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                                                                    Exhibit 10.7

                             EMPLOYMENT AGREEMENT

         EMPLOYMENT AGREEMENT, dated as of July 27, 1998, between Danka Office
Imaging (the "Company"), and David P. Berg ("Executive").

                              W I T N E S S E T H:

         WHEREAS, the Company wishes to provide for the employment of Executive
as Senior Vice President, General Counsel and Secretary of the Company on the
terms and conditions herein set forth; and

         WHEREAS, Executive wishes to serve in such capacity on the term and
conditions herein set forth.

         NOW, THEREFORE, in consideration of the premises and of the mutual
covenants and agreements contained herein, the parties hereto agree as follows:

         1. Employment Powers, Duties and Acceptance.

            1.1 The Company hereby employs Executive, for the Term (as
                hereinafter defined), to render services to the Company as
                Senior Vice President, General Counsel and Secretary of the
                Company.

            1.2 Executive hereby accepts the employment hereunder and agrees to
                use his best efforts to carry out the duties and
                responsibilities of Senior Vice President, General Counsel and
                Secretary of the Company and such additional assignments and
                duties (which may include assignments and duties on behalf of
                the Company's affiliates) as may be given to Executive by the
                Chief Executive of the Company or his designee. Executive shall
                report directly to the Chief Executive of the Company.
                Executive agrees to discharge his obligations hereunder and
                perform his duties in accordance with the general policies
                established by the Board of Directors of the Company.

            1.3 Executive shall be a full-time employee of the Company, and
                subject to customary paid holidays and vacations, Executive
                agrees to devote his full working time to the business of the
                Company.

            1.4 The principal place of employment of Executive hereunder shall
                be at the offices of the Company in the City of St. Petersburg,
                Florida. Executive shall travel as may be required to discharge
                his obligations and perform his duties hereunder.

            1.5 Executive shall be entitled to 4 weeks of vacation with pay
                during each calendar year of the Term.

         2. Term of Employment. The term of Executive's employment under this
Agreement (the "Term") shall commence on the date hereof and shall end, unless
such employment is sooner terminated pursuant to Section 5 hereof, on July 27,
1999 (the "Termination Date"). Notwithstanding the foregoing, this Agreement
shall automatically renew for one-year periods unless earlier terminated as
provided herein.

         3. Compensation.

            3.1 During the Term, the Company shall pay Executive, as
                compensation for services to be rendered pursuant to this
                Agreement, a salary, payable in accordance with the Company's
                standard payroll practices, at the rate of $250,000.00 per
                annum (the "Base

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                Compensation"). Executive shall be eligible for annual
                increases at the discretion of the Chief Executive.

            3.2 Executive shall have a target bonus of thirty-five (35%) of
                his Base Compensation based upon achievement of established
                corporate division and individual objectives as approved by the
                Chief Executive. Executive will also be eligible for an
                additional "stretch" bonus of an additional thirty-five percent
                (35%) of his Base Compensation based upon established "stretch"
                objectives approved by the Chief Executive, which will be upon
                the Company obtaining 103% of its annual profit plan as
                approved by the Board of Directors.

            3.3 During the Company's Fiscal Year 1999 of this Agreement Company
                shall guarantee that Executive receive a minimum bonus of not
                less than $87,500.00 payable on or before May 1, 1999.

                Company shall grant Executive 40,000 ordinary share stock
                options as soon as practicable. Executive understands and
                agrees that any granting of stock options is subject to Board
                of Directors approval.

            3.4 Executive shall receive all of the fringe benefits and
                perquisites of office made available to the officers of the
                Company, including the following:

                o Airline Club expenses      - up to $1,000.00 annually

            3.5 Subject to Executive's satisfying the eligibility requirements
                thereof, Executive shall be entitled to participate in and be
                covered by any Executive Deferred Compensation Plan,
                Supplemental Executive Retirement Plan, pension, life insurance,
                long term disability insurance, health insurance,
                hospitalization or other employee benefit plan established and
                maintained by the Company on the same basis as generally made
                available to executives of the Company without limitation or
                restriction by reason of this Agreement. Nothing herein shall
                be deemed to require the Company to establish or maintain any
                employee benefit plan whatsoever, and Company shall have the
                right, in its sole and absolute discretion, to alter, amend,
                modify, discontinue or terminate at any time any and all
                employee benefit plans maintained by the Company.

         4. Expenses. In addition to the compensation provided to be paid under
Section 3 hereof, the Company shall reimburse Executive for all reasonable
out-of pocket expenses paid or incurred by Executive in the performance of his
duties hereunder upon submission of signed itemized lists thereof on the forms
used, and in accordance with the procedures established from time to time, by
the Company for that purpose.

         5. Termination. This Agreement may be terminated prior to the
Termination Date in accordance with the following:

            5.1 If Executive shall die during the Term, this Agreement shall
                terminate, except that Executive's legal representatives or
                designated beneficiaries shall be entitled to receive the
                compensation provided for herein to the last day of the month
                in which his death occurs.

            5.2 The Company shall have the right (without any liability to
                Executive hereunder other than the payment of sum due through
                the date of termination) to terminate the employment of
                Executive, to relieve Executive of any and all functions as
                Senior Vice President, General Counsel and Secretary of the
                Company, and to terminate his right to the compensation
                provided for herein for cause. As used in this Section 5.2, the
                term "for cause" shall mean and be limited to to following
                events:

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                5.2.1 Executive's material breach of any term or condition of
                      this Agreement, unless Executive cures such breach within
                      ten days after the Company gives Executive notice of the
                      breach; or

                5.2.2 Executive's commission of any crime that (i) constitutes
                      a felony in the jurisdiction involved or (ii) involves
                      loss or damage to or destruction of property of the
                      Company or (iii) results in the incarceration of
                      Executive following his conviction for such crime; or

                5.2.3 Executive's willful and material violation of any lawful
                      directions of the Chief Executive or Board of Directors of
                      the Company; or

                5.2.4 Executive's failure or refusal to perform his duties in
                      accordance with Section 1 hereof; provided, however, that
                      no discharge "for cause" under this Section 5.2.4 shall
                      be deemed effective unless Executive shall have first
                      been given notice by the Company advising Executive of
                      the specific acts or omissions alleged to constitute a
                      failure to perform his duties, and such failure continues
                      after Executive shall have had a reasonable opportunity
                      (which shall be defined as a period of time consisting of
                      at least three days from the date Executive receives said
                      notice from the Company) to correct the acts or omissions
                      so complained of.

            5.3 The Company shall have the right to terminate the employment of
                Executive, to relieve Executive of any or all functions as
                Senior Vice President, General Counsel and Secretary and to
                terminate his right to Base Compensation at any time prior to
                the Termination Date upon notice to Executive. If the Company
                shall terminate the employment of Executive for any reason not
                specified in Section 5.1, or 5.2 hereof, the Company shall pay
                Executive his Base Compensation and continue and/or pay
                Executive's benefits for the next 12 succeeding months
                following termination.

                Executive agrees that in order to receive liquidated damages
                described herein, Executive at the time of termination, agrees
                to execute the General Release and Waiver in, a form similar to
                Exhibit A. Notwithstanding the foregoing, Executive shall not
                be entitled to any liquidated damages hereunder if termination
                occurs prior to the Termination Date and Company or any of
                their respective affiliates agrees to employ Executive in an
                executive capacity with powers and duties similar to those
                assigned to Executive hereunder for a period equal to or
                greater than the balance of the Term and to provide Executive
                during such period with compensation and benefits equivalent to
                those which he would have received hereunder had termination
                not occurred.

         6. Non-Competition and Confidentiality

            6.1 As used in this Section 6, the term "Restricted Area" shall
                mean: (i) during the Term, the entire world, and (ii) during
                the twelve months following the termination of Executive's
                employment hereunder for any reason specified in Section 5.3
                hereof, the area within 50 miles of the location of any
                business activity conducted by the Company, any constituent
                partner of the Company or any of their respective parents,
                subsidiaries or affiliates. During the Term and for a period of
                twelve months following the termination of Executive's
                employment hereunder for any reason specified in Section 5.3
                hereof, Executive shall not, in the Restricted Area, directly
                or indirectly, enter the employ of, or render any services to,
                any person, firm or corporation engaged in any business
                competitive with the businesses engaged in by the Company, any
                constituent partners of the Company or any of their respective
                parents, subsidiaries or affiliates; he shall not engage in
                such business on his own account in the Restricted Area; and he
                shall not

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                become interested in such business, directly or indirectly, as
                an individual, partner, shareholder, director, officer,
                principal, agent, employee, trustee, consultant, or any other
                relationship or capacity; provided, however, that nothing
                contained in this Section 6 shall be deemed to prohibit
                Executive from acquiring, solely as an investment, a less than
                one percent interest in the equity of any publicly traded
                corporation or limited partnership.

            6.2 Executive shall not, at any time hereafter, disclose to any
                person, firm or corporation any confidential information
                regarding the customers, suppliers, market arrangements or
                methods of operations of the Company, any constituent partner
                of the Company or any of their respective parents, subsidiaries
                or affiliates or any other information of the Company, any
                constituent partner of the Company or any of their respective
                parents, subsidiaries, affiliates. Without limiting the
                generality of the foregoing, the parties hereto acknowledge and
                agree that all information not otherwise generally known to the
                public relating to each of (i) this Agreement, (ii) the Company,
                any constituent partner of the Company or any of their
                respective parents, subsidiaries or affiliates is confidential
                and proprietary and is not to be disclosed to any persons or
                entities, except to the extent necessary to conduce the
                business of the Company, or to comply with law or the valid
                order of a governmental agency or court of competent
                jurisdiction.

            6.3 Any invention, improvement, design, development or discovery
                conceived, developed, invented or made by Executive, alone or
                with others, during his employment hereunder and applicable to
                the business of the Company, its parents, subsidiaries or
                affiliates shall become the sole and exclusive property of the
                Company. Executive shall (i) disclose the same completely and
                promptly to the Company, (ii) execute all documents requested
                by the Company in order to vest in the Company the entire right,
                title and interest, in and to the same, (iii) execute all
                documents required by the Company for the filing, and
                prosecuting of such applications for patents, copyrights and/or
                trademarks, which the Company, in its sole discretion, may
                desire to prosecute, and (iv) provide to the Company all
                assistance it may reasonably require including, without
                limitation, the giving of testimony in any suit, action or
                proceeding, in order to obtain, maintain and protect the
                Company's rights therein and thereto.

            6.4 Executive, except within the course of the performance of his
                duties hereunder, shall not at any time while he is in the
                employ of the Company, any constituent partner of the Company
                or any of their respective parents, subsidiaries, or affiliates
                and for 12 months thereafter (i) employ any individual who is
                then employed by the Company, any constituent partner of the
                Company or any of their respective parents, subsidiaries,
                affiliates, or (ii) in any way cause, influence, or participate
                in the employment of any individual which would be contrary to
                the Company's best interests, as determined by the Company in
                its sole discretion.

            6.5 Executive's services are unique and any breach or threatened
                breach by Executive of any provision of this Section 6 shall
                cause the Company irreparable harm which cannot be remedied
                solely by damages. In the event of a breach or threatened
                breach by Executive of any of the provisions of this Section 6,
                the Company shall be entitled to injunctive relief restraining
                Executive and any business, firm, partnership, individual,
                corporation or entity participating in such breach or
                threatened breach. Nothing herein shall be construed as
                prohibiting the Company from pursuing any other remedies
                available at law or in equity for such breach or threatened
                breach, including the recovery of damages and the immediate
                termination of the employment of Executive hereunder.

            6.6 If any of the provisions of or covenants contained in this
                Section 6 are hereafter construed to be invalid or
                unenforceable in a particular jurisdiction, the same shall not
                affect the remainder of the provisions or the enforceability
                thereof in that jurisdiction,

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                which shall be given full effect, without regard to the
                invalidity or unenforceability thereof in a particular
                jurisdiction because of the duration and/or scope of such
                provision or covenant in that jurisdiction and, in its reduced
                form, said provision or covenant shall be enforceable. In all
                other jurisdictions this Section 6 shall at all times remain in
                full force and effect.

         7. Representations and Warranties. Executive hereby represents and
warrants to the Company as follows:

            7.1 Executive is an individual residing at the address set forth in
                Section 8.2 hereof.

            7.2 Executive has full power and authority to enter into this
                Agreement and the execution and delivery of this Agreement by
                Executive will not conflict with or result in the breach of or
                a default under any agreement or other instrument to which
                Executive is a party.

            7.3 Executive is not a party to any covenant not-to-compete,
                non-disclosure agreement or other similar obligation which is
                inconsistent with, or which could impair the performance of,
                Executive's duties hereunder.

         8. Notices. All notices, requests, consents and other communications,
required or permitted to be given hereunder, shall be in writing and shall be
deemed to have been duly given if delivered personally or sent by prepaid
telegram, or mailed first-class, postage prepaid, by registered or certified
mail (notices sent by telegram or mailed shall be deemed to have been given on
the date sent), as follows (or to such other address as either party shall
designate by notice in writing to the other in accordance herewith):

                8.1   If to the Company:

                      Danka Office Imaging Company
                      11201 Danka Circle North
                      St. Petersburg, FL 33716

                      Attention: Chief Executive

                8.2   If to Executive:

                      756 18th Avenue N.E.
                      St. Petersburg, FL 33704

                      Attention: David P. Berg

         9. General.

            9.1 The section headings contained herein are for reference
                purposes only and shall not in any way affect the meaning or
                interpretation of this Agreement.

            9.2 This Agreement sets forth the entire agreement and
                understanding of the parties relating to the subject matter
                hereof, and supersedes all prior agreements, arrangements and
                understandings written or oral, relating to the subject matter
                hereof. No representation, promise or inducement has been made
                by either party that is not embodied in this Agreement, and
                neither party shall be bound by or liable for any alleged
                representation, promise or inducement not so set forth.

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            9.3 This Agreement, and Executive's rights and obligations
                hereunder, may not be assigned or otherwise transferred by
                Executive. The Company may assign its rights hereunder to any
                parent, subsidiary, or affiliate and in connection with any
                sale, transfer or other disposition of all or substantially all
                of its businesses or assets. Upon such assignment, the assignee
                thereunder shall be required to assume the obligations of
                Executive hereunder and, upon such assumption, the Company
                shall be relieved of its obligations hereunder.

            9.4 This Agreement constitutes the entire agreement between the
                parties with respect to the transactions contemplated hereby
                and may be amended, modified, superseded, canceled, renewed or
                extended and the terms or covenants hereof may be waived, only
                by a written instrument executed by both of the parties hereto,
                or in the case of a waiver, by the party waiving compliance.
                The failure of either party at any time or times to require
                performance of any provision hereof shall in no manner affect
                the right at a later time to enforce the same. No waiver by
                either party of the breach of any term or covenant contained in
                this Agreement, whether by conduct of otherwise, in any one or
                more instances, shall be deemed to be, or construed as, a
                further or continuing waiver of any such breach, or a waiver of
                the breach of any other term or covenant contained in this
                Agreement.

            9.5 This Agreement shall be governed by, and construed in accordance
                with, the laws of the State of Florida applicable to agreements
                entered into and wholly performed therein.

            9.6 Any controversy or claim arising out of or relating to this
                Employment Agreement, other than a claim for injunctive relief,
                shall be scaled by arbitration in accordance with the
                Commercial Arbitration Rules of the American Arbitration
                Association (the "Rules") in effect at the time demand for
                arbitration is made by any party. One arbitrator shall be named
                by the Company, a second by the Executive and the third
                arbitrator shall be named by the two arbitrators so chosen. In
                the event that the third arbitrator is not agreed upon, he or
                she shall be named by the American Arbitration Association.
                Arbitration shall occur in St. Petersburg, Florida. The award
                made by all or a majority of the panel of arbitrators shall be
                final and binding, and judgment may be entered in any court of
                law having competent jurisdiction. The prevailing party shall
                be entitled to an award of reasonable attorney's fees, costs and
                expenses incurred in connection with the arbitration and any
                judicial proceedings related thereto.

            9.7 This Agreement may be executed in any number of counterpart
                copies, each of which shall be deemed an original, but which
                together shall constitute a single instrument.

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first above written.

                                   DANKA OFFICE IMAGING COMPANY

                                   By: /s/ Daniel M. Doyle
                                       ------------------------
                                       Daniel M. Doyle
                                       Title:

                                   ----------------------------

                                   Executive

                                   By: /s/ David P. Berg
                                       ------------------------

Witness:

/s/ Cathy L. Black
------------------

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                                                                      EXHIBIT A

                               RELEASE OF CLAIMS

DEFINITIONS: I, David F. Berg, ("Employee"), intend all words used in this
Release to have their plain meaning in ordinary English. Technical legal words
am not needed to describe what I mean. Specific terms I use in this Release
have the following meanings:

         A. I, Me, and My include both me and anyone who has or obtains any
            legal rights or claims through me.

         B. Employer, as used herein, shall at all times mean Danka Corporation
            or any parent company, subsidiaries, affiliated companies or
            entities and their employees, officers, directors, successors and
            assigns, its attorneys, consultants and agents, whether in their
            individual or official capacities.

         C. My Claims means all of the rights I have to any relief of any kind
            from Employer, whether or not I now know about those rights,
            arising out of or in any way related to my employment with
            Employer, any my termination of employment, or any employee benefit
            plan, including, but not limited to, common law, or equitable
            claims, claims for violation or breach of any employment agreement
            or understanding; fraud or misrepresentation; and any statutory
            claims including alleged violations of the, the federal Age
            Discrimination in Employment Act, the Americans with Disabilities
            Act, or any other federal, state, or local civil rights laws or
            ordinances, defamation; intentional or negligent infliction of
            emotional distress; breach of the covenant of good faith and fair
            dealing; promissory estoppel; negligence, wrongful termination of
            employment any any other claims.

AGREEMENT TO RELEASE MY CLAIMS. I am receiving a substantial amount of money,
among other things, from Employer as consideration for my Release of claims. I
agree to give up all My Claims against the Employer as defined above. I will
not bring any lawsuits, file any charges, complaints, or notices, or make any
other demands against the Employer or any of its employees or agents based on
any alleged claims. The money I am receiving is a full and fair payment for the
release of all My Claims.

ADDITIONAL AGREEMENTS AND UNDERSTANDINGS. Even though the Employer is paying me
to release My Claims, the Employer expressly denies that it is responsible or
legally obligated for My Claims or that is has engaged in any wrongdoing.

         I understand that I may have twenty-one (21) calendar days from the
day that I receive this Release, not counting the day upon which I receive it,
to consider whether I wish to sign this Release. I further understand that the
Employer recommends that I consult with an attorney before executing this
Release. I agree that if I sign this Release before the end of the twenty-one
(21) day period, it is because I have decided that I have already had
sufficient time to decide whether to sign the Release.

         I understand that I may rescind (that is, cancel) this Release within
seven (7) calendar days of signing it to reinstate federal civil rights claims
(if any). To be effective, my rescission must be in writing and delivered to
the Employer, Attention General Counsel, Danka, 11201 Danka Circle North, St.
Petersburg, Florida, 33716, either by hand or by mail within the required
period. If sent by mail, the rescission must be:

         1. Postmarked within the relevant period;

         2. Properly addressed to the General Counsel; and

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         3. Sent by certified mail, return receipt requested.

            I have read this Release carefully and understand all its terms. I
            have had the opportunity to review this Release with my own
            attorney. In agreeing to sign this Release, I have not relied on
            any statements or explanations made by the Employer or its agents
            other than those set forth in the Release and Employment Agreement.

         I understand and agree that this Release and Employment Agreement to
which it is attached contain all the agreements between the Employer and me. We
have no other written or oral agreements.

Dated: _____________________________

____________________________________

Witness: ___________________________