Document:

SWDocID

<TABLE>
<CAPTION>

<S>                                                                                                   <C>
ARTICLE I
         PURCHASE ARRANGEMENTS........................................................................1

     Section 1.1         Purchase Facility............................................................1
     Section 1.2         Increases....................................................................2
     Section 1.3         Decreases....................................................................3
     Section 1.4         Payment Requirements.........................................................3

ARTICLE II
         PAYMENTS AND COLLECTIONS.....................................................................3

     Section 2.1         Payments.....................................................................3
     Section 2.2         Collections Prior to Amortization............................................4
     Section 2.3         Collections Following Amortization...........................................5
     Section 2.4         Application of Collections...................................................5
     Section 2.5         Payment Recission............................................................5
     Section 2.6         Maximum Purchaser Interests..................................................6
     Section 2.7         Clean Up Call................................................................6

ARTICLE III
         COMPANY FUNDING..............................................................................6

     Section 3.1         CP Costs.....................................................................6
     Section 3.2         CP Costs Payments............................................................6
     Section 3.3         Calculation of CP Costs......................................................6

ARTICLE IV
         FINANCIAL INSTITUTION FUNDING................................................................7

     Section 4.1         Financial Institution Funding................................................7
     Section 4.2         Yield Payments...............................................................7
     Section 4.3         Selection and Continuation of Tranche Periods................................7
     Section 4.4         Financial Institution Discount Rates.........................................7
     Section 4.5         Suspension of the LIBO Rate..................................................8

ARTICLE V
         REPRESENTATIONS AND WARRANTIES...............................................................8

     Section 5.1         Representations and Warranties of The Seller Parties.........................8
     Section 5.2         Financial Institution Representations and Warranties........................12

ARTICLE VI
         CONDITIONS OF PURCHASES.....................................................................13

     Section 6.1         Conditions Precedent to Initial Incremental Purchase........................13
     Section 6.2         Conditions Precedent to All Purchases and Reinvestments.....................13

ARTICLE VII
         COVENANTS...................................................................................14

     Section 7.1         Affirmative Covenants of The Seller Parties.................................14
     Section 7.2         Negative Covenants of The Seller Parties....................................21

ARTICLE VIII
         ADMINISTRATION AND COLLECTION...............................................................22

     Section 8.1         Designation of Servicer.....................................................22
     Section 8.2         Duties of Servicer..........................................................23
     Section 8.3         Collection Notices..........................................................24
     Section 8.4         Responsibilities of Seller..................................................24
     Section 8.5         Reports.....................................................................25
     Section 8.6         Servicing Fees..............................................................25

ARTICLE IX
         AMORTIZATION EVENTS.........................................................................25

     Section 9.1         Amortization Events.........................................................25
     Section 9.2         Remedies....................................................................26

ARTICLE X
         INDEMNIFICATION.............................................................................27

     Section 10.1        Indemnities by The Seller Parties...........................................27
     Section 10.2        Increased Cost and Reduced Return...........................................29
     Section 10.3        Other Costs and Expenses....................................................30

ARTICLE XI
         THE AGENT...................................................................................30

     Section 11.1        Authorization and Action....................................................30
     Section 11.2        Delegation of Duties........................................................31
     Section 11.3        Exculpatory Provisions......................................................31
     Section 11.4        Reliance by Agent...........................................................31
     Section 11.5        Non-Reliance on Agent and Other Purchasers..................................32
     Section 11.6        Reimbursement and Indemnification...........................................32
     Section 11.7        Agent in its Individual Capacity............................................32
     Section 11.8        Successor Agent.............................................................32

ARTICLE XII
         ASSIGNMENTS; PARTICIPATIONS.................................................................33

     Section 12.1        Assignments.................................................................33
     Section 12.2        Participations..............................................................34

ARTICLE XIII
         LIQUIDITY FACILITY..........................................................................34

     Section 13.1        Transfer to Financial Institutions..........................................34
     Section 13.2        Transfer Price Reduction Yield..............................................34
     Section 13.3        Payments to Company.........................................................35
     Section 13.4        Limitation on Commitment to Purchase from Company...........................35
     Section 13.5        Defaulting Financial Institutions...........................................35
     Section 13.6        Terminating Financial Institutions..........................................36

ARTICLE XIV
         MISCELLANEOUS...............................................................................37

     Section 14.1        Waivers and Amendments......................................................37
     Section 14.2        Notices.....................................................................38
     Section 14.3        Ratable Payments............................................................38
     Section 14.4        Protection of Ownership Interests of the Purchasers.........................38
     Section 14.5        Confidentiality.............................................................39
     Section 14.6        Bankruptcy Petition.........................................................39
     Section 14.7        Limitation of Liability.....................................................40
     Section 14.8        CHOICE OF LAW...............................................................40
     Section 14.9        CONSENT TO JURISDICTION.....................................................40
     Section 14.10       WAIVER OF JURY TRIAL........................................................40
     Section 14.11       Integration; Binding Effect; Survival of Terms..............................41
     Section 14.12       Counterparts; Severability; Section References..............................41
     Section 14.13       Bank One Roles..............................................................41
     Section 14.14       Characterization............................................................41

</TABLE>

Exhibits and Schedules
      Exhibit I           Definitions
      Exhibit II          Form of Purchase Notice
      Exhibit III         Places of Business of the Seller Parties; Locations
                           of Records; Federal Employer Identification Number(s)
      Exhibit IV          Names of Collection Banks; Collection Accounts
      Exhibit V           Form of Compliance Certificate
      Exhibit VI          Form of Collection Account Agreement
      Exhibit VII         Form of Assignment Agreement
      Exhibit VIII        Credit and Collection Policy
      Exhibit IX          Form of Contract(s)
      Exhibit X           Form of Monthly Report

      Schedule A          Commitments
      Schedule B          Closing Documents

<PAGE>

                                     Page 4

                                 EXECUTION COPY

                         RECEIVABLES PURCHASE AGREEMENT

                           dated as of October 6, 2000

                                      Among

                   ANIXTER RECEIVABLES CORPORATION, as Seller,

                           ANIXTER INC., as Servicer,

                    FALCON ASSET SECURITIZATION CORPORATION,

           THE FINANCIAL INSTITUTIONS FROM TIME TO TIME PARTY HERETO,
                            as Financial Institutions

                                       and

                                  BANK ONE, NA,
                                    as Agent

<PAGE>

                                       41

                         ANIXTER RECEIVABLES CORPORATION
                         RECEIVABLES PURCHASE AGREEMENT

         This  Receivables  Purchase  Agreement  dated as of  October 6, 2000 is
among  Anixter  Receivables  Corporation,  a  Delaware  corporation  ("Seller"),
Anixter Inc., a Delaware corporation ("Anixter"),  as initial Servicer (Anixter,
together  with  Seller,  the "Seller  Parties" and each a "Seller  Party"),  the
entities  listed on  Schedule A to this  Agreement  (together  with any of their
respective  successors and assigns  hereunder,  the  "Financial  Institutions"),
Falcon Asset Securitization  Corporation  ("Company") and Bank One, NA, as agent
for the Purchasers hereunder or any successor agent hereunder (together with its
successors and assigns hereunder, the "Agent"). Unless defined elsewhere herein,
capitalized  terms used in this  Agreement  shall have the meanings  assigned to
such terms in Exhibit I.

                             PRELIMINARY STATEMENTS

         Seller  desires to  transfer  and  assign  Purchaser  Interests  to the
Purchasers from time to time.

         Company may, in its absolute and sole  discretion,  purchase  Purchaser
Interests from Seller from time to time.

         In the event that Company declines to make any purchase,  the Financial
Institutions shall, at the request of Seller,  purchase Purchaser Interests from
time to time. In addition,  the Financial  Institutions have agreed to provide a
liquidity facility to Company in accordance with the terms hereof.

         Bank  One,  NA has been  requested  and is  willing  to act as Agent on
behalf of Company and the Financial  Institutions  in accordance  with the terms
hereof.

ARTICLE I
                              PURCHASE ARRANGEMENTS

Section 1.1       Purchase Facility

(a) Upon the terms and  subject to the  conditions  hereof,  Seller  may, at its
option,  sell and assign Purchaser Interests to the Agent for the benefit of one
or more of the Purchasers. In accordance with the terms and conditions set forth
herein, Company may, at its option,  instruct the Agent to purchase on behalf of
Company, or if Company shall decline to purchase,  the Agent shall purchase,  on
behalf of the Financial  Institutions,  Purchaser Interests from time to time in
an  aggregate  amount not to exceed at such time the lesser of (i) the  Purchase
Limit and (ii) the  aggregate  amount of the  Back-up  Commitments,  during  the
period from the date hereof to but not including the Facility  Termination Date;
provided,  that at no  time  shall  a  Purchaser  Interest  be  purchased  for a
Financial  Institution  pursuant to this Section 1.1(a) if the Capital allocated
to the  Financial  Institution  with respect to such  Purchaser  Interest  would
exceed such Financial Institution's Unused Back-up Commitment at such time.

(b) Seller may,  upon at least 30 days' notice to the Agent,  terminate in whole
or reduce in part, ratably among the Financial  Institutions based on the amount
of their Back-up  Commitments,  the Unused  Purchase  Limit;  provided that each
partial  reduction  of  the  Purchase  Limit  shall  be in an  amount  equal  to
$5,000,000 or an integral multiple thereof. Each Financial Institution's Back-up
Commitment  and  Liquidity  Commitment  shall be reduced by its ratable share of
each reduction in the Purchase Limit.

Section 1.2       Increases.

                  Seller  shall  provide  the  Agent  with at  least  three  (3)
Business  Days'  prior  notice in a form set forth as  Exhibit II hereto of each
Incremental  Purchase (a  "Purchase  Notice").  Each  Purchase  Notice  shall be
subject  to  Section  6.2  hereof  and,  except  as set  forth  below,  shall be
irrevocable  and shall specify the requested  Purchase Price (which shall not be
less  than  $1,000,000)  and  date  of  purchase  (which,  in  the  case  of any
Incremental Purchase (after the initial Incremental  Purchase hereunder),  shall
only be on a  Monthly  Settlement  Date)  and,  in the  case  of an  Incremental
Purchase to be funded by the Financial Institutions, the requested Discount Rate
and  Tranche  Period.  Following  receipt of a Purchase  Notice,  the Agent will
determine  whether Company agrees to make the purchase.  If Company  declines to
make a proposed  purchase,  Seller may  cancel  the  Purchase  Notice or, in the
absence  of such a  cancellation,  the  Incremental  Purchase  of the  Purchaser
Interest  will  be  made  by the  Financial  Institutions.  On the  date of each
Incremental  Purchase,  upon satisfaction of the applicable conditions precedent
set forth in Article VI, Company or the Financial  Institutions,  as applicable,
shall deposit to the Facility Account, in immediately  available funds, no later
than 12:00 noon (Chicago  time),  an amount equal to (i) in the case of Company,
the  aggregate  Purchase  Price  of the  Purchaser  Interests  Company  is  then
purchasing  or  (ii) in the  case of a  Financial  Institution,  such  Financial
Institution's  Back-up  Pro Rata Share of the  aggregate  Purchase  Price of the
Purchaser Interests the Financial Institutions are purchasing. In the case of an
Incremental Purchase to be made by the Financial Institutions, if one or more of
the Financial  Institutions  defaults in its  obligation to fund its Back-up Pro
Rata Share of the  aggregate  Purchase  Price of the  Purchaser  Interests to be
purchased  (each  such  Financial  Institution  shall be called a  "Section  1.2
Defaulting  Financial  Institution"  and the aggregate  amount of such defaulted
obligations being herein called the "Purchase Price Deficit"),  then upon notice
from the Agent, each Financial Institution other than the Section 1.2 Defaulting
Financial  Institutions (a "Section 1.2 Non-Defaulting  Financial  Institution")
shall promptly pay to the Agent, in immediately available funds, an amount equal
to the lesser of (x) such  Section 1.2  Non-Defaulting  Financial  Institution's
proportionate  share (based upon the relative Back-up Commitments of the Section
1.2 Non-Defaulting Financial Institutions) of the Purchase Price Deficit and (y)
such  Section  1.2  Non-Defaulting   Financial   Institution's   Unused  Back-up
Commitment.  A Section 1.2 Defaulting Financial Institution shall forthwith upon
demand  pay to the Agent  for the  account  of the  Section  1.2  Non-Defaulting
Financial  Institutions  all amounts  paid by each  Section  1.2  Non-Defaulting
Financial  Institution  on  behalf  of such  Section  1.2  Defaulting  Financial
Institution,  together  with  interest  thereon,  for  each  day from the date a
payment was made by a Section 1.2 Non-Defaulting Financial Institution until the
date such Section 1.2  Non-Defaulting  Financial  Institution has been paid such
amounts in full, at a rate per annum equal to the Federal Funds  Effective  Rate
plus two percent (2%). In addition,  without  prejudice to any other rights that
Seller may have under  applicable  law,  each Section 1.2  Defaulting  Financial
Institution  shall pay to Seller forthwith upon demand,  the difference  between
such Section 1.2 Defaulting  Financial  Institution's  unpaid Purchase Price and
the amount paid with respect thereto by the Section 1.2 Non-Defaulting Financial
Institutions,  together with interest thereon, for each day from the date of the
Agent's request for such Section 1.2 Defaulting Financial  Institution's Back-up
Pro Rata Share of the Purchase Price pursuant to this Section 1.2 until the date
the requisite amount is paid to Seller in full, at a rate per annum equal to the
Federal Funds Effective Rate plus two percent (2%).

Section 1.3  Decreases.  Seller shall  provide the Agent with at least three (3)
Business  Days prior  written  notice (a  "Reduction  Notice")  of any  proposed
reduction of Aggregate  Capital from  Collections.  Such Reduction  Notice shall
designate  (i) the date (the  "Proposed  Reduction  Date")  upon  which any such
reduction of Aggregate Capital shall occur,  which must be a Monthly  Settlement
Date unless  otherwise  consented  to by the Agent (which  consent  shall not be
unreasonably  withheld),  and (ii) the amount of Aggregate Capital to be reduced
which shall be applied  ratably to the  Purchaser  Interests  of Company and the
Financial  Institutions  in accordance with the amount of Capital (if any) owing
to  Company,  on the one hand,  and the amount of Capital  (if any) owing to the
Financial  Institutions  (ratably,  based on the amount of Capital owing to each
Financial Institution),  on the other hand (the "Aggregate Reduction"). Only one
(1) Reduction Notice shall be outstanding at any time.

Section 1.4 Payment  Requirements.  All amounts to be paid or  deposited  by any
Seller  Party  pursuant  to any  provision  of this  Agreement  shall be paid or
deposited in accordance with the terms hereof no later than 11:00 a.m.  (Chicago
time) on the day when due in immediately  available  funds,  and if not received
before  11:00 a.m.  (Chicago  time)  shall be deemed to be  received on the next
succeeding  Business Day. If such amounts are payable to a Purchaser  they shall
be paid to the Agent,  for the account of such  Purchaser,  at 1 Bank One Plaza,
Chicago,  Illinois 60670 until otherwise  notified in writing by the Agent. Upon
notice to Seller,  the Agent may debit the Facility  Account for all amounts due
and payable  hereunder.  All computations of Yield, per annum fees calculated as
part of any CP Costs,  per annum fees hereunder and per annum fees under the Fee
Letter shall be made on the basis of a year of 360 days for the actual number of
days elapsed.  If any amount  hereunder shall be payable on a day which is not a
Business Day, such amount shall be payable on the next succeeding Business Day.

ARTICLE II
                            PAYMENTS AND COLLECTIONS

Section 2.1 Payments.  Notwithstanding  any limitation on recourse  contained in
this  Agreement,  Seller  shall  immediately  pay to the Agent when due, for the
account of the relevant  Purchaser or Purchasers on a full recourse  basis,  (i)
such fees as set forth in the Fee Letter  (which fees shall be sufficient to pay
all fees  owing to the  Financial  Institutions),  (ii) all CP Costs,  (iii) all
amounts payable as Yield, (iv) all amounts payable as Deemed  Collections (which
shall be immediately due and payable by Seller and applied to reduce outstanding
Aggregate Capital hereunder in accordance with Sections 2.2 and 2.3 hereof), (v)
all amounts payable  pursuant to Section 2.6, (vi) all amounts payable  pursuant
to Article X, if any,  (vii) all  Servicer  costs and  expenses,  including  the
Servicing Fee, in connection  with servicing,  administering  and collecting the
Receivables,  (viii)  all  Broken  Funding  Costs  and  (ix)  all  Default  Fees
(collectively,  the  "Obligations").  If any  Person  fails  to  pay  any of the
Obligations  when due, such Person agrees to pay, on demand,  the Default Fee in
respect thereof until paid.  Notwithstanding the foregoing, no provision of this
Agreement or the Fee Letter shall  require the payment or permit the  collection
of any amounts  hereunder in excess of the maximum  permitted by applicable law.
If at any time  Seller  receives  any  Collections  or is deemed to receive  any
Collections, Seller shall immediately pay such Collections or Deemed Collections
to the Servicer for  application  in  accordance  with the terms and  conditions
hereof and,  at all times  prior to such  payment,  such  Collections  or Deemed
Collections  shall be held in trust by Seller for the  exclusive  benefit of the
Purchasers and the Agent.

Section 2.2 Collections Prior to Amortization.  Prior to the Amortization  Date,
any Collections and/or Deemed Collections  received by the Servicer shall be set
aside and held in trust by the  Servicer  for the  payment  of any  accrued  and
unpaid Aggregate  Unpaids or for a Reinvestment as provided in this Section 2.2.
If at any  time  any  Collections  are  received  by the  Servicer  prior to the
Amortization  Date, (i) the Servicer shall set aside the Termination  Percentage
(hereinafter  defined) of  Collections  evidenced by the Purchaser  Interests of
each Terminating  Financial  Institution and (ii) Seller hereby requests and the
Purchasers (other than any Terminating  Financial  Institutions) hereby agree to
make,  simultaneously  with such receipt, a reinvestment (each a "Reinvestment")
with a portion  of the  balance  of each and every  Collection  received  by the
Servicer or Deemed Collection that is part of any Purchaser Interest (other than
any Purchaser Interests of Terminating Financial Institutions),  such that after
giving  effect to such  Reinvestment,  the amount of  Capital of such  Purchaser
Interest immediately after such receipt and corresponding  Reinvestment shall be
equal to the  amount  of  Capital  immediately  prior to such  receipt.  On each
Settlement Date prior to the occurrence of the  Amortization  Date, the Servicer
shall remit to the Agent's  account the amounts set aside  during the  preceding
Settlement  Period that have not been subject to a  Reinvestment  and apply such
amounts (if not previously paid in accordance with Section 2.1) first, to reduce
unpaid Obligations and second, to reduce the Capital of all Purchaser  Interests
of  Terminating  Financial  Institutions,  applied  ratably to each  Terminating
Financial Institution  according to its respective  Termination  Percentage.  If
such Capital,  and other  Obligations  shall be reduced to zero,  any additional
Collections received by the Servicer (i) if applicable, shall be remitted to the
Agent's  account no later than 11:00 a.m.  (Chicago time) to the extent required
to fund any  Aggregate  Reduction on such  Settlement  Date and (ii) any balance
remaining  thereafter  shall be  remitted  from the  Servicer  to Seller on such
Settlement Date. Each  Terminating  Financial  Institution  shall be allocated a
ratable  portion  of  Collections  from the date of any  assignment  by  Company
pursuant  to  Section  13.6 (the  "Termination  Date")  until  such  Terminating
Financing  Institution's  Capital  shall be paid in full.  This ratable  portion
shall  be  calculated  on the  Termination  Date of each  Terminating  Financial
Institution as a percentage equal to (i) Capital of such  Terminating  Financial
Institution  outstanding on its Termination Date,  divided by (ii) the Aggregate
Capital  outstanding on such  Termination Date (the  "Termination  Percentage").
Each Terminating  Financial  Institution's  Termination  Percentage shall remain
constant prior to the  Amortization  Date. On and after the  Amortization  Date,
each Termination Percentage shall be disregarded, and each Terminating Financial
Institution's  Capital shall be reduced ratably with all Financial  Institutions
in accordance with Section 2.3.

Section 2.3 Collections Following Amortization.  On the Amortization Date and on
each day  thereafter,  the Servicer  shall set aside and hold in trust,  for the
holder of each Purchaser Interest,  all Collections  received on such day and an
additional  amount of funds of the Seller for the  payment  of any  accrued  and
unpaid  Obligations  owed  by  Seller  and not  previously  paid  by  Seller  in
accordance  with Section 2.1. On and after the  Amortization  Date, the Servicer
shall,  at any time  upon  the  request  from  time to time by (or  pursuant  to
standing  instructions  from) the Agent (i)  remit to the  Agent's  account  the
amounts  set aside  pursuant  to the  preceding  sentence,  and (ii)  apply such
amounts to reduce the Capital  associated with each such Purchaser  Interest and
any other Aggregate Unpaids.

Section 2.4 Application of Collections.  If there shall be insufficient funds on
deposit  for  the  Servicer  to  distribute  funds  in  payment  in  full of the
aforementioned  amounts  pursuant  to Section  2.2 or 2.3 (as  applicable),  the
Servicer shall distribute funds:

     first, to the payment of the Servicer's reasonable  out-of-pocket costs and
expenses  in  connection  with  servicing,   administering  and  collecting  the
Receivables,  including the Servicing Fee, if Seller or one of its Affiliates is
not then acting as the Servicer,

     second, to the reimbursement of the Agent's  reasonable costs of collection
and enforcement of this Agreement,

     third,  ratably to the payment of all accrued and unpaid fees under the Fee
Letter, CP Costs payable under Article III and Yield payable under Article IV,

     fourth,  (to  the  extent  applicable)  to  the  ratable  reduction  of the
Aggregate Capital (without regard to any Termination Percentage),

     fifth,  for the ratable payment of all other unpaid  Obligations,  provided
that to the extent such Obligations  relate to the payment of Servicer costs and
expenses,  including the Servicing  Fee, when Seller or one of its Affiliates is
acting as the Servicer, such costs and expenses will not be paid until after the
payment in full of all other Obligations, and

     sixth, after the Aggregate Unpaids have been indefeasibly  reduced to zero,
to Seller.

Collections  applied to the payment of Aggregate Unpaids shall be distributed in
accordance with the aforementioned provisions, and, giving effect to each of the
priorities set forth in this Section 2.4 above,  shall be shared ratably (within
each priority)  among the Agent and the Purchasers in accordance with the amount
of such  Aggregate  Unpaids  owing  to each of  them  in  respect  of each  such
priority.

Section 2.5 Payment Recission.  No payment of any of the Aggregate Unpaids shall
be considered paid or applied  hereunder to the extent that, at any time, all or
any portion of such payment or application is rescinded by application of law or
judicial  authority,  or must  otherwise be returned or refunded for any reason.
Seller shall remain  obligated for the amount of any payment or  application  so
rescinded,  returned  or  refunded,  and shall  promptly  pay to the Agent  (for
application  to the Person or Persons who  suffered  such  recission,  return or
refund) the full amount thereof,  plus the Default Fee from the date of any such
recission, return or refunding.

Section 2.6 Maximum Purchaser Interests.  Seller shall ensure that the Purchaser
Interests of the  Purchasers  shall at no time exceed in the aggregate  100%. If
the aggregate of the Purchaser  Interests of the Purchasers exceeds 100%, Seller
shall pay to the Agent  within  three (3)  Business  Days of Seller's  knowledge
thereof,  an amount to be applied to reduce the Aggregate  Capital (as allocated
by the Agent),  such that after giving  effect to such payment the  aggregate of
the Purchaser Interests equals or is less than 100%.

Section 2.7 Clean Up Call.  In addition to Seller's  rights  pursuant to Section
1.3,  Seller shall have the right  (after  providing  three (3)  Business  Days'
written  notice  to the  Agent),  at any time  following  the  reduction  of the
Aggregate  Capital  to a level  that is less than ten  percent  (10.00%)  of the
original  Purchase  Limit,  to repurchase  from the Purchasers all, but not less
than all, of the then  outstanding  Purchaser  Interests.  The purchase price in
respect  thereof shall be an amount equal to the Aggregate  Unpaids  through the
date of such repurchase, payable in immediately available funds. Such repurchase
shall be without  representation,  warranty  or  recourse of any kind by, on the
part of, or against any Purchaser or the Agent.

ARTICLE III
                                 COMPANY FUNDING

Section  3.1 CP Costs.  Seller  shall pay CP Costs with  respect to the  Capital
associated with each Purchaser Interest of Company for each day that any Capital
in respect of such Purchaser  Interest is outstanding.  Each Purchaser  Interest
funded  substantially with Pooled Commercial Paper will accrue CP Costs each day
on a pro rata basis,  based upon the percentage  share the Capital in respect of
such Purchaser Interest represents in relation to all assets held by Company and
funded substantially with Pooled Commercial Paper.

Section 3.2 CP Costs Payments. On each Monthly Settlement Date, Seller shall pay
to the Agent (for the  benefit of  Company)  an  aggregate  amount  equal to all
accrued  and  unpaid CP Costs in  respect  of the  Capital  associated  with all
Purchaser  Interests of Company for the immediately  preceding Accrual Period in
accordance with Article II.

Section  3.3  Calculation  of CP Costs.  No later  than the third  Business  Day
immediately  preceding each Monthly Settlement Date, Company shall calculate the
aggregate amount of CP Costs for the applicable  Accrual Period and shall notify
Seller of such aggregate amount.

ARTICLE IV
                          FINANCIAL INSTITUTION FUNDING

Section  4.1  Financial  Institution  Funding.  Each  Purchaser  Interest of the
Financial Institutions shall accrue Yield for each day during its Tranche Period
at  either  the LIBO  Rate or the Base  Rate in  accordance  with the  terms and
conditions  hereof.  Until Seller gives notice to the Agent of another  Discount
Rate in accordance with Section 4.4, the initial Discount Rate for any Purchaser
Interest  transferred  to the Financial  Institutions  pursuant to the terms and
conditions hereof shall be the Base Rate. If the Financial  Institutions acquire
by assignment from Company any Purchaser Interest pursuant to Article XIII, each
Purchaser Interest so assigned shall each be deemed to have a new Tranche Period
commencing on the date of any such assignment.

Section 4.2 Yield Payments.  On the Settlement Date for each Purchaser  Interest
of the Financial Institutions, Seller shall pay to the Agent (for the benefit of
the Financial  Institutions) an aggregate amount equal to the accrued and unpaid
Yield  for  the  entire  Tranche  Period  of each  such  Purchaser  Interest  in
accordance with Article II.

Section 4.3       Selection and Continuation of Tranche Periods.

(a) With consultation  from (and approval by) the Agent,  Seller shall from time
to time request  Tranche  Periods for the  Purchaser  Interests of the Financial
Institutions,  provided  that, if at any time the Financial  Institutions  shall
have a Purchaser Interest, Seller shall always request Tranche Periods such that
at least one Tranche Period shall end on a Monthly Settlement Date.

(b) Seller or the Agent,  upon  notice to and  consent by the other  received at
least  three  (3)  Business  Days  prior  to the end of a  Tranche  Period  (the
"Terminating  Tranche") for any Purchaser  Interest,  may, effective on the last
day of the  Terminating  Tranche:  (i) divide any such  Purchaser  Interest into
multiple Purchaser Interests,  (ii) combine any such Purchaser Interest with one
or more other Purchaser  Interests that have a Terminating Tranche ending on the
same day as such  Terminating  Tranche  or  (iii)  combine  any  such  Purchaser
Interest  with  a new  Purchaser  Interests  to be  purchased  on the  day  such
Terminating Tranche ends, provided, that in no event may a Purchaser Interest of
Company be combined with a Purchaser Interest of the Financial Institutions.

Section 4.4 Financial  Institution  Discount  Rates.  Seller may select the LIBO
Rate or the Base Rate for each Purchaser Interest of the Financial Institutions.
Seller shall by 11:00 a.m.  (Chicago time): (i) at least three (3) Business Days
prior to the  expiration  of any  Terminating  Tranche with respect to which the
LIBO Rate is being  requested as a new  Discount  Rate and (ii) at least one (1)
Business Day prior to the expiration of any Terminating  Tranche with respect to
which the Base Rate is being  requested as a new Discount  Rate,  give the Agent
irrevocable  notice  of  the  new  Discount  Rate  for  the  Purchaser  Interest
associated  with such  Terminating  Tranche.  Agent will,  from time to time, at
Seller's request make available  non-binding  indications of the LIBO Rate for a
new Tranche Period with respect to any Terminating  Tranche.  Until Seller gives
notice to the Agent of another  Discount Rate, the initial Discount Rate for any
Purchaser  Interest  transferred to the Financial  Institutions  pursuant to the
terms and conditions hereof shall be the Base Rate.

Section 4.5       Suspension of the LIBO Rate.

(a) If any Financial  Institution notifies the Agent that it has determined that
funding  its  Pro  Rata  Share  of the  Purchaser  Interests  of  the  Financial
Institutions at a LIBO Rate would violate any applicable law, rule,  regulation,
or directive of any governmental or regulatory authority,  whether or not having
the force of law, or that (i)  deposits of a type and  maturity  appropriate  to
match fund its  Purchaser  Interests at such LIBO Rate are not available or (ii)
such LIBO Rate does not accurately  reflect the cost of acquiring or maintaining
a  Purchaser  Interest  at such LIBO  Rate,  then the Agent  shall  suspend  the
availability  of such LIBO Rate at the end of any then current  Tranche  Period,
provided that if required by any applicable law, rule,  regulation or directive,
any then current  Tranche Period for such  Purchaser  Interest based on the LIBO
Rate shall terminate immediately and a new Tranche Period based on the Base Rate
shall commence.

(b) If less than all of the  Financial  Institutions  give a notice to the Agent
pursuant to Section 4.5(a), each Financial  Institution which gave such a notice
shall be obliged, at the request of Seller,  Company or the Agent, to assign all
of its rights and obligations  hereunder to (i) another Financial Institution or
(ii) another funding entity  nominated by Seller or the Agent that is acceptable
to Company and willing to participate  in this  Agreement  through the Liquidity
Termination Date in the place of such notifying Financial Institution;  provided
that (i) the notifying Financial  Institution receives payment in full, pursuant
to an  Assignment  Agreement,  of an amount  equal to such  notifying  Financial
Institution's  Pro  Rata  Share of the  Capital  and  Yield  owing to all of the
Financial  Institutions  and all  accrued  but unpaid  fees and other  costs and
expenses payable in respect of its Pro Rata Share of the Purchaser  Interests of
the  Financial  Institutions,  and (ii) the  replacement  Financial  Institution
otherwise satisfies the requirements of Section 12.1(b).

ARTICLE V
                         REPRESENTATIONS AND WARRANTIES

Section 5.1  Representations  and Warranties of The Seller Parties.  Each Seller
Party  hereby  represents  and warrants to the Agent and the  Purchasers,  as to
itself,  as of the date hereof and as of the date of each  Incremental  Purchase
and the date of each Reinvestment that:

(a)  Corporate  Existence  and Power.  Each Seller Party is a  corporation  duly
organized,  validly existing and in good standing under the laws of the State of
Delaware.  Each Seller  Party 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 or so hold 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 such Seller Party of this  Agreement  and each other
Transaction  Document  to  which  it is a  party,  and  the  performance  of its
obligations hereunder and thereunder and, in the case of Seller, Seller's use of
the proceeds of purchases 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 such Seller
Party is a party has been duly executed and delivered by such Seller Party.

(c) No  Conflict.  The  execution  and  delivery  by such  Seller  Party 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 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 such Seller Party or
its Subsidiaries (except as created hereunder),  except, in any case, where such
contravention  or violation could not be reasonably  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 such Seller  Party 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 such Seller Party's knowledge, threatened, against or affecting such
Seller Party,  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.
Anixter 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.  The Seller is not in
default with respect to any order of any court, arbitrator or governmental body.

(f) Binding Effect. This Agreement and each other Transaction  Document to which
such Seller Party is a party constitute the legal, valid and binding obligations
of such Seller Party enforceable  against such Seller Party 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 such Seller
Party or any of its Affiliates to the Agent or the Purchasers 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 such Seller Party or any of its  Affiliates to the Agent
or the Purchasers  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 any purchase hereunder will be used (i) for
a purpose that violates,  or would be  inconsistent  with,  Regulation 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 12, 13 or 14 of the Securities Exchange Act of 1934, as amended.

(i) Good Title.  Immediately prior to each purchase  hereunder,  Seller shall be
the legal and  beneficial  owner of the  Receivables  and Related  Security with
respect thereto,  free and clear of any Adverse Claim,  except as created by the
Transaction  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 Seller's  ownership
interest in each Receivable, its Collections and the Related Security.

(j)  Perfection.  This  Agreement,  together  with the  filing of the  financing
statements  contemplated  hereby, is effective to, and shall, upon each purchase
hereunder,  transfer to the Agent for the benefit of the  relevant  Purchaser or
Purchasers (and the Agent for the benefit of such Purchaser or Purchasers  shall
acquire from Seller) a valid and perfected first priority  undivided  percentage
ownership or security interest in each Receivable  existing or hereafter arising
and in 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 the Agent's (on behalf of the Purchasers)  ownership or
security interest in the Receivables, the Related Security and the Collections.

(k) Places of  Business  and  Locations  of  Records.  The  principal  places of
business and chief  executive  office of such Seller Party and the offices where
it keeps all of its Records are located at the address(es) listed on Exhibit III
or such other  locations of which the Agent has been notified in accordance with
Section 7.2(a) in jurisdictions where all action required by Section 14.4(a) has
been taken and completed.  Seller's  Federal Employer  Identification  Number is
correctly set forth on Exhibit III.

(l) Collections. The conditions and requirements set forth in Section 7.1(j) and
Section 8.2 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 Seller at each  Collection  Bank and the post office box
number of each  Lock-Box,  are listed on Exhibit IV.  Seller has not granted any
Person,  other than the Agent as contemplated  by this  Agreement,  dominion and
control of any Lock-Box or Collection Account, or the right to take dominion and
control of any such Lock-Box or Collection  Account at a future time or upon the
occurrence of a future event.

(m) Material Adverse Effect.  (i) The initial  Servicer  represents and warrants
that since  December 31, 1999,  no event has occurred that would have a material
adverse effect on the financial  condition or operations of the initial Servicer
and its  Subsidiaries,  taken as a whole, or the ability of the initial Servicer
to perform its obligations under this Agreement,  and (ii) Seller represents and
warrants that since the date of this Agreement, no event has occurred that would
have a material  adverse effect on (A) the financial  condition or operations of
Seller,  (B) the  ability  of  Seller  to  perform  its  obligations  under  the
Transaction Documents, or (C) the collectibility of the Receivables generally or
any material portion of the Receivables.

(n) Names. In the past five (5) years,  Seller 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 Seller.  Originator owns,  directly or indirectly,  100% of the
issued and  outstanding  capital stock of Seller,  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 Seller.

(p) Not a Holding Company or an Investment  Company.  Such Seller Party 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.  Such Seller  Party 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. Such Seller Party has complied in all material 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. Such Seller Party 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 7.1(a)(vii).

(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  of its  purchase  under  the
Receivables  Sale  Agreement was an Eligible  Receivable on such purchase  date,
and,  as of the  date of each  Monthly  Report  or any  other  report  delivered
pursuant to Section 8.5, each Receivable included in the Net Receivables Balance
on such Monthly Report or other report was an Eligible Receivable.

(u)  Net Receivables  Balance.  Seller has determined that, immediately  after
giving  effect  to each  Incremental  Purchase  hereunder,  the Net  Receivables
Balance is at least equal to the sum of (i) the Aggregate Capital, plus (ii) the
Aggregate Reserves.

(v)  Accounting.  The  manner in  which  each  Seller Party  accounts for the
transactions contemplated by this Agreement and the Receivables  Sale Agreement
does not jeopardize true sale analysis.

Section 5.2       Financial Institution Representations and Warranties.

Each Financial Institution hereby represents and warrants to the Agent and
Company that:

(a) Existence  and Power.  Such  Financial  Institution  is a  corporation  or a
banking association duly organized,  validly existing and in good standing under
the laws of its  jurisdiction  of  incorporation  or  organization,  and has all
corporate power to perform its obligations hereunder.

(b) No Conflict.  The execution and delivery by such  Financial  Institution  of
this Agreement and the performance of its  obligations  hereunder are within its
corporate powers,  have been duly authorized by all necessary  corporate action,
do not contravene or violate (i) its certificate or articles of incorporation or
association 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 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 its assets.  This
Agreement has been duly  authorized,  executed and  delivered by such  Financial
Institution.

(c) Governmental Authorization. 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 such Financial  Institution of
this Agreement and the performance of its obligations hereunder.

(d) Binding  Effect.  This Agreement  constitutes  the legal,  valid and binding
obligation of such  Financial  Institution  enforceable  against such  Financial
Institution  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 such  enforcement  is sought in a
proceeding in equity or at law).

ARTICLE VI
                             CONDITIONS OF PURCHASES

Section 6.1 Conditions  Precedent to Initial Incremental  Purchase.  The initial
Incremental  Purchase of a Purchaser Interest under this Agreement is subject to
the  conditions  precedent  that the Agent shall have  received on or before the
date of such purchase those  documents  listed on Schedule B and the Agent shall
have received all fees and expenses required to be paid on such date pursuant to
the terms of this Agreement and the Fee Letter.

Section 6.2 Conditions Precedent to All Purchases and Reinvestments.  Each
purchase of a Purchaser  Interest (other than pursuant to Section 13.1) and each
Reinvestment  shall be subject to the further  conditions  precedent that (a) in
the  case of each  such  purchase  or  Reinvestment:  the  Servicer  shall  have
delivered  to the  Agent on or prior to the date of such  purchase,  in form and
substance  satisfactory to the Agent,  all Monthly Reports as and when due under
Section 8.5 and upon the Agent's  request,  the Servicer shall have delivered to
the  Agent  at  least  three  (3)  Business  Days  prior  to  such  purchase  or
Reinvestment  an interim  report in the form of a Monthly  Report,  showing  the
amount of Eligible Receivables; (b) the Facility Termination Date shall not have
occurred;  (c) the Agent shall have received such other  approvals,  opinions or
documents  as it may  reasonably  request;  and (d) on the  date  of  each  such
Incremental  Purchase or  Reinvestment,  the following  statements shall be true
(and  acceptance of the proceeds of such  Incremental  Purchase or  Reinvestment
shall be deemed a representation and warranty by Seller that such statements are
then true):

(i) the  representations  and  warranties  set forth in Section 5.1 are true and
correct on and as of the date of such Incremental Purchase or Reinvestment as
though made on and as of such date;

(ii) no event  has  occurred  and is  continuing, or would result from such
Incremental Purchase or Reinvestment, that will constitute an Amortization
Event, and no event has occurred and is continuing, or would result from such
Incremental Purchase or Reinvestment, that would constitute a Potential
Amortization Event; and

(iii) the Aggregate Capital does not exceed the Purchase Limit and the aggregate
Purchaser Interests do not exceed 100%.

It is  expressly  understood  that each  Reinvestment  shall,  unless  otherwise
directed by the Agent or any Purchaser, occur automatically on each day that the
Servicer shall receive any Collections  without the requirement that any further
action be taken on the part of any Person  and  notwithstanding  the  failure of
Seller to satisfy any of the foregoing  conditions  precedent in respect of such
Reinvestment.  The failure of Seller to satisfy any of the foregoing  conditions
precedent  in  respect  of any  Reinvestment  shall  give rise to a right of the
Agent,  which  right may be  exercised  at any time on demand of the  Agent,  to
rescind  the  related  purchase  and  direct  Seller to pay to the Agent for the
benefit  of the  Purchasers  an  amount  equal to the  Collections  prior to the
Amortization Date that shall have been applied to the affected Reinvestment.

ARTICLE VII
                                    COVENANTS

Section 7.1 Affirmative Covenants of The Seller Parties. Until the date on which
the Aggregate  Unpaids have been  indefeasibly  paid in full and this  Agreement
terminates in accordance with its terms, each Seller Party hereby covenants,  as
to itself, as set forth below:

(a)      Financial Reporting. Such Seller Party will maintain, for itself and
         each of its Subsidiaries, a system of accounting established and
         administered in accordance with GAAP, and furnish or cause to be
         furnished to the Agent:

(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  Anixter  and  its   consolidated
         Subsidiaries  for such fiscal year certified in a manner  acceptable to
         the  Agent by Ernst & Young or  other  independent  public  accountants
         reasonably acceptable to the Agent.

(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 Anixter and its consolidated  Subsidiaries as at the close of
         each such period and  statements of income and retained  earnings and a
         statement of cash flows for Anixter and its  consolidated  Subsidiaries
         for the period  from the  beginning  of such  fiscal year to the end of
         such quarter,  all certified by its respective chief financial  officer
         or treasurer.

(iii)    Compliance Certificate. Together with the financial statements required
         hereunder,  a  compliance  certificate  in  substantially  the  form of
         Exhibit V signed by such Seller Party's Authorized Officer on behalf of
         such Seller Party 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 such Seller Party 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 the Agent or Company, 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,  such Seller Party 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 such Seller Party
         as the  Agent  may from  time to time  reasonably  request  in order to
         protect  the  interests  of the  Agent and the  Purchasers  under or as
         contemplated by this Agreement.

(b)      Notices.  Such Seller  Party will notify the Agent 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 such Seller Party.

(ii)     Judgment and  Proceedings.  (A) (1) The entry of any judgment or decree
         against  the  Servicer  or any of its  respective  Subsidiaries  if the
         aggregate amount of all judgments and decrees then outstanding  against
         the  Servicer  and its  Subsidiaries  exceeds  $25,000,000  and (2) the
         institution of any litigation,  arbitration  proceeding or governmental
         proceeding   against  the  Servicer  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;  and (B) the entry of any judgment or decree
         or  the  institution  of  any  litigation,  arbitration  proceeding  or
         governmental proceeding against Seller.

(iii)    Material Adverse Effect.  The occurrence of any event or condition that
         has had, or could reasonably be expected to have, a Material Adverse
         Effect.
(iv)     Termination Date.  The occurrence of the "Amortization Date" under and
         as defined in the Receivables Sale Agreement.

(v)      Defaults Under Other Agreements.  (A) The occurrence of a default or an
         event of default  under any other  financing  arrangement  pursuant  to
         which  Seller is a debtor or an obligor and (B) the  occurrence  of any
         default or event of default under any other  financing  arrangement  or
         arrangements governing Indebtedness,  individually or in the aggregate,
         in a principal amount greater than or equal to $25,000,000  pursuant to
         which Servicer is a debtor or obligor.

(vi)     Downgrade  of   Originator.   Any   downgrade  in  the  rating  of  any
         Indebtedness  of  Originator  by S&P or by Moody's,  setting  forth the
         Indebtedness affected and the nature of such change.

(c) Compliance with Laws and  Preservation of Corporate  Existence.  Such Seller
Party 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 so comply could not be reasonably expected
to have a Material Adverse Effect.  Such Seller Party 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 preserve and maintain or qualify  could not  reasonably  be
expected to have a Material Adverse Effect.

(d) Audits.  Such Seller  Party will furnish to the Agent from time to time such
information  with respect to it and the  Receivables as the Agent may reasonably
request. Such Seller Party will, from time to time during regular business hours
as  requested by the Agent upon  reasonable  notice and at the sole cost of such
Seller  Party  (except as provided  below),  permit the Agent,  or its agents or
representatives,  (i) to  examine  and make  copies  of and  abstracts  from all
Records in the  possession  or under the control of such Person  relating to the
Receivables and the Related Security, including, without limitation, the related
Contracts,  and (ii) to visit the offices and  properties of such Person for the
purpose of  examining  such  materials  described  in clause  (i) above,  and to
discuss matters relating to such Person's financial condition or the Receivables
and  the  Related  Security  or  any  Person's  performance  under  any  of  the
Transaction  Documents or any Person's  performance  under the Contracts and, in
each case,  with any of the  officers  or  employees  of Seller or the  Servicer
having knowledge of such matters. So long as no Potential  Amortization Event or
Amortization  Event exists, the visits under this Section 7.1(d) that are at the
sole cost of the  applicable  Seller Party shall be limited to once per calendar
year.

(e)      Keeping and Marking of Records and Books.

(i)      The Servicer 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).
         The Servicer  will give the Agent notice of any material  change in the
         administrative  and  operating  procedures  referred to in the previous
         sentence.

(ii)     Such Seller  Party will (A) on or prior to the date  hereof,  cause all
         Receivable  reports  relating  to the  Purchaser  Interests  to  bear a
         legend, acceptable to the Agent, describing the Purchaser Interests and
         (B) from and after the  occurrence  of an  Amortization  Event (x) mark
         each Contract with a legend describing the Purchaser  Interests and (y)
         deliver to the Agent 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.  Such Seller
Party  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.

(g) Performance and Enforcement of Receivables Sale Agreement.  Seller will, and
will require  Originator to, perform each of their  respective  obligations  and
undertakings under and pursuant to the Receivables Sale Agreement, will purchase
Receivables  thereunder  in strict  compliance  with the terms  thereof and will
vigorously  enforce  the  rights  and  remedies  accorded  to  Seller  under the
Receivables Sale Agreement.  Seller will take all actions to perfect and enforce
its rights and  interests  (and the  rights and  interests  of the Agent and the
Purchasers as assignees of Seller) under the  Receivables  Sale Agreement as the
Agent may from time to time reasonably request,  including,  without limitation,
making claims to which it may be entitled under any indemnity,  reimbursement or
similar provision contained in the Receivables Sale Agreement.

(h)  Ownership.  Seller will (or will cause  Originator  to) take all  necessary
action to (i) vest legal and  equitable  title to the  Receivables,  the Related
Security and the  Collections  purchased  under the  Receivables  Sale Agreement
irrevocably  in Seller,  free and clear of any Adverse Claims other than Adverse
Claims in favor of the Agent and the Purchasers (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  Seller's  interest  in  such  Receivables,   Related  Security  and
Collections and such other action to perfect, protect or more fully evidence the
interest  of  Seller  therein  as the Agent may  reasonably  request),  and (ii)
establish  and  maintain,  in  favor  of  the  Agent,  for  the  benefit  of the
Purchasers,  a valid and perfected first priority undivided percentage ownership
interest (and/or a valid and perfected first priority security  interest) in all
Receivables,  Related  Security and Collections to the full extent  contemplated
herein,  free and clear of any Adverse Claims other than Adverse Claims in favor
of the Agent for the benefit of the Purchasers  (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 the  Agent's  (for the  benefit of the  Purchasers)  interest in such
Receivables,  Related Security and Collections and such other action to perfect,
protect or more fully  evidence the interest of the Agent for the benefit of the
Purchasers as the Agent may reasonably request).

(i) Purchasers'  Reliance.  Seller acknowledges that the Purchasers are entering
into the  transactions  contemplated by this Agreement in reliance upon Seller's
identity as a legal entity that is separate from Originator. Therefore, from and
after the date of execution  and delivery of this  Agreement,  Seller shall take
all reasonable steps, including, without limitation, all steps that the Agent or
any Purchaser may from time to time  reasonably  request,  to maintain  Seller's
identity as a separate  legal  entity and to make it  manifest to third  parties
that  Seller is an entity  with assets and  liabilities  distinct  from those of
Originator and any  Affiliates  thereof and not just a division of Originator or
any such  Affiliate.  Without  limiting the  generality  of the foregoing and in
addition to the other covenants set forth herein, Seller will:

(A)               conduct its own  business in its own name and require that all
                  full-time  employees of Seller, if any, identify themselves as
                  such and not as employees of  Originator  (including,  without
                  limitation,  by means of providing  appropriate employees with
                  business or identification cards identifying such employees as
                  Seller's employees);

(B)               compensate all  employees,  consultants  and agents  directly,
                  from  Seller's own funds,  for services  provided to Seller by
                  such employees,  consultants and agents and, to the extent any
                  employee,  consultant  or agent of Seller is also an employee,
                  consultant or agent of  Originator  or any Affiliate  thereof,
                  allocate the  compensation  of such  employee,  consultant  or
                  agent  between  Seller and  Originator or such  Affiliate,  as
                  applicable,  on a basis that reflects the services rendered to
                  Seller and Originator or such Affiliate, as applicable;

(C)               clearly  identify its offices (by signage or otherwise) as its
                  offices  and,  if such  office is  located  in the  offices of
                  Originator,  Seller  shall  lease such office at a fair market
                  rent;

(D)               have a separate telephone number,  which will be answered only
                  in its name and  separate  stationery,  invoices and checks in
                  its own name;

(E)               conduct all transactions with Originator  (including,  without
                  limitation,  any  delegation of its  obligations  hereunder as
                  Servicer)  strictly on an  arm's-length  basis,  allocate  all
                  overhead expenses  (including,  without limitation,  telephone
                  and other utility charges) for items shared between Seller and
                  Originator   on  the  basis  of  actual   use  to  the  extent
                  practicable   and,  to  the  extent  such  allocation  is  not
                  practicable, on a basis reasonably related to actual use;

(F)               at all times have a Board of Directors consisting of three
                  members, at least one member of which is an Independent
                  Director;

(G)               observe all corporate  formalities as a distinct  entity,  and
                  ensure  that  all  corporate   actions  relating  to  (A)  the
                  selection,  maintenance  or  replacement  of  the  Independent
                  Director,  (B) the dissolution or liquidation of Seller or (C)
                  the  initiation  of,  participation  in,  acquiescence  in  or
                  consent  to  any  bankruptcy,  insolvency,  reorganization  or
                  similar  proceeding  involving Seller,  are duly authorized by
                  unanimous  vote  of its  Board  of  Directors  (including  the
                  Independent Director);

(H)               maintain  Seller's  books and records  separate  from those of
                  Originator  and any Affiliate  thereof and  otherwise  readily
                  identifiable   as  its  own  assets   rather  than  assets  of
                  Originator and any Affiliate thereof;

(I)               prepare  its  financial  statements  separately  from those of
                  Originator   and  insure  that  any   consolidated   financial
                  statements of Originator or any Affiliate thereof that include
                  Seller and that are filed  with the  Securities  and  Exchange
                  Commission or any other governmental agency have notes clearly
                  stating  that Seller is a separate  corporate  entity and that
                  its assets will be available first and foremost to satisfy the
                  claims of the creditors of Seller;

(J)               except as herein specifically otherwise provided, maintain the
                  funds  or  other  assets  of  Seller  separate  from,  and not
                  commingled with, those of Originator or any Affiliate  thereof
                  and only maintain bank accounts or other  depository  accounts
                  to which Seller alone is the account party,  into which Seller
                  alone makes deposits and from which Seller alone (or the Agent
                  hereunder) has the power to make withdrawals;

(K)               pay all of  Seller's  operating  expenses  from  Seller's  own
                  assets  (except for certain  payments by  Originator  or other
                  Persons pursuant to allocation  arrangements  that comply with
                  the requirements of this Section 7.1(i));

(L)               operate its business and  activities  such that:  it does not
                  engage in any  business  or  activity  of any  kind,  or
                  enter  into any  transaction  or indenture,  mortgage,
                  instrument, agreement, contract, lease  or  other undertaking,
                  other than the transactions  contemplated  and authorized by
                  this Agreement  and the  Receivables Sale Agreement; and does
                  not  create, incur, guarantee, assume or suffer to exist  any
                  indebtedness or other liabilities, whether direct or
                  contingent, other than (1) as a result of the  endorsement of
                  negotiable  instruments for deposit or collection or similar
                  transactions in the ordinary course of  business, (2) the
                  incurrence of obligations under this Agreement, (3) the
                  incurrence of obligations, as expressly contemplated in the
                  Receivables  Sale  Agreement,  to make payment to Originator
                  thereunder for the purchase of Receivables from Originator
                  under the Receivables  Sale Agreement, and (4) the incurrence
                  of operating expenses in the ordinary course of business of
                  the type otherwise contemplated by this Agreement;

(M)               maintain  its  corporate   charter  in  conformity  with  this
                  Agreement, such that it does not amend, restate, supplement or
                  otherwise  modify its Certificate of  Incorporation or By-Laws
                  in any  respect  that would  impair its ability to comply with
                  the terms or provisions of any of the  Transaction  Documents,
                  including,   without   limitation,   Section  7.1(i)  of  this
                  Agreement;

(N)               maintain the  effectiveness  of, and continue to perform under
                  the Receivables  Sale Agreement,  such that it does not amend,
                  restate, supplement, cancel, terminate or otherwise modify the
                  Receivables  Sale  Agreement,  or give  any  consent,  waiver,
                  directive or approval thereunder or waive any default, action,
                  omission or breach  under the  Receivables  Sale  Agreement or
                  otherwise  grant any indulgence  thereunder,  without (in each
                  case) the prior written consent of the Agent;

(O)               maintain  its  corporate  separateness  such  that it does not
                  merge or consolidate with or into, or convey,  transfer, lease
                  or otherwise  dispose of (whether in one  transaction  or in a
                  series of transactions,  and except as otherwise  contemplated
                  herein) all or  substantially  all of its assets  (whether now
                  owned  or   hereafter   acquired)   to,  or  acquire   all  or
                  substantially  all of the assets of,  any  Person,  nor at any
                  time create,  have, acquire,  maintain or hold any interest in
                  any Subsidiary.

(P)               maintain at all times the Required  Capital Amount (as defined
                  in the Receivables Sale Agreement) and refrain from making any
                  dividend, distribution, redemption of capital stock or payment
                  of  any  subordinated   indebtedness  which  would  cause  the
                  Required Capital Amount to cease to be so maintained; and

(Q)               take such other actions as are necessary on its part to ensure
                  that the facts and assumptions set forth in the opinion issued
                  by Schiff Hardin & Waite, as counsel for Seller, in connection
                  with the closing or initial  Incremental  Purchase  under this
                  Agreement and relating to  substantive  consolidation  issues,
                  and in the certificates accompanying such opinion, remain true
                  and correct in all material respects at all times.

(j)  Collections.  Such  Seller  Party  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 Seller or any
Affiliate  of Seller,  Seller will remit (or will cause all such  payments to be
remitted)  directly to a Collection Bank and deposited into a Collection Account
within two (2) Business Days following receipt thereof,  and, at all times prior
to such remittance,  Seller will itself hold or, if applicable,  will cause such
payments  to be held in trust  for the  exclusive  benefit  of the Agent and the
Purchasers.  Seller will  maintain  exclusive  ownership,  dominion  and control
(subject to the terms of this Agreement and the applicable Collection Agreement)
of each  Lock-Box and  Collection  Account and shall 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 the Agent as
contemplated by this Agreement.

(k) Taxes.  Such Seller Party will file all tax returns and reports  required by
law to be filed by it and will promptly pay all taxes and  governmental  charges
at any time owing; provided,  however, that no Seller Party shall be required to
pay 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 GAAP shall have been set aside on its books,  unless
the  failure to make any such  payment (1) in the case of either  Seller  Party,
shall  give  rise to an  immediate  right to  foreclosure  on an  Adverse  Claim
securing  such  amounts,  (2) in the case of the  Seller,  shall  result  in the
attachment of an Adverse Claim securing such amounts, or (3) could reasonably be
expected to have a Material  Adverse Effect.  Seller will pay when due any taxes
payable in connection with the Receivables, exclusive of taxes on or measured by
income or gross receipts of Company, the Agent or any Financial Institution.

(l)  Insurance.  Seller will  maintain in effect,  or cause to be  maintained in
effect, at Seller's own expense, such casualty and liability insurance as Seller
shall deem appropriate in its good faith business  judgment.  Seller will pay or
cause to be paid,  the  premiums  therefor  and  deliver  to the Agent  evidence
satisfactory  to the Agent of such  insurance  coverage.  Copies of each  policy
shall be furnished to the Agent and any Purchaser in certificated  form upon 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,  Seller's
obligations hereunder.

(m) Payment to Originator.  With respect to any  Receivable  purchased by Seller
from  Originator,  such sale shall be effected under,  and in strict  compliance
with  the  terms  of,  the  Receivables  Sale  Agreement,   including,   without
limitation,  the terms  relating to the amount and timing of payments to be made
to Originator in respect of the purchase price for such Receivable.

Section 7.2 Negative  Covenants of The Seller  Parties.  Until the date on which
the Aggregate  Unpaids have been  indefeasibly  paid in full and this  Agreement
terminates in accordance with its terms, each Seller Party hereby covenants,  as
to itself, that:

(a) Name  Change,  Offices and  Records.  Such Seller  Party 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 relocate its chief executive  office or
any office where  Records are kept unless it shall have:  (i) given the Agent at
least  forty-five  (45) days' prior written notice thereof and (ii) delivered to
the Agent all financing statements, instruments and other documents requested by
the Agent 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),  such Seller Party 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 the Agent 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 the
Servicer 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.  Such Seller
Party 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 a change  in any  applicable  law,  rule or  regulation.  Except  as
provided in Section  8.2(d),  the Servicer  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.  Seller  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 the Agent  and the  Purchasers
provided  for herein),  and Seller will defend the right,  title and interest of
the Agent and the  Purchasers  in, to and under any of the  foregoing  property,
against  all  claims  of third  parties  claiming  through  or under  Seller  or
Originator.  Seller  will not  create or suffer to exist any  mortgage,  pledge,
security interest, encumbrance, lien, charge or other similar arrangement on any
of its inventory, the sale or lease of which would give rise to a Receivable.

(e) Net Receivables Balance.  At no time prior to the Amortization Date shall
Seller permit the Net Receivables Balance to be less than an amount equal to the
sum of (i) the Aggregate Capital plus (ii) the Aggregate Reserves.

(f) Amortization Date Determination. Seller will not designate the "Amortization
Date" (as defined in the Receivables Sale Agreement), or send any written notice
to  Originator  in respect  thereof,  without the prior  written  consent of the
Agent,  except with respect to the occurrence of such  Amortization Date arising
pursuant to Section 5.1(d) of the Receivables Sale Agreement.

ARTICLE VIII
                          ADMINISTRATION AND COLLECTION

                      Section 8.1 Designation of Servicer.

(a) The servicing,  administration  and collection of the Receivables  shall be
conducted by such Person (the  "Servicer") so designated from time to time in
accordance with this Section 8.1. Anixter is hereby  designated as, and hereby
agrees to perform the duties and  obligations of, the Servicer pursuant to the
terms of this  Agreement.  Anixter shall not resign as the Servicer  without the
prior  written  consent of the Agent and the  Required  Financial  Institutions.
After the occurrence and during the  continuation of an Amortization Event, the
Agent may at any time designate as Servicer any Person to succeed Anixter or any
successor Servicer.

(b) Without the prior  written  consent of the Agent and the Required  Financial
Institutions,  Anixter  shall not be  permitted to delegate any of its duties or
responsibilities  as Servicer to any Person  other than (i) Seller and (ii) with
respect to certain  Charged-Off  Receivables,  outside  collection  agencies  in
accordance  with its  customary  practices.  Seller  shall not be  permitted  to
further  delegate to any other Person any of the duties or  responsibilities  of
the  Servicer  delegated  to it by  Anixter.  If at any  time  the  Agent  shall
designate  as  Servicer  any  Person   other  than   Anixter,   all  duties  and
responsibilities  theretofore  delegated  by  Anixter  to  Seller  may,  at  the
discretion of the Agent, be terminated forthwith on notice given by the Agent to
Anixter and to Seller.

(c)  Notwithstanding  the  foregoing  subsection  (b), (i) Anixter  shall be and
remain  primarily liable to the Agent and the Purchasers for the full and prompt
performance of all duties and  responsibilities  of the Servicer (other than any
Servicer  appointed by the Agent without Anixter's  consent)  hereunder and (ii)
the Agent and the Purchasers  shall be entitled to deal exclusively with Anixter
in matters  relating to the  discharge by the Servicer  (other than any Servicer
appointed  by  the  Agent   without   Anixter's   consent)  of  its  duties  and
responsibilities  hereunder.  The Agent and the Purchasers shall not be required
to give notice,  demand or other  communication to any Person other than Anixter
in order for communication to the Servicer (other than any Servicer appointed by
the Agent without Anixter's consent) and its sub-servicer or other delegate with
respect  thereto  to be  accomplished.  Anixter,  at all  times  that  it is the
Servicer,  shall be responsible for providing any sub-servicer or other delegate
of the Servicer with any notice given to the Servicer under this Agreement.

Section 8.2       Duties of Servicer.

(a) The  Servicer  shall  take or cause to be taken all such  actions  as may be
necessary  or advisable to collect  each  Receivable  from time to time,  all in
accordance with applicable laws, rules and regulations, with reasonable care and
diligence, and in accordance with the Credit and Collection Policy.

(b) The Servicer will instruct all Obligors to pay all Collections directly to a
Lock-Box or Collection  Account.  The Servicer shall effect a Collection Account
Agreement  substantially  in the form of Exhibit VI with each bank maintaining a
Collection  Account at any time. In the case of any remittances  received in any
Lock-Box  or  Collection  Account  that  shall  have  been  identified,  to  the
satisfaction of the Servicer, to not constitute Collections or other proceeds of
the Receivables or the Related Security,  the Servicer shall promptly remit such
items to the  Person  identified  to it as being the owner of such  remittances.
From and after the date the Agent delivers to any  Collection  Bank a Collection
Notice pursuant to Section 8.3, the Agent may request that the Servicer, and the
Servicer  thereupon  promptly  shall  instruct all Obligors  with respect to the
Receivables, to remit all payments thereon to a new depositary account specified
by the Agent and, at all times  thereafter,  Seller and the  Servicer  shall not
deposit or otherwise credit, and shall not permit any other Person to deposit or
otherwise  credit to such new depositary  account any cash or payment item other
than Collections.

(c) The  Servicer  shall  administer  the  Collections  in  accordance  with the
procedures  described herein and in Article II. The Servicer shall set aside and
hold in trust for the  account of Seller  and the  Purchasers  their  respective
shares of the  Collections  in accordance  with Article II. The Servicer  shall,
upon the request of the Agent,  segregate,  in a manner acceptable to the Agent,
all  cash,  checks  and  other  instruments  received  by it  from  time to time
constituting  Collections from the general funds of the Servicer or Seller prior
to the remittance  thereof in accordance  with Article II. If the Servicer shall
be required to segregate  Collections  pursuant to the preceding  sentence,  the
Servicer  shall  segregate and deposit with a bank  designated by the Agent such
allocable  share of Collections  of Receivables  set aside for the Purchasers on
the first  Business Day following  receipt by the Servicer of such  Collections,
duly endorsed or with duly executed instruments of transfer.

(d) The  Servicer  may, in  accordance  with the Credit and  Collection  Policy,
extend the maturity of any Receivable or adjust the  Outstanding  Balance of any
Receivable as the Servicer determines to be appropriate to maximize  Collections
thereof;  provided,  however,  that such extension or adjustment shall not alter
the  status  of  such  Receivable  as a  Delinquent  Receivable  or  Charged-Off
Receivable  or limit  the  rights  of the  Agent or the  Purchasers  under  this
Agreement.  Notwithstanding  anything to the contrary  contained  herein, at any
time that an Amortization Event is continuing, the Agent shall have the absolute
and  unlimited  right to direct the  Servicer  to  commence  or settle any legal
action with  respect to any  Receivable  or to foreclose  upon or repossess  any
Related Security.

(e) The Servicer  shall hold for Seller and the  Purchasers all Records that (i)
evidence  or  relate to the  Receivables,  the  related  Contracts  and  Related
Security or (ii) are otherwise necessary or desirable to collect the Receivables
and shall, as soon as practicable upon demand of the Agent at any time following
an  Amortization  Event  or a  Potential  Amortization  Event,  deliver  or make
available to the Agent all such Records,  at a place selected by the Agent.  The
Servicer  shall,  from time to time at the request of any Purchaser,  furnish to
the  Purchasers  (promptly  after any such request) a calculation of the amounts
set aside for the Purchasers pursuant to Article II.

Section  8.3  Collection  Notices.   Upon  the  occurrence  of  and  during  the
continuation of an Amortization Event or Potential Amortization Event, the Agent
is  authorized  at any time to date and to deliver to the  Collection  Banks the
Collection Notices.  Seller hereby transfers to the Agent for the benefit of the
Purchasers,  effective  when the  Agent  delivers  such  notice,  the  exclusive
ownership and control of each Lock-Box and the Collection Accounts.  In case any
authorized  signatory of Seller whose signature appears on a Collection  Account
Agreement shall cease to have such authority before the delivery of such notice,
such  Collection  Notice shall  nevertheless  be valid as if such  authority had
remained in force. Seller hereby authorizes the Agent, and agrees that the Agent
shall be  entitled  to,  following  the  delivery of the  Collection  Notice (i)
endorse Seller's name on checks and other instruments representing  Collections,
(ii) enforce the Receivables, the related Contracts and the Related Security and
(iii) take such action as shall be  necessary  or  desirable  to cause all cash,
checks and other  instruments  constituting  Collections  of Receivables to come
into the possession of the Agent rather than Seller.

Section  8.4  Responsibilities  of  Seller.  Anything  herein  to  the  contrary
notwithstanding,  the exercise by the Agent and the  Purchasers  of their rights
hereunder shall not release the Servicer, Originator or Seller from any of their
duties or  obligations  with  respect to any  Receivables  or under the  related
Contracts.  The Purchasers shall have no obligation or liability with respect to
any  Receivables  or related  Contracts,  nor shall any of them be  obligated to
perform the obligations of Seller.

Section 8.5 Reports.  The Servicer shall prepare and forward to the Agent (i) on
each Determination Date, a Monthly Report, (ii) at such times as the Agent shall
reasonably  request,  a report  in the form of a  Monthly  Report  updating  the
information contained in the most recent Monthly Report, and (iii) at such times
as the Agent shall  request,  a listing by Obligor of all  Receivables  together
with an aging of such Receivables.

Section 8.6 Servicing Fees. In  consideration  of Anixter's  agreement to act as
Servicer  hereunder,  the Purchasers hereby agree that, so long as Anixter shall
continue to perform as Servicer  hereunder,  Seller  shall pay over to Anixter a
fee (the  "Servicing  Fee") on the first calendar day of each month,  in arrears
for the  immediately  preceding  month,  equal to 0.36%  times  the  Outstanding
Balance of all Receivables  generated during such immediately preceding calendar
month, as compensation for its servicing activities.

ARTICLE IX
                               AMORTIZATION EVENTS

Section 9.1       Amortization Events.  The occurrence of any one or more of the
following events shall constitute an Amortization

Event:

(a) Any  Seller  Party  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)  and  Section  9.1(e))  and  such  failure  shall  continue  for  three  (3)
consecutive Business Days.

(b) Any representation,  warranty, certification or statement made by any Seller
Party 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 5.1(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 Seller to pay any  Indebtedness  when due or the  failure of any
other  Seller  Party to pay  when due any  Indebtedness  having  an  outstanding
principal  balance in excess of $25,000,000;  or the default by any Seller Party
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 any Seller Party 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) Any Seller Party 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
any Seller Party 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 such Seller Party or 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) any Seller Party or any of its  Significant  Subsidiaries
shall take any  corporate  action to  authorize  any of the actions set forth in
clauses (i) or (ii) above in this subsection (d).

(e)      Seller shall fail to comply with the terms of Section 2.6.

(f) As at the end of any Collection  Period:  (i) the average of the Delinquency
Ratios as of the end of such Collection Period and the two preceding  Collection
Periods shall exceed 11.875%; (ii) the average of the Dilution Trigger Ratios as
of the end of such Collection  Period and the two preceding  Collection  Periods
shall exceed 4.0%; or (iii) the average of the Loss-to-Liquidation  Ratios as of
the end of such Collection Period and the two preceding Collection Periods shall
exceed 4.875%.

(g)      A Change of Control shall occur.

(h) (i) One or more final  judgments  for the  payment of money shall be entered
against  Seller or (ii) 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 the Servicer,  and such judgment shall continue  unsatisfied and
in effect for ten (10) consecutive days without a stay of execution.

(i) The  "Amortization  Date"  under  and as  defined  in the  Receivables  Sale
Agreement shall occur under the Receivables  Sale Agreement or Originator  shall
for any  reason  cease to  transfer,  or cease to have  the  legal  capacity  to
transfer, or otherwise be incapable of transferring  Receivables to Seller under
the Receivables Sale Agreement.

(j) Anixter shall fail to comply with any of the  financial  covenants set forth
in Sections 17.16, 17.17 or 17.18 of the Credit Agreement,  as amended from time
to time pursuant to any amendment which (i) becomes  effective while Bank One is
a party to the Credit Agreement, and (ii) is consented to in writing by Bank One
as a party to the Credit Agreement.

(k) This  Agreement  shall  terminate in whole or in part (except in  accordance
with its terms),  or shall  cease to be  effective  or to be the legally  valid,
binding and  enforceable  obligation of Seller,  or the Agent for the benefit of
the Purchasers shall cease to have a valid and perfected first priority security
interest in the  Receivables,  the Related  Security  and the  Collections  with
respect thereto, and the Collection Accounts.

Section 9.2 Remedies.  Upon the  occurrence  and during the  continuation  of an
Amortization  Event,  the  Agent  may,  or upon the  direction  of the  Required
Financial Institutions shall, take any of the following actions: (i) replace the
Person then acting as  Servicer,  (ii)  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 each  Seller  Party;  provided,  however,  that  upon  the  occurrence  of an
Amortization  Event described in Section  9.1(d)(ii),  or of an actual or deemed
entry of an order  for  relief  with  respect  to any  Seller  Party  under  the
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 each Seller Party, (iii) to the fullest extent permitted by applicable
law,  declare  that the  Default  Fee shall  accrue  with  respect to any of the
Aggregate Unpaids  outstanding at such time, (iv) deliver the Collection Notices
to the Collection Banks, and (v) notify Obligors of the Purchasers'  interest in
the  Receivables.  The  aforementioned  rights  and  remedies  shall be  without
limitation,  and shall be in  addition to all other  rights and  remedies of the
Agent and the Purchasers  otherwise  available under any other provision of 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 X
                                 INDEMNIFICATION

Section  10.1  Indemnities  by The Seller  Parties.  Without  limiting any other
rights that the Agent or any  Purchaser may have  hereunder or under  applicable
law, (A) Seller  hereby  agrees to indemnify  (and pay upon demand to) the Agent
and each Purchaser and their respective 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 a Purchaser of
an interest in the Receivables,  and (B) the Servicer hereby agrees to indemnify
(and pay upon demand to) each Indemnified Party for Indemnified  Amounts awarded
against or incurred by any of them arising out of the  Servicer's  activities as
Servicer hereunder  excluding,  however, in all of the foregoing instances under
the preceding clauses (A) and (B):

(a)  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;

(b)  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

(c)  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  characterization for income tax purposes of the acquisition
by the Purchasers of Purchaser Interests as a loan or loans by the Purchasers to
Seller secured by the Receivables, the Related Security, the Collection Accounts
and the Collections;

     provided,  however, that nothing contained in this sentence shall limit the
liability  of any Seller Party or limit the  recourse of the  Purchasers  to any
Seller  Party for  amounts  otherwise  specifically  provided to be paid by such
Seller Party under the terms of this Agreement.  Without limiting the generality
of the  foregoing  indemnification,  Seller  shall  indemnify  the Agent and the
Purchasers for Indemnified  Amounts (including,  without  limitation,  losses in
respect  of  uncollectible  receivables,  regardless  of  whether  reimbursement
therefor  would  constitute  recourse to Seller or the Servicer)  relating to or
resulting from:

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

(ii)     the failure by Seller,  the Servicer or  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;

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

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

(v)      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;

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

(vii)    any investigation,  litigation or proceeding related to or arising from
         this  Agreement or any other  Transaction  Document,  the  transactions
         contemplated hereby, the use of the proceeds of an Incremental Purchase
         or a  Reinvestment,  the  ownership of the  Purchaser  Interests or any
         other  investigation,  litigation or proceeding relating to Seller, the
         Servicer or Originator in which any Indemnified  Party becomes involved
         as a result of any of the transactions contemplated hereby;

(viii)   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;

(ix)     any Amortization Event described in Section 9.1(d);

(x)      any failure of Seller to acquire and maintain legal and equitable title
         to, and  ownership  of any  Receivable  and the  Related  Security  and
         Collections with respect thereto from Originator, free and clear of any
         Adverse  Claim  (other  than as created  hereunder);  or any failure of
         Seller to give  reasonably  equivalent  value to  Originator  under the
         Receivables   Sale  Agreement  in  consideration  of  the  transfer  by
         Originator of any Receivable, or any attempt by any Person to void such
         transfer under statutory provisions or common law or equitable action;

(xi)     any failure to vest and maintain vested in the Agent for the benefit of
         the  Purchasers,  or to  transfer  to the Agent for the  benefit of the
         Purchasers,  legal and  equitable  title to, and  ownership of, a first
         priority  perfected  undivided  percentage  ownership  interest (to the
         extent of the Purchaser Interests  contemplated  hereunder) or security
         interest in the Receivables,  the Related Security and the Collections,
         free  and  clear  of  any  Adverse  Claim  (except  as  created  by the
         Transaction Documents);

(xii)    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 any Incremental
         Purchase or Reinvestment or at any subsequent time;

(xiii)   any action or omission by any Seller Party which reduces or impairs the
         rights of the Agent or the Purchasers with respect to any Receivable or
         the value of any such Receivable;

(xiv)    any  attempt  by any  Person,  other  than a  Purchaser,  to  void  any
         Incremental   Purchase  or   Reinvestment   hereunder  under  statutory
         provisions or common law or equitable action; and

(xv)     the failure of any  Receivable  included in the  calculation of the Net
         Receivables  Balance  as an  Eligible  Receivable  to  be  an  Eligible
         Receivable at the time so included.

Section 10.2 Increased Cost and Reduced  Return.  If after the date hereof,  any
Funding Source shall be charged any fee, expense or increased cost on account of
the adoption of any applicable law, rule or regulation (including any applicable
law, rule or regulation  regarding capital  adequacy) or any change therein,  or
any change in the  interpretation or administration  thereof by any governmental
authority,  central bank or comparable agency charged with the interpretation or
administration  thereof, or compliance with any request or directive (whether or
not having the force of law) of any such  authority,  central bank or comparable
agency:  (i) that subjects any Funding Source to any charge or withholding on or
with respect to any Funding Agreement or a Funding Source's  obligations under a
Funding  Agreement,  or on or with  respect to the  Receivables,  or changes the
basis of taxation of payments to any Funding Source of any amounts payable under
any Funding  Agreement (except for changes in the rate of tax on the overall net
income  of a Funding  Source or taxes  excluded  by  Section  10.1) or (ii) that
imposes, modifies or deems applicable any reserve, assessment, insurance charge,
special deposit or similar  requirement  against assets of, deposits with or for
the account of a Funding Source, or credit extended by a Funding Source pursuant
to a Funding  Agreement or (iii) that imposes any other  condition the result of
which is to increase the cost to a Funding Source of performing its  obligations
under a Funding Agreement, or to reduce the rate of return on a Funding Source's
capital as a consequence of its  obligations  under a Funding  Agreement,  or to
reduce the amount of any sum received or receivable by a Funding  Source under a
Funding  Agreement  or to require any payment  calculated  by  reference  to the
amount of interests or loans held or interest  received by it, then, upon demand
by the Agent,  Seller  shall pay to the Agent,  for the benefit of the  relevant
Funding  Source,  such amounts charged to such Funding Source or such amounts to
otherwise  compensate  such  Funding  Source  for  such  increased  cost or such
reduction.

Section 10.3 Other Costs and Expenses. Seller shall pay to the Agent and Company
on demand all reasonable out-of-pocket costs and 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, including without limitation, the cost of Company's auditors auditing
the books,  records and procedures of Seller,  reasonable fees and out-of-pocket
expenses of legal  counsel for  Company and the Agent with  respect  thereto and
with respect to advising Company and the Agent as to their respective rights and
remedies under this  Agreement.  Seller shall pay to the Agent on demand any and
all  costs and  expenses  of the Agent  and the  Purchasers,  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 XI
                                    THE AGENT

     Section 11.1 Authorization and Action. Each Purchaser hereby designates and
appoints Bank One to act as its agent hereunder and under each other Transaction
Document,  and  authorizes the Agent to take such actions as agent on its behalf
and to exercise  such powers as are  delegated to the Agent by the terms of this
Agreement and the other Transaction  Documents  together with such powers as are
reasonably  incidental  thereto.  The  Agent  shall  not  have  any  duties  for
responsibilities,  except  those  expressly  set  forth  herein  or in any other
Transaction Document, or any fiduciary  relationship with any Purchaser,  and no
implied  covenants,   functions,   responsibilities,   duties,   obligations  or
liabilities  on the part of the Agent shall be read into this  Agreement  or any
other  Transaction  Document or otherwise exist for the Agent. In performing its
functions and duties hereunder and under the other  Transaction  Documents,  the
Agent shall act solely as agent for the Purchasers and does not assume nor shall
be deemed to have assumed any obligation or relationship of trust or agency with
or for any Seller Party or any of such Seller Party's successors or assigns. The
Agent  shall  not be  required  to take any  action  that  exposes  the Agent to
personal liability or that is contrary to this Agreement,  any other Transaction
Document or applicable law. The appointment and authority of the Agent hereunder
shall terminate upon the indefeasible  payment in full of all Aggregate Unpaids.
Each  Purchaser  hereby  authorizes  the Agent to  execute  each of the  Uniform
Commercial Code financing statements,  this Agreement and such other Transaction
Documents as may require the Agent's  signature on behalf of such Purchaser (the
terms of which shall be binding on such Purchaser).

Section 11.2 Delegation of Duties. The Agent may execute any of its duties under
this  Agreement  and each other  Transaction  Document  by or through  agents or
attorneys-in-fact  and shall be  entitled  to advice of counsel  concerning  all
matters  pertaining to such duties.  The Agent shall not be responsible  for the
negligence or misconduct of any agents or attorneys-in-fact  selected by it with
reasonable care.

Section 11.3 Exculpatory Provisions. Neither the Agent nor any of its directors,
officers,  agents or employees shall be (i) liable for any action lawfully taken
or omitted to be taken by it or them under or in connection  with this Agreement
or any other  Transaction  Document  (except for its, their or such Person's own
gross  negligence or willful  misconduct),  or (ii) responsible in any manner to
any  of  the  Purchasers  for  any  recitals,  statements,   representations  or
warranties  made by any Seller  Party  contained  in this  Agreement,  any other
Transaction  Document or any  certificate,  report,  statement or other document
referred to or provided for in, or received  under or in connection  with,  this
Agreement,  or any  other  Transaction  Document  or for  the  value,  validity,
effectiveness,  genuineness, enforceability or sufficiency of this Agreement, or
any other  Transaction  Document or any other  document  furnished in connection
herewith or  therewith,  or for any  failure of any Seller  Party to perform its
obligations  hereunder or thereunder,  or for the  satisfaction of any condition
specified in Article VI, or for the perfection,  priority,  condition,  value or
sufficiency of any collateral  pledged in connection  herewith.  The Agent shall
not be under any  obligation  to any  Purchaser to ascertain or to inquire as to
the observance or  performance  of any of the agreements or covenants  contained
in, or conditions of, this Agreement or any other  Transaction  Document,  or to
inspect the properties,  books or records of the Seller Parties. The Agent shall
not  be  deemed  to  have  knowledge  of any  Amortization  Event  or  Potential
Amortization  Event  unless  the  Agent has  received  notice  from  Seller or a
Purchaser.

Section  11.4  Reliance  by Agent.  The Agent  shall in all cases be entitled to
rely, and shall be fully protected in relying, upon any 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,  without limitation, counsel to Seller), independent accountants and
other  experts  selected  by the  Agent.  The Agent  shall in all cases be fully
justified in failing or refusing to take any action under this  Agreement or any
other  Transaction  Document  unless  it shall  first  receive  such  advice  or
concurrence  of Company or the  Required  Financial  Institutions  or all of the
Purchasers,  as  applicable,  as it  deems  appropriate  and it  shall  first be
indemnified  to its  satisfaction  by the  Purchasers,  provided that unless and
until the Agent shall have received  such advice,  the Agent may take or refrain
from  taking  any  action,  as the Agent  shall deem  advisable  and in the best
interests of the Purchasers.  The Agent shall in all cases be fully protected in
acting, or in refraining from acting, in accordance with a request of Company or
the Required Financial Institutions or all of the Purchasers, as applicable, and
such request and any action taken or failure to act  pursuant  thereto  shall be
binding upon all the Purchasers.

Section  11.5  Non-Reliance  on  Agent  and  Other  Purchasers.  Each  Purchaser
expressly  acknowledges  that  neither  the  Agent,  nor  any of  its  officers,
directors,  employees,  agents,  attorneys-in-fact  or  affiliates  has made any
representations  or  warranties  to it and  that no act by the  Agent  hereafter
taken,  including,  without limitation,  any review of the affairs of any Seller
Party,  shall be deemed to  constitute  any  representation  or  warranty by the
Agent. Each Purchaser represents and warrants to the Agent that it has and will,
independently  and without  reliance  upon the Agent or any other  Purchaser and
based on such documents and information as it has deemed  appropriate,  made its
own  appraisal of and  investigation  into the business,  operations,  property,
prospects,  financial and other  conditions and  creditworthiness  of Seller and
made its own  decision  to enter  into this  Agreement,  the  other  Transaction
Documents and all other documents related hereto or thereto.

Section 11.6 Reimbursement and Indemnification. The Financial Institutions agree
to reimburse and indemnify  the Agent and its  officers,  directors,  employees,
representatives  and agents ratably  according to their Pro Rata Shares,  to the
extent not paid or  reimbursed  by the Seller  Parties  (i) for any  amounts for
which the Agent,  acting in its capacity as Agent, is entitled to  reimbursement
by the Seller Parties  hereunder and (ii) for any other expenses incurred by the
Agent,  in its  capacity  as Agent and  acting on behalf of the  Purchasers,  in
connection  with the  administration  and  enforcement of this Agreement and the
other Transaction Documents.

Section 11.7 Agent in its Individual Capacity.  The Agent and its Affiliates may
make loans to, accept deposits from and generally engage in any kind of business
with  Seller or any  Affiliate  of Seller as though the Agent were not the Agent
hereunder.  With respect to the acquisition of Purchaser  Interests  pursuant to
this  Agreement,  the Agent  shall have the same  rights  and powers  under this
Agreement in its individual  capacity as any Purchaser and may exercise the same
as  though  it  were  not the  Agent,  and the  terms  "Financial  Institution,"
"Purchaser,"  "Financial  Institutions" and "Purchasers" shall include the Agent
in its individual capacity.

Section 11.8 Successor  Agent.  The Agent may, upon fifteen (15) days' notice to
Seller and the Purchasers,  and the Agent will, upon the direction of all of the
Purchasers  (other than the Agent, in its individual  capacity) resign as Agent.
If the Agent shall resign, then the Required Financial  Institutions during such
fifteen-day period shall appoint from among the Purchasers a successor agent. If
for any  reason  no  successor  Agent is  appointed  by the  Required  Financial
Institutions during such fifteen-day period, then effective upon the termination
of such fifteen day period,  the  Purchasers  shall perform all of the duties of
the Agent hereunder and under the other Transaction Documents and Seller and the
Servicer (as  applicable)  shall make all  payments in respect of the  Aggregate
Unpaids  directly to the  applicable  Purchasers and for all purposes shall deal
directly with the Purchasers.  After the  effectiveness  of any retiring Agent's
resignation  hereunder as Agent, the retiring Agent shall be discharged from its
duties and obligations  hereunder and under the other Transaction  Documents and
the provisions of this Article XI and Article X shall continue in effect for its
benefit with respect to any actions  taken or omitted to be taken by it while it
was Agent under this Agreement and under the other Transaction Documents.

ARTICLE XII
                           ASSIGNMENTS; PARTICIPATIONS

Section 12.1      Assignments.

(a)  Seller  and each  Financial  Institution  hereby  agree and  consent to the
complete  or partial  assignment  by Company of all or any portion of its rights
under,  interest  in,  title to and  obligations  under  this  Agreement  to the
Financial  Institutions pursuant to Section 13.1, or, with the consent of Seller
(which consent shall not be  unreasonably  withheld),  to any other Person,  and
upon  such  assignment,  Company  shall  be  released  from its  obligations  so
assigned.  Further,  Seller and each Financial Institution hereby agree that any
assignee of Company of this  Agreement or all or any of the Purchaser  Interests
of Company shall have all of the rights and benefits  under this Agreement as if
the term "Company"  explicitly  referred to such party,  and no such  assignment
shall in any way impair the rights and  benefits of Company  hereunder.  Neither
Seller nor the Servicer shall have the right to assign its rights or obligations
under this Agreement.

(b) Any  Financial  Institution  may at any time and from time to time assign to
one or more Persons ("Purchasing Financial Institutions") all or any part of its
rights and obligations under this Agreement pursuant to an assignment agreement,
substantially  in the form set forth in  Exhibit  VII  hereto  (the  "Assignment
Agreement") executed by such Purchasing  Financial  Institution and such selling
Financial  Institution.  The consent of Company  shall be required  prior to the
effectiveness of any such assignment.  Each assignee of a Financial  Institution
must  (i) have a  short-term  debt  rating  of A-1 or  better  by S&P and P-1 by
Moody's and (ii) agree to deliver to the Agent,  promptly  following any request
therefor  by the  Agent  or  Company,  an  enforceability  opinion  in form  and
substance  satisfactory to the Agent and Company.  Upon delivery of the executed
Assignment  Agreement to the Agent, such selling Financial  Institution shall be
released  from its  obligations  hereunder  to the  extent  of such  assignment.
Thereafter  the  Purchasing  Financial  Institution  shall for all purposes be a
Financial  Institution party to this Agreement and shall have all the rights and
obligations of a Financial  Institution  under this Agreement to the same extent
as if it were an  original  party  hereto  and no  further  consent or action by
Seller, the Purchasers or the Agent shall be required.

(c) Each of the  Financial  Institutions  agrees that in the event that it shall
cease  to have a  short-term  debt  rating  of A-1 or  better  by S&P and P-1 by
Moody's  (an  "Affected   Financial   Institution"),   such  Affected  Financial
Institution shall be obliged,  at the request of Company or the Agent, to assign
all of its rights and obligations hereunder to (x) another Financial Institution
or (y) another funding entity  nominated by the Agent and acceptable to Company,
and willing to participate in this Agreement  through the Liquidity  Termination
Date in the place of such  Affected  Financial  Institution;  provided  that the
Affected  Financial  Institution  receives  payment  in  full,  pursuant  to  an
Assignment  Agreement,  of an amount equal to such Financial  Institution's  Pro
Rata  Share  of  the  Aggregate   Capital  and  Yield  owing  to  the  Financial
Institutions  and all  accrued  but  unpaid  fees and other  costs and  expenses
payable  in  respect of its Pro Rata  Share of the  Purchaser  Interests  of the
Financial Institutions.

Section 12.2  Participations.  Any  Financial  Institution  may, in the ordinary
course  of its  business  at any  time  sell  to one or  more  Persons  (each  a
"Participant")  participating  interests in its Pro Rata Share of the  Purchaser
Interests  of the  Financial  Institutions,  its  obligation  to pay Company its
Acquisition  Amounts  or  any  other  interest  of  such  Financial  Institution
hereunder.  Notwithstanding  any  such  sale  by a  Financial  Institution  of a
participating interest to a Participant, such Financial Institution's rights and
obligations  under  this  Agreement  shall  remain  unchanged,   such  Financial
Institution  shall  remain  solely   responsible  for  the  performance  of  its
obligations hereunder,  and Seller, Company and the Agent shall continue to deal
solely and directly with such  Financial  Institution  in  connection  with such
Financial  Institution's  rights  and  obligations  under this  Agreement.  Each
Financial   Institution   agrees  that  any  agreement  between  such  Financial
Institution and any such Participant in respect of such  participating  interest
shall not restrict such Financial Institution's right to agree to any amendment,
supplement,  waiver or modification to this Agreement, except for any amendment,
supplement, waiver or modification described in Section 14.1(b)(i).

ARTICLE XIII
                               LIQUIDITY FACILITY

Section 13.1  Transfer to Financial  Institutions.  Each  Financial  Institution
hereby agrees,  subject to Section 13.4,  that  immediately  upon written notice
from Company  delivered on or prior to the Liquidity  Termination Date, it shall
acquire by assignment from Company,  without recourse or warranty,  its Pro Rata
Share of one or more of the  Purchaser  Interests  of  Company as  specified  by
Company. Each such assignment by Company shall be made pro rata among all of the
Financial Institutions,  except for pro rata assignments to one or more Affected
Financial Institutions pursuant to Section 13.6. Each such Financial Institution
shall,  no later than 1:00 p.m.  (Chicago time) on the date of such  assignment,
pay in immediately  available funds (unless another form of payment is otherwise
agreed between Company and any Financial Institution) to the Agent at an account
designated by the Agent,  for the benefit of Company,  its  Acquisition  Amount.
Unless a Financial Institution has notified the Agent that it does not intend to
pay its Acquisition Amount, the Agent may assume that such payment has been made
and may,  but  shall  not be  obligated  to,  make the  amount  of such  payment
available to Company in reliance upon such assumption.  Company hereby sells and
assigns to the Agent for the ratable benefit of the Financial Institutions,  and
the Agent hereby purchases and assumes from Company,  effective upon the receipt
by Company of the Company  Transfer  Price,  the Purchaser  Interests of Company
which are the subject of any transfer pursuant to this Article XIII.

Section 13.2 Transfer Price Reduction Yield. If the Adjusted  Liquidity Price is
included in the  calculation  of the Company  Transfer  Price for any  Purchaser
Interest,  each Financial Institution agrees that the Agent shall pay to Company
the Reduction Percentage of any Yield received by the Agent with respect to such
Purchaser Interest.

Section 13.3  Payments to Company.  In  consideration  for the  reduction of the
Company Transfer Prices by the Company Transfer Price Reductions, effective only
at such time as the aggregate  amount of the Capital of the Purchaser  Interests
of the  Financial  Institutions  equals the  Company  Residual,  each  Financial
Institution  hereby agrees that the Agent shall not  distribute to the Financial
Institutions and shall  immediately  remit to Company any Yield,  Collections or
other  payments  received by it to be applied  pursuant  to the terms  hereof or
otherwise  to reduce the Capital of the  Purchaser  Interests  of the  Financial
Institutions.

Section 13.4 Limitation on Commitment to Purchase from Company.  Notwithstanding
anything to the contrary in this Agreement,  no Financial Institution shall have
any  obligation  to purchase any Purchaser  Interest  from Company,  pursuant to
Section 13.1 or otherwise:

(i)      if Company shall have voluntarily commenced any proceeding or filed any
         petition  under any  bankruptcy,  insolvency or similar law seeking the
         dissolution,  liquidation  or  reorganization  of  Company or taken any
         corporate action for the purpose of effectuating any of the foregoing;

(ii)     if involuntary  proceedings or an involuntary  petition shall have been
         commenced or filed against  Company by any Person under any bankruptcy,
         insolvency  or similar  law  seeking the  dissolution,  liquidation  or
         reorganization  of Company and such  proceeding or petition  shall have
         not been dismissed; or

(iii)    to the  extent  that  such  purchase  would  cause the  Capital  of the
         Purchaser  Interests  of such  Financial  Institution  to  exceed  such
         Financial Institution's Liquidity Commitment.

Section  13.5  Defaulting  Financial  Institutions.  If  one or  more  Financial
Institutions  defaults in its obligation to pay its Acquisition  Amount pursuant
to Section 13.1 (each such Financial  Institution  shall be called a "Defaulting
Financial  Institution" and the aggregate  amount of such defaulted  obligations
being herein called the "Company Transfer Price Deficit"), then upon notice from
the  Agent,  each  Financial  Institution  other than the  Defaulting  Financial
Institutions (a "Non-Defaulting  Financial  Institution")  shall promptly pay to
the Agent, in immediately  available funds, an amount equal to the lesser of (x)
such Non-Defaulting Financial Institution's  proportionate share (based upon the
relative Liquidity Commitments of the Non-Defaulting  Financial Institutions) of
the  Company  Transfer  Price  Deficit  and (y)  such  Non-Defaulting  Financial
Institution's Unused Liquidity  Commitment.  A Defaulting Financial  Institution
shall   forthwith  upon  demand  pay  to  the  Agent  for  the  account  of  the
Non-Defaulting  Financial  Institutions all amounts paid by each  Non-Defaulting
Financial  Institution  on  behalf  of such  Defaulting  Financial  Institution,
together with interest thereon, for each day from the date a payment was made by
a  Non-Defaulting  Financial  Institution  until  the date  such  Non-Defaulting
Financial  Institution  has been paid such amounts in full,  at a rate per annum
equal to the Federal  Funds  Effective  Rate plus two percent (2%). In addition,
without  prejudice to any other  rights that  Company may have under  applicable
law, each Defaulting  Financial  Institution shall pay to Company forthwith upon
demand, the difference between such Defaulting  Financial  Institution's  unpaid
Acquisition   Amount  and  the  amount   paid  with   respect   thereto  by  the
Non-Defaulting Financial Institutions,  together with interest thereon, for each
day  from  the  date  of the  Agent's  request  for  such  Defaulting  Financial
Institution's  Acquisition  Amount  pursuant to Section  13.1 until the date the
requisite  amount is paid to Company in full,  at a rate per annum  equal to the
Federal Funds Effective Rate plus two percent (2%).

Section 13.6      Terminating Financial Institutions

(a) Each Financial  Institution  hereby agrees to deliver  written notice to the
Agent not more than 30 Business  Days and not less than 5 Business Days prior to
the Liquidity  Termination  Date indicating  whether such Financial  Institution
intends to renew its Back-up Commitment and Liquidity Commitment  hereunder.  If
any Financial  Institution  fails to deliver such notice on or prior to the date
that is 5 Business Days prior to the Liquidity  Termination Date, such Financial
Institution will be deemed to have declined to renew its Back-up  Commitment and
Liquidity Commitment (each Financial  Institution which has declined or has been
deemed to have declined to renew its Back-up Commitment and Liquidity Commitment
hereunder,  a "Non-Renewing  Financial  Institution").  The Agent shall promptly
notify Company of each Non-Renewing  Financial  Institution and Company,  in its
sole discretion, may (A) to the extent of Commitment Availability,  declare that
such  Non-Renewing  Financial  Institution's  Back-up  Commitment  and Liquidity
Commitment shall, to such extent, automatically terminate on a date specified by
Company on or before the Liquidity Termination Date or (B) upon one (1) Business
Days' notice to the Financial Institutions, assign to each Financial Institution
on a date  specified by Company such Financial  Institution's  Pro Rata Share of
the  aggregate  Purchaser  Interests  then held by  Company,  subject to, and in
accordance with, Section 13.1 and Section 13.4. In addition, Company may, in its
sole  discretion,  at any time (x) to the  extent  of  Commitment  Availability,
declare  that  any  Affected  Financial  Institution's  Back-up  Commitment  and
Liquidity  Commitment  shall  automatically  terminate  on a date  specified  by
Company or (y) assign to any Affected Financial  Institution on a date specified
by Company its Pro Rata Share of the aggregate  Purchaser Interests then held by
Company, subject to, and in accordance with, Section 13.1 and Section 13.4 (each
Affected  Financial  Institution or each Non-Renewing  Financial  Institution is
hereinafter referred to as a "Terminating Financial  Institution").  The parties
hereto  expressly  acknowledge  that any  declaration of the  termination of any
Back-up  Commitment and Liquidity  Commitment,  any assignment  pursuant to this
Section  13.6 and the order of priority of any such  termination  or  assignment
among Terminating  Financial  Institutions  shall be made by Company in its sole
and absolute discretion.

(b) Upon any assignment to an Affected Financial Institution as provided in this
Section 13.6, any remaining Back-up Commitment and Liquidity  Commitment of such
Affected Financial Institution shall automatically terminate.  Upon reduction to
zero of the Capital of all of the Purchaser Interests of a Terminating Financial
Institution (after  application of Collections  thereto pursuant to Sections 2.2
and 2.3) all rights and obligations of such  Terminating  Financial  Institution
hereunder shall be terminated and such Terminating  Financial  Institution shall
no longer be a "Financial  Institution" hereunder;  provided,  however, that the
provisions of Article X shall continue in effect for its benefit with respect to
Purchaser Interests held by such Terminating  Financial Institution prior to its
termination as a Financial Institution.

ARTICLE XIV
                                  MISCELLANEOUS

Section  14.1  Waivers  and  Amendments.  No failure or delay on the part of the
Agent or any  Purchaser  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.

(a) No provision of this  Agreement  may be amended,  supplemented,  modified or
waived  except in writing in  accordance  with the  provisions  of this  Section
14.1(b).  Company,  Seller  and the  Agent,  at the  direction  of the  Required
Financial  Institutions,  may enter into written modifications or waivers of any
provisions of this Agreement,  provided,  however,  that no such modification or
waiver shall:

     (i)  without  the  consent  of each  affected  Purchaser,  (A)  extend  the
Liquidity  Termination Date or the date of any payment or deposit of Collections
by Seller or the Servicer,  (B) reduce the rate or extend the time of payment of
Yield or any CP Costs (or any  component  of Yield or CP Costs),  (C) reduce any
fee payable to the Agent for the benefit of the Purchasers,  (D) except pursuant
to Article XII hereof,  change the amount of the Capital of any  Purchaser,  any
Financial Institution's

     Back-up Pro Rata Share or Pro Rata Share (except  pursuant to Sections 13.1
or  13.5)  or  any  Financial  Institution's  Back-up  Commitment  or  Liquidity
Commitment,  or require any Financial  Institution to make purchases from Seller
in excess of its Back-up  Commitment or to make purchases from Company in excess
of its  Liquidity  Commitment,  (E) amend,  modify or waive any provision of the
definition  of Required  Financial  Institutions,  Section  13.4 or this Section
14.1(b), (F) consent to or permit the assignment or transfer by Seller of any of
its rights and obligations  under this  Agreement,  (G) change the definition of
"Facility Termination Date",  "Eligible  Receivable",  "Loss Reserve",  "Default
Proxy Ratio", "Delinquency Ratio", "Delinquent Receivable",  "Dilution Reserve",
"Dilution  Reserve  Ratio",  "Dilution  Trigger Ratio",  "Loss  Reserve",  "Loss
Reserve Ratio", "Loss-to-Liquidation Ratio", or "Yield Reserve", or (H) amend or
modify any defined term (or any defined term used directly or indirectly in such
defined  term)  used in clauses  (A)  through  (G) above in a manner  that would
circumvent the intention of the restrictions set forth in such clauses; or

(ii)     without the written consent of the then Agent,  amend,  modify or waive
         any provision of this  Agreement if the effect thereof is to affect the
         rights or duties of such Agent.

Notwithstanding  the  foregoing,  (i)  without  the  consent  of  the  Financial
Institutions, but with the consent of Seller, the Agent may amend this Agreement
solely to add additional  Persons as Financial  Institutions  hereunder and (ii)
the Agent,  the  Required  Financial  Institutions  and  Company  may enter into
amendments to modify any of the terms or provisions of Article XI,  Article XII,
Section 14.13 or any other  provision of this  Agreement  without the consent of
Seller,  provided that such  amendment has no negative  impact upon Seller.  Any
modification  or waiver made in accordance with this Section 14.1 shall apply to
each of the Purchasers  equally and shall be binding upon Seller, the Purchasers
and the Agent.

Section  14.2   Notices.   Except  as  provided  in  this  Section   14.2,   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 14.2. Seller hereby authorizes the Agent to effect purchases and Tranche
Period and Discount  Rate  selections  based on  telephonic  notices made by any
Person  whom the Agent in good faith  believes to be acting on behalf of Seller.
Seller agrees to deliver  promptly to the Agent a written  confirmation  of each
telephonic notice signed by an authorized officer of Seller; provided,  however,
the absence of such  confirmation  shall not affect the validity of such notice.
If the written  confirmation  differs  from the action  taken by the Agent,  the
records of the Agent shall govern absent manifest error.

Section 14.3 Ratable Payments. If any Purchaser, whether by setoff or otherwise,
has  payment  made to it with  respect to any portion of the  Aggregate  Unpaids
owing to such Purchaser (other than payments  received  pursuant to Section 10.2
or 10.3) in a greater  proportion  than  that  received  by any other  Purchaser
entitled to receive a ratable share of such  Aggregate  Unpaids,  such Purchaser
agrees,  promptly upon demand, to purchase for cash without recourse or warranty
a portion of such Aggregate  Unpaids held by the other  Purchasers so that after
such purchase each Purchaser will hold its ratable  proportion of such Aggregate
Unpaids; provided that if all or any portion of such excess amount is thereafter
recovered from such Purchaser, such purchase shall be rescinded and the purchase
price restored to the extent of such recovery, but without interest.

Section 14.4      Protection of Ownership Interests of the Purchasers.

(a) Seller  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 the Agent may  request,  to  perfect,
protect or more fully evidence the Purchaser  Interests,  or to enable the Agent
or the  Purchasers to exercise and enforce their rights and remedies  hereunder.
At any time after the occurrence of an Amortization Event, the Agent may, or the
Agent may direct Seller or the Servicer to, notify the Obligors of  Receivables,
at Seller's  expense,  of the ownership or security  interests of the Purchasers
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 the Agent or
its designee.  Seller or the Servicer (as applicable)  shall, at any Purchaser's
request, withhold the identity of such Purchaser in any such notification.

(b) If any Seller Party fails to perform any of its obligations  hereunder,  the
Agent or any  Purchaser  may (but shall not be required  to)  perform,  or cause
performance of, such obligations,  and the Agent's or such Purchaser's costs and
expenses incurred in connection therewith shall be payable by Seller as provided
in Section 10.3. Each Seller Party irrevocably  authorizes the Agent at any time
and from time to time in the sole  discretion  of the Agent,  and  appoints  the
Agent as its  attorney-in-fact,  to act on  behalf of such  Seller  Party (i) to
execute on behalf of Seller as debtor and to file financing statements necessary
or  desirable  in the Agent's  sole  discretion  to perfect and to maintain  the
perfection and priority of the interest of the Purchasers 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 the Agent in its sole discretion deems necessary or desirable
to perfect and to maintain the  perfection  and priority of the interests of the
Purchasers in the Receivables.  This appointment is coupled with an interest and
is irrevocable.

Section 14.5      Confidentiality.

(a) Each Seller Party and each Purchaser  shall maintain and shall cause each of
its employees and officers to maintain the confidentiality of this Agreement and
the other confidential or proprietary  information with respect to the Agent and
Company and their  respective  businesses  obtained by it or them in  connection
with the structuring, negotiating and execution of the transactions contemplated
herein,  except that such Seller Party and such  Purchaser  and its officers and
employees  may  disclose  such  information  to such  Seller  Party's  and  such
Purchaser'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,  each Seller Party hereby
consents to the disclosure of any nonpublic  information  with respect to it (i)
to the Agent, the Financial  Institutions or Company by each other,  (ii) by the
Agent or the Purchasers to any  prospective or actual assignee or participant of
any of them and (iii) by the Agent to any rating agency, Commercial Paper dealer
or provider of a surety,  guaranty or credit or liquidity enhancement to Company
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 any Person receiving  information shall be advised
by the  Agent  of the  obligation  to keep  such  information  confidential.  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 Seller in advance prior to disclosure and will use
reasonable efforts to cooperate with Seller at Seller's expense in obtaining any
protective order for such information.

Section 14.6  Bankruptcy  Petition.  Seller,  the  Servicer,  the Agent and each
Financial  Institution  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 Company, it will not institute against, or join any other Person
in   instituting   against,   Company  or  any  such   entity  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 14.7  Limitation of Liability.  Except with respect to any claim arising
out of the willful  misconduct or gross negligence of Company,  the Agent or any
Financial  Institution,  no claim may be made by any  Seller  Party or any other
Person  against  Company,  the  Agent  or any  Financial  Institution  or  their
respective Affiliates,  directors,  officers, employees, attorneys or agents for
any special, indirect, consequential or punitive damages in respect of any claim
for  breach of  contract  or any other  theory of  liability  arising  out of or
related to the transactions contemplated by this Agreement, or any act, omission
or event occurring in connection therewith; and each Seller Party hereby waives,
releases, and agrees not to sue upon any claim for any such damages,  whether or
not accrued and whether or not known or suspected to exist in its favor.

Section 14.8 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 14.9  CONSENT TO  JURISDICTION.  EACH SELLER  PARTY  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 SUCH
PERSON  PURSUANT TO THIS  AGREEMENT  AND EACH SELLER  PARTY  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 THE AGENT OR ANY PURCHASER TO BRING  PROCEEDINGS  AGAINST ANY
SELLER PARTY IN THE COURTS OF ANY OTHER JURISDICTION. ANY JUDICIAL PROCEEDING BY
ANY SELLER  PARTY  AGAINST THE AGENT OR ANY  PURCHASER  OR ANY  AFFILIATE OF THE
AGENT OR ANY PURCHASER INVOLVING,  DIRECTLY OR INDIRECTLY, ANY MATTER IN ANY WAY
ARISING OUT OF,  RELATED TO, OR  CONNECTED  WITH THIS  AGREEMENT OR ANY DOCUMENT
EXECUTED BY SUCH SELLER PARTY PURSUANT TO THIS  AGREEMENT  SHALL BE BROUGHT ONLY
IN A COURT IN CHICAGO, ILLINOIS.

Section  14.10 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 ANY
SELLER  PARTY  PURSUANT  TO  THIS  AGREEMENT  OR  THE  RELATIONSHIP  ESTABLISHED
HEREUNDER OR THEREUNDER.

Section 14.11     Integration; Binding Effect; Survival of Terms.

(a) This  Agreement and each other  Transaction  Document  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 any Seller Party pursuant to
Article V, (ii) the  indemnification  and payment  provisions  of Article X, and
Sections 14.5 and 14.6 shall be continuing and shall survive any  termination of
this Agreement.

Section 14.12 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.

Section 14.13 Bank One Roles.  Each of the Financial  Institutions  acknowledges
that Bank One acts,  or may in the future act, (i) as  administrative  agent for
Company or any Financial  Institution,  (ii) as issuing and paying agent for the
Commercial  Paper,  (iii) to provide  credit or  liquidity  enhancement  for the
timely payment for the Commercial  Paper and (iv) to provide other services from
time to time for Company or any Financial Institution  (collectively,  the "Bank
One  Roles").  Without  limiting the  generality  of this  Section  14.13,  each
Financial  Institution hereby  acknowledges and consents to any and all Bank One
Roles and agrees that in connection  with any Bank One Role,  Bank One may take,
or  refrain  from  taking,  any  action  that  it,  in  its  discretion,   deems
appropriate,  including, without limitation, in its role as administrative agent
for  Company,  and the  giving of notice  to the Agent of a  mandatory  purchase
pursuant to Section 13.1.

Section 14.14  Characterization.  (a) It is the intention of the parties  hereto
that each purchase  hereunder shall constitute and be treated as an absolute and
irrevocable sale, which purchase shall provide the applicable Purchaser with the
full  benefits of  ownership of the  applicable  Purchaser  Interest.  Except as
specifically  provided  in this  Agreement,  each sale of a  Purchaser  Interest
hereunder is made without recourse to Seller; provided, however, that (i) Seller
shall  be  liable  to each  Purchaser  and the  Agent  for all  representations,
warranties,  covenants and  indemnities  made by Seller pursuant to the terms of
this  Agreement,  and (ii) such sale does not  constitute and is not intended to
result in an assumption by any Purchaser or the Agent or any assignee thereof of
any obligation of Seller or Originator or any other person arising in connection
with the Receivables,  the Related Security,  or the related  Contracts,  or any
other obligations of Seller or Originator.

(b) In addition to any ownership  interest which the Agent may from time to time
acquire  pursuant  hereto,  Seller  hereby  grants to the Agent for the  ratable
benefit of the  Purchasers  a valid and  perfected  security  interest in all of
Seller's right, title and interest in, to and under all Receivables now existing
or hereafter arising, the Collections,  each Lock-Box,  each Collection Account,
all  Related   Security,   all  other  rights  and  payments  relating  to  such
Receivables,  and all  proceeds of any  thereof  prior to all other liens on and
security  interests  therein to secure the  prompt and  complete  payment of the
Aggregate  Unpaids.  The Agent and the Purchasers shall have, in addition to the
rights and remedies  that they may have under this  Agreement,  all other rights
and remedies  provided to a secured  creditor under the UCC and other applicable
law, which rights and remedies shall be cumulative.

                                                       [SIGNATURE PAGES FOLLOW]

<PAGE>

                                                  Signature Page 5
                                                  Signature Page 1

<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 Receivables Corporation

                                       By:
                                      Name:
                                     Title:

                                    Address:

                                  Anixter Inc.

                                       By:
                                      Name:
                                     Title:

                                    Address:

<PAGE>

                     Falcon Asset Securitization Corporation

                                       By:
                              Authorized Signatory

                       Address: c/o Bank One, NA, as Agent
                              Asset Backed Finance
                              Suite IL1-0079, 1-19
                                1 Bank One Plaza
                          Chicago, Illinois 60670-0079

                               FAX: (312) 732-1844

<PAGE>

              Bank One, NA, as a Financial Institution and as Agent

                                       By:
                                      Name:
                                     Title:

                              Address: Bank One, NA
                              Asset Backed Finance
                              Suite IL1-0596, 1-21
                                1 Bank One Plaza
                          Chicago, Illinois 60670-0596

                               Fax: (312) 732-4487

<PAGE>

                               Lloyds TSB Bank plc

                                       By:
                                      Name:
                                     Title:
                                    Address:

                                      Fax:

<PAGE>

                                 Danske Bank A/S

                                       By:
                                      Name:
                                     Title:
                                    Address:

                                      Fax:

<PAGE>

                                    Exh. I-19
                                    EXHIBIT I
                                   DEFINITIONS

         As used in this Agreement, the following terms shall have the following
meanings (such meanings to be equally applicable to both the singular and plural
forms of the terms defined):

         "Accrual  Period" means each calendar month,  provided that the initial
Accrual Period  hereunder  means the period from (and including) the date of the
initial purchase hereunder to (and including) the last day of the calendar month
thereafter.

         "Acquisition Amount" means, on the date of any purchase from Company of
one or more Purchaser  Interests  pursuant to Section 13.1, with respect to each
Financial Institution,  the lesser of (a) such Financial  Institution's Pro Rata
Share of the sum of (i) the lesser of (A) the Adjusted  Liquidity  Price of each
such Purchaser  Interest and (B) the Capital of each such Purchaser Interest and
(ii) all accrued and unpaid CP Costs for each such  Purchaser  Interest  and (b)
such Financial Institution's Unused Liquidity Commitment.

         "Adjusted Liquidity Price" means an amount equal to:

                        [OBJECT OMITTED][OBJECT OMITTED]

                                     where:

     RI  =  the  undivided  percentage  interest  evidenced  by  such  Purchaser
Interest.

     DC.=........the Deemed Collections.

     NDR = the  Outstanding  Balance of each Receivable as to which any payment,
or part thereof,  has not remained unpaid for 150 days or more from the original
invoice date for such Receivable.

Each of the foregoing  shall be determined  from the most recent  Monthly Report
received from the Servicer.

         "Adverse Claim" means a lien, security interest, charge or encumbrance,
or other right or claim in, of or on any Person's  assets or properties in favor
of any other Person.

         "Affected  Financial  Institution" has the meaning specified in Section
12.1(c).

         "Affiliate"  means,  with  respect  to any  Person,  any  other  Person
directly or indirectly  controlling,  controlled by, or under direct or indirect
common  control with,  such Person or any  Subsidiary  of such Person.  A Person
shall be deemed to control another Person if the controlling  Person owns 20% or
more of any class of voting  securities of the  controlled  Person or possesses,
directly  or  indirectly,  the power to direct  or cause  the  direction  of the
management or policies of the controlled  Person,  whether through  ownership of
stock, by contract or otherwise.

         "Agent" has the meaning set forth in the preamble to this Agreement.

         "Aggregate Capital" means, on any date of determination,  the aggregate
amount of Capital of all Purchaser Interests outstanding on such date.

         "Aggregate Reduction" has the meaning set forth in Section 1.3.

         "Aggregate  Reserves" means, on any date of  determination,  the sum of
the Loss Reserve,  the Servicer  Reserve,  the Yield  Reserve,  and the Dilution
Reserve.

         "Aggregate  Unpaids"  means, at any time, an amount equal to the sum of
all accrued and unpaid fees under the Fee  Letter,  CP Costs,  Yield,  Aggregate
Capital and all other unpaid Obligations (whether due or accrued) at such time.

         "Agreement"  means this Receivables  Purchase  Agreement,  as it may be
amended or modified and in effect from time to time.

         "Amortization Date" means the earliest to occur of (i) the day on which
any of the  conditions  precedent  set forth in Section  6.2 (except for Section
6.2(d)(iii)) are not satisfied,  (ii) the Business Day immediately  prior to the
occurrence of an Amortization Event set forth in Section  9.1(d)(ii),  (iii) the
Business  Day  specified  in a  written  notice  from the  Agent  following  the
occurrence of any other  Amortization  Event,  and (iv) the date which is thirty
(30) days after the Agent's receipt of written notice from Seller that it wishes
to terminate the facility evidenced by this Agreement.

         "Amortization Event" has the meaning set forth in Article IX.

         "Assignment Agreement" has the meaning set forth in Section 12.1(b).

         "Authorized  Officer" means, with respect to any Person, its president,
corporate controller, treasurer or chief financial officer.

         "Back-up  Commitment"  means,  for  each  Financial  Institution,   the
commitment of such Financial  Institution to purchase  Purchaser  Interests from
Seller,  in an amount not to exceed (a) in the  aggregate,  the amount set forth
opposite such Financial  Institution's  name under the Back-up Commitment column
on Schedule A to this  Agreement,  as such amount may be modified in  accordance
with the terms hereof (including, without limitation, any termination of Back-up
and Liquidity  Commitments pursuant to Section 13.6) and (b) with respect to any
individual purchase from the Seller hereunder, the lesser of (i) its Back-up Pro
Rata  Share  of  the  Purchase  Price  therefor  and  (ii)  its  Unused  Back-up
Commitment.

         "Back-up  Pro Rata Share"  means,  for each  Financial  Institution,  a
percentage  equal to (i) the Back-up  Commitment of such Financial  Institution,
divided by (ii) the aggregate amount of all Back-up Commitments of all Financial
Institutions hereunder,  adjusted as necessary to give effect to the application
of the terms of Sections 13.5 or 13.6.

         "Bank  One"  means  Bank One,  NA in its  individual  capacity  and its
successors.

         "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 or
Bank One Corporation from time to time, changing when and as such rate changes.

         "Broken Funding Costs" means (a) for any Purchaser  Interest which: (i)
has  its  Capital  reduced   without   compliance  by  Seller  with  the  notice
requirements hereunder or (ii) does not become subject to an Aggregate Reduction
following  the  delivery  of any  Reduction  Notice or (iii) is  assigned  under
Article  XIII or  terminated  prior  to the  date  on  which  it was  originally
scheduled to end; an amount equal to the excess,  if any, of (A) the CP Costs or
Yield (as  applicable)  that would have  accrued  during  the  remainder  of the
Tranche  Periods or the tranche periods for Commercial  Paper  determined by the
Agent to relate to such  Purchaser  Interest (as  applicable)  subsequent to the
date of such reduction,  assignment or termination (or in respect of clause (ii)
above, the date such Aggregate Reduction was designated to occur pursuant to the
Reduction  Notice) of the Capital of such Purchaser  Interest if such reduction,
assignment or termination had not occurred or such Reduction Notice had not been
delivered,  over  (B)  the sum of (x) to the  extent  all or a  portion  of such
Capital is allocated to another  Purchaser  Interest,  the amount of CP Costs or
Yield  actually  accrued during the remainder of such period on such Capital for
the new Purchaser Interest,  and (y) to the extent such Capital is not allocated
to another Purchaser Interest,  the income, if any, actually received during the
remainder of such period by the holder of such Purchaser Interest from investing
the  portion  of such  Capital  not so  allocated,  and (b) any loss or  expense
incurred by any Purchaser  (including any loss or expense incurred by the reason
of the  liquidation or reemployment of funds acquired by such Purchaser in order
to make any such requested  Incremental Purchase) as a result of any Incremental
Purchase not being made in accordance with a request  therefor under Section 1.2
(whether because of the failure of the conditions precedent with respect to such
Incremental Purchase to be satisfied or for any other reason, other than default
by the relevant  Purchaser).  All Broken  Funding Costs shall be due and payable
hereunder upon demand.

         "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,  and, if the applicable Business
Day relates to any  computation  or payment to be made with  respect to the LIBO
Rate, any day on which dealings in dollar  deposits are carried on in the London
interbank market.

         "Capital"  means with respect to any Purchaser  Interest,  at any time,
(A) the  Purchase  Price of such  Purchaser  Interest,  minus (B) the sum of the
aggregate  amount of Collections and other payments  received by the Agent which
in each case are applied to reduce such Capital in accordance with the terms and
conditions of this  Agreement;  provided that such Capital shall be restored (in
accordance  with Section 2.5) in the amount of any Collections or other payments
so received and applied if at any time the  distribution of such  Collections or
payments are rescinded, returned or refunded for any reason.

         "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 any
Seller Party.

         "Charged-Off  Receivable"  means  a  Receivable:  (i) as to  which  the
Obligor  thereof has taken any action,  or suffered  any event to occur,  of the
type described in Section 9.1(d) (as if references to Seller Party therein refer
to such Obligor);  (ii) as to which the Obligor thereof, if a natural person, is
deceased,  (iii) which,  consistent with the Credit and Collection Policy, would
be written off Seller's books as  uncollectible,  (iv) which has been identified
by Seller as  uncollectible  or (v) as to which any  payment,  or part  thereof,
remains  unpaid  for 120 days or more from the  original  invoice  date for such
Receivable.

         "Collection  Account"  means  each  concentration  account,  depositary
account,  lock-box  account or  similar  account  in which any  Collections  are
collected or deposited and which is listed on Exhibit IV.

         "Collection Account Agreement" means an agreement  substantially in the
form of Exhibit VI among Originator, Seller, the Agent and a Collection Bank.

         "Collection  Bank" means,  at any time, any of the banks holding one or
more Collection Accounts.

         "Collection  Notice" means a notice, in substantially the form of Annex
A to Exhibit VI, from the Agent to a Collection Bank.

         "Collection Period" means each fiscal month of the Seller Parties.

         "Collections"   means,  with  respect  to  any  Receivable,   all  cash
collections  and other cash proceeds in respect of such  Receivable,  including,
without limitation, all yield, Finance Charges or other related amounts accruing
in respect  thereof and all cash  proceeds of Related  Security  with respect to
such Receivable.

         "Commercial  Paper" means promissory notes of Company issued by Company
in the commercial paper market.

         "Commitment Availability" means at any time the positive difference (if
any)  between  (a) an  amount  equal  to the  aggregate  amount  of the  Back-up
Commitments at such time minus (b) the Aggregate Capital at such time.

         "Company" has the meaning set forth in the preamble to this Agreement.

         "Company Residual" means the sum of the Company Transfer Price
Reductions.

         "Company  Transfer  Price"  means,  with respect to the  assignment  by
Company of one or more  Purchaser  Interests to the Agent for the benefit of one
or more of the Financial  Institutions  pursuant to Section 13.1, the sum of (i)
the  lesser of (a) the  Capital  of each  such  Purchaser  Interest  and (b) the
Adjusted  Liquidity  Price of each such Purchaser  Interest and (ii) all accrued
and unpaid CP Costs for each such Purchaser Interest.

         "Company  Transfer  Price Deficit" has the meaning set forth in Section
13.5.

         "Company  Transfer  Price  Reduction"  means  in  connection  with  the
assignment  of a  Purchaser  Interest by Company to the Agent for the benefit of
the Financial  Institutions,  the positive  difference  (if any) between (i) the
Capital of such  Purchaser  Interest and (ii) the Adjusted  Liquidity  Price for
such Purchaser Interest.

         "Contingent   Obligation"  means,  with  respect  to  any  Person,  any
agreement,  undertaking or arrangement by which such Person assumes, guarantees,
endorses,  contingently  agrees to purchase or provide funds for the payment of,
or otherwise becomes or is contingently liable upon, the obligation or liability
of any other Person,  or agrees to maintain the net worth or working  capital or
other financial condition of any other Person, or otherwise assures any creditor
of such other Person against loss,  including,  without limitation,  any comfort
letter, operating agreement, take-or-pay contract or application for a letter of
credit.

         "Contract"  means,  with  respect  to  any  Receivable,   any  and  all
instruments,  agreements,  invoices  or other  writings  pursuant  to which such
Receivable arises or which evidences such Receivable.

         "CP  Costs"  means,  for each  day,  the sum of (i)  discount  or yield
accrued on Pooled  Commercial  Paper on such day,  plus (ii) any and all accrued
commissions  in respect of placement  agents and Commercial  Paper dealers,  and
issuing and paying  agent fees  incurred,  in respect of such Pooled  Commercial
Paper for such day,  plus (iii) other costs  associated  with  funding  small or
odd-lot  amounts with respect to all receivable  purchase  facilities  which are
funded by Pooled Commercial Paper for such day, minus (iv) any accrual of income
net of expenses  received on such day from  investment of  collections  received
under all  receivable  purchase  facilities  funded  substantially  with  Pooled
Commercial Paper,  minus (v) any payment received on such day net of expenses in
respect of Broken  Funding  Costs  related to the  prepayment  of any  Purchaser
Interest of Company pursuant to the terms of any receivable  purchase facilities
funded  substantially with Pooled Commercial Paper. In addition to the foregoing
costs,  if Seller shall request any  Incremental  Purchase  during any period of
time determined by the Agent in its sole  discretion to result in  incrementally
higher CP Costs applicable to such Incremental Purchase,  the Capital associated
with any such Incremental  Purchase shall,  during such period,  be deemed to be
funded by Company in a special pool (which may include  capital  associated with
other  receivable   purchase   facilities)  for  purposes  of  determining  such
additional  CP Costs  applicable  only to such special pool and charged each day
during such period against such Capital.

         "Credit  Agreement"  means that certain  Credit  Agreement  dated as of
October 6, 2000 by and among Anixter,  the Subsidiaries of Anixter identified as
Borrowing Subsidiaries  thereunder,  Bank One, as Syndication Agent, The Bank of
Nova  Scotia,   as  Documentation   Agent,   and  Bank  of  America,   N.A.,  as
Administrative  Agent,  and the  lenders  party  thereto  from time to time,  as
amended, supplemented or otherwise modified from time to time.

         "Credit and  Collection  Policy" means  Seller's  credit and collection
policies and  practices  relating to Contracts and  Receivables  existing on the
date hereof and  summarized  in Exhibit  VIII,  as modified from time to time in
accordance with this Agreement.

         "Deemed  Collections"  means the aggregate of all amounts  Seller shall
have been deemed to have received as a Collection of a Receivable.  Seller shall
be deemed to have  received a Collection  in full of a Receivable if at any time
(i) the  Outstanding  Balance of any such  Receivable is either (x) reduced as a
result of any  defective  or rejected  goods or  services,  any  discount or any
adjustment or otherwise by Seller (other than cash Collections on account of the
Receivables)  or (y)  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 (ii) any of the  representations or
warranties in Article V are no longer true with respect to any Receivable.

         "Default  Fee"  means with  respect  to any  amount due and  payable by
Seller in respect of any Aggregate  Unpaids,  an amount equal to interest on any
such  unpaid  Aggregate  Unpaids at a rate per annum  equal to 2% above the Base
Rate.

         "Default  Proxy Ratio" means,  for any  Collection  Period,  a fraction
(calculated as a percentage) equal to (i) the aggregate  Outstanding  Balance of
all  Receivables  (without  duplication)  which,  as of the  last  day  of  such
Collection Period,  remain unpaid for at least one hundred twenty (120) but less
than one  hundred  fifty  (150)  days from the  original  invoice  date plus the
aggregate  Outstanding Balance of all Receivables  (without  duplication) which,
consistent  with the  Credit and  Collection  Policy,  were or should  have been
written off the Seller's  books as  uncollectible  and are less than one hundred
twenty  (120) days past  invoice  date during such  period,  divided by (ii) the
aggregate Outstanding Balance of all Receivables generated during the Collection
Period  which  ended on the date  four (4)  months  prior to the last day of the
current Collection Period.

         "Defaulting Financial Institution" has the meaning set forth in Section
13.5.

         "Delinquency  Ratio" means, at any time, a percentage  equal to (i) the
aggregate   Outstanding   Balance  of  all  Receivables   that  were  Delinquent
Receivables  at such time divided by (ii) the aggregate  Outstanding  Balance of
all Receivables at such time.

         "Delinquent  Receivable" means a Receivable as to which any payment, or
part thereof,  remains unpaid for 91 days or more from the original invoice date
for such Receivable.

         "Determination Date" means the third Business Day prior to each Monthly
Settlement Date.

         "Dilution Horizon Ratio" means, as of any date as set forth in the most
recent  Monthly  Report,  a ratio  computed by dividing (i) the aggregate of all
Receivables  generated during the two (2) most recently ended Collection Periods
by (ii) the aggregate  Outstanding  Balance of non-Delinquent  Receivables as at
the last day of the most recently ended Collection Period.

         "Dilution Ratio" means, for any Collection Period, the ratio (expressed
as a  percentage)  computed  as of the last  day of such  Collection  Period  by
dividing (i) the aggregate amount of Dilutions during such Collection  Period by
(ii) the aggregate  Outstanding Balance of all Receivables  generated during the
preceding Collection Period.

         "Dilution  Reserve"  means,  on any date,  an  amount  equal to (x) the
Dilution  Reserve Ratio then in effect times (y) the Net Receivables  Balance as
of the close of business on the immediately preceding Business Day.

         "Dilution Reserve Ratio" means, as of any date, an amount calculated as
follows:

     DRR = [(2.0 x ADR) + [(HDR-ADR) x (HDR/ADR)]] x DHR

     where:...

     DRR = the Dilution Reserve Ratio;

     ADR = the average of the  Dilution  Ratios for the past  twelve  Collection
           Periods;

     HDR = the  highest  average  Dilution  Ratio  for any  two (2)  consecutive
           Collection Periods during the most recent twelve months; and

     DHR = the Dilution Horizon Ratio.

     The  Dilution  Reserve  Ratio shall be  calculated  monthly in each Monthly
Report  and such  Dilution  Reserve  Ratio  shall,  absent  manifest  error,  be
effective  from  the  corresponding  Monthly  Settlement  Date  until  the  next
succeeding Monthly Settlement Date.

         "Dilutions"  means, at any time, the aggregate  amount of reductions or
cancellations described in clause (i) of the definition of "Deemed Collections".

         "Dilution Trigger Ratio" means, as of the end of any Collection Period,
the  ratio  (expressed  as a  percentage),  computed  as of the last day of such
Collection  Period by dividing (i) the aggregate amount of Dilutions during such
Collection Period by (ii) the aggregate  Outstanding  Balance of all Receivables
at the end of such Collection Period minus the aggregate  outstanding  amount of
all credit  memos from  Originators  outstanding  at the end of such  Collection
Period.

         "Discount  Rate" means,  the LIBO Rate or the Base Rate, as applicable,
with respect to each Purchaser Interest of the Financial Institutions.

         "Eligible Receivable" means, at any time, a Receivable:

(i)      the  Obligor of which (a) if a natural  person,  is a  resident  of the
         United States or, if a corporation or other business  organization,  is
         organized  under  the  laws  of the  United  States  or  any  political
         subdivision  thereof and has its chief  executive  office in the United
         States;  (b) is not an Affiliate of any of the parties hereto;  and (c)
         is not a government or a governmental subdivision or agency;

(ii)     due from an  Obligor  that is the  Obligor  on  another  Receivable  or
         Receivables,  and the Outstanding  Balance of all Receivables from such
         Obligor  which  are  Charged-Off  Receivables  is less  than 20% of the
         Outstanding Balance of all Receivables from such Obligor;

(iii)    which is not a Charged-Off Receivable or a Delinquent Receivable;

(iv)     which by its terms is due and payable  within 90 days of the  original
         billing date therefor and has not had its payment terms extended;

(v)      which is "an  "account"  within the meaning of Section 9-106 of the UCC
         of all applicable  jurisdictions,  and which  represents all or part of
         the sales  price of  merchandise,  insurance  and  services  within the
         meaning of Section  3(c)(5) of the  Investment  Company Act of 1940, as
         amended;

(vi)     which is denominated and payable only in United States dollars in the
         United States;

(vii)    which arises under a Contract in  substantially  the form of one of the
         form contracts set forth on Exhibit IX hereto or otherwise  approved by
         the Agent in writing, which, together with such Receivable,  is in full
         force  and  effect  and  constitutes  the  legal,   valid  and  binding
         obligation of the related Obligor  enforceable  against such Obligor in
         accordance with its terms;

(viii)   which  arises  under a Contract  which (A) does not require the Obligor
         under such Contract to consent to the  transfer,  sale or assignment of
         the rights and duties of Originator or any of its assignees  under such
         Contract  (unless  such  consent  has been  obtained)  and (B) does not
         contain a  confidentiality  provision  that  purports to  restrict  the
         ability of any  Purchaser to exercise its rights under this  Agreement,
         including, without limitation, its right to review the Contract;

(ix)     which  arises under a Contract  that  contains an  obligation  to pay a
         specified sum of money,  contingent  only upon the sale of goods or the
         provision of services by Originator;

(x)      which,  together with the Contract related thereto, does not contravene
         any law,  rule or regulation  applicable  thereto  (including,  without
         limitation,  any law, rule and regulation relating to truth in lending,
         fair credit billing,  fair credit reporting,  equal credit opportunity,
         fair debt  collection  practices and privacy) and with respect to which
         no part of the  Contract  related  thereto is in  violation of any such
         law, rule or regulation;

(xi)     which satisfies all applicable requirements of the Credit and
         Collection Policy;

(xii)    which was generated in the ordinary course of Originator's business;

(xiii)   which arises solely from the sale of goods or the provision of services
         to the related  Obligor by Originator,  and not by any other Person (in
         whole or in part);

(xiv)    as to which  the  Agent  has not  notified  Seller  that the  Agent has
         determined  that  such  Receivable  or  class  of  Receivables  is  not
         acceptable as an Eligible  Receivable,  including,  without limitation,
         because such Receivable  arises under a Contract that is not acceptable
         to the Agent; provided,  that Agent shall not determine a Receivable to
         be ineligible pursuant to this clause (xiv) because the Obligor is in a
         particular   industry  if  on  the  date  hereof  the   Originator  has
         outstanding  Receivables  from Obligors in such industry;  and provided
         further,  that Agent shall not  determine a Receivable to be ineligible
         pursuant to this clause  (xiv)  because it is generated by a particular
         type of business of the Originator if the Originator is engaged in such
         type of business on the date hereof.

(xv)     except to the extent (but then only to the  extent)  that it is subject
         to any right of rescission,  set-off,  counterclaim,  any other defense
         (including  defenses  arising out of  violations  of usury laws) of the
         applicable Obligor against Originator or any other Adverse Claim;

(xvi)    due from an Obligor that holds no right as against  Originator to cause
         Originator to  repurchase  the goods or  merchandise  the sale of which
         shall have given rise to such  Receivable  (except with respect to sale
         discounts  effected  pursuant  to  the  Contract,  or  defective  goods
         returned in accordance with the terms of the Contract);

(xvii)   as  to  which   Originator  has  satisfied  and  fully   performed  all
         obligations on its part with respect to such Receivable  required to be
         fulfilled  by it, and no further  action is required to be performed by
         any Person  with  respect  thereto  other than  payment  thereon by the
         applicable Obligor;

(xviii)  all  right,  title  and  interest  to and in  which  has  been  validly
         transferred  by  Originator  directly to Seller under and in accordance
         with the Receivables Sale Agreement, and Seller has good and marketable
         title thereto free and clear of any Adverse Claim;

(xix)    for which Seller has given reasonably equivalent value to Originator in
         consideration  therefor  pursuant to the  Receivables  Sale  Agreement,
         which was not made for or on account of an antecedent debt and which is
         not voidable under any section of the Bankruptcy Code; and

(xx)     in which the Agent, for the benefit of the Purchasers,  has a valid and
         perfected  first priority  undivided  percentage  ownership or security
         interest, free and clear of any Adverse Claim.

         "ERISA" means the Employee  Retirement  Income Security Act of 1974, as
amended from time to time.

         "Facility Account" means Seller's Account No. 1069533 at Bank One.

         "Facility  Termination  Date" means the  earliest of (i) the  Liquidity
Termination Date, (ii) the Amortization Date and (iii) September 30, 2003.

         "Federal Funds  Effective  Rate" means,  for any period,  a fluctuating
interest  rate per  annum  for  each day  during  such  period  equal to (a) the
weighted  average of the rates on  overnight  federal  funds  transactions  with
members of the Federal  Reserve  System  arranged by federal funds  brokers,  as
published for such day (or, if such day is not a Business Day, for the preceding
Business Day) by the Federal  Reserve Bank of New York in the Composite  Closing
Quotations  for  U.S.  Government  Securities;  or (b) if  such  rate  is not so
published for any day which is a Business Day, the average of the  quotations at
approximately  10:30  a.m.  (Chicago  time)  for such  day on such  transactions
received by the Agent from three federal  funds  brokers of recognized  standing
selected by it.

         "Fee Letter" means that certain letter  agreement  dated as of the date
hereof among Seller,  Originator and the Agent, as it may be amended or modified
and in effect from time to time.

         "Finance  Charges"  means,  with  respect to a Contract,  any  finance,
interest,  late payment charges or similar charges owing by an Obligor  pursuant
to such Contract.

         "Financial  Institutions"  has the meaning set forth in the preamble in
this Agreement.

         "Funding   Agreement"   means  this  Agreement  and  any  agreement  or
instrument executed by any Funding Source with or for the benefit of Company.

         "Funding  Source"  means  (i) any  Financial  Institution  or (ii)  any
insurance  company,  bank or other funding entity  providing  liquidity,  credit
enhancement or back-up purchase support or facilities to Company.

         "GAAP" means generally accepted accounting  principles in effect in the
United States of America as of the date of this Agreement.

         "Incremental  Purchase"  means  a  purchase  of one or  more  Purchaser
Interests which increases the total outstanding Aggregate Capital hereunder.

         "Indebtedness"  means,  with respect to any Person,  such  Person's (i)
obligations  for borrowed  money,  (ii)  obligations  representing  the deferred
purchase price of property or services  (other than accounts  payable arising in
the ordinary course of such Person's  business payable on terms customary in the
trade), (iii) obligations,  whether or not assumed,  secured by liens or payable
out of the  proceeds or  production  from  property  now or  hereafter  owned or
acquired  by such  Person,  (iv)  obligations  which  are  evidenced  by  notes,
acceptances, or other instruments,  (v) capitalized lease obligations,  (vi) net
liabilities  under  interest  rate  swap,  exchange  or  cap  agreements,  (vii)
Contingent  Obligations  and (viii)  liabilities  in respect of unfunded  vested
benefits under plans covered by Title IV of ERISA.

         "Independent  Director"  means a member  of the Board of  Directors  of
Seller  who is not,  (A) and has not been at any time  during the five (5) years
preceding his or her election to such Board of Directors,  a director,  officer,
employee  or  affiliate  of  Seller,  Originator,  or  any of  their  respective
Subsidiaries  or Affiliates,  or (B) the  beneficial  owner (at the time of such
individual's  appointment as an Independent  Director or at any time  thereafter
while  serving as an  Independent  Director)  of any of the  outstanding  common
shares  of  Seller,  Originator,  or any of  their  respective  Subsidiaries  or
Affiliates, having general voting rights;

         "LIBO Rate" means the rate per annum equal to the sum of:

         (i) (a) the applicable British Bankers' Association Interest Settlement
Rate for deposits in U.S.  dollars  appearing on Reuters Screen FRBD as of 11:00
a.m.  (London  time) two  Business  Days prior to the first day of the  relevant
Tranche  Period,  and having a maturity equal to such Tranche  Period,  provided
that,  (1) if Reuters  Screen FRBD is not available to the Agent for any reason,
the  applicable  LIBO Rate for the relevant  Tranche Period shall instead be the
applicable British Bankers' Association Interest Settlement Rate for deposits in
U.S. dollars as reported by any other generally recognized financial information
service as of 11:00 a.m.  (London time) two Business Days prior to the first day
of such Tranche Period,  and having a maturity equal to such Tranche Period, and
(2)  if no  such  British  Bankers'  Association  Interest  Settlement  Rate  is
available to the Agent, the applicable LIBO Rate for the relevant Tranche Period
shall  instead be the rate  determined by the Agent to be the rate at which Bank
One offers to place  deposits  in U.S.  dollars  with  first-class  banks in the
London interbank  market at approximately  11:00 a.m. (London time) two Business
Days prior to the first day of such Tranche Period, in the approximate amount to
be funded at the LIBO Rate and having a maturity  equal to such Tranche  Period,
divided by (b) one minus the maximum  aggregate reserve  requirement  (including
all basic,  supplemental,  marginal or other  reserves) which is imposed against
the Agent in respect of Eurocurrency liabilities,  as defined in Regulation D of
the Board of Governors of the Federal  Reserve  System as in effect from time to
time (expressed as a decimal), applicable to such Tranche Period; plus

         (ii) 0.75% per annum.

     The LIBO Rate shall be rounded,  if  necessary,  to the next higher 1/16 of
     1%.

         "Liquidity  Commitment"  means,  for each  Financial  Institution,  the
commitment of such Financial  Institution to purchase  Purchaser  Interests from
the  Company  in an amount not to exceed  (a) in the  aggregate,  the amount set
forth opposite such Financial  Institution's name under the Liquidity Commitment
Column on  Schedule  A to this  Agreement,  as such  amount may be  modified  in
accordance  with the  terms  hereof,  and (b)  with  respect  to any  individual
purchase from the Company,  the lesser of (i) its Pro Rata Share of the Purchase
Price therefor and (ii) its Unused Liquidity Commitment.

         "Liquidity Termination Date" means October 4, 2001.

         "Lock-Box"  means each locked  postal box with  respect to which a bank
who has  executed a Collection  Account  Agreement  has been  granted  exclusive
access  for the  purpose  of  retrieving  and  processing  payments  made on the
Receivables and which is listed on Exhibit IV.

         "Loss  Horizon  Ratio" means,  for any  Collection  Period,  a fraction
(calculated as a percentage) computed by dividing (i) the aggregate  Outstanding
Balance of all  Receivables  generated  during the three (3) most recently ended
Collection   Periods  by  (ii)  the   aggregate   Outstanding   Balance  of  all
non-Delinquent  Receivables  as at  the  last  day of the  most  recently  ended
Collection Period.

         "Loss Reserve"  means,  on any date, an amount equal to (x) the greater
of (i) 12% and  (ii)  the  Loss  Reserve  Ratio  then in  effect  times  (y) the
aggregate Net Receivables Balance as of the close of business on the immediately
preceding Business Day.

         "Loss  Reserve  Ratio" means,  as of any date, an amount  calculated as
follows:

     LRR = 2.0 x DPR x LHR, where

     LRR = the Loss Reserve Ratio;

     DPR = the  highest  average  of the  Default  Proxy  Ratios  for any  three
           consecutive Collection Periods during the most recent twelve months;
           and

     LHR = the Loss Horizon Ratio.

The Loss Reserve  Ratio shall be calculated  monthly in each Monthly  Report and
such Loss Reserve Ratio shall,  absent  manifest  error,  be effective  from the
corresponding   Monthly  Settlement  Date  until  the  next  succeeding  Monthly
Settlement Date.

         "Loss-to  Liquidation  Ratio"  means,  for  any  Collection  Period,  a
fraction  (calculated  as a percentage)  equal to (i) the aggregate  Outstanding
Balance of all Receivables  (without  duplication)  which, as of the last day of
such Collection Period,  remain unpaid for at least one hundred twenty (120) but
less than one hundred  fifty (150) days from the original  invoice date plus the
aggregate  Outstanding Balance of all Receivables  (without  duplication) which,
consistent  with the  Credit and  Collection  Policy,  were or should  have been
written off the Seller's  books as  uncollectible  and are less than one hundred
twenty  (120) days past  invoice  date during such  period,  divided by (ii) the
aggregate amount of Collections during such Collection Period.

         "Mandate Letter" means that certain mandate letter dated as of July 24,
2000 addressed to Anixter from Banc One Capital Markets, Inc.

         "Material  Adverse  Effect" means a material  adverse effect on (i) the
financial condition or operations of any Seller Party and its Subsidiaries, (ii)
the ability of any Seller Party to perform its obligations under this Agreement,
(iii) the legality,  validity or  enforceability  of this Agreement or any other
Transaction Document, (iv) any Purchaser's interest in the Receivables generally
or in any significant  portion of the  Receivables,  the Related Security or the
Collections with respect thereto,  or (v) the  collectibility of the Receivables
generally or of any material portion of the Receivables.

         "Monthly Report" means a report, in substantially the form of Exhibit X
hereto  (appropriately  completed),  furnished  by the  Servicer  to  the  Agent
pursuant to Section 8.5.

     "Moody's" means Moody's Investors Service, Inc., and any successor thereto.

         "Monthly  Settlement Date" means the 17th day of each month, or if such
day is not a Business Day, the next succeeding Business Day.

         "Net Receivables Balance" means, at any time, the aggregate Outstanding
Balance of Eligible  Receivables at such time reduced by the aggregate amount by
which the Outstanding Balance of Eligible  Receivables from each Obligor and its
Affiliates  exceeds the Standard  Concentration  Limit or Special  Concentration
Limit for such Obligor, as the case may be.

         "Non-Defaulting  Financial  Institution"  has the  meaning set forth in
Section 13.5.

         "Non-Renewing  Financial  Institution"  has the  meaning  set  forth in
Section 13.6(a).

         "Obligations" has the meaning set forth in Section 2.1.

         "Obligor"  means a Person  obligated  to make  payments  pursuant  to a
Contract.

         "Originator"  means  Anixter,  in its  capacity  as  seller  under  the
Receivables Sale Agreement.

         "Outstanding  Balance"  means,  with respect to any  Receivable  at any
time, the then outstanding principal balance thereof.

         "Outstanding  Balance of Eligible  Receivables"  means, for purposes of
the definitions of "Net Receivables Balance",  "Special Concentration Limit" and
"Standard   Concentration  Limit",  the  Outstanding  Balance  of  all  Eligible
Receivables (the Outstanding  Balance of an Eligible  Receivable  subject to any
right of  rescission,  set-off,  counterclaim  or other  defense as described in
clause (xv) of the  definition of "Eligible  Receivable"  being the  outstanding
principal  balance  of  such  Receivable  less  the  amount  of  such  right  of
rescission,  set-off, counterclaim or other defense), plus the lesser of (a) the
aggregate  amount of all rights of rescission,  set-off,  counterclaim  or other
defenses to which all Eligible Receivables are subject and (b) $15,000,000.

         "Participant" has the meaning set forth in Section 12.2.

         "Person" means an  individual,  partnership,  corporation  (including a
business  trust),  limited  liability  company,  joint  stock  company,   trust,
unincorporated  association,  joint venture or other entity,  or a government or
any political subdivision or agency thereof.

         "Pooled  Commercial  Paper"  means  Commercial  Paper  notes of Company
subject  to  any  particular  pooling  arrangement  by  Company,  but  excluding
Commercial  Paper  issued by Company  for a tenor and in an amount  specifically
requested by any Person in connection with any agreement effected by Company.

         "Potential  Amortization  Event" means an event which, with the passage
of time or the giving of  notice,  or both,  would  constitute  an  Amortization
Event.

         "Proposed Reduction Date" has the meaning set forth in Section 1.3.

         "Pro Rata Share" means,  for each Financial  Institution,  a percentage
equal to (i) the Liquidity Commitment of such Financial Institution,  divided by
(ii)  the  aggregate  amount  of all  Liquidity  Commitments  of  all  Financial
Institutions hereunder,  adjusted as necessary to give effect to the application
of the terms of Sections 13.5 or 13.6.

         "Purchase Limit" means $275,000,000.

         "Purchase Notice" has the meaning set forth in Section 1.2.

         "Purchase Price" means,  with respect to any Incremental  Purchase of a
Purchaser Interest,  the amount paid to Seller for such Purchaser Interest which
shall not exceed the least of the amount  requested by Seller in the  applicable
Purchase Notice,  the Unused Purchase Limit on the applicable  purchase date and
the excess, if any, of the Net Receivables Balance (less the Aggregate Reserves)
on the  applicable  purchase  date  over the  aggregate  outstanding  amount  of
Aggregate Capital determined as of the date of the most recent Monthly Report.

         "Purchase Price Deficit" has the meaning set forth in Section 1.2.

         "Purchasers" means Company and each Financial Institution.

         "Purchaser  Interest"  means,  at any  time,  an  undivided  percentage
ownership  interest  (computed as set forth below)  associated with a designated
amount of Capital,  selected  pursuant to the terms and conditions hereof in (i)
each  Receivable  arising  prior to the time of the most recent  computation  or
recomputation of such undivided interest, (ii) all Related Security with respect
to each such  Receivable,  and (iii) all Collections  with respect to, and other
proceeds of, each such Receivable. Each such undivided percentage interest shall
equal:

                                [OBJECT OMITTED]

                                     where:

C = the Capital of such Purchaser Interest.

AR = the Aggregate Reserves.

NRB = the Net Receivables Balance.

Such undivided  percentage ownership interest shall be initially computed on its
date of  purchase.  Thereafter,  until the  Amortization  Date,  each  Purchaser
Interest shall be automatically  recomputed (or deemed to be recomputed) on each
day prior to the Amortization Date. The variable  percentage  represented by any
Purchaser  Interest as computed  (or deemed  recomputed)  as of the close of the
business day immediately  preceding the Amortization  Date shall remain constant
at all times thereafter.

"Purchasing Financial Institution" has the meaning set forth in Section 12.1(b).

         "Receivable"  means  all  indebtedness  and other  obligations  owed to
Seller or  Originator  (at the time it arises,  and before  giving effect to any
transfer or conveyance  under the Receivables Sale Agreement or hereunder) or in
which  Seller has a security  interest  or other  interest,  including,  without
limitation,  any indebtedness,  obligation or interest  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 further 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;  provided  further,  that any
indebtedness,  rights or obligations  referred to in the  immediately  preceding
sentence  shall be a  Receivable  regardless  of whether the  account  debtor or
Seller treats such  indebtedness,  rights or obligations  as a separate  payment
obligation.

         Receivables  Sale  Agreement"  means  that  certain   Receivables  Sale
Agreement,  dated as of October 6, 2000 , between  Originator and Seller, as the
same may be amended, restated or otherwise modified from time to time.

         "Records"  means,  with respect to any  Receivable,  all  Contracts and
other  documents,  books,  records  and other  information  (including,  without
limitation,  computer  programs,  tapes,  disks,  punch cards,  data  processing
software  and related  property  and rights)  relating to such  Receivable,  any
Related Security therefor and the related Obligor.

         "Reduction Notice" has the meaning set forth in Section 1.3.

         "Reduction  Percentage"  means, for any Purchaser  Interest acquired by
the  Financial  Institutions  from  Company  for less than the  Capital  of such
Purchaser  Interest,  a percentage equal to a fraction the numerator of which is
the  Company  Transfer  Price  Reduction  for such  Purchaser  Interest  and the
denominator of which is the Capital of such Purchaser Interest.

         "Regulatory Change" has the meaning set forth in Section 10.2(a).

         "Reinvestment" has the meaning set forth in Section 2.2.

         "Related Security" means, with respect to any Receivable:

(i)      all of Seller's interest in the inventory and goods (including returned
         or  repossessed  inventory or goods),  if any,  the sale,  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,  letters of credit,  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 of Seller's right, title and interest in, to and under the
         Receivables Sale Agreement in respect of such Receivable, and

(vii)    all proceeds of any of the foregoing.

     "Required  Financial  Institutions"  means, at any time, (i) if the Company
holds  any  Purchaser  Interests,  the  Agent and  Financial  Institutions  with
Liquidity  Commitments in excess of 50% of the aggregate  Liquidity  Commitments
and (ii) if the Company  holds no Purchaser  Interests,  Financial  Institutions
with  Liquidity  Commitments  in  excess  of  50%  of  the  aggregate  Liquidity
Commitments.

     "S&P" means Standard & Poor's Ratings Group, a division of The  McGraw-Hill
Companies, Inc., and any successor thereto.

     "Section   1.2   Defaulting   Financial   Institution"   and  "Section  1.2
Non-Defaulting  Financial  Institution"  have the  meanings set forth in Section
1.2.

     "Seller" has the meaning set forth in the preamble to this Agreement.

     "Seller  Parties"  has  the  meaning  set  forth  in the  preamble  to this
Agreement.

     "Servicer"  means at any time the  Person  (which  may be the  Agent)  then
authorized  pursuant  to  Article  VIII  to  service,   administer  and  collect
Receivables.

     "Servicer Reserve" means, on any date, an amount equal to (a) if Anixter or
any Affiliate of Anixter is the Servicer on such date,  the product of (x) 0.36%
and (y) the  Outstanding  Balance of all Receivables  generated  during the most
recently ended Collection  Period  immediately  preceding such date, or (b) if a
Person  other than  Anixter or any  Affiliate of Anixter is the Servicer on such
date,  the  product  of (i)  0.33%  and  (ii)  the  Outstanding  Balance  of all
Receivables  as at  the  end  of  the  most  recently  ended  Collection  Period
immediately  preceding such date, or such other amount as Agent shall  determine
in its reasonable judgment.

     "Servicing Fee" has the meaning set forth in Section 8.6.

     "Settlement  Date" means (A) the Monthly  Settlement Date, and (B) the last
day of the relevant Tranche Period in respect of each Purchaser  Interest of the
Financial Institutions.

     "Settlement  Period"  means (A) in respect of each  Purchaser  Interest  of
Company,  the immediately  preceding Accrual Period,  and (B) in respect of each
Purchaser Interest of the Financial  Institutions,  the entire Tranche Period of
such Purchaser Interest.

     "Significant Subsidiary" has the meaning set forth in Regulation S-X of the
Securities and Exchange Commission, 17 C.F.R. Part 210, as in effect on the date
hereof.

     "Special  Concentration  Limit"  means,  at any time,  with  respect to any
Special  Obligor,  a  dollar  amount  equal  to a  percentage  of the  aggregate
Outstanding Balance of Eligible Receivables or such other limit as the Agent may
designate for such Special Obligor; provided, that the Agent may, upon notice to
Seller,  cancel or reduce any Special  Concentration  Limit. The initial Special
Concentration  Limit  for each of AT&T,  MCI,  Lucent  Technologies  and  Nortel
Networks  shall  be,  as of  any  date  of  determination  thereof,  12%  of the
Outstanding Balance of Eligible Receivables at such time.

         "Special Obligor" means each of AT&T, MCI, Lucent Technologies,  Nortel
Networks, and such other Special Obligors as may be designated by the Agent from
time to time.

         "Standard  Concentration Limit" means, at any time, with respect to any
Obligor other than a Special Obligor, 4% of the aggregate Outstanding Balance of
Eligible Receivables at such time.

         "Subsidiary"  means,  with respect to any Person,  (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.  Unless  otherwise  expressly  provided,  all references
herein to a "Subsidiary" shall mean a Subsidiary of Anixter.

     "Termination Date" has the meaning set forth in Section 2.2.

     "Termination Percentage" has the meaning set forth in Section 2.2.

     "Terminating  Financial  Institution"  has the meaning set forth in Section
13.6(a).

     "Terminating Tranche" has the meaning set forth in Section 4.3(b).

     "Tranche Period" means, with respect to any Purchaser Interest held by
a Financial Institution:

(a) if Yield for such Purchaser  Interest is calculated on the basis of the LIBO
Rate, a period of one, two, three or six months,  or such other period as may be
mutually  agreeable  to the Agent  and  Seller,  commencing  on a  Business  Day
selected by Seller or the Agent pursuant to this Agreement.  Such Tranche Period
shall  end  on the  day  in  the  applicable  succeeding  calendar  month  which
corresponds  numerically to the beginning day of such Tranche Period,  provided,
however,  that  if  there  is no  such  numerically  corresponding  day in  such
succeeding month, such Tranche Period shall end on the last Business Day of such
succeeding month; or

(b) if Yield for such Purchaser  Interest is calculated on the basis of the Base
Rate, a period  commencing on a Business Day selected by Seller and agreed to by
the Agent, provided no such period shall exceed one month.

If any  Tranche  Period  would end on a day which is not a  Business  Day,  such
Tranche Period shall end on the next succeeding Business Day, provided, however,
that in the case of Tranche Periods corresponding to the LIBO Rate, if such next
succeeding  Business Day falls in a new month,  such Tranche Period shall end on
the  immediately  preceding  Business Day. In the case of any Tranche Period for
any Purchaser  Interest which commences before the  Amortization  Date and would
otherwise end on a date  occurring  after the  Amortization  Date,  such Tranche
Period shall end on the  Amortization  Date. The duration of each Tranche Period
which  commences  after  the  Amortization  Date  shall be of such  duration  as
selected by the Agent.

     "Transaction Documents" means, collectively,  this Agreement, each Purchase
Notice, the Receivables Sale Agreement,  each Collection Account Agreement,  the
Fee Letter, the Subordinated Note (as defined in the Receivables Sale 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 specified jurisdiction.

     "Unused  Back-up   Commitment"   means,   with  respect  to  any  Financial
Institution at any time, such Financial Institution's Back-up Commitment at such
time minus such Financial  Institution's Back-up Pro Rata Share of the Aggregate
Capital outstanding at such time.

     "Unused  Liquidity   Commitment"  means,  with  respect  to  any  Financial
Institution at any time, such Financial  Institution's  Liquidity  Commitment at
such time minus the aggregate Capital of such Financial  Institution's Purchaser
Interests at such time.

         "Unused  Purchase Limit" means, at any time, the Purchase Limit at such
     time minus the Aggregate Capital outstanding at such time.

     "Yield"  means for each  respective  Tranche  Period  relating to Purchaser
Interests of the Financial  Institutions,  an amount equal to the product of the
applicable  Discount Rate for each Purchaser Interest  multiplied by the Capital
of such  Purchaser  Interest for each day elapsed  during such  Tranche  Period,
annualized on a 360 day basis.

     "Yield  Reserve"  means, on any date, an amount equal to the product of (a)
the Purchase Limit and (b) 1.875%.

     All accounting terms not specifically  defined herein shall be construed in
accordance  with  GAAP.  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>

                                                      Exh. II-2
                                   EXHIBIT II
                             FORM OF PURCHASE NOTICE

                                     [Date]

                             Bank One, NA, as Agent
                          1 Bank One Plaza, 21st Floor
                              Asset-Backed Finance
                          Chicago, Illinois 60670-0596

                                   Attention:

                               Re: PURCHASE NOTICE

Ladies and Gentlemen:

         Reference is hereby made to the Receivables  Purchase Agreement,  dated
as of October 6, 2000, by and among Anixter Receivables Corporation,  a Delaware
corporation   (the   "Seller"),   Anixter  Inc.,  as  Servicer,   the  Financial
Institutions, Falcon Asset Securitization Corporation ("Company"), and Bank One,
NA, as Agent (the  "Receivables  Purchase  Agreement").  Capitalized  terms used
herein  shall  have the  meanings  assigned  to such  terms  in the  Receivables
Purchase Agreement.

         The Agent is hereby notified of the following Incremental Purchase:

Purchase Price:                       $
------------------------------------- ------------------------------------------
Date of Purchase:
------------------------------------- ------------------------------------------
Requested Discount Rate:              [LIBO Rate] [Base Rate] [Pooled Commercial
                                             Paper rate]
------------------------------------- ------------------------------------------

         Please credit the Purchase Price in immediately  available funds to our
Facility  Account  [and then  wire-transfer  the Purchase  Price in  immediately
available funds on the above-specified date of purchase to:

[Account Name]
[Account No.]
[Bank Name & Address]
[ABA #]
Reference:
Telephone advice to: [Name] @ tel. No. ( )

         Please advise [Name] at telephone no ( )  _________________  if Company
will not be making this purchase.

     In connection with the Incremental  Purchase to be made on the above listed
"Date of Purchase" (the "Purchase  Date"),  the Seller hereby certifies that the
following  statements  are  true on the  date  hereof,  and  will be true on the
Purchase  Date  (before  and after  giving  effect to the  proposed  Incremental
Purchase):

     (i) the  representations  and warranties of the Seller set forth in Section
5.1 of the Receivables  Purchase Agreement are true and correct on and as of the
Purchase Date as though made on and as of such date;

     (ii) no event has  occurred  and is  continuing,  or would  result from the
proposed Incremental  Purchase,  that will constitute an Amortization Event or a
Potential Amortization Event;

     (iii) the Facility Termination Date has not occurred, the Aggregate Capital
does not exceed the Purchase Limit and the aggregate  Purchaser Interests do not
exceed 100%; and

     (iv) the amount of Aggregate  Capital is $_________  after giving effect to
the Incremental Purchase to be made on the Purchase Date.

     Very truly yours,

Anixter Receivables Corporation

                                       By:
                                      Name:
                                     Title:

<PAGE>

                                   Exh. III-1
                                   EXHIBIT III

                    PLACES OF BUSINESS OF THE SELLER PARTIES;
                              LOCATIONS OF RECORDS;
                    FEDERAL EMPLOYER IDENTIFICATION NUMBER(S)

<PAGE>

                                    Exh. IV-1
                                   EXHIBIT IV
                 NAMES OF COLLECTION BANKS; COLLECTION ACCOUNTS
------------------------------------------------ -------------------------------
                       Lock-Box Related Collection Account
------------------------------------------------ -------------------------------
------------------------------------------------ -------------------------------

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

<PAGE>

                                    Exh. V-2
                                    EXHIBIT V
                         FORM OF COMPLIANCE CERTIFICATE
                           To: Bank One, NA, as Agent

     This  Compliance   Certificate  is  furnished   pursuant  to  that  certain
Receivables  Purchase  Agreement  dated as of  October  6,  2000  among  Anixter
Receivables  Corporation  (the  "Seller"),  Anixter Inc. (the  "Servicer"),  the
Purchasers  party  thereto and Bank One, NA, as agent for such  Purchasers  (the
"Agreement").

     THE UNDERSIGNED HEREBY CERTIFIES THAT:

1.   I am the duly elected __________ of Seller.

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 Seller 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 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 in paragraph 5 below.

4.   Schedule  I attached  hereto  sets forth  financial  data and  computations
     evidencing the compliance with certain  covenants of the Agreement,  all of
     which data and computations are true, complete and correct.

5.   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 Seller 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 , .

<PAGE>

                      SCHEDULE I TO COMPLIANCE CERTIFICATE

     A. Schedule of Compliance  as of  __________,  ____ with Section ___ of the
Agreement.  Unless otherwise  defined herein,  the terms used in this Compliance
Certificate have the meanings ascribed thereto in the Agreement.

     This schedule relates to the month ended:

<PAGE>

                                    Exh. VI-3
EXHIBIT VI1
                      FORM OF COLLECTION ACCOUNT AGREEMENT
                         [On letterhead of Anixter Inc.]
                                __________, 2000

               [Lock-Box Bank/Concentration Bank/Depositary Bank]

                                Re: Anixter Inc.

Ladies and Gentlemen:

     Reference  is hereby  made to P.O.  Box # in [city,  state,  zip code] (the
"Lock-Box")  of which you have  exclusive  control for the purpose of  receiving
mail  and  processing  payments  therefrom  pursuant  to that  certain  [name of
lock-box   agreement)  between  you  and  Anixter  Inc.  (the  "Company")  dated
_________, _____ (the "Agreement"). You hereby confirm your agreement to perform
the services  described  therein.  Among the services you have agreed to perform
therein,  is to endorse all checks and other  evidences  of payment,  and credit
such payments to the Company's  checking account no.  maintained with you in the
name of the Company (the "Lock-Box Account").

     The Company  hereby  informs you that pursuant to that certain  Receivables
Sale  Agreement,  dated as of  ________,  2000  between  the Company and Anixter
Receivables  Corporation (the "Seller"),  the Company has transferred all of its
right, title and interest in and to, and exclusive ownership and control of, the
Lock-Box  and the  Lock-Box  Account to Seller.  The Company  and Seller  hereby
request that the name of the Lock-Box  Account be changed to "[Anixter Inc.], as
Servicer."

     The Company and Seller  hereby  irrevocably  instruct  you,  and you hereby
agree,  that upon  receiving  notice from Bank One, NA ("Bank  One") in the form
attached hereto as Annex A: (i) the name of the Lock-Box Account will be changed
to Bank One for itself and as agent (or any  designee  of Bank One) and Bank One
will have  exclusive  ownership  of and access to the  Lock-Box and the Lock-Box
Account, and neither the Company, Seller, nor any of their respective affiliates
will have any  control of the  Lock-Box  or the  Lock-Box  Account or any access
thereto,  (ii) you will either  continue to send the funds from the  Lock-Box to
the  Lock-Box  Account,  or will  redirect  the funds as Bank One may  otherwise
request,  (iii) you will transfer monies on deposit in the Lock-Box Account,  at
any time,  as directed by Bank One,  (iv) all  services to be  performed  by you
under the  Agreement  will be  performed  on  behalf  of Bank  One,  and (v) all
correspondence  or other  mail which you have  agreed to send to the  Company or
Seller will be sent to Bank One at the following address:

<PAGE>

                                  Bank One, NA
                               Suite , 21st Floor
                                1 Bank One Plaza
                            Chicago, Illinois 60670-
                     Attention: Credit Manager, Asset Backed
                               Securities Division

     Moreover,  upon such notice, Bank One for itself and as agent will have all
rights and remedies given to the Company (and Seller, as the Company's assignee)
under the  Agreement.  Seller agrees,  however,  to continue to pay all fees and
other assessments due thereunder at any time.

     You hereby acknowledge that monies deposited in the Lock-Box Account or any
other  account  established  with you by Bank One for the  purpose of  receiving
funds from the  Lock-Box  are subject to the liens of Bank One for itself and as
agent, and will not be subject to deduction, set-off, banker's lien or any other
right you or any other party may have against the Company or Seller [except that
you may debit the  Lock-Box  Account for any items  deposited  therein  that are
returned or otherwise not collected and for all charges,  fees,  commissions and
expenses incurred by you in providing services hereunder, all in accordance with
your customary practices for the charge back of returned items and expenses.]

     THIS  LETTER  AGREEMENT  AND THE  RIGHTS  AND  OBLIGATIONS  OF THE  PARTIES
HEREUNDER WILL BE GOVERNED BY AND CONSTRUED AND  INTERPRETED IN ACCORDANCE  WITH
THE LAWS OF THE STATE OF ILLINOIS.  This letter agreement may be executed in any
number of  counterparts  and all of such  counterparts  taken  together  will be
deemed to constitute one and the same instrument.

     This letter agreement  contains the entire  agreement  between the parties,
and may not be altered, modified,  terminated or amended in any respect, nor may
any right,  power or privilege  of any party  hereunder be waived or released or
discharged,  except upon execution by all parties hereto of a written instrument
so  providing.  In the event that any  provision in this letter  agreement is in
conflict with, or inconsistent with, any provision of the Agreement, this letter
agreement  will  exclusively  govern and control.  Each party agrees to take all
actions  reasonably  requested  by any other party to carry out the  purposes of
this  letter  agreement  or to  preserve  and  protect  the rights of each party
hereunder.

<PAGE>

     Please  indicate  your  agreement to the terms of this letter  agreement by
signing in the space provided below. This letter agreement will become effective
immediately  upon  execution of a  counterpart  of this letter  agreement by all
parties hereto.

     Very truly yours,

     Anixter Inc.

                                       By:
                                      Name:
                                     Title:

                         Anixter Receivables Corporation

                                       By:
                                      Name:
                                     Title:

Acknowledged and agreed to
this      day of
     ----

                               [Collection Bank]

                                      By:
                                     Name:
                                     Title:

                             Bank One, NA, as Agent

                                      By:
                                     Name:
                                     Title:

<PAGE>

                                    Annex A-1
                                     ANNEX A
                                 FORM OF NOTICE

                           [On letterhead of Bank One]

              [Collection Bank/Depositary Bank/Concentration Bank]

                Re: Anixter Inc./Anixter Receivables Corporation

Ladies and Gentlemen:

     We hereby  notify you that we are  exercising  our rights  pursuant to that
certain letter agreement among Anixter Inc.,  Anixter  Receivables  Corporation,
you and us, to have the name of, and to have exclusive ownership and control of,
account number (the "Lock-Box Account")  maintained with you, transferred to us.
[The Lock-Box  Account will  henceforth  be a  zero-balance  account,  and funds
deposited  in the Lock-Box  Account  should be sent at the end of each day to .]
You have further agreed to perform all other  services you are performing  under
that certain agreement dated between you and [Anixter Inc.] on our behalf.

     We appreciate your cooperation in this matter.

     Very truly yours,

                             BANK ONE, NA, as Agent

                                       By:
                                     Title:

<PAGE>

                                   Exh. VII-7
                                   EXHIBIT VII
                          FORM OF ASSIGNMENT AGREEMENT

     THIS ASSIGNMENT AGREEMENT (this "Assignment  Agreement") is entered into as
of the  ___  day of  ____________,  --------------------  ____,  by and  between
_____________________ ("Assignor") and __________________ ("Assignee"). --------
--------

                             PRELIMINARY STATEMENTS

A. This Assignment  Agreement is being executed and delivered in accordance with
Section  12.1(b) of that  certain  Receivables  Purchase  Agreement  dated as of
October 6, 2000 by and among Anixter Receivables  Corporation,  Anixter Inc., as
Servicer, Falcon Asset Securitization  Corporation,  Bank One, NA, as Agent, and
the Financial Institutions party thereto (as amended,  modified or restated from
time  to  time,  the  "Purchase  Agreement").  Capitalized  terms  used  and not
otherwise defined herein are used with the meanings set forth or incorporated by
reference in the Purchase Agreement.

B. Assignor is a Financial Institution party to the Purchase Agreement, and
Assignee wishes to become a
Financial Institution thereunder; and

C. Assignor is selling and assigning to Assignee an undivided ____________%
(the  "Transferred  Percentage")  interest  in  all  of  Assignor's  rights  and
obligations  under  the  Purchase  Agreement  and  the  Transaction   Documents,
including,  without  limitation,  Assignor's  Back-up  Commitment  and Liquidity
Commitment and (if applicable) the Capital of Assignor's  Purchaser Interests as
set forth herein.

                                    AGREEMENT

                   The parties hereto hereby agree as follows:

1. The sale, transfer and assignment effected by this Assignment Agreement shall
become  effective  (the  "Effective  Date") two (2) Business Days (or such other
date selected by the Agent in its sole discretion) following the date on which a
notice  substantially  in the form of Schedule II to this  Assignment  Agreement
("Effective  Notice")  is  delivered  by the  Agent  to  Company,  Assignor  and
Assignee.  From and after the  Effective  Date,  Assignee  shall be a  Financial
Institution  party to the  Purchase  Agreement  for all  purposes  thereof as if
Assignee were an original  party thereto and Assignee  agrees to be bound by all
of the terms and provisions contained therein.

2. If Assignor has no outstanding Capital under the Purchase  Agreement,  on the
Effective Date, Assignor shall be deemed to have hereby transferred and assigned
to Assignee, without recourse, representation or warranty (except as provided in
paragraph 6 below),  and the Assignee shall be deemed to have hereby irrevocably
taken,  received  and assumed  from  Assignor,  the  Transferred  Percentage  of
Assignor's  Back-up  Commitment  and  Liquidity  Commitment  and all  rights and
obligations  associated  therewith  under the terms of the  Purchase  Agreement,
including,  without limitation,  the Transferred Percentage of Assignor's future
funding obligations under Section 4.1 of the Purchase Agreement.

3. If Assignor has any outstanding Capital under the Purchase  Agreement,  at or
before 12:00 noon, local time of Assignor,  on the Effective Date Assignee shall
pay to Assignor,  in immediately  available funds, an amount equal to the sum of
(i)  the  Transferred  Percentage  of  the  outstanding  Capital  of  Assignor's
Purchaser  Interests  (such  amount,   being  hereinafter  referred  to  as  the
"Assignee's  Capital");  (ii) all accrued  but unpaid  (whether or not then due)
Yield attributable to Assignee's Capital; and (iii) accruing but unpaid fees and
other costs and expenses payable in respect of Assignee's Capital for the period
commencing  upon  each  date  such  unpaid  amounts  commence  accruing,  to and
including the Effective Date (the  "Assignee's  Acquisition  Cost");  whereupon,
Assignor  shall be deemed to have sold,  transferred  and  assigned to Assignee,
without recourse,  representation or warranty (except as provided in paragraph 6
below), and Assignee shall be deemed to have hereby irrevocably taken,  received
and assumed from  Assignor,  the  Transferred  Percentage of Assignor's  Back-up
Commitment  and Liquidity  Commitment  and the Capital of  Assignor's  Purchaser
Interests  (if  applicable)  and all related  rights and  obligations  under the
Purchase Agreement and the Transaction Documents, including, without limitation,
the  Transferred  Percentage  of Assignor's  future  funding  obligations  under
Section 4.1 of the Purchase Agreement.

4. Concurrently with the execution and delivery hereof, Assignor will provide to
Assignee  copies of all documents  requested by Assignee which were delivered to
Assignor pursuant to the Purchase Agreement.

5. Each of the parties to this Assignment  Agreement agrees that at any time and
from time to time upon the written  request of any other party,  it will execute
and deliver such further  documents  and do such further acts and things as such
other  party may  reasonably  request  in order to effect the  purposes  of this
Assignment Agreement.

6. By executing and delivering this Assignment Agreement,  Assignor and Assignee
confirm to and agree with each other,  the Agent and the Financial  Institutions
as  follows:  (a) other than the  representation  and  warranty  that it has not
created  any  Adverse  Claim  upon any  interest  being  transferred  hereunder,
Assignor makes no representation or warranty and assumes no responsibility  with
respect  to any  statements,  warranties  or  representations  made by any other
Person  in or in  connection  with the  Purchase  Agreement  or the  Transaction
Documents or the execution,  legality,  validity,  enforceability,  genuineness,
sufficiency or value of Assignee, the Purchase Agreement or any other instrument
or document furnished pursuant thereto or the perfection,  priority,  condition,
value or sufficiency of any collateral;  (b) Assignor makes no representation or
warranty and assumes no responsibility  with respect to the financial  condition
of the Seller,  any  Obligor,  any  Affiliate  of Seller or the  performance  or
observance by the Seller,  any Obligor,  any Affiliate of Seller of any of their
respective  obligations under the Transaction  Documents or any other instrument
or document furnished pursuant thereto or in connection therewith;  (c) Assignee
confirms  that it has  received a copy of the Purchase  Agreement  and copies of
such other Transaction Documents,  and other documents and information as it has
requested and deemed appropriate to make its own credit analysis and decision to
enter into this  Assignment  Agreement;  (d) Assignee  will,  independently  and
without  reliance  upon the Agent,  Company,  the Seller or any other  Financial
Institution or Purchaser and based on 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 Purchase  Agreement  and the  Transaction
Documents; (e) Assignee appoints and authorizes the Agent to take such action as
agent on its behalf and to exercise such powers under the Transaction  Documents
as are delegated to the Agent by the terms thereof, together with such powers as
are reasonably  incidental thereto; and (f) Assignee agrees that it will perform
in accordance with their terms all of the obligations which, by the terms of the
Purchase  Agreement  and the other  Transaction  Documents,  are  required to be
performed by it as a Financial Institution or, when applicable, as a Purchaser.

7. Each party hereto  represents  and warrants to and agrees with the Agent that
it is aware of and will comply with the  provisions  of the Purchase  Agreement,
including, without limitation, Sections 4.1, 13.1 and 14.6 thereof.

8.  Schedule I hereto sets forth the revised  Back-up  Commitment  and Liquidity
Commitment of Assignor and the Back-up  Commitment  and Liquidity  Commitment of
Assignee, as well as administrative information with respect to Assignee.

9. THIS  ASSIGNMENT  AGREEMENT  SHALL BE  GOVERNED  BY,  AND  CONSTRUED  IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF ILLINOIS.

10.  Assignee hereby  covenants and agrees that,  prior to the date which is one
year and one day  after  the  payment  in full of all  senior  indebtedness  for
borrowed  money of Company,  it will not  institute  against,  or join any other
Person  in  instituting   against,   Company  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.

<PAGE>

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

                                   [ASSIGNOR]

                                       By:
                                     Title:

                                   [ASSIGNEE]

                                       By:
                                     Title:

<PAGE>

<TABLE>
<CAPTION>
                       SCHEDULE I TO ASSIGNMENT AGREEMENT

                       LIST OF LENDING OFFICES, ADDRESSES
                       FOR NOTICES AND COMMITMENT AMOUNTS

Date: _______________, ____
Transferred Percentage:    ________%

<S>            <C>                <C>                 <C>                   <C>                   <C>             <C>
                      A-1                A-2                  A-3                   A-4                B-1              B-2
-------------- ------------------ ------------------- --------------------- --------------------- --------------- ----------------
Assignor            Back-up            Back-up             Liquidity             Liquidity         Outstanding     Ratable Share
                  Commitment      Commitment (after    Commitment (prior     Commitment (after       Capital      of Outstanding
               (prior to giving    giving effect to   to giving effect to     giving effect to       (if any)         Capital
                 effect to the      the Assignment       the Assignment        the Assignment
                  Assignment          Agreement)           Agreement)            Agreement)
                  Agreement)
-------------- ------------------ ------------------- --------------------- --------------------- --------------- ----------------
                                         A-2                                        A-4                B-1              B-2
-------------- ------------------ ------------------- --------------------- --------------------- --------------- ----------------
Assignee                               Back-up                                   Liquidity         Outstanding     Ratable Share
                                  Commitment (after                          Commitment (after       Capital      of Outstanding
                                   giving effect to                           giving effect to       (if any)         Capital
                          the Assignment the Assignment
                                      Agreement)                                 Agreement)
-------------- ------------------ ------------------- --------------------- --------------------- --------------- ----------------

</TABLE>

Address for Notices

Attention:
Phone:
Fax:

<PAGE>

                       SCHEDULE II TO ASSIGNMENT AGREEMENT

<PAGE>

                                EFFECTIVE NOTICE
TO:________________________, Assignor

TO:________________________, Assignee

     The undersigned, as Agent under the Receivables Purchase Agreement dated as
of  October 6, 2000 by and among  Anixter  Receivables  Corporation,  a Delaware
corporation, Anixter Inc., as Servicer, Falcon Asset Securitization Corporation,
Bank One, NA, as Agent,  and the Financial  Institutions  party thereto,  hereby
acknowledges  receipt  of  executed   counterparts  of  a  completed  Assignment
Agreement  dated  as  of  ____________,  ____  between  __________________,   as
Assignor, and __________________,  as Assignee. Terms defined in such Assignment
Agreement are used herein as therein defined.

     1.  Pursuant  to such  Assignment  Agreement,  you  are  advised  that  the
Effective Date will be ______________, ____.

     2.  Company  hereby  consents to the  Assignment  Agreement  as required by
Section 12.1(b) of the Receivables

Purchase Agreement.

<PAGE>

     [3. Pursuant to such Assignment Agreement,  the Assignee is required to pay
$____________  to Assignor at or before  12:00 noon (local time of  Assignor) on
the Effective Date in immediately available funds.]

     Very truly yours,

                     BANK ONE, NA, individually and as Agent

                                       By:
                                     Title:
                           FALCON ASSET SECURITIZATION
                                   CORPORATION

                        By: ____________________________
                              Authorized Signatory

<PAGE>

                                   Exh. VIII-1
                                  EXHIBIT VIII
                          CREDIT AND COLLECTION POLICY
                   See Exhibit V to Receivables Sale Agreement

<PAGE>

                                    Exh. IX-1
                                   EXHIBIT IX
                               FORM OF CONTRACT(S)
                                  See Attached

<PAGE>

                                    Exh. X-1
                                    EXHIBIT X
                             FORM OF MONTHLY REPORT

     [In addition to such other  information as may be included on this exhibit,
each Monthly  Report should set forth the following  with respect to the related
Calculation  Period (as  defined in the  Receivables  Sale  Agreement):  (i) the
aggregate  Outstanding Balance of Receivables created and conveyed by Originator
to Seller in purchases  pursuant to the Receivables  Sale Agreement  during such
Calculation  Period,  as well as the Net Receivables  Balance included  therein,
(ii) the  aggregate  purchase  price  payable to  Originator  in respect of such
purchases,  specifying the Discount Factor (as defined in the  Receivables  Sale
Agreement)  in effect for such  Calculation  Period and the  aggregate  Purchase
Price  Credits  (as  defined in the  Receivables  Sale  Agreement)  deducted  in
calculating such aggregate  purchase price,  (iii) the aggregate amount of funds
received by the Servicer during such Calculation  Period which are to be applied
as Reinvestments,  (iv) the increase or decrease in the amount outstanding under
the  Subordinated  Note (as defined in the Receivables Sale Agreement) as of the
end of such  Calculation  Period after giving effect to the application of funds
toward the aggregate  purchase price and the restrictions on Subordinated  Loans
(as defined in the Receivables  Sale Agreement) set forth in Section  1.2(a)(ii)
of  the  Receivables  Sale  Agreement,   and  (v)  the  amount  of  any  capital
contribution  made by  Originator  to Seller  as of the end of such  Calculation
Period pursuant to Section 1.2(b) of the Receivables Sale Agreement.]

     The above is a true and  accurate  accounting  pursuant to the terms of the
Receivables  Purchase Agreement dated October 6, 2000 (the "Agreement"),  by and
among Anixter Receivables Corporation,  Anixter Inc., the Financial Institutions
named  therein,  Falcon Asset  Securitization  Corporation  and Bank One, NA, as
Agent,  and I have no knowledge of the  existence  of any  conditions  or events
which constitute an Amortization Event or Potential  Amortization Event, as each
such term is defined under the Agreement, during or at the end of the accounting
period  covered by this  monthly  report or as of the date of this  certificate,
except as set forth below.

By:______________________
Name:___________________
Title:____________________
Company Name:___________
Date:____________________

<PAGE>

                                    Sch. A-1
                                   SCHEDULE A
                      COMMITMENTS OF FINANCIAL INSTITUTIONS

Financial Institution        Back-up Commitment             Liquidity Commitment

Bank One, NA                   $150,000,000                      $155,500,000

Lloyds TSB Bank plc            $ 75,000,000                      $ 75,000,000

Danske Bank A/S                $ 50,000,000                      $ 50,000,000

<PAGE>

                                    Sch. B-1
                                   SCHEDULE B
                     DOCUMENTS TO BE DELIVERED TO THE AGENT
                       ON OR PRIOR TO THE INITIAL PURCHASE
                                   (Attached.)

<PAGE>

                                       iii

<PAGE>

                                TABLE OF CONTENTS

<PAGE>

                                      Page

                                        i

     1 We will  replace this with the form agreed upon with Bank of America when
it is complete.THIS DOCUMENT CONSTITUTES PART OF A
                  PROSPECTUS COVERING SECURITIES THAT HAVE BEEN
                   REGISTERED UNDER THE SECURITIES ACT OF 1993

                           ANIXTER INTERNATIONAL INC.

                Enhanced Management Incentive Plan for 2001-2002

         1.  Purpose and  Effective  Date.  Anixter  International  Inc. and its
subsidiary  Anixter  Inc.  (together  and  individually,   the  "Company")  have
established  a  Management  Incentive  Plan  pursuant  to  the  approval  of the
Company's  stockholders  at their meeting on May 25, 2000. The annual  incentive
bonus opportunity being provided by the Management  Incentive Plan (the "Regular
Plan") is being  enhanced  for the fiscal  2001 and 2002 Bonus Years for certain
key  participants in the Management  Incentive Plan as provided in this Enhanced
Management  Incentive Plan for 2001-2002 (the  "Enhanced  Plan").  The effective
date of the Enhanced Plan shall be the first day of the 2001 Bonus Year.

         2. Administration. The Enhanced Plan shall be administered by the Board
of Directors,  or the Compensation Committee of the Company's Board of Directors
or such other Board committee as the Board may designate (the "Committee").  The
Committee  has  the  authority  and  responsibility   for  the   interpretation,
administration  and  application of the provisions of the Enhanced Plan, and the
Committee's  interpretations  of the Enhanced  Plan, and all actions taken by it
and  determinations  made by it shall be  binding  on all  persons.  No Board or
Committee member shall be liable for any determination,  decision or action made
in good faith with respect to the Enhanced Plan.

         3.  Participation.  The  Participants  of  the  Company  listed  on The
attached  exhibit  who are  notified  in writing of their  participation  in the
Enhanced Plan and any additional  Participants  added to The attached exhibit by
the  President  and notified in writing of their  participation  in the Enhanced
Plan are the "Participants" in the Enhanced Plan.

4. Enhanced  Incentive  Opportunity.  The annual incentive bonus  opportunity of
each  Participant  under  the  Regular  Plan  shall be  divided  into two  equal
portions.  One portion  shall  continue to be governed by the  provisions of the
Regular Plan and the payout matrices  established  from time to time pursuant to
that plan.  This portion of the annual  incentive bonus shall not be affected by
the  Enhanced  Plan.  The other  portion  shall be  eliminated  from the  annual
incentive  bonus provided by the Regular Plan.  This  eliminated  portion of the
regular  annual  incentive  bonus,  the "Fifty  Percent of Regular  Annual Bonus
Opportunity,"  shall be governed  solely by the  Enhanced  Plan.  An  additional
annual  incentive  bonus  opportunity  as specified for each  Participant in The
attached  exhibit,  the "Additional Bonus  Opportunity,"  shall also be governed
solely by the Enhanced Plan.  Together the Fifty Percent of Regular Annual Bonus
Opportunity and the Additional Bonus Opportunity shall be the Enhanced Incentive
Opportunity and the product of the dollar amount equal to the Enhanced Incentive
Opportunity  times  the  percentage  of this  opportunity  deemed  earned by the
Participant  in  accordance  with  paragraph  5  shall  be the  Earned  Enhanced
Incentive.

         5.  Earned  Enhanced  Incentive.  How  much,  if any,  of the  Enhanced
Incentive Opportunity is earned is dependent on the Company's operating earnings
before  non-recurring items for each Bonus Year ("Earnings").  The determination
of  Earnings  by the  Committee  shall be final and  conclusive.  In making this
determination the Committee shall not be bound by technical  accounting rules or
how the Company chooses to report its Earnings. The payout grid for the Enhanced
Incentive is as follows:

                            Earnings for                      Earnings for
                           Bonus Year 2001                   Bonus Year 2002
                           ---------------                   ---------------

Threshold--50% earned       90% of Target                     90% of Target

Target--100% earned        115% of 2000 Earnings             115% of 2001 Target
Maximum--150% earned       110% of Target                    110% of Target

None of the Enhanced Incentive Opportunity will be earned for Earnings below the
Threshold.  The  percentage  of the Enhanced  Incentive  Opportunity  earned for
Earnings   between  the  Threshold  and  the  Maximum  shall  be  determined  by
interpolation.  Earnings  above  the  Maximum  shall  not  affect  the  Enhanced
Incentive Opportunity.

         6. Payment of Earned Enhanced Incentive.  The Earned Enhanced Incentive
shall be paid  solely in Stock Units of the  Company.  The number of Stock Units
shall be  determined  as  follows:  First,  a value  for a Stock  Unit  shall be
determined  by  averaging  the  closing  prices of the  Company's  common  stock
("Share"  or  "Shares")  for each  trading day during the Bonus Year ("Per Share
Value").  The Committee will in its sole judgment adjust this calculation as the
Committee  determines  to be  appropriate  for any  increase  or decrease in the
number of issued Shares or any change in the value of the Shares  resulting from
a subdivision  or  consolidation  of Shares,  reorganization,  recapitalization,
spin-off,  payment of stock  dividends on the Shares,  or any other  increase or
decrease in the number of issued Shares made without receipt of consideration by
the Company, or the payment of an extraordinary dividend. No adjustment shall be
made for the  purchase  of Shares by the  Company.  Second,  110% of the  Earned
Enhanced  Incentive that is  attributable  to Fifty Percent of Regular Bonus and
100% of the Earned Enhanced  Incentive that is attributable to Additional  Bonus
Opportunity  shall be added together to determine  "Total Initial Value of Stock
Units."  Third,  the Total  Initial Value of Stock Units shall be divided by the
Per  Share  Value to  determine  the  number  of Stock  Units to be  awarded  to
Participant  for  the  Enhanced  Incentive   Opportunity  for  the  Bonus  Year.
Fractional  Stock Units  shall be rounded up or down to the nearest  whole Stock
Unit.

         7. Vesting of Stock  Units.  One third of the Stock Units shall vest on
each  anniversary of the Date of Grant beginning with the second  anniversary of
the Date of Grant.  The Date of Grant shall be the first business day in January
following the Bonus Year for which the Stock Units were earned. All of the Stock
Units will vest upon the death or permanent  total  disability of Participant or
upon any Change of Control of the Company.  A "Change of Control of the Company"
shall  occur if (a)  substantially  all the assets of the  Company are sold to a
Third Party or a Third Party becomes the Beneficial  Owner of the greater of (I)
25%,  or (ii)  the  percentage  owned by Sam  Zell  and his  affiliates,  of the
Company's  securities  that vote for the election of directors or (b) a majority
of the Board of Directors of the Company were not  nominated for election by the
Board of Directors. A "Third Party" is any Person, other than Samuel Zell or his
Affiliates  and other  than  Anixter  International  Inc.  or its  subsidiaries.
"Person,"  "Affiliates," and "Beneficial  Owner" shall be defined as those terms
are defined pursuant to the Securities Exchange Act of 1934, as amended. If at a
time Stock Units are not vested (i)  Participant's  employment  with  Company is
terminated by Company for good cause or by  Participant  voluntarily or (ii) any
transfer of unvested  Stock Units shall be made  without the written  consent of
the Company, the unvested Stock Units shall be null and void.

         8.  Conversion  of Vested  Stock  Units.  Each vested  Stock Unit shall
convert to one Share at the time selected by each Participant in accordance with
the  procedures  established by the Company or upon any Change of Control of the
Company.  If no time for conversion is so selected by a Participant,  such Stock
Units shall  convert to Shares upon  vesting.  The number of Shares into which a
Stock Unit converts shall be appropriately adjusted for any increase or decrease
in the  number  of  issued  Shares  or any  change  in the  value of the  Shares
resulting  from  a  subdivision  or  consolidation  of  Shares,  reorganization,
recapitalization,  spin-off,  payment of stock  dividends on the Shares,  or any
other  increase or decrease in the number of issued Shares made without  receipt
of consideration by the Company, or the payment of an extraordinary dividend. No
adjustment shall be made for the purchase of Shares by the Company.

         9.  Employment.  The Enhanced Plan is not a contract of employment.  If
the  employment of a Participant  shall  terminate for any reason during a Bonus
Year, the Participant shall have no right to any Enhanced Incentive  Opportunity
for that or, if  applicable,  the  subsequent  Bonus Year. A  Participant  whose
employment  terminates  during a Bonus  Year shall be treated as if he was not a
Participant  in  Enhanced  Plan at any  time  during  the  Bonus  Year  and that
Participant's entire annual incentive bonus opportunity,  it any, for that Bonus
Year will be governed by the Regular Plan.

         10.  Impact  on Other  Plans.  The  value of any  portion  of an Earned
Enhanced  Incentive  shall not be considered in determining  (a) a Participant's
pension  benefit under any of the Company's  retirement  plans or (b) the amount
that a Participant can contribute to any savings plan maintained by the Company.
However,  if a Participant is  participating  in a defined  benefit pension plan
that  provides for a pension that is affected by the amount of annual  incentive
bonus earned by the  Participant  under the Regular  Plan,  the amount of annual
incentive bonus earned by that Participant under the Regular Plan for that Bonus
Year will be  treated,  to the extent  permitted  by law,  for  purposes of that
pension plan as if it were twice that amount.

     11. Withholding Taxes. As a condition to the conversion of the Stock Units,
the Participant  shall make such arrangements as the Company may require for the
satisfaction of any Federal, state or local tax withholding obligations that may
arise in connection with such conversion.

         12.  Amendment  of the  Enhanced  Plan.  The Board of  Directors or the
Committee may from time to time suspend, terminate, revise or amend the Enhanced
Plan or the  terms of any grant in any  respect  whatsoever.  No such  amendment
shall affect rights in Stock Units earned prior to the amendment or shall reduce
the total  annual  incentive  bonus  opportunity  for that  Bonus year below the
opportunity the Participant  would have had for that Bonus Year if he or she had
not been  Participant or, if a Change of Control has occurred,  shall reduce any
Participant's  Enhanced  Incentive  Opportunity for the Bonus Year in which such
amendment is made.

         Executed as of the Effective Date.

         Anixter International Inc.
         by  James_E._Knox
               James E. Knox
                its Senior Vice President--Law

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00021-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00021-of-00352.parquet"}]]