<PAGE>

Exhibit 10(i)



                                EMPLOYMENT AGREEMENT


     This Agreement (the "Agreement") is made and entered into as of January 
1, 1997, between LAVVTER INTERNATIONAL, INC., a Delaware corporation, (the 
"Company"), and LUDWIG P. HORN (the "Employee").

     1.   POSITION AND DUTIES.  The Employee shall have the title and 
position of Vice President, Ink Vehicle Research/Development.

     The Employee shall devote his full working time and creative energies to 
the performance of his duties hereunder and will, at all times, devote such 
additional time and efforts as are reasonably sufficient for fulfilling the 
significant responsibilities entrusted to him.

     2.   PERIOD OF CONTRACT EMPLOYMENT.  The term "Period of Contract 
Employment," as used in this Agreement, means the period beginning on January 
1, 1997 and ending on the earlier of (a) twelve (12) months from the 
commencement of employment or (b) termination of the Employee's employment 
with the Company pursuant to Section 6 herein.  This Agreement shall 
automatically be renewed for a like term unless written notice of termination 
is given as provided herein at least thirty (30) days prior to the 
termination of the Period of Contract Employment.

     3.   ANNUAL BASE SALARY.  During the Period of Contract Employment, the 
Company agrees to pay the Employee a base salary (the "Base Salary") in the 
annual amount of One Hundred Ten Thousand Dollars ($110,000.00). The Base 
Salary shall be payable as current salary, subject to all applicable 
withholding and deductions, in installments in accordance with the Company's 
customary payroll practices.  The Base Salary may be increased at the sole 
discretion of the Company.

     4.   BONUS COMPENSATION.  Upon and in consideration of Employee 
executing and agreeing to this Employment Agreement and the covenants and 
obligations hereunder, the Company shall pay the Employee a signing bonus of 
Ten Thousand Dollars ($10,000.00), less withholding and deductions as 
required by law.  The bonus shall be paid at the first regular payroll period 
after the execution of this Agreement.

     5.   BENEFITS.  During the Period of Contract Employment, the Employee 
shall be entitled to participate in or received benefits equivalent to any 
employee benefit plan or other arrangement, including but not limited to any 
medical, dental, retirement, disability, life insurance and sick leave, 
generally made available by the Company to its employees, subject to or on a 
basis consistent with the terms, conditions, eligibility requirements and 
overall administration of such plans or arrangements; PROVIDED, that such 
plans and arrangements are made available at the discretion of the Company 
and noting in this Agreement establishes any right of the Employee to the 
availability of, eligibility for or continuance of any such plan or 
arrangement.

     6.   TERMINATION BY THE COMPANY.  The Company may terminate the 
Employee's employment hereunder with or without due cause at any time during 
the Period of Contract Employment by giving written notice ("Termination 
Notice") to the Employee.  Such termination shall become effective upon the 
date specified in the Termination Notice (the "date of termination").

     (a)   In the event such termination is without due cause and provided that
           the Employee shall have executed and delivered to the Company a
           General Release in a mutually agreeable form and the termination is
           not pursuant to subsections (b), (c) or (d) of this Section, the
           Employee shall be entitled to:

<PAGE>

           (i)   payment of all earned but unpaid Base Salary, and vacation 
                 pay through the date of termination, payable in a lump sum 
                 within five (5) days after the date of termination;

           (ii)  payment of an amount equal to the Base Salary the Employee 
                 would have earned during the unfulfilled remainder of the 
                 Period of Contract Employment (the "Severance Period"), 
                 payable in equal installments over the Severance Period in 
                 accordance with the Company's customary payroll practices 
                 provided the Employee is not in violation of Sections 8 
                 through 12 of this Agreement and provided further that the 
                 Employee shall have executed and delivered to the Company a 
                 General Release in a mutually agreeable form;

           (iii) rights and benefits of the Employee under the benefit plans 
                 and programs of the Company, or which are paid by the 
                 Company, shall be determined in accordance with the 
                 provisions of such plans and programs; and

           (iv)  upon the termination of his employment by the Company under 
                 this subsection (a), the Employee shall have no right to 
                 compensation except as set forth in this subsection of this 
                 Agreement.

     (b)   The employment of the Employee may be terminated by the Company at
           any time for Due Cause (as hereinafter defined).  In the event of
           such termination, the Company shall pay to the Employee his Base
           Salary and any unused vacation accrued to the date of such
           termination and -not theretofore paid to the Employee.  Rights and
           benefits of the Employee under the benefit plans and programs of the
           Company, or which are paid by the Company, shall be determined in
           accordance with the provisions of such plans and programs.  For
           purposes hereof, "Due Cause" shall mean (a) the Employee's gross
           neglect or willful misconduct in the discharge of his duties and
           responsibilities; (b) the Employee's failure to obey appropriate
           written directions from his Manager; (c) any willful or purposeful
           act (or any act or omission taken in bad faith) of the Employee
           having the effect of injuring the Company; (d) the Employee's
           conviction for a felony or for any other crime; (e) the Employee's
           breach of his duty of loyalty to the Company which breach has the
           effect of injuring the Company; (D a final determination by a court
           or governmental agency that the Employee failed to comply with an
           applicable law, ordinance, rule or regulation materially affecting
           the Company for which the Employee, was directly responsible; or (g)
           the breach of any term or provision of this Agreement by the
           Employee.

     (c)   In the event of the death of the Employee, the Company shall pay to
           the estate or other legal representative of the Employee the Base
           Salary and any unused vacation accrued to the date of death and not
           theretofore paid to the Employee.  Rights and benefits of the estate
           or other legal representative of the Employee under the benefit
           plans and programs of the Company, or which are paid by the Company,
           shall be determined in accordance with the provision of said plans
           and programs.  Neither the estate or other legal representative of
           the Employee shall have any further rights or obligations under this
           Agreement.

     (d)   If the Employee shall become incapacitated by reason of physical 
           or mental disability (as defined in the Regulations of the Social 
           Security Administration in effect from time to time) and/or shall 
           fail to perform his normal duties for the Company for a cumulative 
           period of twelve (12) weeks in any period of twelve (12)   
           consecutive months, the employment of the Employee may be 
           terminated by the Company or the Employee upon notice to the 
           other.  The parties agree that in such event, the Employee shall 
           not be considered as a Qualified Individual with a Disability 
           under the Americans With Disabilities Act.  In the event of such 
           termination, the Company shall pay to the Employee his Base Salary 
           and any unused vacation accrued to the date of such termination 
           and not theretofore paid to the Employee.  Rights and benefits of 
           the Employee under the benefit plans and programs of the Company, 
           or which are paid by the Company, shall be determined in 
           accordance with the provisions of such plans and programs.  
           Neither the Employee nor the Company shall have any further rights 
           or obligations under this Agreement, except as provided in 
           Sections 8 through 16 of this Agreement.

<PAGE>

     7.    TERMINATION BY THE EMPLOYEE.  The Employee may terminate his 
employment with the Company by giving a Termination Notice to the Company.  
Such termination will become effective upon the date specified in the 
Termination Notice (the "Effective Date") and provided that the Effective 
Date is at least thirty (30) days after the date of the Termination Notice.  
In the event that the Employee. delivers a Termination Notice to the Company, 
the Employee shall be entitled to payment of all earned but unpaid Base 
Salary, and vacation pay through the Effective Date, payable in a lump sum 
within fifteen (15) days after the Effective Date.

     8.    CONFIDENTIAL INFORMATION AND PROPRIETARY DATA.

     a.    The term "Confidential Information" means information and data not 
generally known outside the Company (unless as a result of a breach by the 
Employee or others of any of the obligations imposed by this Agreement or a 
similar agreement or legal duty) Company's computer programs, methods, 
processes, formulas, inventions, customer lists, procedures, confidential 
management information, strategic plans, management reports, information 
concerning pending transactions, confidential personnel information, 
confidential financial information and other confidential and proprietary 
information belonging to the Company or relating to the Company's customers.

     b.    Except as otherwise herein provided, the Employee agrees that 
during the Period of Contract Employment, and thereafter, the Employee will 
hold in strictest confidence and will not use or disclose to any person, 
firm, entity, partnership or corporation, without the written authorization 
of the President of the Company, or use for his own benefit or the benefit of 
any person, firm, entity, partnership or corporation any of the Company's 
Confidential Information, except as such use or disclosure may be required in 
connection with the Employee's work for the Company.  The Employee 
understands that this agreement applies to computerized as well as written 
information.  It is expressly understood, however, that the obligations of 
this Section shall only apply for as long as and to the extent that the 
aforesaid Confidential Information has not become generally known to or 
available for use by the public other than by the Employee's act or omission 
or a breach by another person of a legal duty or obligation.

     c.    The Employee agrees that he has no proprietary interest in the 
Company's Confidential Information, and that he will not take any 
Confidential Information that is in written, computerized, machine readable, 
model, sample, or other form capable of physical delivery, upon or after 
termination of employment with the Company, without the prior written consent 
of the Company. The Employee agrees that upon termination of employment with 
the Company, he shall deliver promptly and return to the Company all such 
materials, along with all other property, brochures, lists, supplies, 
property, and documents of the Company or relating to its customers and 
prospective customers, in his possession or control.

     9.    NON-SOLICITATION OF COMPANY'S CUSTOMERS AND PROSPECTIVE CUSTOMERS. 
The Employee agrees that during the term of his employment with the Company 
and for a period of two (2) years after the termination of such employment, 
he will not, for himself, or as an employee or otherwise, directly or 
indirectly, solicit or transact business with any customer of the Company for 
services which are provided by the Company and which was a customer of the 
Company which the Employee had contact with during his last twelve (12) 
months of employment or about which the Company developed Confidential 
Information during his last twelve (12) months of employment with the 
Company.  The Employee also agrees that during the Period of Contract 
Employment with the Company and for a period of two (2) years after the 
termination of such employment, he will not for himself or as an employee, 
consultant or otherwise, directly or indirectly, solicit for sales or 
services or transact any business with any prospective customer of the 
Company which was a prospective customer of the Company, and with which he 
had contact with during his last twelve (12) months of employment or about 
which he obtained Confidential Information during the last twelve (12) months 
of his employment with the Company.

     10.   NON-COMPETITION.  The Employee further agrees that during and for 
a period of two (2) years after the Period of Contract Employment with the 
Company, regardless of reason, whether the termination is initiated or 
brought about by the Employee, by the Company, or otherwise, unless such 
termination is caused by the Company ceasing to do business, the Employee 
absolutely and unconditionally agrees that he will not directly or 
indirectly, either for his own account or for the benefit of any person or 
entity, engage in competitive activities with the Company.  'Competitive 

<PAGE>

activities with the Company" shall include but not be limited to, being a 
director, officer, stockholder (except the Employee may purchase shares in a 
publicly traded company not to exceed five percent (5%) of the issued and 
outstanding shares of the publicly traded company), agent, representative, 
consultant, officer or employee of a partnership, sole proprietor, or any 
other entity which is engaged in the manufacture and sale of chemical resins, 
ink vehicles and other products manufactured by the Company.

     11.   NON-SOLICITATION OF EMPLOYEES. During the period of this Agreement 
and for a period of twelve (12) months thereafter, the Employee agrees to 
refrain from directly or indirectly soliciting, inducing, persuading or 
assisting the Company's employees, agents or representatives from leaving 
their employment or relationship with the Company.

     12.   NOTIFICATION OF EMPLOYMENT. For a period of two (2) years after 
termination of this Agreement, or for a period of two (2) years after the end 
of the Employee's association with the Company, whichever is later, Employee 
shall inform any prospective new employer, principal, or associate which is 
or is seeking to become engaged in the same or similar business as the 
Company of the existence of this Agreement and provide same with a copy of 
this Agreement prior to accepting any employment or entering into any 
business relationship.

     13.   DISCLOSURE OF INTELLECTUAL PROPERTIES. Employee will make prompt 
and full disclosure to the Company or to its designated representatives of 
any and all intellectual property acquired during the period of his 
employment by the Company, including technological innovations, discoveries, 
inventions, designs, formulae, know-how, tests, performance data, processes, 
production methods, improvements to all such property, and all recorded 
material defining, describing, or illustrating all such property, whether 
written or not and whether stored in plain or in code form (hereinafter 
collectively referred to as "Intellectual Property"), whether or not 
patentable, copyrightable, or subject to trademark, (1) which he has made, 
conceived, originated, devised, discovered, invented, or developed or which 
he may hereafter make, conceive, originate, devise, discover, invent or 
develop either solely or jointly with others, during any Period of Contract 
Employment with the Company, whether during working hours or not, and which 
relate or have application to business of the general nature now or hereafter 
carried on or contemplated by the Company during any Period of Contract 
Employment and (ii) which he may make, conceive, originate, devise, discover, 
invent or develop during the six (6) month period following termination of 
his employment with the Company and which directly or indirectly relates to 
work initiated, conducted, observed, or contemplated during any Period of 
Contract Employment.  Employee will not at any time, without the prior 
written consent of the Company, disclose any Intellectual Properties, whether 
or not the Intellectual Properties are patentable, copyrightable, or subject 
to trademark protection.

     14.   OWNERSHIP OF INTELLECTUAL PROPERTIES.  Employee agrees that the 
Company shall be the sole owner of all property rights to all Intellectual 
Properties made, conceived, originated, devised, discovered, invented, or 
developed by him, either alone or with others, during his employment.  
Employee agrees that such Intellectual Properties are works made for hire, 
and further hereby assigns all of his rights therein to Company.

     15.   OBLIGATIONS AS TO PATENTS AND OTHER PROTECTIONS.  Employee agrees 
to apply for Letters Patent whenever the Company, in its sole discretion and 
at its expense, directs him to make such application in the United States and 
in any or all foreign countries.  Such Letters Patent shall be applied for in 
the Company's own name or otherwise as the Company may desire.  Employee 
will, without charge to the Company, do what the Company deems necessary to 
vest in the Company the entire interest in all Intellectual Properties and to 
enable the Company to secure Letters Patent, copyright registrations and 
trademark registrations and similar protections in the United States and 
foreign countries.  Employee agrees to and does hereby assign to the Company 
all Intellectual Properties, and all other similar protections which may 
issue whether in the United States or in such foreign countries.

     Employee agrees to execute and deliver without charge to the Company any 
documents reasonably requested by the Company in order to demonstrate or 
protect its ownership of or related to its protection of patent applications 
and similar protections for Intellectual Properties.  Employee further agrees 
to assist the Company or its nominees in the performance of any lawful acts 
that the Company at is discretion deems necessary to secure proper patent, 
copyright, trademark, and other protection for Intellectual Properties and 
improvements thereon, and to vest in the Company the entire interest therein 
in the United States and all foreign countries, without additional 
compensation.  Employee also agrees to assist the Company in connection with 
any demands, reissues, oppositions, litigation, 

<PAGE>

controversy, or other actions involving Intellectual Properties, without 
additional compensation.

     16.   NO COMPANY OBLIGATIONS AS TO PATENTS AND OTHER PROPERTIES.  The 
Company may, at its sole discretion and at its own expense, determine whether 
to secure legal protection for or develop its Intellectual Properties.  The 
Company shall not be obligated hereunder to file or take any other action to 
protect its Intellectual Properties from infringement or copying.  The filing 
or prosecution of any patent application, or the maintenance of any other 
action or protect any Intellectual Properties shall be within the exclusive 
discretion and under the sole control of the Company, and shall be solely at 
the Company's expense.  Any amounts recovered thereby shall belong to the 
Company.

     17.   REMEDIES FOR BREACH.  If the Employee shall breach any agreement 
contacted in Sections 8 through 16 of this Agreement, the Company may bring 
an action directly in any court of competent jurisdiction to enforce the 
Agreement. Such breach may render the Employee liable to the Company for 
damages therefor and entitle the Company to enjoin the Employee from 
breaching his agreements. In addition, the Company shall have the right to 
such event to enjoin the Employee from disclosing any confidential 
information concerning the Company or rendering personal services to any 
competing business, to enjoin any competing business from receiving the 
Employee or using any such confidential information and/or to enjoy any 
competing business from retaining or seeking to retain any other employees of 
the Company.

     18.   SEVERABILITY; ENFORCEABILITY.  In the event that Sections 8, 9, 
10, 11, 12, 13, 14, 15 or 16 of this Agreement or any portion thereof, should 
ever be adjudicated by a court of competent jurisdiction in proceedings to 
which the Company is a proper party to exceed the time or geographic or other 
limitations permitted by applicable law, then such provisions will be
deemed reformed to the maximum time or geographic or other limitations 
permitted by applicable law, as determined by such court in such action, the 
parties hereby acknowledging their desire that in such event such action be 
taken. Without limiting the foregoing, the covenants contained herein will be 
construed as separate covenants covering their respective subject matters, 
including without limitation, with respect to (a) each of the separate 
cities, countries, metropolitan areas, and each other political subdivision 
of the United States in which any of the Company or its successors now 
transact any business or propose to transact business, (b) each business now 
conducted by the Company or its successors, and (c) the Company and its 
successors separately.  In addition to the above, all provisions of this 
Agreement are severable, and the invalidity or unenforceability of any 
provision or provisions of this Agreement or portions or aspects thereof will 
not affect the validity or enforceability of any other provision, or portion 
of this Agreement, which will remain in full force and effect as if executed 
with the unenforceable or invalid provision or portion or aspect thereof 
modified, as set forth above.

     19.   GOVERNING LAW.  This Agreement is being made and executed in and 
is intended to be performed in the Sate of Illinois and shall be governed, 
construed, interpreted and enforced in accordance with the substantive laws 
of the State of Illinois, without regard to the conflict of laws principles 
thereof.

     20.   ENTIRE AGREEMENT.  This Agreement comprises the entire agreement 
between the parties hereto relating to the subject matter hereof and, as of 
the date hereof, supersede, cancel and annual all previous employment 
agreements between the Company (and/or its predecessors) and the Employee, as 
the same may have been amended or modified, and any right of the Employee 
thereunder other than for compensation accrued thereunder as of the date 
hereof, and supersede, cancel and annual all other prior written and oral 
agreements between the Employee and the Company or any predecessor to the 
Company.  The terms of this Agreement are intended by the parties to be final 
expression of their agreement with respect tot he employment of the Employee 
by the Company and may not be contradicted by evidence of any prior or 
contemporaneous agreement.  This Agreement does not, however, supersede or 
negate the terms of the Employee Confidentiality Agreement dated December 21, 
1983, between Employee and the Company, and the parties hereto reconfirm the 
existence and validity of such Employee Confidentiality Agreement.

     21.   DISPUTES.   Other than an action brought under Section 17 related 
to Sections 8 through 16 of this Agreement, which may be brought directly in 
any court of competent jurisdiction, any dispute or controversy arising 

<PAGE>

under, out of, in connection with or in relation to this Agreement, shall be 
finally determined and settled by arbitration.  Arbitration shall be 
initiated by one party making written demand upon the other party and 
simultaneously filing the demand together with required fees in the office of 
the American Arbitration Association in Chicago, Illinois.  The arbitration 
proceeding shall be conducted in Chicago, Illinois by a single arbitrator in 
accordance with the Expedited Procedures of the Employment Dispute Resolution 
Rules of the American Arbitration Association, except as otherwise proved 
herein.  Except as required by the arbitrator, or applicable law, the parties 
shall have no obligation to comply with discovery requests made in the 
arbitration proceeding.  The arbitration award shall be a final and binding 
determination of the dispute and shall be fully enforceable as an arbitration 
award In any court having jurisdiction and venue over such parties.  The 
prevailing party (as determined by the arbitrator) shall be awarded by the 
arbitrator such party's attorney's fees and expenses in connection with such 
proceedings, in addition to any other relief that may be granted.  The 
non-prevailing party (as determined by the arbitrator) shall pay the 
arbitrators fees and expenses.

     22.   NOTICES.  Any notice, request, claim, demand, document and other 
communication hereunder to any party will be effective upon receipt (or 
refusal of receipt) and will be in writing and delivered personally or sent 
by telecopy or certified or registered mail, postage prepaid, as follows: If 
to the Company, addressed to the attention of its President at Lawter 
International, Inc.; 990 Skokie Boulevard; Northbrook, Illinois 60062; and if 
to the Employee, at the address set forth below under his signature; or at 
any other address as any party has specified by notice in writing to the 
other party.

     23.   AMENDMENTS: WAIVERS.   This Agreement may not be modified, 
amended, or terminated except by an instrument in writing, approved by the 
Board and signed by the Employee and the President.  By an instrument in 
writing similarly executed, the Employee or the Company may waive compliance 
BY the other party with any provision of this Agreement that such other party 
was or is obligated to comply with or perform; provided, that such waiver 
shall not operate as a waiver of, or estoppel with respect to, any other or 
subsequent failure.  No failure to exercise and no delay in exercising any 
right, remedy or power hereunder shall preclude any other or further exercise 
of any other right, remedy or power provided herein or by law or in equity.

     24.   SUCCESSORS AND ASSIGNS.   By reason of the special and unique 
nature of the services of the Employee hereunder, it is agreed that neither 
party hereto may assign any interests, rights or duties which it or he may 
have in this Agreement without the prior written consent of the other party, 
except that upon any merger, liquidation, or sale of all or substantially all 
of the assets of the Company to another corporation, this Agreement shall 
inure to the benefit of and be binding upon the Employee and the purchasing, 
surviving, or resulting company or corporation in the same manner and to the 
same extent as though such company or corporation were the Company.

     25.   HEADINGS.  The headings and captions in this Agreement are for 
convenience only and in no way define or describe the scope or content of any 
provision of this Agreement.

     26.   COUNTERPARTS.   This Agreement may be executed in two or more 
counterparts, each of which shall be an original and all of which together 
shall constitute one and the same instrument.

     27.   EFFECT OF TERMINATION.  Sections 8, 9, 10, 11, 12, 13, 14, 15, 16 
and 17 shall in all events survive any termination of the Employee's 
employment and/or the expiration of the Period of Contract Employment.

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the 
date and year first above written and execution of this Agreement supersedes 
all prior written and/or oral agreements.

LAWTER INTERNATIONAL, INC.                   LUDWIG P. HORN



By: /s/ John P. Jilek                        /s/ Ludwig P. Horn
    ------------------------------------     ---------------------------------

<PAGE>

                                              Address:  2619 Colbert Rd.

                                              Waukegan, IL  60085