Document:

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EXHIBIT 10.1

                                                         DATE: DECEMBER 19, 2001

                                   TERM SHEET

         REPAYMENT OF THE SUBORDINATED NOTE DUE TO SOFTLINE LIMITED AND
         THE EXCHANGE OF COMMON STOCK FOR SERIES A CONVERTIBLE PREFERRED

The following term sheet sets forth an outline of the terms of the proposed
transactions being: (a) the repayment of the subordinated note due to Softline
Limited by SVI Solutions, Inc. with certain assets of SVI Solutions, Inc. and
the issuance of Series A Convertible Preferred Securities (referred to herein as
the "Repayment"); and (b) the issuance of Series A Convertible Preferred
Securities in exchange for a portion of Common Stock of SVI Solutions, Inc. held
by Softline Limited (the "Exchange") (referred to herein, individually and
collectively, as the "Transaction(s)"). The completion of each proposed
Transaction shall be contingent upon each other Transaction.

PARTIES:                            SVI Solutions, Inc. is a Delaware
                                    corporation ("SVI") with 37,936,901 shares
                                    of common stock, par value US$0.0001 per
                                    share (the "Common Stock"), issued and
                                    outstanding. SVI Common Stock is listed on
                                    the American Stock Exchange under the symbol
                                    "SVI".

                                    Softline Limited is a South African
                                    corporation ("Softline") whose common stock
                                    is listed on the Johannesburg Stock Exchange
                                    under the symbol "SFT". Softline is the
                                    largest stockholder of SVI, owning
                                    19,028,715 (50.2%) shares of SVI Common
                                    Stock. In addition, SVI also has a
                                    subordinated note outstanding to Softline in
                                    the amount of US$12.3 million, including
                                    accrued interest (the "Softline Note")
                                    through December 31, 2001.

REPAYMENT:                          SVI and Softline shall enter into an
                                    agreement pursuant to which SVI shall repay
                                    the Softline Note in its entirety with the
                                    following consideration:

                                    (i)      (i) $7 million in the form of the
                                             note receivable due from Kielduff
                                             Investments Limited, without
                                             recourse, acquired in connection
                                             with the sale of IBIS Systems
                                             Limited (the "IBIS Note") and the
                                             underlying security of 1,536,000
                                             common shares of Integrity
                                             Software, Inc. The IBIS Note and
                                             the right to convert the IBIS Note
                                             into the underlying common shares
                                             are transferable without
                                             limitation.

                                    (ii)     (ii) $5.3 million in the form of
                                             Series A Convertible Preferred
                                             Securities described in Attachment
                                             A.
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EXCHANGE:                           SVI and Softline shall enter into an
                                    agreement pursuant to which Softline shall
                                    exchange 10.7 million shares of SVI Common
                                    Stock for $8.8 million of Series A
                                    Convertible Preferred Securities described
                                    in Attachment A.

REGISTRATION RIGHTS:                With respect to the 8.3 million
                                    shares of Common Stock and the additional
                                    Common Stock issuable upon conversion of the
                                    Series A Convertible Preferred Securities,
                                    Softline shall be entitled to the following
                                    registration rights:

                                    (i) Demand registration rights - During such
                                    time as the Company is S-3 eligible,
                                    Softline shall have the right to require the
                                    Company to file registration statements on
                                    Form S-3 (or any equivalent successor form),
                                    to register a specific number of its shares
                                    over a defined time schedule to be
                                    determined in conjunction with the pending
                                    private equity placement by SVI.

                                    (ii) Piggyback registration rights -
                                    Softline shall have the right to participate
                                    in an unlimited number of Company public
                                    offerings subject to customary exclusions
                                    including pro rata cutback to an appropriate
                                    percentage of the offering at the
                                    underwriter's discretion and the execution
                                    of the underwriting agreement.

                                    The registration rights shall be
                                    non-transferable. The Company shall pay all
                                    registration, legal and other expenses
                                    relating to the registrations (other than
                                    underwriting discounts and commissions) and
                                    shall provide appropriate indemnification.

PRIVATE SALES:                      Softline shall also be entitled to
                                    sell its securities in any number of private
                                    sales, subject to applicable laws, however,
                                    SVI shall have a right of first refusal to
                                    acquire Softline's shares prior to such
                                    private sales. SVI shall not exercise such
                                    right to acquire less than 100% of the
                                    shares to be offered by Softline in any
                                    single private sale.

STOCKHOLDER VOTE:                   SVI's obligations are subject to it
                                    obtaining stockholder approval of the
                                    Transactions (including possibly the
                                    separate approval of SVI's disinterested
                                    stockholders). As such, Softline agrees to
                                    sign a proxy guaranteeing the vote of its
                                    SVI Common Stock in favor of the proposed
                                    Transactions.

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FAIRNESS OPINION:                   SVI's obligations are subject to it
                                    obtaining a favorable opinion (if it elects
                                    to do so) from a recognized valuation expert
                                    that the Transactions as a whole are fair to
                                    stockholders from a financial point of view.

LENDER APPROVAL:                    To the extent that SVI has outstanding
                                    indebtedness to the Union Bank of
                                    California, the sale of the IBIS Note
                                    requires the release of the security
                                    interest of the Union Bank of California.
                                    The Union Bank of California has agreed to
                                    release the IBIS Note if certain conditions
                                    are met.

REGULATORY APPROVAL:                The Transactions are subject to the approval
                                    of the South African Exchange Control and
                                    compliance with the listing requirements of
                                    the Johannesburg Stock Exchange. Softline
                                    shall use its best efforts to obtain these
                                    approvals by February 15, 2002.

SOFTLINE APPROVAL:                  The Transactions are subject to the approval
                                    of the directors of both Softline Limited
                                    and SVI Solutions Inc. The parties shall use
                                    their best efforts to obtain this approval
                                    by January 31, 2002.

GOVERNING LAW:                      The governing law for the Transactions shall
                                    be Delaware law, and all parties shall
                                    submit to non-exclusive jurisdiction of
                                    Delaware.

CONFIDENTIALITY:                    The existence and terms of this term sheet
                                    are confidential and the Parties agree not
                                    to disclose or divulge such existence or
                                    terms unless otherwise required by law or
                                    otherwise mutually agreed.

EFFECTIVE DATE:                     The effective date for the Transactions
                                    shall be December 31, 2001.

<PAGE>

This term sheet is intended to be a summary evidencing the intentions and
agreement of SVI and Softline as reflected in their discussions to date and
supersedes all prior discussions or arrangements between them. Upon execution by
each of SVI and Softline, (i) the terms and conditions of the term sheet shall
be legally binding obligations on each of SVI and Softline, respectively,
enforceable in accordance with its terms until terminated in accordance with the
next paragraph, and (ii) each will use best efforts to negotiate and execute
definitive Transaction documentation within two months from the date of
execution of this binding term sheet and consummate the Transactions.

The agreement and this binding term sheet will automatically terminate and be of
no further force and effect upon the earlier of (i) the execution of definitive
Transaction documents, (ii) mutual agreement of SVI and Softline, or (iii) in
the event that definitive Transaction documents are not executed within two
months from the date of execution of this binding term sheet. Notwithstanding
the previous sentence, the termination of this agreement shall not affect any
rights any party has with respect to the breach of this agreement by another
party prior to such termination.

The execution, delivery and performance of this binding term sheet by each of
the parties hereto, and the consummation by each of the parties hereto of the
Transactions contemplated hereby, is subject to the successful attainment of all
of the approvals required by this binding term sheet.

This term sheet shall be governed by and construed in accordance with the laws
of the State of Delaware without giving effect to the conflicts of laws
principles thereof.

This term sheet may be executed in two or more counterparts, and by the
different parties hereto in separate counterparts, each of which when executed
shall be deemed to be an original but all of which taken together shall
constitute one and the same agreement.

<PAGE>

Accepted and Agreed:

SOFTLINE LIMITED

By:
    -------------------------------------------------
Ivan Epstein
Chief Executive Officer

Accepted and Agreed:

SVI SOLUTIONS, INC.

By:
    -------------------------------------------------
Barry Schechter
Chief Executive Officer

<PAGE>

             ATTACHMENT A: SERIES A CONVERTIBLE PREFERRED SECURITIES

ISSUER:                             SVI Solutions, Inc. ("SVI" or the
                                    "Company").

SECURITIES ISSUED:                  Convertible Preferred Securities
                                    ("Convertible Preferred").

AMOUNT:                             $14.1 million.

RETURN:                             7% return is cumulative and accrues on a
                                    semiannual basis from the date of issue.

DATE OF MATURITY:                   December 31, 2006 (5-year term).

REDEMPTION AT MATURITY:             If the Convertible Preferred has not been
                                    called by the Company or converted into
                                    Common Stock by the Holder prior to the Date
                                    of Maturity, the Convertible Preferred shall
                                    be redeemed at par plus accrued and unpaid
                                    semiannual payments for, Common Stock of the
                                    Company (ranking pari passu with the
                                    existing Common Stock then in issue) at a 5%
                                    discount to the 10-day average closing price
                                    prior to the Date of Maturity.

CALL FEATURE:                       The Convertible Preferred is callable at
                                    107% of the sum of par and unpaid and
                                    accrued semiannual payments at any time by
                                    the Company. The Company may not call (i)
                                    less than US$1 million at a time and (ii)
                                    more than once within any 30-day period. The
                                    Company shall provide written notice to the
                                    Holder of its intention to call no less than
                                    five (5) business days in advance. During
                                    this period, the Holder may elect to convert
                                    all or part of the called amount into Common
                                    Stock at the Conversion Price (as defined
                                    herein).

CONVERSION FEATURE:                 The Convertible Preferred is convertible in
                                    full or in part at any time at the option of
                                    the Holder into Common Stock (ranking pari
                                    passu with the existing Common Stock then in
                                    issue) at a designated price per share (the
                                    "Conversion Price"). The Conversion Price
                                    will initially be equal to US$0.80 per share
                                    and will increase at an annual rate of 3.5%
                                    calculated on a semiannual basis.

ANTIDILUTION PROVISIONS:            The Convertible Preferred is subject to
                                    customary anti-dilution protection,
                                    including adjustment of the Conversion Price
                                    upon the occurrence of stock dividends,
                                    stock splits, combinations,
                                    recapitalizations and similar events.

LIQUIDATION PREFERENCE:             In the event of any liquidation of the
                                    Company, the Holder shall be entitled to
                                    receive, in preference to the holders of the
                                    Common Stock, par plus accrued and unpaid
                                    semiannual payments.
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VOTING RIGHTS:                      The Holder of the Convertible Preferred
                                    shall have no voting rights prior to
                                    conversion into Common Stock, except as
                                    provided by law. Upon conversion into Common
                                    Stock, the Holder will have the right to the
                                    number of votes equal to the number of
                                    shares of Common Stock issued.<PAGE>

                                                                     Exhibit 4.1

       NUMBER                                                      SHARES
                      [CARDINAL FINANCIAL CORPORATION LOGO]

                                                               SEE REVERSE FOR
                                                             CERTAIN DEFINITIONS

           INCORPORATED UNDER THE LAWS OF THE COMMONWEALTH OF VIRGINIA
                         CARDINAL FINANCIAL CORPORATION

        The Corporation is authorized to issue 50,000,000 Common Shares -
                              Par Value $1.00 each

This certifies that _____________________________________ is the owner of
______________________________________ fully paid and non-assessable Shares of
the above Corporation transferable only on the books of the Corporation by the
holder hereof in person or by duly authorized Attorney upon surrender of this
Certificate properly endorsed.

In Witness Whereof, the said Corporation has caused this Certificate to be
signed by its duly authorized officers and to be sealed with the Seal of the
Corporation.

Dated __________________________

________________________________                  ______________________________
             SECRETARY/TREASURER                                       PRESIDENT

<PAGE>

         The shares of stock represented by the certificate have not been
registered under the Securities Act of 1933, as amended (the "Securities Act"),
and no transfer, sale, assignment, pledge, hypothecation or other disposition
of the shares represented by the certificate may be made except (A) pursuant to
an effective registration statement under the Securities Act and any applicable
state securities laws or (B) pursuant to an exemption from the provisions of
Section 5 of the Securities Act, and the rules and regulations in effect
thereunder, and applicable state securities laws.

         The following abbreviations, when used in the inscription on the face
of this certificate, shall be construed as though they were written out in full
according to applicable laws or regulations. Additional abbreviations may also
be used though not in the list.

<TABLE>
     <S>                                          <C>
     TEN COM - as tenants in common               UNIF GIFT MIN ACT -___________Custodian____________(Minor)
     TEN ENT - as tenants by the entireties         under Uniform Gifts to Minors Act_________________(State)
     JT TEN -  as joint tenants with right
               of survivorship and not as
               tenants in common
</TABLE>

                                          PLEASE INSERT SOCIAL SECURITY OR OTHER
                                                  IDENTIFYING NUMBER OF ASSIGNEE

For value received, the undersigned hereby sells, assigns and transfers unto

________________________________________________________________________________

________________________________________________________________________________
             PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS OF ASSIGNEE

________________________________________________________________________________

__________________________________________________________________________Shares

represented by the within Certificate, and hereby irrevocably constitutes and

appoints________________________________________________________________________

Attorney to transfer the said Shares on the books of the within-named
Corporation with full power of substitution in the premises.

Dated_________________________________

              In presence of               _____________________________________

______________________________________

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