repair, alteration or similar work on the
         Property, and shall insure the interests of Collateral Agent regardless
         of any breach or violation of any warranty, declaration or condition
         contained in the insurance policy by RDI or Collateral Agent or any
         other additional insured (other than by such additional insured, as to
         such additional insured) or by any Person having temporary possession
         of the Property while under contract with RDI to perform maintenance,
         repair, alteration or similar work on the Property.

                  (c) If the insurance policy is cancelled for any reason
         whatsoever, or substantial change is made in the coverage that affects
         the interests of Collateral Agent, or if the insurance coverage is
         allowed to lapse for non-payment of premium, such cancellation, change
         or lapse shall not be effective as to Collateral Agent for 30 days (or
         10 days in the case of non-payment of premium) after receipt by
         Collateral Agent of written notice from the insurers of such
         cancellation, change or lapse.

                  (d) Neither Collateral Agent nor any Bank shall have any
         obligation or liability for premiums, commissions, assessments, or
         calls in connection with the insurance.

                  (e) The insurer shall waive any rights of set-off or
         counterclaim or any other deduction, whether by attachment or
         otherwise, that it may have against Collateral Agent and each Bank.

                  (f) The insurance shall be primary without right of
         contribution from any other insurance that may be carried by Collateral
         Agent or any of the Banks with respect to its or their interest in the
         Property.

                  (g) The insurer shall waive any right of subrogation against
         Collateral Agent and each Bank.

                  (h) All provisions of the insurance, except the limits of
         liability, shall operate in the same manner as if there were a separate
         policy covering each insured party.

<PAGE>

         2. Liability Insurance. Each of the liability insurance policies of RDI
shall contain substantially the following endorsements:

                  (a) Collateral Agent shall be named as additional insured.

                  (b) In respect of the interests of Collateral Agent in the
         policies, the insurance shall not be invalidated by any action or by
         inaction of RDI or by any Person having temporary possession of the
         property covered thereby (the "Property") while under contract with RDI
         to perform maintenance, repair, alteration or similar work on the
         Property, and shall insure the interests of Collateral Agent regardless
         of any breach or violation of any warranty, declaration or condition
         contained in the insurance policy by RDI or Collateral Agent or any
         other additional insured (other than by such additional insured, as to
         such additional insured) or by any Person having temporary possession
         of the Property while under contract with RDI to perform maintenance,
         repair, alteration or similar work on the Property.

                  (c) If the insurance policy is cancelled for any reason
         whatsoever, or substantial change is made in the coverage that affects
         the interests of Collateral Agent, or if the insurance coverage is
         allowed to lapse for non-payment of premium, such cancellation, change
         or lapse shall not be effective as to Collateral Agent for 30 days (or
         10 days in the case of non-payment of premium) after receipt by
         Collateral Agent of written notice from the insurer of such
         cancellation, change or lapse.

                  (d) Neither Collateral Agent nor any Bank shall have any
         obligation or liability for premiums, commissions, assessments, or
         calls in connection with the insurance.

                  (e) The insurer shall waive any rights of set-off or
         counterclaim or any other deduction, whether by attachment or
         otherwise, that it may have against Collateral Agent and each Bank.

                  (f) The insurance shall be primary without right of
         contribution from any other insurance that may be carried by any Agent
         or any of the Banks with respect to their interests in the Property.

                  (g) The insurer shall waive any right of subrogation against
         Collateral Agent and each Bank.

                  (f)      All provisions of the insurance, except the limits of
                           liability, shall operate in the same manner as if
                           there were a separate policy covering each insured
                           party.

<PAGE>

                                   APPENDIX 7

CORPORATE DOCUMENTS.

                  (1) The Certificate of Incorporation of RDI, certified as of a
         recent date prior to the Sixth Amendment Effective Date by the
         Secretary of State of Minnesota;

                  (2) A Certificate of Good Standing for RDI, certified as of a
         recent date prior to the Sixth Amendment Effective Date by the
         Secretary of State of Minnesota;

                  (3) A certificate of the Secretary of RDI, dated the Sixth
         Amendment Effective Date, certifying (a) that the Certificate of
         Incorporation of RDI, in the form certified by the Secretary of State
         of Minnesota and delivered to Administrative pursuant to item (1)
         hereof, is in full force and effect and has not been amended,
         supplemented, revoked or repealed since the date of such certification;
         (b) that attached thereto is a true and correct copy of the Articles of
         Incorporation of RDI as in effect on the Sixth Amendment Effective
         Date; (c) that attached thereto are true and correct copies of
         resolutions duly adopted by the Board of Directors of RDI and
         continuing in effect, which authorize the execution, delivery and
         performance by RDI of the Credit Documents executed or to be executed
         by RDI and the consummation of the transactions contemplated hereby and
         thereby; and (d) that there are no proceedings for the dissolution or
         liquidation of RDI (commenced or threatened); and

                  (4) A certificate of the Secretary of RDI, dated the Sixth
         Amendment Effective Date, certifying the incumbency, signatures and
         authority of the officers of RDI authorized to execute, deliver and
         perform the applicable Credit Documents on behalf of RDI.

SECURITY DOCUMENTS.

                  (1) All Uniform Commercial Code financing statements and other
         documents, instruments and agreements reasonably requested by
         Collateral Agent to perfect the security interests, liens and
         assignments granted to Collateral Agent by RDI in connection herewith,
         appropriately completed and duly executed by the appropriate parties;

                  (2) Search certificates or similar documentation evidencing
         the filing of the financing statements necessary to perfect the
         security interests granted to Collateral Agent by RDI pursuant to the
         Credit Documents will be prior to the financing statements of all other
         Persons;

                  (3) The certificates representing the stock pledged to
         Collateral Agent pursuant to the RDI Pledge Agreement, together with
         blank stock powers for each such certificate duly executed by RDI and
         the certificates representing the stock pledged to Collateral Agent
         pursuant to the Restated Borrower Pledge Agreement, together with blank
         stock powers for each such certificate duly executed by the Borrower;

<PAGE>

                  (4) Such other documents, instruments and agreements as
         Collateral Agent may reasonably request to establish and perfect the
         Liens granted to Collateral Agent or any Bank in this Agreement, the
         Security Documents and the other Credit Documents.

OTHER ITEMS.

                  (1) A certificate of the President, a Vice President or Chief
         Financial Officer of Borrower, addressed to Administrative Agent and
         the Banks and dated as of the Sixth Amendment Effective Date,
         certifying that:

                           (a) The representations and warranties set forth in
                  Paragraph 4.01 are true and correct as of such date;

                           (b) No Event of Default or Default has occurred and
                  is continuing as of such date; and

                           (c) Each of the Credit Documents required to be
                  delivered to Administrative Agent or any Bank on or prior to
                  the Sixth Amendment Effective Date is in full force and effect
                  as of such date;

                  (3) Certificates of insurance in forms acceptable to
         Collateral Agent, naming Collateral Agent as additional insured or as
         loss payee with respect to the assets of RDI secured pursuant to the
         RDI Security Agreement;

                  (4) Such other evidence as any Bank may reasonably request to
         establish the accuracy and completeness of the representations and
         warranties and the compliance with the terms and conditions contained
         in this Restated Credit Agreement and the other Credit Documents.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00016-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00016-of-00352.parquet"}]]