Document:

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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

                                       12<PAGE>

                                                                   EXHIBIT 10.37

                                                                      SCOTIABANK

625 Cochrane Drive, Suite 200, Markham, Ontario L3R 9R9

                                                               February 27, 2001

Daisytek (Canada) Inc.
c/o Daisytek International Corporation
1025 Central Expressway South
Allen, Texas  75013

Attention:        Mr. George Maney,
                  Vice-President, Finance and Treasurer

Dear Sir:

         We confirm that subject to acceptance by you, The Bank of Nova Scotia
(the "Bank") will make available to Daisytek (Canada) Inc. (the "Borrower'),
credit facilities on the terms and conditions set out in the attached Terms and
Conditions Sheet and Schedule "A".

         If the arrangements set out in this letter, and in the attached Terms
and Conditions Sheet and Schedule "A" (collectively the "Commitment Letter") are
acceptable to you, please sign the enclosed copy of this letter in the space
indicated below and return the letter to us by the close of business on March
20, 2001, after which date this offer will lapse.

         This Commitment Letter replaces all previous commitments issued by the
Bank to the Borrower.

                                                  Very truly yours,

         /s/ J.A. NEATE                           /s/ I.C. McFETTERS
         ------------------------------           --------------------------
         J.A. Neate                               I.C. McFetters
         Senior Relationship Manager              Vice-President and Manager

         The arrangements set out above and in the attached Terms and Conditions
Sheet and Schedule "A" (collectively the "Commitment Letter") are hereby
acknowledged and accepted by:

DAISYTEK (CANADA), INC.
--------------------------------------------
Name:    Ralph Mitchell
By:      /s/ Ralph Mitchell
   -----------------------------------------
Title:   EVP & CFO

Date:    3/20/01
     ---------------------------------------

Name:    George Maney
By:      /s/ George Maney
   -----------------------------------------
Title:   VP Finance & Treasurer

Date:    3/20/01
     ---------------------------------------
<PAGE>
                                                                          Page 1

                              TERMS AND CONDITIONS

CREDIT NUMBER:  01                               AUTHORIZED AMOUNT:  $10,000,000
--------------------------------------------------------------------------------

TYPE

         Revolving Term

PURPOSE

         Assist with financing of day-to-day general operating requirements.

CURRENCY

         Canadian and/or U.S. dollar equivalent thereof.

AVAILMENT

         The Borrower may avail the Credit by way of direct advances evidenced
         by Demand Promissory Notes and/or Bankers' Acceptances in Canadian
         dollars in multiples of $500,000 and having terms of maturity of 30 to
         364 days without grace.

TERMINATION

         Provided the Borrower is in compliance with all terms and conditions
         outlined, the Revolving term facility is committed for 3 years
         following acceptance of this Commitment. Advances are repayable the
         earlier of the expiry of the facility or on demand by the Bank if the
         Borrower is in default of the terms and conditions outlined herein.

         In the event of extension, the Borrower is to provide written notice
         not less than 40 days and up to 90 days prior to expiry, requesting
         extension for a further period, subject to no event of default having
         occurred and with extension subject to the Bank's approval.

INTEREST RATE AND FEES

         (Canadian dollars:) The Bank's Prime Lending Rate, plus 50 basis
         points, from time to time, with interest payable monthly.

         (U.S. dollars:) The Bank's U.S. Dollar Base Rate in New York plus 50
         basis points, with interest payable monthly.

         (Bankers' Acceptances:) Bankers' Acceptance Fee of 200 basis points,
         subject to a minimum fee of $500 per transaction, payable at the time
         of each acceptance.

OTHER FEES

         A Standby Fee of 1/4% per annum on the daily unused portion of the
         Credit payable in Canadian dollars, is payable monthly from the date of
         acceptance of this commitment.

         A Commitment Fee of $25,000 is payable upon acceptance of this
         Commitment.
<PAGE>
                                                                          Page 2

REPAYMENT

         The Borrower may make repayment of advances under the Revolving Term
         facility at any time, other than term instruments which may be repaid
         at maturity.

PREPAYMENT

         Floating Interest Rate Advances

         Prepayment is permitted without penalty at any time in whole or in part
         except for Bankers' Acceptances which may be prepaid on maturity date.

         Prepayments are to be applied against installments of principal in the
         inverse order of their maturities.

SPECIFIC SECURITY

         The following security, evidenced by documents in form satisfactory to
         the Bank and registered or recorded as required by the Bank, is to be
         provided prior to any advances or availment being made under the
         Credit:

                  Bankers' Acceptance Agreement

                  Power of Attorney - Bankers' Acceptances.

ADDITIONAL FACILITIES

a)       Subject to availability and execution of mutually satisfactory
         documentation the Borrower may enter into Forward Exchange Contracts
         with the Bank for maximum terms of up to one year.

         Maximum aggregate Forward Exchange Contracts outstanding at any one
         time are not to exceed $5,000,000 U.S. dollars or the equivalent
         thereof in other approved currencies.

b)       Subject to availability, and to execution of mutually satisfactory
         documentation, based on the Bank's standard International Swap Dealers
         Association (ISDA) Master Agreement and Schedule, incorporating all
         security held pursuant to this Commitment Letter, the Borrower shall
         have the option, available until January 31, 2004 to enter into
         Interest Rate Swap transactions. The swap transactions are limited to
         U.S. and Canadian only, for terms not exceeding 3 years from the date
         of drawdown of the amount to be swapped. The aggregate amount of all
         outstanding transactions at any one time is not to exceed $10,000,000.

GENERAL SECURITY, TERMS, AND CONDITIONS APPLICABLE TO ALL CREDITS

GENERAL SECURITY

         The following security, evidenced by documents in form satisfactory to
         the Bank and registered or recorded as required by the Bank, is to be
         provided prior to any advances or availment being made under the
         Credits:

                General Security Agreement, with an agreed delay of attachment
                until negotiated trigger events occur, over all present and
                future personal property with appropriate insurance coverage,
                loss if any, payable to the Bank.
<PAGE>
                                                                          Page 3

                Inter-Creditor Agreement between The Bank of Nova Scotia and The
                Toronto-Dominion Bank, covering but not limited to advances,
                repayment, security, defaults, cross default, realization, etc.

                Postponement and Subordination by Daisytek, Inc. and any
                subsidiary identified by the Bank, as to intercorporate
                obligations including inventory return.

CONDITIONS PRECEDENT

         The following conditions are to be met to the satisfaction of the Bank
         and its solicitors prior to any advances or availments being made under
         the Credit(s):

                Written approval from Daisytek Inc.'s U.S. lenders that Daisytek
                (Canada) Inc. can enter into a springing security interest
                arrangement with its Canadian lending group.

GENERAL CONDITIONS

         Until all debts and liabilities under the Credits have been discharged
         in full, the following conditions will apply in respect of the Credits:

                Revolving Term advances are not to exceed the Borrowing Base
                which is defined as 80% of good quality accounts receivable
                (excluding accounts over 90 days, accounts due by employees,
                offsets and inter-company accounts), plus 50% of net inventory,
                less security interests or charges held by other parties and
                specific payables which have or may have priority over the Bank'
                s security.

                Net inventory is defined as the sum of finished goods and raw
                materials, valued at the lower of cost or market, less unpaid
                inventory received from suppliers during the past 30 days.

                The ratio of Current Assets to Current Liabilities is to be
                maintained at all times at 1.2:1 or better.

                Minimum Shareholder's Equity of $10,000,000 is to be maintained
                at all times.

                Shareholder's Equity is defined as the sum of share capital
                earned and contributed surplus.

                Leverage Ratio shall not exceed 3:1 at any time. The leverage
                ratio is calculated on a rolling four quarter basis and is
                defined as total funded debt over EBITDA for the four financial
                quarters ending at that time.

                EBITDA is defined as net income before extraordinary and other
                non-recurring items plus interest, income tax, depreciation and
                amortization expenses during the period.

                Any default under the Credit Agreement dated December 18, 2000
                and as subsequently amended, of Daisytek, Inc. constitutes a
                default under the terms of credits outlined herein regardless of
                cure, amendment or forbearance under the credit arrangements for
                Daisytek, Inc.

                The Borrower agrees that the terms and conditions including
                without limitation any security granted by the Borrower to any
                other lender, including The Toronto-Dominion Bank shall not be
                more favourable than the terms and conditions set out herein. In
                the event that the Borrower does not grant more favourable
                terms, conditions or security to
<PAGE>
                                                                          Page 4

                any other lender, the Borrower agrees that it shall grant the
                same terms and conditions including equal ranking security to
                the Bank hereunder.

                Without the Bank's prior written consent:

                       No change in ownership is permitted.

                       No dividends, withdrawals, advances to shareholders or
                       affiliates are permitted.

                       No payments are to be made to any affiliates other than
                       for the normal course of business.

GENERAL BORROWER REPORTING CONDITIONS

         Until all debts and liabilities under the Credits have been discharged
         in full, the Borrower will provide the Bank with the following:

                Annual Internally Prepared Unconsolidated Financial Statements,
                within 120 days of the Borrower's fiscal year end, duly signed.

                Annual Financial Statements of Daisytek, Inc, within 120 days of
                fiscal year end, duly signed.

                Annual Audited Consolidated Financial Statements of Daisytek
                International Corporation within 120 days of fiscal year end,
                duly signed.

                Annual Financial Statements of BSD Holdings, Inc. within 120
                days of fiscal year end, duly signed.

                Quarterly Internally Prepared Unconsolidated Financial
                Statements of the Borrower within 60 days of period end.

                Quarterly Compliance Certificate from the Borrower certifying
                compliance with all conditions of its credit facilities.

                Quarterly Prepared Consolidated Financial Statements of Daisytek
                International Corporation within 60 days of period end.

                Quarterly Compliance Certificate from Daisytek, Inc. certifying
                compliance with all conditions of its credit facilities.

                Monthly Borrowing Base Calculation for the Borrower, to include
                information on inventory, accounts receivable, and accounts
                payable, within 20 days of period end.

                A copy of any amendment to Daisytek, Inc.'s Credit Agreement or
                any new Credit Agreement in its entirety at the time of
                execution.

                Annual Unconsolidated Quarterly Projections of the Borrower for
                the current year, within 120 days of fiscal year end.
<PAGE>
                                                                          Page 5

                                   SCHEDULE A
                   ADDITIONAL TERMS AND CONDITIONS APPLICABLE
                                 TO ALL CREDITS

Calculation and Payment of Interest

1.       Interest on loans/advances made in Canadian dollars will be calculated
         on a daily basis and payable monthly on the 22nd day of each month
         (unless otherwise stipulated by the Bank). Interest shall be payable
         not in advance on the basis of a calendar year for the actual number of
         days elapsed both before and after demand of payment or default and/or
         judgment.

2.       Interest on loans/advances made in U.S. dollars will be calculated on a
         daily basis and payable monthly on the 22nd day of each month, (unless
         otherwise stipulated by the Bank). Interest shall be payable not in
         advance on the basis of a 360 day year for the actual number of days
         elapsed both before and after demand of payment or default and/or
         judgment. The rate of interest based on a 360 day year is equivalent to
         a rate based on a calendar year of 365 days of 365/360 times the rate
         of interest that applies to the U.S. dollar loans/advances.

Interest on Overdue Interest

3.       Interest on overdue interest shall be calculated at the same rate as
         interest on the loans/advances in respect of which interest is overdue,
         but shall be compounded monthly and be payable on demand, both before
         and after demand and judgment.

Indemnity Provision

4.       If the introduction or implementation of, or any change in, or in the
         interpretation of, or any change in its application to the Borrower of,
         any law or any regulation or guideline issued by any central bank or
         other governmental authority (whether or not having the force of law),
         including, without limitation, any reserve or special deposit
         requirement or any tax (other than tax on the Bank's general income) or
         any capital requirement, has due to the Bank's compliance the effect,
         directly or indirectly, of (i) increasing the cost to the Bank of
         performing its obligations hereunder or under any availment hereunder;
         (ii) reducing any amount received or receivable by the Bank or its
         effective return hereunder or in respect of any availment hereunder or
         on its capital; or (iii) causing the Bank to make any payment or to
         forgo any return based on any amount received or receivable by the Bank
         hereunder or in respect of any availment hereunder, then upon demand
         from time to time the Borrower shall pay such amount as shall
         compensate the Bank for any such cost, reduction, payment or forgone
         return (collectively "Increased Costs") as such amounts are calculated
         in a certificate reasonably prepared by the Bank. The Bank agrees to
         provide written notice of any such increased costs.

         In the event of the Borrower becoming liable for such Increased Costs,
         the Borrower shall have the right to prepay in full, without penalty,
         the outstanding principal balance under the affected credit other than
         the face amount of any document or instrument issued or accepted by the
         Bank for the account of the Borrower, including, without limitation, a
         Letter of Credit, a Letter of Guarantee or a Bankers' Acceptance. Upon
         any such prepayment, the Borrower shall also pay the then accrued
         interest on the amount prepaid and the Increased Costs to the date of
         prepayment together with such amount as will compensate the Bank for
         the cost of any early termination of its funding arrangements in
         accordance with its normal practices, as such amounts are calculated in
         a certificate reasonably prepared by the Bank.
<PAGE>
                                                                          Page 6

Calculation and Payment of Bankers' Acceptance Fee

5.       The fee for the acceptance of each Bankers' Acceptance will be payable
         on the face amount of each Bankers' Acceptance at the time of
         acceptance of each draft calculated on the basis of a calendar year for
         the actual number of days elapsed from and including the date of
         acceptance to the due date of the draft.

Calculation and Payment of Standby Fee

6.       Standby fees shall be calculated daily and payable monthly on the basis
         of a calendar year for Canadian dollar credits and on the basis of a
         360 day year for U.S. dollar credits from the date of acceptance by the
         Borrower of this Commitment Letter.

Environment

7.       The Borrower agrees:

         (a)      to obey all applicable laws and requirements of any federal,
                  provincial, or any other governmental authority relating to
                  the environment and the operation of the business activities
                  of the Borrower;

         (b)      to allow the Bank upon reasonable prior notice and at
                  reasonable times access to the business premises of the
                  Borrower to monitor and inspect all property and business
                  activities of the Borrower;

         (c)      to notify the Bank from time to time of any business activity
                  conducted by the Borrower which involves the use or handling
                  of hazardous materials or wastes or which increases the
                  environmental liability of the Borrower in any material
                  manner;

         (d)      to notify the Bank of any proposed change in the use or
                  occupation of the property of the Borrower prior to any change
                  occurring;

         (e)      to provide the Bank with immediate written notice of any
                  environmental problem and any hazardous materials or
                  substances which have an adverse effect on the property,
                  equipment, or business activities of the Borrower and with any
                  other environmental information requested by the Bank from
                  time to time;

         (f)      to conduct all environmental remedial activities which a
                  commercially reasonable person would perform in similar
                  circumstances to meet its environmental responsibilities and
                  if the Borrower fails to do so, the Bank may perform such
                  activities; and

         (g)      to pay for any environmental investigations, assessments or
                  remedial activities with respect to any property of the
                  Borrower that may be performed for or by the Bank from time to
                  time, subject to written approval by the Borrower, which will
                  not be unreasonably withheld.
<PAGE>
                                                                          Page 7

         If the Borrower notifies the Bank of any specified activity or change
         or provides the Bank with any information pursuant to subsections (c),
         (d), or (e), or if the Bank receives any environmental information from
         other sources, the Bank, in its sole discretion, may decide that an
         adverse change in the environmental condition of the Borrower or any of
         the property, equipment, or business activities of the Borrower has
         occurred which decision will constitute, in the absence of manifest
         error, conclusive evidence of the adverse change. Following this
         decision being made by the Bank, the Bank shall notify the Borrower of
         the Bank's decision concerning the adverse change.

         If the Bank decides or is required to incur expenses in compliance or
         to verify the Borrower's compliance with applicable environmental or
         other regulations, the Borrower shall indemnify the Bank in respect of
         such expenses, which will constitute further advances by the Bank to
         the Borrower under this Agreement, subject to the stipulations noted in
         subsection (g).

Initial Drawdown

8.       The right of the Borrower to obtain the initial drawdown under the
         Credit(s) is subject to the condition precedent that there shall not
         have been any material adverse changes in the financial condition of
         the environmental condition of the Borrower or any guarantor of the
         Borrower.

Evidence of Indebtedness

9.       The Bank's accounts, books and records constitute, in the absence of
         manifest error, conclusive evidence of the advances made under this
         Credit, repayments on account thereof and the indebtedness of the
         Borrower to the Bank.

Acceleration

10.      (a)      All indebtedness and liability of the Borrower to the Bank
                  payable on demand, is repayable by the Borrower to the Bank at
                  any time on demand;

         (b)      All indebtedness and liability of the Borrower to the Bank not
                  payable on demand, shall, at the option of the Bank, become
                  immediately due and payable, the security held by the Bank
                  shall immediately become enforceable, and the obligation of
                  the Bank to make further advances or other accommodation
                  available under the Credits shall terminate, if any one of the
                  following Events of Default occurs:

                  (i)      the Borrower or any guarantor fails to make when due,
                           whether on demand or at a fixed payment date, by
                           acceleration or otherwise, any payment of interest,
                           principal, fees, commissions or other amounts payable
                           to the Bank;

                  (ii)     there is a breach by the Borrower or any guarantor of
                           any other term or condition contained in this
                           Commitment Letter or in any other agreement to which
                           the Borrower and/or any guarantor and the Bank are
                           parties;

                  (iii)    any default occurs under any security listed in this
                           Commitment Letter under the headings "Specific
                           Security" or "General Security" or under any other
                           credit, loan or security agreement to which the
                           Borrower and/or any guarantor is a party;

                  (iv)     any bankruptcy, re-organization, compromise,
                           arrangement, insolvency or liquidation proceedings or
                           other proceedings for the relief of debtors are
<PAGE>
                                                                          Page 8

                           instituted by or against The Borrower or any
                           guarantor and, if instituted against the Borrower or
                           any guarantor, are allowed against or consented to by
                           the Borrower or any guarantor or are not dismissed or
                           stayed within 60 days after such institution;

                  (v)      a receiver is appointed over any property of the
                           Borrower or any guarantor or any judgment or order or
                           any process of any court becomes enforceable against
                           the Borrower or any guarantor or any property of the
                           Borrower or any guarantor or any creditor takes
                           possession of any property of the Borrower or any
                           guarantor;

                  (vi)     any course of action is undertaken by the Borrower or
                           any guarantor or with respect to the Borrower or any
                           guarantor which would result in the Borrower's or
                           guarantor's reorganization, amalgamation or merger
                           with another corporation or the transfer of all or
                           substantially all of the Borrower's or any
                           guarantor's assets;

                  (vii)    any guarantee of indebtedness and liability under the
                           Credit Line is withdrawn, determined to be invalid or
                           otherwise rendered ineffective;

                  (viii)   any adverse change occurs in the environmental
                           condition of:

                           (A)      the Borrower or any guarantor of the
                                    Borrower; or

                           (B)      any property, equipment, or business
                                    activities of the Borrower or any guarantor
                                    of the Borrower.

Costs

11.      All costs, including legal and appraisal fees incurred by the Bank
         relative to security and other documentation and the enforcement
         thereof, shall be for the account of the Borrower and may be charged to
         the Borrower's deposit account when submitted.

Judgment Currency

12.      The obligations of the Borrower or any Guarantor shall be payable in
         (Canadian/US) Dollars. Such obligations shall not be discharged or
         satisfied by any tender or recovery pursuant to any judgment expressed
         in or converted into any other currency except to the extent to which
         such tender or recovery shall result in the effective receipt by the
         Bank of the full amount of (Canadian/US) Dollars so payable.
         Accordingly, the obligation of the Borrower shall be enforceable as an
         alternate or additional cause of action for the purpose of recovery in
         (Canadian/US) Dollars of the amount (if any) by which such effective
         receipt shall fall short of the full amount of (Canadian/U.S.) Dollars
         so payable and shall not be affected by any judgment being obtained for
         any other sum due hereunder.

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