Document:

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                                                                   Exhibit 10.42

                              EMPLOYMENT AGREEMENT

     This Employment Agreement (the "Employment Agreement") is made and entered
into as of the 28 day of March, 2003, by and among Danka Office Imaging Company
("Danka Office Imaging"), Danka Business Systems PLC ("Danka Business Systems"),
Danka Holding Company ("Danka Holding"), and Michael D. Popielec, an individual
("Executive"). Danka Office Imaging, Danka Business Systems, and Danka Holding
are collectively referred to herein as the "Company."

                                   WITNESSETH:

     WHEREAS, the Company wishes to assure itself of the services of Executive,
on the terms and conditions set forth herein; and Executive desires to be so
employed by the Company on said terms.

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

1. EMPLOYMENT. The Company hereby employs Executive, and Executive hereby
accepts employment with the Company, all upon the terms and subject to the
conditions set forth in this Employment Agreement.

2. CAPACITY AND DUTIES. Executive shall be employed in the capacity of President
and Chief Operating Officer, Danka International Group reporting to the Chief
Executive Officer of the ultimate PLC Holding Company and all of its
subsidiaries. Executive shall direct and oversee the management and operations
of the Latin America, Canada and Australia business units.

3. EMPLOYMENT TERM.

     (a) Term. Employment of Executive by the Company pursuant to this
     Employment Agreement shall begin on April 8, 2003 (the "Commencement
     Date"), and continue until terminated by either party as provided herein.
     The period during which Executive is employed by the Company pursuant to
     this Employment Agreement is referred to herein as the "Term" of this
     Employment Agreement.

4. PLACE OF EMPLOYMENT. Executive's principal place of work shall be located in
the St. Petersburg, Florida metropolitan area.

5. COMPENSATION.

     (a) Salary. Beginning on the Commencement Date and continuing during the
     Term, the Company shall pay Executive a base salary at the rate of
     $375,000.00 per annum (the "Annual Base Salary"), payable in a manner
     consistent with the Company's payroll

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     procedures for U.S. salaried employees. The Human Resources Committee of
     the Board (the "H.R. Committee") shall review Executive's Annual Base
     Salary at least annually and may increase, but not decrease, the Annual
     Base Salary.

     (b) Performance Bonuses. In addition to the Annual Base Salary, Executive
     shall be entitled to receive an annual bonus under the performance bonus
     plan (the "Performance Bonus Plan") approved by the H.R. Committee at the
     beginning of each of the Company's Fiscal Years, starting with the Fiscal
     Year 2004, which begins April 1, 2003. Executive's bonus plan payments
     shall begin with the Company's first fiscal quarter. Upon the Company's
     achievement of one hundred percent (100%) of the budgeted target levels of
     the Performance Bonus Plan, the Company shall pay Executive a bonus of 50%
     of Executive's Base Salary. If the Company meets certain stretch objectives
     defined and set forth in the Performance Bonus Plan (as determined by the
     H.R. Committee), the Company will pay Executive additional bonuses in
     accordance with such Plan up to 110% of Executive's Base Salary. The
     Company shall pay any bonus earned by Executive in a lump sum cash payment,
     less applicable withholdings, as promptly after the end of the relevant
     accounting period as the H.R. Committee is able to certify the Company's
     achievement of the relevant financial goals, subject to any deferral
     election made by Executive under the terms of the Company's deferred
     compensation plan for U.S. executives.

     (c) Initial Bonuses. Executive shall receive a bonus of $200,000.00 within
     ten business (10) days of the Commencement Date, grossed up for tax
     purposes. Such bonus shall cover any and all relocation expenses, temporary
     living, and other related costs, except that Executive may receive
     reimbursement for temporary living expenses actually incurred not to exceed
     $3,000 per month for the first 3 months of employment. If Executive
     voluntarily resigns, or is terminated for cause, as defined herein,
     Executive shall reimburse Company an amount equal to the pro rata portion
     of the Bonus actually paid hereunder (using a two year period from the date
     of payment). (e.g. If Executive resigns 12 months from the date of
     execution of this Agreement, Executive shall pay Company 50% of bonuses
     received under this Section). The pro rata reimbursement hereunder shall be
     calculated using the date of payment of such bonuses as the commencement of
     the pro rata period.

6. ADDITIONAL COMPENSATION AND BENEFITS. During the Term, the Company shall pay
to or provide Executive with the following additional compensation and benefits:

     (a) Stock Options.

          (i) Executive shall be eligible to participate in the Company's stock
          option plans available to the Company's employees in accordance with
          the terms and conditions of such plans.

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          (ii) Executive shall receive from the Company a registered stock
          option grant as soon as practicable in the Company's next "open
          period" in the amount of 400,000 American Depository Shares ("ADSs")
          representing ordinary shares of Danka Business Systems PLC. Vesting of
          such options will be in accordance with the Company Stock Option Plan
          (1/3 per year for 3 years). The Company shall file a registration
          statement on Form S-8 with the Securities Exchange Commission such
          that all of the ADSs subject to the option grant shall be registered
          shares upon the exercise of the option.

          (iii) If Executive seeks to acquire by exercise of any stock option
          all or part of the shares that have become exercisable and the Company
          declines to allow him to acquire such shares, whether because the
          Company has not obtained shareholder approval for the option or
          otherwise, the Company shall pay Executive, within ten (10) days after
          his attempt to acquire such shares, (1) an amount equal to the
          difference between the number of shares Executive sought to acquire
          multiplied by the closing price for a share of the Company's common
          stock as of the date Executive sought to acquire such shares, on the
          one hand, and the option exercise price per share multiplied by the
          number of shares Executive sought to acquire, on the other hand, and
          (2) an additional payment sufficient to pay any federal, state, and
          local income tax and social security, or other employment tax on the
          amount paid under Section 6(a)(iii)(1), as well as any additional
          federal, state and local income tax and social security or other
          employment tax on any such gross-up payment, determined by using the
          top marginal rates of federal, state, and local income taxes and
          social security, or other employment taxes applicable to the
          Executive's taxable income in effect during the year of payment.

     (b) Executive Deferred Compensation Plan. Executive shall be eligible to
     participate in the Company's Executive deferred compensation plan in
     accordance with its terms and conditions.

     (c) Insurance. The Company shall provide Executive and his dependents with
     reasonable and adequate health, dental, short term disability, long term
     disability, and life insurance. Such insurance coverage shall be no less
     favorable than that from time to time made available to other senior
     executives of the Company located in the United States.

     (d) 401K Plan. Executive shall be entitled to participate in the Company's
     401K plan in accordance with its terms and conditions.

     (e) Vacation. Executive shall be entitled to at least four (4) weeks of
     paid vacation during each year during the Term, prorated for partial years.
     Such vacation shall be subject to the Company's policies and procedures for
     senior executives.

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     (f) Business Expenses. The Company shall promptly reimburse Executive for
     all reasonable, ordinary and necessary expenses he incurs in connection
     with his employment by the Company (including, but not limited to,
     automobile and other business travel, and customer entertainment expenses)
     on the same basis as other senior executives of the Company.

     (g) Indemnification. The Company will, to the fullest extent permitted by
     law, indemnify and hold Executive harmless from any and all liability
     (including, without limitation, judgments, fines, settlement payments,
     expenses, costs, and attorneys' fees) arising from his service as an
     employee, officer, or director of the Company. To the fullest extent
     permitted by law, if there is a potential or actual conflict of interest
     between the Company and Executive, the Company will advance legal fees and
     expenses to Executive for counsel selected by Executive in connection with
     any litigation, investigation, action, suit, or other proceeding related to
     Executive's employment with the Company or his performing services for the
     Company, whether as a director, officer, or employee of the Company. During
     the Term, the Company shall maintain adequate and reasonable Directors and
     Officers liability insurance naming Executive as an insured.

     (h) Other Employee Benefits. Executive shall also be entitled to any other
     fringe benefits, bonuses, and similar programs, including regular holidays,
     and shall be eligible to participate in all plans or arrangements
     maintained by the Company for the benefit of its employees, officers, or
     directors, including without limitation all compensation, welfare, bonus,
     incentive, retirement, thrift, pension, profit sharing, deferred
     compensation, employee loan, and insurance plans or arrangements. Executive
     shall at all times receive benefits no less favorable than those received
     by other senior executives.

7. TERMINATION BY THE COMPANY OR BY EXECUTIVE. This Employment Agreement may be
terminated as follows:

     (a) By the Company.

          (i) For Cause. The Company may terminate this Employment Agreement and
          Executive's employment with the Company at any time for Cause (as
          defined in Section 9) ("Cause Termination"); provided, however, that
          the Company shall give Executive written notice of Cause Termination
          specifying the reason for the termination, and Executive shall have
          the opportunity to address the Board before he is terminated for
          Cause.

          (ii) By Company Notice. The Company may terminate this Employment
          Agreement and Executive's employment with the Company upon sixty (60)
          days written notice for any reason not included in the definition of
          Cause ("Company Notice Termination").

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     (b) Death or Disability. This Employment Agreement and Executive's
     employment with the Company will terminate immediately upon Executive's
     death or Disability (as defined in Section 9) ("Death or Disability
     Termination"). If either party terminates Executive's employment due to
     Disability, the terminating party shall give the other party written notice
     to that effect.

     (c) By Executive.

          (i) For Good Reason. Executive may terminate this Employment Agreement
          and Executive's employment by the Company at any time for Good Reason
          (as defined in Section 9) ("Good Reason Termination"). In the event
          the Company disputes Executive's Good Reason Termination, the Company
          shall notify Executive in writing of such dispute within ten (10) days
          of receiving notice of such termination for Good Reason. If the
          Company does not so notify Executive within the ten (10) day period,
          the Company shall be deemed to have accepted Executive's determination
          of Good Reason.

          (ii) By Executive Notice. Executive may terminate this Employment
          Agreement and Executive's employment with the Company for any reason
          not included in the definition of Good Reason by giving the Company
          sixty (60) days written notice of such termination ("Executive Notice
          Termination").

8. PAYMENTS UPON TERMINATION.

     (a) Company Notice Termination and Good Reason Termination. If the Company
     terminates Executive's employment for any reason other than for Cause (as
     defined in Section 9) or if Executive terminates his employment for Good
     Reason (as defined in Section 9), the Company shall pay to Executive
     (subject to Executive's execution of a reasonable, mutually agreeable
     Separation Agreement and Release of Claims and withholding of applicable
     taxes) a severance of two (2) times Executive's then current base salary
     plus, if such termination is within 12 months of the Commencement Date, two
     (2) times Executive's Target Bonus. If such termination occurs after 12
     months of employment, Executive shall be paid, in addition to the above
     base salary severance, two (2) times the actual target bonus earned over
     twelve (12) months immediately preceding such termination. Such severance
     shall be paid in equal installments over twenty-four (24) months on the
     Company's standard bi-weekly Company payroll dates, beginning one (1) month
     following the date of termination. The Company shall continue to provide
     Executive and his family, for a period of twenty-four (24) months after the
     date of termination, with the same insurance benefits coverage being
     provided to Executive under Section 6(c) on the date the notice of
     termination is given. Executive shall also be entitled to a pro-rata
     portion of the performance bonus under Section 5(b) to which he would have
     been entitled in the year of termination if his employment had not
     terminated.

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     Executive shall also be entitled to any of his Annual Base Salary accrued
     through the date of termination, payments for any accrued but unused
     vacation for the year of termination any bonuses earned but not previously
     paid with respect to the accounting period of the Company most recently
     ended, and any vested benefits payable to Executive under the terms of any
     deferred compensation plan, 401K plan, stock option plan, or other benefit
     plans maintained by the Company in which Executive participated.
     Additionally, notwithstanding the terms of the Company's stock option
     plan(s), all stock options received by Executive shall become fully vested
     and immediately exercisable upon a Company Notice Termination or Good
     Reason Termination. Such stock options shall remain exercisable for a
     period of twenty-four (24) months. All of Executive's other unvested
     benefits, including, without limitation, any Company 401K contributions or
     profit sharing contributions, shall immediately vest upon a Company Notice
     Termination or Good Reason Termination.

     (b) Cause Termination and Executive Notice Termination. If Executive's
     employment is terminated by the Company for Cause (as defined in Section 9)
     or if Executive terminates his employment for any reason other than Good
     Reason (as defined in Section 9), Executive shall be entitled to receive
     any of his Annual Base Salary accrued through the date of termination, any
     accrued but unpaid vacation pay for the year of termination, any bonuses
     earned but not previously paid with respect to the accounting period of the
     Company most recently ended, and any vested benefits payable to Executive
     under the terms of any deferred compensation plan, 401K plan, stock option
     plan, or other plans maintained by the Company in which Executive
     participates. Notwithstanding the terms of the Company's stock option
     plan(s), Executive shall not forfeit any vested options upon a Cause
     Termination or Executive Notice Termination, and all such vested options
     shall remain exercisable for a period of at least twenty-four (24) months

     (c) Death or Disability Termination. If Executive's employment is
     terminated due to his death or Disability (as defined in Section 9), the
     Company will also continue to pay Executive (or his estate), as severance,
     the Annual Base Salary through the end of the month of termination.
     Executive (or his estate) shall also be entitled to receive any of his
     Annual Base Salary accrued through the date of termination, any accrued but
     unpaid vacation pay for the year of termination, any bonuses earned but not
     previously paid with respect to the accounting period of the Company most
     recently ended, and any vested benefits payable to Executive under the
     terms of any deferred compensation plan, 401K plan, stock option plan, or
     other plans maintained by the Company in which Executive participates. The
     Company shall continue to provide Executive (if Disabled) and his family,
     for a period of twenty-four (24) months after the date of termination, with
     the same insurance benefits required by Section 6(c) on the date Death or
     Disability Termination occurs. Additionally, notwithstanding the terms of
     the Company's stock option plans, all stock options received by Executive
     shall become fully vested and

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     immediately exercisable upon a Death or Disability Termination. Such stock
     options shall remain exercisable for a period of not less than twenty-four
     (24) months. All of Executive's other unvested benefits, including, without
     limitation, any Company 401K contributions or profit sharing contributions,
     shall immediately vest upon a Death or Disability Termination.

9. DEFINITIONS. In addition to the words and terms elsewhere defined in this
Employment Agreement, certain capitalized words and terms used in this
Employment Agreement shall have the meanings given to them by the definitions
and descriptions in this Section 9 unless the context or use indicates another
or different meaning or intent, and such definition shall be equally applicable
to both the singular and plural forms of any of the capitalized words and terms
herein defined. The following words and terms are defined terms under this
Employment Agreement:

     (a) Cause. For purposes of this Employment Agreement, the term "Cause"
     shall mean and be limited to:

          (i) Executive was convicted of a felony or entered a guilty or nolo
          contendere plea to such a crime;

          (ii) Executive was convicted of any lesser crime committed in
          connection with the performance of his duties hereunder involving
          dishonesty, fraud or moral turpitude; or

          (iii) Executive's persistent and willful misconduct or gross
          negligence in, performing his material duties in accordance with
          Section 2 herein (other than any such failure resulting from
          Executive's Disability, as defined herein) which gross negligence or
          willful misconduct has a material adverse effect on the Company. For
          purposes of this Agreement, an act or failure to act on Executive's
          part shall be considered "willful" if it was done or omitted to be
          done by Executive not in good faith, and shall not include any act or
          failure to act resulting from any incapacity of Executive.

     (b) Disability. For purposes of this Employment Agreement, the term
     "Disability" shall mean the inability of Executive to perform Executive's
     essential duties and responsibilities (even with reasonable accommodation)
     under this Employment Agreement for a period of one hundred and eighty
     (180) consecutive days during any twelve (12) month period by reason of
     Executive's mental or physical disability. Both the Company and Executive
     may appoint a qualified physician to determine whether Executive is
     Disabled. If those physicians cannot agree, the physicians shall mutually
     appoint a third qualified physician, whose determination of whether
     Executive has a Disability shall be final.

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     (c) Good Reason. For purposes of this Employment Agreement, the term "Good
     Reason" shall mean:

          (i) the Company materially breaches a term of this Employment
          Agreement (including, without limitation, the failure of the Company
          to pay or provide Executive any of the compensation or benefits to
          which he is entitled under this Employment Agreement), which breach
          was not corrected by the Company within thirty (30) days after
          receiving written notice of such breach from Executive;

          (ii) the relocation of Executive's principal office, without
          Executive's prior written consent, more than forty (40) miles away
          from the Company's current headquarters in St. Petersburg, Florida.;

          (iii) the Company's reduction of Executive's compensation and/or
          benefits hereunder without Executive's prior written consent;

          (iv) any removal of Executive from, or the failure to appoint, elect,
          reappoint, or reelect Executive to, the positions of President
          International Group, or a position of comparable responsibility and
          scope, or any material change in Executive's status, title,
          authorities or responsibilities (including reporting responsibilities)
          which represents a demotion from Executive's status, title, position
          or responsibilities (including reporting responsibilities).

          (v) the failure of the H.R. Committee to set reasonably attainable
          budgeted target levels and objectives in the Performance Bonus Plan.

          (vi) any removal of Executive from the reporting relationship to the
          current Chief Executive Officer (unless due to Executive's appointment
          as Chief Executive Officer) as defined in Section 2 hereof; however,
          in the event Executive terminates employment for Good Reason as
          defined in this subsection 9 (c)(vi), Executive shall, if within 30
          days and upon 90 days written notice, receive as full compensation
          (and in lieu of any severance payments provided in Section 8(a)
          hereof) therefor:

               .    a release of any pro rata reimbursement liability under
                    Section 5 (c ) of this Agreement, and
               .    the full vesting of any stock options awarded to the date of
                    termination, which options shall remain exercisable for a
                    period of 24 months following the termination date.
               .    Twenty-four (24) months of insurance benefits coverage as
                    provided in Section 6(c).

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     (d) Restricted Area. For purposes of this Employment Agreement, the term
     "Restricted Area" shall mean the entire world.

10.  NON-COMPETITION AND CONFIDENTIALITY.

     (a) Non-Competition. During the Term and for a period of twenty-four (24)
     months following the termination of Executive's employment hereunder for
     Good Cause or without Good Reason, 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;
     further, Executive shall not engage 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 10
     shall be deemed to prohibit Executive from acquiring, solely as an
     investment, a less than five percent (5%) interest in the equity of any
     publicly traded corporation or limited partnership. This provision shall
     specifically include but not be limited to Xerox, Ikon, Hewlett-Packard,
     Lexmark, Imagistics and Global Imaging Services. Executive may request
     Company's consent to work for a non-competing division of any other
     Company, which consent shall not be unreasonably withheld.

     (b) Non-Solicitation of Employees. During the Term and for a period of
     twenty-four (24) months following the termination of Executive's employment
     hereunder for Good Cause or without Good Reason, Executive, except within
     the course of the performance of his duties hereunder, shall not solicit
     for employment any current employee of the Company, any constituent
     partner of the Company, or any of their respective parents, subsidiaries,
     or affiliates, if Executive has had material business contact with such
     individual during the Term.

     (c) Confidentiality. Executive shall not, at any time hereafter, disclose
     to any person, firm or corporation or otherwise use 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 or affiliates,
     except to the extent necessary to conduct the business of the Company, or
     to comply with law or the valid order of a governmental agency or court of
     competent jurisdiction. Without limiting the generality of the foregoing,
     the Parties acknowledge and agree that all information not otherwise
     generally known to the public relating to each of (i) this Agreement, or
     (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 or
     otherwise used, except to the extent necessary to conduct the business of
     the Company, or to comply with law or the valid order of a governmental
     agency or court of competent jurisdiction.

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     (d) Rights to Innovations. 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, at the Company's expense, 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.

     (e) Injunctive Relief. Any breach or threatened breach by Executive of any
     provision of this Section 10 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 10,
     the Company shall be entitled to injunctive relief restraining Executive.
     Nothing herein shall be construed as prohibiting the Company from pursuing
     any other remedies available at law or in equity in the event of such
     breach or threatened breach, including the recovery of damages.

11. SUCCESSORS. This Employment Agreement shall be binding on the Company and
any successor to its business or to a majority of its business assets and the
Company shall require any successor in interest (whether direct or indirect, by
purchase, merger, consolidation, or otherwise) to expressly assume and agree to
perform this Employment Agreement; provided, however, that no such assumption
shall relieve the Company of its obligations hereunder.

12. BINDING EFFECT. This Employment Agreement shall inure to the benefit of and
be enforceable by Executive's personal and legal representatives, executors,
administrators, successors, heirs, distributees, devisees and legatees.

13. MODIFICATION AND WAIVER. No provision of this Employment Agreement may be
modified, waived or discharged unless such waiver, modification or discharge is
agreed to in a writing that specifies the specific provision affected, which
writing shall be signed by Executive and such officer of the Company as may be
specifically designated by the Board. No waiver by either party hereto at any
time of any breach by the other party hereto of, or compliance with, any
condition or provision of this Employment Agreement to be performed by such
other party shall be deemed a waiver of similar or dissimilar provisions or
conditions at the same or at any prior or subsequent time.

14. AMENDMENTS. No amendments or variations of the terms and conditions of this
Employment Agreement shall be valid unless the same is in a writing that
specifies the term or

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condition affected, which writing is signed by Executive and such officer of the
Company as may be specifically designated by the Board.

15. SEVERABILITY. The invalidity or unenforceability of any provision of this
Employment Agreement, whether in whole or in part, shall not in any way affect
the validity and/or enforceability of any other provision herein contained. Any
invalid or unenforceable provision shall be deemed severable to the extent of
any such invalidity or unenforceability.

16. ENTIRE AGREEMENT. This Employment Agreement sets forth the entire agreement
and understanding of the Company and Executive in respect of the terms and
conditions of Executive's employment after the Commencement Date, and supersedes
all prior employment agreements, covenants or representations or warranties,
whether oral or written, made by the parties. or any representative of the
Company, with respect to such terms and conditions of employment; provided,
however, that this Employment Agreement does not supersede or affect the Change
of Control Agreement between Executive and the Company.

17. NOTICES. All notices, communications and deliveries hereunder shall be made
in writing signed by or on behalf of the party making the same and shall be
delivered (a) personally; (b) by telecopy transmission with a copy sent by U.S.
mail, first class, postage prepaid; (c) by registered or certified mail (return
receipt requested); or (d) by any national overnight courier service (with
postage and other fees prepaid). All such notices, communications, and delivers
shall be addressed as follows:

                                   If to the Company:

                                   Danka Office Imaging Company
                                   11201 Danka Circle North
                                   St. Petersburg, Florida 33716
                                   Attn: General Counsel
                                   Telephone No.: (727) 579-2801
                                   Telecopy No.:  (727) 579-2880

                                   and:

                                   Danka Business Systems PLC
                                   Masters House
                                   107 Hammersmith Road
                                   London, England w14 OQH
                                   Attn: Secretary

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                                   If to the Executive:

                                   Michael D. Popielec
                                   6585 Nicholas Boulevard, #1104
                                   Naples, Florida 34108
                                   Telephone No.: (239) 596-4176
                                   Telecopy No:   (239) 596-4205

                                   with a copy to:

                                   Paul M. Ritter
                                   Kronish Lieb Weiner & Hellman LLP
                                   1114 Avenue of the Americas
                                   New York, N.Y. 10036
                                   Telephone - (212) 479-6198
                                   Facsimile - (212) 479-6275

or to such other representative or at such other address of a party as such
party hereto may furnish to the other parties in writing. Any such notice,
communication or delivery shall be deemed given or made (a) on the date of
delivery if delivered in person (by courier service or otherwise), (b) upon
transmission by facsimile if receipt is confirmed by telephone, provided
transmission is made during regular business hours, or if not, the next business
day, or (c) on the fifth (5th) business day after it is mailed by registered or
certified mail.

18. GOVERNING LAW. This Employment Agreement shall be construed and enforced
pursuant to the laws of the State of Florida.

19. ARBITRATION. Any controversy or claim arising out of or relating to this
Employment Agreement or the breach thereof, other than a claim for injunctive
relief, shall be settled by arbitration in accordance with the Employment
Arbitration Rules of the American Arbitration Association (the "Rules") in
effect at the time demand for arbitration is made by any party. This arbitration
shall be conducted before three (3) arbitrators. One arbitrator shall be named
by the Company, a second shall be named by 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. The arbitration shall occur in St. Petersburg, Florida
or such other location as may be mutually agreed to by the Company and
Executive. 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 award is subject to confirmation, modification,
correction, or vacation only as explicitly provided in Title 9 of the United
States Code, as amended.

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20. NO MITIGATION OR OFFSET. Executive shall not be required to mitigate the
amount of any severance or termination payment provided for in this Employment
Agreement by seeking other employment or otherwise, nor shall the amount of any
payment or benefit provided for in this Employment Agreement be reduced by any
compensation or income Executive may receive from any source. In addition, no
payments to Executive under this Employment Agreement may be subject to any
offset or setoff due to any claim the Company, or its parents, affiliates, or
subsidiaries, may have against Executive.

21. ATTORNEYS' FEES. The Company will promptly reimburse Executive for all
reasonable attorneys' fees (for counsel selected by Executive) and expenses
arising out of the negotiation of this Employment Agreement, as well as any
dispute under or in connection with this Employment Agreement (whether
litigation or arbitration) to the extent Executive is the prevailing party.
Executive shall in no way be responsible or liable for the Company's attorneys'
fees and expenses in any dispute arising under or in connection with this
Employment Agreement, and no award or order relating to this Employment
Agreement shall award the Company its attorneys' fees.

22. SOURCE OF PAYMENTS. All salary, bonus, severance, and all other payments to
Executive under this Employment Agreement shall be paid to Executive by the
Company through its U.S. payroll system and shall be made in cash in U.S.
dollars. If the Company should fail to make any such payment to Executive when
due, Danka Office Imaging, Danka Holding, and Danka Business Systems shall be
jointly and severally liable to Executive for such payments.

23. REPRESENTATION. The Company represents and warrants that it is fully
authorized and empowered to enter into this Employment Agreement and that the
performance of its obligations under this Employment Agreement will not violate
any agreement between it and any other person, firm, or organization.

24. COUNTERPARTS. This Employment Agreement may be executed in more than one (1)
counterpart and each counterpart shall be considered an original.

     IN WITNESS WHEREOF, this Employment Agreement has been duly executed by the
Company and Executive as of the date first above written.

                          SIGNATURES ON FOLLOWING PAGE

                                       13

<PAGE>

                                                DANKA BUSINESS SYSTEMS PLC

                                                By: /s/ Illegible
                                                    ----------------------------
                                                Name: Illegible
                                                Title: CEO

                                                DANKA HOLDING COMPANY

                                                By: /s/ Illegible
                                                    ----------------------------
                                                Name: Illegible
                                                Title: CEO

                                                DANKA OFFICE IMAGING COMPANY

                                                By: /s/ Illegible
                                                    ----------------------------
                                                Name: Illegible
                                                Title: CEO

                                                EXECUTIVE

                                                /s/ Michael D. Popielec
                                                --------------------------------
                                                Michael D. Popielec

                                       14<PAGE>

                                                                   Exhibit 10.43

                              EMPLOYMENT AGREEMENT

     EMPLOYMENT AGREEMENT, dated as of August 15, 2000, between Danka Office
Imaging Company (the "Company"), and Keith J. Nelsen ("Executive").

                                   WITNESSETH:

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

     WHEREAS, Executive wishes to serve in such capacity on the terms 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, reporting to the Chief Executive Officer of the Company.

     1.2 Executive shall be a full-time employee of the Company, and subject to
     customary paid holidays and vacations (not less than three (3) weeks per
     year), Executive agrees to devote his full working time to the business of
     the Company.

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 as provided herein, one (1) year from the
     date of execution of this Agreement (the "Termination Date").
     Notwithstanding the foregoing, this Agreement shall automatically renew for
     additional one-year periods unless earlier terminated as provided herein,
     in which case the Termination Date shall be extended for such additional
     one year period.

3.   Compensation.

     3.1 During the Term, the Company shall pay Executive, as compensation for
     services to be rendered pursuant to this Agreement, a per annum salary,
     payable in accordance with the Company's standard payroll practices, at the
     rate established from time to time not to be less than Executive's salary
     at the time of execution of this Agreement (the "Base Compensation").
     Executive shall be eligible for annual increases in accordance with Company
     policies, and shall be eligible to receive annual stock option grants as
     are equitable and consistent with Executive's position and performance.

     3.2 Executive shall have a target bonus of fifty (50%) of his Base
     Compensation based upon achievement of established Company revenues and
     EBITDA objectives, or as otherwise developed by the Human Resources
     Committee of the Board of Directors of Danka Business

                                       1

<PAGE>

     Systems, PLC. Said bonus shall be payable as soon as practicable following
     the end of Company's fiscal year.

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

     4.1 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 Term.

     4.2 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 of the
     Company, and to terminate his right to the compensation provided for herein
     for cause. As used in this Section 4.2, the term "for cause" shall mean and
     be limited to the following events:

          4.2.1 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

          4.2.2 Executive's conviction 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.

     4.3 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 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 4.1 or 4.2 hereof, the Company shall pay Executive an
     amount equal to the sum of (1) one and one-half times (i.e. 18 months)
     Executive's then existing base salary, and (2) one and one-half times the
     annual target bonus which would be payable in the fiscal year of Notice of
     Termination as if the Company's financial performance targets were deemed
     to be satisfied at the budgeted levels. Executive may elect the above
     payments to be made in one lump sum payable within ten (10) days of
     Executive's last day of employment with Company.

     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 It shall be deemed a
     termination under this Section 4.3 if at any time (1) there is any change
     in Executive's status, title, authorities, or responsibilities which can
     reasonably be construed to be a demotion from the status, title,
     authorities and responsibilities of the Senior Vice President, General
     Counsel of a United Kingdom/United States publicly traded company; (2) the
     relocation or reassignment of Executive to a location more than thirty (30)
     miles from St. Petersburg, Florida; (3) a breach by Company of the
     Compensation provisions of Section 3 herein.

                                       2

<PAGE>

5.   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):

     5.1  If to the Company:

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

          Attention: Chief Executive

     5.2  If to Executive:

          Keith J. Nelsen
          2603 Sanders Drive
          Tampa, Florida 33611

6.   General.

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

     6.2 This Agreement sets forth the entire agreement and understanding of the
     parties relating to the subject matter hereof, and supercedes all prior
     agreements, arrangements and understandings written or oral, relating to
     the subject matter hereof with the exception of any Change of Control
     Agreement executed between the parties which shall remain in full force and
     effect. 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.

     6.3 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.

     6.4 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.

     6.5 Any controversy or claim arising out of or relating to this Employment
     Agreement, other than a claim for injunctive relief, shall be settled by
     arbitration in accordance with the

                                       3

<PAGE>

     Commercial Arbitration Rules of the American Arbitration Association (the
     "Rules") in effect at the time demand for arbitration is made by any party.

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

                                              DANKA OFFICE IMAGING COMPANY

                                              By: /s/ Illegible
                                                  ------------------------------
                                                  Title: Chief Executive Officer

                                              Executive

                                              By: /s/ Illegible
                                                  ------------------------------

Witness:

/s/ Illegible
------------------------------

                                       4

<PAGE>

                                                                       EXHIBIT A

                               RELEASE OF CLAIMS

DEFINITIONS: I,                            , ("Employee"), intend all words used
                ---------------------------
in this Release to have their plain meaning in ordinary English. Technical legal
words are 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 or any parent
          company, affiliated companies or entities and includes Employer's
          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, and 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 Florida Human Rights Act, 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, or any other
          claims.

Agreement to Release My Claims. I am receiving a substantial amount of money,
among other things, from the Employer as consideration for my release of claims.
I agree to give up all My Claims against 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.

                                       5

<PAGE>

Additional Agreements and Understandings. Even though Employer is paying me to
release My Claims, the employer expressly denies that it is responsible or
legally obligated for My Claims or that it 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 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 and
within fifteen (15) calendar days of signing it to reinstate claims under the
Florida Human Rights Act. To be effective, my rescission must be in writing and
delivered to the Employer,                         , 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                        ; and
                               -----------------------

     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
Employer or its agents.

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

Dated:                                   Signed:
      ---------------------------------          -------------------------------

Witnesses:

                                       6

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