Document:

EXHIBIT 10.55

                        GLOBAL MARINE INC.
               2001 MANAGEMENT INCENTIVE AWARD PLAN

PURPOSE AND PARTICIPANTS

The purpose of the 2001 Management Incentive Award Plan is to
provide management employees of Global Marine Inc. and its
subsidiaries with effective incentives in respect of their
service during 2001.  The plan does this by focusing management
on and rewarding performance that is superior when evaluated
against the company's own internal performance measures and
against measures of performance relative to other companies in
Global Marine's industry peer group, particularly in areas that
enhance shareholder value.  All employees of Global Marine Inc.
and its subsidiaries in grades 34 and above are eligible to
participate in the plan, although such eligibility shall not
create or imply any promise or other obligation of Global Marine
Inc. or any of its subsidiaries or any right of any individual
employee or of the collective employees of Global Marine Inc. and
its subsidiaries.

THE PLAN

THE TWO BONUS POOLS.  There are two bonus pools under the plan -
a "GMI, GMDC & GMIS-E Pool" for employees of Global Marine Inc.
and its subsidiaries other than Applied Drilling Technology Inc.
and Challenger Minerals Inc., and an "ADTI & CMI Pool" for
employees of Applied Drilling Technology Inc. and Challenger
Minerals Inc.

A base dollar amount will be assigned to each of the two bonus
pools, and each pool's base dollar amount will be allocated to
performance measures.  For each of the two pools, the total 2001
base pay received by all participants in each salary grade range
listed in Table A in the attachment will be multiplied by the
target bonus percentage indicated for that range in Table A, and
the resulting amounts for all ranges will be added to arrive at
that pool's base dollar amount.  The total base dollar amount for
each pool will then be allocated to the performance measures
listed in Table B, based on the percentages for that pool listed
opposite the various measures.

THE GMI, GMDC & GMIS-E POOL.  The GMI, GMDC & GMIS-E Pool is
based on two objective measures, one of which is an internal
measure and one of which is a measure of performance relative to
other companies in Global Marine's industry peer group.  The two
measures for 2001 are: 1) consolidated net income compared to
budget; and 2) consolidated return on capital (net income
relative to invested capital) compared to the company's peers.  A
specific goal has been set for each of the two performance
measures, such that exactly meeting the goal will result in
authorization to pay 100% of the base dollar amount allocated to
that performance measure.  If the goal is not fully met, then a
percentage between 0% and 100%, the exact percentage dependent on
the exact amount of the shortfall, of that measure's base amount
<PAGE>
will be authorized for bonus awards.  If the goal is exceeded,
then a percentage between 100% and a maximum 200%, the exact
percentage dependent on the exact amount by which the goal is
exceeded, of that measure's base dollar amount will be
authorized.

THE ADTI & CMI POOL.  The ADTI & CMI Pool is based on three
objective measures, two of which are internal measures and one of
which is a measure of performance relative to other companies in
Global Marine's industry peer group.  The three measures for 2001
are: 1) consolidated net income compared to budget; 2)
consolidated return on capital (net income relative to invested
capital) compared to the company's peers; and 3) Applied Drilling
Technology Inc. pre-tax income compared to budget.  A specific
goal has been set for each of the three performance measures,
such that exactly meeting the goal will result in authorization
to pay 100% of the base dollar amount allocated to that
performance measure.  If the goal is not fully met, then a
percentage between 0% and 100%, the exact percentage dependent on
the exact amount of the shortfall, of that measure's base amount
will be authorized for bonus awards.  If the goal is exceeded,
then a percentage above 100%, the exact percentage dependent on
the exact amount by which the goal is exceeded, of that measure's
base dollar amount will be authorized.

DETERMINATION OF INDIVIDUAL BONUSES.  At its first meeting in
2002, the Compensation Committee of the Board of Directors of
Global Marine Inc. will certify the level of 2001 performance
achieved under each pool's performance measures.  The appropriate
multiplier for each measure, determined from Table B in the
attachment, will then be applied to the base dollar amount
allocated to that measure, and the resulting amounts for each
pool's measures will be added to determine the total amount
authorized for bonuses from that pool.

Individual bonuses from each pool will be based on individual
merit.  Bonuses will be paid in cash or, at the Compensation
Committee's discretion, can be paid in shares of Global Marine
Inc. common stock in lieu of cash (applicable withholding taxes
being paid in cash).

RESPONSIBILITY AND AUTHORITY

The Chief Executive Officer and the Chief Administrative Officer
of Global Marine Inc. will take all such actions, do all such
things, make all such payments, and sign and deliver all such
documents and instruments as either or both of them may at any
time or from time to time deem necessary or desirable in order to
implement this plan.

<PAGE>
                                                       ATTACHMENT
                                TABLE A
                                -------

<TABLE>
<CAPTION>
                               TARGET BONUS

    Salary
    Grades                  GMI, GMDC & GMIS-E               ADTI & CMI
    ------                 -------------------               ----------
<S> <C>                            <C>                           <C>
    34-37                          25%                           35%
    38-39                          30%                           40%
    40-42                          35%                           45%
    43-46                          40%                           50%
Executive Officers                 60%                           80%
     CEO                           80%                            -

</TABLE>

                                  TABLE B
                                  -------
<TABLE>
<CAPTION>
                     Percentage of
                     Target Bonus
                     -------------
Performance       GMI, GMDC    ADTI &          Factors Determining
  Measure         & GMIS-E      CMI      Performance Measure Multiplier(1)
-----------       ---------    ------    ---------------------------------
<S>                  <C>        <C>      <S>                                    <C>       <C>   <C>        <C>    <C>
Consolidated         50%        10%      Company Performance as Percentage    <=50%       75%   100%       125%   150%+
Net Income                               of Budget
                                         Performance Measure Multiplier          0        0.5    1.0        1.5     2.0

Consolidated         50%        10%      Company Performance vs. Peer        50th Pctile      75th Pctile           Max
Return on Capital (2)                    Group (3)
                                         Performance Measure Multiplier         0.5              1.0                2.0

ADTI                  0%        80%      Company Performance as Percentage       0%             100%               150%
Pre-Tax Income                           of Budget
                                         Performance Measure Multiplier          0               1.0                1.5
                    ----       ----
                    100%       100%

</TABLE>
(1) Performance between percentiles is based on straight-line interpolation.

(2) Return must be positive for any payout under this measure.

(3) Peer Group Companies include:  Global Marine Inc. Transocean Offshore
    Drilling Inc., Diamond Offshore Drilling Inc., Rowan Companies, ENSCO
    International Inc., Nabors Industries Inc., Noble Drilling Corporation,
    and Santa Fe International Corp.FIVE-YEAR

                           REVOLVING CREDIT AGREEMENT

                           Dated as of October 6, 2000

                                      among

                                  ANIXTER INC.
                                       and
                           THE BORROWING SUBSIDIARIES
                                FROM TIME TO TIME
                                 PARTIES HERETO
                                  as Borrowers,

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

                                  BANK ONE, NA,
                              as Syndication Agent,

                            THE BANK OF NOVA SCOTIA,
                             as Documentation Agent,

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

                                       and

                         The Other Lenders Party Hereto

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

<PAGE>

                                  Section Page

                                      iii

                                TABLE OF CONTENTS

                                  Section Page

ARTICLE I.
DEFINITIONS AND ACCOUNTING TERMS
         1.01     Defined Terms................................................1
         1.02     Other Interpretive Provisions...............................25
         1.03     Accounting Terms............................................26
         1.04     Rounding....................................................26
         1.05     References to Agreements and Laws...........................26
         1.06     Euro........................................................26

ARTICLE II.
THE COMMITMENTS AND CREDIT EXTENSIONS
         2.01     Committed Loans.............................................26
         2.02     Borrowings, Conversions and Continuations of Committed Loans27
         2.03     Bid Loans...................................................28
         2.04     Foreign Currency Loan Commitment............................31
         2.05     Procedure for Foreign Currency Borrowings...................32
         2.06     Participations in Foreign Currency Loans....................33
         2.07     Prepayments.................................................34
         2.08     Reduction or Termination of Commitments.....................35
         2.09     Repayment of Loans..........................................35
         2.10     Interest....................................................35
         2.11     Fees........................................................36
         2.12     Computation of Interest and Fees............................37
         2.13     Evidence of Debt............................................37
         2.14     Payments Generally..........................................37
         2.15     Sharing of Payments.........................................39
         2.16     Borrowing Subsidiaries......................................40
         2.17     Currency Exchange Fluctuations..............................40
         2.18     Participation Obligations Unconditional.....................41

ARTICLE III.TAXES, YIELD PROTECTION AND ILLEGALITY
         3.01     Taxes.......................................................41
         3.02     Illegality..................................................43
         3.03     Inability to Determine Rates................................43
         3.04     Increased Cost and Reduced Return; Capital Adequacy; Reserves
                  on Eurocurrency Rate Loans..................................44
         3.05     Funding Losses..............................................45
         3.06     Matters Applicable to all Requests for Compensation.........45
         3.07     Survival....................................................46

ARTICLE IV.CONDITIONS PRECEDENT TO CREDIT EXTENSIONS
         4.01     Conditions of Initial Credit Extension......................46
         4.02     Conditions to all Credit Extensions.........................48

ARTICLE V.REPRESENTATIONS AND WARRANTIES
         5.01     Organization; Corporate Powers..............................48
         5.02     Authority...................................................49
         5.03     Subsidiaries................................................49
         5.04     No Conflict.................................................49
         5.05     Governmental Consents.......................................49
         5.06     Governmental Regulation.....................................50
         5.07     Financial Position..........................................50
         5.08     Litigation; Adverse Effects.................................50
         5.09     No Material Adverse Change..................................51
         5.10     Payment of Taxes............................................51
         5.11     Performance.................................................51
         5.12     Securities Activities.......................................51
         5.13     Disclosure..................................................51
         5.14     Requirements of Law.........................................51
         5.15     Patents, Trademarks, Permits, Etc...........................52
         5.16     Environmental Matters.......................................52
         5.17     Employee Benefit Matters....................................52
         5.18     Solvency....................................................52
         5.19     Assets and Properties.......................................53
         5.20     Joint Venture; Partnership..................................53
         5.21     No Default..................................................53
         5.22     Restricted Payments.........................................53
         5.23     Subsequent Funding Representations and Warranties...........53

ARTICLE VI.
AFFIRMATIVE COVENANTS
         6.01     Financial Statements........................................53
         6.02     Environmental Notices.......................................56
         6.03     Corporate Existence, Etc....................................57
         6.04     Corporate Powers, Etc.......................................57
         6.05     Compliance with Laws........................................57
         6.06     Payment of Taxes and Claims.................................57
         6.07     Maintenance of Properties; Insurance........................57
         6.08     Inspection of Property; Books and Records; Discussions......58
         6.09     Maintenance of Permits......................................58
         6.10     Employee Benefit Matters....................................58
         6.11     Additional Guarantors.......................................59
         6.12     Use of Proceeds.............................................59

ARTICLE VII.
NEGATIVE COVENANTS
         7.01     Indebtedness................................................59
         7.02     Sales of Assets; Liens......................................60
         7.03     Investments.................................................61
         7.04     Accommodation Obligations...................................63
         7.05     Restricted Payments.........................................63
         7.06     Conduct of Business.........................................64
         7.07     Transactions with Affiliates................................64
         7.08     Restriction on Fundamental Changes..........................65
         7.09     Employee Benefit Matters....................................65
         7.10     Environmental Liabilities...................................66
         7.11     Margin Regulations..........................................66
         7.12     Change of Fiscal Year.......................................66
         7.13     Modification of the Subordinated LYONs Note, the Revolving
                  Subordinated Note or Senior Note Indenture; Issuance of
                  Additional Senior Notes.....................................66
         7.14     Hedging Contracts...........................................66
         7.15     Receivables Securitization Transactions.....................66
         7.16     Minimum Consolidated Net Worth..............................67
         7.17     Maximum Leverage Ratio......................................67
         7.18     Minimum Consolidated Fixed Charge Coverage Ratio............67
         7.19     Capital Expenditures........................................67
         7.20     Calculation of Financial Covenants..........................67

ARTICLE VIII.
EVENTS OF DEFAULT AND REMEDIES
         8.01     Events of Default...........................................68
         8.02     Remedies Upon Event of Default..............................70

ARTICLE IX.ADMINISTRATIVE AGENT
         9.01     Appointment and Authorization of Administrative Agent.......71
         9.02     Delegation of Duties........................................71
         9.03     Liability of Administrative Agent...........................71
         9.04     Reliance by Administrative Agent............................72
         9.05     Notice of Default...........................................72
         9.06     Credit Decision; Disclosure of Information by Administrative
                  Agent.......................................................73
         9.07     Indemnification of Administrative Agent.....................73
         9.08     Administrative Agent in its Individual Capacity.............74
         9.09     Successor Administrative Agent..............................74
         9.10     Other Agents................................................75

<PAGE>

                                       ii

ARTICLE X.
MISCELLANEOUS
         10.01    Amendments, Etc.............................................75
         10.02    Notices and Other Communications; Facsimile Copies..........76
         10.03    No Waiver; Cumulative Remedies..............................77
         10.04    Attorney Costs, Expenses and Taxes..........................77
         10.05    Indemnification by the Borrowers............................77
         10.06    Payments Set Aside..........................................78
         10.07    Successors and Assigns......................................78
         10.08    Confidentiality.............................................81
         10.09    Set-off.....................................................82
         10.10    Interest Rate Limitation....................................82
         10.11    Counterparts................................................82
         10.12    Integration.................................................82
         10.13    Survival of Representations and Warranties..................83
         10.14    Severability................................................83
         10.15    Foreign Lenders.............................................83
         10.16    Removal and Replacement of Lenders..........................84
         10.17    Judgment Currency...........................................85
         10.18    Economic and Monetary Union in the European Community.......85
         10.19    Borrowers' Agent............................................86
         10.20    Governing Law...............................................86
         10.21    Waiver of Right to Trial by Jury............................87

SCHEDULES

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

EXHIBITS

        A-1    Form of Committed Loan Notice
        A-2    Form of Foreign Currency Loan Notice
        B-1    Form of Bid Request
        B-2    Form of Competitive Bid
        C-1    Form of Borrowing Subsidiary Agreement
        C-2    Form of Borrowing Subsidiary Termination
        D-1    Form of Committed Loan Note
        D-2    Form of Bid Loan Note
        D-3    Form of Foreign Currency Loan Note
        E      Form of Compliance Certificate
        F      Form of Assignment and Acceptance
        G      Form of Guaranty
        H      Form of Opinion of Counsel
        I       Form of Allocation Notice

<PAGE>

                                    FIVE-YEAR
                           REVOLVING CREDIT AGREEMENT

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

     The Borrowers have requested  that the Lenders  provide a revolving  credit
facility,  and the Lenders are willing to do so on the terms and  conditions set
forth herein.  In consideration  of the mutual  covenants and agreements  herein
contained,  the  parties  hereto  covenant  and  agree as  follows:  ARTICLE  1.
DEFINITIONS AND ACCOUNTING TERMSARTICLE 2.

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

     "Absolute  Rate" means a fixed rate of interest  expressed  in multiples of
1/100th of one basis point.

     "Absolute  Rate  Loan"  means a Bid  Loan  that  bears  interest  at a rate
determined with reference to an Absolute Rate.

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

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

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

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

     "Agent/Arranger Fee Letter" has the meaning specified in Section 2.11(b).

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

     "Aggregate Commitments" means US$390,000,000, as such amount may be reduced
or adjusted from time to time in accordance with this Agreement.

     "Aggregate Foreign Currency Commitments" means $75,000,000,  as such amount
may be reduced or adjusted from time to time in accordance with this Agreement.

     "Agreement" means this Five-Year Revolving Credit Agreement.

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

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

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

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

     "Applicable  Currency"  means,  with  respect to any Loan,  the currency in
which such Loan is denominated.

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

Applicable Margin

 Pricing     Debt Ratings        Facility fee                 Base Rate

 Level       S&P/Moody's/Fitch                Eurocurrency       +
                                                                 -
                                              Rate +
---------   ------------------- ------------ ----------      ---------

   1         $A-/A3                0.175%     0.575%            zero
   -         ------                ------     ------            ----
   2         BBB+/Baa1             0.20%      0.675%            zero
   -         ---------             -----      ------            ----
   3         BBB/Baa2              0.225%     0.775%            zero
   -         --------              ------     ------            ----
   4         BBB-/Baa3             0.25%      0.875%            zero
   -         ---------             -----      ------            ----
   5         BB+/Ba1               0.275%     1.100%            zero
   -         -------               ------     ------            ----
   6         <BB+/Ba1              0.325%     1.300%            zero
   -         --------              ------     ------            ----

     "Debt  Rating"  means,  as of any  date of  determination,  the  rating  as
determined by either S&P,  Moody's or Fitch (provided that Anixter shall have at
least two such  ratings  and at least one of such  ratings  shall be from S&P or
Moody's)  (collectively,  the "Debt Ratings") of Anixter's  non-credit-enhanced,
senior unsecured  long-term debt; provided that if the existing Debt Ratings are
not the same level,  then (i) if there are two Debt Ratings,  the higher of such
Debt  Ratings  shall apply (with  Pricing  Level 1 being the highest and Pricing
Level 6 being the lowest),  (ii) if there are three Debt Ratings and no two Debt
Ratings are at the same level,  the  intermediate  Debt Rating shall  apply,  or
(iii) if there are  three  Debt  Ratings  and two Debt  Ratings  are at the same
level,  then the level with the two Debt  Ratings  shall apply.  Initially,  the
Applicable  Margin shall be determined  based upon the Debt Rating  specified in
the certificate  delivered pursuant to Section  4.01(a)(vii).  Thereafter,  each
change in the Applicable  Margin  resulting from a publicly  announced change in
the Debt Rating shall be effective, in the case of an upgrade, during the period
commencing  on the date of  delivery by Anixter to the  Administrative  Agent of
notice thereof  pursuant to Section  6.01(k) and ending on the date  immediately
preceding  the  effective  date of the next such  change  and,  in the case of a
downgrade,  during the period commencing on the date of the public  announcement
thereof and ending on the date  immediately  preceding the effective date of the
next such change.

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

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

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

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

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

     "Available Foreign Currency" means (i) British Pounds Sterling,  (ii) Euros
and (iii) any other freely available  currency which is freely  transferable and
freely convertible into US Dollars and in which dealings in deposits are carried
on in the London  interbank  market,  which  shall be  requested  by Anixter and
approved by each Lender.

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

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

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

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

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

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

           "Bid  Borrowing"  means a borrowing  consisting of  simultaneous  Bid
Loans of the same Type from each of the Lenders  whose offer to make one or more
Bid Loans as part of such borrowing has been accepted under the auction  bidding
procedures described in Section 2.03.

     "Bid Loan" has the meaning specified in Section 2.03(a).

     "Bid Loan  Note"  means a  promissory  note made by  Anixter  in favor of a
Lender  evidencing Bid Loans made by such Lender,  substantially  in the form of
Exhibit D-2.

     "Bid Request" means a written request for one or more Bid Loans
substantially in the form of Exhibit B-1.

     "Board" means the Board of Governors of the Federal  Reserve  System of the
United States of America.

     "Borrower" means Anixter and each Borrowing Subsidiary.

     "Borrowing"  means a  Committed  Borrowing,  a Bid  Borrowing  or a Foreign
Currency Borrowing, as the context may require.

     "Borrowing  Subsidiary"  means any Foreign  Subsidiary  of Anixter named as
such on the signature  pages hereto or  designated as a Borrowing  Subsidiary by
Anixter pursuant to Section 2.16.

     "Borrowing Subsidiary Agreement" means a Borrowing Subsidiary
Agreement substantially in the form of Exhibit C-1.

     "Borrowing Subsidiary Termination" means a Borrowing Subsidiary Termination
substantially in the form of Exhibit C-2.

     "British  Pounds  Sterling" means the lawful currency of the United Kingdom
of Great Britain and Northern Ireland. "Business Day" means any day other than a
Saturday or Sunday or a day on which commercial banking  institutions located in
Charlotte,  Chicago, New York or San Francisco are authorized or required by law
or  other  governmental  action  to  close  and  with  respect  to all  notices,
determinations,  fundings and payments in connection with any Eurocurrency  Rate
Loan,  any day  that  is also a day for  trading  by and  between  banks  in the
Applicable Currency in the applicable interbank eurocurrency market.

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

     "Cash  Equivalents"  shall mean (i) marketable direct obligations issued or
unconditionally  guaranteed  by the  United  States  Government  or issued by an
agency  thereof and backed by the full faith and credit of the United  States of
America,  in each  case  maturing  within  ninety  (90)  days  after the date of
acquisition  thereof;  (ii) marketable direct obligations issued by any state of
the United States of America  maturing within ninety (90) days after the date of
acquisition  thereof  and,  at the time of  acquisition,  having  one of the two
highest  ratings  obtainable  from  either  S&P or Moody's  (or,  if at any time
neither S&P nor Moody's shall be rating such  obligations,  then from such other
nationally  recognized rating services  acceptable to the Administrative  Agent)
and not listed in Credit Watch published by S&P (or a similar publication of S&P
or another nationally recognized rating service);  (iii) commercial paper (other
than commercial paper issued by AXE, Anixter or any Subsidiary of Anixter or any
of their  Affiliates),  domestic and Eurodollar  certificates  of deposit,  time
deposits or bankers' acceptances,  in any such case maturing no more than ninety
(90)  days  after  the  date of  acquisition  thereof  and,  at the  time of the
acquisition thereof, the issuer's rating on its commercial paper is at least A-1
or P-1 from either S&P or Moody's  (or,  if at any time  neither S&P nor Moody's
shall be rating such obligations,  then the highest rating from other nationally
recognized rating services  acceptable to the  Administrative  Agent);  and (iv)
commercial  paper (other than  commercial  paper  issued by AXE,  Anixter or any
Subsidiary  of  Anixter or any of their  Affiliates),  domestic  and  Eurodollar
certificates of deposit, time deposits or bankers' acceptances, in any such case
maturing  no more than ninety  (90) days after the date of  acquisition  thereof
and, at the time of the  acquisition  thereof,  the issuer is a Lender and has a
rating on its commercial paper of at least A-2 or P-2 from either S&P or Moody's
(or, if at any time  neither S&P nor Moody's  shall be rating such  obligations,
then the equivalent  rating from other  nationally  recognized  rating  services
acceptable to the Administrative Agent), provided the amount of Cash Equivalents
under this clause (iv) shall not at any time exceed US$5,000,000.

     "Change of Control" shall occur if any "person," as such term is defined in
Section  13(d)(3) of the  Securities  Exchange  Act,  other than the Samuel Zell
Group, is or becomes the "beneficial  owner" (as defined in Rule 13d-3 under the
Securities Exchange Act), directly or indirectly, of 20% or more of the combined
voting power of AXE's or Anixter's outstanding  securities ordinarily having the
right to vote at elections of directors,  and such person at such time owns more
of such  combined  voting  power than the Samuel Zell Group.  "Class"  means the
character of certain  Loans as Committed  Loans,  Bid Loans or Foreign  Currency
Loans.

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

     "Code" means the Internal Revenue Code of 1986.

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

     "Commitment" means, as to each Lender, its obligation to (a) make Committed
Loans to Anixter  pursuant to Section  2.01 or (b)  purchase  participations  in
Foreign Currency Loans Obligations,  and in an aggregate principal amount at any
one time  outstanding  not to exceed the amount of such  Commitment set forth in
the Allocation Notice sent to such Lender.

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

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

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

     "Committed Loan Notice" means a notice of (a) a Committed Borrowing,  (b) a
conversion of Committed  Loans from one Type to the other, or (c) a continuation
of Committed Loans as the same Type,  pursuant to Section 2.02(a),  which, if in
writing, shall be substantially in the form of Exhibit A-1.

     "Competitive Bid" means a written offer by a Lender to make one or more Bid
Loans,  substantially  in the form of Exhibit B-2, duly  completed and signed by
such Lender.

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

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

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

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

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

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

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

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

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

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

     "Credit Extension" means each of the following: a Committed Borrowing,  Bid
Borrowing or Foreign

     Currency Borrowing.

     "Customary Permitted Liens" means:

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

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

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

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

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

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

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

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

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

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

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

     "Dollar  Equivalent"  means,  with  respect  to a  specified  amount of any
currency, the amount of US Dollars into which such amount of such currency would
be converted, based on the applicable Spot Rate of Exchange.

     "Domestic  Subsidiaries"  means  Anixter-Real  Estate,  Inc.,  an  Illinois
corporation,  Anixter Information Systems Corporation,  an Illinois corporation,
and Anixter Financial Inc., a Delaware corporation.  "Eligible Assignee" has the
meaning specified in Section 10.07(h).

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

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

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

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

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

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

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

     "Eurocurrency  Bid Margin" means the margin above or below the Eurocurrency
Rate to be added to or subtracted from the Eurocurrency Rate, which margin shall
be expressed in multiples of 1/100th of one basis point.

     "Eurocurrency  Rate" means, for any Eurocurrency Rate Loan for any Interest
Period,

     (a) in the case of a Foreign Currency Loan in British Pounds Sterling,  (i)
the rate per annum which  appears on the Reuters  Screen LIBO Page as the London
interbank  offered rate for deposits in British Pounds Sterling at approximately
11:00 a.m. (London, England time) on the first day of such Interest Period for a
term comparable to such Interest Period;  provided that if more than one rate is
specified on the Reuters Screen LIBO Page, the rate shall be the arithmetic mean
of all such rates; or (ii) if for any reason the rate described in clause (i) is
not available, the rate per annum (carried to five decimal places) determined by
the  Administrative  Agent as the  rate at  which  deposits  in  British  Pounds
Sterling in the approximate  amount of such Foreign  Currency Loan, and having a
maturity  comparable to such Interest Period,  are offered by the Administrative
Agent to  major  banks in the  interbank  market  at  approximately  11:00  a.m.
(London, England time) on the first day of such Interest Period; and

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

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

     "Eurocurrency  Rate Loan"  means a  Eurocurrency  Rate  Committed  Loan,  a
Eurocurrency Rate Margin Bid Loan or Foreign Currency Loan bearing interest at a
rate based on the Eurocurrency Rate.

     "Eurocurrency  Rate Margin Bid Loan" means a Bid Loan that bears interest a
rate based  upon the  Eurocurrency  Rate.  "Event of  Default"  means any of the
events or circumstances specified in Article VIII.

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

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

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

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

     "Financial Statement Delivery Date" means the 90th day following the
end of the fourth  Fiscal  Quarter  and the 45th day  following  the end of each
other Fiscal Quarter, in each Fiscal Year.

     "Fiscal Quarter" means a 13-week  accounting period of the Borrowers ending
on or about March 31, June 30, September 30 or December 31 of any Fiscal Year.

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

     "Fitch" means Fitch IBCA, Inc.

     "Foreign Currency  Borrowing" means a borrowing  consisting of simultaneous
Foreign  Currency Loans of the same Available  Foreign Currency from the Foreign
Currency Lenders pursuant to Section 2.04.

     "Foreign  Currency  Commitment"  means, as to each Foreign Currency Lender,
its  obligation to make Foreign  Currency  Loans to the  Borrowing  Subsidiaries
pursuant to Section 2.04, in an aggregate  principal Dollar Equivalent amount at
any one time  outstanding  not to exceed  the  amount of such  Lender's  Foreign
Currency  Commitment  set forth in the  Allocation  Notice sent to such  Foreign
Currency Lender.

     "Foreign  Currency Lender" means each of Bank of America,  Bank One, NA and
The Bank of Nova Scotia.

     "Foreign Currency Loan" means has the meaning specified in Section 2.04.

     "Foreign  Currency  Loan Note" means a promissory  note made by a Borrowing
Subsidiary in favor of a Foreign  Currency Lender  evidencing  Foreign  Currency
Loans made by such Foreign Currency Lender, substantially in the form of Exhibit
D-3.

     "Foreign  Currency  Loan Notice"  means a notice of (a) a Foreign  Currency
Borrowing,  or (b) a continuation  of Foreign  Currency Loans for a new Interest
Period,  pursuant to Section 2.05, which, if in writing,  shall be substantially
in the form of Exhibit A-2.

     "Foreign Currency Participation Funding Notice" means a written notice from
a Foreign  Currency Lender informing the  Administrative  Agent that an Event of
Default has occurred and is continuing and directing the Administrative Agent to
notify all Lenders to fund their participations in the Foreign Currency Loans as
provided in Section 2.06.

     "Foreign  Currency  Pro Rata Share"  means,  with  respect to each  Foreign
Currency Lender, the percentage  (carried out to the ninth decimal place) of the
Aggregate  Foreign  Currency  Commitments set forth on such Lender's  Allocation
Notice, as such share may be adjusted as contemplated herein.

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

     "Foreign Lender" has the meaning specified in Section 10.15.

     "Foreign  Overnight Rate" means,  for any day with respect to any amount in
any currency  (other than US  Dollars),  the rate of interest per annum at which
overnight  deposits in such currency,  in an amount  approximately  equal to the
amount with respect to which such rate is being determined, would be offered for
such day to major  banks in the London or other  applicable  offshore  interbank
market by Bank of America's London Branch.

     "Foreign   Pension   Plan"  means  any  pension  plan  or  other   deferred
compensation  plan,  program or arrangement  maintained or contributed to or for
the  benefit of  employees  of  Anixter,  any of its  Subsidiaries  or any ERISA
Affiliate,  which,  under the  applicable  local law,  is  required to be funded
through a trust or other funding  vehicle and which is governed by the laws of a
jurisdiction outside the United States of America.  "Foreign Subsidiaries" means
Anixter  Puerto Rico,  Inc.,  Anixter  Venezuela  Inc.,  Anixter  Thailand Inc.,
Anixter   Philippines  Inc.  and  any  of  Anixter's   Subsidiaries   which  are
incorporated  in any  jurisdiction  outside  of the  United  States,  and  their
respective successors and assigns.

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

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

     "Guarantors" means (a) Anixter, AXE, and each Domestic Subsidiary,  and (b)
each Subsidiary that becomes a Guarantor as provided in Section 6.11.

     "Guaranty"  means  the  Guaranty  made by the  Guarantors  in  favor of the
Administrative  Agent on behalf  of the  Lenders,  substantially  in the form of
Exhibit G (other than the Receivables Securitization SPV).

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

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

<PAGE>

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

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

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

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

     (e) Capital Leases and Synthetic Lease Obligations;

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

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

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

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

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

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

     "Interest  Period" means (a) as to each  Eurocurrency Rate Loan, the period
commencing on the date such  Eurocurrency Rate Loan is disbursed or (in the case
of  any  Eurocurrency  Rate  Committed  Loan)  converted  to or  continued  as a
Eurocurrency  Rate Loan and  ending on the date one,  two,  three or six  months
thereafter,  as selected by the related  Borrower in its Committed  Loan Notice,
Bid Request or Foreign  Currency Loan Notice,  as the case may be; and (b) as to
each Absolute Rate Loan, a period of not less than 14 days and not more than 180
days as selected by Anixter in its Bid Request; provided that:

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

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

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

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

     "IRS" means the United States Internal Revenue Service.

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

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

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

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

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

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

     "Loan" means an extension of credit by a Lender to a Borrower under Article
II in the form of a Committed Loan, Bid Loan or Foreign Currency Loan.

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

     "Loan Parties" means, collectively, the Borrowers and the Guarantors.

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

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

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

     "Maturity Date" means (a) October 6, 2005, (b) such earlier date upon which
the Commitments  may be terminated in accordance  with the terms hereof,  or (c)
such  earlier  date  on or  before  which  Anixter  shall  have  repaid  in cash
US$50,000,000  or  more  in  the  aggregate  of  the  principal  amount  of  the
Subordinated LYONs Note.

     "Minimum  Tranche" means (a) in the case of US Dollars,  US$5,000,000  or a
higher integral  multiple of US$1,000,000;  and (b) in the case of any Available
Foreign Currency,  an amount equal to US$5,000,000 or a higher integral multiple
of 1,000,000 units of such currency.

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

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

     "Notes" means, collectively, the Committed Loan Notes, the Bid Loan
Notes and the Foreign Currency Loan Notes.

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

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

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

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

     "Outstanding  Amount" means with respect to Committed  Loans, Bid Loans and
Foreign Currency Loans on any date, the aggregate  outstanding  principal Dollar
Equivalent  amount thereof after giving effect to any borrowings and prepayments
or repayments of Committed  Loans,  Bid Loans and Foreign Currency Loans, as the
case may be, occurring on such date.

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

     "PBGC" means the Pension Benefit Guaranty Corporation.

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

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

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

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

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

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

     "Property" means with respect to any Person, any real or personal property,
plant,  building,  facility,  structure,  equipment  or  unit,  or  other  asset
(tangible or intangible) owned, leased or operated by such Person.

     "Put Event" means a "Put Event" under and as defined in Section 1010 of the
Senior Note Indenture.

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

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

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

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

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

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

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

     "Request  for Credit  Extension"  means (a) with  respect  to a  Borrowing,
conversion or continuation of Committed Loans, a Committed Loan Notice, (b) with
respect to a Bid Loan,  a Bid  Request and (c) with  respect to a  Borrowing  or
continuation of Foreign Currency Loans, a Foreign Currency Loan Notice.

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

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

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

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

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

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

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

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

     "Securities Act" means the Securities Act of 1933.

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

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

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

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

<PAGE>

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

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

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

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

     "Spot Rate of Exchange"  means for any amount  denominated  in any currency
other than US  Dollars,  an amount of US Dollars  into which the  Administrative
Agent could  convert such currency by using the  applicable  quoted spot rate as
reported on the  appropriate  page of the Reuters Screen at 11:00 a.m.  (London,
England  time)  two  Business  Days  preceding  the day  such  determination  is
requested to be made.

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

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

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

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

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

     "364-Day Credit  Agreement"  means the 364-Day  Revolving  Credit Agreement
dated as of the date hereof among the  Borrowers,  the lenders party thereto and
Bank of America, as administrative agent.

     "Total  Outstandings"  means at any time the aggregate principal amount (or
Dollar Equivalent principal amount, as applicable) of all Loans.

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

     "Type" means (a) with respect to a Committed  Loan, its character as a Base
Rate Loan or a  Eurocurrency  Rate Loan,  (b) with  respect  to a Bid Loan,  its
character as an Absolute  Rate Loan or a  Eurocurrency  Rate Margin Bid Loan and
(c) with  respect  to a Foreign  Currency  Loan,  its  character  as a Loan in a
particular currency bearing interest at a rate based on the Eurocurrency Rate or
on the Foreign Overnight Rate.

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

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

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

     ARTICLE 1.02 Other Interpretive Provisions .

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

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

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

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

     (iv) The term  "documents"  includes  any and all  instruments,  documents,
agreements,  certificates,  notices,  reports,  financial  statements  and other
writings,  however  evidenced.  (b) In the computation of periods of time from a
specified  date to a later  specified  date,  the word  "from"  means  "from and
including;"  the words "to" and "until"  each mean "to but  excluding;"  and the
word "through" means "to and including."

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

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

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

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

     ARTICLE 1.06 Euro . In the event that  pursuant to Section 10.18 hereof any
amount is borrowed and repaid in the Euro rather than any particular  Applicable
Currency,  then  references  to such  Applicable  Currency  and all  definitions
related to or derived  from a reference  to such  Applicable  Currency  shall be
deemed to be, or be related to or derived  from,  references to the Euro, in the
sole  discretion of the applicable  Lender,  and shall be deemed modified to the
extent  necessary  to  effect  the  intent of this  Agreement  with  respect  to
borrowings in such Applicable Currency.

     ARTICLE 2. THE COMMITMENTS AND CREDIT EXTENSIONSARTICLE 3.

     ARTICLE 3.01 Committed Loans.

     Subject to the terms and conditions set forth herein, each Lender severally
agrees to make loans (each such loan, a  "Committed  Loan") to Anixter from time
to time on any  Business  Day  during the period  from the  Closing  Date to the
Maturity Date, in an aggregate  amount not to exceed at any time outstanding the
amount of such Lender's Commitment;  provided, however, that after giving effect
to any Committed  Borrowing,  (i) the aggregate  Outstanding Amount of all Loans
shall not exceed the Aggregate  Commitments  and (ii) the aggregate  Outstanding
Amount of the Committed  Loans of any Lender,  plus such Lender's Pro Rata Share
of the Outstanding  Amount of all Foreign Currency Loans,  shall not exceed such
Lender's Commitment.  Within the limits of each Lender's Commitment, and subject
to the other terms and conditions hereof,  Anixter may borrow under this Section
2.01, prepay under Section 2.07, and reborrow under this Section 2.01. Committed
Loans may be Base Rate Loans or  Eurocurrency  Rate Loans,  as further  provided
herein.

     ARTICLE 3.02 Borrowings, Conversions and Continuations of Committed Loans .

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

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

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

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

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

     ARTICLE 3.03 Bid Loans.

     (a) General.  Subject to the terms and  conditions  set forth herein,  each
Lender  agrees that  Anixter may from time to time request the Lenders to submit
offers to make  loans  (each such loan,  a "Bid  Loan") to Anixter  prior to the
Maturity  Date  pursuant to this Section  2.03;  provided,  however,  that after
giving  effect to any Bid  Borrowing,  the aggregate  Outstanding  Amount of all
Loans  (including Bid Loans) shall not exceed the Aggregate  Commitments.  There
shall not be more than ten different  Interest Periods in effect with respect to
Bid Loans at any time.

     (b)  Requesting  Competitive  Bids.  Anixter may request the  submission of
Competitive  Bids by  delivering a Bid Request to the  Administrative  Agent not
later  than  12:00  noon,  New York  time,  (i) one  Business  Day  prior to the
requested  date of any Bid Borrowing  that is to consist of Absolute Rate Loans,
or (ii) four Business Days prior to the requested date of any Bid Borrowing that
is to consist of  Eurocurrency  Rate Margin Bid Loans.  Each Bid  Request  shall
specify (i) the requested  date of the Bid Borrowing  (which shall be a Business
Day), (ii) the aggregate  principal amount of Bid Loans requested (which must be
US$10,000,000 or a whole multiple of US$1,000,000 in excess thereof),  (iii) the
Type of Bid Loans  requested,  and (iv) the duration of the Interest Period with
respect thereto, and shall be signed by a Responsible Officer of Anixter. No Bid
Request  shall  contain a request for (i) more than one Type of Bid Loan or (ii)
Bid  Loans  having  more than  three  different  Interest  Periods.  Unless  the
Administrative  Agent  otherwise  agrees  in its sole and  absolute  discretion,
Anixter  may not submit a Bid  Request if it has  submitted  another Bid Request
within the prior five Business Days.

     (c) Submitting Competitive Bids.

     (i) The Administrative  Agent shall promptly notify each Lender of each Bid
Request received by it from Anixter and the contents of such Bid Request.

     (ii) Each Lender may (but shall have no obligation to) submit a Competitive
Bid  containing  an offer to make one or more Bid Loans in  response to such Bid
Request.  Such Competitive Bid must be delivered to the Administrative Agent not
later  than 9:30  a.m.,  New York  time,  (A) on the  requested  date of any Bid
Borrowing that is to consist of Absolute Rate Loans, and (B) three Business Days
prior  to the  requested  date  of any  Bid  Borrowing  that  is to  consist  of
Eurocurrency Rate Margin Bid Loans; provided,  however, that any Competitive Bid
submitted by Bank of America in its capacity as a Lender in

     response to any Bid Request must be submitted to the  Administrative  Agent
not later than 9:15 a.m., New York time, on the date on which  Competitive  Bids
are  required  to be  delivered  by the other  Lenders in  response  to such Bid
Request.  Each  Competitive  Bid shall  specify (A) the proposed date of the Bid
Borrowing;  (B) the principal amount of each Bid Loan for which such Competitive
Bid is being made,  which principal  amount (x) may be equal to, greater than or
less than the Commitment of the bidding Lender, (y) must be US$5,000,000 or in a
whole multiple of  US$1,000,000  in excess  thereof,  and (z) may not exceed the
principal amount of Bid Loans for which Competitive Bids were requested;  (C) if
the  proposed  Bid  Borrowing  is to consist  of  Absolute  Rate Bid Loans,  the
Absolute Rate offered for each such Bid Loan and the Interest Period  applicable
thereto;  (D) if the proposed Bid Borrowing is to consist of  Eurocurrency  Rate
Margin  Bid  Loans,  the  Eurocurrency  Bid  Margin  with  respect  to each such
Eurocurrency  Rate Margin Bid Loan and the Interest Period  applicable  thereto;
and (E) the identity of the bidding Lender.

     (iii) Any  Competitive Bid shall be disregarded if it (A) is received after
the applicable time specified in clause (ii) above, (B) is not  substantially in
the form of a  Competitive  Bid as specified  herein,  (C) contains  qualifying,
conditional or similar language, (D) proposes terms other than or in addition to
those  set  forth  in the  applicable  Bid  Request,  or (E)  is  otherwise  not
responsive  to such Bid  Request.  Any  Lender  may  correct a  Competitive  Bid
containing  a  manifest  error  by  submitting  a  corrected   Competitive   Bid
(identified as such) not later than the applicable  time required for submission
of Competitive  Bids. Any such  submission of a corrected  Competitive Bid shall
constitute a  revocation  of the  Competitive  Bid that  contained  the manifest
error.  The  Administrative  Agent may, but shall not be required to, notify any
Lender of any manifest error it detects in a Lender's Competitive Bid.

     (iv) Subject only to the  provisions  of Sections  3.02,  3.03 and 4.02 and
clause (iii) above, each Competitive

     Bid shall be irrevocable.

     (d) Notice to Anixter of  Competitive  Bids. Not later than 10:00 a.m., New
York time,  (i) on the requested date of any Bid Borrowing that is to consist of
Absolute Rate Loans,  or (ii) three Business Days prior to the requested date of
any Bid Borrowing that is to consist of Eurocurrency  Rate Margin Bid Loans, the
Administrative  Agent shall  notify  Anixter of the identity of each Lender that
has  submitted a Competitive  Bid that complies with Section  2.03(c) and of the
terms of the offers contained in each such Competitive Bid.

     (e)  Acceptance of  Competitive  Bids.  Not later than 10:30 a.m., New York
time,  (i) on the  requested  date of any Bid  Borrowing  that is to  consist of
Absolute Rate Loans, and (ii) three Business Days prior to the requested date of
any Bid  Borrowing  that is to consist of  Eurocurrency  Rate  Margin Bid Loans,
Anixter shall notify the Administrative  Agent of its acceptance or rejection of
the offers notified to it pursuant to Section 2.03(d). Anixter shall be under no
obligation  to  accept  any  Competitive  Bid  and  may  choose  to  reject  all
Competitive  Bids.  In the case of  acceptance,  such notice  shall  specify the
aggregate  principal amount of Competitive Bids for each Interest Period that is
accepted.  Anixter may accept any Competitive Bid in whole or in part;  provided
that:

     (i) the aggregate principal amount of each Bid Borrowing may not exceed the
applicable amount set forth in the related Bid Request;

     (ii) the principal  amount of each Bid Loan must be  US$10,000,000  or in a
whole multiple of US$1,000,000 in excess thereof;

     (iii) the  acceptance  of offers may be made only on the basis of ascending
Absolute Rates or Eurocurrency Bid Margins within each Interest Period; and

     (iv)  Anixter  may not  accept  any  offer  that is  described  in  Section
2.03(c)(iii) or that otherwise fails to comply with the requirements hereof.

     (f)  Procedure for  Identical  Bids. If two or more Lenders have  submitted
Competitive  Bids at the same Absolute Rate or Eurocurrency  Bid Margin,  as the
case may be, for the same  Interest  Period,  and the result of accepting all of
such  Competitive  Bids in whole  (together with any other  Competitive  Bids at
lower Absolute Rates or Eurocurrency  Bid Margins,  as the case may be, accepted
for such  Interest  Period  in  conformity  with  the  requirements  of  Section
2.03(e)(iii))  would be to cause the aggregate  outstanding  principal amount of
the  applicable  Bid  Borrowing to exceed the amount  specified  therefor in the
related  Bid  Request,   then,   unless   otherwise   agreed  by  Anixter,   the
Administrative  Agent and such Lenders,  such Competitive Bids shall be accepted
as nearly as possible in proportion to the amount offered by each such Lender in
respect of such  Interest  Period,  at such Absolute  Rate or  Eurocurrency  Bid
Margin, without regard to the requirements of Section 2.03(e)(ii).

     (g)  Notice  to  Lenders  of   Acceptance   or  Rejection   of  Bids.   The
Administrative  Agent  shall  promptly  notify each  Lender  having  submitted a
Competitive Bid whether or not its offer has been accepted and, if its offer has
been  accepted,  of the  amount of the Bid Loan or Bid Loans to be made by it on
the date of the applicable Bid Borrowing. Any Competitive Bid or portion thereof
that is not  accepted by Anixter by the  applicable  time  specified  in Section
2.03(e) shall be deemed rejected.

     (h) Notice of  Eurocurrency  Rate.  If any Bid  Borrowing  is to consist of
Eurocurrency  Margin  Loans,  the  Administrative   Agent  shall  determine  the
Eurocurrency  Rate for the relevant  Interest Period,  and promptly after making
such  determination,   shall  notify  Anixter  and  the  Lenders  that  will  be
participating in such Bid Borrowing of such Eurocurrency Rate.

     (i) Funding of Bid Loans.  Each Lender that has received notice pursuant to
Section  2.03(g) that all or a portion of its  Competitive Bid has been accepted
by  Anixter  shall  make  the  amount  of  its  Bid  Loan(s)  available  to  the
Administrative  Agent  in  immediately  available  funds  at the  Administrative
Agent's  Office  not later than 1:00  p.m.,  New York  time,  on the date of the
requested Bid Borrowing.  Upon  satisfaction  of the  applicable  conditions set
forth in Section 4.02, the Administrative Agent shall make all funds so received
available to Anixter in like funds as received by the Administrative Agent.

     (j) Notice of Range of Bids. After each Competitive Bid auction pursuant to
this  Section  2.03,  the  Administrative  Agent  shall  notify each Lender that
submitted  a  Competitive  Bid in such  auction of the ranges of bids  submitted
(without  the bidder's  name) and  accepted for each Bid Loan and the  aggregate
amount of each Bid Borrowing.

     ARTICLE 3.04 Foreign  Currency  Loan  Commitment . Subject to the terms and
conditions of this Agreement,  each Foreign Currency Lender agrees to make loans
(each a "Foreign  Currency Loan" and collectively the "Foreign  Currency Loans")
in Available Foreign Currencies to the Borrowing  Subsidiaries during the period
from the Closing Date to the Maturity Date in a Dollar  Equivalent amount at any
time  outstanding  not to exceed the  Aggregate  Foreign  Currency  Commitments;
provided  that (i) the  Total  Outstandings  shall  not at any time  exceed  the
Aggregate  Commitments and (ii) the aggregate  Outstanding Amount of all Foreign
Currency Loans of any Foreign  Currency  Lender shall not at any time exceed the
Foreign  Currency  Commitment of such Foreign  Currency  Lender.  Subject to the
terms and conditions  hereof,  each  Borrowing  Subsidiary may borrow under this
Section  2.03,  prepay under  Section 2.07 and reborrow  under this Section 2.03
from time to time.

     ARTICLE 3.05 Procedure for Foreign Currency Borrowings .

     (a) Each  Foreign  Currency  Borrowing  and each  continuation  of  Foreign
Currency  Loans for a new  Interest  Period  shall be made  upon the  applicable
Borrowing Subsidiary's irrevocable notice to the Administrative Agent, which may
be given by telephone.  Each such notice must be received by the  Administrative
Agent not later than 11:00 a.m., New York time,  four Business Days prior to the
requested date of any Foreign Currency  Borrowing of, or continuation of Foreign
Currency  Loans.  Each such  telephonic  notice  must be  confirmed  promptly by
delivery to the Administrative  Agent of a written Foreign Currency Loan Notice,
appropriately  completed and signed by a Responsible  Officer of such  Borrowing
Subsidiary.  Each Foreign  Currency  Borrowing  of, or  continuation  of Foreign
Currency Loans shall be in a principal amount of the applicable Minimum Tranche.
Each Foreign Currency Loan Notice (whether  telephonic or written) shall specify
(i) whether such Borrowing Subsidiary is requesting a Foreign Currency Borrowing
or a continuation of Foreign Currency Loans for a new Interest Period,  (ii) the
requested date of the Borrowing or continuation, as the case may be (which shall
be a Business Day), (iii) the principal amount and Available Foreign Currency of
Foreign Currency Loans to be borrowed or continued, and (iv) the duration of the
Interest  Period with respect  thereto.  If such Borrowing  Subsidiary  fails to
specify a new Interest  Period in a Committed  Loan Notice,  then the applicable
Foreign  Currency  Loans shall be  continued  for a new  Interest  Period of one
month's duration.

     (b) Following receipt of a Foreign Currency Loan Notice, the Administrative
Agent shall promptly notify each Foreign Currency Lender of its Foreign Currency
Pro Rata  Share  of the  applicable  Foreign  Currency  Loans.  In the case of a
Foreign Currency  Borrowing,  each Foreign Currency Lender shall make the amount
of  its  Foreign  Currency  Loan  available  to  the  Administrative   Agent  in
immediately available funds at the applicable office of the Administrative Agent
specified for such Foreign  Currency on Schedule 10.02 not later than 1:00 p.m.,
local time of such  office,  on the Business  Day  specified  in the  applicable
Foreign Currency Loan Notice. Upon satisfaction of the applicable conditions set
forth in Section 4.02 (and, if such Borrowing is the initial  Credit  Extension,
Section  4.01),  the  Administrative  Agent  shall  make all  funds so  received
available to the  applicable  Borrowing  Subsidiary in like funds as received by
the  Administrative  Agent either by (i) crediting the account of such Borrowing
Subsidiary on the books of Bank of America with the amount of such funds or (ii)
wire  transfer  of such  funds,  in each case in  accordance  with  instructions
provided to the Administrative Agent by such Borrowing Subsidiary.

     (c) During the  existence  of a Default or Event of Default,  the  Required
Lenders  may demand  that any or all of the then  outstanding  Foreign  Currency
Loans be  converted  immediately  to Loans  bearing  interest at the  applicable
Foreign Overnight Rate.

     (d) The Administrative  Agent shall promptly notify Anixter and the Lenders
of the interest rate applicable to any Foreign Currency Loan upon  determination
of such interest rate. The  determination of the  Eurocurrency  Rate and Foreign
Overnight Rate by the Administrative Agent shall be conclusive in the absence of
manifest error. (e) After giving effect to all Foreign Currency Borrowings,  and
all continuations of Foreign Currency Loans as the same Type, there shall not be
more than ten Interest Periods in effect with respect to Foreign Currency Loans.

     ARTICLE 3.06 Participations in Foreign Currency Loans.

     (a) Each Lender agrees that it shall at all times have a participation  in,
and  acknowledges  that it is irrevocably and  unconditionally  obligated,  upon
receipt of notice that the Administrative  Agent has received a Foreign Currency
Participation  Funding  Notice,  to fund (or to cause an  Affiliate to fund) its
participation  in, each outstanding  Foreign Currency Loan in an amount equal to
its Pro Rata Share of the amount of such Foreign Currency Loan.

     (b) The  Administrative  Agent  shall  promptly  notify  each Lender of its
receipt of a Foreign Currency Participation Funding Notice. Promptly (and in any
event within three Business Days) upon receipt of such Notice, each Lender shall
(or shall cause an Affiliate to) make available to the Administrative  Agent for
the  account  of the  Foreign  Currency  Lenders  an  amount  in the  applicable
currencies and in Same Day Funds equal to its Pro Rata Share of all  outstanding
Foreign Currency Loans. If any Lender so notified fails to make available to the
Administrative  Agent for the account of the Foreign  Currency  Lenders the full
amount of such Lender's participations in all Foreign Currency Loans by the date
which  is  three  Business  Days  after  its  receipt  of such  notice  from the
Administrative Agent, then interest shall accrue on such Lender's obligations to
fund such  participations,  from such  date to the date  such  Lender  pays such
obligations in full, at a rate per annum equal to the Foreign  Overnight Rate in
effect from time to time during such period.

     (c)  From  and  after  the  date on which a  Foreign  Currency  Lender  has
delivered to the Administrative Agent a Foreign Currency  Participation  Funding
Notice,  all funds  received by the Foreign  Currency  Lenders in payment of the
Foreign  Currency Loans,  interest  accrued thereon and other amounts payable in
respect  thereof  shall be  delivered  by each  Foreign  Currency  Lender to the
Administrative  Agent,  in the  same  funds as those  received  by such  Foreign
Currency  Lender,  to be distributed to all Lenders in accordance with their Pro
Rata Shares (i.e.,  giving effect to the funding of  participations  pursuant to
this  Section  2.06),  except  that (i) the Pro Rata  Share of such funds of any
Lender  that has not funded  its  participations  as  provided  herein  shall be
retained by such  Foreign  Currency  Lender,  and (ii)  interest  accrued on any
portion of any  Foreign  Currency  Loan prior to the  Lenders'  funding of their
respective  participations  therein  shall be retained by such Foreign  Currency
Lender.

     (d) If the Administrative  Agent or any Foreign Currency Lender is required
at any time to return to a Borrower,  or to a trustee,  receiver,  liquidator or
custodian,  or any official in any  bankruptcy  or  insolvency  proceeding,  any
portion of any payment made by such Borrower to the Administrative Agent or such
Foreign  Currency Lender in respect of any Foreign Currency Loan or any interest
or fee  thereon,  each  Lender  shall,  on demand of the  Administrative  Agent,
forthwith  return to the  Administrative  Agent for the account of such  Foreign
Currency  Lender the amount of its Pro Rata Share of the amount so  returned  by
the  Administrative  Agent or such Foreign Currency Lender plus interest thereon
from the date such  demand is made to the date such  amount is  returned by such
Lender to the  Administrative  Agent,  at a rate per annum  equal to the Foreign
Overnight Rate from time to time in effect.

     (e)  The  Required   Lenders,   the  Foreign   Currency   Lenders  and  the
Administrative  Agent may agree on any other  reasonable  method (such as making
assignments of Foreign Currency Loans) for sharing the risks of Foreign Currency
Loans  ratably  among all Lenders  according to their Pro Rata Shares so long as
such method does not materially disadvantage any Lender.

     ARTICLE 3.07 Prepayments.

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

     (b) No Bid Loan may be prepaid  without the prior consent of the applicable
Lender. The Borrowing Subsidiaries may, upon notice to the Administrative Agent,
at any time or from time to time  voluntarily  prepay Foreign  Currency Loans in
whole or in part without premium or penalty;  provided that (i) such notice must
be received  by the  Administrative  Agent not later than 11:00  a.m.,  New York
time,  four Business  Days prior to any date of  prepayment of Foreign  Currency
Loans; and (ii) any prepayment of Foreign Currency Loans shall be in a principal
amount of the  applicable  Minimum  Tranche.  Each such notice shall specify the
date and amount of such prepayment and the Foreign Currency Loans to be prepaid.
The  Administrative  Agent will promptly notify each Foreign  Currency Lender of
its receipt of each such notice,  and of such Foreign Currency  Lender's Foreign
Currency  Pro  Rata  Share  of such  prepayment.  If such  notice  is given by a
Borrowing  Subsidiary,  such Borrowing Subsidiary shall make such prepayment and
the payment amount specified in such notice shall be due and payable on the date
specified  therein.   Any  prepayment  of  a  Foreign  Currency  Loan  shall  be
accompanied  by all  accrued  interest  thereon,  together  with any  additional
amounts required pursuant to Section 3.05. Each such prepayment shall be applied
to the Foreign Currency Loans of the Foreign Currency Lenders in accordance with
their respective Foreign Currency Pro Rata Shares.

     (c) If for any  reason  the  Outstanding  Amount  of all  Loans at any time
exceeds  the  Aggregate   Commitments  then  in  effect,   the  Borrowers  shall
immediately prepay Loans in an aggregate amount equal to such excess.

     ARTICLE 3.08  Reduction or  Termination  of Commitments . Anixter may, upon
notice to the  Administrative  Agent,  terminate the Aggregate  Commitments,  or
permanently reduce the Aggregate Commitments to an amount not less than the then
Outstanding  Amount of all Loans;  provided  that (i) any such  notice  shall be
received by the  Administrative  Agent not later than 11:00 a.m.,  five Business
Days prior to the date of  termination  or reduction,  and (ii) any such partial
reduction shall be in an aggregate  amount of US$1,000,000 or any whole multiple
of US$500,000 in excess thereof.  The Administrative Agent shall promptly notify
the Lenders of any such notice of  reduction  or  termination  of the  Aggregate
Commitments.  Once reduced in accordance with this Section,  the Commitments may
not be increased. Any reduction of the Aggregate Commitments shall be applied to
the Commitment of each Lender according to its Pro Rata Share. All facility fees
accrued until the effective date of any termination of the Aggregate Commitments
shall be paid on the effective date of such termination.

     ARTICLE 3.09 Repayment of Loans.

     (a) Anixter  shall repay to the Lenders on the Maturity  Date the aggregate
principal amount of Committed Loans outstanding on such date.

     (b)  Anixter  shall  repay  each Bid  Loan on the last day of the  Interest
Period in respect thereof.  Each Borrowing Subsidiary shall repay to the Foreign
Currency Lenders on the Maturity Date the aggregate  principal amount of Foreign
Currency Loans of such Borrower outstanding on such date.

     ARTICLE 3.010 Interest.

     (a)  Subject  to  the  provisions  of  subsection   (b)  below,   (i)  each
Eurocurrency  Rate  Committed  Loan  shall  bear  interest  on  the  outstanding
principal  amount thereof for each Interest  Period at a rate per annum equal to
the Eurocurrency Rate for such Interest Period plus the Applicable Margin;  (ii)
each Base Rate Committed Loan shall bear interest on the  outstanding  principal
amount thereof from the  applicable  borrowing date at a rate per annum equal to
the Base  Rate  plus the  Applicable  Margin;  (iii)  each Bid Loan  shall  bear
interest on the outstanding principal amount thereof for each Interest Period at
a rate per annum equal to the  Eurocurrency  Rate for such Interest  Period plus
(or  minus)  the  Eurocurrency  Bid  Margin,  or at the  Absolute  Rate for such
Interest  Period,  as the case may be; and (iv) each Foreign Currency Loan shall
bear  interest on the  outstanding  principal  amount  thereof for each Interest
Period at a rate per  annum  equal to the sum of (A) the  Eurocurrency  Rate for
such Interest Period plus (B) the Applicable Margin.

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

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

     ARTICLE 3.011 Fees.

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

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

     (ii) In addition, Anixter shall pay to the Administrative Agent for its own
account an administration  fee of US$3,000 for each Bid Request submitted to the
Administrative Agent (whether or not any bids are submitted or accepted),  which
fee shall be due and payable on the date such Bid Request is submitted.

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

     ARTICLE 3.012 Computation of Interest and Fees . Computation of interest on
Base Rate  Loans  computed  based on Bank of  America's  "prime  rate"  shall be
calculated  on the basis of a year of 365 or 366 days,  as the case may be,  and
the actual number of days elapsed.  Computation of interest on Foreign  Currency
Loans in British  Pounds  Sterling shall be calculated on the basis of a year of
365 days, and the actual number of days elapsed.  Computation of all other types
of interest and all fees shall be  calculated on the basis of a year of 360 days
and the actual  number of days  elapsed,  which results in a higher yield to the
payee thereof than a method based on a year of 365 or 366 days.  Interest  shall
accrue on each Loan for the day on which the Loan is made,  and shall not accrue
on a Loan, or any portion thereof, for the day on which the Loan or such portion
is paid,  provided  that any Loan  that is repaid on the same day on which it is
made shall bear interest for one day.

     ARTICLE 3.013 Evidence of Debt . The Credit  Extensions made by each Lender
shall be evidenced by one or more accounts or records  maintained by such Lender
and by the Administrative Agent in the ordinary course of business. The accounts
or records  maintained  by the  Administrative  Agent and each  Lender  shall be
conclusive  absent manifest error of the amount of the Credit Extensions made by
the Lenders to the Borrowers and the interest and payments thereon.  Any failure
so to record or any error in doing so shall  not,  however,  limit or  otherwise
affect the  obligation of the  Borrowers  hereunder to pay any amount owing with
respect to the Loans.  In the event of any  conflict  between the  accounts  and
records   maintained  by  any  Lender  and  the  accounts  and  records  of  the
Administrative  Agent in respect of such  matters,  the  accounts and records of
such Lender  shall  control.  Upon the  request of any Lender  made  through the
Administrative  Agent,  such Lender's Loans may be evidenced by a Committed Loan
Note and/or a Competitive Bid Note, as applicable,  in addition to such accounts
or records.  Each Lender may attach schedules to its Note(s) and endorse thereon
the date, Type (if applicable),  amount and maturity of the applicable Loans and
payments with respect thereto.

     ARTICLE 3.014 Payments Generally.

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

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

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

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

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

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

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

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

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

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

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

     ARTICLE  3.015  Sharing of Payments . If, other than as expressly  provided
elsewhere  herein,  any Lender shall obtain on account of the Loans of any Class
made by it, any payment (whether voluntary, involuntary, through the exercise of
any right of set-off,  or  otherwise)  in excess of its ratable  share (or other
share contemplated  hereunder) thereof, such Lender shall immediately (a) notify
the  Administrative  Agent of such fact, and (b) purchase from the other Lenders
such  participations  in the  Loans  of such  Class  made by  them as  shall  be
necessary to cause such purchasing Lender to share the excess payment in respect
of such Class of Loan or such participations,  as the case may be, pro rata with
each of them;  provided,  however,  that if all or any  portion  of such  excess
payment is thereafter  recovered from the purchasing Lender, such purchase shall
to that extent be rescinded and each other Lender shall repay to the  purchasing
Lender the purchase price paid  therefor,  together with an amount equal to such
paying Lender's  ratable share (according to the proportion of (i) the amount of
such paying  Lender's  required  repayment to (ii) the total amount so recovered
from the  purchasing  Lender) of any interest or other amount paid or payable by
the purchasing Lender in respect of the total amount so recovered. Each Borrower
agrees that any Lender so purchasing a participation from another Lender may, to
the  fullest  extent  permitted  by law,  exercise  all its  rights  of  payment
(including  the right of set-off,  but subject to Section 10.09) with respect to
such  participation  as fully as if such Lender were the direct  creditor of the
Borrowers in the amount of such  participation.  The  Administrative  Agent will
keep records  (which shall be conclusive  and binding in the absence of manifest
error) of  participations  purchased  under this  Section  and will in each case
notify the Lenders following any such purchases or repayments.  Each Lender that
purchases a  participation  pursuant to this  Section  shall from and after such
purchase have the right to give all notices, requests,  demands,  directions and
other  communications  under this  Agreement  with respect to the portion of the
Obligations  purchased to the same extent as though the  purchasing  Lender were
the original owner of the Obligations purchased.

     ARTICLE  3.016  Borrowing  Subsidiaries  . (a)  Anixter may  designate  any
Foreign   Subsidiary  as  a  Borrowing   Subsidiary  with  the  consent  of  the
Administrative Agent. Upon the receipt and execution by the Administrative Agent
of a Borrowing  Subsidiary Agreement in the form of Exhibit C-1 executed by such
Subsidiary and Anixter,  such Subsidiary  shall be a Borrowing  Subsidiary and a
party to this Agreement.

     (b) The  obligation  of each  Foreign  Currency  Lender  to make a  Foreign
Currency  Loan  on the  occasion  of  the  first  Borrowing  by  each  Borrowing
Subsidiary  is  subject  to  the   satisfaction   of  the  condition   that  the
Administrative Agent shall have received the following:

     (i) a Foreign  Currency Loan Note payable to each Foreign  Currency  Lender
signed by such Borrowing Subsidiary;

     (ii) all documents as shall  reasonably  demonstrate  the existence of such
Borrowing  Subsidiary,  the  corporate  power and  authority  of such  Borrowing
Subsidiary  to enter  into  and the  validity  with  respect  to such  Borrowing
Subsidiary of this  Agreement and the other Loan Documents and any other matters
relevant  hereto  (including  an opinion of counsel),  all in form and substance
satisfactory to the Administrative Agent; and

           (iii)  any  governmental  and  third  party  approvals  necessary  or
           advisable in connection with the execution,  delivery and performance
           of this Agreement by such Borrowing Subsidiary.

     (c) Any Subsidiary  shall cease to be a Borrowing  Subsidiary  hereunder at
such  time as no  Loans  shall  be  outstanding  to  such  Subsidiary  and  such
Subsidiary  and Anixter shall have executed and delivered to the  Administrative
Agent a Borrowing  Subsidiary  Termination  in the form of Exhibit  C-2.  Upon a
Borrowing Subsidiary's liquidation, dissolution or disposal of to a person other
than  Anixter  or  any  Subsidiary,  all  Loans  outstanding  to  any  Borrowing
Subsidiary  shall be due and  payable  and such  Subsidiary  shall no  longer be
entitled to obtain any extensions of credit hereunder.

     ARTICLE 3.017 Currency  Exchange  Fluctuations . If on any Computation Date
the Administrative  Agent shall have determined that the then outstanding Dollar
Equivalent  principal  amount of the Total  Outstandings  exceeds the  Aggregate
Commitments due to a change in applicable  rates of exchange between US Dollars,
on the one hand,  and any  Applicable  Currency,  on the other hand by an amount
equal to or in excess of US$1,000,000,  then the Administrative Agent shall give
notice to Anixter  that a prepayment  is required  under this  Section,  and the
Borrowers agree thereupon to make  prepayments of Loans such that,  after giving
effect to such prepayment,  the Total Outstandings will not exceed the Aggregate
Commitments.

     ARTICLE 3.018 Participation Obligations Unconditional.

     (a) Each Lender's obligation to purchase participation interests in Foreign
Currency Loans pursuant to Section 2.06 shall be absolute and  unconditional and
shall not be affected by any circumstance whatsoever, including (a) any set-off,
counterclaim,  recoupment,  defense or other  right  which such  Lender may have
against  any other  Lender,  any  Borrower  or any other  Person  for any reason
whatsoever;  (b) the occurrence or continuance of an Event of Default, a Default
or a Material  Adverse Effect;  (c) any breach of this Agreement by any Borrower
or any other Lender; (d) any inability of any Borrower to satisfy the conditions
precedent  to borrowing  set forth in this  Agreement on the date upon which any
Foreign  Currency  Loan is to be refunded or any  participation  interest in any
Loan is to be  purchased;  or (e) any  other  circumstance,  happening  or event
whatsoever, whether or not similar to any of the foregoing.

     (b) Notwithstanding the provisions of subsection (a) above, no Lender shall
be required  to purchase a  participation  interest in a Foreign  Currency  Loan
pursuant to Section 2.06 if, at least two  Business  Days prior to the making of
such Foreign  Currency Loan, the  Administrative  Agent and the Foreign  Lenders
received written notice from such Lender specifying that such Lender believed in
good faith that one or more of the  conditions  precedent  to the making of such
Loan were not  satisfied  (and  detailing  its basis for such good faith belief)
and,  in fact,  such  conditions  precedent  to the making of such Loan were not
satisfied at the time of the making of such Loan;  provided that the  obligation
of such Lender to make such Loan and/or to purchase such participation  interest
shall be  reinstated  upon the  earlier  of (i) the  date on which  such  Lender
notifies the  Administrative  Agent that its prior notice has been  withdrawn or
(ii) the date on which all  conditions  precedent  to the making of such Foreign
Currency  Loan have been  satisfied  (or waived by the  Required  Lenders or all
Lenders, as applicable).

     ARTICLE 4. TAXES, YIELD PROTECTION AND ILLEGALITY

     ARTICLE 4.01 Taxes.

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

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

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

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

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

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

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

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

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

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

     (d)  Concurrently  with each payment of interest on any  Eurocurrency  Rate
Loan,  the  applicable  Borrower  shall pay each  Lender  the  Associated  Costs
referred to in Schedule 1.01, as applicable.

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

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

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

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

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

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

     ARTICLE 4.06 Matters Applicable to all Requests for Compensation.

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

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

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

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

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

     ARTICLE 5. CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

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

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

(i)        executed counterparts of this Agreement, sufficient in number for
           distribution to the Administrative Agent, each Lender and the
           Borrowers;

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

(iii)      Bid Loan Notes executed by Anixter in favor of each Lender requesting
           such  a  Note,  each  in  the  principal   amount  of  the  Aggregate
           Commitments;

(iv)       Foreign  Currency  Loan Notes  executed by the  Borrowers in favor of
           each Foreign  Currency  Lender  requesting  such a Note,  each in the
           principal amount of the Aggregate Foreign Currency Commitments;

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

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

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

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

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

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

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

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

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

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

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

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

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

     ARTICLE 6. REPRESENTATIONS AND WARRANTIES

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

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

     ARTICLE 6.02 Authority.

     (a)  AXE,  Anixter  and  each  Subsidiary  of  Anixter  party to any of the
Transaction  Documents  has the  requisite  corporate  power  and  authority  to
execute,  deliver  and  perform its  obligations  under each of the  Transaction
Documents executed by it, or to be executed by it.

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

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

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

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

     ARTICLE  6.05   Governmental   Consents  .  The  execution,   delivery  and
performance of each Transaction  Document to which it is a party by AXE, Anixter
and each Subsidiary of Anixter, and the transactions contemplated thereby do not
and will not require any  registration  with,  consent or approval of, or notice
to, or other  action with or by, any  Governmental  Authority,  except  filings,
consents  or notices  which have been  made,  obtained  or given and are in full
force and effect. ARTICLE 6.06 Governmental Regulation . Neither AXE nor Anixter
nor any of  Anixter's  Subsidiaries  is subject to  regulation  under the Public
Utility  Holdings  Company Act of 1935,  the Federal  Power Act, the  Interstate
Commerce  Act,  the  Investment  Company  Act of 1940 or any  other  statute  or
regulation  of any  Governmental  Authority  such  that  its  ability  to  incur
indebtedness   is  limited  or  its  ability  to  consummate  the   transactions
contemplated  hereby  or  by  the  other  Transaction  Documents  is  materially
impaired.

     ARTICLE 6.07 Financial Position.

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

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

     ARTICLE 6.08 Litigation; Adverse Effects.

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

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

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

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

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

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

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

     ARTICLE  6.014  Requirements  of  Law .  Each  of  AXE,  Anixter  and  each
Subsidiary of Anixter is in compliance with all  Requirements of Law (including,
without  limitation,  the Securities  Act and the  Securities  Exchange Act, the
applicable  rules  and  regulations  thereunder,   and  state  securities  laws)
applicable to it and its business,  where the failure to so comply would have or
could be reasonably  expected to have a Material  Adverse Effect.  ARTICLE 6.015
Patents, Trademarks,  Permits, Etc. Anixter and each Subsidiary of Anixter owns,
is licensed  or  otherwise  has the lawful  right to use, or has all permits and
other approvals of Governmental Authorities, patents, trademarks, service marks,
trade names, copyrights, technology, know-how and processes used in or necessary
for the conduct of its business as currently conducted which are material to its
financial condition, business, operations, assets and prospects, individually or
taken as a whole.  The use of such permits and other  approvals of  Governmental
Authorities,  patents,  trademarks,  service  marks,  trade  names,  copyrights,
technology,  know-how and processes by each Borrower or any such Subsidiary does
not  infringe  on  the  rights  of  any  Person,  subject  to  such  claims  and
infringements  the  existence  of which do not have or could not  reasonably  be
expected to have a Material Adverse Effect. The consummation of the transactions
contemplated  by the  Transaction  Documents will not impair the ownership of or
rights  under (or the  license  or other  right to use,  as the case may be) any
permits and governmental approvals,  patents,  trademarks,  service marks, trade
names,  copyrights,  technology,  know-how or  processes  by Anixter or any such
Subsidiary  in any manner  which has or could  reasonably  be expected to have a
Material Adverse Effect.

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

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

     ARTICLE 6.018  Solvency . Each Loan Party is Solvent after giving effect to
the  transactions  contemplated  by this  Agreement  and the  other  Transaction
Documents and the payment and accrual of all  Transaction  Costs with respect to
any of the  foregoing.  ARTICLE 6.019 Assets and  Properties . AXE,  Anixter and
each  Subsidiary  of Anixter has good title to all of the assets  (tangible  and
intangible)  owned by it, except for  imperfections of title (including Liens to
the extent  permitted  under Section  7.02(b)) which in the aggregate  could not
reasonably be expected to have a Material  Adverse  Effect,  and all such assets
are free and clear of all Liens, except as otherwise  specifically  permitted by
the  terms and  provisions  of this  Agreement  and the  other  Loan  Documents.
Substantially  all of the assets and  properties  owned by, leased to or used by
each Borrower or any Domestic Subsidiary of Anixter are in good repair,  working
order and condition,  excepting ordinary wear and tear and are free and clear of
any known defects except such defects as do not substantially interfere with the
continued use thereof in the conduct of normal operations.

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

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

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

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

     ARTICLE 7. AFFIRMATIVE COVENANTSARTICLE 8.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

     ARTICLE 9. NEGATIVE COVENANTSARTICLE 10.

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

     ARTICLE  10.01  Indebtedness  . No Borrower  shall,  and Anixter  shall not
permit any member of the Consolidated  Group to, directly or indirectly  create,
incur,  assume or otherwise become or remain directly or indirectly  liable with
respect to any Indebtedness, except:

     (i) the Obligations and the  "Obligations" as defined in the 364-Day Credit
Agreement;

     (ii) the Existing Indebtedness;

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

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

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

     (vi) Indebtedness of Anixter to any Subsidiary;

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

     (viii) the Subordinated LYONs Note;

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

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

     provided  that  the  aggregate  principal  amount  of  Indebtedness  of all
Subsidiaries owing to Persons other than to Anixter or another Subsidiary at any
time  (other  than  Indebtedness  (i) in  respect  of the  Obligations  and  the
"Obligations"  as defined in the 364-Day Credit Agreement and (ii) arising under
Receivables Securitization Transactions) shall not exceed US$100,000,000.

     ARTICLE 10.02 Sales of Assets; Liens.

     (a) Limitation on Sales.  No Borrower  shall,  and Anixter shall not permit
any Subsidiary of Anixter to,  directly or indirectly  sell,  assign,  transfer,
lease,  convey or  otherwise  dispose of any  properties  or assets,  including,
without  limitation,  any capital stock of any Subsidiary,  whether now owned or
hereafter acquired, or any income or profits therefrom, except for:

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

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

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

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

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

     (vi)  transfers of assets to any  Affiliate for less than fair market value
to the extent  such  transfer  constitutes  a permitted  Investment  pursuant to
Section 7.03; and (vii) Receivables Securitization  Transactions as to which the
outstanding  aggregate investment or principal amount of claims held at any time
by all  purchasers,  assignees  or other  transferees  of (or of  interests  in)
receivables  and  other  rights to  payment  in all  Receivables  Securitization
Transactions shall not at any time exceed in the aggregate US$350,000,000.

     (b) Liens. No Borrower  shall,  and Anixter shall not permit any Subsidiary
of Anixter to, directly or indirectly create,  incur,  assume or permit to exist
any Lien on or with respect to any of its Property  (including all capital stock
of any Subsidiary of Anixter) except:

     (i) Customary Permitted Liens;

     (ii) Permitted Existing Liens;

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

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

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

     (vi) Liens on the assets of Foreign  Subsidiaries  which are not Borrowers;
provided,  the aggregate amount of Indebtedness  secured by such Liens shall not
exceed the Dollar Equivalent of US$50,000,000; and

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

     ARTICLE 10.03 Investments . No Borrower shall, and Anixter shall not permit
any of its  Subsidiaries  to,  directly or indirectly make or commit to make any
advance,  loan, extension of credit or capital contribution,  or purchase of any
stock, bonds, notes, debentures or other securities or evidences of indebtedness
of, or make any other investment in, any Person, including,  without limitation,
any  Affiliate  of  Anixter  (all  such   transactions   being  referred  to  as
"Investments") except:

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

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

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

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

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

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

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

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

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

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

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

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

     ARTICLE 10.04  Accommodation  Obligations . No Borrower shall,  and Anixter
shall not permit any Subsidiary of Anixter to, directly or indirectly, create or
become or be liable  with  respect  to any  Accommodation  Obligation  involving
Indebtedness  of AXE or  any  Affiliate  of AXE  which  is not a  Subsidiary  of
Anixter.  In  addition,  no Borrower  shall,  and  Anixter  shall not permit any
Subsidiary  to,  directly  or  indirectly,  create or  become or be liable  with
respect to any Accommodation Obligation except:

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

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

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

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

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

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

     ARTICLE 10.05  Restricted  Payments . No Borrower shall,  and Anixter shall
not permit any Subsidiary of Anixter to, directly or indirectly  declare or make
any Restricted Payment, except:

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

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

     ARTICLE  10.06 Conduct of Business . No Borrower  shall,  and Anixter shall
not permit any of its  Subsidiaries  to,  directly or  indirectly  engage in any
business  other  than  the  business  engaged  in by  Anixter  and  all  of  its
Subsidiaries  on the  date  hereof  and any  business  activities  substantially
similar or related thereto.  No Borrower shall, and Anixter shall not permit any
of its  Subsidiaries  to, enter into any interest  rate,  commodity,  or foreign
currency  exchange,  swap,  collar,  cap,  option,  forward,  futures or similar
agreements other than Hedging Contracts.

     ARTICLE 10.07 Transactions with Affiliates . No Borrower shall, and Anixter
shall not permit any other  Subsidiary to, directly or indirectly  enter into or
permit to exist any transaction  (including,  without limitation,  the purchase,
sale,  lease or exchange of any property or the  rendering of any service)  with
any of its  Affiliates  that are not  Subsidiaries  of Anixter on terms that are
less favorable to it than those fair and reasonable terms that might be obtained
in a comparable arms-length  transaction at the time (other than payments to AXE
in respect of directors'  fees and reasonable  allocated  expenses not to exceed
US$3,000,000 per year in the aggregate).

     ARTICLE 10.08 Restriction on Fundamental Changes.

     (a) No Borrower shall, and Anixter shall not permit any of its Subsidiaries
to, directly or indirectly enter into any merger or consolidation, or liquidate,
wind-up or dissolve (or suffer any liquidation or dissolution),  discontinue its
business  or convey,  lease,  sell,  transfer  or  otherwise  dispose of, in one
transaction  or  series  of  transactions,  all or any  substantial  part of its
business or Property, whether now or hereafter acquired, except:

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

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

     (b) No Borrower shall,  and Anixter shall not permit its  Subsidiaries  to,
acquire by purchase or  otherwise  any  property or assets of, or stock or other
evidence of beneficial  ownership of, any Person,  except in the ordinary course
of its business or to the extent permitted pursuant to Section 7.03.

     ARTICLE 10.09 Employee  Benefit  Matters . No Borrower  shall,  and Anixter
shall not permit any of its ERISA  Affiliates to do any of the following  which,
individually,  or in the aggregate,  could reasonably be expected to result in a
Material Adverse Effect:

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

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

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

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

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

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

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

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

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

     ARTICLE 10.010  Environmental  Liabilities . No Borrower shall, and Anixter
shall not permit any of its  Subsidiaries  to, become subject to any Liabilities
and Costs which could  reasonably be expected to have a Material  Adverse Effect
and which arise out of or are related to (a) the Release or  threatened  Release
at any location of any Contaminant into the environment,  or any Remedial Action
in response  thereto,  or (b) any  violation  of any  environmental,  health and
safety Requirements of Law.

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

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

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

     ARTICLE 10.014 Hedging Contracts . No Borrower shall, and Anixter shall not
permit any of its Subsidiaries to, enter into any Hedging Contract other than in
the  ordinary  course of its  business to hedge actual  interest  rate,  foreign
currency or commodity exposure.

     ARTICLE 10.015 Receivables Securitization Transactions . No Borrower shall,
and Anixter shall not permit any Subsidiary to, permit the outstanding aggregate
investment  or  principal  amount of claims  held by  purchasers,  assignees  or
transferees of (or of interests in) receivables of Anixter and its  Subsidiaries
in connection with  Receivables  Securitization  Transactions to exceed a Dollar
Equivalent amount of US$350,000,000.

     ARTICLE  10.016 Minimum  Consolidated  Net Worth . No Borrower shall permit
Consolidated Net Worth at any time to be less than (i) US$375,000,000  plus (ii)
fifty percent (50%) of Consolidated Net Income of the Consolidated Group in each
Fiscal Quarter ending after September 30, 2000 (with no deduction for a net loss
in any such Fiscal Quarter).

     ARTICLE  10.017  Maximum  Leverage  Ratio . No  Borrower  shall  permit the
Leverage Ratio as of the end of any Fiscal Quarter set forth below to be greater
than the ratio set forth below opposite such Fiscal Quarter:

     Fiscal       Quarters       Ending       Maximum       Leverage       Ratio

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

     | ARTICLE  1.01  Minimum  Consolidated  Fixed  Charge  Coverage  Ratio . No
Borrower shall permit the Consolidated Fixed Charge Coverage Ratio calculated at
the end of each Fiscal Quarter for the period of the immediately  preceding four
Fiscal  Quarters  to be less than (a) 2.00 to 1 for any period  ending  prior to
December 31, 2001,  (b) 2.50 to 1 for any period ending on or after December 31,
2001 but prior to June 30,  2003,  and (c) 3.0 to 1 for any period  ending on or
after June 30, 2003.

     ARTICLE 1.02 Capital Expenditures . No Borrower shall and Anixter shall not
permit any of its  Subsidiaries to, in any Fiscal Year,  purchase,  invest in or
otherwise acquire,  including by Capital Leases,  additional Property, plant and
equipment or other fixed assets which capital expenditures,  net of dispositions
of fixed assets during such Fiscal Year (determined based upon the lesser of the
book value of such disposed  assets or the net cash proceeds  received),  exceed
the sum of  US$50,000,000  in the aggregate  plus the  difference,  if positive,
between (1) the maximum aggregate amount of such capital expenditures  permitted
pursuant to this Section 7.19 for the immediately  preceding Fiscal Year and (2)
the aggregate  amount of actual capital  expenditures  for such preceding Fiscal
Year.

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

     ARTICLE 2. EVENTS OF DEFAULT AND REMEDIES ARTICLE 3.

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

     Event of Default:

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

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

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

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

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

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

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

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

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

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

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

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

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

     (l) Guaranty Default. Any party to the Guaranty, or any Person on behalf of
such party, shall terminate

     or revoke  any of its  obligations  thereunder  or breach  any of the terms
thereof, or the Guaranty shall otherwise become unenforceable for any reason.

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

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

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

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

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

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

ARTICLE 4.
                              ADMINISTRATIVE AGENT

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

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

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

ARTICLE 4.04                Reliance by Administrative Agent.

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

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

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

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

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

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

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

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

                       ARTICLE 5. MISCELLANEOUSARTICLE 6.

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

     (a) extend or  increase  the  commitment  of any Lender (or  reinstate  any
Commitment terminated pursuant to Section 8.02);

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

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

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

     (e) change the  definition  of "Required  Lenders" or the Pro Rata Share or
Voting  Percentage  (or the  definitions  used  therein)  of any Lender or amend
Section  2.14(c)  or 2.15;  (f)  amend  this  Section  or any  provision  herein
providing for consent or other action by all the Lenders; or

     (g) release any material Guarantor from the Guaranty;

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

     ARTICLE 6.02 Notices and Other Communications; Facsimile Copies.

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

     (b) Effectiveness of Facsimile Documents and Signatures. Loan Documents may
be  transmitted  and/or  signed  by  facsimile.  The  effectiveness  of any such
documents and signatures  shall,  subject to applicable Law, have the same force
and  effect  as  manually-signed  originals  and  shall be  binding  on all Loan
Parties,  the Administrative Agent and the Lenders. The Administrative Agent may
also  require  that  any  such  documents  and  signatures  be  confirmed  by  a
manually-signed original thereof; provided, however, that the failure to request
or deliver the same shall not limit the effectiveness of any facsimile  document
or signature.  (c) Limited Use of Electronic Mail.  Electronic mail and internet
and intranet  websites may be used only to  distribute  routine  communications,
such as financial  statements  and other  information,  and to  distribute  Loan
Documents  for  execution  by the parties  thereto,  and may not be used for any
other purpose.

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

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

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

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

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

     ARTICLE 6.07 Successors and Assigns.

     (a) The provisions of this Agreement shall be binding upon and inure to the
benefit  of the  parties  hereto and their  respective  successors  and  assigns
permitted hereby,  except that no Borrower may assign or otherwise  transfer any
of its rights or obligations hereunder without the prior written consent of each
Lender (and any  attempted  assignment  or transfer by a Borrower  without  such
consent  shall  be null and  void).  Nothing  in this  Agreement,  expressed  or
implied,  shall be construed  to confer upon any Person  (other than the parties
hereto,  their  respective  successors and assigns  permitted hereby and, to the
extent expressly  contemplated  hereby,  the Indemnitees) any legal or equitable
right, remedy or claim under or by reason of this Agreement.

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

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

     (d) Any Lender may,  without the consent of, or notice to, any  Borrower or
the  Administrative  Agent,  sell  participations  to one or more banks or other
entities (a  "Participant")  in all or a portion of such Lender's  rights and/or
obligations  under this Agreement  (including all or a portion of its Commitment
and/or the Loans owing to it); provided that (i) such Lender's obligations under
this  Agreement  shall remain  unchanged,  (ii) such Lender shall remain  solely
responsible to the other parties hereto for the performance of such  obligations
and (iii) the Borrowers,  the  Administrative  Agent and the other Lenders shall
continue to deal solely and directly  with such Lender in  connection  with such
Lender's  rights  and  obligations  under  this  Agreement.   Any  agreement  or
instrument  pursuant to which a Lender sells such a participation  shall provide
that such Lender shall retain the sole right to enforce  this  Agreement  and to
approve  any  amendment,  modification  or  waiver  of  any  provision  of  this
Agreement;  provided  that such  agreement or  instrument  may provide that such
Lender will not, without the consent of the Participant, agree to any amendment,
waiver or other  modification  that would (i)  postpone  any date upon which any
payment of money is  scheduled to be paid to such  Participant,  (ii) reduce the
principal, interest, fees or other amounts payable to such Participant, or (iii)
release all or  substantially  all the Guarantors from the Guaranty.  Subject to
subsection (e) of this Section, each Borrower agrees that each Participant shall
be entitled to the benefits of Sections  3.01,  3.04 and 3.05 to the same extent
as if it were a Lender and had acquired its interest by  assignment  pursuant to
subsection (b) of this Section. To the extent permitted by law, each Participant
also shall be  entitled  to the  benefits  of Section  10.09 as though it were a
Lender, provided such Participant agrees to be subject to Section 2.15 as though
it were a Lender.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

     ARTICLE 6.016 Removal and Replacement of Lenders.

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

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

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

     ARTICLE 6.017 Judgment Currency . If for the purposes of obtaining judgment
in any court it is necessary  to convert a sum due from a Borrower  hereunder in
the currency  expressed to be payable  herein (the  "specified  currency")  into
another currency,  the parties hereto agree, to the fullest extent that they may
effectively  do so,  that the rate of  exchange  used  shall be that at which in
accordance  with  normal  banking  procedures  the  Administrative  Agent  could
purchase the specified  currency with such other currency at the  Administrative
Agent's  applicable  office on the  Business Day  preceding  that on which final
judgment is given.  The  obligation of any Borrower in respect of any sum due to
any Lender or the  Administrative  Agent hereunder  shall,  notwithstanding  any
judgment in a currency other than the specified currency,  be discharged only to
the extent  that on the  Business  Day  following  receipt by such Lender or the
Administrative  Agent,  as the case may be, of any sum  adjudged to be so due in
such other currency,  such Lender or the  Administrative  Agent, as the case may
be, may in  accordance  with normal  banking  procedures  purchase the specified
currency with such other  currency.  If the amount of the specified  currency so
purchased  is  less  than  the  sum   originally  due  to  such  Lender  or  the
Administrative  Agent,  as the  case  may be,  in the  specified  currency,  the
applicable  Borrower shall, to the fullest extent that it may effectively do so,
as a separate obligation and  notwithstanding any such judgment,  indemnify such
Lender or the  Administrative  Agent, as the case may be, against such loss, and
if the amount of the  specified  currency so purchased  exceeds the total of (a)
the sum originally due to such Lender or the  Administrative  Agent, as the case
may be, in the  specified  currency and (b) any amount shared with other Lenders
as a result of allocations of such excess as a disproportionate  payment to such
Lender under Section 2.15, such Lender or the Administrative  Agent, as the case
may be, agrees to remit such excess to the applicable Borrower.

     ARTICLE 6.018 Economic and Monetary Union in the European Community .

     (a) If, as a result of the  implementation  of the  European  economic  and
monetary  union  ("EMU"),  (i) any currency  available for borrowing  under this
Agreement  (a  "national  currency")  ceases to be lawful  currency of the state
issuing the same and is replaced by a European  single or common  currency  (the
"Euro")  or (ii) any  national  currency  and the Euro are at the same time both
recognized by the central bank or comparable Governmental Authority of the state
issuing such currency as lawful currency of such state, then any amount borrowed
hereunder by any  Borrower in such  national  currency  shall be payable in such
national currency and any amount borrowed hereunder in the Euro shall be payable
in the Euro.  After the European  Central Bank and/or the comparable  Government
Authority ceases to recognize any national currency,  then the amount so payable
shall be determined by  redenominating or converting such national currency into
the Euro at the exchange rate officially  fixed by the European Central Bank for
the purpose of  implementing  the EMU.  Prior to the  occurrence of the event or
events described in clause (i) or (ii) above,  each amount payable  hereunder in
any such national currency will, except as otherwise  provided herein,  continue
to be payable only in that national currency.

     (b) The applicable  Borrower shall from time to time, at the request of any
Lender,  pay to such  Lender the  amount of any  losses,  damages,  liabilities,
claims, reduction in yield, additional expense or increased cost incurred by, or
of any  reduction  in any amount  payable to or in the  effective  return on its
capital to, or any  decrease or delay in the payment of interest or other return
foregone by, such Lender or any of its  Affiliates as a result of any political,
tax, liquidity, currency exchange or market risk resulting from the introduction
of,  changeover  to or  operation  of the  Euro  in  any  applicable  nation  or
eurocurrency market.

     (c) In addition, this Agreement will be amended to the extent determined by
the applicable Lender or Lenders and the Administrative Agent (acting reasonably
and in consultation with Anixter) to be necessary to reflect such implementation
of the EMU and change in currency  and to put the Lenders and the  Borrowers  in
the same  position,  so far as  possible,  that they  would have been in if such
implementation  and change in currency had not  occurred.  Except as provided in
the foregoing provisions of this Section 10.18, no such implementation or change
in currency nor any economic  consequences  resulting  therefrom  shall (i) give
rise to any right to terminate prematurely,  contest,  cancel,  rescind,  alter,
modify or renegotiate the provisions of this Agreement or (ii) discharge, excuse
or otherwise affect the performance of any obligation of any Borrower under this
Agreement or any Note.

     ARTICLE 6.019 Borrowers' Agent.

     Each Borrower hereby  irrevocably  appoints and authorizes  Anixter to take
such action and deliver and receive notices hereunder as agent on its behalf and
to exercise  such powers  under this  Agreement  as delegated to it by the terms
hereof,  together with all such powers as are reasonably  incidental thereto. In
furtherance  of and  not in  limitation  of the  foregoing,  for  administrative
convenience  of the parties  hereto,  the  Administrative  Agent and the Lenders
shall send all notices and  communications  to be sent to any Borrower solely to
Anixter and may rely solely upon  Anixter to receive all such  notices and other
communications  for and on behalf of each Borrower.  Neither  Anixter nor any of
its respective directors,  officers,  agents or employees shall be liable to any
other  Borrower for any action taken or not taken by it in  connection  herewith
(i) with the consent or at the  request of such  Borrower or (ii) in the absence
of its own gross negligence or willful misconduct.  No Person other than Anixter
(and its  authorized  officers and employees) may act as agent for the Borrowers
hereunder without the written consent of the Administrative Agent.

     ARTICLE 6.020 Governing Law.

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

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

     ARTICLE  6.021  Waiver  of  Right  to  Trial  by Jury . EACH  PARTY TO THIS
AGREEMENT  HEREBY  EXPRESSLY  WAIVES  ANY  RIGHT TO TRIAL BY JURY OF ANY  CLAIM,
DEMAND,  ACTION OR CAUSE OF ACTION ARISING UNDER ANY LOAN DOCUMENT OR IN ANY WAY
CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR
ANY OF THEM WITH  RESPECT  TO ANY LOAN  DOCUMENT,  OR THE  TRANSACTIONS  RELATED
THERETO,  IN EACH CASE WHETHER NOW EXISTING OR  HEREAFTER  ARISING,  AND WHETHER
FOUNDED IN  CONTRACT  OR TORT OR  OTHERWISE;  AND EACH PARTY  HEREBY  AGREES AND
CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED
BY COURT TRIAL WITHOUT A JURY,  AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN
ORIGINAL  COUNTERPART  OR A COPY OF THIS  SECTION  WITH  ANY  COURT  AS  WRITTEN
EVIDENCE OF THE CONSENT OF THE  SIGNATORIES  HERETO TO THE WAIVER OF THEIR RIGHT
TO TRIAL BY JURY. ARTICLE 1.01

<PAGE>

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

     ANIXTER INC., as Borrower

                                       By:
                                      Name:
                                     Title:

           ANIXTER INTERNATIONAL N.V./S.A., as a Borrowing Subsidiary

                                       By:
                                      Name:
                                     Title:

                  ANIXTER U.K. LTD., as a Borrowing Subsidiary

                                       By:
                                      Name:
                                     Title:

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

                                       By:
                                      Name:
                                     Title:

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

                                       By:
                                      Name:
                                     Title:
                  BANK ONE, NA, as Syndication Agent and Lender

                                       By:
                                      Name:
                                     Title:

<PAGE>

           THE BANK OF NOVA SCOTIA, as Documentation Agent and Lender

                                       By:
                                      Name:
                                     Title:

<PAGE>

                SUNTRUST BANK, as Managing Agent and as a Lender

                                       By:
                                      Name:
                                     Title:

<PAGE>

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

                                       By:
                                      Name:
                                     Title:

<PAGE>

             BANCA COMMERCIALE ITALIANA CHICAGO BRANCH, as a Lender

                                       By:
                                      Name:
                                     Title:

<PAGE>

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

                                       By:
                                      Name:
                                     Title:

<PAGE>

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

                                       By:
                                      Name:
                                     Title:

                                       By:
                                      Name:
                                     Title:

<PAGE>

                        THE BANK OF NEW YORK, as a Lender

                                       By:
                                      Name:
                                     Title:

<PAGE>

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

                                       By:
                                      Name:
                                     Title:

<PAGE>

                         FIRSTAR BANK, N.A., as a Lender

                                       By:
                                      Name:
                                     Title:

<PAGE>

                       THE FUJI BANK, LIMITED, as a Lender

                                       By:
                                      Name:
                                     Title:

<PAGE>

                         NATIONAL CITY BANK, as a Lender

                                       By:
                                      Name:
                                     Title:

<PAGE>

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

                                       By:
                                      Name:
                                     Title:

<PAGE>

                     THE NORTHERN TRUST COMPANY, as a Lender

                                       By:
                                      Name:
                                     Title:

<PAGE>

                           PNC BANK, N.A., as a Lender

                                       By:
                                      Name:
                                     Title:

<PAGE>

                      THE SAKURA BANK, LIMITED, as a Lender

                                       By:
                                      Name:
                                     Title:

<PAGE>

                   U.S. BANK NATIONAL ASSOCIATION, as a Lender

                                       By:
                                      Name:
                                     Title:

<PAGE>

                        WACHOVIA BANK, N.A., as a Lender

                                       By:
                                      Name:
                                     Title:

<PAGE>

               WELLS FARGO BANK, NATIONAL ASSOCIATION, as a Lender

                                       By:
                                      Name:
                                     Title:

                                       By:
                                      Name:
                                     Title:

<PAGE>

                                  SCHEDULE 1.01

                                ASSOCIATED COSTS

     1. For the purposes of this Agreement, the cost of compliance with existing
requirements of the Bank of England and/or the Financial  Services  Authority in
respect of Loans will be calculated by the  Administrative  Agent in relation to
relevant  Borrowing on the basis of rates supplied by the  Administrative  Agent
(or such  Lender  as it may from time to time  determine)  by  reference  to the
circumstances  existing on the first day of each  Interest  Period in respect of
such  Borrowing and, if any such Interest  Period exceed three months,  at three
calendar monthly intervals from the first day of such Interest Period during its
duration in accordance with the following formula:

     a. In relation to Loans denominated in British Pounds Sterling:

     AB + C(B - D) + E x 0.01 per cent. per annum 100 - (A + C)

     b. In relation to Loans denominated in any other currency:

     E x 0.01 per cent. per annum 300 Where:

     A is the percentage of eligible liabilities (assuming these to be in excess
of any stated minimum) which the Administrative  Agent (or such Lender as it may
determine)  is from time to time  required to maintain as an interest  free cash
ratio deposit with the Bank of England to comply with cash ratio requirements.

     B is the percentage  rate per annum at which sterling  deposits are offered
by the Administrative Agent (or such Lender as it may determine),  in accordance
with its normal practice, for a period equal to (a) the relevant Interest Period
(or, as the case may be,  remainder of such  Interest  Period) in respect of the
relevant Loan or (b) three months,  whichever is the shorter,  to a leading bank
in the London  interbank  market at or about 11.00 a.m.  in a sum  approximately
equal to the amount of such Loan.

     C is the percentage of eligible  liabilities which the Administrative Agent
(or such Lender as it may  determine)  is required from time to time to maintain
as interest bearing special deposits with the Bank of England.

     D is the  percentage  rate per annum  payable by the Bank of England to the
Administrative  Agent (or such Lender as it may  determine) on interest  bearing
special  deposits.  E is the rate payable by the  Administrative  Agent (or such
Lender as it may determine) to the Financial  Services Authority pursuant to the
Fees  Regulations  (but,  for this  purpose,  ignoring  any minimum fee required
pursuant to the Fees  Regulations) and expressed in pounds per  (pound)1,000,000
of  the  Fee  Base  of  the  Administrative  Agent  (or  such  Lender  as it may
determine).

     2. For the purposes of this Schedule:

     i. "eligible  liabilities"  and "special  deposits" shall bear the meanings
ascribed  to them from time to time under or pursuant to the Bank of England Act
1998 or (as may be appropriate) by the Bank of England;

     ii. "Fee Regulations" means the Banking Supervision (Fees) Regulations 1998
or such other  regulation as may be in force from time to time in respect of the
payment of fees for banking supervision; and

     iii.  "Fee  Base"  shall  bear the  meaning  ascribed  to it,  and shall be
calculated in accordance with, the Fees Regulations.

     iv.  "Associated  Costs" means,  with respect to any Loan, for any Interest
Period,  the cost, as  calculated by the Agent in accordance  with Schedule 1.01
imputed to each  applicable  Lender,  of compliance  with the  mandatory  liquid
assets  requirements of the Bank of England and the Financial Services Authority
during that Interest Period, expressed as a percentage.

     3. The  percentages  used in A and C above  shall be those  required  to be
maintained  on the first day of the relevant  period as determined in accordance
with B above.

     4. In application  of the above formula,  A, B, C and D will be included in
the formula as figures and not as  percentages  e.g. if A is 0.5 per cent. and B
is 12 per cent., AB will be calculated as 0.5 x 12 and not as 0.5 per cent. x 12
per cent.

     5.  Calculations will be made on the basis of a 365 day year (or, if market
practice differs, in accordance with market practice).

     6. A negative  result  obtained by  subtracting  D from B shall be taken as
zero.

     7. The resulting  figures shall be rounded  upwards,  if not already such a
multiple,  to the nearest whole multiple of  one-thirty-second  of one per cent.
per annum.

     8.  Additional  amounts  calculated  in  accordance  with this Schedule are
payable on the last day of the Interest Period to which they relate.

     9. The  determination  of the Associated  Costs Rate by the  Administrative
Agent in relation to any period  shall,  in the  absence of manifest  error,  be
conclusive and binding on all of the parties hereto.

     10. The Administrative Agent may from time to time, after consultation with
Anixter and the Lenders,  determine and notify to all parties any  amendments or
variations  which are  required to be made to the formula set out above in order
to comply with any requirements from time to time imposed by the Bank of England
or the Financial Services Authority in relation to Loans denominated in sterling
(including any requirements relating to sterling primary liquidity) and any such
determination shall, in the absence of manifest error, be conclusive and binding
on all the parties hereto.

<PAGE>

                                  SCHEDULE 5.03

                              EXISTING SUBSIDIARIES

<PAGE>

                                  SCHEDULE 5.04

                                    CONFLICTS

<PAGE>

                                  SCHEDULE 5.08

                                   LITIGATION

<PAGE>

                                  SCHEDULE 5.16

                              ENVIRONMENTAL MATTERS

<PAGE>

                                  SCHEDULE 5.20

                         JOINT VENTURES AND PARTNERSHIPS

<PAGE>

                                  SCHEDULE 6.07

                                    INSURANCE

<PAGE>

                                SCHEDULE 7.01(ii)

                              EXISTING INDEBTEDNESS

<PAGE>

                                SCHEDULE 7.02(b)

                                 EXISTING LIENS

<PAGE>

                                  SCHEDULE 7.03

                              EXISTING INVESTMENTS

<PAGE>

                                 SCHEDULE 10.02

                   EUROCURRENCY AND DOMESTIC LENDING OFFICES,
                              ADDRESSES FOR NOTICES

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

                             BANK OF AMERICA, N.A.

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

                     Other Notices as Administrative Agent:

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

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

               BANK ONE, NA, as Documentation Agent and a Lender

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

                          Eurocurrency Lending Office:

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

<PAGE>

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

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

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

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

<PAGE>

                           BANCA COMMERCIALE ITALIANA

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

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

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

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

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

               BANK AUSTRIA CREDITANSTALT CORPORATE FINANCE, INC.

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

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

                              THE BANK OF NEW YORK

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

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

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

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

                         THE DAI-ICHI KANGYO BANK, LTD.

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

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

                        Requests for Credit Extensions:
                               Firstar Bank, N.A.
                              Attn: Connie Sweeney
                            Telephone: (920) 426-7604
                            Facsimile: (920) 426-7655
                             Account No. 3811005184
                           Ref: Commercial Exceptions
                                  ABA#081000210

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

                             THE FUJI BANK, LIMITED

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

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

                               NATIONAL CITY BANK

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

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

                         NATIONAL WESTMINSTER BANK PLC,
                          NEW YORK AND NASSAU BRANCHES

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

<PAGE>

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

                           THE NORTHERN TRUST COMPANY

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

                                  Bid Contact:
                           The Northern Trust Company
                               50 S. LaSalle St.
                               Chicago, IL 60675
                                Attn: Edie Reed
                            Telephone: (312) 444-7757
                            Facsimile: (312) 444-4906

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

<PAGE>

                         PNC BANK, NATIONAL ASSOCIATION

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

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

                            THE SAKURA BANK, LIMITED

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

<PAGE>

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

                                 SUNTRUST BANK

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

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

<PAGE>

                         U.S. BANK NATIONAL ASSOCIATION

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

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

                              WACHOVIA BANK, N.A.

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

<PAGE>

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

                     WELLS FARGO BANK, NATIONAL ASSOCIATION

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

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

<PAGE>

                                   EXHIBIT A-1

                          FORM OF COMMITTED LOAN NOTICE

                            Date: ___________, _____

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

Ladies and Gentlemen:

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

     The undersigned hereby requests (select one):

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

     1. On (a Business Day).

     2. In the amount of US$.

     3. Comprised of . [Type of Committed Loan requested]

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

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

     ANIXTER INC.

     By:
     Name:
     Title:

<PAGE>

                                   EXHIBIT B-1

                               FORM OF BID REQUEST

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

Ladies and Gentlemen:

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

     The Lenders are invited to make Bid Loans:

     1. On (a Business Day).

     2. In an aggregate  amount not  exceeding US$ (with any sublimits set forth
below).

     3. Comprised of (select one):

<PAGE>

     o Bid Loans based on an Absolute  Rate:  o Bid Loans based on  Eurocurrency
Rate

     Bid Loan No.           Interest Period           Maximum principal amount
                          requested requested
------------------   --------------------------     ---------------------------
          1                                                     US$
          2                 _______days/mos                     US$
          3                                                     US$
                            _______days/mos

                            _______days/mos

     The Bid Borrowing  requested  herein complies with the  requirements of the
proviso to the first sentence of Section 2.03(a) of the Agreement.

     Anixter authorizes the Administrative  Agent to deliver this Bid Request to
the  Lenders.  Responses  by the Lenders  must be in  substantially  the form of
Exhibit B-2 to the Agreement and must be received by the Administrative Agent by
the time specified in Section 2.03 of the Agreement for  submitting  Competitive
Bids.

     ANIXTER INC.

     By:
     Name:
     Title:

<PAGE>

     EXHIBIT B-2

     FORM OF COMPETITIVE BID ------------, ----

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

              Ladies and Gentlemen:

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

     In response to the Bid Request dated ________, ____, the undersigned offers
to make the following Bid Loan(s):

     1. Borrowing date: (a Business Day).

     2. In an aggregate  amount not  exceeding US$ (with any sublimits set forth
below).

     3. Comprised of:

                                                                 Absolute
                     Interest                                    Rate Bid
  Bid                Period              Bid Maximum                or
  Loan               offered                                   Eurocurrency
  No.                                                            Bid Margin
------------- --------------------- ----------------------- -------------------
      1           _______days/mos             US$              (- +) _______%

      2           _______days/mos             US$              (- +) _______%

      3           _______days/mos             US$              (- +) _______%

<PAGE>

                           Contact Person: Telephone:

                                    [LENDER]

                                       By:
                                      Name:
                                     Title:

 ******************************************************************************
           THIS SECTION IS TO BE COMPLETED BY ANIXTER IF IT WISHES TO
              ACCEPT ANY OFFERS CONTAINED IN THIS COMPETITIVE BID:

       The offers made above are hereby accepted in the amounts set forth
                                     below:

         ---------------------- --------------------------------------
                              Bid Principal Amount
                                  Loan Accepted
                                       No.

          ---------------------- --------------------------------------
                                       US$

         ---------------------- --------------------------------------
                                       US$

         ---------------------- --------------------------------------
                                       US$

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

                                   [BORROWER]

                                       By:

                                      Name:

                                     Title:
                                      Date:

<PAGE>

                                   EXHIBIT A-2

                      FORM OF FOREIGN CURRENCY LOAN NOTICE

                                   Date:  ___________, _____

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

              Ladies and Gentlemen:

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

     The undersigned hereby requests (select one):

     o A Borrowing of Foreign Currency Loans o A continuation of Loans

     1. On (a Business Day).

     2. In the amount of _______________ in [Available Foreign Currency].

     3. With an Interest Period of months.

     [The Foreign Currency Borrowing  requested herein complies with the proviso
to the first sentence of Section 2.03 of the Agreement.]

                                  ANIXTER INC.

                                       By:
                                      Name:
                                     Title:

<PAGE>

                                   EXHIBIT C-1

                                    [FORM OF]
                         BORROWING SUBSIDIARY AGREEMENT

                 Bank of America, N.A., as Administrative Agent
                                     [Date]

                                   Attention:

              Ladies and Gentlemen:

     The undersigned,  Anixter Inc. ("Anixter"),  refers to the Five-Year Credit
Agreement dated as of October 6, 2000 (as it may hereafter be amended, modified,
extended or restated from time to time, the "Credit Agreement"),  among Anixter,
the Borrowing  Subsidiaries named therein, the financial  institutions from time
to time party thereto as Lenders,  Bank One, NA, as Syndication  Agent, The Bank
of  Nova  Scotia,  as  Documentation  Agent,  and  Bank  of  America,  N.A.,  as
Administrative  Agent.  Capitalized  terms used and not otherwise defined herein
shall have the meanings assigned to such terms in the Credit Agreement.

     Anixter and ________ (the  "Designated  Borrowing  Subsidiary") (i) confirm
that the Designated  Borrowing Subsidiary is a Foreign Subsidiary and (ii) make,
on and as of the date  hereof,  the  representations  and  warranties  as to the
Designated  Borrowing Subsidiary contained in Article V of the Credit Agreement.
The Designated  Borrowing  Subsidiary  agrees to be bound in all respects by the
terms of the Credit Agreement, including without limitation, Article IV thereof,
and to perform all of the obligations of a Borrowing Subsidiary thereunder. Each
reference to a Borrowing  Subsidiary in the Agreement shall be deemed to include
the Designated Borrowing Subsidiary.

     Each  Guarantor  ratifies and confirms the  provisions of the Guaranty with
respect to all Loans made by any Lender to the Designated Borrowing Subsidiary.

     The address to which  communications to the Designated Borrowing Subsidiary
under the Credit Agreement should be directed is

     This  instrument  shall be construed in accordance with and governed by the
laws of the State of Illinois.  Loan proceeds should be deposited as provided in
the Credit Agreement.

     Upon the execution of this Borrowing  Subsidiary  Agreement by Anixter, the
Designated Borrowing Subsidiary and each Guarantor, and acceptance hereof by the
Administrative  Agent,  the  Designated  Borrowing  Subsidiary  shall  become  a
Borrowing  Subsidiary  under the Credit  Agreement as though it were an original
party  thereto and shall be entitled to borrow under the Credit  Agreement  upon
the  satisfaction  of the conditions  precedent set forth in Section 4.02 of the
Credit Agreement.

     Very truly yours,

     ANIXTER INC.

                         By:___________________________
                                      Name:
                                     Title:

<PAGE>

                        [DESIGNATED BORROWING SUBSIDIARY]

                         By:___________________________
                                      Name:
                                     Title:

                           ANIXTER INTERNATIONAL INC.

                         By:___________________________
                                      Name:
                                     Title:

                               [OTHER GUARANTORS]

                         By:___________________________
                                      Name:
                                     Title:

                  Accepted as of the date first above written.

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

                        By:______________________________
                                      Name:
                                     Title:

<PAGE>

                                   EXHIBIT C-2

                                    [FORM OF]
                        BORROWING SUBSIDIARY TERMINATION

                 Bank of America, N.A., as Administrative Agent
                                     [Date]

                                   Attention:

              Ladies and Gentlemen:

     Anixter Inc. ("Anixter"), refers to the Five-Year Credit Agreement dated as
of  October 6, 2000 (as it may  hereafter  be  amended,  modified,  extended  or
restated  from  time to  time,  the  "Credit  Agreement"),  among  Anixter,  the
Borrowing  Subsidiaries named therein,  the financial  institutions from time to
time party thereto as Lenders,  Bank One, NA, as Syndication  Agent, The Bank of
Nova  Scotia,   as  Documentation   Agent,   and  Bank  of  America,   N.A.,  as
Administrative  Agent.  Capitalized  terms used and not otherwise defined herein
shall have the meanings assigned to such terms in the Credit Agreement.

     Anixter  elects to  terminate  the  status of  _________  (the  "Terminated
Borrowing  Subsidiary")  as a Borrowing  Subsidiary  for  purposes of the Credit
Agreement.  Anixter represents and warrants that no Loans made to the Terminated
Borrowing  Subsidiary  are  outstanding  as of the  date  hereof  and  that  all
principal  and  interest  on  all  Loans  payable  by the  Terminated  Borrowing
Subsidiary  pursuant to the Credit  Agreement have been paid in full on or prior
to the date hereof.

     This  instrument  shall be construed in accordance with and governed by the
laws of the State of Illinois.

     Very truly yours,

     ANIXTER INC.

     By:________________________________
     Name:
     Title:

<PAGE>

                                   EXHIBIT D-1

                           FORM OF COMMITTED LOAN NOTE

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

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

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

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

<PAGE>

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

     ANIXTER INC.

                                       By:
                                      Name:
                                     Title:

<PAGE>

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

<PAGE>

                                   EXHIBIT D-2

                              FORM OF BID LOAN NOTE

     FOR VALUE RECEIVED,  Anixter Inc. (the "Borrower"),  hereby promises to pay
to the order of (the "Lender") on the last day of the Interest Period  therefor,
the  principal  amount of each Bid Loan from time to time made by the  Lender to
the Borrower under that certain Five-Year  Revolving Credit Agreement,  dated as
of October 6, 2000 (as amended,  restated,  extended,  supplemented or otherwise
modified  in  writing  from time to time,  the  "Agreement;"  the terms  defined
therein being used herein as therein  defined),  among the Borrower,  certain of
its  Subsidiaries,  the  Lenders  from time to time party  thereto,  and Bank of
America, N.A., as Administrative Agent.

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

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

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

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

     ANIXTER INC.

     By:
     Name:
     Title:

<PAGE>

                                   EXHIBIT D-2

                       FORM OF FOREIGN CURRENCY LOAN NOTE

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

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

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

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

<PAGE>

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

                                   [BORROWER]

     By:   _______________________________
     Name:   ____________________________
     Title: ____________________________

<PAGE>

            FOREIGN CURRENCY LOANS AND PAYMENTS WITH RESPECT THERETO

     Notation  Made By Amount  Outstanding  Interest  Period Type  oofLoan  Made
Principal Amount Date Principal  Balance of or This Loan Interest Date Made Paid
This Date

<PAGE>

                                    EXHIBIT E

                         FORM OF COMPLIANCE CERTIFICATE

                           Financial Statement Date: ,

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

              Ladies and Gentlemen:

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

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

     [Use following for fiscal year-end financial statements]

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

     [Use following for fiscal quarter-end financial statements]

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

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

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

     [select one:]

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

                                       or

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

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

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

                                  ANIXTER INC.

                                       By:
                                      Name:
                                     Title:

<PAGE>

     For the Fiscal  Quarter/Fiscal  Year  ended  ___________________("Statement
Date") SCHEDULE 2 to the Compliance Certificate (US$ in 000's)

     I. Section 7.15 - Receivables Securitization Transactions.

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

     Maximum permitted:

     II. Section 7.16 - Consolidated Net Worth. A. Actual Consolidated Net Worth
at Statement  Date: 1.  Shareholders'  Equity:  US$ B. 50% of  Consolidated  Net
Income for each Fiscal Quarter ending after September 30, 2000 (No reduction for
losses): US$ C. Minimum required  Consolidated Net Worth  (US$375,000,000 + Line
II.B):  US$_______ D. Excess  (deficiency) for covenant  compliance (Line II.A -
II.C): US$

<PAGE>

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

     Description:___________________________________ US$

     6. Consolidated EBITDA (Lines III.A.1 + 2 + 3 + 4-5)(by Fiscal Quarter): a.
Fiscal  Quarter  ended  _________,  200__  US$______  b.  Fiscal  Quarter  ended
_________, 200__ US$______ c. Fiscal Quarter ended _________, 200__ US$______ d.
Fiscal  Quarter  ended  _________,  200__  US$______  US$ B. Rental  Expense for
Subject Period:

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

     a. Fiscal Quarter ended _________,  200__ US$______ b. Fiscal Quarter ended
_________, 200__ US$______ c. Fiscal Quarter ended _________, 200__ US$______ d.
Fiscal Quarter ended _________,  200__ US$______ US$ D. Interest  Coverage Ratio
     ((Line III.A.6 +Line III.B)/(Line III.C): to 1 Minimum
required:   Fiscal   Quarters   Ending  Minimum  Fixed  Charge   Coverage  Ratio

     Closing Date through  September  30, 2001 2.00:1  December 31, 2001 through
March 31, 2003 2.50:1 June 30, 2003 and each Fiscal Quarter thereafter 3.00:1

     IV. Section 7.17 - Leverage Ratio.

     A. Consolidated Funded Indebtedness at Statement Date: US$

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

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

     Maximum permitted:

     Fiscal       Quarters       Ending       Maximum       Leverage       Ratio

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

     V. Section 7.19 Capital Expenditures.

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

<PAGE>

                                    EXHIBIT F

<PAGE>

                        FORM OF ASSIGNMENT AND ACCEPTANCE

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

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

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

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

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

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

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

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

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

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

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

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

     (a) it is an Eligible Assignee;

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

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

     (d) under  applicable  Laws no tax will be  required  to be withheld by the
Administrative  Agent or Anixter  with respect to any payments to be made to the
Assignee hereunder or under any Loan Document, and unless otherwise indicated in
the space opposite the Assignee's  signature  below,  no tax forms  described in
Section 10.15 of the Agreement are required to be delivered by the Assignee; and

     (e) the Assignee has received a copy of the Agreement, together with copies
of the most recent financial  statements of Anixter delivered  pursuant thereto,
and such other  documents and  information as it has deemed  appropriate to make
its own  credit  analysis  and  decision  to  enter  into  this  Assignment  and
Acceptance.  The  Assignee  has  independently  and  without  reliance  upon the
Assignor  or the  Administrative  Agent  and  based on such  information  as the
Assignee has deemed  appropriate,  made its own credit  analysis and decision to
enter into this Assignment and Acceptance.  The Assignee will, independently and
without  reliance upon the  Administrative  Agent or any Lender,  and based upon
such  documents  and  information  as it shall  deem  appropriate  at the  time,
continue to make its own credit  decisions in taking or not taking  action under
the Agreement.

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

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

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

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

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

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

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

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

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

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

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

     Assignor: [Name of Assignor]

                                       By:
                                      Name:
                                     Title:

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

                                       By:
                                      Name:
                                     Title:

                             (Signatures continue)

<PAGE>

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

     ANIXTER INC.

                                       By:

                                      Name:

                                     Title:

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

                                       By:
                                     Title:

<PAGE>

                     SCHEDULE 1 TO ASSIGNMENT AND ACCEPTANCE

                              THE ASSIGNED INTEREST

                     Effective Date: ______________________

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

     US$ [type] US$ %

<PAGE>

                     SCHEDULE 2 TO ASSIGNMENT AND ACCEPTANCE

                             ADMINISTRATIVE DETAILS

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

<PAGE>

                                    EXHIBIT G

                                    GUARANTY

     This  GUARANTY,  dated as of October 6, 2000,  is by ANIXTER  INTERNATIONAL
INC., a Delaware corporation,  ANIXTER INC., a Delaware corporation ("Anixter"),
ANIXTER-REAL ESTATE, INC., an Illinois corporation, ANIXTER

     INFORMATION  SYSTEMS  CORPORATION,  an  Illinois  corporation,  and ANIXTER
FINANCIAL INC., a Delaware corporation (each a "Guarantor" and collectively, the
"Guarantors"), in favor of BANK OF AMERICA, N.A., as administrative

     agent (in such capacity,  the  "Administrative  Agent") for the Lenders (as
hereafter defined).

                                    Recitals

     A. Anixter,  Anixter U.K. Ltd., an English  limited  liability  company and
Anixter  International  N.V./S.A.,  a Belgian company (together with Anixter and
Anixter  U.K.  Ltd.,  and any  other  Subsidiary  that may  become  a  Borrowing
Subsidiary in accordance with the terms thereof,  collectively,  the "Borrowers"
and  individually a "Borrower"),  the financial  institutions  from time to time
party thereto (the "Lenders"),  Bank One, NA, as Syndication  Agent, The Bank of
Nova Scotia, as Documentation  Agent, and the Administrative  Agent have entered
into a Five-Year  Revolving Credit  Agreement,  dated as of October 6, 2000. The
Credit  Agreement as now in effect or  hereafter  extended,  renewed,  modified,
supplemented, amended, or restated is hereinafter called the "Credit Agreement".
B. The Lenders are willing to make the Loans to the  Borrowers on the  condition
(among others) that the Guarantors enter into this Guaranty.

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

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

     1. Definitions.  Unless otherwise defined herein, capitalized terms used in
this Guaranty have the

meanings given to them from time to time in the Credit Agreement.

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

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

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

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

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

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

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

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

     2.4 Waiver of Certain  Rights.  Each Guarantor  waives any right to require
the Administrative

     Agent or any Lender:

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

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

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

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

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

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

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

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

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

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

     2.12 Taxes. (a) Any and all payments by any Guarantor to each Lender or the
Administrative  Agent under this  Guaranty  shall be made free and clear of, and
without  deduction for, any Taxes.  In addition,  the  Guarantors  shall pay all
Other Taxes.

     (b) If any Guarantor shall be required by law to deduct any Taxes,  from or
in  respect of any sum  payable  hereunder  to any Lender or the  Administrative
Agent, then:

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

     (ii) the Guarantors shall make such deductions;

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

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

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

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

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

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

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

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

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

     3.2 Authority.

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

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

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

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

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

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

     4. Miscellaneous.

     4.1 Application of Payments on Guaranty.  All payments  required to be made
by the Guarantors  hereunder shall,  unless otherwise expressly provided herein,
be made to the  Administrative  Agent  for the  account  of the  Lenders  at the
Administrative Agent's Office. The Administrative Agent will promptly distribute
to each  Lender  its Pro Rata  Share (or  other  applicable  share as  expressly
provided  herein) of such payment in like funds as received.  Payments  received
from the Guarantors  shall,  unless  otherwise  expressly  provided  herein,  be
applied to costs,  fees,  or other  expenses due under the Loan  Documents,  any
interest  (including  interest  due under  [subsection  2.09(c)]  of the  Credit
Agreement),  any principal due under the Loan Documents and any other Guaranteed
Obligations,  in such order as the Administrative  Agent, with the consent of or
at the request of the Lenders, shall determine.

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

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

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

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

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

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

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

     4.9 Notices. All notices, requests, consents,  approvals, waivers and other
communications  shall be in writing  (including,  unless the  context  expressly
otherwise  provides,  by  facsimile  transmission,   provided  that  any  matter
transmitted by facsimile (i) shall be immediately  confirmed by a telephone call
to the  recipient  at the  number  specified  on  Schedule  10.02 to the  Credit
Agreement,  and (ii)  shall be  followed  promptly  by  delivery  of a hard copy
original  thereof) and mailed,  faxed or delivered,  to the address or facsimile
number  specified  for  notices  on the  signature  pages  hereof in the case of
Guarantors and as provided in the Credit Agreement in the case of Administrative
Agent and Lenders;  or to such other  address as shall be designated by any such
party in a written notice to the other parties.  All such notices,  requests and
communications  shall,  when  transmitted by overnight  delivery,  or faxed,  be
effective when delivered for overnight  (next-day)  delivery,  or transmitted in
legible form by facsimile machine,  respectively,  or if mailed, upon the fourth
Business Day after the date deposited into the U.S. mail, or if delivered,  upon
delivery.  Any agreement of the Administrative  Agent and the Lenders to receive
certain  notices by telephone or facsimile is solely for the  convenience and at
the request of the Guarantors. The Administrative Agent and the Lenders shall be
entitled  to rely on the  authority  of any  Person  purporting  to be a  Person
authorized by a Guarantor to give such notice and the  Administrative  Agent and
the Lenders  shall not have any  liability  to any  Guarantor or other Person on
account  of any  action  taken or not taken by the  Administrative  Agent or the
Lenders in reliance upon such telephonic or facsimile notice.  The obligation of
the  Guarantors  hereunder  shall not be affected in any way or to any extent by
any  failure by the  Administrative  Agent and the  Lenders  to receive  written
confirmation  of any  telephonic  or  facsimile  notice  or the  receipt  by the
Administrative Agent and the Lenders of a confirmation which is at variance with
the terms understood by the Administrative Agent and the Lenders to be contained
in the telephonic or facsimile notice. 4.10 Governing Law and Jurisdiction. THIS
GUARANTY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE  WITH, THE LAW OF THE
STATE OF ILLINOIS;  PROVIDED THAT THE ADMINISTRATIVE AGENT AND THE LENDERS SHALL
RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW.

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

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

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

     THIS WRITTEN  GUARANTY,  TOGETHER  WITH THE OTHER  WRITTEN  LOAN  DOCUMENTS
EXECUTED IN CONNECTION  HEREWITH,  REPRESENTS  THE FINAL  AGREEMENT  BETWEEN THE
PARTIES AND MAY NOT BE  CONTRADICTED  BY EVIDENCE  OF PRIOR  CONTEMPORANEOUS  OR
SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.

     THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

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

     ANIXTER INTERNATIONAL INC.

                                       By:

                                     Title:

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

                                  ANIXTER INC.

                                       By:

                                     Title:

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

                            ANIXTER-REAL ESTATE, INC.

                                       By:

                                     Title:

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

<PAGE>

                     ANIXTER INFORMATION SYSTEMS CORPORATION

                                       By:

                                     Title:

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

                             ANIXTER FINANCIAL INC.

                                       By:

                                     Title:

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

<PAGE>

                                    EXHIBIT A
                              TO GUARANTY AGREEMENT

                             _______________, 200___

                    To the Lenders and Administrative Agent
                               Referenced below:

Ladies and Gentlemen:

     Reference is made to the following  documents:  (a) that certain  Five-Year
Revolving  Credit  Agreement,  dated as October 6, 2000 (as  amended or modified
from time to time,  the "Credit  Agreement"),  among  Anixter  Inc.,  a Delaware
corporation ("Anixter"), Anixter U.K. Ltd., an English limited liability company
and Anixter  International  N.V./S.A.,  a Belgian company (together with Anixter
and  Anixter  U.K.  Ltd.,  collectively,  the  "Borrowers"  and  individually  a
"Borrower"),  the  financial  institutions  from time to time party thereto (the
"Lenders"),  Bank One, NA, as  Syndication  Agent,  The Bank of Nova Scotia,  as
Documentation Agent, and Bank of America, N.A., as Administrative Agent; and (b)
that certain  Guaranty  dated as of October 6, 2000 (as amended or modified from
time to time,  the  "Guaranty"),  by certain  Affiliates of the Borrowers  party
thereto in favor of Administrative  Agent. Unless  specifically  defined herein,
capitalized  terms  used  herein  have  the  meaning  set  forth  in the  Credit
Agreement.

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

     Very truly yours,

     [NAME OF NEW GUARANTOR], a _______________

                                       By:

                                     Title:

                               Notice Information:

<PAGE>

                                    EXHIBIT H

                           FORM OF OPINION OF COUNSEL

<PAGE>

                                    EXHIBIT I
                            FORM OF ALLOCATION NOTICE

                         BANC OF AMERICA SECURITIES LLC

                               October [__], 2000

                                    [LENDER]

Dear Ladies and Gentlemen:

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

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

     Five-Year Commitment $ 364-Day Commitment $

<PAGE>

     BANC OF AMERICA SECURITIES LLC

     By: ________________________________
     Title: _______________________________

     ANIXTER INC.

     By: ________________________________
     Title: __________________________

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"}]]