Document:

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                                                                   Exhibit 10.37
                             EMPLOYMENT AGREEMENT

         This Employment Agreement (the "Employment Agreement") is made and
entered into as of the 6th day of November, 2001, by and among Danka Office
Imaging Company ("Danka Office Imaging"), Danka Business Systems PLC ("Danka
Business Systems"), Danka Holding Company ("Danka Holding"), and Brian L.
Merriman, 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 Chief
     -------------------
Operating Officer, Strategic Operations reporting to the Chief Executive Officer
of the Company. Executive shall direct, oversee and use his best efforts to
successfully execute the management and operations of the such projects and
initiatives as directed by the Chief Executive Officer.

3.   EMPLOYMENT TERM.
     ---------------

     (a)  Term. Employment of Executive by the Company pursuant to this
          ----
     Employment Agreement shall begin effective November 1, 2001, 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 Tampa, St. Petersburg metropolitan area.

5.   COMPENSATION.
     ------------

     (a)  Salary.  Beginning effective November 1, 2001 and continuing during
          ------
     the Term, the Company shall pay Executive a base salary at the rate of
     $500,000 per annum (the "Annual Base Salary"), payable in a manner
     consistent with the Company's payroll procedures for U.S. salaried
     employees. The Human Resources Committee of the Board

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     (the "H.R. Committee") shall review Executive's Annual Base Salary at its
     discretion 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,
     beginning in the Company's Fiscal Year 2002, which begins April 1, 2001.
     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 equal to $500,000. The Company will pay Executive
     additional bonuses in accordance with such Plan. The Company shall pay any
     bonus earned by Executive in accordance with the plan, 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)  Company shall purchase and convey title to Executive, of the
     automobile Executive is currently using as a company car, a 1999 BMW 740
     IL. Executive, in return, shall forfeit back to Danka's option plan, the
     options over 85,000 ADSs granted to Executive on or about September 9,
     1998.

     (d)  Company shall forgive repayment of compensation Executive received for
     temporary living expenses during Executive's employment in the amount of
     $85,500.00. Company shall issue Executive a W-2 statement for such
     compensation and Executive agrees to pay taxes thereon.

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. Any grants under the plan
          shall be at the sole discretion of the H. R. Committee.

          (ii)  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. The exercise price of the options set on the date such
          grant is approved by the H.R. Committee.

          (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

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          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 on the
     same terms and conditions as all other Danka employees; there shall be no
     entitlement to any special executive level benefits unless Executive pays
     for such benefits on his own.

     (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 three (3) 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.

     (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,

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     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.

     (i)  Executive shall receive four (4) Split Dollar life insurance premium
     payments in the amount of $683,806 pursuant to the Split Dollar Agreement
     executed by Executive and Company on or about June 21, 2000. The first such
     payment will be made by no later than November 15, 2001. The remaining
     three (3) payments shall be made on January 1, 2002, 2003 and 2004
     respectively. Executive shall receive no payments other than those
     described in this paragraph with respect to any split-dollar, or other life
     insurance policy or agreement. The Company will continue to characterize
     its payment of the Split Dollar life insurance premiums under the policy as
     a loan on the Company's books and records, will, to the extent permitted by
     law, maintain consistent tax and accounting treatment throughout the life
     of the policy, and will retain all of its rights under the policy,
     including but not limited to, the Collateral Assignment granted pursuant to
     Section 5 of the "Split Dollar Agreement". If Executive resigns his
     employment effective prior to July 1, 2002, he shall forfeit his
     entitlement to any Split Dollar insurance premiums owing thereafter.

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").

     (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

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     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), within the first year of employment the
     Company shall pay to Executive (subject to withholding of applicable taxes)
     a severance of $1,000,000. $500,000 of such severance shall be paid in
     equal installments over twelve (12) months on the Company's standard bi-
     weekly Company payroll dates, beginning one (1) month following the date of
     termination, and an additional $500,000 shall be paid on the one year
     anniversary of the termination date. Employee shall be entitled to the
     immediate vesting of all restricted shares held by Executive, including
     those granted to Executive pursuant to the Amendment to Employment
     Agreement between the parties dated May 30, 2000. 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. 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

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     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 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 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.

     (d)  Special One-Time Termination Right. Executive may himself elect to
          -----------------------------------
     receive the compensation in Section 8 (a) above by giving to Company no
     less than thirty (30) days, but no more than forty (40) days, prior written
     notice of his intent to terminate his employment on July 1, 2002, which
     shall then become Executive's Termination Date. This shall be Executive's
     sole right to unilaterally invoke such payments and such date shall not be
     modified or extended without the Company's agreement, in writing, signed by
     the CEO.

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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 gross negligence in, or willful failure to
          substantially perform his 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 failure has a
          material adverse effect on the Company.

     (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.

     (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;

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          (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 salary hereunder without
          Executive's prior written consent;

     (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 ending twelve (12)
          ---------------
     months after payment of the final Split Dollar insurance premium under
     paragraph 6(i) 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;
     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.  Notwithstanding the
     foregoing, Executive may submit in writing any proposed employment
     opportunities to the Company and the Company, in its sole discretion, may
     provide written permission for such employment, with such additional or
     modified restrictive covenants as the Company may reasonably insist upon.

     (b)  Non-Solicitation of Employees.  During the Term and for a period
          -----------------------------
     ending twelve (12) months after payment of the final Split Dollar insurance
     premium under paragraph 6(i) hereof, 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

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     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.

     (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.

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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 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.  Executive
and Company agree that Executive's benefits under the Change of Control
Agreement between the parties shall be paid in the event there is a qualifying
Change of Control within twelve (12) months of Executive's termination date
hereunder.

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:
                         -------------------

                         Brian L. Merriman
                         XXXXXXXXXXXXXX
                         XXXXXXXXXXX
                         Telephone No.:  (XXX) XXX-XXX
                         Telecopy No: (XXX) XXX-XXX

                         with a copy to:
                         --------------

                         ______________________

                         ______________________

                         ______________________

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 one (1) arbitrator who shall  be named
only by mutual consent of  both Executive and Company     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  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.

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

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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
     ---------------
attorneys' fees (for counsel selected by Executive) and expenses arising out of
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

                                       12
<PAGE>

                         DANKA BUSINESS SYSTEMS PLC

                         [Lang Lowrey]
                         -------------------------------
                         By: P. Lang Lowrey
                             ---------------------------
                         Title: Chief Executive Officer
                                ------------------------

                         DANKA HOLDING COMPANY

                         [Lang Lowrey]
                         -------------------------------
                         By: P. Lang Lowrey
                             ---------------------------
                         Title: Chief Executive Officer
                                ------------------------

                         DANKA OFFICE IMAGING COMPANY

                         [Lang Lowrey]
                         -------------------------------
                         By: P. Lang Lowrey
                             ---------------------------
                         Title: Chief Executive Officer
                                ------------------------

                         EXECUTIVE

                         [Brian L. Merriman]
                         -------------------------------
                         Brian L. Merriman

                                       13<PAGE>

                                                                   Exhibit 10.38
                             EMPLOYMENT AGREEMENT

          This Employment Agreement (the "Employment Agreement") is made and
entered into as of the 26 day of July, 2001, by and among Danka Office Imaging
Company ("Danka Office Imaging"), Danka Business Systems PLC ("Danka Business
Systems"), Danka Holding Company ("Danka Holding"), and Todd Mavis, 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 Corporate Executive Vice-President, Office Imaging Division
reporting to the Chief Executive Officer of the Company. Executive shall direct
and oversee the management and operations of the Office Imaging SBU.

3.        EMPLOYMENT TERM.
          ---------------
          (a)   Term. Employment of Executive by the Company pursuant to this
                -----
          Employment Agreement shall begin on August 1, 2001, 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 August 1, 2001 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 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.

                                       1
<PAGE>

          (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, beginning in the Company's Fiscal Year 2002, which
          begins April 1, 2001. Executive's bonus plan payments shall begin with
          the Company's third fiscal quarter (10/1/01). However; Executive shall
          be entitled to credit for the first two fiscal quarters in determining
          the bonus payable at the end of the fiscal year per the Company's
          Management Incentive Plan. 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 equal
          to $250,000.00. 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. 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 $50,000.00
              ---------------
          within ten business (10) days of execution of this Agreement.
          Executive shall receive a bonus of $75,000.00 upon the permanent
          relocation of his family to the St. Petersburg area. Executive shall
          receive a bonus of $100,000.00 on the one-year anniversary of his
          execution of this Agreement if Executive remains employed by Company
          on such date. 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 one year period from the date of payment). (e.g. If Executive
          resigns 6 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.

               (ii)  Executive shall receive from the Company a registered stock
               option grant in the amount of 400,000 American Depository Shares
               ("ADSs") representing ordinary shares of Danka Business Systems
               PLC. Vesting of 350,000 of such options will be in accordance
               with the Company Stock Option Plan (1/3 per year for 3 years).
               Executive shall be entitled to immediate vesting of 25,000
               options upon achievement of 100% of the FY2002 goals for the
               Office Imaging SBU and immediate vesting of 25,000 options

                                       2
<PAGE>

               upon achievement of 125% FY2002 goals for the Office Imaging SBU.
               In the event the above goals are not met, these 50,000 options
               shall become vested on the fifth anniversary of the date such
               options are granted. 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. The exercise
               price of the options set on the date such grant is approved by
               the H.R. Committee.

               (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.

         (f)   Business Expenses. The Company shall promptly reimburse Executive
               -----------------
         for all reasonable, ordinary and necessary expenses he incurs in
         connection with his

                                       3
<PAGE>

         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)   Relocation Expenses. The Company shall provide relocation
               -------------------
         assistance in accordance with the Company's standard relocation
         benefits plan. In addition to the benefits provided in the Company
         relocation benefits plan, beginning August 1, 2001 and continuing for a
         period of five (5) months, the Company shall promptly (i) reimburse
         Executive up to $3,000 per month for the temporary living and travel
         expenses associated with his relocation, and (ii) pay Executive a
         "gross up" payment sufficient to pay any federal, state and local
         income tax and social security, or other employment tax on the amounts
         paid under this Section 6(g), 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 for
         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. Executive shall pay Company a pro rated
         portion of such relocation and temporary living expenses (as per
         Section 5 (c)) herein (using a three-year period from the date of
         payment), upon Executive's voluntary or for cause termination.

         (h)   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.

         (i)   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.

         (j)   Housing Bonus. Company shall pay Executive a housing bonus of
               -------------
         $100,000.00 (grossed up for tax purposes) upon the earlier of his
         closing the sale of his existing home in Poway, California, or his new
         home in the St. Petersburg, Florida area. Executive shall pay Company a
         pro rated portion of such housing bonus (as per Section 5(c) herein
         (using a three-year period from the date of payment), upon Executive's
         voluntary or for cause termination.

                                       4
<PAGE>

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").

     (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), within the first year of employment the
     Company shall pay to Executive (subject to withholding of applicable taxes)
     a severance of Three Hundred Seventy Five

                                       5
<PAGE>

     Thousand Dollars ($375,000.00). If such termination occurs after the first
     year of employment Executive shall receive a severance of Seven Hundred
     Fifty Thousand Dollars ($750,000.00). Such severance shall be paid in equal
     installments over twelve (12) 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. 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 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 Company Notice
     Termination or Good Reason Termination. If employee is terminated without
     cause before August 1, 2002, and Executive accepts another position within
     one (1) year, Company shall provide Executive with relocation
     reimbursement, to the extent not fully reimbursed by Executive's new
     employer, per the Company policy, not to exceed $50,000.

     (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

                                       6
<PAGE>

     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 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 gross negligence in, or willful failure to
          substantially perform 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
          failure has a material adverse effect on the Company; provided,
                                                                --------
          however, that such gross negligence or willful failure shall not be
          -------
          considered Cause unless it continues after the Company has made a
          written demand for substantial performance on Executive and Executive
          has failed to correct the acts or omissions complained of after a
          reasonable opportunity (of not less than sixty (60) days) to do so.

     (b)  Disability. For purposes of this Employment Agreement, the term
          ----------
     "Disability" shall mean the inability of Executive to perform Executive's
     essential duties and

                                       7
<PAGE>

         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.

         (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)  there has been an adverse or material change in
                  Executive's status, position, duties, responsibilities
                  (including reporting responsibilities), authority, or titles,
                  which change was not withdrawn or rescinded by the Company
                  within thirty (30) days after receiving written notice of
                  objection to such change from Executive;

                  (v)   the assignment to Executive of any duties or work
                  responsibilities, or any instructions, orders, or directives
                  which are inconsistent with his status, position, duties,
                  responsibilities (including reporting responsibilities),
                  authority, or titles as set forth in this Employment Agreement
                  or as required by law.

                  (vi)  any removal of Executive from, or the failure to
                  appoint, elect, reappoint, or reelect Executive to, the
                  positions of Chief Executive Officer of the Company and/or
                  Director on the Board; and/or

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

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

                                       8
<PAGE>

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.

     (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.

     (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

                                       9
<PAGE>

     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 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

                                       10
<PAGE>

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

                                     If to the Executive:
                                     -------------------

                                     Todd Mavis
                                     XXXXXXXXXXXXXX
                                     XXXXXXXXXXX
                                     Telephone No.: (XXX) XXX-XXX
                                     Telecopy No: (XXX) XXX-XXX

                                     with a copy to:
                                     --------------

                                     _______________________

                                     _______________________

                                     _______________________

                                       11
<PAGE>

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.

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
     ---------------
attorneys' fees (for counsel selected by Executive) and expenses arising out of
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,

                                       12
<PAGE>

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

                                            [Lang Lowrey]
                                            -------------------------------
                                            By: P. Lang Lowrey
                                                ---------------------------
                                            Title: Chief Executive Officer
                                                   ------------------------

                                            DANKA HOLDING COMPANY

                                            [Lang Lowrey]
                                            -------------------------------
                                            By: P. Lang Lowrey
                                                ---------------------------
                                            Title: Chief Executive Officer
                                                   ------------------------

                                            DANKA OFFICE IMAGING COMPANY

                                            [Lang Lowrey]
                                            -------------------------------
                                            By: P. Lang Lowrey
                                                ---------------------------
                                            Title: Chief Executive Officer
                                                   ------------------------

                                            EXECUTIVE

                                            [Todd Mavis]
                                            -------------------------------
                                            Todd Mavis

                                       14

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