Document:

364-DAY

                           REVOLVING CREDIT AGREEMENT
                           Dated as of October 6, 2000
                                      among
                                  ANIXTER INC.,
                                  as Borrower,

                             BANK OF AMERICA, N.A.,
                            as Administrative Agent,

                                  BANK ONE, NA,
                              as Syndication Agent,

                            THE BANK OF NOVA SCOTIA,
                             as Documentation Agent,

                       CREDIT LYONNAIS CHICAGO BRANCH and
                                 SUNTRUST BANK,
                               as Managing Agents,

                                       and

                         The Other Lenders Party Hereto

                         BANC OF AMERICA SECURITIES LLC,
                                       as
                    Sole Lead Arranger and Sole Book Manager

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                                  Section Page

                                      iii

                                TABLE OF CONTENTS

                                  Section Page

ARTICLE I.  DEFINITIONS AND ACCOUNTING TERMS
         1.01     Defined Terms................................................1
         1.02     Other Interpretive Provisions...............................22
         1.03     Accounting Terms............................................23
         1.04     Rounding....................................................23
         1.05     References to Agreements and Laws...........................23

ARTICLE II.  THE COMMITMENTS AND CREDIT EXTENSIONS
         2.01     Committed Loans.............................................24
         2.02     Borrowings, Conversions and Continuations of Committed Loans24
         2.03     Prepayments.................................................25
         2.04     Reduction or Termination of Commitments.....................26
         2.05     Repayment of Loans..........................................26
         2.06     Interest....................................................26
         2.07     Fees........................................................27
         2.08     Computation of Interest and Fees............................27
         2.09     Evidence of Debt............................................28
         2.10     Payments Generally..........................................28
         2.11     Sharing of Payments.........................................30
         2.12     Term Out Option.............................................31

ARTICLE III.  TAXES, YIELD PROTECTION AND ILLEGALITY
         3.01     Taxes.......................................................31
         3.02     Illegality..................................................33
         3.03     Inability to Determine Rates................................33
         3.04     Increased Cost and Reduced Return; Capital Adequacy; Reserves
                  on Eurocurrency Rate Loans..................................33

         3.05     Funding Losses..............................................34
         3.06     Matters Applicable to all Requests for Compensation.........35
         3.07     Survival....................................................36

ARTICLE IV.  CONDITIONS PRECEDENT TO CREDIT EXTENSIONS
         4.01     Conditions of Initial Committed Borrowing...................36
         4.02     Conditions to all Committed Borrowings......................37

ARTICLE V.  REPRESENTATIONS AND WARRANTIES
         5.01     Organization; Corporate Powers..............................38
         5.02     Authority...................................................38
         5.03     Subsidiaries................................................38
         5.04     No Conflict.................................................39
         5.05     Governmental Consents.......................................39
         5.06     Governmental Regulation.....................................39
         5.07     Financial Position..........................................39
         5.08     Litigation; Adverse Effects.................................40
         5.09     No Material Adverse Change..................................40
         5.10     Payment of Taxes............................................40
         5.11     Performance.................................................40
         5.12     Securities Activities.......................................41
         5.13     Disclosure..................................................41
         5.14     Requirements of Law.........................................41
         5.15     Patents, Trademarks, Permits, Etc...........................41
         5.16     Environmental Matters.......................................41
         5.17     Employee Benefit Matters....................................42
         5.18     Solvency....................................................42
         5.19     Assets and Properties.......................................42
         5.20     Joint Venture; Partnership..................................42
         5.21     No Default..................................................42
         5.22     Restricted Payments.........................................42
         5.23     Subsequent Funding Representations and Warranties...........43

ARTICLE VI.  AFFIRMATIVE COVENANTS
         6.01     Financial Statements........................................43
         6.02     Environmental Notices.......................................46
         6.03     Corporate Existence, Etc....................................46
         6.04     Corporate Powers, Etc.......................................46
         6.05     Compliance with Laws........................................46
         6.06     Payment of Taxes and Claims.................................47
         6.07     Maintenance of Properties; Insurance........................47
         6.08     Inspection of Property; Books and Records; Discussions......47
         6.09     Maintenance of Permits......................................48
         6.10     Employee Benefit Matters....................................48
         6.11     Additional Guarantors.......................................48
         6.12     Use of Proceeds.............................................48

ARTICLE VII.  NEGATIVE COVENANTS
         7.01     Indebtedness................................................49
         7.02     Sales of Assets; Liens......................................49
         7.03     Investments.................................................51
         7.04     Accommodation Obligations...................................52
         7.05     Restricted Payments.........................................53
         7.06     Conduct of Business.........................................54
         7.07     Transactions with Affiliates................................54
         7.08     Restriction on Fundamental Changes..........................54
         7.09     Employee Benefit Matters....................................54
         7.10     Environmental Liabilities...................................55
         7.11     Margin Regulations..........................................55
         7.12     Change of Fiscal Year.......................................55
         7.13     Modification of the Subordinated LYONs Note, the Revolving
                  Intercompany Note or Senior Note Indenture; Issuance of
                  Additional Senior Notes.....................................56
         7.14     Hedging Contracts...........................................56
         7.15     Receivables Securitization Transactions.....................56
         7.16     Minimum Consolidated Net Worth..............................56
         7.17     Maximum Leverage Ratio......................................56
         7.18     Minimum Consolidated Fixed Charge Coverage Ratio............56
         7.19     Capital Expenditures........................................56
         7.20     Calculation of Financial Covenants..........................57

ARTICLE VIII.  EVENTS OF DEFAULT AND REMEDIES
         8.01     Events of Default...........................................57
         8.02     Remedies Upon Event of Default..............................60

ARTICLE IX.  ADMINISTRATIVE AGENT
         9.01     Appointment and Authorization of Administrative Agent.......60
         9.02     Delegation of Duties........................................60
         9.03     Liability of Administrative Agent...........................61
         9.04     Reliance by Administrative Agent............................61
         9.05     Notice of Default...........................................62
         9.06     Credit Decision; Disclosure of Information by Administrative
                  Agent.......................................................62
         9.07     Indemnification of Administrative Agent.....................63
         9.08     Administrative Agent in its Individual Capacity.............63
         9.09     Successor Administrative Agent..............................63
         9.10     Other Agents................................................64

ARTICLE X.  MISCELLANEOUS
         10.01    Amendments, Etc.............................................64
         10.02    Notices and Other Communications; Facsimile Copies..........65
         10.03    No Waiver; Cumulative Remedies..............................66
         10.04    Attorney Costs, Expenses and Taxes..........................66
         10.05    Indemnification by the Borrower.............................67
         10.06    Payments Set Aside..........................................67
         10.07    Successors and Assigns......................................68
         10.08    Confidentiality.............................................70
         10.09    Set-off.....................................................71
         10.10    Interest Rate Limitation....................................71

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                                       i

                                1037967 00662759
         10.11    Counterparts................................................72
         10.12    Integration.................................................72
         10.13    Survival of Representations and Warranties..................72
         10.14    Severability................................................72
         10.15    Foreign Lenders.............................................72
         10.16    Removal and Replacement of Lenders..........................73
         10.17    Judgment Currency...........................................74
         10.18    Borrower's Agent............................................74
         10.19    Governing Law...............................................75
         10.20    Waiver of Right to Trial by Jury............................75

SCHEDULES

        5.03    Existing Subsidiaries
        5.04    Conflicts
        5.08    Litigation
        5.16    Environmental Matters
        5.20    Joint Ventures and Partnerships
        6.07    Insurance
        7.01    (ii) Existing Indebtedness
        7.02    (b)Existing Liens
        7.03    Existing Investments
       10.02    Eurocurrency and Domestic Lending Offices, Addresses for Notices

EXHIBITS

A        Form of Committed Loan Notice
B        [Intentionally Omitted]
C        [Intentionally Omitted]
D-1      Form of Committed Loan Note
E        Form of Compliance Certificate
F        Form of Assignment and Acceptance
G        Form of Guaranty
H        Form of Opinion of Counsel
I        Form of Allocation Notice

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                                       3

                                     364-DAY
                           REVOLVING CREDIT AGREEMENT

     This 364-DAY REVOLVING CREDIT AGREEMENT ("Agreement") is entered into as of
October 6, 2000,  among ANIXTER INC., a Delaware  corporation  ("Anixter" or the
"Borrower"),  each  lender  from time to time party  hereto  (collectively,  the
"Lenders" and individually, a "Lender"), BANK ONE, NA, as Syndication Agent, THE
BANK OF NOVA SCOTIA,  as  Documentation  Agent,  and BANK OF AMERICA,  N.A.,  as
Administrative Agent.

     The  Borrower has  requested  that the Lenders  provide a revolving  credit
facility,  and the Lenders are willing to do so on the terms and  conditions set
forth herein.  In consideration  of the mutual  covenants and agreements  herein
contained, the parties hereto covenant and agree as follows:

              ARTICLE 1. DEFINITIONS AND ACCOUNTING TERMSARTICLE 2.

ARTICLE 2.01 Defined  Terms . As used in this  Agreement,  the  following  terms
shall have the meanings set forth below:

     "Accommodation Obligation", as applied to any Person, means any contractual
obligation,  contingent  or  otherwise,  of  that  Person  with  respect  to any
Indebtedness  or other  obligation or liability of another,  including,  without
limitation,   any  such  Indebtedness,   obligation  or  liability  directly  or
indirectly guaranteed,  supported by letter of credit,  endorsed (otherwise than
for  collection  or  deposit in the  ordinary  course of  business),  co-made or
discounted  or sold with  recourse by that  Person,  or in respect of which that
Person  is  otherwise  directly  or  indirectly  liable,  including  Contractual
Obligations (contingent or otherwise) arising through any agreement to purchase,
repurchase,  or otherwise acquire such Indebtedness,  obligation or liability or
any security therefor,  or to provide funds for the payment or discharge thereof
(whether in the form of loans, advances, stock purchases,  capital contributions
or  otherwise),  or to  maintain  solvency,  assets,  level of income,  or other
financial  condition,  or to make  payment  other than for value  received.  For
purposes of  interpreting  any provision of this  Agreement  which refers to the
amount of  Accommodation  Obligations  of any Person,  such  provision  shall be
deemed to mean the maximum amount of such  Accommodation  Obligations or, in the
case of an  Accommodation  Obligation  to maintain  solvency,  assets,  level of
income or other  financial  condition,  the amount of Indebtedness to which such
Accommodation Obligation relates, or if less, the stated maximum, if any, in the
documents evidencing such Accommodation Obligation.  Notwithstanding anything to
the contrary contained herein, the term "Accommodation  Obligation" shall not be
interpreted to include any letter of credit Obligations or any other Obligations
hereunder guaranteed by Anixter or any other Guarantor.

     "Administrative   Agent"   means  Bank  of  America  in  its   capacity  as
administrative  agent  under  any  of  the  Loan  Documents,  or  any  successor
administrative agent.

     "Administrative  Agent's Office" means the  Administrative  Agent's address
and,  as  appropriate,  account as set forth on  Schedule  10.02,  or such other
address or account as the  Administrative  Agent may from time to time notify to
Anixter and the Lenders.

     "Affiliate"  means,  as  to  any  Person,  any  other  Person  directly  or
indirectly  controlling,  controlled  by,  or under  direct or  indirect  common
control with,  such Person.  A Person shall be deemed to be "controlled  by" any
other Person if such other Person possesses,  directly or indirectly,  power (a)
to vote 20% or more of the securities (on a fully diluted basis) having ordinary
voting power for the election of directors or managing general partners;  or (b)
to direct or cause the direction of the  management  and policies of such Person
whether by contract or otherwise.

     "Agent/Arranger Fee Letter" has the meaning specified in Section 2.10(b).

     "Agent-Related  Persons"  means the  Administrative  Agent  (including  any
successor administrative agent), together with its Affiliates (including, in the
case of  Bank of  America  in its  capacity  as the  Administrative  Agent,  the
Arranger), and the officers, directors,  employees, agents and attorneys-in-fact
of such Persons and Affiliates.

     "Aggregate  Commitments" means $110,000,000,  as such amount may be reduced
or adjusted from time to time in accordance with this Agreement.

     "Agreement" means this 364-Day Revolving Credit Agreement.

     "Agreement  Accounting  Principles"  means  GAAP  as of the  date  of  this
Agreement  together with any changes in GAAP after the date hereof which are not
"Material  Accounting  Changes" (as defined  below).  If any changes in GAAP are
hereafter  required  or  permitted  and are  adopted by AXE or Anixter  with the
agreement  of its  independent  certified  public  accountants  and such changes
result in a material change in the method of calculation of any of the financial
covenants,  restrictions  or standards  herein or in the related  definitions or
terms used therein ("Material Accounting Changes"),  the parties hereto agree to
enter into  negotiations,  in good faith, in order to amend such provisions in a
credit neutral  manner so as to reflect  equitably such changes with the desired
result  that  the  criteria  for  evaluating  Anixter's  consolidated  financial
condition  shall be the same after such  changes as if such changes had not been
made;  provided,  however,  that no Material  Accounting  Change  shall be given
effect in such  calculations  until  such  provisions  are  amended  in a manner
reasonably  satisfactory to the Required  Lenders.  If such amendment is entered
into, all references in this Agreement to Agreement Accounting  Principles shall
mean GAAP as of the date of such  amendment  together  with any  changes in GAAP
after the date of such amendment which are not Material Accounting Changes.

     "Allocation  Notice"  means a notice  from the  Arranger  and  Anixter to a
Lender  substantially  in the form of  Exhibit I  setting  forth  such  Lender's
Commitment.

     "Anixter" has the meaning assigned to that term in the preamble hereto.

     "Anixter  Distribution  Stock Plan" means the  Anixter  Distribution  Stock
Option Plan dated as of January 1, 1993.

     "Applicable  Margin" means the following  percentages per annum, based upon
the Debt Rating:

     Applicable Margin

Pricing    Debt Ratings        Facility fee     Eurocurrency  Base Rate
Level      S&P/Moody's/Fitch                    Rate+         +
---------- ------------------- ---------------- ------------- --------------

   1         $A-/A3               0.15%             0.60%          zero
   2         BBB+/Baa1            0.175%            0.70%          zero
   3         BBB/Baa2             0.20%             0.80%          zero
   4         BBB-/Baa3            0.225%            0.90%          zero
   5         BB+/Ba1              0.25%            1.125           zero
   6         <BB+/Ba1             0.30%            1.325%          zero

     During  the Term  Out  Period,  if any,  each of the  foregoing  Applicable
Margins for Eurocurrency Rate Loans shall be increased by 0.25%.

     "Debt  Rating"  means,  as of any  date of  determination,  the  rating  as
determined by either S&P,  Moody's or Fitch (provided that Anixter shall have at
least two such  ratings  and at least one of such  ratings  shall be from S&P or
Moody's)  (collectively,  the "Debt Ratings") of Anixter's  non-credit-enhanced,
senior unsecured  long-term debt; provided that if the existing Debt Ratings are
not the same level,  then (i) if there are two Debt Ratings,  the higher of such
Debt  Ratings  shall apply (with  Pricing  Level 1 being the highest and Pricing
Level 6 being the lowest),  (ii) if there are three Debt Ratings and no two Debt
Ratings are at the same level,  the  intermediate  Debt Rating shall  apply,  or
(iii) if there are  three  Debt  Ratings  and two Debt  Ratings  are at the same
level, then the level with the two Debt Ratings shall apply.

     Initially,  the Applicable  Margin shall be determined  based upon the Debt
Rating specified in the certificate  delivered  pursuant to Section  4.01(a)(v).
Thereafter,  each  change in the  Applicable  Margin  resulting  from a publicly
announced  change  in the  Debt  Rating  shall be  effective,  in the case of an
upgrade,  during the period commencing on the date of delivery by Anixter to the
Administrative Agent of notice thereof pursuant to Section 6.01(k) and ending on
the date  immediately  preceding the effective date of the next such change and,
in the case of a  downgrade,  during  the period  commencing  on the date of the
public  announcement  thereof and ending on the date  immediately  preceding the
effective date of the next such change.

     "Arranger"  means Banc of America  Securities  LLC, in its capacity as sole
lead arranger and sole book manager.

     "Assignment   and   Acceptance"   means  an   Assignment   and   Acceptance
substantially in the form of Exhibit F.

     "Attorney  Costs" means and includes all reasonable fees and  disbursements
of any law firm or other external counsel.

     "Attributable  Indebtedness"  means,  on any date,  (a) in  respect  of any
Capital Lease of any Person, the capitalized amount thereof that would appear on
a balance sheet of such Person prepared as of such date in accordance with GAAP,
and (b) in respect of any Synthetic Lease Obligation,  the capitalized amount of
the remaining  lease  payments  under the relevant  lease that would appear on a
balance sheet of such Person prepared as of such date in accordance with GAAP if
such lease were accounted for as a Capital Lease.

     "Audited Financial Statements" means the audited consolidated balance sheet
of the  Consolidated  Group for the fiscal year ended December 31, 1999, and the
related consolidated statements of income and cash flows for such fiscal year of
the Consolidated Group.

     "AXE" means Anixter International Inc., a Delaware corporation. ---

     "Bank of America" means Bank of America, N.A.

     "Base  Rate"  means for any day a  fluctuating  rate per annum equal to the
higher of (a) the Federal Funds Rate plus 1/2 of 1% and (b) the rate of interest
in  effect  for  such day as  publicly  announced  from  time to time by Bank of
America as its "prime  rate."  Such rate is a rate set by Bank of America  based
upon  various  factors  including  Bank of America's  costs and desired  return,
general economic conditions and other factors,  and is used as a reference point
for pricing some loans,  which may be priced at, above,  or below such announced
rate.  Any change in such rate announced by Bank of America shall take effect at
the opening of business on the day specified in the public  announcement of such
change.

     "Base Rate Committed Loan" means a Committed Loan that is a Base Rate Loan.

     "Base Rate Loan" means a Loan that bears interest based on the Base Rate.

     "Benefit  Plan"  shall  mean a defined  benefit  plan as defined in Section
3(35) of ERISA (other than a Multiemployer  Plan) in respect of which Anixter or
any ERISA Affiliate is, or within the  immediately  preceding six (6) years was,
an  "employer"  as defined in Section 3(5) of ERISA.  "Board" means the Board of
Governors of the Federal Reserve System of the United States of America.

     "Borrower" means Anixter.

     "Borrowing" means a Committed Borrowing.

     "Business  Day" means any day other  than a Saturday  or Sunday or a day on
which commercial banking institutions located in Charlotte, Chicago, New York or
San Francisco are authorized or required by law or other governmental  action to
close and with respect to all notices, determinations,  fundings and payments in
connection  with  any  Eurocurrency  Rate  Loan,  any day that is also a day for
trading  by  and  between  banks  in US  Dollars  in  the  applicable  interbank
eurocurrency market.

     "Capital  Lease" as applied to any Person,  means any lease of any property
(whether real, personal, or mixed) by that Person as lessee which, in conformity
with Agreement Accounting Principles, is or should be accounted for as a capital
lease on the balance sheet of that Person.

     "Cash  Equivalents"  shall mean (i) marketable direct obligations issued or
unconditionally  guaranteed  by the  United  States  Government  or issued by an
agency  thereof and backed by the full faith and credit of the United  States of
America,  in each  case  maturing  within  ninety  (90)  days  after the date of
acquisition  thereof;  (ii) marketable direct obligations issued by any state of
the United States of America  maturing within ninety (90) days after the date of
acquisition  thereof  and,  at the time of  acquisition,  having  one of the two
highest  ratings  obtainable  from  either  S&P or Moody's  (or,  if at any time
neither S&P nor Moody's shall be rating such  obligations,  then from such other
nationally  recognized rating services  acceptable to the Administrative  Agent)
and not listed in Credit Watch published by S&P (or a similar publication of S&P
or another nationally recognized rating service);  (iii) commercial paper (other
than commercial paper issued by AXE, Anixter or any Subsidiary of Anixter or any
of their  Affiliates),  domestic and Eurodollar  certificates  of deposit,  time
deposits or bankers' acceptances,  in any such case maturing no more than ninety
(90)  days  after  the  date of  acquisition  thereof  and,  at the  time of the
acquisition thereof, the issuer's rating on its commercial paper is at least A-1
or P-1 from either S&P or Moody's  (or,  if at any time  neither S&P nor Moody's
shall be rating such obligations,  then the highest rating from other nationally
recognized rating services  acceptable to the  Administrative  Agent);  and (iv)
commercial  paper (other than  commercial  paper  issued by AXE,  Anixter or any
Subsidiary  of  Anixter or any of their  Affiliates),  domestic  and  Eurodollar
certificates of deposit, time deposits or bankers' acceptances, in any such case
maturing  no more than ninety  (90) days after the date of  acquisition  thereof
and, at the time of the  acquisition  thereof,  the issuer is a Lender and has a
rating on its commercial paper of at least A-2 or P-2 from either S&P or Moody's
(or, if at any time  neither S&P nor Moody's  shall be rating such  obligations,
then the equivalent  rating from other  nationally  recognized  rating  services
acceptable to the Administrative Agent), provided the amount of Cash Equivalents
under this  clause (iv) shall not at any time  exceed  US$5,000,000.  "Change of
Control"  shall  occur if any  "person,"  as such  term is  defined  in  Section
13(d)(3) of the Securities Exchange Act, other than the Samuel Zell Group, is or
becomes the  "beneficial  owner" (as defined in Rule 13d-3 under the  Securities
Exchange  Act),  directly or indirectly,  of 20% or more of the combined  voting
power of AXE's or Anixter's  outstanding  securities ordinarily having the right
to vote at  elections  of  directors,  and such person at such time owns more of
such combined voting power than the Samuel Zell Group.

     "Closing Date" means the first date all the conditions precedent in Section
4.01 are satisfied or waived in accordance with Section 4.01 (or, in the case of
Section  4.01(b),  waived by the  Person  entitled  to  receive  the  applicable
payment).

     "Code" means the Internal Revenue Code of 1986.

     "Commission"   means  the  Securities   and  Exchange   Commission  or  any
Governmental Authority succeeding to the functions thereof.

     "Commitment"  means,  as to each Lender,  its  obligation to make Committed
Loans to Anixter  pursuant to Section 2.01, in an aggregate  principal amount at
any one time  outstanding  not to exceed the amount of such Commitment set forth
in the Allocation Notice sent to such Lender.

     "Committed   Borrowing"  means  a  borrowing   consisting  of  simultaneous
Committed  Loans of the same Type and having the same  Interest  Period  made by
each of the Lenders pursuant to Section 2.01.

     "Committed Loan" has the meaning specified in Section 2.01.

     "Committed Loan Note" means a promissory note made by Anixter in favor of a
Lender evidencing Committed Loans made by such Lender, substantially in the form
of Exhibit D-1.

     "Committed Loan Notice" means a notice of (a) a Committed Borrowing,  (b) a
conversion of Committed  Loans from one Type to the other, or (c) a continuation
of Committed Loans as the same Type,  pursuant to Section 2.02(a),  which, if in
writing, shall be substantially in the form of Exhibit A.

     "Compliance Certificate" means a certificate substantially in the
form of Exhibit E.

     "Computation Date" means the last Business Day of each calendar month, each
date on which the Borrower borrows, converts or continues any Loan hereunder and
each date on which the  principal  amount of a Loan is required to be determined
under this Agreement.

     "Consolidated  EBITDA"  shall mean,  for any period,  for the  Consolidated
Group  calculated  in  accordance  with  Agreement  Accounting  Principles,  (i)
Consolidated  Net Income for such period  taken as a single  accounting  period,
plus  (ii) the  provision  for  depreciation  and  amortization  expense  of the
Consolidated Group for such period,  plus (iii) income taxes of the Consolidated
Group for such period,  and plus (iv) net interest  expense of the  Consolidated
Group for such period;  provided that there shall be excluded from  Consolidated
EBITDA  any  non-cash,   non-operating  gains  or  losses  (including,   without
limitation,  extraordinary  or unusual gains or losses,  gains or losses arising
from the sale of capital  assets or the sale of owned  buildings and  properties
and other non-recurring gains or losses) during such period.

     "Consolidated  Fixed Charge Coverage Ratio" shall mean, for any period, the
ratio of (a) the sum of  Consolidated  EBITDA and Rental Expense for such period
to (b) the amount of Consolidated Fixed Charge Expense of the Consolidated Group
for such period.

     "Consolidated  Fixed Charge  Expense" shall mean, for any period,  the cash
interest  expense  (including  the  interest  component of capital  leases,  the
interest component of Synthetic Lease  Obligations,  facility fees, and fees for
standby letters of credit,  but excluding the interest accretion relating to the
Subordinated  LYONs Note) plus  consolidated  yield or  discount  accrued on the
outstanding   aggregate  investment  or  principal  amount  of  claims  held  by
purchasers,  assignees or other  transferees of (or of interests in) receivables
of  Anixter  and  its   Subsidiaries   in   connection   with  any   Receivables
Securitization  Transaction  (regardless  of the  accounting  treatment  of such
Receivables  Securitization  Transaction) and Rental Expense of the Consolidated
Group  for such  period  calculated  in  accordance  with  Agreement  Accounting
Principles.

     "Consolidated  Funded Indebtedness" means, as of any date of determination,
for  the  Consolidated  Group  on a  consolidated  basis,  the  sum of  (a)  the
outstanding principal amount of all obligations and liabilities, whether current
or long-term,  for borrowed money (including Obligations hereunder but excluding
the  Subordinated  LYONs Note),  (b) that portion of obligations with respect to
capital  leases that are  capitalized in the  consolidated  balance sheet of the
Consolidated  Group, (c) the principal  portion of Synthetic Lease  Obligations,
(d) the outstanding  aggregate  investment or principal amount of claims held by
purchasers,  assignees or transferees of (or of interests in) receivables  under
Receivables  Securitization  Transactions,  and  (e)  without  duplication,  all
Accommodation  Obligations with respect to Indebtedness of the type specified in
subsections  (a),  (b), (c) and (d) above of Persons  other than the Borrower or
any Subsidiary.

     "Consolidated Group" shall mean Anixter and each of its Subsidiaries.

     "Consolidated Net Income" means, for any period, for the Consolidated Group
on a  consolidated  basis,  the net  income of the  Consolidated  Group for that
period, determined in accordance with Agreement Accounting Principles.

     "Consolidated  Net Worth" means,  at a particular  date,  all amounts which
would  be  included  under  shareholders'  equity  for  the  Consolidated  Group
determined in accordance  with Agreement  Accounting  Principles.  "Contaminant"
means any pollutant,  hazardous substance,  hazardous chemical, toxic substance,
hazardous waste or special waste,  as those terms are defined in federal,  state
or local laws and regulations,  radioactive material, petroleum, including crude
oil or any  petroleum-derived  substance,  or breakdown or decomposition product
thereof,  or any  constituent of any such substance or waste,  including but not
limited to polychlorinated biphenyls and asbestos.

     "Contractual  Obligation"  means,  as to any Person,  any  provision of any
security  issued  by  such  Person  or of any  agreement,  instrument  or  other
undertaking  to  which  such  Person  is a party  or by  which  it or any of its
property is bound.

     "Customary Permitted Liens" means:

     (A) Liens (other than  Environmental  Liens,  Liens  imposed under ERISA or
Enforceable  Judgments)  for  claims,  taxes,  assessments  or  charges  of  any
Governmental Authority not yet due or which are being contested in good faith by
appropriate  proceedings  and with respect to which  adequate  reserves or other
appropriate provisions are being maintained in accordance with GAAP;

     (B)  statutory  Liens  of  landlords,   bankers,  carriers,   warehousemen,
mechanics,  materialmen and other Liens (other than  Environmental  Liens, Liens
imposed under ERISA or  Enforceable  Judgments)  imposed by law,  arising in the
ordinary  course of business and for amounts  which (A) are not yet due, (B) are
not more than thirty (30) days past due as long as no notice of default has been
given or other action taken to enforce such Liens,  or (C) (1) are not more than
thirty (30) days past due and a notice of default has been given or other action
taken to enforce  such  Liens,  or (2) are more than  thirty (30) days past due,
and,  in the case of clause  (1) or (2),  are being  contested  in good faith by
appropriate  ---------- --- proceedings which are sufficient to prevent imminent
foreclosure of such Liens and with respect to which  adequate  reserves or other
appropriate provisions are being maintained in accordance with GAAP;

     (C) Liens (other than  Environmental  Liens,  Liens  imposed under ERISA or
Enforceable  Judgments)  incurred or  deposits  made in the  ordinary  course of
business  (including,  without  limitation,  surety  bonds and appeal  bonds) in
connection with workers' compensation, unemployment insurance and other types of
employment  benefits  or to secure the  performance  of tenders,  bids,  leases,
contracts (other than for the repayment of Indebtedness),  statutory obligations
and other similar  obligations or arising as a result of progress payments under
government contracts;

     (D)  easements   (including,   without   limitation,   reciprocal  easement
agreements and utility agreements) rights-of-way, covenants, consents, rights of
landlords,  reservations,  encroachments,  variations  and  other  restrictions,
charges or  encumbrances  (whether or not  recorded)  affecting  the use of real
property,  which do not materially  interfere  with the ordinary  conduct of the
business of Anixter or any Subsidiary of Anixter;

     (E) Liens in favor of customs and revenue  authorities  arising as a matter
of law to secure payment of customs duties in connection with the importation of
goods; and

     (F) precautionary filings of financing statements in connection with assets
that are not owned by Anixter or its Subsidiaries  (including in connection with
Operating Leases entered into in the ordinary course of business).

     "Debt Rating" has the meaning set forth in the  definition  of  "Applicable
Margin."

     "Debtor  Relief  Laws" means the  Bankruptcy  Code of the United  States of
America, and all other liquidation, conservatorship,  bankruptcy, assignment for
the benefit of creditors, moratorium, rearrangement,  receivership,  insolvency,
reorganization, or similar debtor relief Laws of the United States of America or
other  applicable  jurisdictions  from time to time in effect and  affecting the
rights of creditors generally.

     "Default" means any event that, with the giving of any notice,  the passage
of time, or both, would be an Event of Default.

     "Default  Rate" means an interest  rate equal to (a) the Base Rate plus (b)
the  Applicable  Margin,  if any,  applicable to Base Rate Loans plus (c) 2% per
annum; provided, however, that (i) with respect to a Eurocurrency Rate Loan, the
Default Rate shall be an interest rate equal to the interest rate (including any
Applicable Margin) otherwise  applicable to such Loan plus 2% per annum, in each
case to the fullest extent permitted by applicable Laws.

     "Disposition"  or  "Dispose"  means the sale,  transfer,  license  or other
disposition  (including any sale and leaseback  transaction)  of any property by
any Person, including any sale, assignment,  transfer or other disposal, with or
without recourse,  of any notes or accounts  receivable or any rights and claims
associated therewith.

     "Domestic  Subsidiaries"  means  Anixter-Real  Estate,  Inc.,  an  Illinois
corporation, Anixter Information

     Systems Corporation, an Illinois corporation, and Anixter Financial Inc., a
Delaware corporation.

     "Eligible Assignee" has the meaning specified in Section 10.07(h).

     "Enforceable  Judgment"  means a judgment  or order as to which (a) Anixter
has not demonstrated to the reasonable satisfaction of the Required Lenders that
the  Borrower is covered by  third-party  insurance  (other  than  retro-premium
insurance)  therefor and (b) the period, if any, during which the enforcement of
such judgment or order is stayed shall have expired,  it being understood that a
judgment  or order  which is under  appeal  or as to which  the time in which to
perfect an appeal has not expired shall not be deemed an "Enforceable  Judgment"
so long as enforcement thereof is effectively stayed pending the outcome of such
appeal or the  expiration of such period,  as the case may be;  provided that if
enforcement  of a judgment or order has been stayed on condition  that a bond or
collateral equal to or greater than  US$20,000,000  be posted or provided,  such
judgment or order shall immediately be an "Enforceable Judgment."

     "Environmental  Laws"  means all Laws  relating to  environmental,  health,
safety and land use matters applicable to any property.

     "Environmental  Lien" means a Lien in favor of any  Governmental  Authority
for (i) any  liability of Anixter or any  Subsidiary of Anixter under federal or
state environmental laws or regulations, or (ii) damages from, or costs incurred
by such Governmental  Authority in response to, a Release or threatened  Release
of a Contaminant into the environment.

     "ERISA" means the Employee  Retirement  Income Security Act of 1974 and any
regulations issued pursuant thereto.

     "ERISA  Affiliate" means any (i) corporation  which is a member of the same
controlled  group of  corporations  (within the meaning of Section 414(b) of the
Code) as Anixter or any of its Subsidiaries,  (ii) partnership or other trade or
business (whether or not incorporated)  under common control (within the meaning
of Section  414(c) of the Code) with  Anixter  or any of its  Subsidiaries,  and
(iii) member of the same affiliated service group (within the meaning of Section
414(m) of the  Code) as  Anixter  or any of its  Subsidiaries,  any  corporation
described in clause (i) above or any partnership or trade or business  described
in clause (ii) above.

     "ERISA Event" means (a) any "reportable  event", as defined in Section 4043
of ERISA or the regulations issued thereunder (other than an event for which the
30-day notice period is waived),  with respect to a Plan; (b) the existence with
respect  to any Plan of an  "accumulated  funding  deficiency"  (as  defined  in
Section 412 of the Code or Section 302 of ERISA), whether or not waived; (c) the
filing  pursuant to Section  412(d) of the Code or Section 303(d) of ERISA of an
application  for a waiver of the minimum  funding  standard  with respect to any
Plan;  (d) the  incurrence  by  Anixter  or any of its ERISA  Affiliates  of any
liability  under Title IV of ERISA with respect to the  termination of any Plan;
(e) any Termination  Event; or (f) the receipt by Anixter or any ERISA Affiliate
of any notice,  or the  receipt by any  Multiemployer  Plan from  Anixter or any
ERISA Affiliate of any notice, concerning the imposition of Withdrawal Liability
or a determination that a Multiemployer Plan is, or is expected to be, insolvent
or in reorganization, within the meaning of Title IV of ERISA.

           "Euro" has the meaning set forth in Section 10.18.

     "Eurocurrency  Rate" means, for any Eurocurrency Rate Loan for any Interest
Period,  the rate per annum  determined by the  Administrative  Agent as (i) the
rate which appears on Telerate Page 3750 or the other appropriate  Telerate Page
(or any successor page) as the London interbank  offered rate for deposits in US
Dollars at  approximately  11:00 a.m.  (London,  England time) two Business Days
prior to the first day of such  Interest  Period for a term  comparable  to such
Interest  Period;  or (ii) if for any reason the rate described in clause (i) is
not available,  the rate per annum which appears on the Reuters Screen LIBO Page
as the London interbank offered rate for deposits in US Dollars at approximately
11:00 a.m.  (London,  England  time) two Business Days prior to the first day of
such Interest  Period for a term  comparable to such Interest  Period;  provided
that if more than one rate is  specified  on the Reuters  Screen LIBO Page,  the
rate shall be the  arithmetic  mean of all such rates  (carried to five  decimal
places).

     "Eurocurrency  Rate  Committed  Loan" or  "Eurocurrency  Rate Loan" means a
Committed Loan that bears interest at a rate based on the Eurocurrency Rate.

     "Event of Default"  means any of the events or  circumstances  specified in
Article VIII.

     "Existing  Credit  Facility" means that certain Second Amended and Restated
Credit Agreement dated as of September 6, 1996, as amended,  among the Borrower,
certain of its  Subsidiaries,  the  Guarantors,  The Chase  Manhattan  Bank,  as
administrative agent, and a syndicate of lenders.

     "Existing  Indebtedness"  means the  Indebtedness of Anixter and any of its
Subsidiaries  reflected on Schedule  7.01(ii),  but in any event  excluding  the
Indebtedness evidenced by the Revolving Subordinated Notes.

     "Federal  Funds  Rate"  means,  for any day,  the rate per  annum  (rounded
upwards to the nearest  1/100 of 1%) equal to the weighted  average of the rates
on overnight  Federal  funds  transactions  with members of the Federal  Reserve
System  arranged  by Federal  funds  brokers on such day,  as  published  by the
Federal Reserve Bank on the Business Day next succeeding such day; provided that
(a) if such day is not a Business Day, the Federal Funds Rate for such day shall
be such  rate on such  transactions  on the next  preceding  Business  Day as so
published  on the next  succeeding  Business  Day, and (b) if no such rate is so
published on such next succeeding  Business Day, the Federal Funds Rate for such
day shall be the  average  rate  charged  to Bank of America on such day on such
transactions as determined by the Administrative Agent.

     "Financial  Officer"  means,  with respect to any Person,  any of the chief
financial  officer,  controller or treasurer of such Person and, with respect to
Anixter shall include its Vice President-Finance.

     "Financial Statement Delivery Date" means the 90th day following the end of
the  fourth  Fiscal  Quarter  and the 45th day  following  the end of each other
Fiscal Quarter, in each Fiscal Year. "Fiscal Quarter" means a 13-week accounting
period of the  Borrower  ending on or about March 31, June 30,  September  30 or
December 31 of any Fiscal Year.

     "Fiscal  Year"  means the fiscal year of the  Borrower,  which shall be the
annual  accounting  period of the  Borrower  ending  on the  Friday  closest  to
December 31 of each year.

     "Fitch" means Fitch IBCA, Inc.

     "Five-Year Credit Agreement" means the Five-Year Revolving Credit Agreement
dated as of the date hereof among the Borrower, certain of its Subsidiaries, the
lenders party thereto and Bank of America, as administrative agent.

     "Foreign Employee Benefit Plan" means any plan, program,  policy, agreement
or contract  maintained  or  contributed  to or for the benefit of  employees or
Anixter, any of its Subsidiaries or any ERISA Affiliate which is governed by the
laws of a jurisdiction outside the United States of America.

           "Foreign  Pension  Plan"  means any  pension  plan or other  deferred
compensation  plan,  program or arrangement  maintained or contributed to or for
     the benefit of employees of Anixter, any of its Subsidiaries or any ERISA
Affiliate,  which,  under the  applicable  local law,  is  required to be funded
through a trust or other funding  vehicle and which is governed by the laws of a
jurisdiction outside the United States of America.

     "Foreign  Subsidiaries"  means Anixter Puerto Rico, Inc., Anixter Venezuela
Inc.,  Anixter  Thailand  Inc.,  Anixter  Philippines  Inc. and any of Anixter's
Subsidiaries  which are incorporated in any  jurisdiction  outside of the United
States, and their respective successors and assigns.

     "GAAP" means  generally  accepted  accounting  principles  set forth in the
opinions and pronouncements of the Accounting  Principles Board and the American
Institute of Certified Public  Accountants and statements and  pronouncements of
the  Financial  Accounting  Standards  Board or such other  principles as may be
approved  by a  significant  segment  of the  accounting  profession,  that  are
applicable to the  circumstances as of the date of  determination,  consistently
applied.

     "Governmental Authority" means any nation or government, any state or other
political   subdivision   thereof,  any  agency,   authority,   instrumentality,
regulatory body, court,  administrative  tribunal,  central bank or other entity
exercising   executive,    legislative,    judicial,   taxing,   regulatory   or
administrative  powers or  functions of or  pertaining  to  government,  and any
corporation  or other  entity  owned or  controlled,  through  stock or  capital
ownership or otherwise, by any of the foregoing.

     "Guarantors" means (a) Anixter, AXE, and each Domestic Subsidiary,  and (b)
each Subsidiary that becomes a Guarantor as provided in Section 6.11. "Guaranty"
means the Guaranty made by the Guarantors in favor of the  Administrative  Agent
on behalf of the Lenders, substantially in the form of Exhibit G (other than the
Receivables Securitization SPV).

     "Hedging  Contracts"  means  interest rate,  foreign  currency or commodity
exchange,  swap,  collar,  cap, option,  forward,  futures or similar agreements
entered into by Anixter or any of its Subsidiaries  pursuant to which Anixter or
such  Subsidiary  has hedged its interest  rate,  foreign  currency or commodity
exposure.

     "Indebtedness" means, as to any Person at a particular time, all of
the following (without duplication):

(a)        all obligations of such Person for borrowed money and all obligations
           of such Person evidenced by bonds, debentures, notes, loan agreements
           or other similar instruments;

(b)        any direct or  contingent  obligations  of such Person  arising under
           letters  of  credit  (including  standby  and  commercial),  banker's
           acceptances, bank guaranties, surety bonds and similar instruments;

(c)        net obligations  under any Hedging Contract in an amount equal to (i)
           if such Hedging  Contract has been closed out, the termination  value
           thereof,  or (ii) if such  Hedging  Contract has not been closed out,
           the  mark-to-market  value thereof determined on the basis of readily
           available  quotations  provided  by any  recognized  dealer  in  such
           Hedging Contract;

(d)        whether or not so included as  liabilities  in accordance  with GAAP,
           all obligations of such Person to pay the deferred  purchase price of
           property or services,  and indebtedness  (excluding  prepaid interest
           thereon)  secured by a Lien on property  owned or being  purchased by
           such Person (including  indebtedness  arising under conditional sales
           or  other   title   retention   agreements),   whether  or  not  such
           indebtedness  shall have been assumed by such Person or is limited in
           recourse;

(e)      Capital Leases and Synthetic Lease Obligations;

(f)        the outstanding  aggregate  investment or principal  amount of claims
           held by purchasers,  assignees or transferees of (or of interests in)
           receivables  of  such  Person  in  connection  with  any  Receivables
           Securitization Transaction; and

(g)      all Accommodation Obligations of such Person in respect of any of the
         foregoing.

     For all purposes  hereof,  the Indebtedness of any Person shall include the
Indebtedness  of any  partnership  or joint  venture in which  such  Person is a
general partner or a joint venturer,  unless such Indebtedness is expressly made
non-recourse  to such Person except for customary  exceptions  acceptable to the
Required Lenders.  The amount of any Capital Lease or Synthetic Lease Obligation
as of any date shall be deemed to be the amount of Attributable  Indebtedness in
respect thereof as of such date.

     "Indemnified Liabilities" has the meaning set forth in Section 10.05.

     "Indemnitees" has the meaning set forth in Section 10.05.

     "Interest  Payment  Date" means,  (a) as to any Loan other than a Base Rate
Loan, the last day of each Interest  Period  applicable to such Loan;  provided,
however,  that if any Interest Period for a Eurocurrency Rate Loan exceeds three
months, the respective dates that fall every three months after the beginning of
such Interest  Period shall also be Interest  Payment  Dates;  and (b) as to any
Base Rate  Loan,  the last  Business  Day of each  March,  June,  September  and
December and the Maturity Date.

     "Interest  Period"  means as to each  Eurocurrency  Rate  Loan,  the period
commencing on the date such  Eurocurrency Rate Loan is disbursed or (in the case
of  any  Eurocurrency  Rate  Committed  Loan)  converted  to or  continued  as a
Eurocurrency  Rate Loan and  ending on the date one,  two,  three or six  months
thereafter,  as selected by the Borrower in its Committed Loan Notice;  provided
that:

(i)        any Interest  Period that would  otherwise end on a day that is not a
           Business  Day shall be extended to the next  succeeding  Business Day
           unless,  in the case of a Eurocurrency  Rate Loan,  such Business Day
           falls in another  calendar  month, in which case such Interest Period
           shall end on the next preceding Business Day;

(ii)       any  Interest  Period  pertaining  to a  Eurocurrency  Rate Loan that
           begins on the last Business Day of a calendar  month (or on a day for
           which there is no numerically corresponding day in the calendar month
           at the end of such  Interest  Period)  shall end on the last Business
           Day of the calendar month at the end of such Interest Period; and

(iii)    no Interest Period shall extend beyond the scheduled Maturity Date.

           "Investment" has the meaning assigned to that term in Section 7.03.

           "IRS" means the United States Internal Revenue Service.
            ---

     "Laws" means, collectively, all international,  foreign, Federal, state and
local statutes, treaties, rules, guidelines, regulations,  ordinances, codes and
administrative   or  judicial   precedents   or   authorities,   including   the
interpretation or administration  thereof by any Governmental  Authority charged
with  the  enforcement,   interpretation  or  administration  thereof,  and  all
applicable   administrative  orders,   directed  duties,   requests,   licenses,
authorizations and permits of, and agreements with, any Governmental  Authority,
in each case whether or not having the force of law.

     "Lender" has the meaning specified in the introductory paragraph hereto.

     "Lending  Office"  means,  as to any Lender,  the office or offices of such
Lender described as such on Schedule 10.02, or such other office or offices as a
Lender may from time to time notify Anixter and the Administrative Agent.

     "Leverage  Ratio" means, as of any date of  determination,  for Anixter and
its Subsidiaries on a consolidated  basis, the ratio of (a) Consolidated  Funded
Indebtedness  as of such date to (b)  Consolidated  EBITDA for the period of the
four  Fiscal  Quarters  ending on such date,  provided  that,  for  purposes  of
calculating the Leverage Ratio, Consolidated EBITDA shall be calculated on a pro
forma basis (in  accordance  with Article 11 of Regulation S-X of the Securities
and  Exchange  Commission)  to the extent  necessary  to give  effect to (a) any
acquisition made by Anixter or any Subsidiary during such period (without giving
effect to any increase in Consolidated  EBITDA  reflecting  projected  synergies
resulting from such acquisition) so long as, and to the extent that, (i) Anixter
delivers to the  Administrative  Agent  (which  shall  promptly  deliver to each
Lender) a summary in reasonable  detail of the assumptions  underlying,  and the
calculations  made,  in computing  Consolidated  EBITDA on a pro forma basis and
(ii) the Required Lenders do not object to such assumptions and/or  calculations
within 10 Business  Days after receipt  thereof;  and (b) any  divestiture  of a
Subsidiary, division or other operating unit made during such period.

     "Liabilities  and  Costs"  means  all  liabilities,   claims,  obligations,
responsibilities,  losses,  damages,  punitive damages,  consequential  damages,
treble damages,  charges,  costs and expenses  (including,  without  limitation,
attorneys',  experts'  and  consulting  fees  and  costs  of  investigation  and
feasibility studies), fines, penalties and monetary sanctions,  interest, direct
or indirect, known or unknown, absolute or contingent, past, present or future.

     "Lien"  means any  mortgage,  pledge,  hypothecation,  assignment,  deposit
arrangement,   encumbrance,  lien  (statutory  or  other),  Environmental  Lien,
Enforceable Judgment, charge, or preference, priority or other security interest
or  preferential  arrangement  of any kind or nature  whatsoever  (including any
conditional  sale or other title retention  agreement,  the interest of a lessor
under a  Capital  Lease,  any  financing  lease  having  substantially  the same
economic  effect  as any of the  foregoing,  and  the  filing  of any  financing
statement  under  the  Uniform   Commercial  Code  or  comparable  Laws  of  any
jurisdiction), including the interest of a purchaser of accounts receivable.

     "Loan" has the meaning specified in Section 2.01.

     "Loan  Documents"  means this  Agreement,  each  Committed  Loan Note,  the
Guaranty,  the Agent/Arranger Fee Letter,  each Request for Credit Extension and
each Compliance Certificate.  "Loan Parties" means,  collectively,  the Borrower
and the Guarantors.

     "Margin  Stock" has the meaning  assigned to such term in  Regulation G and
Regulation U.

     "Material  Adverse  Effect"  means (a) a material  adverse  change in, or a
material  adverse effect upon, the operations,  assets,  liabilities  (actual or
contingent),  business,  properties,  financial  condition  or prospects of AXE,
Anixter and its Subsidiaries taken as a whole; (b) a material  impairment of the
ability of the Loan Parties (taken as a whole) to perform the obligations of all
Loan Parties under any Loan  Document to which it is a party;  or (c) a material
adverse effect upon the legality,  validity,  binding  effect or  enforceability
against any Loan Party of any Loan Document to which it is a party or the rights
and remedies of the Lenders under the Loan Documents.

     "Material Transaction" means any sale, assignment,  transfer, conveyance or
other disposition of (i) assets of any member of the Consolidated  Group or (ii)
capital stock of any member of the Consolidated  Group which, when combined with
all such other sales, assignments,  transfers, conveyances or other dispositions
in the immediately  preceding  twelve-month period represents the disposition of
an amount which is greater than ten percent (10.0%) of the Consolidated  Group's
(x) assets or (y) revenues.

     "Maturity Date" means (a) October 5, 2001, (b) such earlier date upon which
the Commitments  may be terminated in accordance  with the terms hereof,  or (c)
such later date to which the Maturity  Date may be extended in  accordance  with
Section 2.12.

     "Moody's" means Moody's Investors Service, Inc.

     "Multiemployer  Plan"  means a  "multiemployer  plan" as defined in Section
4001(a)(3) of ERISA which is, or within the immediately  preceding six (6) years
was, contributed to by Anixter or any ERISA Affiliate.

     "Obligations" means all advances to, and debts,  liabilities,  obligations,
covenants and duties of, any Loan Party arising under any Loan Document, whether
direct or  indirect  (including  those  acquired  by  assumption),  absolute  or
contingent,  due or to  become  due,  now  existing  or  hereafter  arising  and
including  interest that accrues after the  commencement  by or against any Loan
Party or any Affiliate  thereof of any  proceeding  under any Debtor Relief Laws
naming such Person as the debtor in such proceeding.

     "Officers'  Certificate"  means,  as  to  any  corporation,  a  certificate
executed  on  behalf  of  such  corporation  by  a  Financial  Officer  of  such
corporation.

     "Operating  Lease"  means,  as  applied  to any  Person,  any  lease of any
Property by that Person as lessee which is not a Capital Lease.

     "Organization  Documents"  means, (a) with respect to any corporation,  the
certificate or articles of incorporation and the bylaws; (b) with respect to any
limited liability  company,  the articles of formation and operating  agreement;
and (c) with respect to any partnership,  joint venture,  trust or other form of
business entity, the partnership, joint venture or other applicable agreement of
formation and any agreement,  instrument,  filing or notice with respect thereto
filed in  connection  with its  formation  with the  secretary of state or other
department in the state of its  formation,  in each case as amended from time to
time.

     "Outstanding Amount" means with respect to Committed Loans on any date, the
aggregate  outstanding  principal  amount  thereof  after  giving  effect to any
borrowings and  prepayments or repayments of Committed  Loans  occurring on such
date.

     "Participant" has the meaning specified in Section 10.07(d).

     "PBGC" means the Pension Benefit Guaranty Corporation.

     "Pension Plan" means any "employee  pension  benefit plan" (as such term is
defined in Section  3(2) of ERISA),  other than a  Multiemployer  Plan,  that is
subject to Title IV of ERISA and is  sponsored or  maintained  by Anixter or any
ERISA Affiliate or to which Anixter or any ERISA Affiliate contributes or has an
obligation  to  contribute,  or in the  case of a  multiple  employer  plan  (as
described in Section 4064(a) of ERISA) has made contributions at any time during
the immediately preceding five plan years.

     "Permits"  means any permit,  approval,  consent,  authorization,  license,
variance,  or  permission  required  from  a  Governmental  Authority  under  an
applicable Requirement of Law.

     "Permitted  Existing  Liens"  means the Liens on any property of Anixter or
any Subsidiary of Anixter, in each case reflected on Schedule 7.02(b).

           "Person"  means  any  individual,   trustee,   corporation,   general
     partnership, limited partnership, limited liability company, joint stock
company, trust, unincorporated organization,  bank, business association,  firm,
joint venture or Governmental Authority.

     "Plan"  means an employee  benefit plan defined in Section 3(3) of ERISA in
respect  of which  either  Anixter  or any ERISA  Affiliate  is,  or within  the
immediately  preceding  six (6) years was, an  "employer"  as defined in Section
3(5) of ERISA.

     "Pro Rata  Share"  means,  with  respect  to each  Lender,  the  percentage
(carried out to the ninth decimal place) that such Lender's Commitment comprises
of the  Aggregate  Commitments,  as such share may be adjusted  as  contemplated
herein.

     "Property" means with respect to any Person, any real or personal property,
plant,  building,  facility,  structure,  equipment  or  unit,  or  other  asset
(tangible or intangible) owned,  leased or operated by such Person.  "Put Event"
means a "Put  Event"  under and as defined in  Section  1010 of the Senior  Note
Indenture.

     "Receivables  Securitization  SPV" means a special purpose entity that is a
Subsidiary established for a Receivables Securitization Transaction.

     "Receivables  Securitization  Transaction"  means any sale,  assignment  or
other  transfer  by Anixter or any  Subsidiary  of  accounts  receivable,  lease
receivables or other payment  obligations owing to Anixter or such Subsidiary or
any interest in any of the foregoing, together in each case with any collections
and other proceeds thereof,  any collection or deposit accounts related thereto,
and any  collateral,  guaranties or other property or claims in favor of Anixter
or such Subsidiary  supporting or securing payment by the obligor thereon of, or
otherwise related to, any such receivables.

     "Register" has the meaning set forth in Section 10.07(c).

     "Release" means any release, spill, emission,  leaking, pumping, injection,
deposit, disposal, discharge, dispersal, leaching or migration from any Property
into the indoor or outdoor  environment,  including the movement of Contaminants
through or in the air, soil, surface water, groundwater or Property.

     "Remedial Action" means any action required to (i) clean up, remove,  treat
or in any other way address  Contaminants in the indoor or outdoor  environment;
(ii) prevent a Release or threat of Release or minimize  the further  Release of
Contaminants  so they do not migrate or endanger or threaten to endanger  public
health  or  welfare  or the  indoor or  outdoor  environment;  or (iii)  perform
pre-remedial studies and investigations or post-remedial monitoring and care.

     "Rental  Expense"  means,  for any  period,  the total  rental  expense for
Operating  Leases  of  the  Consolidated  Group  on  a  consolidated  basis,  as
determined in accordance with Agreement Accounting Principles.

     "Reportable  Event"  means any of the events  set forth in Section  4043 of
ERISA.

     "Request for Credit Extension" means with respect to a Committed Borrowing,
or a conversion or continuation of Committed Loans, a Committed Loan Notice.

     "Required  Lenders" means, as of any date of  determination,  Lenders whose
Voting Percentages aggregate more than 50%.

     "Requirements of Law" means, as to any Person,  the Organization  Documents
or other organizational or governing documents of such Person, and any law, rule
or regulation,  Permit,  or  determination  of an arbitrator or a court or other
Governmental  Authority,  in each case applicable to or binding upon such Person
or any of its  Property  or to  which  such  Person  or any of its  property  is
subject,  including,  without  limitation,  the  Securities  Act, the Securities
Exchange Act,  Regulation T,  Regulation U and Regulation X, and any certificate
of occupancy, zoning ordinance, building,  environmental or land use, law, rule,
regulation,  ordinance or Permit or  occupational  safety or health law, rule or
regulation.

     "Responsible  Officer"  means  the  president,   chief  financial  officer,
treasurer or assistant treasurer of a Loan Party or such other person designated
as such by any of the  foregoing  officers  of such  Loan  Party.  Any  document
delivered  hereunder  that is signed by a  Responsible  Officer  of a Loan Party
shall  be  conclusively  presumed  to  have  been  authorized  by all  necessary
corporate,  partnership  and/or  other action on the part of such Loan Party and
such Responsible Officer shall be conclusively  presumed to have acted on behalf
of such Loan Party.

     "Restricted  Payment" means (i) any dividend or other distribution,  direct
or indirect,  on account of any shares of any class of capital  stock of Anixter
or any of its  Subsidiaries,  except a distribution  of stock as part of a stock
split and except a dividend  payable  solely in shares of that class of stock or
in any junior  class of stock to the  holders of that class,  provided  that the
issuance  of such  stock  or  junior  class of  stock  is not an  incurrence  of
Indebtedness, (ii) any redemption,  retirement, sinking fund or similar payment,
purchase or other  acquisition for value,  direct or indirect,  of any shares of
any  class  of  capital  stock  of  Anixter  or any of its  Subsidiaries  now or
hereafter  outstanding,  (iii) any  payment  made to  retire,  or to obtain  the
surrender  of, any  outstanding  warrants,  options  or other  rights to acquire
shares of any class of capital stock of Anixter or any of its  subsidiaries  now
or hereafter outstanding,  (iv) any payment of a claim for the rescission of the
purchase or sale of, or for material  damages  arising from the purchase or sale
of any shares of the capital stock of Anixter or any of its Subsidiaries or of a
claim for  reimbursement,  indemnification  or  contribution  arising  out of or
related  to any such  claim  for  damages  or  rescission,  (v) any  payment  of
tax-sharing payments,  allocated corporate overhead (other than expenses paid to
third parties by AXE on behalf of Anixter),  guaranty fees or management fees to
AXE or any of its Affiliates,  and (vi) any payment in the nature of a loan from
Anixter or any of its  Subsidiaries to AXE or any of AXE's  Subsidiaries  (other
than  intercompany  loans between Anixter or any of Anixter's  Subsidiaries with
each  other  as  expressly  permitted  pursuant  to this  Agreement);  provided,
however,  Restricted  Payment  shall not include (x) any payment of dividends by
any Subsidiary of Anixter to Anixter or any other Subsidiary of Anixter,  or (y)
any redemption,  retirement,  purchase or other acquisition for value, direct or
indirect,  of any shares of capital  stock of  Anixter  issued to its  employees
under and  pursuant to the  provisions  of the Anixter  Distribution  Stock Plan
pursuant to Section 7.03(iv)(b).

     "Revolving Subordinated Note" means the demand promissory note from Anixter
to  AXE  dated  October  6,  2000,  as the  same  may be  amended,  modified  or
supplemented.

     "Same Day Funds" means (i) with respect to disbursements and payments in US
Dollars, immediately available funds, and (ii) with respect to disbursements and
payments in any other currency,  same day or other funds as may be determined by
the Administrative Agent to be customary in the place of disbursement or payment
for the settlement of international banking transactions in such currency.

     "Samuel  Zell Group" means  Samuel Zell or any of his  affiliates  (as such
term is defined in Rule 12b-2 of the Securities  Exchange Act) or associates (as
such term is defined  in Rule 12b-2 of the  Securities  Exchange  Act),  and his
heirs and beneficiaries.

     "S&P"  means  Standard  &  Poor's  Ratings  Services,  a  division  of  The
McGraw-Hill Companies, Inc.

     "Securities Act" means the Securities Act of 1933.

     "Securities  Exchange  Act"  means  the  Securities  Exchange  Act of 1934.

     "Senior Note Indenture" means that certain Indenture dated as of
September 9, 1996 among Anixter, AXE and The Bank of New York, as Trustee.

     "Senior Notes" shall mean Anixter's Senior Notes due 2003,  issued pursuant
to the Senior Note Indenture in an amount not to exceed US$100,000,000.

     "Solvent" means, when used with respect to any Person,  that at the time of
determination:

<PAGE>

(i)        the fair value of its assets (both at fair  valuation  and at present
           fair saleable  value) is equal to or in excess of the total amount of
           its   liabilities,    including,   without   limitation,   contingent
           liabilities; and

(ii)       it is then able and expected to be able to pay its debts as they
           mature; and

(iii)      it has capital sufficient to carry on its business as conducted and
           as proposed to be conducted.

     With respect to contingent liabilities (such as litigation,  guarantees and
pension  plan  liabilities),  such  liabilities  shall be computed at the amount
which,  in  light of all the  facts  and  circumstances  existing  at the  time,
represent  the amount  which can  reasonably  be expected to become an actual or
matured liability.

     "Subordinated LYONs Note" means the zero-coupon,  convertible  subordinated
note dated October 6, 2000 of Anixter  payable to AXE in the original  principal
amount of US$200,035,440.

     "Subsidiary" of a Person means a corporation,  partnership,  joint venture,
limited  liability  company or other business  entity of which a majority of the
shares of securities or other  interests  having  ordinary  voting power for the
election  of  directors  or other  governing  body  (other  than  securities  or
interests  having such power only by reason of the  happening of a  contingency)
are at the time beneficially owned by such Person.  Unless otherwise  specified,
all references  herein to a "Subsidiary" or to  "Subsidiaries"  shall refer to a
Subsidiary or Subsidiaries of Anixter.

     "Synthetic  Lease  Obligation"  means the monetary  obligation  of a Person
under (a) a so-called  synthetic,  off-balance  sheet or tax retention lease, or
(b) an agreement for the use or possession of property creating obligations that
do not appear on the balance sheet of such Person but which, upon the insolvency
or bankruptcy of such Person, would be characterized as the indebtedness of such
Person (without regard to accounting treatment).

     "Tax  Allocation  Agreement"  means that certain Tax  Allocation  Agreement
between AXE and Anixter dated as of January 1, 1987 as initially supplemented by
that certain Tax Allocation  Agreement Supplement dated as of May 6, 1987, which
Supplement  has  been  superseded  by  that  certain  Tax  Allocation  Agreement
Supplement  dated as of May 20,  1992,  as the same  may be  amended,  restated,
supplemented  or otherwise  modified  from time to time (i) in any respect which
does not (a) require Anixter to make any greater payments  thereunder  either in
absolute  amounts or percentage  terms or (b) does not reduce either in absolute
amounts or percentage  terms the benefits to Anixter,  without consent of all of
the Lenders or (ii) otherwise with the consent of the Required Lenders.

     "Term Out Period" has the meaning set forth in Section 2.12.

     "Termination  Event"  means a (i)  Reportable  Event  with  respect  to any
Benefit  Plan;  (ii) the  withdrawal  of Anixter of any ERISA  Affiliate  from a
Benefit Plan during a plan year in which  Anixter or such ERISA  Affiliate was a
"substantial  employer"  as defined in Section  4001(a)(2)  of ERISA;  (iii) the
imposition of an obligation of Anixter or any ERISA Affiliate under Section 4041
of ERISA to provide  affected  parties  written  notice of intent to terminate a
Benefit Plan in a distress  termination  described in Section  4041(c) of ERISA;
(iv) the institution by the PBGC or any similar foreign  governmental  authority
of  proceedings  to terminate a Benefit Plan or a Foreign  Pension Plan, (v) any
event or condition  which might  constitute  grounds under Section 4042 of ERISA
for the  termination  of, or the  appointment  of a trustee to  administer,  any
Benefit Plan; (vi) a foreign  governmental  authority shall appoint or institute
proceedings  to appoint a trustee to  administer  any Foreign  Pension  Plan; or
(vii) the partial or complete  withdrawal of Anixter of any ERISA Affiliate from
a Multiemployer Plan or a Foreign Pension Plan.

     "Total  Outstandings"  means at any time the aggregate  principal amount of
all Loans.

     "Transaction  Costs" means the reasonable  fees, costs and expenses payable
by Anixter or any of its Subsidiaries  pursuant hereto or in connection herewith
or in respect hereof or of the other Loan Documents.

     "Transaction  Documents"  means  the  Loan  Documents,  the Tax  Allocation
Agreement, the Revolving Subordinated Note and the Subordinated LYONs Note.

     "Type" means with respect to a Committed Loan, its character as a Base Rate
Loan or a Eurocurrency Rate Loan.

     "US  Dollar  Eurocurrency  Rate  Loans"  means  Committed  Loans  which are
Eurocurrency Rate Loans and are denominated in US Dollars.

     "US  Dollars"  or "US$" means  dollars  constituting  legal  tender for the
payment of public and private debts in the United States of America.

     "Voting  Percentage"  means,  as to any  Lender,  (a) at any time  when the
Commitments  are in  effect,  such  Lender's  Pro Rata Share and (b) at any time
after the  termination of the  Commitments,  the percentage  (carried out to the
ninth decimal place) which (i) the Outstanding Amount of such Lender's Committed
Loans then constitutes of (ii) the Total Outstandings;  provided,  however, that
if any Lender has failed to fund any portion of the Committed  Loans required to
be funded by it hereunder, such Lender's Voting Percentage shall be deemed to be
-0-,  and the  respective  Pro Rata Shares and Voting  Percentages  of the other
Lenders shall be recomputed  for purposes of this  definition and the definition
of  "Required  Lenders"  without  regard  to  such  Lender's  Commitment  or the
outstanding amount of its Committed Loans, as the case may be.

ARTICLE 1.02           Other Interpretive Provisions .

     (a) The meanings of defined  terms are equally  applicable  to the singular
and plural forms of the defined terms.

     (i) The words  "herein" and  "hereunder"  and words of similar  import when
used in any Loan  Document  shall refer to such Loan Document as a whole and not
to any particular provision thereof.

     (ii) Unless  otherwise  specified  herein,  Article,  Section,  Exhibit and
Schedule references are to this Agreement.

     (iii) The term "including" is by way of example and not limitation.

     (iv) The term  "documents"  includes  any and all  instruments,  documents,
agreements,  certificates,  notices,  reports,  financial  statements  and other
writings, however evidenced.

     (b) In the  computation of periods of time from a specified date to a later
specified  date, the word "from" means "from and  including;" the words "to" and
"until"  each  mean "to but  excluding;"  and the word  "through"  means "to and
including."

     (c) Section  headings  herein and the other Loan Documents are included for
convenience  of reference only and shall not affect the  interpretation  of this
Agreement or any other Loan Document.

     ARTICLE 1.03 Accounting  Terms . All accounting  terms not  specifically or
completely  defined  herein  shall be  construed  in  conformity  with,  and all
financial  data  required to be submitted  pursuant to this  Agreement  shall be
prepared in conformity  with,  GAAP applied on a consistent  basis, as in effect
from time to time,  applied in a manner  consistent  with that used in preparing
the Audited Financial Statements,  except as otherwise  specifically  prescribed
herein.

     ARTICLE 1.04 Rounding . Any financial  ratios  required to be maintained by
the Borrower  pursuant to this  Agreement  shall be  calculated  by dividing the
appropriate  component by the other component,  carrying the result to one place
more than the  number of places by which  such  ratio is  expressed  herein  and
rounding  the result up or down to the nearest  number  (with a  rounding-up  if
there is no nearest number).

     ARTICLE 1.05 References to Agreements and Laws . Unless otherwise expressly
provided herein, (a) references to agreements (including the Loan Documents) and
other  contractual  instruments  shall  be  deemed  to  include  all  subsequent
amendments,  restatements,   extensions,  supplements  and  other  modifications
thereto, but only to the extent that such amendments, restatements,  extensions,
supplements and other modifications are not prohibited by any Loan Document; and
(b) references to any Law shall include all statutory and regulatory  provisions
consolidating, amending, replacing, supplementing or interpreting such Law.

     ARTICLE 2. THE COMMITMENTS AND CREDIT EXTENSIONSARTICLE 3.

     ARTICLE 3.01 Committed Loans .

     Subject to the terms and conditions set forth herein, each Lender severally
agrees to make loans (each such loan, a  "Committed  Loan" or "Loan") to Anixter
from time to time on any Business Day during the period from the Closing Date to
the Maturity Date, in an aggregate  amount not to exceed at any time outstanding
the amount of such Lender's  Commitment;  provided,  however,  that after giving
effect to any Committed Borrowing,  (i) the aggregate  Outstanding Amount of all
Loans  shall  not  exceed  the  Aggregate  Commitments  and (ii)  the  aggregate
Outstanding  Amount of the Committed Loans of any Lender,  shall not exceed such
Lender's Commitment.  Within the limits of each Lender's Commitment, and subject
to the other terms and conditions hereof,  Anixter may borrow under this Section
2.01, prepay under Section 2.03, and reborrow under this Section 2.01. Committed
Loans may be Base Rate Loans or  Eurocurrency  Rate Loans,  as further  provided
herein.

     ARTICLE 3.02 Borrowings, Conversions and Continuations of Committed Loans .

     (a) Each Committed  Borrowing,  each conversion of Committed Loans from one
Type to the other,  and each  continuation  of Committed  Loans as the same Type
shall be made upon Anixter's  irrevocable  notice to the  Administrative  Agent,
which  may be given by  telephone.  Each such  notice  must be  received  by the
Administrative  Agent  not later  than  11:00  a.m.,  New York  time,  (i) three
Business  Days  prior  to the  requested  date of any  Committed  Borrowing  of,
conversion to or continuation of Eurocurrency Rate Loans or of any conversion of
Eurocurrency  Rate Loans to Base Rate Loans,  and (ii) on the requested  date of
any Committed  Borrowing of Base Rate Loans. Each such telephonic notice must be
confirmed  promptly  by  delivery  to  the  Administrative  Agent  of a  written
Committed  Loan  Notice,  appropriately  completed  and signed by a  Responsible
Officer of Anixter.  Each Committed  Borrowing of, conversion to or continuation
of Eurocurrency  Rate Loans shall be in a principal  amount of US$5,000,000 or a
whole multiple of US$1,000,000 in excess thereof. Each Committed Borrowing of or
conversion to Base Rate Loans shall be in a principal  amount of US$500,000 or a
whole  multiple of  US$100,000 in excess  thereof.  Each  Committed  Loan Notice
(whether  telephonic or written) shall specify (i) whether Anixter is requesting
a Committed  Borrowing,  a conversion  of  Committed  Loans from one Type to the
other, or a continuation of Committed Loans as the same Type, (ii) the requested
date of the  Borrowing,  conversion or  continuation,  as the case may be (which
shall be a Business Day),  (iii) the principal  amount of Committed  Loans to be
borrowed,  converted  or  continued,  (iv)  the  Type of  Committed  Loans to be
borrowed or to which existing  Committed  Loans are to be converted,  and (v) if
applicable, the duration of the Interest Period with respect thereto. If Anixter
fails to  specify a Type of  Committed  Loan in a  Committed  Loan  Notice or if
Anixter fails to give a timely notice  requesting a conversion or  continuation,
then the applicable  Committed Loans shall be made or continued as, or converted
to, Base Rate Loans.  Any such automatic  conversion to Base Rate Loans shall be
effective as of the last day of the Interest  Period then in effect with respect
to the applicable  Eurocurrency  Rate Loans. If Anixter requests a Borrowing of,
conversion to, or continuation of Eurocurrency  Rate Loans in any such Committed
Loan Notice,  but fails to specify an Interest Period, it will be deemed to have
specified an Interest Period of one month.

     (b) Following receipt of a Committed Loan Notice, the Administrative  Agent
shall  promptly  notify  each  Lender  of its Pro Rata  Share of the  applicable
Committed  Loans,  and if no timely  notice of a conversion or  continuation  is
provided by Anixter  the  Administrative  Agent shall  notify each Lender of the
details  of any  automatic  conversion  to  Base  Rate  Loans  described  in the
preceding  subsection.  In the case of a Committed Borrowing,  each Lender shall
make the amount of its Committed Loan available to the  Administrative  Agent in
immediately available funds at the Administrative  Agent's Office not later than
1:00 p.m.,  New York time,  on the  Business  Day  specified  in the  applicable
Committed Loan Notice. Upon satisfaction of the applicable  conditions set forth
in Section  4.02 (and,  if such  Borrowing is the initial  Committed  Borrowing,
Section  4.01),  the  Administrative  Agent  shall  make all  funds so  received
available  to Anixter  in like funds as  received  by the  Administrative  Agent
either by (i)  crediting  the account of Anixter on the books of Bank of America
with the amount of such funds or (ii) wire transfer of such funds,  in each case
in accordance with instructions provided to the Administrative Agent by Anixter.

     (c) Except as otherwise  provided herein,  a Eurocurrency  Rate Loan may be
continued  or  converted  only on the last day of the  Interest  Period for such
Eurocurrency  Rate Loan.  During the existence of a Default or Event of Default,
no  Committed  Loans  may  be  requested  as,   converted  to  or  continued  as
Eurocurrency  Rate Loans  without the consent of the Required  Lenders,  and the
Required Lenders may demand that any or all of the then outstanding Eurocurrency
Rate Loans be converted immediately to Base Rate Loans.

     (d) The Administrative  Agent shall promptly notify Anixter and the Lenders
of the interest rate  applicable to any  Eurocurrency  Rate  Committed Loan upon
determination of such interest rate. The  determination of the Eurocurrency Rate
by the  Administrative  Agent  shall be  conclusive  in the  absence of manifest
error.  The  Administrative  Agent shall  notify  Anixter and the Lenders of any
change  in Bank of  America's  prime  rate  used in  determining  the Base  Rate
promptly following the public announcement of such change.

     (e) After giving effect to all Committed  Borrowings,  all  conversions  of
Committed Loans from one Type to the other,  and all  continuations of Committed
Loans as the same Type,  there  shall not be more than ten  Interest  Periods in
effect with respect to Committed Loans.

     ARTICLE 3.03 Prepayments .

     (a) Anixter may, upon notice to the  Administrative  Agent,  at any time or
from time to time voluntarily prepay Committed Loans in whole or in part without
premium or  penalty;  provided  that (i) such  notice  must be  received  by the
Administrative  Agent  not later  than  11:00  a.m.,  New York  time,  (A) three
Business  Days prior to any date of prepayment of  Eurocurrency  Rate  Committed
Loans, and (B) on the date of prepayment of Base Rate Committed Loans;  (ii) any
prepayment of Eurocurrency  Rate Committed Loans shall be in a principal  amount
of US$5,000,000 or a whole multiple of US$1,000,000 in excess thereof; and (iii)
any  prepayment of Base Rate Committed  Loans shall be in a principal  amount of
US$1,000,000  or a whole  multiple of  US$500,000 in excess  thereof.  Each such
notice shall specify the date and amount of such  prepayment  and the Type(s) of
Committed  Loans to be prepaid.  The  Administrative  Agent will promptly notify
each Lender of its receipt of each such  notice,  and of such  Lender's Pro Rata
Share of such prepayment. If such notice is given by Anixter, Anixter shall make
such prepayment and the payment amount specified in such notice shall be due and
payable on the date specified  therein.  Any  prepayment of a Eurocurrency  Rate
Loan shall be accompanied  by all accrued  interest  thereon,  together with any
additional amounts required pursuant to Section 3.05. Each such prepayment shall
be applied  to the  Committed  Loans of the  Lenders  in  accordance  with their
respective Pro Rata Shares.

     (b) If for any  reason  the  Outstanding  Amount  of all  Loans at any time
exceeds the Aggregate Commitments then in effect, the Borrower shall immediately
prepay Loans in an aggregate amount equal to such excess. ARTICLE 3.04 Reduction
or Termination  of Commitments . Anixter may, upon notice to the  Administrative
Agent, terminate the Aggregate Commitments,  or permanently reduce the Aggregate
Commitments to an amount not less than the then Outstanding Amount of all Loans;
provided that (i) any such notice shall be received by the Administrative  Agent
not later than 11:00 a.m.,  five Business Days prior to the date of  termination
or  reduction,  and (ii) any such  partial  reduction  shall be in an  aggregate
amount of  US$1,000,000  or any whole multiple of US$500,000 in excess  thereof.
The Administrative Agent shall promptly notify the Lenders of any such notice of
reduction  or  termination  of  the  Aggregate  Commitments.   Once  reduced  in
accordance  with  this  Section,  the  Commitments  may  not be  increased.  Any
reduction of the  Aggregate  Commitments  shall be applied to the  Commitment of
each Lender according to its Pro Rata Share. All facility fees accrued until the
effective date of any termination of the Aggregate  Commitments shall be paid on
the effective date of such termination.

     ARTICLE 3.05 Repayment of Loans . Anixter shall repay to the Lenders on the
Maturity Date the aggregate  principal amount of Committed Loans  outstanding on
such date.

     ARTICLE 3.06 Interest .

     (a)  Subject  to  the  provisions  of  subsection   (b)  below,   (i)  each
Eurocurrency  Rate  Committed  Loan  shall  bear  interest  on  the  outstanding
principal  amount thereof for each Interest  Period at a rate per annum equal to
the  Eurocurrency  Rate for such Interest Period plus the Applicable  Margin and
(ii) each Base Rate  Committed  Loan  shall  bear  interest  on the  outstanding
principal amount thereof from the applicable  borrowing date at a rate per annum
equal to the Base Rate plus the Applicable Margin.

     (b) While any Event of Default exists or after  acceleration,  the Borrower
shall pay interest on the principal  amount of all outstanding  Obligations at a
fluctuating  interest  rate per annum at all times equal to the Default  Rate to
the fullest extent  permitted by applicable Law.  Accrued and unpaid interest on
past due  amounts  (including  interest on past due  interest)  shall be due and
payable upon demand.

     (c)  Interest  on each Loan  shall be due and  payable  in  arrears on each
Interest  Payment  Date  applicable  thereto  and at such other  times as may be
specified herein. Interest hereunder shall be due and payable in accordance with
the  terms  hereof  before  and  after  judgment,   and  before  and  after  the
commencement of any proceeding under any Debtor Relief Law.

     ARTICLE 3.07 Fees .

     (a) Facility  Fee.  Anixter shall pay to the  Administrative  Agent for the
account of each Lender in  accordance  with its Pro Rata Share,  a facility  fee
equal to the  Applicable  Margin times the actual daily amount of the  Aggregate
Commitments,  regardless  of usage.  The  facility fee shall accrue at all times
from the  Closing  Date  until the  Maturity  Date and shall be due and  payable
quarterly in arrears on the last Business Day of each March, June, September and
December,  commencing  with the first such date to occur after the Closing Date,
and on the Maturity  Date.  The facility  fee shall be  calculated  quarterly in
arrears, and if there is any change in the Applicable Margin during any quarter,
the actual  daily  amount shall be computed  and  multiplied  by the  Applicable
Margin  separately  for each period  during such  quarter  that such  Applicable
Margin was in effect.  The facility fee shall accrue at all times,  including at
any time during which one or more of the conditions in Article IV is not met.

     (b)  Arrangement  and Agency Fees.  Anixter shall pay an arrangement fee to
the Arranger for the Arranger's own account,  and shall pay an agency fee to the
Administrative Agent for the Administrative  Agent's own account, in the amounts
and at the times  specified  in the letter  agreement,  dated July 26, 2000 (the
"Agent/Arranger Fee Letter"), among Anixter, the Arranger and the Administrative
Agent.  Such fees shall be fully earned when paid and shall be nonrefundable for
any reason whatsoever.

     (c) Upfront  Fee.  Anixter  shall pay to the  Administrative  Agent for the
account of each  Lender on the  Closing  Date an upfront fee equal to the amount
provided  for such  Lender  in its  Allocation  Notice.  Such fee shall be fully
earned when paid and shall be nonrefundable for any reason whatsoever.

     ARTICLE 3.08  Computation of Interest and Fees . Computation of interest on
Base Rate  Loans  computed  based on Bank of  America's  "prime  rate"  shall be
calculated  on the basis of a year of 365 or 366 days,  as the case may be,  and
the actual  number of days elapsed.  Computation  of all other types of interest
and all fees  shall  be  calculated  on the  basis of a year of 360 days and the
actual  number of days  elapsed,  which  results in a higher  yield to the payee
thereof than a method based on a year of 365 or 366 days.  Interest shall accrue
on each  Loan for the day on which the Loan is made,  and shall not  accrue on a
Loan, or any portion  thereof,  for the day on which the Loan or such portion is
paid,  provided that any Loan that is repaid on the same day on which it is made
shall bear interest for one day.

     ARTICLE  3.09  Evidence  of Debt . The  Committed  Borrowings  made by each
Lender shall be evidenced by one or more accounts or records  maintained by such
Lender and by the Administrative  Agent in the ordinary course of business.  The
accounts or records maintained by the Administrative Agent and each Lender shall
be conclusive  absent  manifest error of the amount of the Committed  Borrowings
made by the Lenders to the Borrower and the interest and payments  thereon.  Any
failure  so to  record  or any error in doing so shall  not,  however,  limit or
otherwise  affect the  obligation  of the  Borrower  hereunder to pay any amount
owing with  respect  to the  Loans.  In the event of any  conflict  between  the
accounts  and records  maintained  by any Lender and the accounts and records of
the Administrative Agent in respect of such matters, the accounts and records of
such Lender  shall  control.  Upon the  request of any Lender  made  through the
Administrative  Agent,  such Lender's Loans may be evidenced by a Committed Loan
Note, in addition to such accounts or records.  Each Lender may attach schedules
to  its  Committed  Loan  Note(s)  and  endorse   thereon  the  date,  Type  (if
applicable),  amount and  maturity of the  applicable  Loans and  payments  with
respect thereto.

     ARTICLE 3.010 Payments Generally .

     (a) All payments to be made by the Borrower shall be made without condition
or deduction for any  counterclaim,  defense,  recoupment  or setoff.  Except as
otherwise  expressly  provided  herein,  all payments by the Borrower  hereunder
shall be made to the  Administrative  Agent,  for the account of the  respective
Lenders to which such payment is owed, at the  Administrative  Agent's Office in
Dollars and in immediately  available  funds not later than 12:00 noon, New York
time,  on the date  specified  herein.  The  Administrative  Agent will promptly
distribute  to each  Lender  its Pro Rata  Share (or other  applicable  share as
provided  herein) of such payment in like funds as received by wire  transfer to
such Lender's Lending Office. All payments received by the Administrative  Agent
after 12:00 noon, New York time, shall be deemed received on the next succeeding
Business Day and any applicable interest or fee shall continue to accrue.

     (b) Subject to the  definition  of "Interest  Period," if any payment to be
made by the Borrower shall come due on a day other than a Business Day,  payment
shall be made on the next  following  Business  Day, and such  extension of time
shall be reflected in computing interest or fees, as the case may be.

     (c) If at any time insufficient  funds are received by and available to the
Administrative  Agent to pay fully all amounts of  principal,  interest and fees
then due  hereunder,  such funds  shall be applied (i) first,  toward  costs and
expenses  (including  Attorney  Costs and amounts  payable  under  Article  III)
incurred  by the  Administrative  Agent and each  Lender,  (ii)  second,  toward
repayment of interest  and fees then due  hereunder,  ratably  among the parties
entitled thereto in accordance with the amounts of interest and fees then due to
such parties, and (iii) third, toward repayment of principal then due hereunder,
ratably among the parties  entitled  thereto in  accordance  with the amounts of
principal then due to such parties.

     (d) Unless the Borrower or any Lender has notified the Administrative Agent
prior to the date any payment is required to be made by it to the Administrative
Agent hereunder,  that the Borrower or such Lender, as the case may be, will not
make such payment, the Administrative Agent may assume that the Borrower or such
Lender,  as the case may be, has timely made such payment and may (but shall not
be so required to), in reliance thereon,  make available a corresponding  amount
to the Person entitled  thereto.  If and to the extent that such payment was not
in fact made to the Administrative Agent in immediately available funds, then:

     (i) if the  Borrower  failed  to  make  such  payment,  each  Lender  shall
forthwith  on  demand  repay to the  Administrative  Agent the  portion  of such
assumed payment that was made available to such Lender in immediately  available
funds,  together with interest thereon in respect of each day from the date such
amount was made available by the Administrative Agent to such Lender to the date
such  amount is  repaid to the  Administrative  Agent in  immediately  available
funds, at the Federal Funds Rate from time to time in effect; and

     (ii) if any Lender failed to make such payment, such Lender shall forthwith
on demand  pay to the  Administrative  Agent the amount  thereof in  immediately
available  funds,  together with  interest  thereon for the period from the date
such amount was made  available by the  Administrative  Agent to the Borrower to
the date such amount is recovered by the Administrative Agent (the "Compensation
Period") ------------------- at a rate per annum equal to the Federal Funds Rate
from  time  to  time  in  effect.  If  such  Lender  pays  such  amount  to  the
Administrative  Agent, then such amount shall constitute such Lender's Committed
Loan included in the applicable Committed Borrowing. If such Lender does not pay
such amount  forthwith  upon the  Administrative  Agent's demand  therefor,  the
Administrative  Agent  may make a demand  therefor  upon the  Borrower,  and the
Borrower  shall  pay such  amount to the  Administrative  Agent,  together  with
interest  thereon for the  Compensation  Period at a rate per annum equal to the
rate of interest applicable to the applicable Borrowing. Nothing herein shall be
deemed to relieve any Lender from its obligation to fulfill its Commitment or to
prejudice  any rights  which the  Administrative  Agent or the Borrower may have
against any Lender as a result of any default by such Lender hereunder.

     A notice of the  Administrative  Agent to any  Lender  with  respect to any
amount owing under this  subsection  (d) shall be  conclusive,  absent  manifest
error.

     Upon any Lender  failing to make such  payment  required to be made by such
Lender  under this  Agreement,  Anixter  may remove or  replace  such  Lender in
accordance with Section 10.16.

     (e) If any Lender makes available to the Administrative Agent funds for any
Loan to be made by such Lender as provided in the  foregoing  provisions of this
Article II, and the conditions to the applicable  Committed  Borrowing set forth
in Article IV are not satisfied or waived in  accordance  with the terms hereof,
the  Administrative  Agent  shall  promptly  return such funds (in like funds as
received from such Lender) to such Lender, without interest.

     (f) The  obligations of the Lenders  hereunder to make Committed  Loans are
several and not joint.  The failure of any Lender to make any Committed  Loan or
to fund any such  participation on any date required hereunder shall not relieve
any other Lender of its  corresponding  obligation to do so on such date, and no
Lender shall be  responsible  for the failure of any other Lender to so make its
Committed Loan or purchase its participation.

     (g) Nothing  herein  shall be deemed to  obligate  any Lender to obtain the
funds  for any  Loan in any  particular  place  or  manner  or to  constitute  a
representation  by any Lender that it has  obtained or will obtain the funds for
any Loan in any particular place or manner.

     ARTICLE  3.011  Sharing of Payments . If, other than as expressly  provided
elsewhere  herein,  any Lender  shall obtain on account of the Loans made by it,
any payment (whether voluntary,  involuntary,  through the exercise of any right
of  set-off,  or  otherwise)  in excess  of its  ratable  share (or other  share
contemplated  hereunder)  thereof,  such Lender shall immediately (a) notify the
Administrative  Agent of such fact, and (b) purchase from the other Lenders such
participations  in such Loans made by them as shall be  necessary  to cause such
purchasing  Lender to share the  excess  payment in respect of such Loan or such
participations,  as the  case  may be,  pro rata  with  each of them;  provided,
however,  that  if all or any  portion  of such  excess  payment  is  thereafter
recovered  from the  purchasing  Lender,  such purchase  shall to that extent be
rescinded  and each  other  Lender  shall  repay to the  purchasing  Lender  the
purchase  price paid  therefor,  together  with an amount  equal to such  paying
Lender's  ratable share  (according to the  proportion of (i) the amount of such
paying  Lender's  required  repayment to (ii) the total amount so recovered from
the  purchasing  Lender) of any  interest or other amount paid or payable by the
purchasing  Lender in respect of the total  amount so  recovered.  The  Borrower
agrees that any Lender so purchasing a participation from another Lender may, to
the  fullest  extent  permitted  by law,  exercise  all its  rights  of  payment
(including  the right of set-off,  but subject to Section 10.09) with respect to
such  participation  as fully as if such Lender were the direct  creditor of the
Borrower in the amount of such participation. The Administrative Agent will keep
records (which shall be conclusive and binding in the absence of manifest error)
of participations  purchased under this Section and will in each case notify the
Lenders following any such purchases or repayments. Each Lender that purchases a
participation  pursuant to this Section  shall from and after such purchase have
the  right  to  give  all  notices,  requests,  demands,  directions  and  other
communications  under  this  Agreement  with  respect  to  the  portion  of  the
Obligations  purchased to the same extent as though the  purchasing  Lender were
the original owner of the Obligations purchased.

     ARTICLE  3.012  Term Out  Option . Not  earlier  than 60 days  prior to the
Maturity Date, Anixter may, upon notice to the  Administrative  Agent (who shall
promptly  notify  the  Lenders),  effect an  extension  (one  time  only) of the
scheduled  Maturity  Date to a date not more  than  364 days  from the  existing
scheduled  Maturity Date (such extended period being herein called the "Term Out
Period").  No additional  Committed  Borrowings  may be made during the Term Out
Period.  The  Applicable  Margin shall be increased by 0.25% during the Term Out
Period as provided in the definition of Applicable  Margin.  The  Administrative
Agent and Anixter shall  promptly  confirm to the Lenders such  extension of the
scheduled  Maturity Date. As a condition  precedent to such  extension,  Anixter
shall deliver to the Administrative Agent a certificate of each Loan Party dated
as of the  original  scheduled  Maturity  Date (in  sufficient  copies  for each
Lender)  signed by a Responsible  Officer of such Loan Party (i)  certifying and
attaching the resolutions  adopted by such Loan Party approving or consenting to
such extension and, (ii) certifying that, before and after giving effect to such
extension,  the representations  and warranties  contained in Article V are true
and correct on and as of the original  scheduled Maturity Date and no Default or
Event of Default exists.

     ARTICLE 4. TAXES, YIELD PROTECTION AND ILLEGALITY

     ARTICLE 4.01 Taxes .

     (a) Any and all  payments  by the  Borrower  to or for the  account  of the
Administrative  Agent or any Lender under any Loan  Document  shall be made free
and clear of and  without  deduction  for any and all  present or future  taxes,
duties, levies, imposts, deductions,  assessments, fees, withholdings or similar
charges, and all liabilities with respect thereto, excluding, in the case of the
Administrative  Agent and each Lender,  taxes  imposed on or measured by its net
income,  and franchise taxes imposed on it (in lieu of net income taxes), by the
jurisdiction (or any political  subdivision thereof) under the Laws of which the
Administrative  Agent  or such  Lender,  as the  case may be,  is  organized  or
maintains  a  lending  office  (all such  non-excluded  taxes,  duties,  levies,
imposts,  deductions,  assessments,  fees,  withholdings or similar charges, and
liabilities being hereinafter referred to as "Taxes").  If the Borrower shall be
required  by any Laws to deduct any Taxes from or in respect of any sum  payable
under any Loan Document to the  Administrative  Agent or any Lender, (i) the sum
payable  shall be  increased  as  necessary  so that after  making all  required
deductions  (including  deductions  applicable to additional  sums payable under
this Section), the Administrative Agent and such Lender receives an amount equal
to the sum it would have  received had no such  deductions  been made,  (ii) the
Borrower  shall  make such  deductions,  (iii) the  Borrower  shall pay the full
amount  deducted  to the  relevant  taxation  authority  or other  authority  in
accordance with applicable  Laws, and (iv) within 30 days after the date of such
payment,  the Borrower  shall furnish to the  Administrative  Agent (which shall
forward the same to such Lender) the  original or a certified  copy of a receipt
evidencing payment thereof.

     (b) In addition,  the Borrower  agrees to pay any and all present or future
stamp,  court or  documentary  taxes and any other  excise or property  taxes or
charges or similar  levies  which  arise  from any  payment  made under any Loan
Document  or  from  the  execution,   delivery,   performance,   enforcement  or
registration  of, or otherwise  with respect to, any Loan Document  (hereinafter
referred to as "Other Taxes").

     (c) If the  Borrower  shall be required to deduct or pay any Taxes or Other
Taxes from or in  respect  of any sum  payable  under any Loan  Document  to the
Administrative  Agent  or  any  Lender,  the  Borrower  shall  also  pay  to the
Administrative  Agent (for the account of such Lender) or to such Lender, at the
time  interest is paid,  such  additional  amount that such Lender  specifies as
necessary  to  preserve  the  after-tax  yield  (after  factoring  in all taxes,
including  taxes  imposed on or measured by net income)  such Lender  would have
received if such Taxes or Other Taxes had not been imposed.

     (d) The Borrower  agrees to  indemnify  the  Administrative  Agent and each
Lender for (i) the full amount of Taxes and Other Taxes  (including any Taxes or
Other Taxes  imposed or asserted by any  jurisdiction  on amounts  payable under
this Section)  paid by the  Administrative  Agent and such Lender,  (ii) amounts
payable under  Section  3.01(c) and (iii) any  liability  (including  penalties,
interest and expenses) arising  therefrom or with respect thereto,  in each case
whether or not such Taxes or Other Taxes were  correctly  or legally  imposed or
asserted by the relevant Governmental  Authority.  Payment under this subsection
(d) shall be made within 30 days after the date the Lender or the Administrative
Agent makes a demand therefor. With respect to such deduction or withholding for
or on account of Taxes and to confirm  that all such Taxes have been paid to the
appropriate  Governmental  Authorities,  the Borrower shall promptly (and in any
event not later  than 30 days  after  receipt)  furnish  to each  Lender and the
Administrative  Agent such certificates,  receipts and other documents as may be
required  (in the  judgment  of such Lender or the Agent) to  establish  any tax
credit to which such Lender or the  Administrative  Agent may be entitled.  If a
Lender or the  Administrative  Agent shall  become  aware that it is entitled to
receive  a refund  in  respect  of Taxes or Other  Taxes as to which it has been
indemnified  by the Borrower  pursuant to this Section 3.01,  it shall  promptly
notify  Anixter  of such  refund and  shall,  within 30 days after  receipt of a
request  by  Anixter  (or  promptly  upon  receipt,  if  Anixter  has  requested
application for such refund pursuant hereto),  repay such refund to the Borrower
(to the extent of amounts that have been paid by the Borrower under this Section
3.01 with respect to such refund and to the extent such refund has been received
by such Lender or the Administrative  Agent), net of all out-of-pocket  expenses
of such Lender and without  interest  (except to the extent such refund includes
any  interest);  provided that the Borrower,  upon the request of such Lender or
the Agent,  agrees to return  such  refund  (plus  penalties,  interest or other
charges)  to such  Lender  or the  Administrative  Agent if such  Lender  or the
Administrative Agent is required to repay such refund. Nothing contained in this
clause  (d)  shall  require  any  Lender  or the  Administrative  Agent  to make
available any of its tax returns (or any other information relating to its taxes
which it deems to be confidential).

     ARTICLE 4.02 Illegality . If any Lender determines that any Law has made it
unlawful,  or that any Governmental  Authority has asserted that it is unlawful,
for any  Lender  or its  applicable  Lending  Office to make,  maintain  or fund
Eurocurrency Rate Loans, or materially restricts the authority of such Lender to
purchase or sell, or to take deposits of, US Dollars in the applicable  offshore
US Dollar  market,  or to  determine  or charge  interest  rates  based upon the
Eurocurrency Rate, then, on notice thereof by such Lender to Anixter through the
Administrative  Agent,  any  obligation  of such  Lender  to  make  or  continue
Eurocurrency  Rate Loans or to convert Base Rate Committed Loans to Eurocurrency
Rate  Committed  Loans  shall  be  suspended  until  such  Lender  notifies  the
Administrative  Agent and  Anixter  that the  circumstances  giving rise to such
determination no longer exist. Upon receipt of such notice,  the Borrower shall,
upon demand from such Lender (with a copy to the Administrative  Agent),  prepay
or, if applicable,  convert all  Eurocurrency  Rate Loans of such Lender to Base
Rate  Loans,  either on the last day of the  Interest  Period  thereof,  if such
Lender may lawfully  continue to maintain such  Eurocurrency  Rate Loans to such
day, or immediately,  if such Lender may not lawfully  continue to maintain such
Eurocurrency  Rate Loans.  Upon any such prepayment or conversion,  the Borrower
shall also pay  interest  on the amount so prepaid  or  converted.  Each  Lender
agrees to designate a different  Lending Office if such  designation  will avoid
the need for such  notice  and will  not,  in the good  faith  judgment  of such
Lender, otherwise be materially disadvantageous to such Lender.

     ARTICLE 4.03  Inability to Determine  Rates . If the  Administrative  Agent
determines (or in the case of clause (c) below, the Required Lenders  determine)
in connection  with any request for a Eurocurrency  Rate Loan or a conversion to
or  continuation  thereof that (a) US Dollar  deposits are not being  offered to
banks in the applicable  offshore US Dollar market for the applicable amount and
Interest  Period of such  Eurocurrency  Rate Loan,  (b) adequate and  reasonable
means do not exist for determining the Eurocurrency  Rate for such  Eurocurrency
Rate Loan, or (c) the Eurocurrency Rate for such Eurocurrency Rate Loan does not
adequately and fairly  reflect the cost to the Required  Lenders of funding such
Eurocurrency  Rate Loan, the  Administrative  Agent will promptly notify Anixter
and all Lenders.  Thereafter,  the obligation of the Lenders to make or maintain
Eurocurrency  Rate  Loans  shall be  suspended  until the  Administrative  Agent
revokes  such notice.  Upon receipt of such notice,  the Borrower may revoke any
pending  request  for a  Committed  Borrowing,  conversion  or  continuation  of
Eurocurrency  Rate Loans or, failing that, will be deemed to have converted such
request  into a request  for a  Committed  Borrowing  of Base Rate  Loans in the
amount specified therein.

     ARTICLE 4.04 Increased Cost and Reduced Return; Capital Adequacy;  Reserves
on Eurocurrency Rate Loans .

     (a) If any Lender determines that as a result of the introduction of or any
change  in or in the  interpretation  of any Law,  or such  Lender's  compliance
therewith,  there shall be any  material  increase in the cost to such Lender of
agreeing  to make or  making,  funding or  maintaining  applicable  Loans,  or a
material  reduction  in the amount  received  or  receivable  by such  Lender in
connection with any of the foregoing  (excluding for purposes of this subsection
(a) any such increased costs or reduction in amount  resulting from (i) Taxes or
Other Taxes (as to which Section 3.01 shall  govern),  (ii) changes in the basis
of taxation of overall net income or overall  gross income by the United  States
or any foreign jurisdiction or any political subdivision of either thereof under
the Laws of which such Lender is organized or has its Lending Office,  and (iii)
reserve requirements), then from time to time upon demand of such Lender (with a
copy of such demand to the Administrative Agent), the Borrower shall pay to such
Lender such additional amounts as will compensate such Lender for such increased
cost or reduction.

     (b) If any Lender  determines  that the  introduction  of any Law regarding
capital  adequacy or any change  therein or in the  interpretation  thereof,  or
compliance by such Lender (or its Lending Office)  therewith,  has the effect of
materially  reducing  the rate of return on the  capital  of such  Lender or any
corporation   controlling   such  Lender  as  a  consequence  of  such  Lender's
obligations  hereunder  (taking into  consideration its policies with respect to
capital  adequacy),  then from time to time upon demand of such  Lender  (with a
copy of such demand to the Administrative Agent), the Borrower shall pay to such
Lender  such  additional  amounts  as  will  compensate  such  Lender  for  such
reduction.

     (c) The Borrower shall pay to each Lender,  as long as such Lender shall be
required  under  regulations  of the Board to maintain  reserves with respect to
liabilities or assets consisting of or including  Eurocurrency funds or deposits
(currently known as "Eurocurrency liabilities"),  additional costs on the unpaid
principal  amount of each  Eurocurrency  Rate Loan to the Borrower  equal to the
actual  costs  of such  reserves  allocated  to such  Loan  by such  Lender  (as
determined  by  such  Lender  in  good  faith,  which   determination  shall  be
conclusive),  which shall be due and  payable on each date on which  interest is
payable on such Loan,  provided  the  Borrower  shall have  received at least 15
days' prior notice (with a copy to the Administrative  Agent) of such additional
interest from such Lender. If a Lender fails to give notice 15 days prior to the
relevant  Interest  Payment  Date,  such  additional  interest  shall be due and
payable 15 days from receipt of such notice.

     ARTICLE  4.05 Funding  Losses . Upon  written  demand of any Lender (with a
copy to the Administrative Agent) from time to time, the Borrower shall promptly
compensate  such Lender for and hold such Lender harmless from any loss, cost or
expense incurred by it as a result of:

     (a) any continuation,  conversion, payment or prepayment of any Loan of the
Borrower  other  than a Base Rate  Loan on a day other  than the last day of the
Interest  Period for such Loan  (whether  voluntary,  mandatory,  automatic,  by
reason of acceleration, or otherwise);

     (b) any  failure by the  Borrower  (for a reason  other than the failure of
such  Lender to make a Loan) to prepay,  borrow,  continue  or convert  any Loan
other  than a Base  Rate  Loan on the  date  or in the  amount  notified  by the
Borrower; or

     (c) any assignment of a Eurocurrency Rate Loan on a day other than the last
day of the  Interest  Period  therefor as a result of a request by the  Borrower
pursuant to Section 10.16.

     Such  compensation  shall include an amount equal to the excess, if any, as
reasonably determined by such Lender, of (i) its cost of obtaining the funds for
the Loan being paid, prepaid, refinanced or not borrowed (which in the case of a
Eurocurency  Rate Loan will be assumed to be the  Eurocurrency  Rate  applicable
thereto) for the period from the date of such payment,  prepayment,  refinancing
or failure to borrow or  refinance  to the last day of the  Interest  Period for
such Loan (or,  in the case of a failure to borrow or  refinance,  the  Interest
Period for such Loan which  would have  commenced  on the date of such  failure)
over (ii) the amount of interest (as reasonably  determined by such Lender) that
would be realized by such Lender in  reemploying  the funds so paid,  prepaid or
not borrowed or refinanced for such period or Interest  Period,  as the case may
be.  The  Borrower  shall  pay  each  Lender  the  amount  shown  as  due on any
certificate  delivered by such Lender claiming such compensation within ten (10)
Business Days after the Borrower's  receipt of the same. The Borrower shall also
pay any customary  administrative fees charged by such Lender in connection with
the foregoing.

     For purposes of calculating  amounts payable by the Borrower to the Lenders
under  this  Section  3.05,  each  Lender  shall be deemed to have  funded  each
Eurocurrency  Rate Committed Loan made by it at the  Eurocurrency  Rate for such
Loan by a matching  deposit or other  borrowing  in the  applicable  offshore US
Dollar  interbank  market for a comparable  amount and for a comparable  period,
whether  or not such  Eurocurrency  Rate  Committed  Loan was in fact so funded.
ARTICLE 4.06 Matters Applicable to all Requests for Compensation .

     (a) A  certificate  of the  Administrative  Agent  or any  Lender  claiming
compensation  under this Article III and setting forth the additional  amount or
amounts  to be paid to it  hereunder  shall  be  conclusive  in the  absence  of
manifest error.  Such certificate  shall provide in reasonable detail the amount
payable and the calculations  used to determine such amount. In determining such
amount, the Administrative Agent or such Lender may use any reasonable averaging
and attribution methods.

     (b) Upon any Lender's making a claim for compensation under Section 3.01 or
Section  3.04,  Anixter  may remove or replace  such Lender in  accordance  with
Section 10.16.

     (c) Any Lender claiming any additional  amounts payable pursuant to Section
3.01 or Section  3.04, or  exercising  its rights under Section 3.02,  shall use
reasonable efforts  (consistent with legal and regulatory  restrictions) to file
any  certificate  or document  reasonably  requested by Anixter or to change the
jurisdiction  of its  Lending  Office  if the  making of such a filing or change
would  avoid the need for or reduce  the amount of any such  additional  amounts
which  may  thereafter  accrue or avoid the  circumstances  giving  rise to such
exercise and would not, in the sole  determination of such Lender,  be otherwise
disadvantageous to such Lender.

     (d) If any Lender  fails to notify  Anixter  and the  Administrative  Agent
within 120 days of its actual knowledge of any such additional amount payable by
the Borrower pursuant to Section 3.01 or 3.04(a) or (b) (the "Notice Date"), the
Borrower shall not be obligated to pay such additional  amounts  accruing during
the period  from the  Notice  Date until the date of  delivery  of such  notice,
provided,  further,  that the failure to give such  notice  shall not affect the
Borrower's obligation to pay such additional amounts accrued prior to the Notice
Date or after delivery of such notice.

     ARTICLE  4.07  Survival  . All of the  Borrower's  obligations  under  this
Article III shall survive  termination of the Commitments and payment in full of
all the other Obligations.

     ARTICLE 5. CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

ARTICLE 5.01 Conditions of Initial Committed  Borrowing . The obligation of each
     Lender to make its initial Committed Borrowing hereunder is subject to
satisfaction of the following conditions precedent:

     (a) Unless waived by all the Lenders, the Administrative Agent's receipt of
the following, each of which shall be originals or facsimiles (followed promptly
by  originals)  unless  otherwise   specified,   each  properly  executed  by  a
Responsible  Officer of the signing Loan Party, each dated the Closing Date (or,
in the case of certificates of governmental  officials, a recent date before the
Closing Date) and each in form and substance  satisfactory to the Administrative
Agent  and its legal  counsel:  (i)  executed  counterparts  of this  Agreement,
sufficient in number for distribution to the  Administrative  Agent, each Lender
and the Borrower;

     (ii)  Committed Loan Notes executed by the Borrower in favor of each Lender
requesting such a Committed Loan Note, each in a principal  amount equal to such
Lender's Commitment;

     (iii)  such  certificates  of  resolutions  or  other  action,   incumbency
certificates  and/or other  certificates  of  Responsible  Officers of each Loan
Party as the Administrative Agent may require to establish the identities of and
verify the authority and capacity of each Responsible Officer thereof authorized
to act as a Responsible  Officer in connection  with the Loan Documents to which
such  Loan  Party  is a  party  and  authorizing  the  execution,  delivery  and
performance by such Loan Party of the Loan Documents to which such Loan Party is
a party;

     (iv) such evidence as the  Administrative  Agent may reasonably  require to
verify that each Loan Party is duly organized or formed, validly existing and in
good  standing  under the laws of its  jurisdiction  of formation (to the extent
applicable  in such  jurisdiction),  including  certified  copies  of each  Loan
Party's Organization  Documents and certificate of good standing (if applicable)
and tax clearance certificates;

     (v)  a  certificate  signed  by  a  Responsible  Officer  of  the  Borrower
certifying  (A) that the conditions  specified in Sections  4.02(a) and (b) have
been satisfied,  (B) that there has been no event or circumstance since the date
of the Audited Financial Statements which has or could be reasonably expected to
have a Material Adverse Effect; and (C) the current Debt Ratings;

     (vi) an opinion of counsel to each Loan Party  substantially in the form of
Exhibit H;

     (vii) evidence that the Existing Credit  Agreement has been or concurrently
with  the  Closing  Date is being  terminated  and all  outstanding  obligations
thereunder have been paid or are being paid in full; and

     (viii) such other assurances, certificates, documents, consents or opinions
as the Administrative Agent or the Required Lenders reasonably may require.

     (b) Any fees  required to be paid on or before the Closing  Date shall have
been paid.

     ARTICLE 5.02  Conditions  to all Committed  Borrowings . The  obligation of
each Lender to honor any Request  for Credit  Extension  (other than a Committed
Loan Notice  requesting  only a conversion of Committed Loans to the other Type,
or a  continuation  of  Committed  Loans as the same  Type)  is  subject  to the
following conditions precedent:

     (a) The representations and warranties of the Borrower contained in Article
V, or which are  contained  in any  document  furnished  at any time under or in
connection  herewith,  shall be true and correct in all material respects on and
as of the date of such  Committed  Borrowing,  except  to the  extent  that such
representations  and warranties  specifically refer to an earlier date, in which
case they shall be true and correct as of such earlier date.

     (b) No Default or Event of Default  shall exist,  or would result from such
proposed Committed Borrowing.

     (c) The  Administrative  Agent shall have  received a Request for Committed
Borrowing in accordance with the requirements hereof.

     (d) The  Administrative  Agent shall have  received,  in form and substance
satisfactory to it, such other assurances,  certificates,  documents or consents
related to the  foregoing as the  Administrative  Agent or the Required  Lenders
reasonably may require.

     Each  Request for Credit  Extension  (other  than a  Committed  Loan Notice
requesting  only a  conversion  of  Committed  Loans  to  the  other  Type  or a
continuation  of  Committed  Loans as the same Type)  submitted  by the Borrower
shall  be  deemed  to be a  representation  and  warranty  that  the  conditions
specified in Sections  4.02(a) and (b) have been satisfied on and as of the date
of the applicable Committed Borrowing.

     ARTICLE 6. REPRESENTATIONS AND WARRANTIES

     The Borrower  represents and warrants to the  Administrative  Agent and the
Lenders that:

     ARTICLE  6.01  Organization;  Corporate  Powers  . AXE,  Anixter  and  each
Subsidiary of Anixter (i) is a corporation duly organized,  validly existing and
in good standing under the laws of the jurisdiction of its organization, (ii) is
duly qualified to do business as a foreign  corporation  and is in good standing
under the laws of each  jurisdiction in which it owns or leases real property or
in which the nature of its business requires it to be so qualified, except those
jurisdictions  where the failure to be in good standing or to so qualify has not
had or could not reasonably be expected to have a Material  Adverse Effect,  and
(iii) has all  requisite  corporate  power and  authority  to own,  operate  and
encumber  its  property  and assets and to conduct  its  business  as  presently
conducted and as proposed to be conducted in  connection  with and following the
consummation of the transactions contemplated by the Transaction Documents.

     ARTICLE 6.02 Authority .

     (a)  AXE,  Anixter  and  each  Subsidiary  of  Anixter  party to any of the
Transaction  Documents  has the  requisite  corporate  power  and  authority  to
execute,  deliver  and  perform its  obligations  under each of the  Transaction
Documents  executed by it, or to be executed by it. (b) The execution,  delivery
and  performance  (or  filing or  recording,  as the case may be) of each of the
Transaction   Documents  to  which  its  party  and  the   consummation  of  the
transactions  contemplated  thereby,  have been duly authorized by all necessary
corporate  action on the part of AXE,  Anixter  and each  Subsidiary  of Anixter
party thereto and no other corporate  proceedings on the part of any such Person
are necessary to consummate such transactions.

     (c) Each of the Transaction  Documents to which it is a party has been duly
executed  and  delivered  (or  filed  or  recorded,  as the case may be) by AXE,
Anixter and each  Subsidiary of Anixter party  thereto,  constitutes  its legal,
valid and binding  obligations,  enforceable  against it in accordance  with its
terms  (except  as  enforceabiltiy  may be  limited  by  applicable  bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the enforcement
of creditors' rights generally and by general equitable  principles),  and is in
full force and effect (unless terminated in accordance with the terms thereof).

     ARTICLE 6.03  Subsidiaries . Anixter has no  Subsidiaries  other than those
described in Schedule  5.03 and those,  if any,  which are  permitted by Section
7.03 to be created after the Closing Date.

     ARTICLE 6.04 No Conflict . The execution,  delivery and performance of each
Transaction Document to which it is party by AXE, Anixter and each Subsidiary of
Anixter and each of the transactions  contemplated  thereby, do not and will not
(i) conflict with any Contractual  Obligation of any such Person,  any liability
resulting  from  which  would  have or could be  reasonably  expected  to have a
Material  Adverse  Effect,  or (ii)  conflict  with  or  violate  such  Person's
certificate  or  articles  of  incorporation  or by-laws or similar  charter and
constituting  documents, or (iii) except as set forth on Schedule 5.04, conflict
with,  result in a breach of or constitute  (with or without  notice or lapse of
time or both) a default under any  Requirement of Law or Contractual  Obligation
of any such Person, or require termination of any Contractual  Obligation of any
such Person, or (iv) result in or require the creation or imposition of any Lien
whatsoever  upon any of the  properties or assets of any such Person (other than
Liens  permitted  pursuant to Section  7.02(b)),  or (v) require any approval of
stockholders of any such Person, unless such approval has been obtained.

     ARTICLE  6.05   Governmental   Consents  .  The  execution,   delivery  and
performance of each Transaction  Document to which it is a party by AXE, Anixter
and each Subsidiary of Anixter, and the transactions contemplated thereby do not
and will not require any  registration  with,  consent or approval of, or notice
to, or other  action with or by, any  Governmental  Authority,  except  filings,
consents  or notices  which have been  made,  obtained  or given and are in full
force and effect.

     ARTICLE 6.06  Governmental  Regulation . Neither AXE nor Anixter nor any of
Anixter's  Subsidiaries  is  subject  to  regulation  under the  Public  Utility
Holdings  Company Act of 1935,  the Federal Power Act, the  Interstate  Commerce
Act, the  Investment  Company Act of 1940 or any other  statute or regulation of
any  Governmental  Authority  such that its  ability  to incur  indebtedness  is
limited or its ability to consummate the transactions  contemplated hereby or by
the other Transaction Documents is materially impaired.

     ARTICLE 6.07 Financial Position .

     (a) As of the Closing Date, all quarterly and annual  financial  statements
of  Anixter  or of  Anixter  and  any  of  its  Subsidiaries  delivered  to  the
Administrative   Agent  and  the  Lenders   (including  the  Audited   Financial
Statements)  were  prepared in conformity  with GAAP (except as otherwise  noted
therein)  and  fairly   present  the  financial   position  of  Anixter  or  the
consolidated  financial position of Anixter and such  Subsidiaries,  as the case
may be, as at the  respective  dates thereof and the results of  operations  and
changes in cash flows for each of the periods covered thereby,  subject,  in the
case of any unaudited  interim  financial  statements to changes  resulting from
audit and normal year-end adjustments.

     (b) All quarterly and annual financial  statements of Anixter or of Anixter
and any of its Subsidiaries delivered to the Administrative Agent on or prior to
the date this  representation is made or deemed made were prepared in conformity
with GAAP (except as otherwise  noted  there) and fairly  present the  financial
position of Anixter or the consolidated  financial  position of Anixter and such
Subsidiaries,  as the case may be as at the  respective  dates  thereof  and the
results of operations and changes in cash flows for each of the periods  covered
thereby,  subject, in the case of any unaudited interim financial statements, to
changes resulting from audit and normal year-end adjustments.

     ARTICLE 6.08 Litigation; Adverse Effects .

     (a)  Except  as set  forth  in  Schedule  5.08  there is no  action,  suit,
proceeding, investigation of any Governmental Authority or arbitration at law or
in equity, or before or by any Governmental Authority,  pending, or, to the best
knowledge of the Borrower,  threatened against AXE, Anixter or any Subsidiary of
Anixter or any Property of any of them,  which could be  reasonably  expected to
result in any Material Adverse Effect.

     (b)  Neither  AXE nor  Anixter  nor any  Subsidiary  of  Anixter  is (A) in
violation of any  applicable  law which  violation  has or could  reasonably  be
expected to have a Material Adverse Effect, or (B) subject to or in default with
respect  to any  final  judgment,  writ,  injunction,  decree,  order,  rule  or
regulation of any court or Governmental  Authority which has or could reasonably
be  expected  to have a  Material  Adverse  Effect.  There is no  action,  suit,
proceeding  or  investigation  pending  or, to the  knowledge  of the  Borrower,
threatened  against or affecting AXE, Anixter or any Subsidiary of Anixter which
challenges  the  validity  or the  enforceability  of  any  of  the  Transaction
Documents.

     ARTICLE  6.09 No  Material  Adverse  Change . With  respect to each of AXE,
Anixter and Anixter and its Subsidiaries taken as a whole, there has occurred no
event since December 31, 1999 which has or could  reasonably be expected to have
a Material Adverse Effect.

     ARTICLE 6.010 Payment of Taxes . All United States Federal income and other
material tax returns and reports of the Borrower and the Borrower's Subsidiaries
required  to be filed  (including  extensions)  have been  timely  filed and all
taxes, assessments, fees and other charges of Governmental Authorities thereupon
and upon their respective  properties,  assets,  income and franchises which are
shown on such  returns  as being  due and  payable,  have been paid when due and
payable,  except  (i)  taxes  being  contested  in  good  faith  by  appropriate
proceedings  and that are reserved  against in accordance  with GAAP, (ii) taxes
which are not yet  delinquent,  (iii) taxes which are payable in installments so
long as paid  before any penalty  accrues  with  respect  thereto and (iv) other
taxes, assessments,  fees and other charges or Governmental Authorities which do
not exceed  US$250,000  in the  aggregate.  Except as set forth in  clauses  (i)
through (iv) above, the Borrower has no knowledge of any proposed tax assessment
against  Anixter or any of  Anixter's  Subsidiaries  which could  reasonably  be
expected to have a Material Adverse Effect.

     ARTICLE 6.011  Performance . Neither AXE nor Anixter nor any  Subsidiary of
Anixter is in default in the performance, observance or fulfilment of any of the
obligations,  covenants or conditions  contained in any  Contractual  Obligation
applicable  to it the effect of which  could  reasonably  be  expected to have a
Material  Adverse  Effect,  and no condition  exists  which,  with the giving of
notice or the lapse of time or both,  would  constitute  a  default  under  such
Contractual  Obligation,  except where the consequences,  direct or indirect, of
such default or defaults,  if any,  would not have and could not  reasonably  be
expected to have a Material Adverse Effect.

     ARTICLE  6.012  Securities  Activities . Neither AXE nor Anixter nor any of
Anixter's  Subsidiaries  is engaged in the business of extending  credit for the
purpose of purchasing  or carrying any Margin Stock and none will use,  directly
or indirectly, the proceeds of any Loan to purchase or carry Margin Stock.

     ARTICLE 6.013  Disclosure . Subject to changes in facts or conditions which
are  required  or  permitted  under  this  Agreement,  the  representations  and
warranties of AXE, the Borrower and each Subsidiary of the Borrower contained in
the Transaction Documents, and all certificates and other documents delivered to
the  Administrative  Agent in  connection  therewith,  taken as a whole,  do not
contain any untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements  contained herein or therein, in light
of the circumstances under which they were made, not misleading.

     ARTICLE  6.014  Requirements  of  Law .  Each  of  AXE,  Anixter  and  each
Subsidiary of Anixter is in compliance with all  Requirements of Law (including,
without  limitation,  the Securities  Act and the  Securities  Exchange Act, the
applicable  rules  and  regulations  thereunder,   and  state  securities  laws)
applicable to it and its business,  where the failure to so comply would have or
could be reasonably expected to have a Material Adverse Effect.

     ARTICLE  6.015  Patents,   Trademarks,   Permits,  Etc.  Anixter  and  each
Subsidiary  of Anixter  owns,  is licensed or otherwise  has the lawful right to
use,  or has all  permits  and  other  approvals  of  Governmental  Authorities,
patents,  trademarks,  service  marks,  trade  names,  copyrights,   technology,
know-how and  processes  used in or necessary for the conduct of its business as
currently  conducted  which are material to its financial  condition,  business,
operations,  assets and prospects,  individually or taken as a whole. The use of
such  permits  and  other  approvals  of  Governmental   Authorities,   patents,
trademarks,  service marks, trade names,  copyrights,  technology,  know-how and
processes by the Borrower or any such Subsidiary does not infringe on the rights
of any Person,  subject to such claims and  infringements the existence of which
do not have or could not  reasonably  be  expected  to have a  Material  Adverse
Effect.  The  consummation of the  transactions  contemplated by the Transaction
Documents  will not impair the  ownership  of or rights under (or the license or
other right to use, as the case may be) any permits and governmental  approvals,
patents,  trademarks,  service  marks,  trade  names,  copyrights,   technology,
know-how or processes by Anixter or any such  Subsidiary in any manner which has
or could reasonably be expected to have a Material Adverse Effect.

     ARTICLE 6.016 Environmental  Matters . Except as disclosed in Schedule 5.16
and except to the extent that a failure of any of the following  representations
to be true could not be reasonably  expected to have a Material  Adverse Effect,
(i) each of the operations of AXE,  Anixter and its  Subsidiaries  comply in all
respects with all applicable  environmental,  health and safety  Requirements of
Law;  (ii)  each  of  AXE,   Anixter  and  its  Subsidiaries  has  obtained  all
environmental,  health and safety Permits necessary for its operations, all such
Permits  are in good  standing  and AXE,  Anixter  and its  Subsidiaries  are in
compliance with all terms and conditions of such Permits;  and (iii) (A) neither
AXE, Anixter nor any Subsidiary of Anixter, nor any of their present Property or
operations   and   (B)   none  of   AXE's,   Anixter's   or  its   Subsidiaries'
previously-owned  Property or past  operations is subject to any Remedial Action
or other Liabilities and Costs arising from the Release or threatened Release of
a Contaminant into the environment.

     ARTICLE 6.017 Employee  Benefit Matters . No ERISA Event has occurred or is
reasonably expected to occur that, when taken together with all other such ERISA
Events for which liability is reasonably  expected to occur, could reasonably be
expected to result in a Material  Adverse  Effect.  As of the Closing Date,  the
present value of all  accumulated  benefit  obligations  under all Pension Plans
(based on the assumptions used by the Plans to determine benefit  obligations on
an ongoing  basis) does not exceed the fair  market  value of all assets of such
Plans.  As of each date that this  representation  is made or deemed  made,  the
present value of all accumulated  benefit obligations of all underfunded Pension
Plans  (based  on  the  assumptions  used  by the  Plans  to  determine  benefit
obligations  on an  ongoing  basis) did not,  as of the date of the most  recent
financial statements  reflecting such amounts,  exceed by more than US$5,000,000
the fair market value of all of the assets of all such underfunded Plans.

     ARTICLE 6.018  Solvency . Each Loan Party is Solvent after giving effect to
the  transactions  contemplated  by this  Agreement  and the  other  Transaction
Documents and the payment and accrual of all  Transaction  Costs with respect to
any of the foregoing.

     ARTICLE 6.019 Assets and Properties . AXE,  Anixter and each  Subsidiary of
Anixter has good title to all of the assets  (tangible and intangible)  owned by
it, except for  imperfections  of title (including Liens to the extent permitted
under Section  7.02(b)) which in the aggregate  could not reasonably be expected
to have a Material Adverse Effect, and all such assets are free and clear of all
Liens, except as otherwise specifically permitted by the terms and provisions of
this Agreement and the other Loan Documents. Substantially all of the assets and
properties  owned  by,  leased  to or  used  by the  Borrower  or  any  Domestic
Subsidiary of Anixter are in good repair, working order and condition, excepting
ordinary wear and tear and are free and clear of any known  defects  except such
defects as do not substantially  interfere with the continued use thereof in the
conduct of normal operations.

     ARTICLE 6.020 Joint Venture;  Partnership . Except as set forth in Schedule
5.20 or as otherwise  permitted in this  Agreement,  neither AXE nor Anixter nor
any  Subsidiary  of  Anixter is engaged in any  partnership  or  material  joint
venture with any other Person.

     ARTICLE 6.021 No Default . No Default or Event of Default exists.

     ARTICLE 6.022 Restricted  Payments . On or after the Closing Date,  neither
Anixter nor any  Subsidiary  of Anixter has  directly  or  indirectly  declared,
ordered,  paid or made or set  apart  any  sum or  property  for any  Restricted
Payment or agreed to do so, except to the extent  permitted  pursuant to Section
7.05.

     ARTICLE 6.023 Subsequent Funding Representations and Warranties . To induce
each Lender and the  Administrative  Agent to enter into this  Agreement  and to
make the Loans,  the  Borrower  represents  and  warrants to each Lender and the
Administrative  Agent that the statements set forth in the preceding Sections of
this  Article V (except to the extent that such  statements  expressly  are made
only as of the Closing  Date),  are true,  correct and  complete in all material
respects on and as of the date of each Borrowing after the Closing Date,  except
that the  representations  and  warranties  need not be true and  correct to the
extent that changes in the facts and  conditions  on which such  representations
and  warranties  are  based are  expressly  required  or  permitted  under  this
Agreement.

     ARTICLE 7. AFFIRMATIVE COVENANTSARTICLE 8.

     So long as any Lender  shall have any  Commitment  hereunder or any Loan or
other Obligation shall remain unpaid or unsatisfied,

     ARTICLE 8.01  Financial  Statements . The Borrower  shall,  and shall cause
each of its  material  Subsidiaries  to,  maintain or cause to be  maintained  a
system of accounting  established  and  administered  in  accordance  with sound
business  practices and consistent  with past practice to permit  preparation of
financial  statements in  conformity  with GAAP and, if required by the terms of
this Agreement, in conformity with Agreement Accounting Principles,  and each of
the financial  statements described below shall be prepared from such system and
records.  Anixter shall  deliver or cause to be delivered to the  Administrative
Agent and each Lender:

     (a)  Quarterly  Reports.  As soon as  practicable,  and in any event within
forty-five (45) days after the end

     of each of  Anixter's  Fiscal  Quarters,  on a  consolidated  basis for the
Consolidated Group, each of the following:

     (i) a balance sheet as of the end of such Fiscal  Quarter and as of the end
of the previous Fiscal Year; and

     (ii) an income  statement and a cash flow  statement of such Fiscal Quarter
and for the period from the  beginning of the current  Fiscal Year to the end of
such  Fiscal  Quarter,  setting  forth in each case in  comparative  form and in
reasonable  detail the figures  for the  corresponding  periods of the  previous
Fiscal Year;

     all prepared by Anixter,  together with a certification by one of Anixter's
Financial  Officers that they fairly  represent  the financial  condition of the
Persons  covered  thereby as at the dates  indicated  in  accordance  with GAAP,
subject to changes resulting from audit and normal year-end  adjustments and the
absence of footnotes.

     (b) Annual Reports. As soon as practicable,  and in any event within ninety
(90) days  after the end of each  Fiscal  Year on a  consolidated  basis for the
Consolidated Group, annual financial  statements  consisting of a balance sheet,
income  statement and cash flow statement,  setting forth in comparative form in
each  case  the  consolidated  figures  for  the  previous  Fiscal  Year  all in
reasonable  detail,  and  accompanied by an opinion  (unqualified as to scope or
going  concern and which is not  adverse)  thereon of Ernst & Young LLP or other
firm of independent certified public accountants of recognized national standing
regularly retained by Anixter and acceptable to the Administrative  Agent, which
report shall state that such financial  statements  present fairly the financial
position  of the  Persons  covered  thereby  as at the dates  indicated  and the
results  of  their  operations  and  cash  flow  for the  periods  indicated  in
conformity with GAAP applied on a basis  consistent with prior years (or, in the
event of a change in accounting principles,  such accountants'  concurrence with
such change) and that such firm's audit has been  conducted in  accordance  with
generally accepted auditing standards.

     (c) Budget and Business Plan.  Promptly upon  completion,  but in any event
not later than  seventy-five  (75) days after the end of each Fiscal Year,  on a
consolidated  basis for the  Consolidated  Group, a copy of the operating budget
and projections by Anixter of the income statement,  balance sheet and cash flow
of the Consolidated Group, taken as a whole, for the next succeeding Fiscal Year
of Anixter,  all in form  customarily  prepared by  Anixter's  management,  such
operating  budget and  projected  financial  statements to be  accompanied  by a
certificate  of one of  Anixter's  Financial  Officers  to the effect  that such
operating  budget and projected  financial  statements have been prepared on the
basis believed by Anixter to be reasonable.

     (d)  Compliance  Certificate;  MD&A.  Together  with each  delivery  of the
financial statements pursuant to subsections (a) and (b) above, (i) an Officers'
Certificate of Anixter  stating that the signers have reviewed the terms of this
Agreement  and the Loan  Documents,  and have  made,  or caused to be made under
their  supervision,  a review  in  reasonable  detail  of the  transactions  and
condition of Anixter and its Subsidiaries,  during the accounting period covered
by such  financial  statements,  and that  such  review  has not  disclosed  the
existence during or at the end of such accounting  period,  and that the signers
do  not  have  knowledge  of the  existence,  as at the  date  of the  Officers'
Certificate,  of any condition or event which constitutes an Event of Default or
Default,  or, if any such  condition or event existed or exists,  specifying the
nature and period of  existence  thereof and what action  Anixter has taken,  is
taking and proposes to take with respect thereto; (ii) a Compliance  Certificate
(A)  demonstrating in reasonable detail compliance during and at the end of such
accounting  periods with the  provisions  set forth in Sections  7.05,  and 7.15
through 7.19 and (B) reporting the Debt Ratings and based upon its  calculations
the  Applicable  Margin;  and (iii) a written  discussion  and  analysis  by the
management of Anixter of such financial statements.

     (e) Accountant's Compliance  Certificate.  Simultaneously with the delivery
of the financial  statements referred to in subsection (b) above, a statement of
the firm of  independent  certified  public  accountants  which reported on such
financial  statements whether anything has come to their attention to cause them
to  believe  that  there  existed  on the date of such  statements  any Event of
Default or Default.

     (f) Report of Material Events.  Promptly upon Anixter  obtaining  knowledge
(A) of any condition or event which  constitutes an Event of Default or Default,
(B) of any  condition or event which  constitutes  an event of default or which,
with the giving of notice or lapse of time or both, would constitute an event of
default under the  Subordinated  LYONs Note,  the Senior Notes,  the Senior Note
Indenture or the  Revolving  Subordinated  Note,  (C) of any  condition or event
which is required to be disclosed in a current  report filed by Anixter with the
Commission  on Form 8-K,  or (D) of any  condition  or event  which has or could
reasonably  be  expected  to  have  a  Material  Adverse  Effect,  an  Officers'
Certificate  specifying the nature and period of existence of any such condition
or event and what action Anixter has taken,  is taking and proposes to take with
respect thereto.

     (g) Notice of Claims and Proceedings.  (i) Promptly after learning thereof,
notice of the  institution  of, or threat  of,  any  action,  suit,  proceeding,
governmental  investigation or arbitration  against or affecting  Anixter or any
Subsidiary of Anixter  involving claims in excess of US$10,000,000  except where
the same is fully covered (other than any applicable co-insurance or deductible)
by insurance (other than insurance in the nature of  retro-premium  insurance or
other self insurance programs);  and (ii) promptly upon learning thereof, notice
of any investigation or proceeding before or by any Governmental Authority,  the
effect of which might limit, prohibit or restrict materially the manner in which
Anixter or any  Subsidiary  of Anixter  currently  conducts  its  business or to
declare any substance  contained in the products  manufactured or distributed by
it to be dangerous,  if such investigation or proceeding has or could reasonably
be expected to have a Material Adverse Effect.

     (h) ERISA  Matters.  Prompt  written  notice of the occurrence of any ERISA
Event that,  alone or together  with any other ERISA Events that have  occurred,
could  reasonably be expected to have a Material  Adverse  Effect,  such written
notice to  describe  such ERISA Event or Events and the  action,  if any,  which
Anixter or such ERISA  Affiliate has taken,  is taking and proposes to take with
respect thereto.

     (i) Publicly  Distributed  Information.  On a timely  basis,  copies of all
financial  statements,  reports  and  notices,  if any,  sent or made  available
generally by AXE or Anixter to the holders of its publicly-held  securities,  if
any, or filed with the  Commission,  and of all press  releases  made  available
generally  by  AXE or  Anixter  to  the  public,  if  any,  concerning  material
developments in the business of AXE, Anixter or any of Anixter's Subsidiaries.

     (j) Notices regarding the Senior Note Indenture.  (i) A copy of each notice
or other  written  communication  delivered  by or on behalf of  Anixter  to any
holder of Senior Notes or to the trustee under the Senior Note  Indenture,  such
delivery  to be made at the same  time and by the same  means as such  notice or
other  written  communication  is delivered to such Person,  (ii) a copy of each
notice or other written communication is received by Anixter from the holders of
or trustee for the Senior Notes,  such  delivery to be made promptly  after such
notice or other written communication is received by Anixter and (iii) notice of
any material  amendment or  modification  of, or supplement  to, the Senior Note
Indenture,  including, without limitation, any supplement governing the issuance
of any additional notes under the Senior Note Indenture.

     (k) Debt  Ratings.  Promptly  after  learning  thereof,  (i)  notice of the
initial  establishment of any of the Debt Ratings for Anixter and thereafter any
change  therein  and (ii) a copy of each notice or other  written  communication
received by Anixter from S&P, Moody's,  Fitch or any other nationally recognized
rating agency relating to any of the Debt Ratings.

     (l) Other  Information.  Such other  information  respecting  the financial
condition of Anixter or any Subsidiary of Anixter, or their respective business,
operations, assets, performance or prospects, as the Administrative Agent or any
Lender  through  the  Administrative  Agent  may  from  time to time  reasonably
request, including,  without limitation,  financial projections,  business plans
and any information such Person's  accountants may have prepared with respect to
such Person's financial condition, its business, operations, assets, performance
and  prospects.  The  Administrative  Agent  and the  Lenders  shall  treat  any
non-public  information so obtained as  confidential  in accordance with Section
10.08 hereof.

     ARTICLE   8.02   Environmental   Notices  .   Anixter   shall   notify  the
Administrative  Agent  and each  Lender  in  writing,  promptly  upon  Anixter's
learning thereof, of any of the following which, in each case or together, could
reasonably be expected to result in a Material Adverse Effect:

     (a) notice  that any  Property of Anixter or any  Subsidiary  of Anixter is
subject to an Environmental Lien; or

     (b) notice to Anixter or any  Subsidiary of Anixter or awareness by Anixter
or any Subsidiary of Anixter of a condition  which could  reasonably be expected
to result in (1) a notice of  violation  of any  environmental  health or safety
Requirement of Law or (2) any  Liabilities and Costs with respect to any Release
or threatened Release of any Contaminant into the environment.

     ARTICLE 8.03 Corporate Existence,  Etc. The Borrower shall, and shall cause
each of its Subsidiaries to, at all times,  maintain its corporate existence and
preserve and keep in full force and effect its rights and franchises,  except as
otherwise  expressly  permitted  in Section  7.08 and except with respect to any
Subsidiary  which has no material assets or liabilities.  Anixter shall promptly
provide the Administrative Agent and each of the Lenders with a complete list of
its  Subsidiaries  upon the  occurrence  of any  change in the list set forth on
Schedule  5.03 hereto with respect to  Subsidiaries  having  assets in excess of
US$1,000,000 individually or US$5,000,000 in the aggregate.

     ARTICLE 8.04 Corporate  Powers,  Etc. The Borrower  shall,  and shall cause
each of its Subsidiaries to, qualify and remain qualified to do business in each
jurisdiction in which the nature of its business requires it to be so qualified,
except in those  jurisdictions  where the failure to so qualify does not have or
could not reasonably be expected to have a Material Adverse Effect.

     ARTICLE 8.05  Compliance  with Laws . The Borrower  shall,  and shall cause
each of its  Subsidiaries  to,  comply  with all  Requirements  of Law,  and all
material  contractual  obligations  affecting  it or its  business,  properties,
assets or  operations,  except  where the  failure so to comply does not have or
could not reasonably be expected to have a Material Adverse Effect.

     ARTICLE 8.06 Payment of Taxes and Claims . The  Borrower  shall,  and shall
cause each of its Subsidiaries  to, pay (a) all material taxes,  assessments and
other governmental charges imposed upon it or on any of its properties or assets
or in respect of any of its franchises,  business, income or property before any
penalty or interest  accrues  thereon,  and (b) all material claims  (including,
without limitation, claims for labor, services, materials and supplies) for sums
which  have  become due and  payable  and which by law have or may become a Lien
(other than a Customary  Permitted  Lien) upon any of its  properties or assets,
prior to the time  when any  penalty  or fine  shall be  incurred  with  respect
thereto;  provided  that no such taxes,  assessments  and  governmental  charges
referred  to in clause (a) above or claims  referred to in clause (b) above need
to be paid if being contested in good faith by appropriate  proceedings promptly
instituted  and  diligently  conducted and if such reserve or other  appropriate
provision,  if any, as shall be required in conformity with GAAP shall have been
made therefor.

     ARTICLE 8.07 Maintenance of Properties; Insurance . The Borrower shall, and
shall cause each of its  Subsidiaries  to, maintain or cause to be maintained in
good repair,  working order and condition,  excepting ordinary wear and tear and
damage, due to casualty or condemnation, all Property material to its operations
and  will  make or  cause  to be made  all  appropriate  repairs,  renewals  and
replacements  thereof.  The Borrower shall,  and Anixter shall cause each of its
Subsidiaries  to,  maintain with  financially  sound  insurance  companies,  the
insurance  policies and programs,  including,  self-insurance  retention levels,
listed on Schedule 6.07 hereto (or  substantially  similar  programs or policies
and amounts or other programs,  policies and amounts  acceptable to the Required
Lenders)  insuring all Property and other assets  material to the  operations of
Anixter and its Subsidiaries  against loss or damage by fire,  theft,  burglary,
pilferage  and loss in transit and  business  interruption,  together  with such
other hazards as are reasonably  consistent with prudent industry practice,  and
maintain product and other liability insurance  consistent with prudent industry
practice with financially sound insurance  companies  licensed to do business in
the states where such Property is located.  Not later than sixty (60) days after
the  renewal,  replacement  or material  modification  of any policy or program,
Anixter shall deliver or cause to be delivered to the  Administrative  Agent (in
sufficient  quantity for each of the  Lenders,  which the  Administrative  Agent
shall promptly  distribute to each Lender) a detailed schedule setting forth for
each such  policy or  program:  (a) the  amount  of such  policy,  (b) the risks
insured  against by such  policy,  (c) the name of the insurer and each  insured
party under such policy, and (d) the policy number of such policy.

     ARTICLE 8.08 Inspection of Property;  Books and Records;  Discussions . The
Borrower shall permit,  and shall cause each of its Subsidiaries to permit,  any
authorized  representative(s)  designated  by any  Lender or the  Administrative
Agent to visit  and  inspect  any of its  properties,  including  financial  and
accounting  records,  and to make  copies and take  extracts  therefrom,  and to
discuss  its  affairs,  finances  and  accounts  with its  officers,  employees,
representatives,  agents or independent  certified public accountants,  all upon
reasonable  notice and at such reasonable time and as often as may be reasonably
requested.  Each  such  visitation  and  inspection  made by or on behalf of the
Administrative  Agent shall be at the  Borrower's  expense.  Any  visitation and
inspection made by or on behalf any Lender shall be at such Lender's expense.

     ARTICLE  8.09  Maintenance  of  Permits . The  Borrower  shall  obtain  and
maintain,  and shall cause each of its  Subsidiaries to obtain and maintain,  in
full  force  and  effect  all  licenses,  franchises,  Permits  or other  rights
necessary for the operation of its business,  except where the failure to obtain
or maintain such licenses, franchises, Permits or rights does not have and could
not reasonably be expected to have a Material Adverse Effect.

     ARTICLE 8.010  Employee  Benefit  Matters . The Borrower  shall  establish,
maintain and operate,  and shall cause each of its  Subsidiaries  to  establish,
maintain and operate,  all Plans in all material respects in compliance with the
applicable  provisions of ERISA, the Code and all other applicable laws, and the
regulations and interpretations  thereunder,  and the respective requirements of
the governing  documents for such Plans.  The Borrower shall,  and Anixter shall
cause  each of its  Subsidiaries  and  other  ERISA  Affiliates  to,  establish,
maintain  and  operate  all  Foreign  Employee  Benefit  Plans to  comply in all
material  respects with all laws,  regulations and rules applicable  thereto and
the respective requirements of the governing documents for such Foreign Employee
Benefit Plans.

     ARTICLE   8.011   Additional   Guarantors   .  Upon  the   request  of  the
Administrative  Agent and/or the Required  Lenders,  Anixter will promptly cause
each material  Subsidiary  that shall not then be a Guarantor under the Guaranty
(other  than (a) any Foreign  Subsidiary  (except as  provided  below),  (b) any
Receivables  Securitization SPV or (c) any Subsidiary with no significant assets
or operations) to execute and deliver to the Administrative Agent: an instrument
satisfactory  in form and substance to the  Administrative  Agent under which it
shall undertake the  obligations of a Guarantor,  together with such evidence as
the  Administrative  Agent may reasonably  request as to the corporate power and
authority of such Subsidiary to execute the foregoing instrument and perform its
obligations  thereunder.  Notwithstanding  the  foregoing,  if at any  time  the
Administrative Agent, in its reasonable judgment,  determines that the assets or
operations of Anixter  Puerto Rico,  Inc.,  Anixter  Philippines  Inc.,  Anixter
Thailand Inc. or Anixter  Venezuela Inc. have become  material,  such Subsidiary
shall  execute and deliver the  aforementioned  documents to the  Administrative
Agent.

     ARTICLE  8.012 Use of Proceeds . The  proceeds of the Loans may be used for
working  capital,  capital  expenditures  and other  corporate  purposes  and to
refinance Indebtedness under the Existing Credit Facility.

     ARTICLE 9. NEGATIVE COVENANTSARTICLE 10.

     So long as any Lender  shall  have any  Commitment  hereunder,  any Loan or
other Obligation shall remain unpaid or unsatisfied:

     ARTICLE  10.01  Indebtedness  . Anixter shall not, and shall not permit any
member of the  Consolidated  Group to,  directly or  indirectly  create,  incur,
assume or otherwise become or remain directly or indirectly  liable with respect
to any Indebtedness, except:

     (i) the  Obligations  and the  "Obligations"  as defined  in the  Five-Year
Credit Agreement;

     (ii) the Existing Indebtedness;

     (iii) the  Senior  Notes in an  aggregate  principal  amount  not to exceed
US$100,000,000;

     (iv)  Indebtedness  in respect of  Accommodation  Obligations  permitted by
Section 7.04;

     (v) Indebtedness of any Subsidiary to Anixter or any other Subsidiary;

     (vi) Indebtedness of Anixter to any Subsidiary;

     (vii)  other  unsecured  Indebtedness  of  Anixter  and  its  Subsidiaries,
including without limitation subordinated indebtedness, which does not exceed in
the aggregate US$375,000,000 at any one time outstanding.

     (viii) the Subordinated LYONs Note;

     (ix) Indebtedness arising under Receivables Securitization  Transactions in
an aggregate amount not exceeding US$350,000,000; and

     (x) Indebtedness under Hedging Contracts permitted under Section 7.14;

     provided  that  the  aggregate  principal  amount  of  Indebtedness  of all
Subsidiaries owing to Persons other than to Anixter or another Subsidiary at any
time  (other  than   Indebtedness   (i)  in  respect  of  the   Obligations  and
"Obligations"  as defined in the  Five-Year  Credit  Agreement  and (ii) arising
under Receivables Securitization Transactions) shall not exceed US$100,000,000.

     ARTICLE 10.02 Sales of Assets; Liens .

     (a) Limitation on Sales. Anixter shall not, and shall not permit any of its
Subsidiaries to, directly or indirectly sell, assign, transfer, lease, convey or
otherwise dispose of any properties or assets,  including,  without  limitation,
any capital stock of any Subsidiary, whether now owned or hereafter acquired, or
any income or profits therefrom, except for:

     (i) sales of inventory in the ordinary course of business;

     (ii) the  disposition  of  obsolete  equipment  in the  ordinary  course of
business;

     (iii)  sales  by  Anixter  of  stock  of a  Subsidiary  held by it,  in any
transaction  or series of  related  transactions  not  constituting  a  Material
Transaction, individually or taken together;

     (iv)  sales,   assignments,   transfers,   leases,   conveyances  or  other
dispositions of other assets,  other than the stock of any Subsidiary,  for cash
consideration  and for not less than fair market value which do not constitute a
Material  Transaction  individually or in the aggregate (together with all sales
of stock of any Subsidiary under clause (iii) above);

     (v)  sales,   assignments,   transfers,   leases,   conveyances   or  other
dispositions of assets to Anixter or a Subsidiary;

     (vi)  transfers of assets to any  Affiliate for less than fair market value
to the extent  such  transfer  constitutes  a permitted  Investment  pursuant to
Section 7.03; and

     (vii) Receivables  Securitization  Transactions as to which the outstanding
aggregate  investment  or  principal  amount of  claims  held at any time by all
purchasers,  assignees or other  transferees of (or of interests in) receivables
and other rights to payment in all Receivables Securitization Transactions shall
not at any time exceed in the aggregate US$350,000,000.

     (b) Liens.  Anixter shall not, and shall not permit any of its Subsidiaries
to, directly or indirectly create,  incur, assume or permit to exist any Lien on
or with  respect to any of its  Property  (including  all  capital  stock of any
Subsidiary of Anixter) except:

     (i) Customary Permitted Liens;

     (ii) Permitted Existing Liens;

     (iii) Liens on assets of any joint venture  described in Section  7.03(vi);

     (iv) (A) Liens on Property  existing at the time of acquisition  thereof by
Anixter or any of its  Subsidiaries  and not  created in  contemplation  of such
acquisition;  and (B) Liens securing purchase money Indebtedness for Property to
the extent the aggregate  outstanding principal amount of such Indebtedness does
not exceed  US$20,000,000,  is permitted under Section 7.01 and the value of the
Property   securing   such   Indebtedness   approximates   the  amount  of  such
Indebtedness;

     (v) Liens with respect to judgments or  attachments  which do not result in
an Event of Default or Default hereunder;

     (vi) Liens on the assets of Foreign  Subsidiaries which are not "Borrowers"
under and as defined in the Five-Year Credit Agreement;  provided, the aggregate
amount of Indebtedness secured by such Liens shall not exceed $50,000,000; and

     (vii)  Liens  arising  in  connection   with   Receivables   Securitization
Transactions;  provided that the outstanding  aggregate  investment or principal
amount  of  claims  held  at any  time by all  purchasers,  assignees  or  other
transferees of (or of interests in)  receivables  and other rights to payment in
all Receivables Securitization  Transactions shall not at any time exceed in the
aggregate US$350,000,000.

     ARTICLE 10.03  Investments . Anixter shall not, and shall not permit any of
its  Subsidiaries to, directly or indirectly make or commit to make any advance,
loan,  extension  of credit or capital  contribution,  or purchase of any stock,
bonds, notes, debentures or other securities or evidences of indebtedness of, or
make any other investment in, any Person,  including,  without  limitation,  any
Affiliate of Anixter (all such transactions  being referred to as "Investments")
except:

     (i) Investments by Anixter or any of its Subsidiaries in Cash Equivalents;

     (ii)  Investments  made prior to the date  hereof and set forth on Schedule
7.03;

     (iii) Investments  arising from sales in the ordinary course of business on
customary trade terms;

     (iv)  Investments  constituting  (a) loans by Anixter or any  Subsidiary of
Anixter to its employees in each case in the ordinary  course of business not in
excess of an aggregate amount of  US$10,000,000  outstanding at any one time and
(b) in addition to the loans permitted  pursuant to clause (a), loans by Anixter
to its employees  concurrent  with the exercise of an option for the purchase of
capital stock of Anixter pursuant to the Anixter  Distribution Stock Plan, which
loans shall:  (1) be in an amount not to exceed the lesser of (A)  US$15,000,000
in the aggregate  and (B) the sum of (i) the exercise  price with respect to the
stock being  purchased  plus (ii) the amount of tax  withheld on the  difference
between ---- the  exercise  price with respect to such stock and the fair market
value of such stock on the date of exercise of such  option;  and (2) be secured
by a pledge in favor of Anixter of the capital stock so purchased;

     (v)  Investments  in  connection  with the  acquisition  by  Anixter or any
Subsidiary of substantially all of the assets or all of the capital stock of any
Person not in excess of an individual  amount of  US$75,000,000  or an aggregate
amount  of  US$150,000,000  over  the  term of this  Agreement  (in  each  case,
exclusive  of the  value  of any  capital  stock  of  Anixter  or AXE  given  in
connection with any such acquisition);

     (vi)  Investments in any joint ventures and  Investments in connection with
the purchase of any other Person's interest in any such joint ventures, which do
not exceed US$25,000,000 in the aggregate outstanding at any one time;

     (vii)  Investments  (other than those set forth on Schedule  7.03) in notes
receivable  received  in  connection  with  transactions  permitted  pursuant to
Section 7.02(a)(vii);  provided, the aggregate amount of such Investments at any
one time outstanding shall not exceed US$275,000,000;

     (viii) Investments by Anixter in any Subsidiary of Anixter;

     (ix)  Investments  by any  Subsidiary of Anixter in Anixter or in any other
Subsidiary of Anixter;

     (x)  Investments  constituting  loans  permitted  by  Section  7.01(vi)  or
Accommodation Obligations permitted under Section 7.04; and

     (xi)  other  Investments  not to  exceed  US$10,000,000  in  the  aggregate
outstanding at any time.

     Notwithstanding  anything to the contrary  contained in this Section  7.03,
neither  Anixter nor any  Subsidiary  of Anixter  shall acquire more than twenty
percent (20%) of the capital  stock of any Person in a transaction  that has not
been approved by such Person's board of directors.

     ARTICLE 10.04 Accommodation  Obligations . Anixter shall not, and shall not
permit any of its Subsidiaries  to, directly or indirectly,  create or become or
be liable with respect to any Accommodation Obligation involving Indebtedness of
AXE or any Affiliate of AXE which is not a Subsidiary  of Anixter.  In addition,
Anixter shall not, and shall not permit any of its  Subsidiaries to, directly or
indirectly,  create or become or be liable  with  respect  to any  Accommodation
Obligation except:

     (i) guaranties  resulting from  endorsement of negotiable  instruments  for
collection in the ordinary course of business;

     (ii) Accommodation  Obligations  arising in connection with the Transaction
Documents;

     (iii)  Accommodation  Obligations of Anixter arising in connection with the
issuance of Canadian rate reset bonds by a Canadian  Subsidiary of Anixter in an
aggregate principal amount not to exceed $5,000,000;

     (iv)  Accommodation   Obligations  by  Anixter  with  respect  to  lessees'
obligations  to  third-party  lessors  under leases of Property  purchased  from
Anixter and its Subsidiaries, in an aggregate amount not to exceed US$5,000,000;

     (v)  Accommodation  Obligations of Anixter and its Subsidiaries  arising in
connection with Hedging Contracts entered into with any of the Lenders; and

     (vi) other Accommodation  Obligations by Anixter and its Subsidiaries in an
aggregate  amount  outstanding  at any time not to exceed  Seventy  Five Million
Dollars ($75,000,000); provided, however, that no such Accommodation Obligations
shall  be  entered  into  or  incurred  after  the  occurrence  and  during  the
continuance of an Event of Default or Default.

     ARTICLE 10.05 Restricted Payments . Anixter shall not, and shall not permit
any of  its  Subsidiaries  to,  directly  or  indirectly  declare  or  make  any
Restricted Payment, except:

     (i)  payments of  dividends  by Anixter to AXE or  redemption,  retirement,
purchase or other  acquisition for value,  direct or indirect,  of any shares of
capital stock of Anixter issued to AXE or prepayments,  redemption or defeasance
of subordinated  debt,  provided:  (a) at the time thereof and after taking into
account  the  payment  thereof,  no Event of  Default  or  Default  exists or is
pending,  whether or not such Event of Default or Default  has been  reported to
the  Administrative  Agent;  and (b) the  aggregate  amount  of such  dividends,
redemptions,   retirements,   purchases  or  other  acquisitions,   prepayments,
redemptions  and defeasance  does not exceed  US$100,000,000  plus fifty percent
(50%) of the  Consolidated  Net Income for the period from September 30, 2000 to
the date of such calculation; and

     (ii)  (payments  by  Anixter  to AXE  under  the Tax  Allocation  Agreement
provided:  (a) no such  payments  shall be made at any time with  respect to the
income (whether trade or business income or passive income) of Anixter's Foreign
Subsidiaries  unless  Anixter  has  received  a like  amount  from such  Foreign
Subsidiaries,  (b) no such payments shall be made at any time to the extent such
payments  are not in an amount  substantially  the same as the amount of federal
and state taxes  which would be due and payable by Anixter and the  corporations
(with Anixter,  collectively the "Borrower Group") which would be members of the
"affiliated  group" (as  defined in Section  1504 of the Code) of which  Anixter
would be the common  parent if Anixter  were not a member of the AXE  affiliated
group (as so defined)  (the "AXE Group") if the Borrower  Group filed a separate
consolidated  federal  income tax return and separate  consolidated  or combined
state  income tax  returns,  (c) no such  payments  shall be made at any time an
Event of Default or Default  exists or is pending,  whether or not such Event of
Default or Default has been reported to the Administrative  Agent, to the extent
such  payments  exceed the lesser of (1) the amount of federal  and state  taxes
which would be due and payable by the  Borrower  Group,  if the  Borrower  Group
filed  a  separate   consolidated   federal   income  tax  return  and  separate
consolidated  or combined state income tax returns and (2) the amount of the tax
liability  actually  incurred and paid by the AXE Group; and (d) no such payment
shall be made after the occurrence of an Event of Default under Section  8.01(f)
or 8.01(g).

     ARTICLE 10.06 Conduct of Business . Anixter shall not, and shall not permit
any of its Subsidiaries to, directly or indirectly  engage in any business other
than the business  engaged in by Anixter and all of its Subsidiaries on the date
hereof and any business  activities  substantially  similar or related  thereto.
Anixter  shall not,  and Anixter  shall not permit any of its  Subsidiaries  to,
enter into any interest rate,  commodity,  or foreign currency  exchange,  swap,
collar, cap, option,  forward,  futures or similar agreements other than Hedging
Contracts.

     ARTICLE 10.07  Transactions  with Affiliates . Anixter shall not, and shall
not permit any of its  Subsidiaries  to,  directly or  indirectly  enter into or
permit to exist any transaction  (including,  without limitation,  the purchase,
sale,  lease or exchange of any property or the  rendering of any service)  with
any of its  Affiliates  that are not  Subsidiaries  of Anixter on terms that are
less favorable to it than those fair and reasonable terms that might be obtained
in a comparable arms-length  transaction at the time (other than payments to AXE
in respect of directors'  fees and reasonable  allocated  expenses not to exceed
US$3,000,000 per year in the aggregate).

     ARTICLE 10.08 Restriction on Fundamental Changes .

     (a) Anixter  shall not,  and shall not permit any of its  Subsidiaries  to,
directly or  indirectly  enter into any merger or  consolidation,  or liquidate,
wind-up or dissolve (or suffer any liquidation or dissolution),  discontinue its
business  or convey,  lease,  sell,  transfer  or  otherwise  dispose of, in one
transaction  or  series  of  transactions,  all or any  substantial  part of its
business or Property, whether now or hereafter acquired, except:

     (i) as otherwise permitted under Section 7.02(a); and

     (ii) any Subsidiary may merge into or convey,  sell,  lease or transfer all
or  substantially  all of its  assets  to  Anixter  or any other  Subsidiary  of
Anixter.

(b) Anixter  shall not,  and shall not permit its  Subsidiaries  to,  acquire by
purchase or otherwise  any property or assets of, or stock or other  evidence of
beneficial  ownership  of,  any  Person,  except in the  ordinary  course of its
business or to the extent permitted pursuant to Section 7.03.

     ARTICLE 10.09 Employee  Benefit  Matters . Anixter shall not, and shall not
permit  any  of  its  ERISA  Affiliates  to  do  any  of  the  following  which,
individually,  or in the aggregate,  could reasonably be expected to result in a
Material Adverse Effect:

     (i) engage in any prohibited  transaction described in Section 406 of ERISA
or 4975 of the Code for which a statutory or class exemption is not available or
a private exemption has not been previously obtained from the DOL;

     (ii)  permit to exist any  accumulated  funding  deficiency  (as defined in
Sections 302 of ERISA and 412 of the Code), whether or not waived;

     (iii) fail to pay timely required  contributions or annual installments due
with respect to any waived funding deficiency to any Benefit Plan;

     (iv)  terminate  any Benefit Plan in a distress  termination  under Section
4041(c) of ERISA which  would  result in any  liability  to Anixter or any ERISA
Affiliate;

     (v) fail to make any  contribution  or  payment to any  Multiemployer  Plan
which Anixter or any ERISA Affiliate may be required to make under any agreement
relating to such Multiemployer Plan, or any law pertaining thereto;

     (vi) fail to pay any required  installment  or any other  payment  required
under Section 412 of the Code on or before the due date for such  installment or
other payment;

     (vii) amend a Plan  resulting in an increase in current  liability  for the
plan year such that  Anixter  or any ERISA  Affiliate  is  required  to  provide
security to such Plan under Section 401(a)(29) of the Code;

     (viii) permit any unfunded  liabilities with respect to any Foreign Pension
Plan to exist; or

     (ix) fail to pay any required  contribution or payment to a Foreign Pension
Plan on or before the date for such required installment or payment.

     ARTICLE 10.010 Environmental Liabilities . Anixter shall not, and shall not
permit any of its  Subsidiaries  to, become subject to any Liabilities and Costs
which could  reasonably be expected to have a Material  Adverse Effect and which
arise out of or are  related  to (a) the  Release or  threatened  Release at any
location of any  Contaminant  into the  environment,  or any Remedial  Action in
response thereto,  or (b) any violation of any environmental,  health and safety
Requirements of Law.

ARTICLE  10.011  Margin  Regulations  . No portion of the proceeds of any credit
extended under this Agreement  shall be used in any manner which might cause the
extension of credit or the application of such proceeds to violate Regulation T,
     Regulation U or Regulation X or any other regulation of the Federal Reserve
Board or to violate the Securities  Exchange Act or the Securities  Act, in each
case as in  effect  on the date or dates of such  Borrowing  and the use of such
proceeds.

     ARTICLE 10.012 Change of Fiscal Year . No member of the Consolidated  Group
shall change its fiscal year,  except that any Subsidiary of Anixter may conform
its fiscal year to Anixter's Fiscal Year.

ARTICLE  10.013  Modification  of the  Subordinated  LYONs Note,  the  Revolving
Subordinated Note or Senior Note Indenture;  Issuance of Additional Senior Notes
 . Anixter shall not amend, modify or supplement the Subordinated LYONs Note, the
Revolving  Subordinated  Note or the Senior Note Indenture without five Business
     Days' prior written notice to the Administrative Agent or in any manner
materially adverse to the Lenders,  or issue additional senior notes pursuant to
the Senior Note Indenture which have covenants or other  undertakings by Anixter
that  are   materially   less  favorable  to  Anixter  than  the  covenants  and
undertakings set forth in the Senior Note Indenture.

     ARTICLE 10.014 Hedging  Contracts . Anixter shall not, and shall not permit
any of its  Subsidiaries  to, enter into any Hedging  Contract other than in the
ordinary course of its business to hedge actual interest rate,  foreign currency
or commodity exposure.

     ARTICLE 10.015 Receivables Securitization Transactions . Anixter shall not,
and  shall  not  permit  any of its  Subsidiaries  to,  permit  the  outstanding
aggregate investment or principal amount of claims held by purchasers, assignees
or  transferees  of  (or  of  interests  in)  receivables  of  Anixter  and  its
Subsidiaries  in connection  with  Receivables  Securitization  Transactions  to
exceed $350,000,000.

     ARTICLE  10.016 Minimum  Consolidated  Net Worth . Anixter shall not permit
Consolidated Net Worth at any time to be less than (i) US$375,000,000  plus (ii)
fifty percent (50%) of Consolidated Net Income of the Consolidated Group in each
Fiscal Quarter ending after September 30, 2000 (with no deduction for a net loss
in any such Fiscal Quarter).

     ARTICLE  10.017  Maximum  Leverage  Ratio .  Anixter  shall not  permit the
Leverage Ratio as of the end of any Fiscal Quarter set forth below to be greater
than the ratio set forth below opposite such Fiscal Quarter:

Fiscal Quarters Ending                              Maximum Leverage Ratio
------------------------------------------------    ----------------------
Closing Date through Sept. 30, 2001                           3.50:1
December 31, 2001 through March 31, 2003                      3.25:1
June 30, 2003 and each Fiscal Quarter thereafter              3.00:1

     | ARTICLE 1.01 Minimum  Consolidated  Fixed Charge Coverage Ratio . Anixter
shall not permit the Consolidated  Fixed Charge Coverage Ratio calculated at the
end of each Fiscal  Quarter  for the period of the  immediately  preceding  four
Fiscal  Quarters  to be less than (a) 2.00 to 1 for any period  ending  prior to
December 31, 2001,  (b) 2.50 to 1 for any period ending on or after December 31,
2001 but prior to June 30,  2003,  and (c) 3.0 to 1 for any period  ending on or
after June 30, 2003.

     ARTICLE 1.02 Capital  Expenditures . Anixter shall not and shall not permit
any of its Subsidiaries to, in any Fiscal Year, purchase, invest in or otherwise
acquire,  including by Capital Leases,  additional Property, plant and equipment
or other fixed assets which capital  expenditures,  net of dispositions of fixed
assets  during such Fiscal  Year  (determined  based upon the lesser of the book
value of such disposed assets or the net cash proceeds received), exceed the sum
of US$50,000,000 in the aggregate plus the difference, if positive,  between (1)
the maximum aggregate amount of such capital expenditures  permitted pursuant to
this  Section  7.19  for  the  immediately  preceding  Fiscal  Year  and (2) the
aggregate amount of actual capital expenditures for such preceding Fiscal Year.

     ARTICLE 1.03 Calculation of Financial  Covenants . All financial  covenants
in this Article VII shall be calculated  after the  elimination  of the minority
interest in any Subsidiaries which are not wholly-owned Subsidiaries.

     ARTICLE 2. EVENTS OF DEFAULT AND REMEDIES ARTICLE 3.

     ARTICLE 3.01 Events of Default . Any of the following  shall  constitute an
Event of Default:

     (a) Failure to Make Payments  When Due. The Borrower  shall fail (i) to pay
when due any principal of any  Obligation,  or (ii) to pay when due any interest
on any  Obligation,  or any fee or other amount  payable under this Agreement or
any of the other Loan  Documents  and such failure  under this clause (ii) shall
continue for three (3) calendar days.

     (b) Breach of Certain  Covenants.  The  Borrower or any  Subsidiary  of the
Borrower  shall fail duly and  punctually  to perform or observe any  agreement,
covenant or  obligation  under  Sections 6.01 (other than clauses (c), (e), (h),
and (i) thereof), 6.03, 6.07, 6.12 or under Article VII (other than Section 7.09
thereof).

     (c) Breach of  Representation or Warranty.  Any  representation or warranty
made or deemed made by the Borrower or any Guarantor to the Administrative Agent
or any Lender  herein or by Anixter or any  Subsidiary  of Anixter in any of the
other Loan  Documents  or in any written  statement or  certificate  at any time
given by  Anixter  or any  Subsidiary  of  Anixter  pursuant  to any of the Loan
Documents shall be false or misleading in any material respect on the date as of
which made or deemed made.

     (d) Other  Defaults.  Anixter or any  Subsidiary of Anixter shall fail duly
and  punctually  to perform or observe any  agreement,  covenant  or  obligation
arising under this Agreement  (except those described in Sections  8.01(a),  (b)
and (c)) or under  any of the  other  Loan  Documents,  and such  failure  shall
continue  for fifteen  (15) days (or, in the case of Loan  Documents  other than
this Agreement, any longer period of grace expressly set forth therein).

     (e) Default as to Other  Indebtedness.  AXE,  Anixter or any  Subsidiary of
Anixter shall fail to make any payment when due (whether by scheduled  maturity,
required prepayment,  acceleration,  demand or otherwise) on any Indebtedness of
such Person,  other than any of the  Obligations,  if the aggregate  outstanding
amount of all such Indebtedness  owed by all such parties (without  duplication)
is  US$25,000,000  or more,  or any  breach,  default or event of default  shall
occur,  or any other event  shall  occur or  condition  shall  exist,  under any
instrument,  agreement or indenture pertaining thereto, if the effect thereof is
to accelerate,  or permit the holder(s) of such Indebtedness to accelerate,  the
maturity of any such Indebtedness, or any such Indebtedness shall be declared to
be due and payable or required to be prepaid or mandatorily redeemed (other than
by a  regularly  scheduled  required  prepayment  prior to the  stated  maturity
thereof);  or the holder of any Lien, in any amount,  shall commence foreclosure
of such Lien upon property of AXE, Anixter or any Subsidiary of Anixter having a
book or fair market value in excess of US$25,000,000 in the aggregate.

     (i) Involuntary  Bankruptcy;  Appointment of Receiver,  Etc. An involuntary
case shall be commenced  against AXE, or Anixter,  or against any  Subsidiary of
Anixter with assets in excess of  US$5,000,000,  and the  petition  shall not be
dismissed  within  sixty (60) days after  commencement  of the case,  or a court
having  jurisdiction in the premises shall enter a decree or order for relief in
respect of AXE,  Anixter or any  Subsidiary  of Anixter with assets in excess of
US$5,000,000 in an involuntary case, under any applicable bankruptcy, insolvency
or other similar law now or hereinafter  in effect,  or any other similar relief
shall be granted under any applicable federal, state or foreign law.

     (ii) A decree or order of a court having  jurisdiction  in the premises for
the appointment of a receiver, liquidator,  sequestrator,  trustee, custodian or
other officer having similar powers over any of AXE or Anixter or any Subsidiary
of Anixter with assets in excess of  US$5,000,000,  or over all or a substantial
part of the  property  of any such  Person,  shall  be  entered,  or an  interim
receiver,  trustee or other  custodian  of AXE or Anixter or any  Subsidiary  of
Anixter with assets in excess of  US$5,000,000,  or of all or a substantial part
of any such Person's  Property,  shall be appointed or a warrant of  attachment,
execution or similar process against any substantial part of the Property of AXE
or Anixter or any  Subsidiary of Anixter with assets in excess of  US$5,000,000,
shall be issued and any such  event  shall not be  stayed,  vacated,  dismissed,
bonded or discharged within sixty (60) days of entry, appointment or issuance.

     (f) Voluntary Bankruptcy;  Appointment of Receiver,  Etc. AXE or Anixter or
any  Subsidiary of Anixter with assets in excess of  US$5,000,000  shall have an
order for relief  entered with respect to it or commence a voluntary  case under
any applicable bankruptcy,  insolvency, or other similar law now or hereafter in
effect,  or shall consent to the entry of an order for relief in an  involuntary
case, or to the conversion of an involuntary case to a voluntary case, under any
such law, or shall  consent to the  appointment  of or taking of possession by a
receiver,  trustee  or  other  custodian  for all or a  substantial  part of its
property.  AXE or Anixter or any  Subsidiary of Anixter with assets in excess of
US$5,000,000  shall make any assignment for the benefit of creditors or shall be
unable or generally fail, or admit in writing its inability, to pay its debts as
such debts become due, or the Board of Directors (or any  committee  thereof) of
AXE  or  Anixter  or  any  Subsidiary  of  Anixter  with  assets  in  excess  if
US$1,000,000  shall  adopt any  resolution  to  authorize  or approve any of the
foregoing.

     (g)  Judgments.  (i) An  Enforceable  Judgment  (other than an  Enforceable
Judgment  described in the proviso  contained in the  definition of  Enforceable
Judgment) for the payment of money in excess of US$25,000,000  shall be rendered
against Anixter or any Subsidiary of Anixter and such Enforceable Judgment shall
continue  unsatisfied  or  unstayed  for a period of thirty  (30) days or action
shall have been commenced to foreclose on such Enforceable  Judgment, or (ii) an
Enforceable  Judgment  described in the proviso  contained in the  definition of
Enforceable Judgment shall be rendered against the Borrower.

     (h)  Dissolution.  Any order,  judgment or decree shall be entered  against
AXE,  Anixter or any Subsidiary of Anixter with assets in excess if US$5,000,000
decreeing its  involuntary  dissolution  or split-up and such order shall remain
undischarged  and unstayed  for a period in excess of thirty (30) days,  or AXE,
Anixter or any Subsidiary of Anixter with assets in excess if US$5,000,000 shall
otherwise dissolve or cease to exist, in each case except as expressly permitted
pursuant to Section 7.08.

     (i) Change of Control.  (i) Any Change of Control occurs,  or any Put Event
occurs and holders of Senior Notes notify  Anixter of their  election to require
Anixter to purchase  Senior  Notes  having an  aggregate  outstanding  principal
balance of  US$10,000,000  or more;  (ii) Anixter shall cease to own directly or
indirectly all of the capital stock of the Borrowing  Subsidiaries,  (other than
director's  qualifying  shares);  (iii) except as permitted in Section  7.02(a),
Anixter  shall cease to own at least 51% of each class of the  capital  stock of
each Subsidiary of Anixter;  or (iv) AXE shall cease to own at least 51% of each
class of the capital stock of Anixter.

     (j) Employee Benefit Related  Liabilities.  (i) Any one or more Termination
Events occur which could  reasonably be expected to subject  Anixter or an ERISA
Affiliate to a liability to pay more than  US$10,000,000 in the aggregate,  (ii)
the plan  administrator of any Plan applies under Section 412(d) of the Code for
a waiver of the minimum funding  standards of Section 412(a) of the Code and the
substantial business hardship upon which the application for the waiver is based
could reasonably be expected to subject either Anixter or any ERISA Affiliate to
a liability of more than US$10,000,000 in the aggregate.

     (k) Subordination  Default.  Any breach or other violation by any holder of
the  Subordinated  LYONs  Note  or  the  Revolving   Subordinated  Note  of  the
subordination or enforcement restrictions shall occur.

     (l) Guaranty Default. Any party to the Guaranty, or any Person on behalf of
such party,  shall  terminate  or revoke any of its  obligations  thereunder  or
breach  any  of the  terms  thereof,  or the  Guaranty  shall  otherwise  become
unenforceable for any reason.

     For purposes of this  Agreement  and each of the other Loan  Documents,  an
Event of Default shall be deemed  "continuing"  until cured or waived in writing
in accordance with Section 10.01.

     ARTICLE  3.02  Remedies  Upon  Event of  Default . If any Event of  Default
occurs,  the  Administrative  Agent shall,  at the request of, or may,  with the
consent of, the Required Lenders,

     (a) declare the  commitment of each Lender to make Loans to be  terminated,
whereupon such commitments and obligation shall be terminated;

     (b) declare  the unpaid  principal  amount of all  outstanding  Loans,  all
interest  accrued and unpaid  thereon,  and all other  amounts  owing or payable
hereunder or under any other Loan  Document to be  immediately  due and payable,
without presentment,  demand,  protest or other notice of any kind, all of which
are hereby expressly waived by the Borrower;

     (c)  exercise on behalf of itself and the  Lenders all rights and  remedies
available to it and the Lenders under the Loan Documents or applicable law;

     provided,  however,  that upon the  occurrence  of any event  specified  in
subsection  (f) or (g) of Section  8.01,  the  obligation of each Lender to make
Loans  shall  automatically  terminate,  the  unpaid  principal  amount  of  all
outstanding  Loans  and all  interest  and  other  amounts  as  aforesaid  shall
automatically  become due and payable,  in each case without  further act of the
Administrative  Agent or any  Lender or  notice  of any  kind,  all of which are
hereby expressly waived.

     ARTICLE 4. ADMINISTRATIVE AGENT

     ARTICLE 4.01 Appointment and Authorization of  Administrative  Agent . Each
Lender hereby  irrevocably  (subject to Section 9.09)  appoints,  designates and
authorizes the Administrative  Agent to take such action on its behalf under the
provisions  of this  Agreement and each other Loan Document and to exercise such
powers and perform such duties as are expressly  delegated to it by the terms of
this  Agreement  or any other Loan  Document,  together  with such powers as are
reasonably  incidental  thereto.  Notwithstanding  any provision to the contrary
contained  elsewhere  herein or in any other Loan Document,  the  Administrative
Agent shall not have any duties or responsibilities,  except those expressly set
forth herein, nor shall the  Administrative  Agent have or be deemed to have any
fiduciary relationship with any Lender or participant, and no implied covenants,
functions,  responsibilities,  duties,  obligations or liabilities shall be read
into this  Agreement or any other Loan  Document or otherwise  exist against the
Administrative Agent. Without limiting the generality of the foregoing sentence,
the  use of the  term  "agent"  herein  and in the  other  Loan  Documents  with
reference to the  Administrative  Agent is not intended to connote any fiduciary
or other implied (or express)  obligations  arising under agency doctrine of any
applicable law. Instead,  such term is used merely as a matter of market custom,
and is intended to create or reflect only an administrative relationship between
independent contracting parties.

     ARTICLE 4.02  Delegation of Duties . The  Administrative  Agent may execute
any of its duties under this  Agreement or any other Loan Document by or through
agents,  employees  or  attorneys-in-fact  and  shall be  entitled  to advice of
counsel and other  consultants or experts  concerning all matters  pertaining to
such  duties.  The  Administrative  Agent  shall  not  be  responsible  for  the
negligence or misconduct of any agent or attorney-in-fact that it selects in the
absence of gross negligence or willful misconduct.

     ARTICLE 4.03 Liability of  Administrative  Agent . No Agent-Related  Person
shall (a) be liable for any  action  taken or omitted to be taken by any of them
under or in  connection  with this  Agreement or any other Loan  Document or the
transactions contemplated hereby (except for its own gross negligence or willful
misconduct in connection with its duties expressly set forth herein),  or (b) be
responsible  in any  manner  to any  Lender  or  participant  for  any  recital,
statement,  representation  or  warranty  made by any Loan Party or any  officer
thereof,  contained herein or in any other Loan Document, or in any certificate,
report,  statement or other document referred to or provided for in, or received
by the  Administrative  Agent under or in connection with, this Agreement or any
other Loan Document, or the validity, effectiveness, genuineness, enforceability
or sufficiency of this Agreement or any other Loan Document,  or for any failure
of any  Loan  Party or any  other  party to any Loan  Document  to  perform  its
obligations hereunder or thereunder.  No Agent-Related Person shall be under any
obligation  to any Lender or  participant  to  ascertain or to inquire as to the
observance or performance  of any of the agreements  contained in, or conditions
of, this  Agreement or any other Loan  Document,  or to inspect the  properties,
books or records of any Loan Party or any Affiliate thereof.

     ARTICLE 4.04 Reliance by Administrative Agent .

     (a) The Administrative  Agent shall be entitled to rely, and shall be fully
protected in relying, upon any writing,  communication,  signature,  resolution,
representation,  notice,  consent,  certificate,  affidavit,  letter,  telegram,
facsimile,   telex  or  telephone  message,   statement  or  other  document  or
conversation  believed by it to be genuine and correct and to have been  signed,
sent or made by the proper Person or Persons,  and upon advice and statements of
legal counsel (including counsel to any Loan Party), independent accountants and
other experts selected by the  Administrative  Agent. The  Administrative  Agent
shall be fully  justified  in failing or refusing  to take any action  under any
Loan Document  unless it shall first receive such advice or  concurrence  of the
Required Lenders as it deems appropriate and, if it so requests,  it shall first
be indemnified to its  satisfaction by the Lenders against any and all liability
and expense  which may be incurred  by it by reason of taking or  continuing  to
take any such  action.  The  Administrative  Agent  shall in all  cases be fully
protected in acting,  or in refraining from acting,  under this Agreement or any
other Loan  Document  in  accordance  with a request or consent of the  Required
Lenders or all the  Lenders,  if required  hereunder,  and such  request and any
action  taken or failure to act pursuant  thereto  shall be binding upon all the
Lenders and participants. Where this Agreement expressly permits or prohibits an
action unless the Required Lenders otherwise determine, the Administrative Agent
shall, and in all other instances,  the Administrative  Agent may, but shall not
be  required  to,  initiate  any  solicitation  for the consent or a vote of the
Lenders.

     (b) For purposes of determining compliance with the conditions specified in
Section 4.01, each Lender that has signed this Agreement shall be deemed to have
consented  to,  approved or accepted or to be satisfied  with,  each document or
other matter either sent by the Administrative Agent to such Lender for consent,
approval,  acceptance or satisfaction, or required thereunder to be consented to
or approved by or acceptable or satisfactory to a Lender.

     ARTICLE  4.05  Notice of Default . The  Administrative  Agent  shall not be
deemed to have  knowledge or notice of the occurrence of any Default or Event of
Default,  except with respect to defaults in the payment of principal,  interest
and fees required to be paid to the Administrative  Agent for the account of the
Lenders, unless the Administrative Agent shall have received written notice from
a Lender or the Borrower referring to this Agreement, describing such Default or
Event of Default and  stating  that such  notice is a "notice of  default."  The
Administrative  Agent will notify the Lenders of its receipt of any such notice.
The Administrative  Agent shall take such action with respect to such Default or
Event of Default as may be directed by the Required  Lenders in accordance  with
Article VIII; provided,  however, that unless and until the Administrative Agent
has received any such direction,  the Administrative Agent may (but shall not be
obligated to) take such action, or refrain from taking such action, with respect
to such  Default or Event of Default as it shall deem  advisable  or in the best
interest of the Lenders.

     ARTICLE 4.06 Credit Decision;  Disclosure of Information by  Administrative
Agent . Each  Lender  acknowledges  that no  Agent-Related  Person  has made any
representation  or warranty to it, and that no act by the  Administrative  Agent
hereinafter taken,  including any consent to and acceptance of any assignment or
review of the  affairs  of any Loan  Party or any  Affiliate  thereof,  shall be
deemed to constitute any representation or warranty by any Agent-Related  Person
to any Lender as to any matter,  including  whether  Agent-Related  Persons have
disclosed  material  information in their possession.  Each Lender represents to
the  Administrative  Agent that it has,  independently and without reliance upon
any  Agent-Related  Person and based on such documents and information as it has
deemed  appropriate,  made  its own  appraisal  of and  investigation  into  the
business,  prospects,  operations,  property,  financial and other condition and
creditworthiness of the Loan Parties and their respective Subsidiaries,  and all
applicable  bank  or  other   regulatory  Laws  relating  to  the   transactions
contemplated  hereby, and made its own decision to enter into this Agreement and
to extend  credit to the  Borrower and the other Loan  Parties  hereunder.  Each
Lender also represents that it will, independently and without reliance upon any
Agent-Related  Person and based on such  documents and  information  as it shall
deem  appropriate  at the  time,  continue  to  make  its own  credit  analysis,
appraisals and decisions in taking or not taking action under this Agreement and
the other Loan Documents,  and to make such investigations as it deems necessary
to inform itself as to the business, prospects,  operations, property, financial
and other  condition  and  creditworthiness  of the  Borrower and the other Loan
Parties.  Except for notices,  reports and other documents expressly required to
be  furnished  to  the  Lenders  by  the   Administrative   Agent  herein,   the
Administrative  Agent shall not have any duty or  responsibility  to provide any
Lender with any credit or other information concerning the business,  prospects,
operations,  property,  financial and other condition or creditworthiness of any
of the Loan Parties or any of their  respective  Affiliates  which may come into
the possession of any Agent-Related Person.

     ARTICLE 4.07  Indemnification of Administrative  Agent . Whether or not the
transactions  contemplated  hereby are consummated,  the Lenders shall severally
indemnify upon demand each Agent-Related Person (to the extent not reimbursed by
or on behalf of any Loan Party and without  limiting the  obligation of any Loan
Party to do so), pro rata, and hold harmless each Agent-Related  Person from and
against any and all Indemnified  Liabilities incurred by it; provided,  however,
that no Lender  shall be liable for the payment to any  Agent-Related  Person of
any portion of such Indemnified  Liabilities  resulting from such Person's gross
negligence or willful  misconduct;  provided,  however,  that no action taken in
accordance  with the  directions  of the  Required  Lenders  shall be  deemed to
constitute gross negligence or willful  misconduct for purposes of this Section.
Without   limitation  of  the  foregoing,   each  Lender  shall   reimburse  the
Administrative  Agent  upon  demand  for  its  ratable  share  of any  costs  or
out-of-pocket expenses (including Attorney Costs) incurred by the Administrative
Agent in connection with the preparation,  execution, delivery,  administration,
modification,  amendment or enforcement  (whether  through  negotiations,  legal
proceedings  or  otherwise)  of,  or  legal  advice  in  respect  of  rights  or
responsibilities under, this Agreement, any other Loan Document, or any document
contemplated  by or  referred to herein,  to the extent that the  Administrative
Agent is not reimbursed  for such expenses by or on behalf of the Borrower.  The
undertaking in this Section shall survive  termination of the  Commitments,  the
payment of all  Obligations  hereunder and the resignation or replacement of the
Administrative Agent.

     ARTICLE  4.08  Administrative  Agent in its  Individual  Capacity . Bank of
America and its  Affiliates  may make loans to, issue  letters of credit for the
account of, accept  deposits  from,  acquire  equity  interests in and generally
engage in any kind of banking, trust, financial advisory,  underwriting or other
business with each of the Loan Parties and their respective Affiliates as though
Bank of America were not the  Administrative  Agent hereunder and without notice
to or consent of the Lenders.  The Lenders  acknowledge  that,  pursuant to such
activities,  Bank of America or its Affiliates may receive information regarding
any Loan Party or its Affiliates  (including  information that may be subject to
confidentiality  obligations in favor of such Loan Party or such  Affiliate) and
acknowledge  that the  Administrative  Agent  shall be  under no  obligation  to
provide such  information  to them.  With respect to its Loans,  Bank of America
shall have the same rights and powers  under this  Agreement as any other Lender
and may exercise such rights and powers as though it were not the Administrative
Agent and the terms  "Lender"  and  "Lenders"  include  Bank of  America  in its
individual capacity.

     ARTICLE 4.09 Successor Administrative Agent . The Administrative Agent may,
and at the request of the Required Lenders shall, resign as Administrative Agent
upon 30 days' notice to the Lenders.  If the Administrative  Agent resigns under
this  Agreement,  the Required  Lenders  shall  appoint from among the Lenders a
successor  administrative  agent for the Lenders which successor  administrative
agent  shall be  consented  to by  Anixter at all times  other  than  during the
existence  of an Event  of  Default  (which  consent  of  Anixter  shall  not be
unreasonably  withheld or  delayed).  If no  successor  administrative  agent is
appointed prior to the effective date of the  resignation of the  Administrative
Agent, the Administrative  Agent may appoint,  after consulting with the Lenders
and Anixter, a successor  administrative agent from among the Lenders.  Upon the
acceptance of its appointment as successor administrative agent hereunder,  such
successor  administrative  agent  shall  succeed to all the  rights,  powers and
duties of the retiring  Administrative Agent and the term "Administrative Agent"
shall mean such successor  administrative agent and the retiring  Administrative
Agent's  appointment,  powers  and  duties  as  Administrative  Agent  shall  be
terminated.  After any retiring  Administrative Agent's resignation hereunder as
Administrative  Agent,  the provisions of this Article IX and Sections 10.04 and
10.13 shall inure to its benefit as to any actions  taken or omitted to be taken
by it while it was  Administrative  Agent under this Agreement.  If no successor
administrative  agent has accepted  appointment as  Administrative  Agent by the
date which is 30 days  following  a retiring  Administrative  Agent's  notice of
resignation,  the retiring Administrative Agent's resignation shall nevertheless
thereupon  become  effective  and the Lenders shall perform all of the duties of
the  Administrative  Agent  hereunder  until such time,  if any, as the Required
Lenders appoint a successor agent as provided for above.

     ARTICLE  4.010 Other Agents . None of the Lenders  identified on the facing
page  or  signature  pages  of  this  Agreement  as  a  "syndication  agent"  or
"documentation  agent"  shall  have any  right,  power,  obligation,  liability,
responsibility  or duty under this Agreement other than those  applicable to all
Lenders  as  such.  Without  limiting  the  foregoing,  none of the  Lenders  so
identified shall have or be deemed to have any fiduciary  relationship  with any
Lender.  Each Lender  acknowledges that it has not relied, and will not rely, on
any of the Lenders so identified in deciding to enter into this  Agreement or in
taking or not taking action hereunder. ARTICLE 5. MISCELLANEOUSARTICLE 6.

     ARTICLE 6.01  Amendments,  Etc. No amendment or waiver of any  provision of
this  Agreement or any other Loan  Document,  and no consent to any departure by
the Borrower or any other Loan Party  therefrom,  shall be  effective  unless in
writing signed by the Required  Lenders and the Borrower or the applicable  Loan
Party, as the case may be, and  acknowledged by the  Administrative  Agent,  and
each such waiver or consent shall be effective only in the specific instance and
for the  specific  purpose  for which  given;  provided,  however,  that no such
amendment,  waiver or consent shall, unless in writing and signed by each of the
Lenders directly  affected thereby and by the Borrower,  and acknowledged by the
Administrative Agent, do any of the following:

     (a) extend or  increase  the  commitment  of any Lender (or  reinstate  any
Commitment  terminated  pursuant to Section 8.02), except for any such extension
made in accordance with Section 2.12;

     (b)  postpone any date fixed by this  Agreement or any other Loan  Document
for any payment of principal, interest, fees or other amounts due to the Lenders
(or any of them) hereunder or under any other Loan Document;

     (c) reduce the principal of, or the rate of interest  specified  herein on,
any Loan,  or (subject  to clause  (ii) of the proviso  below) any fees or other
amounts payable hereunder or under any other Loan Document;  provided,  however,
that only the consent of the  Required  Lenders  shall be necessary to amend the
definition of "Default  Rate" or to waive any  obligation of the Borrower to pay
interest at the Default Rate;

     (d) change the percentage of the Aggregate  Commitments or of the aggregate
unpaid principal amount of the Loans which is required for the Lenders or any of
them to take any action hereunder;

     (e) change the  definition  of "Required  Lenders" or the Pro Rata Share or
Voting  Percentage  (or the  definitions  used  therein)  of any Lender or amend
Section 2.10(c) or 2.11;

     (f) amend this Section,  or Section 2.12, or any provision herein providing
for consent or other action by all the Lenders; or

     (g) release any material Guarantor from the Guaranty;

     and,  provided  further,  that (i) no amendment,  waiver or consent  shall,
unless in writing  and signed by the  Administrative  Agent in  addition  to the
Required  Lenders or all the Lenders,  as the case may be,  affect the rights or
duties of the  Administrative  Agent  under  this  Agreement  or any other  Loan
Document;  and (ii) the Agent/Arranger  Fee Letter may be amended,  or rights or
privileges thereunder waived, in a writing executed only by the parties thereto.
Notwithstanding  anything to the contrary herein,  any Lender that has failed to
fund any portion of the Loans  required to be funded by it  hereunder  shall not
have any right to  approve  or  disapprove  any  amendment,  waiver  or  consent
hereunder,  except that the Pro Rata Share of such  Lender may not be  increased
without the consent of such Lender.

     ARTICLE 6.02 Notices and Other Communications; Facsimile Copies.

     (a) General.  Unless otherwise  expressly  provided herein, all notices and
other  communications  provided for hereunder shall be in writing  (including by
facsimile  transmission)  and  mailed,  faxed  or  delivered,  to  the  address,
facsimile  number or (subject to subsection (c) below)  electronic  mail address
specified for notices on Schedule 10.02;  or, in the case of the Borrower or the
Administrative Agent, to such other address as shall be designated by such party
in a notice to the other  parties,  and in the case of any other party,  to such
other  address as shall be  designated  by such party in a notice to Anixter and
the  Administrative  Agent. All such notices and other  communications  shall be
deemed to be given or made upon the  earlier to occur of (i)  actual  receipt by
the intended  recipient  and (ii) (A) if  delivered by hand or by courier,  when
signed for by the intended  recipient;  (B) if delivered by mail,  four Business
Days after deposit in the mails, postage prepaid; (C) if delivered by facsimile,
when sent and receipt has been  confirmed by telephone;  and (D) if delivered by
electronic  mail  (which  form of  delivery  is  subject  to the  provisions  of
subsection (c) below), when delivered; provided, however, that notices and other
communications to the  Administrative  Agent pursuant to Article II shall not be
effective  until  actually  received  by  such  Person.   Any  notice  or  other
communication  permitted to be given,  made or confirmed by telephone  hereunder
shall be given,  made or confirmed by means of a telephone  call to the intended
recipient at the number  specified on Schedule  10.02,  it being  understood and
agreed  that a voicemail  message  shall in no event be  effective  as a notice,
communication or confirmation hereunder.

     (b) Effectiveness of Facsimile Documents and Signatures. Loan Documents may
be  transmitted  and/or  signed  by  facsimile.  The  effectiveness  of any such
documents and signatures  shall,  subject to applicable Law, have the same force
and  effect  as  manually-signed  originals  and  shall be  binding  on all Loan
Parties,  the Administrative Agent and the Lenders. The Administrative Agent may
also  require  that  any  such  documents  and  signatures  be  confirmed  by  a
manually-signed original thereof; provided, however, that the failure to request
or deliver the same shall not limit the effectiveness of any facsimile  document
or signature.

     (c)  Limited Use of  Electronic  Mail.  Electronic  mail and  internet  and
intranet websites may be used only to distribute routine communications, such as
financial statements and other information, and to distribute Loan Documents for
execution by the parties thereto, and may not be used for any other purpose.

     (d) Reliance by Administrative  Agent and Lenders. The Administrative Agent
and the Lenders  shall be  entitled to rely and act upon any notices  (including
telephonic  Committed  Loan  Notices)  purportedly  given by or on behalf of the
Borrower  even if (i) such notices were not made in a manner  specified  herein,
were  incomplete  or were not  preceded  or followed by any other form of notice
specified  herein,  or (ii) the terms  thereof,  as understood by the recipient,
varied  from  any  confirmation  thereof.  The  Borrower  shall  indemnify  each
Agent-Related  Person and each  Lender  from all  losses,  costs,  expenses  and
liabilities   resulting  from  the  reliance  by  such  Person  on  each  notice
purportedly given by or on behalf of the Borrower. All telephonic notices to and
other  communications  with the  Administrative  Agent  may be  recorded  by the
Administrative  Agent,  and each of the parties  hereto hereby  consents to such
recording.

     ARTICLE 6.03 No Waiver;  Cumulative  Remedies . No failure by any Lender or
the  Administrative  Agent to  exercise,  and no delay  by any  such  Person  in
exercising,  any right,  remedy, power or privilege hereunder shall operate as a
waiver thereof;  nor shall any single or partial exercise of any right,  remedy,
power or privilege  hereunder  preclude any other or further exercise thereof or
the  exercise  of any other  right,  remedy,  power or  privilege.  The  rights,
remedies,  powers and privileges  herein or therein  provided are cumulative and
not exclusive of any rights, remedies, powers and privileges provided by law.

     ARTICLE 6.04 Attorney Costs, Expenses and Taxes . Anixter agrees (a) to pay
or reimburse  the  Administrative  Agent for all  reasonable  costs and expenses
incurred  in  connection  with the  development,  preparation,  negotiation  and
execution of this  Agreement  and the other Loan  Documents  and any  amendment,
waiver,  consent or other  modification  of the  provisions  hereof and  thereof
(whether   or  not  the   transactions   contemplated   hereby  or  thereby  are
consummated),  and  the  consummation  and  administration  of the  transactions
contemplated hereby and thereby, including all Attorney Costs, and (b) to pay or
reimburse the Administrative  Agent and each Lender for all reasonable costs and
expenses incurred in connection with the enforcement,  attempted enforcement, or
preservation  of any rights or remedies  under this  Agreement or the other Loan
Documents  (including all such costs and expenses  incurred during any "workout"
or restructuring in respect of the Obligations and during any legal  proceeding,
including any  proceeding  under any Debtor Relief Law),  including all Attorney
Costs.  The  foregoing  costs and  expenses  shall  include all search,  filing,
recording,  title  insurance  and  appraisal  charges and fees and taxes related
thereto,   and  other  reasonable   out-of-pocket   expenses   incurred  by  the
Administrative  Agent and the cost of independent  public  accountants and other
outside  experts  retained  by  the  Administrative  Agent  or any  Lender.  The
agreements in this Section shall survive the  termination of the Commitments and
repayment of all the other Obligations.

     ARTICLE  6.05   Indemnification  by  the  Borrower.   Whether  or  not  the
transactions  contemplated  hereby  are  consummated,  the  Borrower  agrees  to
indemnify,  save and hold harmless each  Agent-Related  Person,  each Lender and
their respective Affiliates, directors, officers, employees, counsel, agents and
attorneys-in-fact (collectively the "Indemnitees") from and against: (a) any and
all claims,  demands,  actions or causes of action that are asserted against any
Indemnitee  by any Person  (other than the  Administrative  Agent or any Lender)
relating  directly or indirectly to a claim,  demand,  action or cause of action
that such Person asserts or may assert against any Loan Party,  any Affiliate of
any Loan Party or any of their respective officers or directors; (b) any and all
claims, demands,  actions or causes of action that may at any time (including at
any time following  repayment of the  Obligations and the resignation or removal
of the  Administrative  Agent or the  replacement  of any Lender) be asserted or
imposed  against  any  Indemnitee,  arising  out of or  relating  to,  the  Loan
Documents,  any  predecessor  loan  documents,  the  Commitments,   the  use  or
contemplated use of the proceeds of any Committed Borrowing, or the relationship
of any Loan Party, the Administrative Agent and the Lenders under this Agreement
or any other Loan Document;  (c) any administrative or investigative  proceeding
by any  Governmental  Authority  arising  out of or related to a claim,  demand,
action or cause of action  described in subsection (a) or (b) above; and (d) any
and all liabilities (including liabilities under indemnities),  losses, costs or
expenses  (including  Attorney Costs) that any Indemnitee suffers or incurs as a
result of the assertion of any foregoing claim, demand,  action, cause of action
or  proceeding,  or as a result of the  preparation of any defense in connection
with any foregoing claim, demand, action, cause of action or proceeding,  in all
cases,  whether or not  arising  out of the  negligence  of an  Indemnitee,  and
whether or not an Indemnitee is a party to such claim, demand,  action, cause of
action  or  proceeding  (all  the  foregoing,   collectively,  the  "Indemnified
Liabilities");  provided that no Indemnitee shall be entitled to indemnification
for any claim caused by its own gross  negligence  or willful  misconduct or for
any loss  asserted  against it by another  Indemnitee.  The  agreements  in this
Section shall survive the  termination of the  Commitments  and repayment of all
the other Obligations.

     ARTICLE 6.06  Payments Set Aside . To the extent that the Borrower  makes a
payment to the Administrative  Agent or any Lender, or the Administrative  Agent
or any Lender  exercises its right of set-off,  and such payment or the proceeds
of such set-off or any part thereof is subsequently invalidated,  declared to be
fraudulent or  preferential,  set aside or required  (including  pursuant to any
settlement  entered  into by the  Administrative  Agent  or such  Lender  in its
discretion)  to be  repaid  to a  trustee,  receiver  or  any  other  party,  in
connection  with any proceeding  under any Debtor Relief Law or otherwise,  then
(a) to the extent of such recovery,  the  obligation or part thereof  originally
intended to be satisfied shall be revived and continued in full force and effect
as if such payment had not been made or such set-off had not  occurred,  and (b)
each Lender severally agrees to pay to the Administrative  Agent upon demand its
applicable share of any amount so recovered from or repaid by the Administrative
Agent,  plus  interest  thereon  from the date of such  demand  to the date such
payment is made at a rate per annum equal to the Federal Funds Rate from time to
time in effect.

     ARTICLE 6.07 Successors and Assigns .

     (a) The provisions of this Agreement shall be binding upon and inure to the
benefit  of the  parties  hereto and their  respective  successors  and  assigns
permitted hereby,  except that the Borrower may not assign or otherwise transfer
any of its rights or obligations  hereunder without the prior written consent of
each Lender (and any attempted  assignment  or transfer by the Borrower  without
such consent shall be null and void).  Nothing in this  Agreement,  expressed or
implied,  shall be construed  to confer upon any Person  (other than the parties
hereto,  their  respective  successors and assigns  permitted hereby and, to the
extent expressly  contemplated  hereby,  the Indemnitees) any legal or equitable
right, remedy or claim under or by reason of this Agreement.

     (b) Any  Lender  may  assign  to one or more  Eligible  Assignees  all or a
portion of its rights and obligations  under this Agreement  (including all or a
portion of its Commitment and the Loans at the time owing to it);  provided that
(i) except in the case of an  assignment of the entire  remaining  amount of the
assigning  Lender's  Commitment  and the Loans at the time owing to it or in the
case of an  assignment  to a Lender or an  Affiliate  of a Lender or an Approved
Fund with respect to a Lender, the aggregate amount of the Commitment (which for
this  purpose  includes  Loans  outstanding  thereunder)  subject  to each  such
assignment, determined as of the date the Assignment and Acceptance with respect
to such assignment is delivered to the  Administrative  Agent, shall not be less
than US$5,000,000,  unless each of the  Administrative  Agent and, so long as no
Event of Default has  occurred and is  continuing,  Anixter  otherwise  consents
(each such  consent  not to be  unreasonably  withheld  or  delayed),  (ii) each
partial assignment shall be made as an assignment of a proportionate part of all
the assigning  Lender's rights and obligations under this Agreement with respect
to the  Loans  or the  Commitment  assigned,  and  (iii)  the  parties  to  each
assignment shall execute and deliver to the  Administrative  Agent an Assignment
and  Acceptance,  together with a processing  and  recordation  fee of US$3,500.
Subject to acceptance and recording thereof by the Administrative Agent pursuant
to subsection  (c) of this Section,  from and after the effective date specified
in each Assignment and Acceptance,  the Eligible Assignee  thereunder shall be a
party hereto and, to the extent of the interest  assigned by such Assignment and
Acceptance,  have the rights and  obligations of a Lender under this  Agreement,
and the  assigning  Lender  thereunder  shall,  to the  extent  of the  interest
assigned by such  Assignment and  Acceptance,  be released from its  obligations
under this Agreement (and, in the case of an Assignment and Acceptance  covering
all of the assigning Lender's rights and obligations under this Agreement,  such
Lender shall cease to be a party hereto but shall continue to be entitled to the
benefits of Sections 3.07,  10.04 and 10.05).  Upon request,  the Borrower shall
execute and deliver new or  replacement  Committed  Loan Notes to the  assigning
Lender and the assignee Lender. Any assignment or transfer by a Lender of rights
or obligations  under this  Agreement that does not comply with this  subsection
shall be treated for  purposes of this  Agreement  as a sale by such Lender of a
participation  in such rights and  obligations in accordance with subsection (d)
of this Section.

     (c) The Administrative Agent, acting solely for this purpose as an agent of
the Borrower, shall maintain at the Administrative Agent's Office a copy of each
Assignment and Acceptance  delivered to it and a register for the recordation of
the names and addresses of the Lenders,  and the  Commitments  of, and principal
amount of the Loans owing to, each Lender pursuant to the terms hereof from time
to time (the "Register").  The entries in the Register shall be conclusive,  and
the  Borrower,  the  Administrative  Agent and the Lenders may treat each Person
whose name is recorded in the Register  pursuant to the terms hereof as a Lender
hereunder  for all  purposes of this  Agreement,  notwithstanding  notice to the
contrary. The Register shall be available for inspection by the Borrower and any
Lender,  at any  reasonable  time and from  time to time upon  reasonable  prior
notice.

     (d) Any Lender may,  without the consent of, or notice to, the  Borrower or
the  Administrative  Agent,  sell  participations  to one or more banks or other
entities (a  "Participant")  in all or a portion of such Lender's  rights and/or
obligations  under this Agreement  (including all or a portion of its Commitment
and/or the Loans owing to it); provided that (i) such Lender's obligations under
this  Agreement  shall remain  unchanged,  (ii) such Lender shall remain  solely
responsible to the other parties hereto for the performance of such  obligations
and (iii) the  Borrower,  the  Administrative  Agent and the other Lenders shall
continue to deal solely and directly  with such Lender in  connection  with such
Lender's  rights  and  obligations  under  this  Agreement.   Any  agreement  or
instrument  pursuant to which a Lender sells such a participation  shall provide
that such Lender shall retain the sole right to enforce  this  Agreement  and to
approve  any  amendment,  modification  or  waiver  of  any  provision  of  this
Agreement;  provided  that such  agreement or  instrument  may provide that such
Lender will not, without the consent of the Participant, agree to any amendment,
waiver or other  modification  that would (i)  postpone  any date upon which any
payment of money is  scheduled to be paid to such  Participant,  (ii) reduce the
principal, interest, fees or other amounts payable to such Participant, or (iii)
release all or  substantially  all the Guarantors from the Guaranty.  Subject to
subsection (e) of this Section,  the Borrower agrees that each Participant shall
be entitled to the benefits of Sections  3.01,  3.04 and 3.05 to the same extent
as if it were a Lender and had acquired its interest by  assignment  pursuant to
subsection (b) of this Section. To the extent permitted by law, each Participant
also shall be  entitled  to the  benefits  of Section  10.09 as though it were a
Lender, provided such Participant agrees to be subject to Section 2.14 as though
it were a Lender.

     (e) A  Participant  shall not be entitled  to receive  any greater  payment
under Section 3.01 or 3.04 than the  applicable  Lender would have been entitled
to receive with respect to the participation  sold to such  Participant,  unless
the sale of the  participation  to such Participant is made with Anixter's prior
written  consent.  A  Participant  that  would be a Foreign  Lender if it were a
Lender shall not be entitled to the  benefits of Section 3.01 unless  Anixter is
notified of the  participation  sold to such  Participant  and such  Participant
agrees, for the benefit of the Borrower,  to comply with Section 10.15 as though
it were a Lender.

     (f) Any Lender may at any time pledge or assign a security  interest in all
or any portion of its rights under this Agreement (including under its Committed
Loan Notes, if any) to secure  obligations of such Lender,  including any pledge
or assignment to secure obligations to a Federal Reserve Bank;  provided that no
such pledge or  assignment  shall  release a Lender from any of its  obligations
hereunder or substitute  any such pledgee or assignee for such Lender as a party
hereto.

     (g) If the consent of Anixter to an assignment  or to an Eligible  Assignee
is required hereunder  (including a consent to an assignment which does not meet
the minimum assignment  threshold  specified in clause (i) of the proviso to the
first sentence of Section  10.07(b)),  Anixter shall be deemed to have given its
consent five Business Days after the date notice  thereof has been  delivered by
the assigning Lender (through the  Administrative  Agent) unless such consent is
expressly refused by Anixter prior to such fifth Business Day.

     (h) As used herein, the following terms have the following meanings:

     "Eligible  Assignee" means (a) a Lender;  (b) an Affiliate of a Lender; (c)
an  Approved  Fund;  and (d) any other  Person  (other  than a  natural  Person)
approved  by the  Administrative  Agent,  in the  case  of any  assignment  of a
Committed Loan and,  unless (x) such Person is taking  delivery of an assignment
in connection with physical  settlement of a credit  derivatives  transaction or
(y) an Event of Default  has  occurred  and is  continuing,  Anixter  (each such
approval not to be unreasonably withheld or delayed).

     "Fund" means any Person (other than a natural  Person) that is (or will be)
engaged in making,  purchasing,  holding or otherwise  investing  in  commercial
loans and similar extensions of credit in the ordinary course of its business.

     "Approved  Fund"  means any Fund that is  administered  or managed by (a) a
Lender,  (b) an  Affiliate  of a Lender or (c) an entity or an  Affiliate  of an
entity that administers or manages a Lender.

     ARTICLE 6.08  Confidentiality  . Each of the  Administrative  Agent and the
Lenders agrees to maintain the  confidentiality  of the  Information (as defined
below),  except that Information may be disclosed (a) to its and its Affiliates'
directors,  officers, employees and agents, including accountants, legal counsel
and other advisors (it being understood that the Persons to whom such disclosure
is made will be  informed of the  confidential  nature of such  Information  and
instructed to keep such Information  confidential);  (b) to the extent requested
by any regulatory  authority;  (c) to the extent  required by applicable laws or
regulations or by any subpoena or similar legal process;  (d) to any other party
to this Agreement; (e) in connection with the exercise of any remedies hereunder
or any suit, action or proceeding  relating to this Agreement or the enforcement
of  rights  hereunder;   (f)  subject  to  an  agreement  containing  provisions
substantially the same as those of this Section, to (i) any Eligible Assignee of
or Participant  in, or any prospective  Eligible  Assignee of or Participant in,
any of its  rights or  obligations  under this  Agreement  or (ii) any direct or
indirect   contractual   counterparty  or  prospective   counterparty  (or  such
contractual counterparty's or prospective  counterparty's  professional advisor)
to any credit  derivative  transaction  relating to obligations of the Borrower;
(g) with the consent of the  Borrower;  (h) to the extent such  Information  (i)
becomes publicly available other than as a result of a breach of this Section or
(ii)  becomes  available  to  the  Administrative  Agent  or  any  Lender  on  a
nonconfidential  basis  from a source  other  than the  Borrower;  or (i) to the
National   Association   of  Insurance   Commissioners   or  any  other  similar
organization or any nationally  recognized rating agency that requires access to
information  about  a  Lender's  or  its  Affiliates'  investment  portfolio  in
connection  with ratings  issued with respect to such Lender or its  Affiliates.
For the purposes of this Section,  "Information" means all information  received
from the Borrower relating to the Borrower or its business,  other than any such
information  that is  available to the  Administrative  Agent or any Lender on a
nonconfidential basis prior to disclosure by the Borrower; provided that, in the
case of  information  received  from the Borrower  after the date  hereof,  such
information  is  clearly  identified  in  writing  at the  time of  delivery  as
confidential. Any Person required to maintain the confidentiality of Information
as  provided in this  Section  shall be  considered  to have  complied  with its
obligation  to do so if such  Person has  exercised  the same  degree of care to
maintain the  confidentiality of such Information as such Person would accord to
its own confidential information.

     ARTICLE  6.09  Set-off . In  addition  to any  rights and  remedies  of the
Lenders  provided by law, upon the occurrence and during the  continuance of any
Event of Default,  each Lender is  authorized at any time and from time to time,
without  prior notice to the  Borrower or any other Loan Party,  any such notice
being  waived  by the  Borrower  (on its own  behalf  and on behalf of each Loan
Party) to the fullest extent  permitted by law, to set off and apply any and all
deposits (general or special, time or demand,  provisional or final) at any time
held by, and other  indebtedness at any time owing by, such Lender to or for the
credit  or the  account  of the  respective  Loan  Parties  against  any and all
Obligations  owing to such Lender,  now or hereafter  existing,  irrespective of
whether or not the  Administrative  Agent or such Lender  shall have made demand
under this Agreement or any other Loan Document.  Each Lender agrees promptly to
notify  Anixter  and  the  Administrative  Agent  after  any  such  set-off  and
application  made by such Lender;  provided,  however,  that the failure to give
such notice shall not affect the validity of such set-off and application.

     ARTICLE 6.010 Interest Rate  Limitation .  Notwithstanding  anything to the
contrary contained in any Loan Document,  the interest paid or agreed to be paid
under the Loan  Documents  shall not exceed  the  maximum  rate of  non-usurious
interest permitted by applicable Law (the "Maximum Rate"). If the Administrative
Agent or any Lender shall receive interest in an amount that exceeds the Maximum
Rate, the excess  interest shall be applied to the principal of the Loans or, if
it exceeds  such unpaid  principal,  refunded to the  Borrower.  In  determining
whether the interest  contracted for, charged, or received by the Administrative
Agent or a Lender  exceeds  the  Maximum  Rate,  such  Person may, to the extent
permitted by applicable Law, (a)  characterize any payment that is not principal
as an expense,  fee,  or premium  rather than  interest,  (b) exclude  voluntary
prepayments and the effects thereof, and (c) amortize,  prorate,  allocate,  and
spread in equal or unequal  parts the total  amount of interest  throughout  the
contemplated term of the Obligations.

     ARTICLE 6.011  Counterparts . This Agreement may be executed in one or more
counterparts,  each of  which  shall be  deemed  an  original,  but all of which
together shall constitute one and the same instrument.

     ARTICLE 6.012  Integration . This  Agreement,  together with the other Loan
Documents, comprises the complete and integrated agreement of the parties on the
subject matter hereof and thereof and supersedes all prior  agreements,  written
or oral,  on such  subject  matter.  In the event of any  conflict  between  the
provisions  of  this  Agreement  and  those  of any  other  Loan  Document,  the
provisions  of this  Agreement  shall  control;  provided  that the inclusion of
supplemental  rights or  remedies  in favor of the  Administrative  Agent or the
Lenders in any other  Loan  Document  shall not be deemed a  conflict  with this
Agreement.  Each Loan Document was drafted with the joint  participation  of the
respective  parties thereto and shall be construed  neither against nor in favor
of any party, but rather in accordance with the fair meaning thereof.

     ARTICLE   6.013   Survival  of   Representations   and   Warranties  .  All
representations  and warranties made hereunder and in any other Loan Document or
other document delivered pursuant hereto or thereto or in connection herewith or
therewith  shall  survive the execution  and delivery  hereof and thereof.  Such
representations  and  warranties  have  been  or  will  be  relied  upon  by the
Administrative  Agent and each Lender,  regardless of any investigation  made by
the  Administrative  Agent or any Lender or on their behalf and  notwithstanding
that the Administrative  Agent or any Lender may have had notice or knowledge of
any  Default  or Event of Default at the time of any  Committed  Borrowing,  and
shall  continue  in full  force  and  effect  as long as any  Loan or any  other
Obligation shall remain unpaid or unsatisfied.

     ARTICLE 6.014  Severability . Any provision of this Agreement and the other
Loan  Documents  to  which  the  Borrower  is a  party  that  is  prohibited  or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability  without  invalidating the
remaining  provisions  thereof,  and any such prohibition or unenforceability in
any jurisdiction shall not invalidate or render  unenforceable such provision in
any other jurisdiction.

     ARTICLE 6.015 Foreign Lenders . Each Lender that is a "foreign corporation,
partnership or trust" within the meaning of the Code (a "Foreign  Lender") shall
deliver to the Administrative  Agent, prior to receipt of any payment subject to
withholding  under the Code (or after  accepting  an  assignment  of an interest
herein),  two duly  signed  completed  copies of either  IRS Form  W-8BEN or any
successor  thereto  (relating  to such Person and  entitling  it to an exemption
from, or reduction of, withholding tax on all payments to be made to such Person
by the Borrower  pursuant to this Agreement) or IRS Form W-8ECI or any successor
thereto  (relating  to all  payments to be made to such  Person by the  Borrower
pursuant to this  Agreement) or such other evidence  satisfactory to Anixter and
the  Administrative  Agent that such Person is entitled to an exemption from, or
reduction of, US withholding  tax.  Thereafter and from time to time,  each such
Person shall (a) promptly  submit to the  Administrative  Agent such  additional
duly completed and signed copies of one of such forms (or such  successor  forms
as shall be  adopted  from time to time by the  relevant  United  States  taxing
authorities)  as may then be available under then current United States laws and
regulations  to avoid,  or such evidence as is  satisfactory  to Anixter and the
Administrative  Agent of any  available  exemption  from or reduction of, United
States withholding taxes in respect of all payments to be made to such Person by
the Borrower  pursuant to this  Agreement,  (b) promptly notify the Agent of any
change  in  circumstances  which  would  modify or render  invalid  any  claimed
exemption  or  reduction,  and (c) take such  steps as shall  not be  materially
disadvantageous to it, in the reasonable  judgment of such Lender, and as may be
reasonably  necessary  (including the  re-designation  of its Lending Office) to
avoid any requirement of applicable Laws that the Borrower make any deduction or
withholding for taxes from amounts payable to such Person.  If such Person fails
to deliver the above forms or other documentation, then the Administrative Agent
may withhold  from any interest  payment to such Person an amount  equivalent to
the  applicable  withholding  tax imposed by Sections 1441 and 1442 of the Code,
without reduction. If any Governmental Authority asserts that the Administrative
Agent did not properly  withhold any tax or other amount from  payments  made in
respect of such Person,  such Person shall  indemnify the  Administrative  Agent
therefor,  including  all  penalties  and  interest,  any taxes  imposed  by any
jurisdiction on the amounts  payable to the Agent under this Section,  and costs
and  expenses  (including  Attorney  Costs)  of the  Administrative  Agent.  The
obligation  of the Lenders  under this Section  shall survive the payment of all
Obligations and the resignation or replacement of the Administrative Agent.

     ARTICLE 6.016 Removal and Replacement of Lenders .

     (a) Under any  circumstances  set forth herein providing that Anixter shall
have the  right to remove  or  replace  a Lender  as a party to this  Agreement,
Anixter may, upon notice to such Lender and the Administrative Agent, (i) remove
such Lender by terminating such Lender's  Commitment or (ii) replace such Lender
by  causing  such  Lender to  assign  its  Commitment  (without  payment  of any
assignment  fee)  pursuant to Section  10.07(b) to one or more other  Lenders or
Eligible  Assignees  procured by  Anixter;  provided,  however,  that if Anixter
elects to  exercise  such right with  respect to any Lender  pursuant to Section
3.06(b),  it shall be  obligated  to remove or replace,  as the case may be, all
Lenders that have made similar  requests  for  compensation  pursuant to Section
3.01 or 3.04. The Borrower shall (x) pay in full all principal,  interest,  fees
and other  amounts  owing to such  Lender  through  the date of  termination  or
assignment  (including  any amounts  payable  pursuant to Section  3.05) and (y)
release such Lender from its obligations  under the Loan  Documents.  Any Lender
being  replaced  shall execute and deliver an  Assignment  and  Acceptance  with
respect to such Lender's Commitment and outstanding  Committed  Borrowings.  The
Arranger shall distribute  amended  Allocation Notices to reflect changes in the
identities of the Lenders and adjustments of their respective Commitments and/or
Pro Rata Shares resulting from any such removal or replacement.

     (b) In  order  to  make  all  the  Lenders'  interests  in any  outstanding
Committed  Borrowings  ratable in  accordance  with any  revised Pro Rata Shares
after  giving  effect to the removal or  replacement  of a Lender,  the Borrower
shall  pay  or  prepay,  if  necessary,  on  the  effective  date  thereof,  all
outstanding Committed Loans of all Lenders,  together with any amounts due under
Section 3.05. The Borrower may then request  Committed Loans from the Lenders in
accordance with their revised Pro Rata Shares. The Borrower may net any payments
required  hereunder  against any funds being  provided by any Lender or Eligible
Assignee  replacing  a  terminating  Lender.  The  effect for  purposes  of this
Agreement shall be the same as if separate transfers of funds had been made with
respect thereto.

     (c) This Section  shall  supersede  any  provision in Section  10.01 to the
contrary.

     ARTICLE 6.017 Governing Law .

     (a) THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE  WITH,
THE LAW OF THE  STATE  OF  ILLINOIS  APPLICABLE  TO  AGREEMENTS  MADE  AND TO BE
PERFORMED ENTIRELY WITHIN SUCH STATE; PROVIDED THAT THE ADMINISTRATIVE AGENT AND
EACH LENDER SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW.

     (b) ANY LEGAL ACTION OR  PROCEEDING  WITH RESPECT TO THIS  AGREEMENT OR ANY
OTHER  LOAN  DOCUMENT  MAY BE  BROUGHT  IN THE  COURTS OF THE STATE OF  ILLINOIS
SITTING  IN COOK  COUNTY,  ILLINOIS,  OR OF THE UNITED  STATES FOR THE  NORTHERN
DISTRICT OF SUCH STATE,  AND BY EXECUTION  AND DELIVERY OF THIS  AGREEMENT,  THE
BORROWER,  THE ADMINISTRATIVE AGENT AND EACH LENDER CONSENTS,  FOR ITSELF AND IN
RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE  JURISDICTION OF THOSE COURTS. THE
BORROWER,  THE  ADMINISTRATIVE  AGENT AND EACH  LENDER  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 ANY LOAN
DOCUMENT OR OTHER DOCUMENT RELATED  THERETO.  THE BORROWER,  THE  ADMINISTRATIVE
AGENT AND EACH LENDER WAIVES PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER
PROCESS,  WHICH  MAY BE MADE BY ANY  OTHER  MEANS  PERMITTED  BY THE LAW OF SUCH
STATE.

     ARTICLE  6.018  Waiver  of  Right  to  Trial  by Jury . EACH  PARTY TO THIS
AGREEMENT  HEREBY  EXPRESSLY  WAIVES  ANY  RIGHT TO TRIAL BY JURY OF ANY  CLAIM,
DEMAND,  ACTION OR CAUSE OF ACTION ARISING UNDER ANY LOAN DOCUMENT OR IN ANY WAY
CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR
ANY OF THEM WITH  RESPECT  TO ANY LOAN  DOCUMENT,  OR THE  TRANSACTIONS  RELATED
THERETO,  IN EACH CASE WHETHER NOW EXISTING OR  HEREAFTER  ARISING,  AND WHETHER
FOUNDED IN  CONTRACT  OR TORT OR  OTHERWISE;  AND EACH PARTY  HEREBY  AGREES AND
CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED
BY COURT TRIAL WITHOUT A JURY,  AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN
ORIGINAL  COUNTERPART  OR A COPY OF THIS  SECTION  WITH  ANY  COURT  AS  WRITTEN
EVIDENCE OF THE CONSENT OF THE  SIGNATORIES  HERETO TO THE WAIVER OF THEIR RIGHT
TO TRIAL BY JURY. ARTICLE 1.01

<PAGE>

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

                            ANIXTER INC., as Borrower

                                       By:
                                      Name:
                                     Title:

                 BANK OF AMERICA, N.A., as Administrative Agent

                                       By:
                                      Name:
                                     Title:

                       BANK OF AMERICA, N.A., as a Lender

                                       By:
                                      Name:
                                     Title:

                  BANK ONE, NA, as Syndication Agent and Lender

                                       By:
                                      Name:
                                     Title:

<PAGE>

           THE BANK OF NOVA SCOTIA, as Documentation Agent and Lender

                                       By:
                                      Name:
                                     Title:

<PAGE>

                SUNTRUST BANK, as Managing Agent and as a Lender

                                       By:
                                      Name:
                                     Title:

<PAGE>

           CREDIT LYONNAIS CHICAGO BRANCH, as Managing Agent and as a
                                     Lender

                                       By:
                                      Name:
                                     Title:

<PAGE>

             BANCA COMMERCIALE ITALIANA CHICAGO BRANCH, as a Lender

                                       By:
                                      Name:
                                     Title:

<PAGE>

            BANCA NAZIONALE DEL LAVORO S.P.A. - NEW YORK BRANCH, as a
                                     Lender

                                       By:
                                      Name:
                                     Title:

<PAGE>

            BANK AUSTRIA CREDITANSTALT CORPORATE FINANCE, INC., as a
                                     Lender

                                       By:
                                      Name:
                                     Title:

                                       By:
                                      Name:
                                     Title:

<PAGE>

                        THE BANK OF NEW YORK, as a Lender

                                       By:
                                      Name:
                                     Title:

<PAGE>

                   THE DAI-ICHI KANGYO BANK, LTD., as a Lender

                                       By:
                                      Name:
                                     Title:

<PAGE>

                         FIRSTAR BANK, N.A., as a Lender

                                       By:
                                      Name:
                                     Title:

<PAGE>

                       THE FUJI BANK, LIMITED, as a Lender

                                       By:
                                      Name:
                                     Title:

<PAGE>

                         NATIONAL CITY BANK, as a Lender

                                       By:
                                      Name:
                                     Title:

<PAGE>

              NATIONAL WESTMINSTER BANK, PLC NEW YORK AND/OR NASSAU
                              BRANCHES, as a Lender

                                       By:
                                      Name:
                                     Title:

<PAGE>

                     THE NORTHERN TRUST COMPANY, as a Lender

                                       By:
                                      Name:
                                     Title:

<PAGE>

                           PNC BANK, N.A., as a Lender

                                       By:
                                      Name:
                                     Title:

<PAGE>

                      THE SAKURA BANK, LIMITED, as a Lender

                                       By:
                                      Name:
                                     Title:

<PAGE>

                   U.S. BANK NATIONAL ASSOCIATION, as a Lender

                                       By:
                                      Name:
                                     Title:

<PAGE>

                        WACHOVIA BANK, N.A., as a Lender

                                       By:
                                      Name:
                                     Title:

<PAGE>

               WELLS FARGO BANK, NATIONAL ASSOCIATION, as a Lender

                                       By:
                                      Name:
                                     Title:

                                       By:
                                      Name:
                                     Title:

<PAGE>

                                  SCHEDULE 5.03

                              EXISTING SUBSIDIARIES

<PAGE>

                                  SCHEDULE 5.04

                                    CONFLICTS

<PAGE>

                                  SCHEDULE 5.08

                                   LITIGATION

<PAGE>

                                  SCHEDULE 5.16

                              ENVIRONMENTAL MATTERS

<PAGE>

                                  SCHEDULE 5.20

                         JOINT VENTURES AND PARTNERSHIPS

<PAGE>

                                  SCHEDULE 6.07

                                    INSURANCE

<PAGE>

                                SCHEDULE 7.01(ii)

                              EXISTING INDEBTEDNESS

<PAGE>

                                SCHEDULE 7.02(b)

                                 EXISTING LIENS

<PAGE>

                                  SCHEDULE 7.03

                              EXISTING INVESTMENTS

<PAGE>

                                 SCHEDULE 10.02

                   EUROCURRENCY AND DOMESTIC LENDING OFFICES,
                              ADDRESSES FOR NOTICES

                    ANIXTER INC. AND BORROWING SUBSIDIARIES
                                c/o Anixter Inc.
                                 4711 Golf Rd.
                                Skokie, IL 60076
                              Attn: Rod Shoemaker
                            Telephone: (847) 677-2600
                            Facsimile: (847) 677-8557
                   Electronic Mail: rod.shoemaker@anixter.com

                             BANK OF AMERICA, N.A.

     Administrative  Agent's  Office and Bank of America's  Lending  Office (for
payments and Requests for Credit Extensions): Bank of America, N.A. 1850 Gateway
Blvd.,  5th Floor  CA4-706-05-09  Concord,  CA 94520 Attn: Myrna Lara Tel: (925)
675-8931  Fax:  (925)  969-2819  Electronic  Mail:  myrna.lara@bankofamerica.com
Account No.: 3750836479 Ref: Anixter Inc. ABA# 111000012

     Other Notices as Administrative Agent:

                    Bank of America, N.A., Agency Management
                         1455 Market Street, 12th Floor
                                 CA5-701-12-09
                            San Francisco, CA 94103
                              Attn: Liliana Claar
                               Tel: (415) 436-2770
                               Fax: (415) 503-5003
                 Electonic Mail: liliana.claar@bankofamerica.com

                                With a copy to:
                             Bank of America, N.A.
                             231 South LaSalle St.
                                   9th Floor
                                 IL1-231-09-38
                               Chicago, IL 60697
                                Attn: Raju Patel
                                 Vice President
                            Telephone: (312) 828-7225
                            Facsimile: (312) 987-0303
                 Electronic Mail: raju.n.patel@bankofamerica.com

               BANK ONE, NA, as Documentation Agent and a Lender

                        Requests for Credit Extensions:
                                  Bank One, NA
                                1 Bank One Plaza
                                   Suite 0088
                               Chicago, IL 60670
                             Attn: Kathy Blomquist
                            Telephone: (312) 732-2683
                            Facsimile: (312) 732-2715
                            Account No. 481152860000
                                  Ref: Anixter
                                 ABA# 071000013

                          Eurocurrency Lending Office:

                            Bank One, NA, Frankfurt
                               BLZ Code 503 304 00
                                   Attn: Loans
                           Account Name: Bank One, NA,
                               Account No. 1001701
                                  Ref: Anixter

<PAGE>

              Notices (other than Requests for Credit Extensions):
                                  Bank One, NA
                                1 Bank One Plaza
                                   Suite 0364
                               Chicago, IL 60670
                              Attn: Richard Howard
                                 Vice President
                            Telephone: (312) 732-3179
                            Facsimile: (312) 732-1117

          THE BANK OF NOVA SCOTIA, as Documentation Agent and a Lender

                        Requests for Credit Extensions:
                            The Bank of Nova Scotia
                           600 Peachtree Street N.E.
                                   Suite 2700
                               Atlanta, GA 30308
                              Attn: Allyson Mohan
                            Telephone: (404) 877-1549
                            Facsimile: (404) 888-8998
                               Account No. 0606634
                               Ref: Atlanta Agency
                                 ABA# 026002532

              Notices (other than Requests for Credit Extensions):
                            The Bank of Nova Scotia
                            181 West Madison Street
                                   Suite 3700
                               Chicago, IL 60602
                           Attn: Keith Rauschenberger
                                    Director
                            Telephone: (312) 201-4183
                            Facsimile: (312) 201-4108
                 Electronic Mail: krauschenberger@scotiabank.com

<PAGE>

                           BANCA COMMERCIALE ITALIANA

                        Requests for Credit Extensions:
                           Banca Commerciale Italiana
                                1 William Street
                               New York, NY 10004
                              Attn: Jonathan Sahr
                            Telephone: (212) 607-3814
                            Facsimile: (212) 607-3897
                                   Account No.
                                      Ref:
                                  ABA#026005319

               Notices (other than Requests for Credit Extensions
                           Banca Commerciale Italiana
                                1 William Street
                                New York, 10004
                               Attn: Frank Maffei
                            Telephone: (212) 607-3880
                            Facsimile: (212) 809-2124

              BANCA NAZIONALE DEL LAVORO S.P.A. - NEW YORK BRANCH

                        Requests for Credit Extensions:
              Banca Nazionale del Lavoro S.p.A. - New York Branch
                              25 West 51st Street
                               New York, NY 10019
                              Attn: Ana Hernandez
                            Telephone: (212) 314-0679
                            Facsimile: (212) 765-2978
                            Account No. 001-1-465457
                                Ref: Anixter Inc.
                                 ABA# 021000021

              Notices (other than Requests for Credit Extensions):
              Banca Nazionale del Lavoro S.p.A. - New York Branch
                              25 West 51st Street
                               New York, NY 10019
                              Attn: Giulio Giovine
                                 Vice President
                            Telephone: (212) 314-0239
                            Facsimile: (212) 765-2978
                        Electronic Mail: comdiv@bnlny.com
               BANK AUSTRIA CREDITANSTALT CORPORATE FINANCE, INC.

                        Requests for Credit Extensions:
                           Bank Austria Creditanstalt
                              Two Greenwich Plaza
                              Greenwich, CT 30346
                           Attn: Christina Sapounakis
                            Telephone: (203) 861-1518
                            Facsimile: (203) 861-6594
                              Account No. 400921944
                                  ABA#021000021

              Notices (other than Requests for Credit Extensions):
                           Bank Austria Creditanstalt
                         Two Ravinia Drive, Suite 1680
                               Atlanta, GA 30346
                              Attn: Gary Andresen
                                 Vice President
                            Telephone: (770) 390-1846
                            Facsimile: (770) 390-1851
                   Electronic Mail: Gary.Andresen@us.bacai.com

                              THE BANK OF NEW YORK

                        Requests for Credit Extensions:
                              The Bank of New York
                               101 Barclay Street
                               New York, NY 10286
                                  Attn: Millie
                            Telephone: (212) 635-6687
                            Facsimile: (212) 635-7923
                               Account No. 111556
                                Ref: Anixter Inc.
                                 ABA# 021000018

              Notices (other than Requests for Credit Extensions):
                              The Bank of New York
                               101 Barclay Street
                               New York, NY 10286
                            Attn: M. Scott Donaldson
                               Assistant Treasurer
                            Telephone: (212) 635-1243
                            Facsimile: (212) 635-1208
                         CREDIT LYONNAIS CHICAGO BRANCH

                        Requests for Credit Extensions:
                                Credit Lyonnais
                          1301 Avenue of the Americas
                               New York, NY 10019
                               Attn: Jai Sanachar
                            Telephone: (212) 261-7644
                            Facsimile: (212) 459-3180
                          Account No. 01.00688.0001.00
                                 ABA# 026008073

              Notices (other than Requests for Credit Extensions):
                         Credit Lyonnais Chicago Branch
                               227 W. Monroe St.
                                   Suite 3800
                               Chicago, IL 60606
                              Attn: Mary Ann Klemm
                                 Vice President
                            Telephone: (312) 220-7308
                            Facsimile: (312) 641-0527

                         THE DAI-ICHI KANGYO BANK, LTD.

                        Requests for Credit Extensions:
                         The Dai-Ichi Kangyo Bank, Ltd.
                             One World Trade Center
                                   Suite 4911
                               New York, NY 10048
                              Attn: Merine Geerwar
                            Telephone: (212) 432-8458
                            Facsimile: (212) 524-0049
                           Account No. H10-740-014132
                                 ABA# 026004307

              Notices (other than Requests for Credit Extensions):
                         The Dai-Ichi Kangyo Bank, Ltd.
                             10 South Wacker Drive
                                   26th Floor
                               Chicago, IL 60606
                           Attn: J. Richard Cummings
                                 Vice President
                            Telephone: (312) 715-6386
                            Facsimile: (312) 876-2011
                               FIRSTAR BANK, N.A.

                        Requests for Credit Extensions:
                               Firstar Bank, N.A.

                              Attn: Connie Sweeney
                            Telephone: (920) 426-7604
                            Facsimile: (920) 426-7655
                             Account No. 3811005184
                           Ref: Commercial Exceptions
                                  ABA#081000210

              Notices (other than Requests for Credit Extensions):
                               Firstar Bank, N.A.
                             30 N. Michigan Avenue
                               Chicago, IL 60602
                                Attn: Ed Cheney
                                 Vice President
                            Telephone: (312) 696-1474
                            Facsimile: (312) 641-0494
                  Electronic Mail: Edward.A.Cheney@firstar.com

                             THE FUJI BANK, LIMITED

                        Requests for Credit Extensions:
                             The Fuji Bank, Limited
                             Two World Trade Center
                               New York, NY 10048
                              Attn: Tina Catapano
                            Telephone: (212) 898-2099
                            Facsimile: (212) 775-1460
                               Account No. 515060
                                  ABA#026009700

              Notices (other than Requests for Credit Extensions):
                             The Fuji Bank, Limited
                         225 W. Wacker Dr., Suite 2000
                               Chicago, IL 60606
                            Attn: Kenneth S. Zeglin
                                 Vice President
                            Telephone: (312) 621-0503
                            Facsimile: (312) 621-3386
                       Electronic Mail: fujicgoksz@aol.com

                               NATIONAL CITY BANK

                        Requests for Credit Extensions:
                               National City Bank
                               1900 E. 9th Street
                                  Locator 2077
                              Cleveland, OH 44114
                           Attn: Revette Vickerstaff
                            Telephone: (216) 488-7080
                            Facsimile: (216) 488-7110
                               Account No. 151804
                                Ref: Anixter Inc.
                                  ABA#041000124

              Notices (other than Requests for Credit Extensions):
                               National City Bank
                               1900 E. 9th Street
                                  Locator 2077
                              Cleveland, OH 44114
                              Attn: James Ritchie
                                 Account Officer
                            Telephone: (216) 575-9918
                            Facsimile: (216) 222-0003
                Electronic Mail: james.ritchie@national-city.com

                         NATIONAL WESTMINSTER BANK PLC,
                          NEW YORK AND NASSAU BRANCHES

                        Requests for Credit Extensions:
                         National Westminster Bank Plc
                              65 East 55th Street
                                   24th Floor
                               New York, NY 10022
                               Attn: Sheila Shaw
                            Telephone: (212) 401-1406
                            Facsimile: (212) 401-1494
                             Account No. 0011012440
                   Ref: National Westminster Bank Plc New York
                                  ABA#021000021

<PAGE>

              Notices (other than Requests for Credit Extensions):
                         National Westminster Bank Plc
                                  PO Box 12264
                                   3rd Floor
                               1 Princess Street
                                 London EC2 8PB
                                Attn: Roy Bawden
                            Senior Corporate Officer
                           Telephone: 0044-20-73901297
                           Facsimile: 0044-20-73901768

                           THE NORTHERN TRUST COMPANY

                        Requests for Credit Extensions:
                           The Northern Trust Company
                                801 S. Canal St.
                               Chicago, IL 60675
                               Attn: Joy Johnson
                            Telephone: (312) 444-3352
                            Facsimile: (312) 630-1566
                             Account No. 5186401000
                              Ref: Commercial Loans
                                 ABA#071-000-152

              Notices (other than Requests for Credit Extensions):
                           The Northern Trust Company
                               50 S. LaSalle St.
                               Chicago, IL 60675
                            Attn: Fredric McClendon
                                 Vice President
                            Telephone: (312) 557-1893
                            Facsimile: (312) 444-7028
                         Electronic Mail: FWM1@ntrs.com

<PAGE>

                         PNC BANK, NATIONAL ASSOCIATION

                        Requests for Credit Extensions:
                         PNC Bank, National Association
                                 Two PNC Plaza
                          620 Liberty Blvd., 3rd Floor
                              Pittsburgh, PA 15222
                              Attn: Jack Caraccilo
                            Telephone: (412) 768-9973
                            Facsimile: (412) 768-4586
                            Account No. 196030010890
                                Ref: Anixter Inc.
                                  ABA#043000096

              Notices (other than Requests for Credit Extensions):
                         PNC Bank, National Association
                             One South Wacker Drive
                                   Suite 2980
                               Chicago, IL 60606
                              Attn: James A. Wiehe
                            Assistant Vice President
                            Telephone: (312) 338-5628
                            Facsimile: (312) 338-5620

                            THE SAKURA BANK, LIMITED

                        Requests for Credit Extensions:
                            The Sakura Bank, Limited
                                101 Park Avenue
                                   17th Floor
                               New York, NY 10178
                              Attn: Mariko Stewart
                            Telephone: (212) 909-4471
                            Facsimile: (212) 593-1798
                            Account No. 001-1-526829
                                 ABA#021-000-021

<PAGE>

              Notices (other than Requests for Credit Extensions):
                            The Sakura Bank, Limited
                                101 Park Avenue
                                   15th Floor
                               New York, NY 10178
                              Attn: Tetsuya Takebe
                            Telephone: (212) 909-4596
                            Facsimile: (212) 909-4599
                   Electronic Mail: Tetsuya_Takebe@sakura.com

                                 SUNTRUST BANK

                        Requests for Credit Extensions:
                                 SunTrust Bank
                       303 Peachtree Street NE, 3rd Floor
                                 Mail Code 1928
                               Atlanta, GA 30308
                                Attn: Nora Brown
                            Telephone: (404) 588-7221
                            Facsimile: (404) 588-8505
                             Account No. 9088000112
                                Ref: Anixter Inc.
                                  ABA#061000104

              Notices (other than Requests for Credit Extensions):
                                 SunTrust Bank
                           401 North Michigan Avenue
                                 Mail Code 1928
                                   Suite 1200
                               Chicago, IL 60611
                              Attn: Molly Drennan
                                    Director
                            Telephone: (312) 840-7982
                            Facsimile: (312) 840-7983
                   Electronic Mail: molly.drennan@suntrust.com

<PAGE>

                         U.S. BANK NATIONAL ASSOCIATION

                        Requests for Credit Extensions:
                         U.S. Bank National Association
                                U.S. Bank Place
                                    MPFP0607
                               601 2nd Ave. South
                           Minneapolis, MN 55402-4302
                             Attn: Sharon Ologunde
                            Telephone: (612) 973-0556
                            Facsimile: (612) 973-0824
                           Account No. 30000472160600
                       Ref: Anixter (Obligor #1735021448)
                                  ABA#091000022

              Notices (other than Requests for Credit Extensions):
                         U.S. Bank National Association
                                U.S. Bank Place
                                    MPFP0607
                               601 2nd Ave. South
                           Minneapolis, MN 55402-4302
                              Attn: Kurt Egertson
                              Senior Vice President
                            Telephone: (612) 973-0514
                            Facsimile: (612) 973-0395
                    Electronic Mail: kurt.egertson@usbank.com

                              WACHOVIA BANK, N.A.

                        Requests for Credit Extensions:
                              Wachovia Bank, N.A.
                              191 Peachtree Street
                               Atlanta, GA 30303
                                Attn: Bill Allen
                            Telephone: (404) 332-5271
                            Facsimile: (404) 332-4320
                             Account No. 18 17 14 98
                                Ref: Anixter Inc.
                                  ABA#061000010

<PAGE>

              Notices (other than Requests for Credit Extensions):
                              Wachovia Bank, N.A.
                          70 West Madison, Suite 2440
                               Chicago, IL 60614
                                Attn: John Canty
                                 Vice President
                            Telephone: (312) 795-4341
                            Facsimile: (312) 853-0693
                    Electronic Mail: John.Canty@wachovia.com

                     WELLS FARGO BANK, NATIONAL ASSOCIATION

                        Requests for Credit Extensions:
                     Wells Fargo Bank, National Association
                                201 Third Street
                            San Francisco, CA 94103
                              Attn: Ginnie Padgett
                            Telephone: (415) 477-5374
                            Facsimile: (415) 979-0675
                             Account No. 271-2507201
                  Ref: MEMSYN/Commercial Banking Service Center
                                 ABA#121-000-248

              Notices (other than Requests for Credit Extensions):
                     Wells Fargo Bank, National Association
                                 230 W. Monroe
                                   Suite 2900
                               Chicago, IL 60606
                               Attn: Charles Reed
                                 Vice President
                            Telephone: (312) 553-6653
                            Facsimile: (312) 553-4783
                     Electronic Mail: reedcw@wellsfargo.com

<PAGE>

                                    EXHIBIT A

                          FORM OF COMMITTED LOAN NOTICE

                            Date: ___________, _____

               To: Bank of America, N.A., as Administrative Agent

Ladies and Gentlemen:

     Reference is made to that certain Credit Agreement,  dated as of October 6,
2000 (as amended,  restated,  extended,  supplemented  or otherwise  modified in
writing from time to time, the "Agreement;" the terms defined therein being used
herein as therein  defined),  among Anixter Inc.,  the Lenders from time to time
party thereto, Bank of America, N.A., as Administrative Agent.

     The undersigned hereby requests (select one):

     o A Borrowing of Committed Loans o A conversion or continuation of Loans

     1. On (a Business Day).

     2. In the amount of US$.

     3.  Comprised of.

     [Type of Committed Loan requested]

     4.  For  Eurocurrency  Rate  Loans:  with an  Interest  Period  of  months.

     [The Committed  Borrowing requested herein complies with the proviso to the
first sentence of Section 2.01 of the Agreement.]

     ANIXTER INC.

    By:
    Name:
    Title:

<PAGE>

                                    EXHIBIT D

                           FORM OF COMMITTED LOAN NOTE

     FOR VALUE RECEIVED,  Anixter Inc. (the "Borrower"),  hereby promises to pay
to the order of  _____________________________  (the "Lender"),  on the Maturity
Date (as defined in the Credit Agreement referred to below) the principal amount
of all Committed Loans (as defined in such Credit  Agreement) made by the Lender
to the Borrower under that certain 364-Day Revolving Credit Agreement,  dated as
of October 6, 2000 (as amended,  restated,  extended,  supplemented or otherwise
modified  in  writing  from time to time,  the  "Agreement";  the terms  defined
therein being used herein as therein defined),  among the Borrower,  the Lenders
from time to time party thereto,  and Bank of America,  N.A., as  Administrative
Agent.

     The  Borrower  promises to pay interest on the unpaid  principal  amount of
each  Committed  Loan from the date of such  Committed Loan until such principal
amount  is paid in  full,  at such  interest  rates,  and at such  times  as are
specified in the Agreement. All payments of principal and interest shall be made
to the  Administrative  Agent for the  account  of the  Lender in US  Dollars in
immediately available funds at the Administrative  Agent's Office. If any amount
is not paid in full when due hereunder,  such unpaid amount shall bear interest,
to be paid  upon  demand,  from the due date  thereof  until  the date of actual
payment  (and before as well as after  judgment)  computed at the per annum rate
set forth in the Agreement.

     This Note is one of the Committed  Loan Notes referred to in the Agreement,
is entitled to the  benefits  thereof and is subject to optional  and  mandatory
prepayment in whole or in part as provided  therein.  This Note is also entitled
to the  benefits  of the  Guaranty.  Upon the  occurrence  of one or more of the
Events of Default specified in the Agreement,  all amounts then remaining unpaid
on this Note shall become, or may be declared to be, immediately due and payable
all as provided in the  Agreement.  Committed  Loans made by the Lender shall be
evidenced by one or more loan  accounts or records  maintained  by the Lender in
the ordinary  course of business.  The Lender may also attach  schedules to this
Note and endorse  thereon the date,  amount and maturity of its Committed  Loans
and payments with respect thereto.

     The  Borrower,  for itself,  its  successors  and  assigns,  hereby  waives
diligence,  presentment,  protest  and  demand and  notice of  protest,  demand,
dishonor and non-payment of this Note.

<PAGE>

     THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF ILLINOIS.

     ANIXTER INC.

     By:
     Name:
     Title:

<PAGE>

     COMMITTED  LOANS AND PAYMENTS WITH RESPECT THERETO Date Type of Loan Amount
of Loan End of Interest Amount of Outstanding  Notation Made By Made Made Period
     Principal or Principal Interest Paid Balance This This Date Date

<PAGE>

                                    EXHIBIT E

                         FORM OF COMPLIANCE CERTIFICATE

                           Financial Statement Date: ,

               To: Bank of America, N.A., as Administrative Agent

Ladies and Gentlemen:

         Reference is made to that certain 364-Day  Revolving Credit  Agreement,
dated as of October 6, 2000 (as amended,  restated,  extended,  supplemented  or
otherwise  modified in writing  from time to time,  the  "Agreement;"  the terms
     defined therein being used herein as therein defined), among Anixter Inc.
("Anixter"),  the Lenders from time to time party thereto,  and Bank of America,
N.A., as Administrative Agent.

     The undersigned  Responsible Officer hereby certifies as of the date hereof
that  he/she is the of  Anixter,  and that,  as such,  he/she is  authorized  to
execute and deliver this Certificate to the  Administrative  Agent on the behalf
of Anixter, and that:

     [Use following for fiscal year-end financial statements]

     1.  Attached  hereto  as  Schedule  1 are the  year-end  audited  financial
statements  required by Section  6.01(b) of the Agreement for the Fiscal Year of
Anixter  ended as of the above date,  together with the report and opinion of an
independent certified public accountant required by such section.

     [Use following for fiscal quarter-end financial statements]

     1.  Attached  hereto as Schedule 1 are the unaudited  financial  statements
required by Section  6.01(a) of the Agreement for the Fiscal  Quarter of Anixter
ended as of the  above  date.  Such  financial  statements  fairly  present  the
financial  condition,  results of  operations  and cash flows of Anixter and its
Subsidiaries  in  accordance  with  GAAP as at such  date and for  such  period,
subject only to normal year-end audit adjustments and the absence of footnotes.

     2. The  undersigned  has  reviewed  and is  familiar  with the terms of the
Agreement and has made, or has caused to be made under  his/her  supervision,  a
detailed review of the  transactions  and condition  (financial or otherwise) of
Anixter  during  the  accounting  period  covered  by  the  attached   financial
statements.

         3. A review of the  activities  of the Loan Parties  during such fiscal
period has been made under the  supervision  of the  undersigned  with a view to
     determining  whether  during such fiscal period the Loan Parties  performed
and
observed all their Obligations under the Loan Documents, and

                                  [select one:]

     [to the best knowledge of the  undersigned  during such fiscal period,  the
Borrower  performed  and  observed  each  covenant  and  condition  of the  Loan
Documents applicable to them.]

                                       or

     [the following  covenants or conditions have not been performed or observed
and the  following  is a list of each such  Default or Event of Default  and its
nature and status:]

     4. The financial  covenant analyses and information set forth on Schedule 2
attached hereto are true and accurate on and as of the date of this Certificate.

     IN WITNESS WHEREOF, the undersigned has executed this Certificate as of , .

     ANIXTER INC.

     By:
     Name:
     Title:

<PAGE>

     For the Fiscal  Quarter/Fiscal  Year  ended  ___________________("Statement
Date")

                                   SCHEDULE 2
                          to the Compliance Certificate
                                 (US$ in 000's)

           I. Section 7.15 - Receivables Securitization Transactions.

     A. Aggregate  outstanding  investment or principal amount of claims held by
purchasers,  assignees or  transferees  of (or of interests in)  receivables  of
Anixter and its  Subsidiaries  in  connection  with  Receivables  Securitization
Transactions US$_________

                               Maximum permitted:

     II. Section 7.16 - Consolidated Net Worth. A. Actual Consolidated Net Worth
at Statement  Date: 1.  Shareholders'  Equity:  US$ B. 50% of  Consolidated  Net
Income for each Fiscal Quarter ending after September 30, 2000 (No reduction for
losses): US$ C. Minimum required Consolidated Net Worth

     (US$375,000,000  +  Line  II.B):  US$_______  D.  Excess  (deficiency)  for
covenant compliance (Line II.A - II.C): US$

<PAGE>

     III.   Section  7.18  -  Consolidated   Fixed  Charge  Coverage  Ratio.  A.
Consolidated  EBITDA for four  consecutive  Fiscal Quarters ending on above date
("Subject Period"):

     1. Consolidated Net Income for Subject Period (by Fiscal Quarter):

     a. Fiscal Quarter ended _________,  200__ US$______ b. Fiscal Quarter ended
_________, 200__ US$______ c. Fiscal Quarter ended _________, 200__ US$______

     d. Fiscal Quarter ended ---------, 200__ US$______ US$

     2. Net interest expense for Subject Period (by Fiscal Quarter):

     a. Fiscal Quarter ended _________,  200__ US$______ b. Fiscal Quarter ended
_________, 200__ US$______ c. Fiscal Quarter ended _________, 200__ US$______

     d. Fiscal Quarter ended, 200__ US$______ US$

     3. Provision for income taxes for Subject Period (by Fiscal Quarter):

     a. Fiscal Quarter ended _________,  200__ US$______ b. Fiscal Quarter ended
_________, 200__ US$______ c. Fiscal Quarter ended _________, 200__ US$______

     d. Fiscal Quarter ended ---------, 200__ US$______ US$

     4.  Depreciation  and  amortization  expenses for Subject Period (by Fiscal
Quarter):

     a. Fiscal Quarter ended _________,  200__ US$______ b. Fiscal Quarter ended
_________, 200__ US$______ c. Fiscal Quarter ended _________, 200__ US$______

     d. Fiscal Quarter ended, 200__ US$______ US$

     5. Permitted  Exclusions for Subject Period (by Fiscal Quarter):  a. Fiscal
Quarter ended _________, 200__ US$______

     Description:___________________________________  b.  Fiscal  Quarter  ended
_________, 200__ US$______

     Description:___________________________________  c.  Fiscal  Quarter  ended
_________, 200__ US$______

     Description:___________________________________  d.  Fiscal  Quarter  ended
_________, 200__ US$______

     Description:___________________________________ US$

     6. Consolidated EBITDA (Lines III.A.1 + 2 + 3 + 4-5)(by Fiscal Quarter):

     a. Fiscal Quarter ended _________,  200__ US$______ b. Fiscal Quarter ended
_________, 200__ US$______ c. Fiscal Quarter ended _________, 200__ US$______ d.
Fiscal  Quarter  ended  _________,  200__  US$______  US$ B. Rental  Expense for
Subject Period:

     a. Fiscal Quarter ended _________,  200__ US$______ b. Fiscal Quarter ended
_________, 200__ US$______ c. Fiscal Quarter ended _________, 200__ US$______ d.
Fiscal Quarter ended _________, 200__ US$______ US$ C. Consolidated Fixed Charge
Expense for Subject Period:

     a. Fiscal Quarter ended _________,  200__ US$______ b. Fiscal Quarter ended
_________, 200__ US$______ c. Fiscal Quarter ended _________, 200__ US$______ d.
Fiscal Quarter ended _________,  200__ US$______ US$ D. Interest  Coverage Ratio
((Line III.A.6 +Line III.B)/(Line III.C):

     to 1 Minimum required: Fiscal Quarters Ending Minimum Fixed Charge Coverage
Ratio Closing Date through  September 30, 2001 2.00:1  December 31, 2001 through
March 31, 2003 2.50:1 June 30, 2003 and each Fiscal Quarter thereafter 3.00:1

     IV. Section 7.17 - Leverage Ratio.

     A. Consolidated Funded Indebtedness at Statement Date: US$

     B. Consolidated EBITDA for Subject Period (Line III.A.6 above): US$

     C. Leverage Ratio (Line IV.A/Line IV.B): to 1

     Maximum permitted:

     Fiscal       Quarters       Ending       Maximum       Leverage       Ratio

     Closing Date through  September  30, 2001 3.50:1  December 31, 2001 through
March 31, 2003 3.25:1 June 30, 2003 and each Fiscal Quarter thereafter 3.00:1

     V. Section 7.19 Capital  Expenditures.  A. Capital expenditures made during
Fiscal Year to date (by Fiscal  Quarter):  Fiscal Quarters during Fiscal Year to
date: a. Fiscal  Quarter ended  _________,  _______  US$______ b. Fiscal Quarter
ended  _________,  _______  US$______ c. Fiscal Quarter ended  _________,  200__
US$______  d. Fiscal  Quarter  ended  _________,  200__  US$______  US$______ B.
Capital  expenditures  that could have made during  prior  Fiscal Year but which
were not made (>  US$_______________):  US$______ C. Maximum  permitted  capital
expenditures  (US$50,000,000  + Line  V.B.):  US$  D.  Excess  (deficiency)  for
covenant compliance (Line V.C - V.A): US$

<PAGE>

     EXHIBIT F

<PAGE>

                        FORM OF ASSIGNMENT AND ACCEPTANCE

     Reference is made to that certain 364-Day Revolving Credit Agreement, dated
as of October 6, 2000 (as amended, restated, extended, supplemented or otherwise
modified  in  writing  from time to time,  the  "Agreement;"  the terms  defined
therein being used herein as therein  defined),  among Anixter Inc., the Lenders
from time to time party thereto,  and Bank of America,  N.A., as  Administrative
Agent.

     The assignor  identified on the signature page hereto (the  "Assignor") and
the assignee  identified on the signature page hereto (the "Assignee")  agree as
follows:

     1. (a) Subject to  paragraph  11,  effective  as of the date  specified  on
Schedule 1 hereto (the "Effective  Date"), the Assignor hereby irrevocably sells
and assigns to the Assignee without  recourse to the Assignor,  and the Assignee
hereby  irrevocably  purchases and assumes from the Assignor without recourse to
the  Assignor,  the  interest  described  on  Schedule 1 hereto  (the  "Assigned
Interest") in and to the Assignor's rights and obligations under the Agreement.

     (b) From and after the Effective  Date,  (i) the Assignee  shall be a party
under the Agreement and will have all the rights and obligations of a Lender for
all purposes under the Loan Documents to the extent of the Assigned Interest and
be bound by the provisions  thereof,  and (ii)the  Assignor shall relinquish its
rights and be released from its obligations under the Agreement to the extent of
the  Assigned  Interest.  The  Assignor  and/or the  Assignee,  as agreed by the
Assignor and the Assignee,  shall deliver,  in immediately  available funds, any
applicable assignment fee required under Section 10.07(b) of the Agreement.

     2. On the  Effective  Date,  the  Assignee  shall pay to the  Assignor,  in
immediately  available  funds,  an  amount  equal to the  purchase  price of the
Assigned Interest as agreed upon by the Assignor and the Assignee.

     3. From and after the Effective Date, the  Administrative  Agent shall make
all  payments  under the  Agreement  and the  Notes,  if any,  in respect of the
Assigned Interest  (including all payments of principal,  interest and fees with
respect  thereto) to the Assignee.  The Assignor and the Assignee shall make all
appropriate  adjustments in payments under the Agreement and such Notes, if any,
for periods prior to the Effective Date directly between themselves.

     4. The Assignor represents and warrants to the Assignee that:

     (a)  The  Assignor  is the  legal  and  beneficial  owner  of the  Assigned
Interest, and the Assigned Interest is free and clear of any adverse claim;

     (b) the Assigned  Interest  listed on Schedule 1 accurately  and completely
sets forth the Outstanding Amount of all Loans relating to the Assigned Interest
as of the Effective Date;

     (c) it has the power and authority and the legal right to make, deliver and
perform,  and has  taken all  necessary  action,  to  authorize  the  execution,
delivery and  performance  of this  Assignment and  Acceptance,  and any and all
other  documents  delivered  by it in  connection  herewith  and to fulfill  its
obligations  under,  and to consummate the  transactions  contemplated  by, this
Assignment  and  Acceptance   and  the  Loan   Documents,   and  no  consent  or
authorization of, filing with, or other act by or in respect of any Governmental
Authority, is required in connection in connection herewith or therewith; and

     (d) this Assignment and Acceptance constitutes the legal, valid and binding
obligation of the Assignor. The Assignor makes no representation or warranty and
assumes no responsibility  with respect to the financial condition of Anixter or
any of its Affiliates or the  performance by Anixter or any of its Affiliates of
their  respective   obligations  under  the  Loan  Documents,   and  assumes  no
responsibility  with respect to any  statements,  warranties or  representations
made under or in connection  with any Loan Document or the execution,  legality,
validity, enforceability, genuineness, sufficiency or value of any Loan Document
other than as expressly set forth above.

     5.  The  Assignee   represents   and  warrants  to  the  Assignor  and  the
Administrative Agent that:

     (a) it is an Eligible Assignee;

     (b) it has the  full  power  and  authority  and the  legal  right to make,
deliver and  perform,  and has taken all  necessary  action,  to  authorize  the
execution,  delivery and performance of this Assignment and Acceptance,  and any
and all other  documents  delivered by it in connection  herewith and to fulfill
its obligations under, and to consummate the transactions  contemplated by, this
Assignment  and  Acceptance   and  the  Loan   Documents,   and  no  consent  or
authorization of, filing with, or other act by or in respect of any Governmental
Authority, is required in connection in connection herewith or therewith;

     (c) this Assignment and Acceptance constitutes the legal, valid and binding
obligation of the Assignee;

     (d) under  applicable  Laws no tax will be  required  to be withheld by the
Administrative  Agent or Anixter  with respect to any payments to be made to the
Assignee hereunder or under any Loan Document, and unless otherwise indicated in
the space opposite the Assignee's  signature  below,  no tax forms  described in
Section 10.15 of the Agreement are required to be delivered by the Assignee; and
(e) the Assignee has received a copy of the  Agreement,  together with copies of
the most recent financial  statements of Anixter delivered pursuant thereto, and
such other  documents and  information as it has deemed  appropriate to make its
own credit  analysis and decision to enter into this  Assignment and Acceptance.
The Assignee has  independently  and without  reliance  upon the Assignor or the
Administrative  Agent and based on such  information  as the Assignee has deemed
appropriate,  made its own  credit  analysis  and  decision  to enter  into this
Assignment and Acceptance. The Assignee will, independently and without reliance
upon the  Administrative  Agent or any Lender, and based upon such documents and
information as it shall deem  appropriate at the time,  continue to make its own
credit decisions in taking or not taking action under the Agreement.

     6. The Assignee  appoints and authorizes the  Administrative  Agent to take
such  action as agent on its behalf and to exercise  such powers and  discretion
under the  Agreement,  the other  Loan  Documents  or any  other  instrument  or
document   furnished  pursuant  hereto  or  thereto  as  are  delegated  to  the
Administrative  Agent by the terms  thereof,  together  with such  powers as are
incidental thereto.

     7. If either the  Assignee or the  Assignor  desires a Note to evidence its
Loans,  it shall  request  the  Administrative  Agent to procure a Note from the
Borrower.

     8. The Assignor  and the  Assignee  agree to execute and deliver such other
instruments,  and take such other action, as either party may reasonably request
in  connection  with  the  transactions  contemplated  by  this  Assignment  and
Acceptance.

     9. This  Assignment and  Acceptance  shall be binding upon and inure to the
benefit of the parties and their  respective  successors and assigns;  provided,
however,  that the Assignee shall not assign its rights or obligations hereunder
without the prior written consent of the Assignor and any purported  assignment,
absent such consent, shall be void.

     10. This Assignment and Acceptance may be executed by facsimile  signatures
with the same force and effect as if manually  signed and may be executed in one
or more  counterparts,  each of which  shall be deemed an  original,  but all of
which together shall constitute one and the same instrument. This Assignment and
Acceptance shall be governed by and construed in accordance with the laws of the
state specified in the Section of the Agreement entitled "Governing Law."

     11. The effectiveness of the assignment described herein is subject to:

     (a) if such consent is required by the  Agreement,  receipt by the Assignor
and the Assignee of the consent of the  Administrative  Agent and/or  Anixter to
the  assignment  described  herein.  By delivering a duly executed and delivered
copy of this Assignment and Acceptance to the Administrative Agent, the Assignor
and the Assignee  hereby request any such required  consent and request that the
Administrative  Agent  register  the  Assignee as a Lender  under the  Agreement
effective as of the Effective Date; and

     (b)  receipt  by  the  Administrative   Agent  of  (or  other  arrangements
acceptable  to  the  Administrative   Agent  with  respect  to)  any  applicable
assignment  fee  referred to in Section  10.07(b) of the  Agreement  and any tax
forms required by Section 10.15 of the Agreement.

     By signing below, the Administrative  Agent agrees to register the Assignee
as a Lender under the Agreement, effective as of the Effective Date with respect
to the Assigned  Interest,  and will adjust the registered Pro Rata Share of the
Assignor under the Agreement to reflect the assignment of the Assigned Interest.

     12.  Attached  hereto as Schedule 2 is all  contact,  address,  account and
other administrative information
relating to the Assignee.

<PAGE>

     IN WITNESS  WHEREOF,  the parties  hereto have caused this  Assignment  and
Acceptance to be executed as of the date first above written by their respective
duly authorized officers.

     Assignor: [Name of Assignor]

     By:
     Name:
     Title:

     o Tax forms required by Section 10.15 of the Assignee:  Agreement  included
[Name of Assignee]

     By:
     Name:
     Title:

(Signatures continue)

<PAGE>

     In accordance  with and subject to Section  10.07 of the Credit  Agreement,
the undersigned consent to the foregoing assignment as of the Effective Date:

     ANIXTER INC.

     By:

     Name:

     Title:

     BANK OF AMERICA, N.A., as Administrative Agent

     By:
     Title:

<PAGE>

                     SCHEDULE 1 TO ASSIGNMENT AND ACCEPTANCE

                              THE ASSIGNED INTEREST

                     Effective Date: ______________________

   Assigned Commitment Type and amount of outstanding Assigned Pro Rata Share
                              Obligations assigned

                                US$ [type] US$ %

<PAGE>

                     SCHEDULE 2 TO ASSIGNMENT AND ACCEPTANCE

                             ADMINISTRATIVE DETAILS

                   (Assignee to list names of credit contacts,
                     addresses, phone and facsimile numbers,
                      electronic mail addresses and account
                            and payment information)

<PAGE>

                                    EXHIBIT G

                                    GUARANTY

     This  GUARANTY,  dated as of October 6, 2000, is by ANIXTER  INTERNATIONAL,
INC., a Delaware corporation, ANIXTER INC., a Delaware corporation ("Anixter" or
the "Borrower"),  ANIXTER-REAL  ESTATE, INC., an Illinois  corporation,  ANIXTER
INFORMATION SYSTEMS CORPORATION, an Illinois corporation,  and ANIXTER FINANCIAL
INC.,  a  Delaware  corporation  (each  a  "Guarantor"  and  collectively,   the
"Guarantors"),  in favor of BANK OF AMERICA,  N.A., as administrative  agent (in
such  capacity,  the  "Administrative  Agent")  for the  Lenders  (as  hereafter
defined).

                                    Recitals

     A. The Borrower, the financial institutions from time to time party thereto
(the "Lenders"), Bank One, NA, as Syndication Agent, The Bank of Nova Scotia, as
Documentation  Agent, and the  Administrative  Agent have entered into a 364-Day
Credit  Agreement,  dated as of October 6, 2000. The Credit  Agreement as now in
effect or hereafter  extended,  renewed,  modified,  supplemented,  amended,  or
restated is hereinafter called the "Credit Agreement".

     B. The  Lenders  are  willing  to make the  Loans  to the  Borrower  on the
condition (among others) that
the Guarantors enter into this Guaranty.

         C. Each Guarantor will derive  substantial  and direct  benefits (which
benefits are hereby  acknowledged  by the  Guarantors)  from the Loans and other
benefits to be provided to the Borrower under the Credit Agreement.

     D. In order to induce  the  Lenders  to make the Loans to the  Borrower  as
provided in the Credit  Agreement,  and for other  valuable  consideration,  the
Guarantors hereby issue this Guaranty.

     1. Definitions.  Unless otherwise defined herein, capitalized terms used in
this  Guaranty  have the meanings  given to them from time to time in the Credit
Agreement.

     2. Guaranty.

     2.1 Guaranty.  The Guarantors,  jointly and severally,  hereby irrevocably,
absolutely  and  unconditionally  guarantee  the full and  punctual  payment  or
performance  when due,  whether  at stated  maturity,  by  required  prepayment,
declaration,  acceleration,  demand,  or  otherwise,  of all  of the  Guaranteed
Obligations,  including Guaranteed  Obligations in respect of amounts that would
become due but for the operation of the automatic  stay under Section  362(a) of
the  Federal  Bankruptcy  Reform  Act of 1978 (11  U.S.C.ss.101  et  seq.)  (the
"Bankruptcy  Code")  or the  operation  of  Sections  502(b)  and  506(b) of the
Bankruptcy Code. This Guaranty constitutes a guaranty of payment and performance
when due and not of collection,  and the Guarantors  specifically  agree that it
shall not be necessary or required that the  Administrative  Agent or any Lender
exercise any right, assert any claim or demand, or enforce any remedy whatsoever
against the  Borrower  (or any other  Person)  before or as a  condition  to the
obligations of the Guarantors hereunder.  The Administrative Agent or any Lender
may permit the indebtedness of the Borrower to the  Administrative  Agent or any
Lender to include  indebtedness other than the Guaranteed  Obligations,  and may
apply any amounts received from any source,  other than from the Guarantors,  to
that portion of the Borrower's  indebtedness to the Administrative  Agent or any
Lender which is not a part of the Guaranteed  Obligations.  The  obligations and
liabilities  of the  Guarantors  hereunder  are joint and  several.  "Guaranteed
Obligations"  shall mean all Obligations plus all obligations of the Borrower to
the  Administrative  Agent and the Lenders pursuant to any agreement  (including
any master agreement and any agreement,  whether or not in writing,  relating to
any single  transaction)  that is an interest rate swap  agreement,  basis swap,
forward rate agreement, commodity swap, commodity option, equity or equity index
swap or option,  bond option,  interest rate option,  forward  foreign  exchange
agreement,  rate  cap,  collar  or floor  agreement,  currency  swap  agreement,
cross-currency  rate swap  agreement,  station,  currency  option or any  other,
similar agreement (including any option to enter into any of the foregoing).

     2.2 Obligations  Independent.  The obligations hereunder are independent of
the obligations of the Borrower, and a separate action or actions may be brought
and prosecuted  against any or all of the  Guarantors  whether action is brought
against the  Borrower  or whether  the  Borrower be joined in any such action or
actions.

     2.3  Authorization  of  Renewals,   Etc.  Each  Guarantor   authorizes  the
Administrative  Agent and each  Lender,  without  notice or demand  and  without
affecting its liability hereunder, from time to time:

     (a) to renew, compromise,  extend, accelerate, or otherwise change the time
for  payment,  or otherwise  change the terms,  of the  Guaranteed  Obligations,
including  increase or decrease of the rate of interest  thereon,  or  otherwise
change the terms of the Credit Agreement or any other Loan Document;

     (b) to receive and hold  security  for the payment of this  Guaranty or the
obligations and exchange,  enforce,  waive, release,  fail to perfect,  sell, or
otherwise dispose of any such security;

     (c) to apply such  security  and direct the order or manner of sale thereof
as the Administrative  Agent, or any Lender, as the case may be, in its or their
discretion may determine; and

     (d) to release or substitute any one or more of any endorsers or guarantors
of the Guaranteed Obligations.

     Each Guarantor  further agrees that the performance or occurrence of any of
the acts or events  described  in  clauses  (a),  (b),  (c),  and (d) above with
respect to  indebtedness  or other  obligations  of the Borrower  other than the
Guaranteed  Obligations,  to the Administrative  Agent or any Lender,  shall not
affect the liability of the Guarantors hereunder.

     2.4 Waiver of Certain  Rights.  Each Guarantor  waives any right to require
the Administrative Agent or any Lender:

     (a) to proceed against the Borrower or any other Person;

     (b)  to  proceed  against  or  exhaust  any  security  for  the  Guaranteed
Obligations  or any other  indebtedness  of the  Borrower to the  Administrative
Agent or any Lender; or

     (c) to pursue any other  remedy in the  Administrative  Agent's or any such
Lender's power whatsoever.

     2.5  Waiver of Certain  Defenses  and  Rights.  Each  Guarantor  waives any
defense arising by reason of any disability or other defense of the Borrower, or
the  cessation  from any cause  whatsoever  of the  liability  of the  Borrower,
whether consensual or arising by operation of law or any bankruptcy,  insolvency
or debtor  relief  proceeding,  or from any other cause,  or any claim that such
Guarantor's  obligations  exceed  or  are  more  burdensome  than  those  of the
Borrower.  Each Guarantor waives any defense arising by reason of any statute of
limitations  affecting the liability of the Borrower.  Each Guarantor waives all
rights and defenses arising out of an election of remedies by the Administrative
Agent or any Lender,  even though that election of remedies,  has destroyed such
Guarantor's  rights of  subrogation  and  reimbursement  against the Borrower by
operation of applicable  law, and all rights or defenses such Guarantor may have
by reason of protection  afforded to the Borrower with respect to the Guaranteed
Obligations  pursuant to the antideficiency laws or other laws of the applicable
jurisdiction limiting or discharging the Guaranteed Obligations.

     2.6 Waiver of Presentments,  Etc. Each Guarantor  waives all  presentments,
demands  for  performance,  notices  of  nonperformance,  protests,  notices  of
protest,  notices of dishonor, and notices of acceptance of this Guaranty and of
the  existence,   creation,   or  incurring  of  new  or  additional  Guaranteed
Obligations  or any other  indebtedness  of the  Borrower to the  Administrative
Agent or any Lender.

     2.7  Information  Relating to Borrower.  Each  Guarantor  acknowledges  and
agrees  that it shall  have  the  sole  responsibility  for  obtaining  from the
Borrower  such  information  concerning  the  Borrower,  financial  condition or
business  operations  as such  Guarantor  may  require,  and  that  neither  the
Administrative  Agent nor any Lender has any duty at any time to disclose to the
Guarantors  any  information  relating to the business  operations  or financial
condition of the Borrower.

     2.8 Right of Setoff.  In addition to any rights and remedies of the Lenders
provided by law, if an Event of Default has  occurred  and is  continuing,  each
Lender is authorized at any time and from time to time,  without prior notice to
the  Guarantors,  any such notice being waived by each  Guarantor to the fullest
extent  permitted by law, to set-off and apply any and all deposits  (general or
special,  time or  demand,  provisional  or  final)  at any time  held and other
indebtedness  at any  time  owing by such  Lender  to or for the  credit  or the
account  of one or  more  Guarantors  against  any and  all  obligations  of the
Guarantors  now or  hereafter  existing  under this  Guaranty  or any other Loan
Document, irrespective of whether or not the Administrative Agent or such Lender
shall have made  demand  under this  Guaranty or any other Loan  Document.  Each
Lender agrees  promptly to notify the  Guarantors and the  Administrative  Agent
after any such set-off and  application  made by such Lender;  provided that the
failure to give such notice  shall not affect the  validity of such  set-off and
application. The rights of each Lender under this Section 2.8 are in addition to
the other rights and remedies  (including,  without limitation,  other rights of
set-off) which such Lender may have.

     2.9  Subordination.  Any  obligations of the Borrower to one or more of the
Guarantors,   now  or  hereafter  existing,   including,  but  not  limited  to,
obligations to one or more of the  Guarantors as subrogee of the  Administrative
Agent or any Lender or resulting from one or more of the Guarantors' performance
under this  Guaranty,  are hereby  fully  subordinated  in time and  priority of
payment to the Guaranteed Obligations and all other indebtedness of the Borrower
to the  Administrative  Agent or any Lender.  The obligations of the Borrower to
the  Guarantors  if the  Lenders so request  shall be enforced  and  performance
received  by the  Guarantors  as trustee  for the  Administrative  Agent and the
Lenders and the proceeds thereof shall be paid over to the Administrative  Agent
and the Lenders on account of the Guaranteed  Obligations,  but without reducing
or  affecting  in any manner the  liability  of the  Guarantors  under the other
provisions of this Guaranty.

     2.10 Reinstatement of Guaranty.  If any payment or transfer of any interest
in  property  by the  Borrower  to the  Administrative  Agent or any  Lender  in
fulfillment of any obligation is rescinded or must at any time (including  after
the return or cancellation  of this Guaranty) be returned,  in whole or in part,
by the  Administrative  Agent or any Lender to the Borrower or any other Person,
upon the insolvency, bankruptcy, or reorganization of the Borrower or otherwise,
this Guaranty shall be reinstated  with respect to any such payment or transfer,
regardless of any such prior return or cancellation.

                  2.11 Powers. It is not necessary for the Administrative  Agent
or any Lender to inquire  into the powers of the  Borrower  or any other  Person
obligated  in  respect  of  the  Guaranteed  Obligations  or  of  the  officers,
     directors, partners, or agents acting or purporting to act on its or their
behalf,  and any  Guaranteed  Obligations  made or created in reliance  upon the
professed exercise of such powers shall be guaranteed hereunder.

     2.12 Taxes. (a) Any and all payments by any Guarantor to each Lender or the
Administrative  Agent under this  Guaranty  shall be made free and clear of, and
without  deduction for, any Taxes.  In addition,  the  Guarantors  shall pay all
Other Taxes.  (b) If any Guarantor shall be required by law to deduct any Taxes,
from  or in  respect  of  any  sum  payable  hereunder  to  any  Lender  or  the
Administrative Agent, then:

     (i) the sum payable  shall be increased as necessary so that,  after making
all required  deductions  (including  deductions  applicable to additional  sums
payable under this Section),  such Lender or the  Administrative  Agent,  as the
case may be,  receives  and  retains  an amount  equal to the sum it would  have
received and retained had no such deductions been made;

     (ii) the Guarantors shall make such deductions;

     (iii) the  Guarantors  shall pay the full amount  deducted to the  relevant
taxing authority or other authority in accordance with applicable law; and

     (iv) the  Guarantors  shall also pay to each  Lender or the  Administrative
Agent  for the  account  of such  Lender,  at the time  interest  is paid,  such
additional  amount that the respective Lender specifies as necessary to preserve
the after-tax  yield the Lender would have received if such Taxes or Other Taxes
had not been imposed.

     (c) Each  Guarantor  agrees to indemnify  and hold harmless each Lender and
the Administrative  Agent for the full amount of (i) Taxes and (ii) Other Taxes,
and (iii)  amounts  payable under  Section  2.12(b)(iv),  and (iv) any liability
(including  penalties,   interest,  additions  to  tax,  and  expenses)  arising
therefrom or with respect thereto, whether or not such Taxes or Other Taxes were
correctly or legally asserted.  Payment under this indemnification shall be made
within 30 days  after  the date the  Lender or the  Administrative  Agent  makes
written demand therefor.

     (d) Within 30 days after the date of any payment by any  Guarantor of Taxes
or Other Taxes,  such Guarantor  shall furnish to the  Administrative  Agent the
original or a certified copy of a receipt evidencing  payment thereof,  or other
evidence of payment satisfactory to the Administrative Agent.

     2.13  Addition of  Guarantors.  Each  Guarantor  at any time a party hereto
consents and agrees that,  at any time that any Person  executes and delivers to
Administrative  Agent a letter,  substantially in the form of Exhibit A attached
hereto, with such changes, if any, as Administrative  Agent shall approve,  such
Person shall,  without  further action on the part of any Person,  automatically
become a party hereto and a "Guarantor" hereunder.

     2.14 Limit of Liability. Notwithstanding anything to the contrary contained
herein,  each  Guarantor  shall be liable  hereunder only for the largest amount
that  would  not  render  such  Guarantor's  obligations  hereunder  subject  to
avoidance under Section 548 of the Bankruptcy  Code or comparable  provisions of
any applicable state law;  provided that such amount shall be presumed to be the
entire amount of the Guaranteed  Obligations.  If any Guarantor claims that such
Guarantor's   liability  hereunder  is  less  than  the  entire  amount  of  the
Obligations,  such  Guarantor  shall  have the burden of  proving,  by clear and
convincing  evidence,  that such  Guarantor's  liability  hereunder should be so
limited  since  the  information  concerning,  and  the  circumstances  of,  the
financial  condition of such  Guarantor  are more  readily  available to and are
under the control of such Guarantor.

     2.15 Waiver of Subrogation.  Until such time as the Guaranteed  Obligations
shall have been  indefeasibly  paid in full in cash,  each Guarantor  waives any
right  of   subrogation,   reimbursement,   indemnification   and   contribution
(contractual,   statutory  or  otherwise),  including  any  claim  or  right  of
subrogation  under the  Bankruptcy  Code or any successor  statute,  against the
Borrower  arising from the existence or performance  of this Guaranty,  and each
Guarantor waives any right to enforce any remedy which the Administrative  Agent
or any Lender now has or may hereafter have against the Borrower, and waives any
benefit of, and any right to participate  in, any security now or hereafter held
by the Administrative Agent or any Lender securing the Guaranteed Obligations.

     3.  Representations and Warranties.  Each Guarantor represents and warrants
to the Administrative Agent and each Lender as follows:

     3.1 Organization;  Corporate Powers.  Such Guarantor (i) is duly organized,
validly  existing and in good standing under the laws of the jurisdiction of its
organization, (ii) is duly qualified to do business as a foreign corporation and
is in good  standing  under  the laws of each  jurisdiction  in which it owns or
leases real property or in which the nature of its business requires it to be so
qualified,  except those  jurisdictions where the failure to be in good standing
or to so  qualify  has not had or could not  reasonably  be  expected  to have a
Material  Adverse  Effect,  and  (iii)  has all  requisite  corporate  power and
authority  to own,  operate and  encumber its property and assets and to conduct
its  business  as  presently  conducted  and  as  proposed  to be  conducted  in
connection with and following the consummation of the transactions  contemplated
by the Transaction Documents.

     3.2 Authority.

     (1) Such  Guarantor  has the  requisite  corporate  power and  authority to
execute, deliver and perform its obligations under this Guaranty.

     (2) The execution, delivery and performance (or filing or recording, as the
case  may  be) of  this  Guaranty  and  the  consummation  of  the  transactions
contemplated  thereby,  have been duly  authorized  by all  necessary  corporate
action on the part of this Guaranty and no other  proceedings on the part of any
such Person are necessary to consummate such transactions.

     (3) This  Guaranty  has been  duly  executed  and  delivered  (or  filed or
recorded,  as the case may be) by such Guarantor,  constitutes its legal,  valid
and binding  obligations,  enforceable  against it in accordance  with its terms
(except as enforceabiltiy may be limited by applicable  bankruptcy,  insolvency,
reorganization,   moratorium  or  similar  laws  affecting  the  enforcement  of
creditors' rights generally and by general equitable principles), and is in full
force and effect (unless terminated in accordance with the terms thereof).

     3.3 No Conflict.  The execution,  delivery and performance of this Guaranty
and  each of the  transactions  contemplated  hereby,  do not and  will  not (i)
conflict  with any  Contractual  Obligation  of such  Guarantor,  any  liability
resulting  from  which  would  have or could be  reasonably  expected  to have a
Material  Adverse  Effect,  or (ii)  conflict  with or violate such  Guarantor's
certificate  or  articles  of  incorporation  or by-laws or similar  charter and
constituting  documents,  or (iii)  conflict  with,  result  in a  breach  of or
constitute (with or without notice or lapse of time or both) a default under any
Requirement  of Law or  Contractual  Obligation  of such  Guarantor,  or require
termination of any Contractual  Obligation of such Guarantor,  or (iv) result in
or require the creation or  imposition  of any Lien  whatsoever  upon any of the
properties or assets of any such Person (other than Liens permitted  pursuant to
Section  7.02(b)  of the Credit  Agreement),  or (v)  require  any  approval  of
stockholders of such Guarantor, unless such approval has been obtained.

     3.4 Governmental Consents. The execution,  delivery and performance of this
Guaranty by such Guarantor, and the transactions  contemplated hereby do not and
will not require any registration with, consent or approval of, or notice to, or
other action with or by, any Governmental Authority, except filings, consents or
notices  which  have been  made,  obtained  or given  and are in full  force and
effect.

     3.5  Governmental  Regulation.  Such Guarantor is not subject to regulation
under the Public  Utility  Holdings  Company Act of 1935, the Federal Power Act,
the  Interstate  Commerce Act, the  Investment  Company Act of 1940 or any other
statute or regulation  of any  Governmental  Authority  such that its ability to
incur  indebtedness  is limited or its ability to  consummate  the  transactions
contemplated hereby is materially impaired.

     4. Miscellaneous.

     4.1 Application of Payments on Guaranty.  All payments  required to be made
by the Guarantors  hereunder shall,  unless otherwise expressly provided herein,
be made to the  Administrative  Agent  for the  account  of the  Lenders  at the
Administrative Agent's Office. The Administrative Agent will promptly distribute
to each  Lender  its Pro Rata  Share (or  other  applicable  share as  expressly
provided  herein) of such payment in like funds as received.  Payments  received
from the Guarantors  shall,  unless  otherwise  expressly  provided  herein,  be
applied to costs,  fees,  or other  expenses due under the Loan  Documents,  any
interest  (including  interest  due  under  subsection  2.06(c)  of  the  Credit
Agreement),  any principal due under the Loan Documents and any other Guaranteed
Obligations,  in such order as the Administrative  Agent, with the consent of or
at the request of the Lenders, shall determine.

     4.2 Assignments, Participations, Confidentiality. Subject to the provisions
of  Section  10.07 of the  Credit  Agreement,  any Lender may from time to time,
without  notice  to  the  Guarantors  and  without   affecting  the  Guarantors'
obligations hereunder, transfer its interest in the Guaranteed Obligations. Each
Guarantor  agrees that each such transfer will give rise to a direct  obligation
of the Guarantors to each such  transferee and that each such  transferee  shall
have the same  rights and  benefits  under this  Guaranty as it would have if it
were a Lender party to the Credit Agreement and this Guaranty.

     4.3 Loan Document.  This Guaranty is a Loan Document executed and delivered
pursuant to the Credit Agreement and shall (unless otherwise expressly indicated
herein) be construed, administered, and applied in accordance with the terms and
provisions  thereof.  Without  limiting the  generality  of the  foregoing,  the
provisions of Sections 1.02 through 1.06 of the Credit  Agreement shall apply to
the  interpretation  and  administration  of this Guaranty as if such provisions
were  incorporated  herein,  with  all  references  to the  "Agreement"  in such
Sections being deemed to be references to this Guaranty.

     4.4 Waivers;  Writing Required.  No delay or omission by the Administrative
Agent or any Lender to exercise any right under this  Guaranty  shall impair any
such right,  nor shall it be construed to be a waiver thereof.  No waiver of any
single  breach or default  under this  Guaranty  shall be deemed a waiver of any
other  breach or  default.  Any  amendment  or waiver of any  provision  of this
Guaranty must be in writing and signed by the Guarantors and the  Administrative
Agent,  with the written consent of the Required  Lenders or all of the Lenders,
in accordance with the terms of Section 10.01 of the Credit Agreement.

     4.5 Revocation. Each Guarantor absolutely, unconditionally,  knowingly, and
expressly  waives  any  right to revoke  such  Guarantor's  guaranty  obligation
hereunder as to future Guaranteed Obligations. Each Guarantor fully realizes and
understands that, upon execution of this Guaranty,  such Guarantor will not have
any right to revoke this Guaranty as to any future  indebtedness  and, thus, may
have no control over such Guarantor's ultimate responsibility for the Guaranteed
Obligations.  If,  contrary to the  express  intent of this  Guaranty,  any such
revocation is effective  notwithstanding  the foregoing  waiver,  each Guarantor
acknowledges  and agrees that: (a) no such  revocation  shall be effective until
written  notice  thereof has been received by the  Administrative  Agent and the
Lenders;  (b) no such  revocation  shall apply to any Guaranteed  Obligations in
existence on such date  (including any subsequent  continuation,  extension,  or
renewal thereof,  or change in the interest rate,  payment terms, or other terms
and conditions  thereof);  (c) no such revocation  shall apply to any Guaranteed
Obligations  made or  created  after  such date to the  extent  made or  created
pursuant to a legally binding commitment of the Lenders which is, or is believed
in good faith by the Lenders to be, in existence on the date of such revocation;
(d) no payment by any other source,  prior to the date of such revocation  shall
reduce the  obligations of any Guarantor  hereunder;  and (e) any payment by the
Borrower or from any source  other than a Guarantor,  subsequent  to the date of
such  revocation,  shall  first be  applied to that  portion  of the  Guaranteed
Obligations, if any, as to which the revocation by a Guarantor is effective (and
which are not, therefore,  guarantied by the Guarantors hereunder),  and, to the
extent so applied, shall not reduce the Guaranteed Obligations of the Guarantors
hereunder.

     4.6  Remedies.  All rights and remedies  provided in this  Guaranty and any
instrument or agreement  referred to herein are cumulative and are not exclusive
of any  rights or  remedies  otherwise  provided  by law.  Any single or partial
exercise of any right or remedy shall not preclude the further  exercise thereof
or the exercise of any other right or remedy.

     4.7 Costs and  Expenses.  Each  Guarantor  agrees to pay or  reimburse  the
Administrative  Agent and each Lender within five Business Days after demand for
all reasonable costs and expenses (including Attorney Costs) incurred by them in
connection with the enforcement,  attempted enforcement,  or preservation of any
rights or  remedies  under  this  Guaranty  (including  in  connection  with any
"workout"  or  restructuring  regarding  amounts  due under this  Guaranty,  and
including in any Insolvency Proceeding or appellate proceeding).

     4.8 Severability.  The illegality or  unenforceability  of any provision of
this Guaranty or any instrument or agreement referred to herein shall not in any
way affect or impair the legality or enforceability of the remaining  provisions
of this Guaranty or any instrument or agreement referred to herein.

     4.9 Notices. All notices, requests, consents,  approvals, waivers and other
communications  shall be in writing  (including,  unless the  context  expressly
otherwise  provides,  by  facsimile  transmission,   provided  that  any  matter
transmitted by facsimile (i) shall be immediately  confirmed by a telephone call
to the  recipient  at the  number  specified  on  Schedule  10.02 to the  Credit
Agreement,  and (ii)  shall be  followed  promptly  by  delivery  of a hard copy
original  thereof) and mailed,  faxed or delivered,  to the address or facsimile
number  specified  for  notices  on the  signature  pages  hereof in the case of
Guarantors and as provided in the Credit Agreement in the case of Administrative
Agent and Lenders;  or to such other  address as shall be designated by any such
party in a written notice to the other parties.  All such notices,  requests and
communications  shall,  when  transmitted by overnight  delivery,  or faxed,  be
effective when delivered for overnight  (next-day)  delivery,  or transmitted in
legible form by facsimile machine,  respectively,  or if mailed, upon the fourth
Business Day after the date deposited into the U.S. mail, or if delivered,  upon
delivery.  Any agreement of the Administrative  Agent and the Lenders to receive
certain  notices by telephone or facsimile is solely for the  convenience and at
the request of the Guarantors. The Administrative Agent and the Lenders shall be
entitled  to rely on the  authority  of any  Person  purporting  to be a  Person
authorized by a Guarantor to give such notice and the  Administrative  Agent and
the Lenders  shall not have any  liability  to any  Guarantor or other Person on
account  of any  action  taken or not taken by the  Administrative  Agent or the
Lenders in reliance upon such telephonic or facsimile notice.  The obligation of
the  Guarantors  hereunder  shall not be affected in any way or to any extent by
any  failure by the  Administrative  Agent and the  Lenders  to receive  written
confirmation  of any  telephonic  or  facsimile  notice  or the  receipt  by the
Administrative Agent and the Lenders of a confirmation which is at variance with
the terms understood by the Administrative Agent and the Lenders to be contained
in the telephonic or facsimile notice.

     4.10  Governing Law and  Jurisdiction.  THIS GUARANTY SHALL BE GOVERNED BY,
AND CONSTRUED IN  ACCORDANCE  WITH,  THE LAW OF THE STATE OF ILLINOIS;  PROVIDED
THAT THE  ADMINISTRATIVE  AGENT AND THE LENDERS SHALL RETAIN ALL RIGHTS  ARISING
UNDER FEDERAL LAW.

     4.11  Waiver  of  Jury  Trial.  EACH  GUARANTOR,   THE  LENDERS,   AND  THE
ADMINISTRATIVE  AGENT EACH WAIVE THEIR  RESPECTIVE  RIGHTS TO A TRIAL BY JURY OF
ANY CLAIM OR CAUSE OF ACTION  BASED  UPON OR  ARISING  OUT OF OR RELATED TO THIS
GUARANTY, THE OTHER LOAN DOCUMENTS,  OR THE TRANSACTIONS  CONTEMPLATED HEREBY OR
THEREBY, IN ANY ACTION,  PROCEEDING,  OR OTHER LITIGATION OF ANY TYPE BROUGHT BY
ANY OF THE PARTIES  AGAINST ANY OTHER PARTY OR PARTIES,  WHETHER WITH RESPECT TO
CONTRACT CLAIMS, TORT CLAIMS, OR OTHERWISE. THE GUARANTORS, THE LENDERS, AND THE
ADMINISTRATIVE  AGENT EACH AGREE THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE
TRIED BY A COURT TRIAL  WITHOUT A JURY.  WITHOUT  LIMITING  THE  FOREGOING,  THE
PARTIES FURTHER AGREE THAT THEIR  RESPECTIVE  RIGHT TO A TRIAL BY JURY IS WAIVED
BY OPERATION OF THIS SECTION AS TO ANY ACTION,  COUNTERCLAIM OR OTHER PROCEEDING
WHICH SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF
THIS GUARANTY OR THE OTHER LOAN  DOCUMENTS OR ANY  PROVISION  HEREOF OR THEREOF.
THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS,  RENEWALS, SUPPLEMENTS, OR
MODIFICATIONS TO THIS GUARANTY AND THE OTHER LOAN DOCUMENTS.

     4.12 Entire  Agreement.  This  Guaranty  (a)  integrates  all the terms and
conditions  mentioned  herein or  incidental  hereto,  (b)  supersedes  all oral
negotiations  and prior writings with respect to the subject matter hereof,  and
(c) is intended by the parties as the final  expression  of the  agreement  with
respect  to the terms and  conditions  set forth in this  Guaranty  and any such
instrument,  agreement and document and as the complete and exclusive  statement
of the terms agreed to by the parties.

     4.13 Execution in Counterparts. This Guaranty may be executed in any number
of counterparts and by different parties hereto in separate  counterparts,  each
of which when so executed  and  delivered  shall be deemed to be an original and
all of which taken  together shall  constitute but one and the same  instrument.
Delivery of an executed  counterpart  of the signature  page to this Guaranty by
telecopier shall be effective as delivery of a manually executed  counterpart of
this  Guaranty.  Any party  delivering an executed  counterpart of the signature
page to this Guaranty by telecopier  shall  thereafter  also promptly  deliver a
manually executed counterpart of this Guaranty,  but the failure to deliver such
manually executed counterpart shall not affect the validity, enforceability, and
binding effect of this Guaranty.

     THIS WRITTEN  GUARANTY,  TOGETHER  WITH THE OTHER  WRITTEN  LOAN  DOCUMENTS
EXECUTED IN CONNECTION  HEREWITH,  REPRESENTS  THE FINAL  AGREEMENT  BETWEEN THE
PARTIES AND MAY NOT BE  CONTRADICTED  BY EVIDENCE  OF PRIOR  CONTEMPORANEOUS  OR
SUBSEQUENT  ORAL  AGREEMENTS  OF  THE  PARTIES.  THERE  ARE  NO  UNWRITTEN  ORAL
AGREEMENTS BETWEEN THE PARTIES.

     IN WITNESS  WHEREOF,  each Guarantor has executed this Guaranty by its duly
authorized officers as of the day and year first above written.

     ANIXTER INTERNATIONAL INC.

                                      By:

                                     Title:

                               Notice Information:
                                 4711 Golf Road
                                Skokie, IL 60076
                              Attn : Rod Shoemaker

                            ANIXTER-REAL ESTATE, INC.

                                      By:

                                     Title:

                               Notice Information:
                                2201 Main Street
                               Evanston, IL 60202
                               Attn : Ken Hageman

<PAGE>

                     ANIXTER INFORMATION SYSTEMS CORPORATION

                                      By:

                                     Title:

                               Notice Information:
                                 4711 Golf Road
                                Skokie, IL 60076
                              Attn : Rod Shoemaker

                             ANIXTER FINANCIAL INC.

                                      By:

                                     Title:

                               Notice Information:
                                 4711 Golf Road
                                Skokie, IL 60076
                              Attn : Rod Shoemaker

<PAGE>

                                    EXHIBIT A
                              TO GUARANTY AGREEMENT

                             _______________, 200___

                    To the Lenders and Administrative Agent
                               Referenced below:

Ladies and Gentlemen:

     Reference is made to the  following  documents:  (a) that  certain  364-Day
Revolving Credit  Agreement,  dated as October [6], 2000 (as amended or modified
from time to time,  the "Credit  Agreement"),  among  Anixter  Inc.,  a Delaware
corporation ("Anixter" or the "Borrower"),  the financial institutions from time
to time party thereto (the "Lenders"),  Bank One, NA, as Syndication  Agent, The
Bank of Nova Scotia,  as  Documentation  Agent,  and Bank of America,  N.A.,  as
Administrative  Agent; and (b) that certain Guaranty dated as of October 6, 2000
(as  amended  or  modified  from  time to  time,  the  "Guaranty"),  by  certain
Affiliates  of the  Borrower  party  thereto in favor of  Administrative  Agent.
Unless  specifically  defined  herein,  capitalized  terms used  herein have the
meaning set forth in the Credit Agreement.

     The undersigned  hereby confirms and agrees that it has been furnished with
and has read each of the Loan  Documents  in effect  as of the date  hereof  and
that,  effective  as of the  date  hereof,  the  undersigned  is a party  to and
obligated as a Guarantor under the Guaranty. The undersigned hereby warrants and
represents to you that the  representations and warranties of the undersigned as
a Guarantor under Section 3 of the Guaranty are true,  correct,  and complete in
all material respects on the date hereof.

     Very truly yours,

     [NAME OF NEW GUARANTOR], a _______________

                                       By:

                                     Title:

                               Notice Information:

                                    EXHIBIT H

                           FORM OF OPINION OF COUNSEL

                                    EXHIBIT I
                            FORM OF ALLOCATION NOTICE

                         BANC OF AMERICA SECURITIES LLC

                               October [__], 2000

                                    [LENDER]

Dear Ladies and Gentlemen:

     This  Confirmation  is delivered  with  reference to the  Five-Year  Credit
Agreement  and the 364-Day  Credit  Agreement,  each dated as of October 6, 2000
among Anixter Inc., certain of its subsidiaries, various financial institutions,
and Bank of  America,  N.A,  as  administrative  agent  (together,  the  "Credit
Agreements").

     The undersigned  serves as the Lead Arranger for the Commitments  under the
Credit  Agreements,  and  hereby  confirms  your  allocation  of  the  following
Commitments under the Credit Agreements:

     Five-Year Commitment $ 364-Day Commitment $

     BANC OF AMERICA SECURITIES LLC

     By: ________________________________
     Title: _______________________________

     ANIXTER INC.

     By: ________________________________
    Title: ______________________________

<PAGE>RECEIVABLES SALE AGREEMENT

                           dated as of October 6, 2000

                                     between

                                  ANIXTER INC.,
                                  as Originator

                                       AND

                        ANIXTER RECEIVABLES CORPORATION,
                                    as Buyer

<PAGE>

                           RECEIVABLES SALE AGREEMENT

     THIS  RECEIVABLES  SALE  AGREEMENT,  dated as of October 6, 2000, is by and
between  ANIXTER  INC.,  a Delaware  corporation,  ("Originator"),  and  ANIXTER
RECEIVABLES  CORPORATION,  a  Delaware  corporation  ("Buyer").  Unless  defined
elsewhere  herein,  capitalized  terms  used in this  Agreement  shall  have the
meanings assigned to such terms in Exhibit I.

                             PRELIMINARY STATEMENTS

     Originator now owns, and from time to time hereafter will own, Receivables.
Originator wishes to sell and assign to Buyer, and Buyer wishes to purchase from
Originator,  all of  Originator's  right,  title  and  interest  in and to  such
Receivables,  together with the Related  Security and  Collections  with respect
thereto.

     Originator and Buyer intend the transactions contemplated hereby to be true
sales of the Receivables from Originator to Buyer, providing Buyer with the full
benefits of ownership of the Receivables, and Originator and Buyer do not intend
these  transactions to be, or for any purpose to be characterized as, loans from
Buyer to Originator.

     Following  the purchase of  Receivables  from  Originator,  Buyer will sell
undivided   interests  therein  and  in  the  associated  Related  Security  and
Collections  pursuant to that certain Receivables Purchase Agreement dated as of
October  6,  2000  (as the  same may from  time to time  hereafter  be  amended,
supplemented,  restated or otherwise modified,  the "Purchase  Agreement") among
Buyer,  Originator,  as  Servicer,   Falcon  Asset  Securitization   Corporation
("Falcon"),  the  financial  institutions  from time to time  party  thereto  as
("Financial  Institutions")  and Bank One, NA or any successor  agent  appointed
pursuant to the terms of the  Purchase  Agreement,  as agent for Falcon and such
Financial Institutions (in such capacity, the "Agent").

ARTICLE I

<PAGE>

                         23 ARTICLE I AMOUNTS AND TERMS

                      Section 1.1 Purchase of Receivables.

(a) Effective on the date hereof,  in  consideration  for the Purchase Price and
upon the terms and subject to the conditions set forth herein,  Originator  does
hereby sell, assign,  transfer,  set-over and otherwise convey to Buyer, without
recourse (except to the extent expressly provided herein), and Buyer does hereby
purchase from Originator,  all of Originator's  right, title and interest in and
to all  Receivables  existing as of the close of business  on the  Business  Day
immediately  prior to the date  hereof and all  Receivables  thereafter  arising
through and including the Amortization  Date,  together,  in each case, with all
Related  Security  relating thereto and all Collections  thereof.  In accordance
with the  preceding  sentence,  on the date hereof  Buyer  shall  acquire all of
Originator's right, title and interest in and to all Receivables  existing as of
the close of business on the Business Day  immediately  prior to the date hereof
and thereafter  arising through and including the  Amortization  Date,  together
with  all  Related  Security  relating  thereto  and  all  Collections  thereof;
provided,  that,  Buyer shall be obligated to pay the Purchase Price therefor in
accordance  with  Section  1.2. In  connection  with the payment of the Purchase
Price for any Receivables purchased hereunder, Buyer may request that Originator
deliver, and Originator shall deliver,  such approvals,  opinions,  information,
reports or documents as Buyer may reasonably request.

(b) It is the intention of the parties  hereto that the Purchase of  Receivables
made  hereunder  shall  constitute a "sale of accounts" (as such term is used in
Article 9 of the UCC), which sale is absolute and irrevocable and provides Buyer
with the full benefits of ownership of the Receivables.  Except for the Purchase
Price Credits owed pursuant to Section 1.3, the sale of Receivables hereunder is
made without  recourse to  Originator;  provided,  however,  that (i) Originator
shall be liable to Buyer for all representations,  warranties and covenants made
by  Originator  pursuant  to the  terms of the  Transaction  Documents  to which
Originator  is a party,  and (ii)  such  sale  does  not  constitute  and is not
intended  to result in an  assumption  by Buyer or any  assignee  thereof of any
obligation  of Originator  or any other Person  arising in  connection  with the
Receivables,  the related  Contracts  and/or other Related Security or any other
obligations of  Originator.  In view of the intention of the parties hereto that
the  Purchase of  Receivables  made  hereunder  shall  constitute a sale of such
Receivables  rather than loans secured thereby,  Originator agrees that it will,
on or prior to the date hereof and in accordance with Section 4.1(e)(ii),  cause
all Receivable  reports relating to the Receivables to bear a legend  acceptable
to Buyer and to the Agent  (as  Buyer's  assignee),  evidencing  that  Buyer has
purchased  such  Receivables  as  provided  in this  Agreement  and  note in its
financial  statements  that its  Receivables  have been sold to Buyer.  Upon the
request of Buyer or the Agent (as Buyer's assignee), Originator will execute and
file such  financing  or  continuation  statements,  or  amendments  thereto  or
assignments  thereof, and such other instruments or notices, as may be necessary
or  appropriate  to perfect and maintain  the  perfection  of Buyer's  ownership
interest  in the  Receivables  and the Related  Security  and  Collections  with
respect thereto,  or as Buyer or the Agent (as Buyer's  assignee) may reasonably
request.

Section 1.2         Payment for the Purchase.

(a) The Purchase Price for the Purchase of Receivables in existence on the close
of  business  on the  Business  Day  immediate  preceding  the date  hereof (the
"Initial  Cutoff  Date") shall be payable in full by Buyer to  Originator on the
date hereof, and shall be paid to Originator in the following manner:

(i)      by delivery of immediately available funds, to the extent of funds made
         available  to  Buyer  in  connection  with  its  subsequent  sale of an
         interest  in such  Receivables  to the  Purchasers  under the  Purchase
         Agreement;  provided  that a portion of such  funds  shall be offset by
         amounts  owed by  Originator  to Buyer on  account of the  issuance  of
         equity in the manner  contemplated  in the  Subscription  Agreement and
         having a total value of not less than the  Required  Capital  Amount on
         the date hereof, and

(ii)     the balance,  by delivery of the proceeds of a  subordinated  revolving
         loan from Originator to Buyer (a "Subordinated  Loan") in an amount not
         to exceed  the least  of:  (A) the  remaining  unpaid  portion  of such
         Purchase  Price and (B) the  maximum  Subordinated  Loan that  could be
         borrowed  without  rendering  Buyer's Net Worth less than the  Required
         Capital Amount. The Originator is hereby authorized by Buyer to endorse
         on the  schedule  attached  to the  Subordinated  Note  an  appropriate
         notation evidencing the date and amount of each advance thereunder,  as
         well as the date of each payment with respect  thereto,  provided  that
         the failure to make such  notation  shall not affect any  obligation of
         Buyer thereunder.

     The Purchase  Price for each  Receivable  coming into  existence  after the
Initial Cutoff Date shall be due and owing in full by Buyer to Originator or its
designee on the date each such Receivable came into existence (except that Buyer
may, with respect to any such Purchase Price, offset against such Purchase Price
any amounts owed by Originator to Buyer  hereunder and which have become due but
remain  unpaid) and shall be paid to  Originator  in the manner  provided in the
following paragraphs (b), (c), (d) and (e).

(b) With respect to any Receivables coming into existence after the date hereof,
on each  Settlement  Date,  Buyer  shall  pay the  Purchase  Price  therefor  in
accordance with Section 1.2(d) and (e) and in the following manner:

     first, by delivery of immediately  available  funds, to the extent of funds
available  to  Buyer  from  (i)  its  subsequent  sale  of an  interest  in  the
Receivables  to the Agent for the benefit of the  Purchasers  under the Purchase
Agreement,  (ii)  Collections  arising from any  Receivables  previously sold to
Buyer in which Buyer has retained an interest, or (iii) other cash on hand;

     second, by delivery of the proceeds of a Subordinated  Loan,  provided that
the making of any such  Subordinated Loan shall be subject to the provisions set
forth in Section 1.2(a)(ii); and

     third,  unless the  Originator has declared the  Amortization  Date to have
occurred  pursuant to Section  5.2, by accepting a  contribution  to its capital
pursuant  to the  Subscription  Agreement  in an amount  equal to the  remaining
unpaid balance of such Purchase Price.

     Subject  to the  limitations  set forth in Section  1.2(a)(ii),  Originator
irrevocably  agrees to advance each  Subordinated  Loan requested by Buyer on or
prior to the Amortization  Date. The  Subordinated  Loans shall be evidenced by,
and  shall be  payable  in  accordance  with the  terms  and  provisions  of the
Subordinated  Note and shall be payable  solely  from funds  which  Buyer is not
required  under the  Purchase  Agreement  to set aside  for the  benefit  of, or
otherwise pay over to, the Purchasers.

(c) From and after the Amortization  Date,  Originator shall not be obligated to
(but may, at its option):  (i) sell  Receivables  to Buyer,  or (ii)  contribute
Receivables to Buyer's capital pursuant to clause third of Section 1.2(b) unless
Originator  reasonably  determines  that the  Purchase  Price  therefor  will be
satisfied  with  funds  available  to  Buyer  from  sales  of  interests  in the
Receivables  pursuant  to  the  Purchase  Agreement,  Collections,  proceeds  of
Subordinated Loans or otherwise.

(d) On each day prior to the Amortization  Date (unless Buyer or the Agent shall
otherwise  direct),  Buyer may permit  Originator  to retain all or a  specified
portion  of the  Collections  received  in respect  of  Receivables  theretofore
transferred by Originator to Buyer  hereunder,  it being  understood that in the
event Buyer shall have sold,  assigned or otherwise  transferred  an interest in
such  Receivables  to the  Agent for the  benefit  of the  Purchasers  under the
Purchase  Agreement,  such  Collections in the possession of such  Originator or
Buyer are made  available  to Buyer at the  discretion  of the  Agent.  Any such
Collections so retained by Originator  ("Applied  Collections") shall, on and as
of the date of receipt thereof,  be (i) deemed applied toward the Purchase Price
of any Receivables of Originator arising on such date and then being transferred
to Buyer pursuant to the terms hereof, to the extent of any such Purchase Price,
(ii) then,  in respect  of any  balance  remaining,  deemed  applied  toward the
Purchase  Price of any other  Receivables  of  Originator  arising  during  such
Accrual Period and in respect of which the Purchase Price shall not  theretofore
have been paid, to the extent of any such Purchase  Price,  and (iii) in respect
of any balance  remaining,  held in trust by Originator for the benefit of Buyer
until the earlier to occur of (A) application  toward the Purchase Price for any
Purchase occurring on any later date and (B) the next following Settlement Date,
in which case such amount shall be remitted to Buyer.

(e) Although the Purchase Price for each Receivable  coming into existence after
the date hereof shall be due and payable in full by Buyer to  Originator  on the
date such  Receivable  came into  existence,  and payment of such Purchase Price
shall be made from Applied Collections,  to the extent available, as provided in
Section  1.2(d),  final  settlement  of the  Purchase  Price  between  Buyer and
Originator shall be effected on a monthly basis on Settlement Dates with respect
to all Receivables  coming into existence during the same Calculation Period and
based on the  information  contained  in the  Monthly  Report  delivered  by the
Servicer pursuant to Article VIII of the Purchase  Agreement for the Calculation
Period then most recently ended. On each Settlement  Date,  Buyer and Originator
shall cause a reconciliation to made in respect of all Purchases that shall have
been made during the Calculation  Period then most recently ended. To the extent
that the aggregate amount of Applied  Collections  retained by Originator during
such Accrual  Period shall have been less than the aggregate  Purchase  Price in
respect of all Purchases made by Buyer from Originator during such month,  Buyer
shall pay the balance  due in respect of such  aggregate  Purchase  Price in the
manner  described in Section 1.2(a).  To the extent that the aggregate amount of
Applied Collections  retained by Originator during such Calculation Period shall
have been greater than the aggregate  Purchase Price in respect of all Purchases
made by Buyer from Originator during such Calculation  Period,  Originator shall
turn over such excess to Buyer  either by remitting  such excess in  immediately
available  funds to Buyer or by directing  that a reduction  in the  outstanding
balance of the Subordinated  Loan occur in an amount equal to such excess,  or a
combination of both.  Although settlement shall be effected on Settlement Dates,
increases  or decreases  in the amount  owing under the  Subordinated  Note made
pursuant to Section  1.2(b) and any  contribution  of capital by  Originator  to
Buyer made pursuant to Section 1.2(b) shall be deemed to have occurred and shall
be effective as of the last Business Day of the Calculation Period to which such
settlement relates.

(f)  At  all  times  prior  to  the   occurrence  of  the   Amortization   Date,
notwithstanding  any delay in the making of any payment of the Purchase Price in
respect of any Purchase,  all right,  title and interest of Originator in and to
each  Receivable  shall be sold,  assigned and  otherwise  transferred  to Buyer
effective  immediately and  automatically  upon the creation of such Receivable,
without any further action of any type or kind being required on the part of any
Person. The monthly  settlement and reconciliation  contemplated in this Section
1.2 has been devised  solely for the  administrative  convenience of the parties
hereto.  Buyer and Originator may at any time, as may agreed between themselves,
elect to effect settlement and  reconciliation on a more (but not less) frequent
basis.

Section 1.3         Purchase Price Credit Adjustments.  If on any day:

(a)      the Outstanding Balance of a Receivable is:

(i)      reduced as a result of any defective or rejected goods or services, any
         discount or any adjustment or otherwise by Originator (other than cash
         Collections on account of the Receivables); or

(ii)     reduced or  canceled as a result of a setoff in respect of any claim by
         any  Person  (whether  such  claim  arises out of the same or a related
         transaction or an unrelated transaction); or

(b)      any of the representations and warranties set forth in paragraphs (i)
         and (s) of Section 2.1 are no longer true with respect to any
         Receivable;
then,  in such event,  Buyer shall be  entitled to a credit  (each,  a "Purchase
Price Credit") against the Purchase Price otherwise  payable  hereunder equal to
the  Outstanding  Balance of such  Receivable.  If such  Purchase  Price  Credit
exceeds the Original  Balance of the  Receivables  coming into  existence on any
day,  then  Originator  shall pay the remaining  amount of such  Purchase  Price
Credit in cash within three (3) Business Days  thereafter,  provided that if the
Amortization  Date has not occurred,  Originator  shall be allowed to deduct the
remaining amount of such Purchase Price Credit from any indebtedness  owed to it
under the Subordinated Note.

Section 1.4 Payments and Computations,  Etc. All amounts to be paid or deposited
by Buyer  hereunder  shall be paid or  deposited  in  accordance  with the terms
hereof on the day when due in  immediately  available  funds to the  account  of
Originator  designated from time to time by Originator or as otherwise  directed
by  Originator.  In the event  that any  payment  owed by any  Person  hereunder
becomes due on a day that is not a Business Day, then such payment shall be made
on the next  succeeding  Business  Day.  If any  Person  fails to pay any amount
hereunder  when due,  such Person  agrees to pay, on demand,  the Default Fee in
respect  thereof until paid in full;  provided,  however,  that such Default Fee
shall not at any time exceed the maximum rate  permitted by applicable  law. All
computations of interest payable  hereunder shall be made on the basis of a year
of 360 days for the actual number of days (including the first but excluding the
last day) elapsed.

Section 1.5         Transfer of Records.

(a) In connection with the Purchase of Receivables hereunder,  Originator hereby
sells,  transfers,  assigns and otherwise  conveys to Buyer all of  Originator's
right and title to and interest in the Records  relating to all Receivables sold
hereunder, without the need for any further documentation in connection with the
Purchase. In connection with such transfer,  Originator hereby grants to each of
Buyer, the Agent and the Servicer, an irrevocable, non-exclusive license to use,
without  royalty or payment of any kind,  all  software  used by  Originator  to
account  for  the  Receivables,  to  the  extent  necessary  to  administer  the
Receivables,  whether such software is owned by Originator or is owned by others
and used by Originator under license  agreements with respect thereto,  provided
that  should the  consent of any  licensor  of  Originator  to such grant of the
license  described  herein be required,  Originator  hereby agrees that upon the
request of Buyer (or the Agent as  Buyer's  assignee),  Originator  will use its
reasonable  efforts to obtain  the  consent of such  third-party  licensor.  The
license  granted hereby shall be  irrevocable,  and shall  terminate on the date
this Agreement terminates in accordance with its terms.

(b)  Originator  (i) shall take such action  requested by Buyer and/or the Agent
(as Buyer's  assignee),  from time to time  hereafter,  that may be necessary or
appropriate  to ensure that Buyer and its assigns  under the Purchase  Agreement
have  an  enforceable   ownership  interest  in  the  Records  relating  to  the
Receivables  purchased  from  Originator  hereunder,  and  (ii)  shall  use  its
reasonable  efforts to ensure that each of the Buyer, the Agent and the Servicer
has an enforceable  right  (whether by license,  sublicense or otherwise) to use
all of the computer  software used by Originator to account for the  Receivables
and/or to recreate such Records.

Section 1.6 Characterization.  If,  notwithstanding the intention of the parties
expressed in Section 1.1(b),  any sale or contribution by Originator to Buyer of
Receivables  hereunder shall be  characterized as a secured loan and not a sale,
or such sale shall for any reason be  ineffective  or  unenforceable,  then this
Agreement  shall be deemed to constitute a security  agreement under the UCC and
other  applicable  law. For this purpose and without  being in derogation of the
parties'  intention that the sale of Receivables  hereunder  shall  constitute a
true sale thereof,  Originator hereby grants to Buyer a duly perfected  security
interest in all of Originator's  right,  title and interest in, to and under all
Receivables  now  existing  and  hereafter  arising,  all  Collections,  Related
Security and Records with respect thereto,  each Lock-Box and Collection Account
and all proceeds of the foregoing, which security interest shall be prior to all
other Adverse Claims  thereto.  After the occurrence of an  Amortization  Event,
Buyer and its assigns shall have,  in addition to the rights and remedies  which
they may have under this Agreement,  all other rights and remedies provided to a
secured  creditor  after default under the UCC and other  applicable  law, which
rights and remedies shall be cumulative.

ARTICLE II
                         REPRESENTATIONS AND WARRANTIES

Section 2.1  Representations  and  Warranties of Originator.  Originator  hereby
represents  and  warrants to Buyer,  as of the date hereof and as of the date of
each purchase hereunder, that:

(a) Corporate  Existence and Power.  Originator is a corporation duly organized,
validly  existing and in good standing  under the laws of the State of Delaware,
and is duly  qualified  to do  business  and is in good  standing  as a  foreign
corporation,  and  has and  holds  all  corporate  power  and  all  governmental
licenses,  authorizations,  consents  and  approvals  required  to  carry on its
business in each  jurisdiction in which its business is conducted,  except where
the failure to so qualify  could not  reasonably  be expected to have a Material
Adverse Effect.

(b) Power and Authority; Due Authorization Execution and Delivery. The execution
and delivery by Originator of this Agreement and each other Transaction Document
to which it is a party,  and the  performance of its  obligations  hereunder and
thereunder and, Originator's use of the proceeds of the Purchase made hereunder,
are within its corporate  powers and authority and have been duly  authorized by
all  necessary  corporate  action on its part.  This  Agreement  and each  other
Transaction  Document to which  Originator is a party has been duly executed and
delivered by Originator.

(c) No Conflict.  The execution and delivery by Originator of this Agreement and
each other  Transaction  Document to which it is a party, and the performance of
its  obligations  hereunder and  thereunder do not contravene or violate (i) its
certificate  or articles of  incorporation  or  by-laws,  (ii) any law,  rule or
regulation  applicable  to it,  (iii)  any  restrictions  under  any  agreement,
contract  or  instrument  to  which  it is a party  or by which it or any of its
property is bound,  or (iv) any order,  writ,  judgment,  award,  injunction  or
decree  binding on or  affecting  it or its  property,  and do not result in the
creation or  imposition  of any  Adverse  Claim on assets of  Originator  or its
Subsidiaries  (except as created  hereunder),  except,  in any case,  where such
contravention  or violation  could not reasonably be expected to have a Material
Adverse Effect; and no transaction  contemplated hereby requires compliance with
any bulk sales act or similar law.

(d)  Governmental  Authorization.   Other  than  the  filing  of  the  financing
statements required hereunder,  no authorization or approval or other action by,
and no notice to or filing with, any  governmental  authority or regulatory body
is required for the due execution  and delivery by Originator of this  Agreement
and each other  Transaction  Document to which it is a party and the performance
of its obligations hereunder and thereunder.

(e) Actions,  Suits. There are no actions,  suits or proceedings  pending, or to
the best of Originator's knowledge, threatened, against or affecting Originator,
or any of its properties, in or before any court, arbitrator or other body, that
could  reasonably be expected to have a Material  Adverse Effect.  Originator is
not  in  default  with  respect  to  any  order  of  any  court,  arbitrator  or
governmental  body,  which  defaults,  individually  or in the  aggregate  could
reasonably be expected to have a Material Adverse Effect.

(f) Binding Effect. This Agreement and each other Transaction  Document to which
Originator is a party  constitute  the legal,  valid and binding  obligations of
Originator  enforceable  against  Originator in accordance with their respective
terms,  except as such  enforcement  may be  limited by  applicable  bankruptcy,
insolvency,  reorganization  or  other  similar  laws  relating  to or  limiting
creditors' rights generally and by general  principles of equity  (regardless of
whether enforcement is sought in a proceeding in equity or at law).

(g) Accuracy of Information.  All information heretofore furnished by Originator
or any of its  Affiliates  to  Buyer  (or its  assigns)  for  purposes  of or in
connection with this Agreement,  any of the other  Transaction  Documents or any
transaction  contemplated  hereby  or  thereby  is,  and  all  such  information
hereafter  furnished by  Originator  or any of its  Affiliates  to Buyer (or its
assigns) will be, true and accurate in every  material  respect on the date such
information  is  stated  or  certified  and does not and  will not  contain  any
material  misstatement  of fact or omit to  state a  material  fact or any  fact
necessary to make the statements contained therein not misleading.

(h) Use of Proceeds.  No proceeds of the Purchase hereunder will be used (i) for
a purpose that violates,  or would be inconsistent  with,  Regulations T, U or X
promulgated by the Board of Governors of the Federal Reserve System from time to
time or (ii) to acquire  any  security  in any  transaction  which is subject to
Section 13 or 14 of the Securities Exchange Act of 1934, as amended.

(i) Good  Title.  Immediately  prior  to the  time  each  Receivable  came  into
existence,  Originator  shall be the  legal  and  beneficial  owner of each such
Receivables  and Related  Security with respect  thereto,  free and clear of any
Adverse Claim, except as created by the Transaction Documents.

(j)  Perfection.  This  Agreement,  together  with the  filing of the  financing
statements  contemplated  hereby,  is  effective to transfer to Buyer (and Buyer
shall acquire from  Originator)  legal and equitable title to, with the right to
sell and encumber each Receivable existing and hereafter arising,  together with
the Related Security and Collections with respect thereto, free and clear of any
Adverse Claim, except as created by the Transactions Documents.  There have been
duly filed all financing  statements or other similar  instruments  or documents
necessary under the UCC (or any comparable law) of all appropriate jurisdictions
to perfect Buyer's ownership  interest in the Receivables,  the Related Security
and the Collections.

(k) Places of Business.  The  principal  places of business and chief  executive
office of  Originator  and the  offices  where it keeps all of its  Records  are
located at the address(es) listed on Exhibit II or such other locations of which
Buyer has been notified in accordance with Section 4.2(a) in jurisdictions where
all action required by Section 4.2(a) has been taken and completed. Originator's
Federal Employer Identification Number is correctly set forth on Exhibit II.

(l)  Collections.  The conditions and  requirements  set forth in Section 4.1(i)
have at all times been satisfied and duly performed.  The names and addresses of
all  Collection  Banks,  together  with the  account  numbers of the  Collection
Accounts of Originator at each Collection Bank and the post office box number of
each Lock-Box, are listed on Exhibit III.

(m)   Material Adverse Effect.  Since December 31, 1999 no event has occurred
that would have a Material Adverse Effect.

(n) Names.  Except for those  listed on Exhibit  II, in the past five (5) years,
Originator has not used any corporate names,  trade names or assumed names other
than the name in which it has executed this Agreement.

(o) Ownership of Buyer.  Originator  owns,  directly or indirectly,  100% of the
issued and  outstanding  capital  stock of Buyer,  free and clear of any Adverse
Claim. Such capital stock is validly issued,  fully paid and nonassessable,  and
there are no options, warrants or other rights to acquire securities of Buyer.

(p) Not a Holding Company or an Investment Company. Originator is not a "holding
company" or a "subsidiary  holding  company" of a "holding  company"  within the
meaning of the Public Utility  Holding  Company Act of 1935, as amended,  or any
successor statute.  Originator is not an "investment company" within the meaning
of the Investment Company Act of 1940, as amended, or any successor statute.

(q)  Compliance  with Law.  Originator  has  complied in all  respects  with all
applicable laws, rules,  regulations,  orders,  writs,  judgments,  injunctions,
decrees or awards to which it may be  subject,  except  where the  failure to so
comply could not reasonably be expected to have a Material Adverse Effect.  Each
Receivable,  together with the Contract related thereto, does not contravene any
laws, rules or regulations  applicable thereto  (including,  without limitation,
laws, rules and regulations  relating to truth in lending,  fair credit billing,
fair credit reporting, equal credit opportunity,  fair debt collection practices
and privacy), and no part of such Contract is in violation of any such law, rule
or regulation, except where such contravention or violation could not reasonably
be expected to have a Material Adverse Effect.

(r) Compliance with Credit and Collection Policy. Originator has complied in all
material  respects  with the Credit and  Collection  Policy  with regard to each
Receivable and the related Contract,  and has not made any change to such Credit
and Collection Policy except such material change as to which the Agent has been
notified in accordance with Section 4.1(a)(iii).

(s)  Enforceability of Contracts.  Each Contract with respect to each Receivable
is effective to create,  and has created,  a legal, valid and binding obligation
of the related Obligor to pay the Outstanding  Balance of the Receivable created
thereunder and any accrued interest thereon,  enforceable against the Obligor in
accordance  with  its  terms,  except  as such  enforcement  may be  limited  by
applicable bankruptcy, insolvency, reorganization or other similar laws relating
to or limiting  creditors' rights generally and by general  principles of equity
(regardless  of whether  enforcement  is sought in a proceeding  in equity or at
law).

(t) Eligible  Receivables.  Each Receivable included in the Net Receivables
Balance as an  Eligible  Receivable  on the date it came into  existence  was an
Eligible Receivable on such date.

(u)  Accounting.   The  manner  in  which   Originator   accounts  for  the
transactions  contemplated  by this  Agreement does not jeopardize the true sale
analysis.

ARTICLE III
                             CONDITIONS OF PURCHASE

Section 3.1 Conditions Precedent to Purchase.  The Purchase under this Agreement
is subject to the conditions  precedent that (a) Buyer shall have received on or
before the date of such purchase  those  documents  listed on Schedule A and (b)
all of the conditions to the initial purchase under the Purchase Agreement shall
have been satisfied or waived in accordance with the terms thereof.

Section 3.2 Conditions Precedent to Subsequent  Payments.  Buyer's obligation to
pay for Receivables coming into existence after the date hereof shall be subject
to the further conditions precedent that (a) the Facility Termination Date shall
not have  occurred;  and (b) Buyer  shall have  received  such other  approvals,
opinions or documents as it may reasonably  request.  Originator  represents and
warrants that the  representations  and  warranties  set forth in Article II are
true and correct on and as of the date each  Receivable  came into  existence as
though made on and as of such date.

ARTICLE IV
                                    COVENANTS

Section 4.1  Affirmative  Covenants of Originator.  Until the date on which this
Agreement  terminates in accordance with its terms,  Originator hereby covenants
as set forth below:

(a)      Financial Reporting.  Originator will maintain, for itself and each of
         its Subsidiaries, a system of accounting established and administered
         in accordance with generally accepted accounting principles, and
         furnish to Buyer (or its assigns):

(i)      Annual  Reporting.  Within  90  days  after  the  close  of each of its
         respective  fiscal years,  audited  financial  statements  (which shall
         include balance sheets,  statements of income and retained earnings and
         a  statement  of cash  flows)  for  Originator  for  such  fiscal  year
         certified in a manner  acceptable  to Buyer (or its assigns) by Ernst &
         Young or other independent public accountants  reasonably acceptable to
         Buyer (or its assigns).

(ii)     Quarterly Reporting.  Within 45 days after the close of the first three
         (3) quarterly periods of each of its respective  fiscal years,  balance
         sheets of Originator as at the close of each such period and statements
         of income  and  retained  earnings  and a  statement  of cash flows for
         Originator for the period from the beginning of such fiscal year to the
         end of such quarter,  all certified by its chief  financial  officer or
         treasurer.

(iii)    Compliance Certificate. Together with the financial statements required
         hereunder,  a  compliance  certificate  in  substantially  the  form of
         Exhibit  IV  signed by  Originator's  Authorized  Officer  on behalf of
         Originator  and dated the date of such annual  financial  statement  or
         such quarterly financial statement, as the case may be.

(iv)     Shareholders Statements and Reports.  Promptly upon the furnishing
         thereof to the shareholders of Originator copies of all financial
         statements, reports and proxy statements so furnished.

(v)      S.E.C. Filings.  Promptly upon the filing thereof, copies of all
         registration statements and annual, quarterly, monthly or other regular
         reports which Originator or any of its Subsidiaries files with the
         Securities and Exchange Commission.

(vi)     Copies of Notices. Promptly upon its receipt of any notice, request for
         consent,   financial   statements,   certification,   report  or  other
         communication under or in connection with any Transaction Document from
         any Person other than Buyer, the Agent or Falcon, copies of the same.

(vii)    Change in Credit and Collection Policy.  At least thirty (30) days
         prior to the effectiveness of any material change in or material
         amendment to the Credit and Collection Policy, a notice (A) indicating
         such change or amendment, and (B) if such proposed change or amendment
         would be reasonably likely to adversely affect the collectibility of
         the Receivables or decrease the credit quality of any newly created
         Receivables, requesting the Agent's consent thereto; provided that if
         such change or amendment was required pursuant to any change in any
         applicable law, rule or regulation, the Originator shall only be
         required to give notice of such change or amendment and shall not be
         required to request the consent of the Agent.

(viii)   Other Information. Promptly, from time to time, such other information,
         documents,  records  or  reports  relating  to the  Receivables  or the
         condition or operations, financial or otherwise, of Originator as Buyer
         (or its assigns) may from time to time  reasonably  request in order to
         protect  the  interests  of  Buyer  (and  its  assigns)   under  or  as
         contemplated by this Agreement.

(b) Notices. Originator will notify the Buyer (or its assigns) in writing of any
of the following  promptly upon learning of the occurrence  thereof,  describing
the same and, if applicable, the steps being taken with respect thereto:

(i)      Amortization Events or Potential Amortization Events.  The occurrence
         of each Amortization Event and each Potential Amortization Event, by a
         statement of an Authorized Officer of Originator.

(ii)     Judgment  and  Proceedings.  (A) The  entry of any  judgment  or decree
         against  Originator or any of its  Subsidiaries if the aggregate amount
         of all judgments and decrees then  outstanding  against  Originator and
         its  Subsidiaries  exceeds  $25,000,000,  or (B) the institution of any
         litigation,  arbitration proceeding or governmental  proceeding against
         Originator,  which individually or in the aggregate could reasonably be
         expected to have a Material  Adverse  Effect,  or which seeks to enjoin
         performance of or otherwise relates to the Transaction Documents.

(iii)    Material Adverse Effect.  The occurrence of any event or condition that
        has, or could reasonably be expected to have, a Material Adverse
         Effect.

(iv)     Defaults  Under Other  Agreements.  The  occurrence  of a default or an
         event of default under any other financing  arrangement or arrangements
         governing  indebtedness,  individually or in the aggregate for all such
         arrangements,   in  a  principal   amount  greater  than  or  equal  to
         $25,000,000, pursuant to which Originator is a debtor or an obligor.

(v)      Downgrade of the Originator.  Any downgrade in the rating of any
         Indebtedness of the Originator by Standard and Poor's Ratings Group or
         by Moody's Investors Service, Inc., setting forth the Indebtedness
         affected and the nature of such change.

(c) Compliance  with Laws and  Preservation of Corporate  Existence.  Originator
will  comply in all  respects  with all  applicable  laws,  rules,  regulations,
orders,  writs,  judgments,  injunctions,  decrees  or awards to which it may be
subject  except where the failure to comply could not  reasonably be expected to
have a Material  Adverse  Effect.  Originator  will  preserve  and  maintain its
corporate  existence,  rights,  franchises and privileges in the jurisdiction of
its  incorporation,  and  qualify  and remain  qualified  in good  standing as a
foreign corporation in each jurisdiction where its business is conducted, except
where the  failure to maintain or qualify  could not  reasonably  be expected to
have a Material Adverse Effect.

(d) Audits.  Originator will furnish to Buyer (or its assigns) from time to time
such  information  with  respect  to it and the  Receivables  as  Buyer  (or its
assigns)  may  reasonably  request.  Originator  will,  from time to time during
regular  business hours as requested by Buyer (or its assigns),  upon reasonable
notice and at the sole cost of Originator except as provided below, permit Buyer
(or its assigns) or their respective agents or  representatives,  (i) to examine
and make copies of and abstracts from all Records in the possession or under the
control of  Originator  relating to the  Receivables  and the Related  Security,
including,  without  limitation,  the related  Contracts,  and (ii) to visit the
offices and properties of Originator for the purpose of examining such materials
described in clause (i) above,  and to discuss matters  relating to Originator's
financial  condition or the Receivables and the Related Security or Originator's
performance under any of the Transaction  Documents or Originator's  performance
under the Contracts and, in each case,  with any of the officers or employees of
Originator   having  knowledge  of  such  matters.   So  long  as  no  Potential
Amortization  Event or Amortization  Event exists, the visits under this Section
4.1(d) that are at the sole cost of the  Originator and that are requested by an
assignee of the Buyer shall be limited to one per calendar year.

(e)      Keeping and Marking of Records and Books.

(i)      Originator  will  maintain and implement  administrative  and operating
         procedures  (including,  without  limitation,  an ability  to  recreate
         records  evidencing  Receivables in the event of the destruction of the
         originals thereof), and keep and maintain all documents, books, records
         and  other  information  reasonably  necessary  or  advisable  for  the
         collection of all Receivables (including,  without limitation,  records
         adequate to permit the immediate  identification of each new Receivable
         and all  Collections of and  adjustments to each existing  Receivable).
         Originator  will give  Buyer (or its  assigns)  notice of any  material
         change in the  administrative and operating  procedures  referred to in
         the previous sentence.

     (ii) Originator will (A) on or prior to the date hereof,  cause all reports
relating  to the  Receivables  to bear a  legend,  acceptable  to Buyer  (or its
assigns),  describing Buyer's ownership interests in the Receivables and further
describing  the Purchaser  Interests of the Agent (on behalf of the  Purchasers)
under  the  Purchase  Agreement  and (B) from and  after  the  occurrence  of an
Amortization  Event,  (x) mark each  Contract with a legend  describing  Buyer's
ownership  interests in the  Receivables  and further  describing  the Purchaser
Interests  of the Agent (on behalf of the  Purchasers)  and (y) deliver to Buyer
(or its assigns) all  Contracts  (including,  without  limitation,  all multiple
originals of any such Contract) relating to the Receivables.

     (f) Compliance with Contracts and Credit and Collection Policy.  Originator
will timely and fully (i) perform and comply with all provisions,  covenants and
other promises  required to be observed by it under the Contracts related to the
Receivables,  and (ii)  comply in all  respects  with the Credit and  Collection
Policy in regard to each  Receivable and the related  Contract.  Originator will
pay when due any taxes payable in connection with the Receivables,  exclusive of
taxes on or measured by income or gross receipts of Buyer and its assigns.

     (g) Ownership.  Originator will take all necessary  action to establish and
maintain,  irrevocably in Buyer,  legal and equitable title to the  Receivables,
the Related Security and the  Collections,  free and clear of any Adverse Claims
other  than  Adverse  Claims  in favor of Buyer  (and its  assigns)  (including,
without  limitation,  the filing of all  financing  statements  or other similar
instruments or documents  necessary under the UCC (or any comparable law) of all
appropriate  jurisdictions  to perfect  Buyer's  interest  in such  Receivables,
Related  Security and Collections  and such other action to perfect,  protect or
more  fully  evidence  the  interest  of  Buyer as Buyer  (or its  assigns)  may
reasonably request).

     (h) Purchasers'  Reliance.  Originator  acknowledges that the Agent and the
Purchasers  are  entering  into the  transactions  contemplated  by the Purchase
Agreement in reliance  upon Buyer's  identity as a legal entity that is separate
from Originator and any Affiliates thereof.  Therefore,  from and after the date
of execution and delivery of this Agreement, Originator will take all reasonable
steps  including,  without  limitation,  all steps that Buyer or any assignee of
Buyer may from time to time reasonably request to maintain Buyer's identity as a
separate  legal entity and to make it manifest to third parties that Buyer is an
entity with assets and  liabilities  distinct from those of  Originator  and any
Affiliates  thereof and not just a division of Originator.  Without limiting the
generality  of the  foregoing  and in addition to the other  covenants set forth
herein,  Originator  (i) will not hold itself out to third parties as liable for
the debts of Buyer nor purport to own the  Receivables and other assets acquired
by Buyer from Originator, (ii) will take all other actions necessary on its part
to ensure that Buyer is at all times in compliance  with the covenants set forth
in  Section  7.1(i)  of the  Purchase  Agreement  and (iii)  will  cause all tax
liabilities  arising in connection with the transactions  contemplated herein or
otherwise to be allocated between  Originator and Buyer on an arm's-length basis
and in a  manner  consistent  with the  procedures  set  forth in U.S.  Treasury
Regulations ss.ss.1.1502-33(d) and 1.1552-1.

     (i) Collections. Originator will cause (1) all proceeds from all Lock-Boxes
to be directly  deposited by a Collection Bank into a Collection Account and (2)
each Lock-Box and Collection  Account to be subject at all times to a Collection
Account  Agreement  that is in full force and effect.  In the event any payments
relating to Receivables are remitted  directly to Originator or any Affiliate of
Originator,  Originator  will  remit  (or will  cause  all such  payments  to be
remitted)  directly to a Collection  Bank for deposit into a Collection  Account
within two (2) Business Days following  receipt  thereof and, at all times prior
to such  remittance,  Originator will itself hold or, if applicable,  will cause
such  payments  to be held in trust for the  exclusive  benefit of Buyer and its
assigns.  Originator will transfer exclusive ownership,  dominion and control of
each Lock-Box and  Collection  Account to Buyer and, will not grant the right to
take dominion and control of any Lock-Box or Collection Account at a future time
or upon the occurrence of a future event to any Person,  except to Buyer (or its
assigns) as contemplated by this Agreement and the Purchase Agreement.

     (j) Taxes. Originator will file all tax returns and reports required by law
to be filed by it and  promptly  pay all taxes and  governmental  charges at any
time  owing , except any such taxes  which are not yet  delinquent  or are being
diligently  contested  in good faith by  appropriate  proceedings  and for which
adequate reserves in accordance with generally  accepted  accounting  principles
shall  have been set aside on its  books,  unless  the  failure to make any such
payment (1) shall give rise to an immediate  right to  foreclosure on an Adverse
Claim  securing  such  amounts,  or (2) could  reasonably  be expected to have a
Material Adverse Effect.

     (k)  Insurance.  Originator  will  maintain  in  effect,  or  cause  to  be
maintained in effect,  at Originator's own expense,  such casualty and liability
insurance as Originator deems appropriate in its good faith business  judgement.
Originator  will pay or cause to be paid,  the premiums  therefor and deliver to
Buyer  and the  Agent  evidence  satisfactory  to  Buyer  and the  Agent of such
insurance coverage. Copies of each policy shall be furnished to Buyer, the Agent
and any  Purchaser  in  certificated  form upon  Buyer's,  the  Agent's  or such
Purchaser's  request.  The  foregoing  requirements  shall not be  construed  to
negate,  reduce or modify,  and are in  addition  to,  Originator's  obligations
hereunder.

Section  4.2  Negative  Covenants  of  Originator.  Until the date on which this
Agreement  terminates in accordance with its terms,  Originator hereby covenants
that:

(a) Name  Change,  Offices  and  Records.  Originator  will not change its name,
identity or corporate  structure  (within the meaning of Section 9-402(7) of any
applicable  enactment  of the UCC, or within the meaning of Section  9-507(c) of
Revised  Article 9 of the UCC) or  relocate  its chief  executive  office or any
office  where  Records are kept  unless it shall  have:  (i) given Buyer (or its
assigns) at least  forty-five  (45) days' prior written  notice thereof and (ii)
delivered to Buyer (or its assigns) all financing  statements,  instruments  and
other  documents  requested  by Buyer (or its assigns) in  connection  with such
change or relocation.

(b) Change in Payment Instructions to Obligors. Except as may be required by the
Agent pursuant to Section 8.2(b) of the Purchase Agreement,  Originator will not
add or  terminate  any bank as a  Collection  Bank,  or make any  change  in the
instructions  to  Obligors  regarding  payments  to be made to any  Lock-Box  or
Collection Account,  unless Buyer (or its assigns) shall have received, at least
ten (10) days before the proposed effective date therefor, (i) written notice of
such addition,  termination or change and (ii) with respect to the addition of a
Collection  Bank or a  Collection  Account or Lock-Box,  an executed  Collection
Account  Agreement  with  respect to the new  Collection  Account  or  Lock-Box;
provided,  however, that Originator may make changes in instructions to Obligors
regarding  payments  if such  new  instructions  require  such  Obligor  to make
payments to another existing Collection Account.

(c) Modifications to Contracts and Credit and Collection Policy. Originator will
not make any change to the Credit and Collection Policy that could reasonably be
expected to adversely affect the  collectibility  of the Receivables or decrease
the credit quality of any newly created  Receivables unless required to do so by
any  applicable  law, rule or regulation.  Except as otherwise  permitted in its
capacity  as  Servicer  pursuant to Section  8.2(d) of the  Purchase  Agreement,
Originator  will  not  extend,  amend  or  otherwise  modify  the  terms  of any
Receivable or any Contract  related  thereto  other than in accordance  with the
Credit and Collection Policy.

(d) Sales,  Liens.  Originator  will not sell,  assign (by  operation  of law or
otherwise)  or  otherwise  dispose of, or grant any option  with  respect to, or
create or suffer to exist any Adverse Claim upon (including, without limitation,
the filing of any  financing  statement)  or with  respect  to, any  Receivable,
Related  Security or Collections,  or upon or with respect to any Contract under
which any Receivable  arises, or any Lock-Box or Collection  Account,  or assign
any right to receive income with respect  thereto (other than, in each case, the
creation of the interests  therein in favor of Buyer  provided for herein),  and
Originator  will defend the right,  title and interest of Buyer in, to and under
any of the  foregoing  property,  against all claims of third  parties  claiming
through or under Originator.  Originator shall not create or suffer to exist any
mortgage, pledge, security interest,  encumbrance, lien, charge or other similar
arrangement on any of its inventory.

(e)  Accounting  for  Purchase.  Originator  will not,  and will not  permit any
Affiliate  to,  account  for  or  treat  (whether  in  financial  statements  or
otherwise)  the  transactions  contemplated  hereby in any manner other than the
sale of the  Receivables  and the Related  Security by Originator to Buyer or in
any other respect account for or treat the transactions  contemplated  hereby in
any manner other than as a sale of the Receivables  and the Related  Security by
Originator  to  Buyer  except  to the  extent  that  such  transactions  are not
recognized on account of  consolidated  financial  reporting in accordance  with
generally accepted accounting principles.

ARTICLE V
                               AMORTIZATION EVENTS

     Section 5.1 Amortization  Events.  The occurrence of any one or more of the
following events shall constitute an Amortization Event:

(a) Originator shall fail (i) to make any payment or deposit required  hereunder
when due,  or (ii) to  perform  or  observe  any  term,  covenant  or  agreement
hereunder (other than as referred to in clause (i) of this paragraph (a)) or any
other  Transaction  Document  to which  it is a party  and  such  failure  shall
continue for three (3) consecutive Business Days.

(b) Any representation,  warranty, certification or statement made by Originator
in this  Agreement,  any other  Transaction  Document  or in any other  document
delivered  pursuant  hereto or thereto shall prove to have been  incorrect  when
made or deemed made; provided,  however,  that any breach of the representations
and warranties set forth in Sections 2.1(i),  (s) or (t) shall not constitute an
Amortization  Event unless such breach or breaches  apply in the  aggregate to a
material portion of the Receivables.

(c) Failure of Originator to pay when due any Indebtedness having an outstanding
principal balance in excess of $25,000,000;  or the default by Originator in the
performance of any term, provision or condition contained in any agreement under
which any such  Indebtedness was created or is governed,  the effect of which is
to cause, or to permit the holder or holders of such Indebtedness to cause, such
Indebtedness  to  become  due  prior  to  its  stated  maturity;   or  any  such
Indebtedness  of Originator  shall be declared to be due and payable or required
to be prepaid (other than by a regularly scheduled payment) prior to the date of
maturity thereof.

(d) (i) Originator or any of its  Significant  Subsidiaries  shall generally not
pay its debts as such debts  become due or shall admit in writing its  inability
to pay its debts generally or shall make a general assignment for the benefit of
creditors;  or (ii) any proceeding shall be instituted by or against  Originator
or any of its  Significant  Subsidiaries  seeking to  adjudicate  it bankrupt or
insolvent,  or seeking  liquidation,  winding up,  reorganization,  arrangement,
adjustment,  protection,  relief or composition of it or its debts under any law
relating to bankruptcy,  insolvency or reorganization  or relief of debtors,  or
seeking  the entry of an order  for  relief or the  appointment  of a  receiver,
trustee  or  other  similar  official  for it or  any  substantial  part  of its
property;  provided  that in the  event  any such  proceedings  shall  have been
instituted  against Originator or any Significant  Subsidiary,  such proceedings
shall have continued undismissed or unstayed and in effect for a period of sixty
(60)  consecutive  days or an order for relief  shall have been  entered in such
proceedings;  or (iii) Originator or any of its Significant  Subsidiaries  shall
take any  corporate  action to  authorize  any of the  actions  set forth in the
foregoing clause (i) or (ii) of this subsection (d).

(e)      A Change of Control shall occur.

(f) One or more final  judgments for the payment of money in an amount in excess
of  $25,000,000,  individually  or in the  aggregate,  shall be entered  against
Originator,  and such judgment shall continue  unsatisfied and in effect for ten
(10) consecutive days without a stay of execution.

Section 5.2 Remedies.  Upon the  occurrence  and during the  continuation  of an
Amortization Event, Buyer may take any of the following actions: (i) declare the
Amortization  Date to have  occurred,  whereupon  the  Amortization  Date  shall
forthwith occur,  without demand,  protest or further notice of any kind, all of
which are hereby expressly waived by Originator;  provided,  however,  that upon
the occurrence of Amortization Event described in Section  5.1(d)(ii),  or of an
actual or deemed entry of an order for relief with respect to  Originator  under
the Federal  Bankruptcy Code, the Amortization Date shall  automatically  occur,
without  demand,  protest  or any  notice of any kind,  all of which are  hereby
expressly  waived by  Originator  and (ii) to the fullest  extent  permitted  by
applicable  law,  declare  that the Default Fee shall accrue with respect to any
amounts then due and owing by Buyer to Originator. The aforementioned rights and
remedies  shall be in addition to all other rights and remedies of Buyer and its
assigns  available  under this  Agreement,  by  operation  of law,  at equity or
otherwise,  all of which are  hereby  expressly  preserved,  including,  without
limitation,  all rights and remedies provided under the UCC, all of which rights
shall be cumulative.

ARTICLE VI
                                 INDEMNIFICATION

Section 6.1  Indemnities by Originator.  Without  limiting any other rights that
Buyer may have hereunder or under  applicable law,  Originator  hereby agrees to
indemnify Buyer and its assigns, officers, directors, agents and employees (each
an "Indemnified  Party") from and against any and all damages,  losses,  claims,
taxes, liabilities, costs, expenses and for all other amounts payable, including
reasonable  attorneys'  fees  and  disbursements  (all  of the  foregoing  being
collectively  referred to as "Indemnified  Amounts") awarded against or incurred
by  any  of  them  arising  out  of or as a  result  of  this  Agreement  or the
acquisition,  either  directly  or  indirectly,  by Buyer of an  interest in the
Receivables, excluding, however:

(i)      Indemnified  Amounts  to the  extent  a final  judgment  of a court  of
         competent  jurisdiction  holds that such  Indemnified  Amounts resulted
         from  gross  negligence  or  willful  misconduct  on  the  part  of the
         Indemnified Party seeking indemnification;

(ii)     Indemnified  Amounts to the extent the same includes  losses in respect
         of Receivables  that are  uncollectible  on account of the  insolvency,
         bankruptcy or lack of creditworthiness of the related Obligor; or

(iii)    taxes imposed by the  jurisdiction  in which such  Indemnified  Party's
         principal  executive  office is located,  on or measured by the overall
         net income of such Indemnified Party to the extent that the computation
         of such taxes is consistent with the Intended Characterization;

provided,  however,  that  nothing  contained in this  sentence  shall limit the
liability of Originator or limit the recourse of Buyer to Originator for amounts
otherwise specifically provided to be paid by Originator under the terms of this
Agreement.

                  Without    limiting   the    generality   of   the   foregoing
indemnification,  Originator  shall  indemnify  Buyer  for  Indemnified  Amounts
(including,  without limitation, losses in respect of uncollectible receivables,
regardless  of whether  reimbursement  therefor  would  constitute  recourse  to
Originator) relating to or resulting from:

(1)      any  representation  or warranty made by Originator (or any officers of
         Originator)  under or in  connection  with  this  Agreement,  any other
         Transaction  Document or any other  information or report  delivered by
         Originator  pursuant hereto or thereto,  which shall have been false or
         incorrect when made or deemed made;

(2)      the failure by Originator,  to comply with any applicable  law, rule or
         regulation with respect to any Receivable or Contract  related thereto,
         or the  nonconformity  of any Receivable or Contract  included  therein
         with any such  applicable  law,  rule or  regulation  or any failure of
         Originator  to keep  or  perform  any of its  obligations,  express  or
         implied, with respect to any Contract;

(3)      any failure of Originator to perform its duties, covenants or other
         obligations in accordance with the provisions of this Agreement or any
         other Transaction Document;

(4)      any products liability, personal injury or damage suit or similar claim
         arising out of or in connection with merchandise, insurance or services
         that are the subject of any Contract or any Receivable;

(5)      any  dispute,  claim,  offset  or  defense  (other  than  discharge  in
         bankruptcy  of the  Obligor)  of the  Obligor  to  the  payment  of any
         Receivable  (including,  without  limitation,  a defense  based on such
         Receivable or the related Contract not being a legal, valid and binding
         obligation of such Obligor  enforceable  against it in accordance  with
         its  terms),  or  any  other  claim  resulting  from  the  sale  of the
         merchandise or service  related to such Receivable or the furnishing or
         failure to furnish such merchandise or services;

(6)      the commingling of Collections of Receivables at any time with other
         funds;

(7)      any investigation,  litigation or proceeding related to or arising from
         this  Agreement or any other  Transaction  Document,  the  transactions
         contemplated hereby or thereby,  the use of the proceeds of a Purchase,
         the  ownership  of  the  Receivables,   or  any  other   investigation,
         litigation or  proceeding  relating to Buyer or Originator in which any
         Indemnified   Party  becomes  involved  as  a  result  of  any  of  the
         transactions contemplated hereby;

(8)      any  inability to litigate any claim  against any Obligor in respect of
         any  Receivable as a result of such Obligor being immune from civil and
         commercial law and suit on the grounds of sovereignty or otherwise from
         any legal action, suit or proceeding;

(9)      any Amortization Event described in Section 5.1(d);

(10)     any  failure to vest and  maintain  vested in Buyer,  or to transfer to
         Buyer, legal and equitable title to, and ownership of, the Receivables,
         the Related Security and the Collections, free and clear of any Adverse
         Claim;

(11)     the failure to have filed, or any delay in filing, financing statements
         or  other  similar  instruments  or  documents  under  the  UCC  of any
         applicable  jurisdiction  or other  applicable laws with respect to any
         Receivable,  the Related Security and Collections with respect thereto,
         and the proceeds of any thereof, whether at the time of the Purchase or
         at any subsequent time;

(12)     any action or omission by Originator which reduces or impairs the
         rights of Buyer with respect to any Receivable or the value of any such
         Receivable; and

(13)     any attempt by any Person to void the Purchase hereunder under
         statutory provisions or common law or equitable action.

Section 6.2 Other Costs and  Expenses.  Originator  shall pay to Buyer on demand
all  costs  and  out-of-pocket  expenses  in  connection  with the  preparation,
execution,  delivery and  administration  of this  Agreement,  the  transactions
contemplated  hereby  and  the  other  documents  to  be  delivered   hereunder.
Originator shall pay to Buyer on demand any and all costs and expenses of Buyer,
if any,  including  reasonable  counsel fees and expenses in connection with the
enforcement of this Agreement and the other documents delivered hereunder and in
connection  with  any  restructuring  or  workout  of  this  Agreement  or  such
documents,  or the  administration  of this Agreement  following an Amortization
Event.

ARTICLE VII
                                  MISCELLANEOUS

Section 7.1 Waivers and Amendments. No failure or delay on the part of Buyer (or
its assigns) in exercising any power, right or remedy under this Agreement shall
operate as a waiver  thereof,  nor shall any single or partial  exercise  of any
such power,  right or remedy preclude any other further  exercise thereof or the
exercise of any other power,  right or remedy.  The rights and  remedies  herein
provided shall be cumulative and nonexclusive of any rights or remedies provided
by law. Any waiver of this  Agreement  shall be  effective  only in the specific
instance  and for the  specific  purpose for which  given.  No provision of this
Agreement  may be amended,  supplemented,  modified or waived  except in writing
signed by Originator  and Buyer and, to the extent  required  under the Purchase
Agreement,  the Agent and the Financial  Institutions or the Required  Financial
Institutions.

Section 7.2 Notices.  Except as provided below, all  communications  and notices
provided for hereunder  shall be in writing  (including  bank wire,  telecopy or
electronic facsimile  transmission or similar writing) and shall be given to the
other parties hereto at their respective addresses or telecopy numbers set forth
on the  signature  pages hereof or at such other  address or telecopy  number as
such Person may hereafter specify for the purpose of notice to each of the other
parties hereto.  Each such notice or other  communication shall be effective (i)
if given by telecopy, upon the receipt thereof, (ii) if given by mail, three (3)
Business  Days after the time such  communication  is deposited in the mail with
first class postage prepaid or (iii) if given by any other means,  when received
at the address specified in this Section 7.2.

Section 7.3 Protection of Ownership  Interests of Buyer.  (a) Originator  agrees
that from time to time, at its expense, it will promptly execute and deliver all
instruments  and  documents,  and take all  actions,  that may be  necessary  or
desirable,  or that Buyer (or its assigns) may request,  to perfect,  protect or
more fully evidence the Purchaser Interests, or to enable Buyer (or its assigns)
to exercise and enforce their rights and remedies hereunder.  At any time, Buyer
(or its assigns, but only after an Amortization Event) may, at Originator's sole
cost and expense, direct Originator to notify the Obligors of Receivables of the
ownership  interests  of Buyer  under this  Agreement  and may also  direct that
payments of all amounts due or that become due under any or all  Receivables  be
made directly to Buyer or its designee.

         (b) If Originator  fails to perform any of its  obligations  hereunder,
Buyer (or its  assigns)  may (but shall not be required  to)  perform,  or cause
performance  of,  such  obligation,  and Buyer's  (or such  assigns')  costs and
expenses  incurred in  connection  therewith  shall be payable by  Originator as
provided  in  Section  6.2.  Originator  irrevocably  authorizes  Buyer (and its
assigns) at any time and from time to time in the sole  discretion  of Buyer (or
its assigns),  and appoints Buyer (and its assigns) as its  attorney(s)-in-fact,
to act on behalf of Originator  (i) to execute on behalf of Originator as debtor
and to file  financing  statements  necessary  or  desirable  in Buyer's (or its
assigns') sole discretion to perfect and to maintain the perfection and priority
of the  interest  of  Buyer  in the  Receivables  and  (ii)  to  file a  carbon,
photographic or other reproduction of this Agreement or any financing  statement
with  respect to the  Receivables  as a financing  statement  in such offices as
Buyer (or its assigns) in their sole  discretion  deem necessary or desirable to
perfect and to maintain the perfection and priority of Buyer's  interests in the
Receivables. This appointment is coupled with an interest and is irrevocable.

Section 7.4 Confidentiality.  (a) Originator shall maintain and shall cause each
of its employees and officers to maintain the  confidentiality of this Agreement
and the other confidential proprietary information with respect to the Agent and
Falcon and their respective businesses obtained by it or them in connection with
the  structuring,  negotiating  and execution of the  transactions  contemplated
herein,  except that Originator and its officers and employees may disclose such
information to Originator's  external  accountants and attorneys and as required
by any applicable law or order of any judicial or administrative proceeding.

         (b) Anything herein to the contrary notwithstanding,  Originator hereby
consents to the disclosure of any nonpublic  information  with respect to it (i)
to Buyer, the Agent, the Financial Institutions or Falcon by each other, (ii) by
Buyer,  the Agent or the  Purchasers to any  prospective  or actual  assignee or
participant  of any  of  them  or  (iii)  by the  Agent  to any  rating  agency,
Commercial Paper dealer or provider of a surety, guaranty or credit or liquidity
enhancement to Falcon or any entity organized for the purpose of purchasing,  or
making  loans  secured  by,  financial  assets  for  which  Bank One acts as the
administrative  agent  and  to  any  officers,  directors,   employees,  outside
accountants  and  attorneys  of any of the  foregoing,  provided  that each such
Person is informed of the confidential nature of such information.  In addition,
the  Purchasers  and the  Agent  may  disclose  any such  nonpublic  information
pursuant  to any  law,  rule,  regulation,  direction,  request  or order of any
judicial,  administrative or regulatory authority or proceedings (whether or not
having the force or effect of law), provided that Purchasers and Agent shall, if
practicable,  notify  Originator  in advance  prior to  disclosure  and will use
reasonable  efforts to cooperate  with  Originator  at  Originator's  expense in
obtaining any protective order for such information.

Section 7.5 Bankruptcy Petition.  Originator and Buyer each hereby covenants and
agrees that, prior to the date that is one year and one day after the payment in
full of all outstanding  senior  Indebtedness  of Falcon,  it will not institute
against, or join any other Person in instituting against, Falcon any bankruptcy,
reorganization,  arrangement,  insolvency or  liquidation  proceedings  or other
similar  proceeding  under  the laws of the  United  States  or any state of the
United States.

Section 7.6 CHOICE OF LAW.  THIS  AGREEMENT  SHALL BE GOVERNED AND  CONSTRUED IN
ACCORDANCE  WITH THE  INTERNAL  LAWS  (INCLUDING,  BUT NOT  LIMITED TO, 735 ILCS
SECTION  105/5-1 ET SEQ.,  BUT OTHERWISE  WITHOUT REGARD TO THE CONFLICTS OF LAW
PROVISIONS) OF THE STATE OF ILLINOIS.

Section 7.7 CONSENT TO JURISDICTION.  ORIGINATOR HEREBY  IRREVOCABLY  SUBMITS TO
THE  NON-EXCLUSIVE  JURISDICTION  OF ANY UNITED STATES FEDERAL OR ILLINOIS STATE
COURT SITTING IN CHICAGO, ILLINOIS IN ANY ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO THIS  AGREEMENT OR ANY DOCUMENT  EXECUTED BY ORIGINATOR  PURSUANT TO
THIS  AGREEMENT  AND  ORIGINATOR  HEREBY  IRREVOCABLY  AGREES THAT ALL CLAIMS IN
RESPECT OF SUCH ACTION OR  PROCEEDING  MAY BE HEARD AND  DETERMINED  IN ANY SUCH
COURT AND  IRREVOCABLY  WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER  HAVE AS TO
THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A COURT OR THAT
SUCH COURT IS AN  INCONVENIENT  FORUM.  NOTHING  HEREIN SHALL LIMIT THE RIGHT OF
BUYER (OR ITS ASSIGNS) TO BRING PROCEEDINGS  AGAINST ORIGINATOR IN THE COURTS OF
ANY OTHER JURISDICTION.  ANY JUDICIAL PROCEEDING BY ORIGINATOR AGAINST BUYER (OR
ITS ASSIGNS) OR ANY AFFILIATE  THEREOF  INVOLVING,  DIRECTLY OR INDIRECTLY,  ANY
MATTER IN ANY WAY ARISING OUT OF,  RELATED TO, OR CONNECTED  WITH THIS AGREEMENT
OR ANY  DOCUMENT  EXECUTED BY  ORIGINATOR  PURSUANT TO THIS  AGREEMENT  SHALL BE
BROUGHT ONLY IN A COURT IN CHICAGO, ILLINOIS.

Section 7.8 WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY WAIVES TRIAL BY JURY
IN ANY  JUDICIAL  PROCEEDING  INVOLVING,  DIRECTLY  OR  INDIRECTLY,  ANY  MATTER
(WHETHER  SOUNDING IN TORT,  CONTRACT OR  OTHERWISE)  IN ANY WAY ARISING OUT OF,
RELATED  TO,  OR  CONNECTED  WITH  THIS  AGREEMENT,  ANY  DOCUMENT  EXECUTED  BY
ORIGINATOR PURSUANT TO THIS AGREEMENT OR THE RELATIONSHIP  ESTABLISHED HEREUNDER
OR THEREUNDER.
Section 7.9         Integration; Binding Effect; Survival of Terms.

(a) This Agreement,  the Subordinated Note, the Subscription  Agreement and each
Collection  Account Agreement contain the final and complete  integration of all
prior  expressions  by the  parties  hereto with  respect to the subject  matter
hereof and shall  constitute the entire  agreement among the parties hereto with
respect  to the  subject  matter  hereof  superseding  all prior oral or written
understandings.

(b) This Agreement shall be binding upon and inure to the benefit of the parties
hereto and their  respective  successors  and permitted  assigns  (including any
trustee  in  bankruptcy).   This  Agreement  shall  create  and  constitute  the
continuing  obligations of the parties  hereto in accordance  with its terms and
shall remain in full force and effect until  terminated in  accordance  with its
terms;  provided,  however, that the rights and remedies with respect to (i) any
breach of any representation and warranty made by Originator pursuant to Article
II, (ii) the  indemnification  and payment  provisions  of Article VI, and (iii)
Section  7.5 shall be  continuing  and shall  survive  any  termination  of this
Agreement.

Section 7.10 Counterparts;  Severability; Section References. This Agreement may
be executed in any number of  counterparts  and by different  parties  hereto in
separate  counterparts,  each of which when so executed shall be deemed to be an
original and all of which when taken together shall  constitute one and the same
Agreement.   Any   provisions  of  this   Agreement   which  are  prohibited  or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability  without  invalidating the
remaining provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render  unenforceable such provision in any
other jurisdiction.  Unless otherwise expressly indicated, all references herein
to  "Article,"  "Section,"  "Schedule"  or  "Exhibit"  shall mean  articles  and
sections of, and schedules and exhibits to, this Agreement.

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed and delivered by their duly authorized officers as of the date hereof.

     ANIXTER INC.

     By:______________________________________________________
     Name:
     Title:
     Address: _________________________
     Attn: ____________________
     Facsimile: ________________

                         ANIXTER RECEIVABLES CORPORATION

     By:______________________________________________________
     Name:
     Title:
     Address: _________________________
     Attn: ____________________
     Facsimile: ________________

<PAGE>

                                    Exhibit I

                                   Definitions

     This is Exhibit I to the Agreement (as hereinafter defined). As used in the
Agreement and the Exhibits,  Schedules and Annexes  thereto,  capitalized  terms
have the  meanings  set forth in this  Exhibit I (such  meanings  to be  equally
applicable to the singular and plural forms thereof).  If a capitalized  term is
used in the  Agreement,  or any  Exhibit,  Schedule  or Annex  thereto,  and not
otherwise defined therein or in this Exhibit I, such term shall have the meaning
assigned thereto in Exhibit I to the Purchase Agreement.

     "Agent"  has the  meaning set forth in the  Preliminary  Statements  to the
Agreement.

     "Agreement"  means this Receivables Sale Agreement,  dated as of October 6,
2000,  between  Originator  and Buyer,  as the same may be amended,  restated or
otherwise modified.

     "Amortization  Date"  means  the  earliest  to  occur  of (i) the  Facility
Termination  Date,  (ii) any Business Day so designated by Originator and Buyer,
(iii) the Business Day  immediately  prior to the occurrence of an  Amortization
Event set forth in Section 5.1(d),  (iv) the Business Day specified in a written
notice  from  Buyer  to  Originator   following  the  occurrence  of  any  other
Amortization  Event,  and (v) the date which is thirty  (30) days after  Buyer's
receipt  of written  notice  from  Originator  that it wishes to  terminate  the
facility evidenced by this Agreement.

     "Amortization  Event"  has the  meaning  set  forth in  Section  5.1 of the
Agreement.

     "Applied  Collections"  has the meaning set forth in Section  1.2(d) of the
Agreement.

     "Authorized  Officer"  means,  with respect to  Originator,  its treasurer,
corporate controller or chief financial officer.

     "Bank One" means Bank One, NA, its successors and assigns.

     "Bankruptcy  Code"  means  Title  11 of the  United  States  Code  entitled
"Bankruptcy", as amended, and any successor statute thereto.

     "Base Rate" means a rate per annum equal to the corporate base rate,  prime
rate or base rate of  interest,  as  applicable,  announced by the Bank One from
time to time, changing when and as such rate changes.

     "Business  Day" means any day on which banks are not authorized or required
to close in New York,  New York or Chicago,  Illinois and The  Depository  Trust
Company of New York is open for business.

     "Buyer" has the meaning set forth in the preamble to the Agreement.

     "Calculation  Period"  means each calendar  month or portion  thereof which
elapses during the term of the  Agreement.  The first  Calculation  Period shall
commence on the date of the  Purchase  of  Receivables  hereunder  and the final
Calculation Period shall terminate on the Amortization Date.

     "Change of Control"  means the  acquisition  by any Person,  or two or more
Persons acting in concert,  of beneficial  ownership (within the meaning of Rule
13d-3 of the Securities and Exchange  Commission  under the Securities  Exchange
Act of  1934)  of 20% or more of the  outstanding  shares  of  voting  stock  of
Originator.

     "Credit and  Collection  Policy" means  Originator's  credit and collection
policies and  practices  relating to Contracts and  Receivables  existing on the
date  hereof  and  summarized  in Exhibit  V, as  modified  from time to time in
accordance with the Agreement.

     "Default  Fee" means a per annum rate of  interest  equal to the sum of (i)
the Base Rate, plus (ii) 2% per annum.

     "Dilutions"  means,  at any time,  the  aggregate  amount of  reductions or
cancellations described in Section 1.3(a) of the Agreement.

     "Discount  Factor"  means a percentage  calculated  to provide Buyer with a
reasonable  return on its investment in the Receivables  after taking account of
(i) the time value of money based upon the  anticipated  dates of  collection of
the  Receivables  and the cost to  Buyer  of  financing  its  investment  in the
Receivables  during such period and (ii) the risk of nonpayment by the Obligors.
Originator  and Buyer may agree from time to time to change the Discount  Factor
based on changes in one or more of the items affecting the calculation  thereof,
provided  that any change to the  Discount  Factor  shall take  effect as of the
commencement of a Calculation  Period,  shall apply only prospectively and shall
not affect the  Purchase  Price  payment in respect of Purchase  which  occurred
during any  Calculation  Period  ending prior to the  Calculation  Period during
which Originator and Buyer agree to make such change.

     "Falcon" has the meaning set forth in the  Preliminary  Statements  to this
Agreement.

     "Intended   Characterization"   means,   for  income  tax   purposes,   the
characterization  of the  acquisition by the  Purchasers of Purchaser  Interests
under  the  Purchase  Agreement  as a loan or loans by the  Purchasers  to Buyer
secured by the Receivables, the Related Security and the Collections.

     "Material  Adverse  Effect"  means a  material  adverse  effect  on (i) the
financial  condition or operations of Originator and its Subsidiaries,  (ii) the
ability of  Originator  to perform its  obligations  under the  Agreement or any
other Transaction  Document,  (iii) the legality,  validity or enforceability of
the Agreement or any other Transaction Document, (iv) Originator's, Buyer's, the
Agent's or any  Purchaser's  interest  in the  Receivables  generally  or in any
significant portion of the Receivables, the Related Security or Collections with
respect thereto,  or (v) the  collectibility of the Receivables  generally or of
any material portion of the Receivables.

     "Net Worth" means as of the last  Business Day of each  Calculation  Period
preceding any date of  determination,  the excess,  if any, of (a) the aggregate
Outstanding Balance of the Receivables at such time, over (b) the sum of (i) the
aggregate Capital outstanding at such time, plus (ii) the aggregate  outstanding
principal  balance of the Subordinated  Loans  (including any Subordinated  Loan
proposed to be made on the date of determination).

     "Original  Balance" means, with respect to any Receivable,  the Outstanding
Balance of such Receivable on the date it was purchased by Buyer.

     "Originator" has the meaning set forth in the preamble to the Agreement.

     "Potential  Amortization  Event" means an event which,  with the passage of
time or the giving of notice, or both, would constitute an Amortization Event.

     "Purchase"  means the purchase under the Agreement by Buyer from Originator
of the Receivables,  the Related  Security and the Collections  related thereto,
together with all related rights in connection therewith.

     "Purchase   Agreement"  has  the  meaning  set  forth  in  the  Preliminary
Statements to the Agreement.

     "Purchase  Price"  means,  with  respect to any  Purchase on any date,  the
aggregate  price  to be paid  by  Buyer  to  Originator  for  such  Purchase  in
accordance  with Section 1.2 of the Agreement for the  Receivables,  Collections
and Related  Security being sold to Buyer on such date,  which price shall equal
(i) the product of (x) the Original Balance of such  Receivables,  multiplied by
(y) one minus the Discount Factor then in effect,  minus (ii) any Purchase Price
Credits  to  be  credited  against  the  Purchase  Price  otherwise  payable  in
accordance with Section 1.3 of the Agreement.

     "Purchase  Price  Credit"  has the  meaning set forth in Section 1.3 of the
Agreement.

     "Purchaser" means Falcon or a Financial Institution, as applicable.

     "Receivable"   means  the  indebtedness  and  other   obligations  owed  to
Originator  (without  giving  effect to any  transfer  or  conveyance  under the
Agreement) or Buyer (after giving effect to the transfers  under the  Agreement)
whether   constituting  an  account,   chattel  paper,   instrument  or  general
intangible,  arising in  connection  with the sale of goods or the  rendering of
services by Originator and includes,  without limitation,  the obligation to pay
any Finance  Charges with  respect  thereto.  Indebtedness  and other rights and
obligations  arising from any one transaction,  including,  without  limitation,
indebtedness  and other  rights and  obligations  represented  by an  individual
invoice,  shall constitute a Receivable separate from a Receivable consisting of
the  indebtedness  and  other  rights  and  obligations  arising  from any other
transaction.

     "Related Security" means, with respect to any Receivable:

(i)      all of  Originator's  interest in the Equipment or other  inventory and
         goods (including  returned or repossessed  inventory or goods), if any,
         the  financing  or  lease  of which  by  Originator  gave  rise to such
         Receivable, and all insurance contracts with respect thereto,

(ii)     all other security interests or liens and property subject thereto from
         time to time, if any,  purporting to secure payment of such Receivable,
         whether  pursuant  to  the  Contract  related  to  such  Receivable  or
         otherwise,   together  with  all  financing   statements  and  security
         agreements describing any collateral securing such Receivable,

(iii)    all  guaranties,  insurance  and other  agreements or  arrangements  of
         whatever  character from time to time supporting or securing payment of
         such  Receivable  whether  pursuant  to the  Contract  related  to such
         Receivable or otherwise,

(iv)     all service contracts and other contracts and agreements associated
         with such Receivable,

(v)      all Records related to such Receivable,

(vi)     all proceeds of any of the foregoing.

     "Required Capital Amount" means, as of any date of determination, an amount
equal to 3.5% of the Outstanding Balance of all Receivables at such time.

                  "Settlement  Date" means the  seventeenth day of each calendar
     month, or if such day is not a Business Day, the next  succeeding  Business
Day.

     "Subordinated  Loan" has the  meaning  set forth in  Section  1.2(a) of the
Agreement.

     "Subordinated  Note" means a promissory note in  substantially  the form of
Exhibit VII hereto as more fully  described in Section 1.2 of the Agreement,  as
the same may be amended, restated,  supplemented or otherwise modified from time
to time.

     "Subscription  Agreement"  means that certain  Stockholder and Subscription
Agreement,   dated  as  of  October  6,  2000,  between  Originator  and  Buyer,
substantially in the form of Exhibit VI hereto.

     "Subsidiary"  of a Person  means (i) any  corporation  more than 50% of the
outstanding  securities  having ordinary voting power of which shall at the time
be owned or controlled, directly or indirectly, by such Person or by one or more
of its  Subsidiaries or by such Person and one or more of its  Subsidiaries,  or
(ii) any partnership,  association,  limited liability company, joint venture or
similar business  organization  more than 50% of the ownership  interests having
ordinary voting power of which shall at the time be so owned or controlled.

     "Transaction   Documents"  means,   collectively,   this  Agreement,   each
Collection Account Agreement,  the Subordinated Note, the Subscription Agreement
and all other  instruments,  documents and agreements  executed and delivered in
connection herewith.

     "UCC" means the Uniform  Commercial  Code as from time to time in effect in
the State of Illinois.

     All accounting terms not specifically  defined herein shall be construed in
accordance  with generally  accepted  accounting  principles.  All terms used in
Article  9 of the UCC in the State of  Illinois,  and not  specifically  defined
herein, are used herein as defined in such Article 9.

<PAGE>

                                   Exhibit II

                    Places of Business; Locations of Records;
             Federal Employer Identification Number(s); Other Names

                              Places of Business:

                             Locations of Records:

                    Federal Employer Identification Number:

                Corporate, Partnership Trade and Assumed Names:

<PAGE>

                                   Exhibit III

                Lock-boxes; Collection Accounts; Collection Banks

<PAGE>

                                   Exhibit IV

                         Form of Compliance Certificate

     This  Compliance   Certificate  is  furnished   pursuant  to  that  certain
Receivables  Sale Agreement  dated as of October 6, 2000,  between  ANIXTER INC.
("Originator") and ANIXTER RECEIVABLES CORPORATION  ("Buyer")(the  "Agreement").
Capitalized  terms  used and not  otherwise  defined  herein  are used  with the
meanings attributed thereto in the Agreement.

                     THE UNDERSIGNED HEREBY CERTIFIES THAT:

             1. I am the duly elected ______________ of Originator.

2. I have reviewed the terms of the Agreement and I have made, or have caused to
be made  under  my  supervision,  a  detailed  review  of the  transactions  and
conditions of  Originator  and its  Subsidiaries  during the  accounting  period
covered by the attached financial statements.

3. The  examinations  described in paragraph 2 did not  disclose,  and I have no
knowledge  of, the  existence  of any  condition or event which  constitutes  an
Amortization  Event or a  Potential  Amortization  Event,  as each  such term is
defined  under  the  Agreement,  during or at the end of the  accounting  period
covered  by  the  attached  financial  statements  or as of  the  date  of  this
Certificate, except as set forth below.

4. Described  below are the  exceptions,  if any, to paragraph 3 by listing,  in
detail,  the nature of the  condition or event,  the period  during which it has
existed and the action which  Originator  has taken,  is taking,  or proposes to
take with respect to each such condition or event:

                  The foregoing  certifications,  together with the computations
set forth in Schedule I hereto and the financial  statements delivered with this
Certificate in support hereof, are made and delivered this _____ day of _______,
20__.

     ANIXTER INC.

By: __________________________
Name:
Title:

<PAGE>

                                    Exhibit V

                          Credit and Collection Policy

                                 (See attached)

<PAGE>

                                   Exhibit VI

                   Form of Stockholder Subscription Agreement

                     STOCKHOLDER AND SUBSCRIPTION AGREEMENT

     THIS STOCKHOLDER AND SUBSCRIPTION AGREEMENT (this "Agreement"), dated as of
October 6, 2000, is entered into by and between ANIXTER RECEIVABLES  CORPORATION
a Delaware  corporation  ("SPV"),  and  ANIXTER  INC.,  a  Delaware  corporation
("Parent").  Except as otherwise specifically provided herein, capitalized terms
used in this Agreement  have the meanings  ascribed  thereto in the  Receivables
Sale  Agreement,  dated as of even date  herewith,  between  SPV and  Parent (as
amended,  restated,  supplemented  or otherwise  modified from time to time, the
"Sale Agreement").

                                    RECITALS

A. SPV has  been  organized  under  the laws of the  State of  Delaware  for the
purpose of, among other things, purchasing,  holding,  financing,  receiving and
transferring accounts receivable and related assets originated or otherwise held
by Parent.

B.  Contemporaneously  with the  execution and delivery of this  Agreement:  (i)
Parent and SPV have  entered  into the Sale  Agreement  pursuant to which Parent
has,  from and after  the  initial  purchase  date  thereunder  and prior to the
termination date specified therein, sold all of its Receivables, Collections and
Related Security to SPV; and (ii) SPV, Parent,  as Servicer,  certain  financial
institutions  party thereto as  "Purchasers,"  and Bank One, NA, as the "Agent,"
have entered  into a  Receivables  Purchase  Agreement  (as  amended,  restated,
supplemented or otherwise modified from time to time, the "Purchase  Agreement")
pursuant  to which  SPV will  sell  "Purchaser  Interests"  to the Agent for the
benefit of the Purchasers.

C. SPV desires to sell shares of its  capital  stock to Parent, and Parent
desires to purchase such shares, on the terms set forth in this Agreement.

NOW, THEREFORE, SPV and Parent agree as follows:

     Section 1. Purchase and Sale of Capital Stock. Parent hereby purchases from
SPV, and SPV hereby sells to Parent,  1,000  shares of common  stock,  par value
$0.01 per share,  of SPV (the "Common  Stock") for the Stock  Purchase Price set
forth in Section  2(a).  The shares of Common Stock being  purchased  under this
Agreement are referred to herein as the "Shares." Within three (3) Business Days
from the date hereof,  SPV shall deliver to Parent a  certificate  registered in
Parent's name representing the Shares.

     Section 2. Consideration for Shares and Capital Contributions.

(a) Consideration for Shares. To induce SPV to enter into the Sale Agreement and
to  enable  SPV  to  fund  its  obligations   thereunder  by  consummating   the
transactions  contemplated by the Purchase  Agreement,  and in reliance upon the
representations  and warranties  set forth herein,  Parent hereby pays to SPV on
the  date  hereof  the  sum of  $14,600,000  (the  "Stock  Purchase  Price")  in
consideration of the purchase of the Shares. The Stock Purchase Price shall take
the form of a transfer of cash,  except that Parent may, in lieu of cash payment
of the Stock  Purchase  Price,  offset  the amount of the Stock  Purchase  Price
against the purchase  price  otherwise  payable by SPV to Parent on the purchase
date pursuant to the Sale Agreement.

(b) Contributions  After Initial Closing Date. From time to time Parent may make
additional capital  contributions to SPV. All such contributions  shall take the
form of a cash  transfer,  except  that  SPV  agrees,  in  lieu of cash  payment
thereof,  to offset the amount of such contributions  against the purchase price
for Receivables  otherwise  payable by SPV to Parent on the date of such capital
contributions.  All of the  Receivables  so paid for through  such offset  shall
constitute  purchased  Receivables  within the meaning of the Sale Agreement and
shall be  subject  to all of the  representations,  warranties  and  indemnities
otherwise made thereunder. It is expressly understood and agreed that Parent has
no   obligations   under  this  Agreement  or  otherwise  to  make  any  capital
contributions from and after payment of the Stock Purchase Price.

     Section 3.  Representations  and  Warranties  of SPV.  SPV  represents  and
warrants to Parent as follows:

(a) SPV is a corporation duly incorporated validly existing and in good standing
under the laws of the State of Delaware,  and has all requisite  corporate power
and  authority  to carry on its business as proposed to be conducted on the date
hereof.

(b) SPV has all requisite  legal and corporate  power  otherwise,  to enter into
this Agreement,  to issue the Shares and to perform its other  obligations under
this Agreement.

(c) Upon  receipt by SPV of the Stock  Purchase  Price and the  issuance  of the
Shares to Parent, the Shares will be duly authorized, validly issued, fully paid
and nonassessable.

(d) SPV  has  taken  all  corporate  action  necessary  for  its  authorization,
execution and delivery of, and, its performance under, this Agreement.

(e) This  Agreement  constitutes a legally valid and binding  obligation of SPV,
enforceable against SPV in accordance with its terms, except that enforceability
may be limited by bankruptcy,  insolvency,  reorganization or other similar laws
affecting  the  enforcement  of  creditors'  rights  generally  and  by  general
principles of equity, regardless of whether such enforceability is considered in
a proceeding in equity or at law.

(f) SPV has filed its Certificate of  Incorporation  in the form attached hereto
as Annex A with the  Secretary of State of Delaware and (ii) adopted  By-laws in
the form attached hereto as Annex B.

     (g) The issuance of the Shares by SPV hereunder is legally permitted by all
laws and regulations to which SPV is subject.

     Section 4. Representations and Warranties of Parent.  Parent represents and
warrants to SPV as follows:

(a) Parent is a  corporation  duly  incorporated,  validly  existing and in good
standing  under  the  laws of the  State  of  Delaware,  and  has all  requisite
corporate  power and authority to carry on its business as conducted on the date
hereof.

(b) Parent has all requisite legal and corporate power otherwise,  to enter into
this  Agreement,  to purchase  the Shares and to perform  its other  obligations
under this Agreement.

(c) Parent has taken all corporate action necessary for its  authorization,
execution and delivery of, and
its performance under, this Agreement.

(d) This Agreement constitutes a legally valid and binding obligation of Parent,
enforceable   against  Parent  in  accordance   with  its  terms,   except  that
enforceability may be limited by bankruptcy, insolvency, reorganization or other
similar laws  affecting the  enforcement of creditors'  rights  generally and by
general  principles  of equity,  regardless  of whether such  enforceability  is
considered in a proceeding in equity or at law.

(e) Parent is purchasing the Shares for investment for its own account, not
as a  nominee  or  agent,  and not with a view to any  distribution  of any part
thereof.  Parent has no current  intention of selling,  granting a participation
in, or otherwise distributing, the shares.

(e)  Parent  understands  that the  Shares  have not been  registered  under the
Securities Act of 1933, as amended, or under any other Federal or state law, and
that SPV does not contemplate such a registration.

(f) Parent has such  knowledge,  sophistication  and experience in financial and
business  matters that it is capable of  evaluating  the merits and risks of the
transactions contemplated by this Agreement, and has made such investigations in
connection  herewith as have been deemed  necessary  or  desirable  to make such
evaluation.

(g) The  purchase of the Shares by Parent is legally  permitted by all laws and
regulations to which Parent is subject.

     Section 5. Restrictions on Transfer Imposed by the Act; Legend.

(a) Legend. Each certificate representing any Shares shall be endorsed with
the following legend:

     THE SECURITIES  REPRESENTED BY THIS CERTIFICATE ARE NOT REGISTERED PURSUANT
TO THE SECURITIES  ACT OF 1933, AS AMENDED,  OR ANY STATE  SECURITIES  ACT. SUCH
SECURITIES  SHALL  NOT BE SOLD,  PLEDGED,  HYPOTHECATED,  DONATED  OR  OTHERWISE
TRANSFERRED OR DISPOSED OF ABSENT SUCH  REGISTRATION,  UNLESS, IN THE OPINION OF
THE CORPORATION'S COUNSEL, SUCH REGISTRATION IS NOT REQUIRED. IN ADDITION, THESE
SECURITIES  HAVE  BEEN  ISSUED  OR  SOLD  IN  RELIANCE  ON  SECTION  4(2) OF THE
SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD OR TRANSFERRED EXCEPT IN
A  TRANSACTION  WHICH IS  EXEMPT  UNDER  SUCH ACT OR  PURSUANT  TO AN  EFFECTIVE
REGISTRATION UNDER SUCH ACT.

(b)  Registration  of Transfers.  SPV need not register a transfer of any Shares
unless the  conditions  specified in the legend set forth in Section 5(a) hereof
are  satisfied.  SPV may also instruct its transfer agent (which may be SPV) not
to register the transfer of any Shares  unless the  conditions  specified in the
legend set forth in Section 5(a) hereof are satisfied.

     Section 6.  Agreement to Vote.  Parent  hereby agrees and covenants to vote
all of the  shares  of  Common  Stock  now or  hereafter  owned  by it,  whether
beneficially or otherwise,  as is necessary at a meeting of stockholders of SPV,
or by written  consent in lieu of any such  meeting,  to cause to be elected to,
and  maintained on, SPV's board of directors at least one (1) person meeting the
qualifications  of an Independent  Director and selected in accordance  with the
provisions of the Certificate of Incorporation and By-Laws of SPV.

     Section 7.  Successors  and  Assigns.  Each party  agrees  that it will not
assign, sell, transfer,  delegate,  or otherwise dispose of, whether voluntarily
or  involuntarily,  or by operation of law, any right or  obligation  under this
Agreement  except in connection with a transfer of Shares in compliance with the
terms and conditions hereof, as contemplated by Section 5(b) above, or otherwise
in accordance  with the terms  hereof.  Any  purported  assignment,  transfer or
delegation  in  violation  of this  Section 7 shall be null and void ab  initio.
Subject to the  foregoing  limits on  assignment  and  delegation  and except as
otherwise provided herein, this Agreement shall be binding upon and inure to the
benefit of the parties hereto,  their  respective  heirs,  legatees,  executors,
administrators, assignees and legal successors.

     Section 8.  Amendments and Waivers.  Any term hereof may be amended and the
observance of any term hereof may be waived (either generally or in a particular
instance  and  either  retroactively  or  prospectively)  only with the  written
consent of SPV and Parent.  Any amendment or waiver so effected shall be binding
upon SPV and Parent.

     Section 9. Further Acts.  Each party agrees to perform any further acts and
execute and deliver any document which may be reasonably  necessary to carry out
the provisions of this Agreement.

     Section 10.  Counterparts.  This Agreement may be executed in any number of
counterparts,  and  all  of  such  counterparts  together  will  be  deemed  one
instrument.

     Section 11. Notices. Any and all notices, acceptances, statements and other
communications to Parent in connection  herewith shall be in writing,  delivered
personally,  by facsimile or certified mail, return receipt requested, and shall
be addressed to the address of Parent  indicated on the stock transfer  register
of SPV or,  if no  address  is so  indicated,  to the  address  provided  to SPV
pursuant to the Sale  Agreement  unless  changed by written notice to SPV or its
successor.

     Section 12.  GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE
WITH AND BE  GOVERNED  BY THE LAWS OF THE STATE OF  ILLINOIS,  EXCEPT AND TO THE
EXTENT THE GENERAL CORPORATION LAW OF THE STATE OF DELAWARE IS APPLICABLE.

     Section  13.  Entire  Agreement.  This  Agreement,  together  with the Sale
Agreement and the documents  expressly to be delivered in connection  therewith,
constitute  the entire  understanding  and agreement  between the parties hereto
with subject matter hereof and thereof.

     Section 14.  Severability of this Agreement.  In case any provision of this
Agreement  shall  be  invalid  or  unenforceable,  the  validity,  legality  and
enforceability  of the  remaining  shall not in any way be  affected or impaired
thereby.

<PAGE>

     IN WITNESS WHEREOF,  the parties have executed and delivered this Agreement
as of the date first above written.

                         ANIXTER RECEIVABLES CORPORATION

     By:______________________________________________________
     Name:
     Title:

                                  ANIXTER INC.

     By:______________________________________________________
     Name:
     Title:

<PAGE>

                                     ANNEX A

                            to Subscription Agreement

                          Certificate of Incorporation

                                 (see attached)

<PAGE>

                                     ANNEX B

                            to Subscription Agreement

                                     By-Laws

                                 (see attached)

<PAGE>

                                       -i-
                                   Exhibit VII

                            Form of Subordinated Note

                                SUBORDINATED NOTE

                                 October 6, 2000

1. Note. FOR VALUE RECEIVED, the undersigned, ANIXTER RECEIVABLES CORPORATION, a
Delaware  corporation  ("SPV"),  hereby  unconditionally  promises to pay to the
order of ANIXTER INC., a Delaware corporation ("Originator"), in lawful money of
the United States of America and in  immediately  available  funds,  on the date
following the Amortization  Date which is one year and one day after the date on
which  (i) the  Outstanding  Balance  of all  Receivables  sold  under the "Sale
Agreement"  referred to below has been reduced to zero and (ii)  Originator  has
paid to the Buyer all  indemnities,  adjustments  and other amounts which may be
owed thereunder in connection with the Purchases (the  "Collection  Date"),  the
aggregate unpaid principal sum outstanding of all "Subordinated Loans" made from
time to time by Originator  to SPV pursuant to and in accordance  with the terms
of that certain  Receivables  Sale Agreement dated as of October 6, 2000 between
Originator and SPV (as amended,  restated,  supplemented  or otherwise  modified
from time to time, the "Sale  Agreement").  Reference to Section 1.2 of the Sale
Agreement is hereby made for a statement of the terms and conditions under which
the  loans  evidenced  hereby  have been and will be made.  All terms  which are
capitalized  and used herein and which are not  otherwise  specifically  defined
herein shall have the meanings ascribed to such terms in the Sale Agreement.

2.  Interest.  SPV further  promises to pay interest on the  outstanding  unpaid
principal  amount  hereof from the date hereof until payment in full hereof at a
rate equal to the Base Rate less 1.50% per annum; provided, however, that if SPV
shall  default in the payment of any principal  hereof,  SPV promises to pay, on
demand,  interest  at the rate of the Base Rate plus 0.50% per annum on any such
unpaid amounts, from the date such payment is due to the date of actual payment.
Interest  shall be payable on the first  Business  Day of each month in arrears;
provided,  however,  that SPV may elect on the date any interest  payment is due
hereunder  to defer such  payment and upon such  election the amount of interest
due but unpaid on such date shall constitute  principal under this  Subordinated
Note. The outstanding  principal of any loan made under this  Subordinated  Note
shall be due and payable on the Collection  Date and may be repaid or prepaid at
any time without premium or penalty.

3. Principal Payments.  Originator is authorized and directed by SPV to enter on
the grid attached hereto, or, at its option, in its books and records,  the date
and amount of each loan made by it which is evidenced by this  Subordinated Note
and the amount of each  payment of principal  made by SPV,  and absent  manifest
error, such entries shall constitute prima facie evidence of the accuracy of the
information so entered;  provided that neither the failure of Originator to make
any  such  entry  or any  error  therein  shall  expand,  limit  or  affect  the
obligations of SPV hereunder.

4.  Subordination.  The  indebtedness  evidenced  by this  Subordinated  Note is
subordinated  to the prior payment in full of all of SPV's recourse  obligations
under that certain Receivables Purchase Agreement dated as of October 6, 2000 by
and among SPV, Originator,  as Servicer,  various "Purchasers" from time to time
party  thereto,  and  Bank  One,  NA,  as the  "Agent"  (as  amended,  restated,
supplemented or otherwise modified from time to time, the "Purchase Agreement").
The subordination provisions contained herein are for the direct benefit of, and
may be enforced by, the Agent and the Purchasers  and/or any of their respective
assignees  (collectively,  the "Senior Claimants") under the Purchase Agreement.
Until the date on which all "Capital"  outstanding under the Purchase  Agreement
has been  repaid in full and all other  obligations  of SPV and/or the  Servicer
thereunder and under the "Fee Letter"  referenced therein (all such obligations,
collectively,  the "Senior Claim") have been  indefeasibly paid and satisfied in
full, Originator shall not demand,  accelerate, sue for, take, receive or accept
from SPV, directly or indirectly, in cash or other property or by set-off or any
other manner (including,  without limitation,  from or by way of collateral) any
payment or security of all or any of the  indebtedness  under this  Subordinated
Note or exercise  any remedies or take any action or  proceeding  to enforce the
same;  provided,  however,  that (i)  Originator  hereby agrees that it will not
institute  against SPV any proceeding of the type described in Section 5.1(d) of
the Sale Agreement  unless and until the  Collection  Date has occurred and (ii)
nothing in this  paragraph  shall restrict SPV from paying,  or Originator  from
requesting,  any  payments  under this  Subordinated  Note so long as SPV is not
required  under the  Purchase  Agreement  to set aside  for the  benefit  of, or
otherwise  pay over to,  the funds used for such  payments  to any of the Senior
Claimants  and  further  provided  that the  making  of such  payment  would not
otherwise violate the terms and provisions of the Purchase Agreement. Should any
payment,  distribution or security or proceeds thereof be received by Originator
in violation of the immediately preceding sentence,  Originator agrees that such
payment shall be segregated,  received and held in trust for the benefit of, and
deemed to be the property of, and shall be  immediately  paid over and delivered
to the Agent for the benefit of the Senior Claimants.

5.  Bankruptcy;  Insolvency.  Upon the  occurrence of any proceeding of the type
described in Section 5.1(d) of the Sale Agreement  involving SPV as debtor, then
and in any such event the Senior  Claimants shall receive payment in full of all
amounts  due or to become due on or in respect of Capital  and the Senior  Claim
(including  "CP Costs" and "Yield" as defined and as accruing under the Purchase
Agreement after the commencement of any such  proceeding,  whether or not any or
all of such CP  Costs or Yield  is an  allowable  claim in any such  proceeding)
before Originator is entitled to receive payment on account of this Subordinated
Note, and to that end, any payment or  distribution of assets of SPV of any kind
or character,  whether in cash,  securities or other property, in any applicable
insolvency  proceeding,  which would otherwise be payable to or deliverable upon
or with respect to any or all  indebtedness  under this  Subordinated  Note,  is
hereby  assigned  to and shall be paid or  delivered  by the Person  making such
payment or delivery (whether a trustee in bankruptcy,  a receiver,  custodian or
liquidating  trustee or otherwise)  directly to the Agent for application to, or
as collateral for the payment of, the Senior Claim until such Senior Claim shall
have been paid in full and satisfied.

6.  Amendments.  This  Subordinated  Note shall not be amended or  modified
except in accordance with Section 7.1 of the Sale  Agreement.  The terms of this
Subordinated  Note may not be amended or  otherwise  modified  without the prior
written consent of the Agent for the benefit of the Purchasers.

7. GOVERNING LAW. THIS SUBORDINATED NOTE HAS BEEN MADE AND DELIVERED AT CHICAGO,
ILLINOIS, AND SHALL BE INTERPRETED AND THE RIGHTS AND LIABILITIES OF THE PARTIES
HERETO  DETERMINED  IN  ACCORDANCE  WITH THE LAWS AND  DECISIONS OF THE STATE OF
ILLINOIS.  WHEREVER  POSSIBLE EACH PROVISION OF THIS  SUBORDINATED NOTE SHALL BE
INTERPRETED  IN SUCH MANNER AS TO BE EFFECTIVE AND VALID UNDER  APPLICABLE  LAW,
BUT IF ANY PROVISION OF THIS SUBORDINATED NOTE SHALL BE PROHIBITED BY OR INVALID
UNDER  APPLICABLE LAW, SUCH PROVISION SHALL BE INEFFECTIVE TO THE EXTENT OF SUCH
PROHIBITION OR INVALIDITY,  WITHOUT INVALIDATING THE REMAINDER OF SUCH PROVISION
OR THE REMAINING PROVISIONS OF THIS SUBORDINATED NOTE.

8. Waivers.  All parties  hereto,  whether as makers,  endorsers,  or otherwise,
severally waive presentment for payment, demand, protest and notice of dishonor.
Originator  additionally  expressly  waives all notice of the  acceptance by any
Senior Claimant of the  subordination  and other provisions of this Subordinated
Note and expressly waives reliance by any Senior Claimant upon the subordination
and other provisions herein provided.

9.  Assignment.  This  Subordinated  Note may not be  assigned,  pledged or
otherwise  transferred  to any party  other than  Originator  without  the prior
written consent of the Agent, and any such attempted transfer shall be void.

     ANIXTER RECEIVABLES CORPORATION

     By: ____________________________________________
     Name:
     Title:

<PAGE>

                                    Schedule
                                       to
                                SUBORDINATED NOTE

                  SUBORDINATED LOANS AND PAYMENTS OF PRINCIPAL

         Amount of         Amount of         Unpaid Principal
         Subordinated      Principal         Notation made
Date     Loan              Paid              Balance by
-----    --------------    --------------    ---------------

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

<PAGE>

                                   Schedule A

                       DOCUMENTS TO BE DELIVERED TO BUYER
                           ON OR PRIOR TO THE PURCHASE

                                 (See Attached.)

<PAGE>

                                TABLE OF CONTENTS

                                      Page

ARTICLE I  AMOUNTS AND TERMS...................................................2
     Section 1.1  Purchase of Receivables......................................2
     Section 1.2  Payment for the Purchase  ...................................3
     Section 1.3  Purchase Price Credit Adjustments............................6
     Section 1.4  Payments and Computations, Etc...............................6
     Section 1.5  Transfer of Records..........................................6
     Section 1.6  Characterization.............................................7
ARTICLE II  REPRESENTATIONS AND WARRANTIES.....................................7
     Section 2.1  Representations and Warranties of Originator.................7
ARTICLE III  CONDITIONS OF PURCHASE...........................................11
     Section 3.1  Conditions Precedent to Purchase............................11
     Section 3.2  Conditions Precedent to Subsequent Payments.................11
ARTICLE IV  COVENANTS.........................................................11
     Section 4.1  Affirmative Covenants of Originator.........................11
     Section 4.2  Negative Covenants of Originator............................16
ARTICLE V  AMORTIZATION EVENTS................................................17
     Section 5.1  Amortization Events.........................................17
     Section 5.2  Remedies 18
ARTICLE VI  INDEMNIFICATION...................................................19
     Section 6.1  Indemnities by Originator...................................19
     Section 6.2  Other Costs and Expenses....................................21
ARTICLE VII  MISCELLANEOUS....................................................21
     Section 7.1  Waivers and Amendments......................................21
     Section 7.2  Notices  22
     Section 7.3  Protection of Ownership Interests of Buyer..................22
     Section 7.4  Confidentiality.............................................22
     Section 7.5  Bankruptcy Petition.........................................23
     Section 7.6  CHOICE OF LAW...............................................23
     Section 7.7  CONSENT TO JURISDICTION.....................................23
     Section 7.8  WAIVER OF JURY TRIAL........................................24
     Section 7.9  Integration; Binding Effect; Survival of Terms..............24
     Section 7.10  Counterparts; Severability; Section References.............24

<PAGE>

Exhibits and Schedules

EXHIBIT I               Definitions
EXHIBIT II              Principal Place of Business; Location(s) of Records;
                        Federal Employer Identification Number; Other Names
EXHIBIT III             Lock-Boxes; Collection Accounts; Collection Banks
EXHIBIT IV              Form of Compliance Certificate
EXHIBIT V               Credit and Collection Policy
EXHIBIT VI              Form of Subscription Agreement
EXHIBIT VII             Form of Subordinated Note

SCHEDULE A              List of Documents to Be Delivered to Buyer Prior to the
                        Purchase

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