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                                                                   Exhibit 10.36
                                                                 ---------------

                              DAISYTEK UK LIMITED

                                 90 FETTER LANE
                                LONDON EC4A 1JP


ISA International plc (Company number 1925205)
66/70 Vicar Lane
Bradford
BDI 5AG

Dear Sirs,

LOAN TO ISA INTERNATIONAL PLC

We are pleased to inform you that we are prepared to place a Loan at your
disposal on the following terms and conditions:

1.   DEFINITIONS

     In this letter, the expressions defined in Appendix 1 hereto shall have the
     meanings respectively ascribed to them therein and Appendix 1 and all other
     appendices and schedules shall be deemed to be an integral part of this
     letter.

2.   LOAN AMOUNT AND EFFECTIVE DATE

     The Loan Amount shall be as set out in Schedule Three (and Schedule Four in
     relation to any sums paid out by the Lender pursuant to the guarantees set
     out therein and any amounts so paid out by the Lender shall be added to the
     principal of the Loan outstanding at that time) hereto as may be agreed
     between the Lender and Borrower from time to time. The amount outstanding
     at any time under the Loan can never exceed the Loan Amount. The effective
     date for this Agreement shall be 12 October 2001.

3.   PURPOSE

3.1  The Loan is to be used for the Borrower's investment into Kaye Office
     Supplies Limited and for its general working capital purposes.

3.2  The Loan Amount will not become available for drawing by the Borrower until
     the Lender is satisfied with the matters specified in Schedule 1.




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4.   THE LOAN

4.1  The Loan may be drawn in one or more tranches as agreed by Borrower and
     Lender from time to time.

4.2  When the Borrower wishes to make the drawing hereunder it will give the
     Lender prior notice in the form set out in Schedule 2 not later than the
     third Business Day prior to the day of the intended drawing in writing (or
     by facsimile or telephone, in each case to be immediately confirmed in
     writing) specifying the date (which must be a Business Day) and, if
     applicable, the bank account to which payment is to be made.

4.3  Notice will be irrevocable and oblige the Borrower to borrow the amount
     stated on the date specified therein.

5.   INTEREST PERIODS

5.1  The Interest Periods for the Loan will be fixed for a period of 3 months,
     save that the Initial Interest Period shall be as set out in the
     appropriate Schedule 2.

5.2  If any Interest Period would end on a day which is not a Business Day, such
     Interest Period will be extended to the next succeeding Business Day,
     unless such day falls in the next calendar month in which event such
     Interest Period will end on the next preceding Business Day.

6.   INTEREST

6.1  The rate of interest for each Interest Period shall be the aggregate of:

     6.1.1  300 basis points per annum; and

     6.1.2  the LIBOR for such Interest Period for a corresponding amount to the
            Loan Amount at or about 11:00 am on the first Business Day of such
            Interest Period.

6.2  Interest on the Loan Amount shall be calculated on the basis of a year of
     365 days and the actual number of days elapsed from the Loan having been
     made accruing on a daily basis, and will be paid in arrears at the end of
     each relative Interest Period, save that interest for Initial Interest
     Periods ending on or before 31 March 2002 shall become capitalised with and
     from part of the principal amount on that date.

7.   REPAYMENT AND UNDERTAKING BY THE BORROWER

7.1  Subject to Clauses 7.2, 7.4 and 7.5, the Loan and all accrued interest and
     costs hereunder shall be repaid on the Due Date.

7.2  The Loan will cease to be available upon the occurrence of an Event of
     Default.


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      (as defined below) whereupon the Borrower must immediately repay all
      amounts outstanding under the Loan, including principal and all accrued
      interest and costs (if any).

7.3   If the Lender receives a payment insufficient to discharge all the amounts
      then due and payable by the Borrower under this Agreement, the Lender
      shall, unless agreed in writing otherwise, apply that payment towards the
      obligations of the Borrower in the following order:

      7.3.1 first, in or towards payment of any accrued but unpaid interest due
            by the Borrower but unpaid under this Agreement;

      7.3.2 second, in or towards payment of any unpaid costs, expenses and
            charges of the Lender under this Agreement;

      7.3.3 third, in or towards payment of any principal due by the Borrower
            but unpaid under this Agreement; and

      7.3.4 fourth, in or towards payment of any accrued but unpaid dividends on
            the Preference Shares due by the Borrower.

7.4   The Borrower undertakes that, if the Loan Amount is not repaid in full on
      or before the Due Date, it shall forthwith take all necessary steps
      including without limitation, the convening of all necessary shareholder
      meetings of the Borrower and the proposal of resolutions to approve and
      effect any necessary reorganisation of the share capital of the Borrower)
      to procure that the Borrower shall offer to the Lender (subject only to a
      pro rata right of clawback in favour of the then existing ordinary
      shareholders of the Borrower) such number of ordinary shares in the
      capital of the Borrower at a price of not more than L0.01 per share
      as shall raise, net of expenses, an amount in cash equal to the sum of the
      Loan Amount, any potential Special Dividend and a further sum (such
      further sum not to exceed L10,000,000) which will satisfy the
      ongoing working capital requirements of the Borrower as determined by the
      board of directors from time to time of the Borrower (the "Share Issue").
      The Borrower shall forthwith upon receipt, apply the net proceeds of the
      Share Issue toward repayment of the Loan Amount after payment of the costs
      and expenses of the Borrower in making the Share Issue.

7.5   The Lender shall not seek repayment of the Loan (other than following an
      Event of Default) until 30 September 2002 if the Borrower is seeking to
      procure the Share Issue provided the Share Issue is completed prior to 30
      September 2002.


8.    PREPAYMENT

8.1   The Borrower may, by giving to the Lender not less than five Business
      Days' irrevocable written notice, prepay the whole or any part of the Loan
      Amount.

8.2   Any amount prepaid may not be redrawn.



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9.   TERMINATION

9.1  Subject to Clause 7.5, the Loan will cease to be available on whichever is
     the earlier of:

     9.1.1     the Due Date; or

     9.1.2     the date upon which the Lender serves notice on the Borrower
               terminating the availability of the Loan following an Event of
               Default.

9.2  The occurrence of any of the following shall be an event of default
     hereunder ("EVENTS OF DEFAULT"):

     9.2.1    the Borrower fails to pay or discharge any of the monies due
              hereunder on the due date therefor; or

     9.2.2    the Borrowers fails to comply with any other provision of this
              Agreement; or

     9.2.3    the Borrower fails to comply with any material provision of a
              Finance Document; or

     9.2.4    on or after 30 June 2002, the Borrower fails to comply with any
              of the provisions pursuant to or in connection with the
              Preference Shares;

     9.2.5    any material representation or material warranty made or deemed
              to be made to the Lender by, or in respect of, the Borrower is or
              proves to have been or becomes incorrect or misleading in any
              material respect; or

     9.2.6    any indebtedness of the Borrower is not paid when due or becomes
              due and payable for any creditor of the Borrower becomes entitled
              to declare any such indebtedness due and payable) prior to the
              date when it would otherwise have become due or any guarantee or
              indemnity given by the Borrower in respect of indebtedness is not
              honoured when due and called upon or any facility or commitment
              available to the Borrower is withdrawn, suspended or cancelled by
              reason of any default (howsoever described) of the Borrower; or

     9.2.7    enforcement action is taken in respect of any Security Interest
              created by the Borrower;

     9.2.8    the Borrower is deemed unable to pay its debts within the meaning
              of section 123(1)(a), (b), (e) or (2) of the Insolvency Act 1986
              or otherwise becomes insolvent or stops or suspends making
              payments with respect to all or any class of its debts or
              announces an intention to do so (other than a debt disputed by the
              Borrower in good faith); or

     9.2.9    any judgment or order made against the Borrower is not complied
              with

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                or discharged within seven days or any execution, distress,
                sequestration or other process is levied or enforced upon or
                against the assets of the Borrower and is not discharged within
                seven days; or

      9.2.10    any petition is presented or other step is taken for the purpose
                of winding-up the Borrower (other than a winding-up petition
                which is disputed by the Borrower in good faith) or an order is
                made or resolution passed for the winding-up of the Borrower or
                a notice is issued convening a meeting for the purpose of
                passing any such resolution; or

      9.2.11    any petition is presented or other step is taken for the purpose
                of the appointment of an administrator of the Borrower or an
                administration order is made in relation to the Borrower; or

      9.2.12    any administrative or other receiver is appointed of the
                Borrower or its assets and/or undertaking or any other steps are
                taken to enforce any Security Interest over the assets of the
                Borrower; or

      9.2.13    any steps are taken, or negotiations commenced, by the Borrower
                or by the majority of its creditors in value with a view to
                proposing any kind of composition, compromise or arrangement
                involving the Borrower and the aforementioned creditors; or

      9.2.14    on or after 30 June 2002, there occurs, in relation to the
                Borrower, in any country or territory in which it carries on
                business or to the jurisdiction of the courts of which its
                assets are subject, any event which, in the opinion of the
                Lender, appears in that country or territory to correspond with,
                or have an effect equivalent or similar to, any of those
                mentioned in paragraphs 9.2.10-9.2.13 above or the Borrower
                otherwise becomes subject, in any such country or territory, to
                the operation of any law relating to insolvency, bankruptcy or
                liquidation; or

      9.2.15    the Borrower suspends or ceases to carry on its business or any
                material part thereof or materially alters the nature of its
                business as now conducted or a material part of the assets of
                the Borrower are disposed of or compulsorily acquired or any
                steps are taken to do any of the same; or

      9.2.16    the Borrower is required to proceed with a Share Issue in
                accordance with Clause 7.4 and fails to issue a circular to
                shareholders announcing the Share Issue within 14 days of the
                relevant Due Date or if such circular does not meet the criteria
                set out in Clause 7.4.

10.   PAYMENTS

10.1  All payments due to be made by the Borrower to the Lender hereunder shall
      be made to the Lender in full without any deduction or withholding
      (whether in respect of set-off, counterclaim, duties, taxes, charges or
      otherwise howsoever) unless required by statute or law and in freely
      available funds to such account


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      specified for such purpose by the Lender.

10.2  All taxes in respect of this Agreement and any amounts paid or payable
      hereunder shall be paid by the Borrower when due and in any event prior to
      the date on which penalties attach thereto. If any such taxes or amounts
      in respect thereof must be deducted from any moneys payable or paid by the
      Borrower hereunder, the Borrower shall pay such additional amounts as may
      be necessary to ensure that the Lender receives after the payment or
      deduction of such taxes or amounts an amount equal to the full amount
      which it would have received had the payment not been made subject to the
      deduction of such taxes or other amounts.

10.3  As soon as practicable after each payment by the Borrower hereunder of tax
      or in respect of taxes, the Borrower shall deliver to the Lender evidence
      satisfactory to the Lender (including all relevant tax receipts) that such
      tax has been duly remitted to the appropriate authority.

10.4  If the Borrower makes a payment pursuant to clause 10.2 for the account of
      the Lender and the Lender receives or has been granted a credit against or
      relief or remission for or payment of any tax paid or payable by it in
      respect of or calculated with reference to the deduction or withholding
      giving rise to such payment, the Lender shall to the extent that it can do
      so without prejudice to the retention of the amount of such credit,
      relief, remission or payment, pay to the Borrower such amounts as the
      Lender shall properly determine (and so that this obligation shall not
      arise if such determination is not practical or would involve
      disproportionate expense) to be attributable to such credit, relief,
      remission or payment and which would leave the Lender (after such payment)
      in no better or worse position that it would have been in if the Borrower
      had not been required to make such deduction, withholding or payment.

11.   OVERDUE PAYMENTS

11.1  If and to the extent that full payment of any amount due hereunder is not
      made by the Borrower on the due date then, without prejudice to the
      Lender's other rights, interest will be charged on such overdue amount,
      from the date of such default to the date upon which payment is received
      by the Lender, on the basis of a year of 365 days relating to the relevant
      currency and the actual number of days elapsed accruing on a daily basis
      at the Default Rate.

11.2  If:-

      11.2.1  any amount payable by a Borrower under the Loan or in connection
              therewith is received by the Lender in a currency (the "PAYMENT
              CURRENCY") other than that agreed to be payable thereunder (the
              "AGREED CURRENCY") whether as a result of any judgement or order
              or the enforcement thereof, the liquidation of Borrower or
              otherwise howsoever; and

      11.2.2  the amount produced by converting the Payment Currency so received




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             into the Agreed Currency is more or less than the relevant amount
             of the Agreed Currency, then, if less, the Borrower shall, as an
             independent obligation, indemnify the Lender for the deficiency and
             any loss sustained as a result and, if more, the Lender shall pay
             the difference to the Borrower. Such conversion shall be made at
             such prevailing rate of exchange, on such date and in such market
             as is determined by the Lender as being most appropriate for such
             conversion. The Borrower waives any right it may have in any
             jurisdiction to pay any amount under the Loan in a currency other
             than that in which it is expressed to be payable hereunder.

12.   FEES

12.1  The Lender agrees to commit to providing the Loan Amount, provided that a
      Schedule 2 is completed prior to 31 March 2002 and in return the Borrower
      agrees that the Lender is entitled to a commitment fee of L140,000 plus
      VAT no later than 31 March 2002.

12.2  Upon the Agreement Date the Lender shall also be entitled to all costs,
      charges and expenses incurred and any VAT on those costs, charges and
      expenses in connection with the negotiation, preparation and execution of
      this Agreement, including any costs charges and expenses discharged by the
      Lender on behalf of the Borrower.

12.3  The Borrower will pay to the Lender upon first demand all costs, charges
      and expenses incurred and any VAT on those expenses in relation to the
      granting of any release, waiver or consent in connection with any
      amendment or variation of this Agreement and the Inter-Creditor Agreement.

12.4  The Borrower will pay to the Lender from 31 March 2002 (being the date of
      first payment) a quarterly renewal fee (payable in arrears) equal to the
      greater of L2,500 or 0.5% of the principal sums guaranteed by the Lender
      on behalf of the obligations of the Borrower as set out in Schedule 4 and
      as amended from time to time.

12.5  All amounts to which the Lender is entitled under Clauses 12.1 to 12.4
      shall be added to the Loan Amount upon the Agreement Date (or later if
      applicable) and shall be deemed to be the subject of a Drawdown Notice
      upon notification by the Lender to the Borrower of the relevant amounts.

12.6  The Lender's calculation of all amounts due hereunder whether for
      principal or interest shall in the absence of manifest error be
      conclusive.

13.   SECURITY

      The Lender, Borrower and any other principal lender shall enter into the
      Inter-Creditor Agreement prior to or at the same time as the principal
      lender enters into new financing arrangements with the Borrower.

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14.    COSTS AND EXPENSES

       The Borrower shall pay all costs, charges and expenses arising in
       connection with the preservation and/or enforcement of the Lender's
       rights under this Agreement or under the Inter-Creditor Agreement and
       will indemnify the Lender on first demand for any and all losses, costs
       and expenses occasioned by the occurrence of a demand made hereunder.

15.    GENERAL COVENANTS

15.1   Negative pledge & Disposals

       The Borrower covenants with the Lender that it shall not at any time
       during the continuance of this Agreement:

       15.1.1   create or attempt to create or permit to subsist any Security
                Interest (other than a Permitted Security Interest);

       15.1.2   part with possession of, transfer, sell lease or otherwise
                dispose of the Charged Assets or any part thereof or any
                interest therein (or attempt or agree so to do) whether by a
                single transaction or a series of transactions other than in the
                ordinary course of business.

15.2   Other general covenants

       The Borrower covenants with the Lender that it shall:

       15.2.1   promptly comply with all orders, regulations, notices and
                directives issued or made by any competent authority which are
                necessary for the use or enjoyment of the Charged Assets or to
                preserve their value;

       15.2.2   comply as soon as reasonably practical with and pay all charges
                imposed by all statutes, statutory instruments, by-laws and
                other legislation relating to the Charged Assets;

       15.2.3   observe and perform all other material obligations and/or
                restrictions affecting the Charged Assets or any part or parts
                thereof whether contained in or arising by virtue of the
                memorandum and articles of association of the Borrower or any
                lease, letting or other agreement, undertaking or arrangement to
                which it is a party or by which the Borrower or any of the
                Charged Assets are or may be affected;

       15.2.4   not do or cause or permit to be done anything which may in any
                way materially depreciate, jeopardise or otherwise prejudice the
                value to the Lender of the Charged Assets;

       15.2.5   conduct and carry on its business in a proper and efficient
                manner and not make any substantial alteration in the nature of
                or mode of conduct


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               of that business and keep or cause to be kept proper books of
               account relating to such business;

     15.2.6    punctually pay and indemnify the Lender against all rents,
               rates, taxes, duties, charges, assessments, impositions and
               other outgoings (whether imposed by agreement, statute or
               otherwise and whether in the nature of capital or revenue) now or
               at any time during the continuance of this Agreement properly
               payable in respect of the Charged Assets or any part thereof;

     15.2.7    keep the Lender indemnified against any actions, claims or
               demands made in connection with all or any part of the Charged
               Assets.

16.  AVOIDANCE OF PAYMENTS

     Any settlement, under this Agreement between the Borrower on the one hand
     and the Lender on the other shall be conditional upon no payment to the
     Lender being avoided or set aside or reduced or ordered to be refunded by
     virtue of any provisions of any enactments relating to bankruptcy,
     liquidation, administration or insolvency for the time being in force.

17.  WARRANTY

     The Borrower hereby warrants to the Lender that nothing in this Agreement
     shall contravene its memorandum or articles of association or any
     provision of (or constitute a default under) any agreement or arrangement
     to which it may be a party or by which it or any of its undertaking,
     property or assets may be bound.

18.  INDEMNITY

     The Borrower shall on demand indemnify the Lender against any funding or
     other cost, loss, expense or liability sustained or incurred by it as a
     result of any sum payable by the Borrower hereunder not being paid when
     due.

19.  SET-OFF

     The Lender shall be entitled (as well before as after demand hereunder) to
     set-off against any amount owed by it to the Borrower with any amount owed
     to it hereunder by the Borrower whether for interest or principal.

20.  SEVERANCE

     If at any time any one or more of the provisions contained in this letter
     is or becomes invalid, illegal or unenforceable in any respect the
     validity, legality or enforceability of the remaining provisions hereof
     shall not in any way be affected or impaired thereby.

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21.  NON-WAIVER AND REMEDIES

21.1 No failure to exercise and no delay in exercising on the part of the
     Lender, any right, power or privilege under this Agreement shall operate as
     a waiver thereof, nor shall any single or partial exercise of any right,
     power or privilege preclude any other or further exercise thereof, or the
     exercise of any other right, power or privilege. No waiver by the Lender
     shall be effective unless it is in writing signed by the Lender.

21.2 Remedies

     The rights and remedies of the Lender provided in this Agreement are
     cumulative and not exclusive of any rights or remedies provided by law or
     under this Agreement.

22.  INFORMATION

22.1 The Borrower undertakes that it will:

     22.1.1    deliver to the Lender as soon as they are publicly released
               copies of any press releases or in-house brokers commentary;

     22.1.2    deliver to the Lender within 30 days of the end of each calendar
               month to which they relate (or upon request from the Lender at
               any time) copies of the monthly management accounts, in profit &
               loss and balance sheet format on a consolidated basis;

     22.1.3    deliver to the Lender as soon as they are available (and in any
               event within 4 months of the end of the first half-year of each
               of its financial years) the unaudited preliminary results of the
               Group for that half year;

     22.1.4    deliver to the Lender as soon as they become available (and in
               any event within 6 months of the end of each financial year)
               copies of its audited financial statement for that period and the
               audited consolidated financial statements of the Group (and of
               each member of the Group); and

     22.1.5    deliver to the Lender the annual budget when approved by the
               board, on a consolidated basis.

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23.  CHANGE IN CURRENCY

27.1 If a change in the currency or denomination of Sterling occurs, this
     Agreement will be amended to the extent the Lender specifies to be
     necessary to reflect that change and to put the Lender in the same
     position, so far as possible, that it would have been in if no such change
     had occurred.

24.  NOTICES

24.1 Every notice or other communication made under this Agreement shall unless
     otherwise stated be in writing and shall be given:

     24.1.1    in the case of the Borrower to its registered office;

     24.1.2    in the case of the Lender to 90 Fetter Lane, London EC4A 1JP;

     24.1.3    or to any address or facsimile number as either the Lender or the
               Borrower may from time to time notify the other in writing.

24.2 Every notice or other communication shall be deemed to have been
     received:

     24.2.1    in the case of a letter when delivered personally or two days
               after its posting by first class post;

     24.2.2    in the case of a facsimile transmission when dispatched.

25.  VARIATIONS

     This Agreement and any rights arising by virtue of any provision hereof may
     be varied or waived by notice in writing signed by the Borrower and the
     Lender.

26.  COUNTERPARTS

     This Agreement may be executed in any number of counterparts and all of
     such counterparts taken together shall be deemed to constitute one and the
     same instrument.

27.  JURISDICTION

27.1 The Borrower irrevocably agrees for the benefit of the Lender that the
     courts of England shall have jurisdiction to hear and determine any suit,
     action or proceeding, and to settle any disputes, which may arise out of or
     in connection with this Agreement and, for such purposes, irrevocably
     submits to the jurisdiction of such courts.

27.2 The Borrower irrevocably waives objection which it might now or hereafter
     have to the courts referred to in clause 27.1 (Jurisdiction) being
     nominated as the forum to hear and determine any suit, action or
     proceeding, and to settle any disputes which may arise out of or in
     connection with this Agreement and agrees not to




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     claim that any such court is not a convenient or appropriate forum.

27.3 The submission to the jurisdiction of the courts referred to in clause 27.1
     (Jurisdiction) shall not (and shall not be construed so as to) limit the
     right of the Lender to take proceedings against any Borrower in any other
     court of competent jurisdiction nor shall the taking of proceedings in any
     one of more jurisdictions preclude the taking of proceedings on any other
     jurisdiction (whether concurrently or not) if and to the extent permitted
     by applicable law.

27.4 The Borrower hereby consents generally in respect of any legal action or
     proceeding arising out of or in connection with this Agreement to the
     giving of any relief or the issue of any process in connection with such
     action or proceeding.

28.  GOVERNING LAW

     This Agreement shall be governed and construed in accordance with English
     law.

29.  ACCEPTANCE

     The Borrower's acceptance of the terms and conditions contained in this
     letter shall be effected by the receipt by the Lender of the documents
     specified in Schedule 1. If such acceptance has not been effected within a
     period of 30 days from the date of this letter then the offer comprised in
     this letter shall lapse.

Yours faithfully                        Accepted and agreed

/s/ John D. Kearney                     /s/ [Illegible]

For and on behalf of                    For and on behalf of

Daisytek UK Limited                     ISA International plc


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