1
Exhibit 10.1

[Bank One Logo]

[LETTERHEAD]

December 14, 2000

Mr. Thomas Graham
Director of Planning
Daisytek, Inc.
500 North Central Expressway
Plano, Texas.
75074-6763

Dear Tom:

We are pleased to inform you that Bank One Canada (the "Bank") has approved the
following credit facility for Daisytek Canada (the "Borrower") subject to the
Bank's continuing satisfaction with the Borrower's and Guarantors' managerial
and financial status. Disbursements under this facility are solely at the Bank's
discretion. Any disbursement on one or more occasion shall not commit the Bank
to make any subsequent disbursement.

This facility is subject to the following terms and conditions:

BORROWER: Daisytek Canada (the "Borrower")

GUARANTORS: Daisytek, Inc.
Daisytek International Corporation (the "Guarantors")

FACILITY: Segment (1) Revolving Credit Facility, to include the issuance of Standby
Letters of Credit, expiring January 01, 2002.
Segment (2) Foreign Exchange Facility

AMOUNT: Segment (1) CAD $5,000,000 (or USD equivalent)
Segment (2) USD $1,000,000 Foreign Exchange Facility

PURPOSE: Segment (1) General Corporate Purposes
Segment (2) To hedge against Foreign Exchange Rate fluctuations

2
[Bank One Logo]

Daisytek, Inc.
December 14, 2000
Page: 02

AVAILMENT: Segment (1) Available by way of:

(a) Prime based loans which are advanced
automatically in increments of CAD $10,000
to cover the Borrower's cheque issuances; or

(b) Banker's Acceptances or Cost-of-Funds based
loans.

Surplus funds in the accounts would be automatically
applied to the Prime based loans.

PRICING: At the Borrower's option:

Segment (1):
FOR CANADIAN DOLLARS BORROWINGS:

(a) Bank One Canada's Prime Rate - Floating;

(b) Bank One Canada's Banker's Acceptance Rate
or Cost-of-Funds Rate (CDOR) plus the
applicable spread, per the pricing grid in
the proposed domestic facility (see
Exhibit 1), plus 25 basis points (for
Canadian dollar borrowings the reference
rate will be CDOR instead of LIBOR); or

FOR UNITED STATES DOLLAR BORROWINGS:

(a) Bank One Canada's USD Base Rate;

(b) LIBOR plus the applicable spread, per the pricing
grid in the proposed domestic facility (see Exhibit 1), plus
25 basis points;

INCREMENTS:
Banker's Acceptances, Cost-of-Funds Loans (CDOR)
and LIBOR loans are available in minimum amounts
of CAD $1,000,000 (or in the case of USD
borrowings - USD $1,000,000) and in increments of
CAD or USD $100,000 for periods of not less than
30 days and not greater than 180 days.

3
[Bank One Logo]

Daisytek, Inc.
December 14, 2000
Page: 03

PAYMENT
OF INTEREST: Interest on Canadian Prime Based Loans and USD Base
Rate Loans are due monthly, in arrears.

Interest on Cost-of-Funds advances are due at
maturity and not less frequently than every 90 days.

REPAYMENT
OF PRINCIPAL: Segment (1) The Revolving Credit matures and is
due in full on or before
Maturity Date of January 01, 2002.

Segment (2) Any unutilized portion of
this Segment may be cancelled
at any time, from time to time,
without notice.

FACILITY FEE: Per the final pricing grid for the proposed domestic
facility (see Exhibit 1)

SECURITY: Unsecured.

NEGATIVE PLEDGE: The Borrower will not pledge or otherwise
encumber its assets as long as the revolving
credit remains in place, with the exception of
permitted encumbrances, which will be negotiated
prior to closing. In the event that collateral is
taken under the proposed domestic facility, the
subject facility will become secured by all
accounts receivable and inventory of the
Borrower.

SUPPORTING
DOCUMENTS: 1. Guarantee of Daisytek, Inc. and Daisytek
International Corporation, with
Supporting Resolutions.

2. Letter Loan Agreement (enclosed).

3. Promissory Note (enclosed).

4. Complete Signing Authorization Package
(Borrowing Resolution, Signature Cards, List
of Officers and Directors) (enclosed).

5. Articles of Incorporation for the Borrower
(held)

6. Forward Exchange Forward Contract Request
(enclosed).
4
[Bank One Logo]

Daisytek, Inc.
December 14, 2000
Page: 04

SERVICING
REQUIREMENTS: 1. Quarterly income statement and balance sheet
of the Borrower within 60 days of each
quarter-end.

2. Annual audited financial statements of the
Guarantors within 120 days of fiscal year-end.

3. Quarterly financial statements of the
Guarantors within 60 days of each
quarter-end; and

4. Quarterly Certificate of Compliance from the
Guarantors confirming they are not in breach
of Covenants under any of their debts.

CROSS-DEFAULT: The Borrower will be deemed to be in default of the
Agreement if Daisytek, Inc. and/or Daisytek
International Corporation are in default under any of
their Loan Agreements. A copy of the current domestic
revolver must be provided to the Bank, as well as any
material amendments, waivers, extensions or replacement
facilities.

PRINCIPAL
COVENANTS: The Borrower covenants and agrees to the
following with the Bank while this Agreement
is in effect or any advances are outstanding.

1. To pay all sums of many when due under this
Agreement.

2. To file all material tax returns which are
or will be required; to pay or make
provision for payment of all material taxes
which are or will become due and payable;
and to provide adequate reserves for the
payment of any tax.

3. To maintain its corporate existence as a valid
subsisting corporate entity.

4. Other covenants, representations and
warranties that are typical for a
transaction of this nature shall be
incorporated into the Loan Agreement.
5
[Bank One Logo]

Daisytek, Inc.
December 14, 2000
Page: 05

REIMBURSEMENT
OF EXPENSES: The expenses of the Bank, whether
incurred prior to or subsequent to closing, in
investigation, preparation, negotiation,
documentation, syndication, administration and
collection will be for the account of the
Borrower, including expenses of and fees for
solicitors for the Bank (who may or may not be
employees of the Bank) and other advisors and
professionals engaged by the Bank.

ENUREMENT: This agreement shall be binding upon and enure to the
benefit of the Bank, the Borrower, the Guarantor and
their respective successors and permitted assigns.

All other terms and conditions of the Loan Agreement dated December 23, 1997
remain in effect and in full force.

If the above terms and conditions are acceptable to you, as they are to the
Bank, please sign and return the enclosed acceptance copy of this letter as soon
as possible.

Sincerely,

BANK ONE CANADA ACCEPTED BY:

/s/ illegible DAISYTEK CANADA
- -----------------------------
Signature
/s/ Ralph Mitchell
-----------------------------
Signature
:enc.
Date: 12-20-00
6
[Bank One Logo]

Daisytek, Inc.
December 14, 2000
Page: 06

ACKNOWLEDGED BY:

DAISYTEK, INC.

/s/ Ralph Mitchell
------------------------------
Signature

Date: 12-20-00

ACKNOWLEDGED BY:

DAISYTEK INTERNATIONAL
CORPORATION

/s/ Ralph Mitchell
------------------------------
Signature

Date: 12-20-00