Document:

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                                                                  EXHIBIT 10.21

                FIRST AMENDMENT TO CREDIT AND SECURITY AGREEMENT

         This First Amendment, dated as of _______________, 1999, is made by and
among NU-KOTE HOLDING, INC., a Delaware corporation, NU-KOTE IMPERIAL, LTD., a
Delaware corporation, NU-KOTE INTERNATIONAL, INC., a Delaware corporation,
INTERNATIONAL COMMUNICATION MATERIALS, INC., a Pennsylvania corporation, NU-KOTE
IMAGING INTERNATIONAL, INC., a Delaware corporation, FUTURE GRAPHICS, INC., a
California corporation, and NU-KOTE LATIN AMERICA, INC., a Delaware corporation
(each a "Borrower" and together the "Borrowers"), and WELLS FARGO BUSINESS
CREDIT, INC., a Minnesota corporation, formerly known as Norwest Business
Credit, Inc. (the "Lender").

                                    Recitals

         The Borrowers and the Lender have entered into a Credit and Security
Agreement dated as of December 14, 1998 (the "Credit Agreement"). All
capitalized terms used in these recitals shall have the meanings given to them
in the Credit Agreement.

         The Borrowers have requested (i) that the Lender, in its sole
discretion, cause letters of credit to be issued for the Borrowers' account from
time to time in an amount not to exceed $1,500,000 at any one time outstanding,
(ii) that the Lender release its security interest in the Xaar License, (iii)
that the Capital Expenditures limitation be increased and (iv) that certain
financial covenant violations be waived. The Lender is willing to grant the
Borrowers' request subject to the terms of this First Amendment.

         Accordingly, the Borrowers and the Lender hereby agree as follows:

         1. Defined Terms. Capitalized terms used in this First Amendment which
are defined in the Credit Agreement shall have the same meanings as defined
therein, unless otherwise defined herein. In addition, Section 1.1 of the Credit
Agreement is amended as follows:

         (a) Section 1.1 of the Credit Agreement is amended to add or substitute
      the following definitions:

            "'Collateral' means the Borrowers' Special Account, all of the
      Borrowers' Equipment, General Intangibles (including any rights to
      avoidance of transfers or recoveries of property or money under the
      Bankruptcy Code), Inventory, Real Estate Collateral, Receivables,
      Investment Property, all sums on deposit in any Collateral Account, and
      any items in any Lockbox; together with (i) all substitutions and
      replacements for and products of any of the foregoing; (ii) proceeds of
      any and all of the foregoing; (iii) in the case of all tangible goods, all
      accessions; (iv) all accessories, attachments, parts, equipment and
      repairs now or hereafter attached or affixed to or

<PAGE>   2

      used in connection with any tangible goods; and (v) all warehouse
      receipts, bills of lading and other documents of title now or hereafter
      covering such goods."

            "'First Amendment' means this First Amendment to the Credit and
      Security Agreement."

            "'Issuer' means the issuer of any Letter of Credit."

            "'L/C Amount' means the sum of (i) the aggregate face amount of any
      issued and outstanding Letters of Credit and (ii) the unpaid amount of the
      Obligation of Reimbursement."

            "'L/C Application' means an application and agreement for Letters of
      Credit in a form acceptable to the Issuer and the Lender."

            "'Letter of Credit' has the meaning given in Section 2.13."

            "'Obligation of Reimbursement' has the meaning given in Section
      2.14(a)."

            "'Obligations' means each and every debt, liability and obligation
      of every type and description which the Borrowers may now or at any time
      hereafter owe to the Lender, whether such debt, liability or obligation
      now exists or is hereafter created or incurred, whether it arises in a
      transaction involving the Lender alone or in a transaction involving other
      creditors of the Borrowers, and whether it is direct or indirect, due or
      to become due, absolute or contingent, primary or secondary, liquidated or
      unliquidated, or sole, joint, several or joint and several, and including
      specifically, but not limited to, all indebtedness of the Borrowers
      arising under this Agreement or any L/C Application completed by the
      Borrowers (including but not limited to the Note and the Obligation of
      Reimbursement), or any other loan or credit agreement or guaranty between
      the Borrowers and the Lender, whether now in effect or hereafter entered
      into."

            "'Prime Rate' means the rate publicly announced from time to time by
      Wells Fargo Bank, National Association as its "prime rate" or, if such
      bank ceases to announce a rate so designated, any similar successor rate
      designated by the Lender."

            "'Special Account' means a specified cash collateral account
      maintained by a financial institution acceptable to the Lender in
      connection with Letters of Credit, as contemplated by Sections 2.14."

            (b) The definition of "Base Rate" is deleted from Section 1.1 of the
      Credit Agreement. All references to the Base Rate shall be deemed
      references to the Prime Rate.

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<PAGE>   3

            2. Advances. The first paragraph of Section 2.1 of the Credit
Agreement is amended to read as follows:

            "Section 2.1 Revolving Advances. The Lender agrees, on the terms and
      subject to the conditions herein set forth, to make advances to the
      Borrowers from time to time from the date all of the conditions set forth
      in Section 4.1 are satisfied (the "Funding Date") to the Termination Date
      (the "Revolving Advances"). The Lender shall have no obligation to make a
      Revolving Advance if, after giving effect to such requested Revolving
      Advance, the sum of the outstanding and unpaid Revolving Advances would
      exceed the Borrowing Base less the L/C Amount. The Borrowers' obligation
      to pay the Revolving Advances shall be evidenced by the Revolving Note and
      shall be secured by the Collateral as provided in Article III. Within the
      limits set forth in this Section 2.1, the Borrowers may borrow, prepay
      pursuant to Section 2.6 and reborrow. The Borrowers agree to comply with
      the following procedures in requesting Revolving Advances under this
      Section 2.1."

            3. Fees. The following new Sections 2.3(c) and 2.3(d) are added to
the Credit Agreement immediately after Section 2.3(b):

            "(c) LETTER OF CREDIT FEES. The Borrowers agree to pay the Lender a
      fee with respect to each Letter of Credit, if any, accruing on a daily
      basis and computed at the annual rate of two percent (2%) of the aggregate
      amount that may then be drawn on all issued and outstanding Letters of
      Credit, assuming compliance with all conditions for drawing thereunder
      (the "Aggregate Face Amount"), from and including the date of issuance of
      such Letter of Credit until such date as such Letter of Credit shall
      terminate by its terms or be returned to the Lender, due and payable
      monthly in arrears on the first day of each month and on the Termination
      Date; provided, however that during Default Periods, in the Lender's sole
      discretion and without waiving any of its other rights and remedies, such
      fee shall increase to four percent (4%) of the Aggregate Face Amount. The
      foregoing fee shall be in addition to any and all fees, commissions and
      charges of any Issuer of a Letter of Credit with respect to or in
      connection with such Letter of Credit."

            "(d) LETTER OF CREDIT ADMINISTRATIVE FEES. The Borrowers agree to
      pay the Lender, on demand, the administrative fees charged by the Issuer
      in connection with the honoring of drafts under any Letter of Credit,
      amendments thereto, transfers thereof and all other activity with respect
      to the Letters of Credit at the then-current rates published by the Issuer
      for such services rendered on behalf of customers of the Issuer
      generally."

            4. Mandatory Prepayment. Section 2.8 of the Credit Agreement is
amended to read as follows:

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<PAGE>   4

            "Section 2.8 Mandatory Prepayment. Without notice or demand, if the
      outstanding principal balance of the Revolving Advances plus the L/C
      Amount shall at any time exceed the Borrowing Base, the Borrowers shall
      (i) immediately prepay the Revolving Advances to the extent necessary to
      eliminate such excess; and (ii) if prepayment in full of the Revolving
      Advances is insufficient to eliminate such excess, pay to the Lender in
      immediately available funds for deposit in the Special Account an amount
      equal to the remaining excess. Any payment received by the Lender under
      this Section 2.8 or under Section 2.6 may be applied to the Obligations,
      in such order and in such amounts as the Lender, in its discretion, may
      from time to time determine."

            5. Letter of Credit Provisions. The following new Sections are added
to the Credit Agreement at the end of Article II:

            "Section 2.13 Issuance of Letters of Credit.

                  (a) The Lender may, in its sole discretion, cause to be issued
            by an Issuer one or more letters of credit for the account of the
            Borrowers (each a "Letter of Credit") from time to time during the
            period from the date of the First Amendment until the earlier of the
            date the Lender demands payment of the Revolving Advances or the
            Termination Date, in an aggregate amount at any time outstanding not
            to exceed the lesser of:

                      (i) $1,500,000 less the L/C Amount, or

                      (ii) the Borrowing Base less the sum of (A) all
                  outstanding and unpaid Advances hereunder and (B) the L/C
                  Amount.

            Each Letter of Credit, if any, shall be issued pursuant to a
            separate L/C Application entered into by the Borrowers and the
            Lender as co-applicants for the benefit of the Issuer, completed in
            a manner satisfactory to the Lender and the Issuer. The terms and
            conditions set forth in each such L/C Application shall supplement
            the terms and conditions hereof, but in the event of inconsistency
            between the terms of any such L/C Application and the terms hereof,
            the terms hereof shall control.

                  (b) No Letter of Credit shall be issued with an expiry date
            later than December 14, 2000.

                  (c) Any request for the issuance of a Letter of Credit under
            this Section 2.13 shall be deemed to be a representation by each
            Borrower that the statements set forth in Section 4.2 hereof are
            correct as of the time of the request.

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<PAGE>   5

            "Section 2.14 Payment of Amounts Drawn Under Letters of Credit;
      Obligation of Reimbursement. The Borrowers acknowledge that the Lender, as
      co-applicant, will be liable to the Issuer of any Letter of Credit for
      reimbursement of any and all draws thereunder and all other amounts
      required to be paid under the applicable L/C Application. Accordingly, the
      Borrowers agree to pay to the Lender any and all amounts required to be
      paid under the applicable L/C Application, when and as required to be paid
      thereby, and the amounts designated below, when and as designated:

                  (a) The Borrowers hereby agree to pay the Lender on the day a
            draft is honored under any Letter of Credit a sum equal to all
            amounts drawn under such Letter of Credit plus any and all
            reasonable charges and expenses that the Issuer or the Lender may
            pay or incur relative to such draw, plus interest on all such
            amounts, charges and expenses as set forth below (all such amounts
            are hereinafter referred to, collectively, as the "Obligation of
            Reimbursement").

                  (b) The Borrowers hereby agree to pay the Lender on demand
            interest on all amounts, charges and expenses payable by the
            Borrowers to the Lender under this Section 2.14, accrued from the
            date any such draft, charge or expense is paid by the Issuer until
            payment in full by the Borrowers at the Revolving Floating Rate.

            If the Borrowers fail to pay to the Lender promptly the amount of
            their Obligation of Reimbursement in accordance with the terms
            hereof and the L/C Application pursuant to which such Letter of
            Credit was issued, the Lender is hereby irrevocably authorized and
            directed, in its sole discretion, to make a Revolving Advance in an
            amount sufficient to discharge the Obligation of Reimbursement,
            including all interest accrued thereon but unpaid at the time of
            such Revolving Advance, and such Revolving Advance shall be
            evidenced by the Revolving Note and shall bear interest as provided
            in Section 2.4 hereof."

            "Section 2.15 Special Account. If a plan of reorganization is
      confirmed, if the Lender terminates this Credit Facility pursuant to
      Section 2.7 or this Credit Facility is otherwise terminated for any reason
      whatsoever, while any Letter of Credit is outstanding, the Borrowers shall
      thereupon pay the Lender in immediately available funds for deposit in the
      Special Account an amount equal to the maximum aggregate amount available
      to be drawn under all Letters of Credit then outstanding, assuming
      compliance with all conditions for drawing thereunder. The Special Account
      shall be maintained for the Lender by any financial institution acceptable
      to the Lender. Any interest earned on amounts deposited in the Special
      Account shall be credited to the Special Account. Amounts on deposit in
      the Special Account may be applied by the Lender at any time or from time
      to time to the Borrowers' Obligation of Reimbursement or any other
      Obligations, in the Lender's sole discretion, and shall not be subject to
      withdrawal by the Borrowers so long as the Lender maintains a security

                                     - 5 -

<PAGE>   6

      interest therein. The Lender agrees to transfer any balance in the Special
      Account to the Borrowers at such time as the Lender is required to release
      its security interest in the Special Account under applicable law."

            "Section 2.16 Obligations Absolute. The obligations of the Borrowers
      arising under Section 2.14 shall be absolute, unconditional and
      irrevocable, and shall be paid strictly in accordance with the terms of
      this Agreement, under all circumstances whatsoever, including (without
      limitation) the following circumstances:

                  (a) any lack of validity or enforceability of any Letter of
            Credit or any other agreement or instrument relating to any Letter
            of Credit (collectively the "Related Documents");

                  (b) any amendment or waiver of or any consent to departure
            from all or any of the Related Documents;

                  (c) the existence of any claim, setoff, defense or other right
            which the Borrowers may have at any time, against any beneficiary or
            any transferee of any Letter of Credit (or any persons or entities
            for whom any such beneficiary or any such transferee may be acting),
            or other person or entity, whether in connection with this
            Agreement, the transactions contemplated herein or in the Related
            Documents or any unrelated transactions;

                  (d) any statement or any other document presented under any
            Letter of Credit proving to be forged, fraudulent, invalid or
            insufficient in any respect or any statement therein being untrue or
            inaccurate in any respect whatsoever;

                  (e) payment by or on behalf of the Issuer or the Lender under
            any Letter of Credit against presentation of a draft or certificate
            which does not strictly comply with the terms of such Letter of
            Credit; or

                  (f) any other circumstance or happening whatsoever, whether or
            not similar to any of the foregoing."

            6. Pledge of Special Account and Collateral Account. The following
new Section 3.8 is added at the end of Article III:

            "Section 3.8 Security Interest in Special Account. Each Borrower
      hereby pledges, and grants to the Lender a security interest in, all funds
      held in the Special Account from time to time and all proceeds thereof, as
      security for the payment of all Obligations."

            7. Conditions Precedent to Each Advance and Each Letter of Credit.
Section 4.2 of the Credit Agreement is amended to read as follows:

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<PAGE>   7

            "Section 4.2 Conditions Precedent to the Lender's Willingness to
      Consider Making All Advances and Causing All Letters of Credit to be
      Issued. The Lenders obligation to make each Advance or issue any Letter of
      Credit shall be subject to the further conditions that on such date:

                  (a) the representations and warranties contained in Article V
            hereof are correct on and as of such date as though made on and as
            of such date, except to the extent that such representations and
            warranties relate solely to an earlier date;

                  (b) no event has occurred and is continuing, or would result
            from such Advance or the issuance of such Letter of Credit, as the
            case may be, which constitutes a Default or an Event of Default; and

                  (a) no Bankruptcy Court order is entered (i) authorizing the
            Borrowers to obtain financing or credit pursuant to section 364 of
            the Bankruptcy Code from any Person other than the Lender secured by
            a security interest or a Superpriority Claim unless such security
            interest and administrative claim are junior to the Security
            Interest and the Lender's Superpriority Claim, as the case may be or
            will be paid off from the Initial Advance; or (ii) providing
            adequate protection to any Person under sections 361 through 364 of
            the Bankruptcy Code by granting a security interest in any of the
            Collateral unless such security interest is junior to the Security
            Interest save and except for the claims against Hewlett-Packard
            Company."

            8. Capital Expenditures. Section 7.13 of the Credit Agreement is
amended to read as follows:

            "Section 7.13 Capital Expenditures. The Borrowers will not incur or
      contract to incur, as of each fiscal year-to-date period described below,
      Capital Expenditures of more than the aggregate amount set forth opposite
      such period:

<TABLE>
<CAPTION>

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

                      Fiscal Year-to-Date                  Maximum
                      -------------------                  -------
                        Period Ending              Capital Expenditures
                        -------------              --------------------
                    ---------------------------------------------------
                    <S>                            <C>
                         June 30, 1999                   $  512,500
                    ---------------------------------------------------

                      September 30, 1999                 $1,025,000
                    ---------------------------------------------------

                      December 31, 1999                  $1,537,500
                    ---------------------------------------------------

                        March 31, 2000                   $2,050,000
                    ---------------------------------------------------
</TABLE>

                                      - 7 -
<PAGE>   8

            9. Events of Default. Section 8.1 of the Credit Agreement is amended
to add the following new subsection 8.1(o) immediately thereafter:

            "(o) Failure to pay when due any amount specified in Section 2.14
      hereof relating to the Borrowers' Obligation of Reimbursement, or failure
      to pay immediately when due or upon termination of the Credit Facility any
      amounts required to be paid for deposit in the Special Account under
      Section 2.9 or 2.15 hereof."

            10. Rights and Remedies. Section 8.2 of the Credit Agreement is
amended to read as follows:

            "During any Default Period, the Lender may without further order of,
      or application to the Bankruptcy Court for an order granting relief from
      the automatic stay of Section 362 of the Bankruptcy Code, exercise any or
      all of the following rights and remedies:

                  (a) the Lender may, by notice to the Borrowers, declare the
            Commitment to be terminated, whereupon the same shall forthwith
            terminate;

                  (b) the Lender may, by notice to the Borrowers, declare the
            Obligations to be forthwith due and payable, whereupon all
            Obligations shall become and be forthwith due and payable, without
            presentment, notice of dishonor, protest or further notice of any
            kind, all of which the Borrowers hereby expressly waive;

                  (c) the Lender may, without notice to the Borrowers and
            without further action, apply any and all money owing by the Lender
            to the Borrowers to the payment of the Obligations;

                  (d) the Lender may exercise and enforce any and all rights and
            remedies available upon default to a secured party under the UCC,
            including, without limitation, the right to take possession of
            Collateral, or any evidence thereof, proceeding without judicial
            process or by judicial process (without a prior hearing or notice
            thereof, which the Borrowers hereby expressly waive) and the right
            to sell, lease or otherwise dispose of any or all of the Collateral,
            and, in connection therewith, the Borrowers will on demand assemble
            the Collateral and make it available to the Lender at a place to be
            designated by the Lender which is reasonably convenient to both
            parties;

                  (e) the Lender may make demand upon the Borrowers and,
            forthwith upon such demand, the Borrowers will pay to the Lender in
            immediately available funds for deposit in the Special Account
            pursuant to Sections 2.9 and 2.15 an amount equal to the maximum
            aggregate amount

                                     - 8 -

<PAGE>   9

            available to be drawn under all Letters of Credit then outstanding,
            assuming compliance with all conditions for drawing thereunder;

                  (f) the Lender may exercise and enforce its rights and
            remedies under the Loan Documents; and

                  (g) the Lender may exercise any other rights and remedies
            available to it by law or agreement.

      The Borrowers agree and admit that the occurrence of any Event of Default
      is sufficient cause for relief from the automatic stay under Section
      362(d)(1) of the Bankruptcy Code. If an Event of Default occurs, the
      Borrowers consent to entry of an Order terminating the automatic stay 3
      business days after the filing of an affidavit with the Bankruptcy Court
      by the Lender, or one of its attorneys, with service upon counsel for the
      Borrowers, setting forth the nature of the Default; provided, however,
      that if a Default under Section 8.1(e)(ii) occurs, the Lender must give
      notice of the Default to the trustee or examiner and request a hearing for
      relief from the stay based on the Default. The Borrowers shall have no
      defense, other than showing the alleged Default has not occurred."

            11. Waiver of Defaults. The Borrowers are in default of the
following provisions of the Credit Agreement (collectively, the "Defaults"):

            (a) Section 6.16 regarding the Borrowers' Minimum EBITDAR for the
      fiscal year ending March 31, 1999; and

            (b) Section 6.17 regarding the Borrowers' Minimum Net Income for the
      fiscal year ending March 31, 1999.

            The Lender hereby waives the Defaults specified in this Paragraph
11, but only with respect to the periods therein specified. This waiver shall be
effective only in the specific instance and for the specific purpose for which
it is given, and this waiver shall not entitle the Borrowers to any other or
further waiver in any similar or other circumstances.

            12. Amendment and Waiver Fee. Concurrent with the execution of this
Amendment by the Borrowers, the Borrowers shall pay the Lender an amendment and
waiver fee in the amount of $10,000. Such fee shall be deemed fully earned by
the execution of this Amendment by the Lender.

            13. Release of Lien on Xaar License. The Lender shall release its
security interest in the Xaar License by executing a partial release statement
in substantially the form of Exhibit A attached hereto.

                                     - 9 -
<PAGE>   10

            14. No Other Changes. Except as explicitly amended by this First
Amendment, all of the terms and conditions of the Credit Agreement shall remain
in full force and effect and shall apply to any Advance or Letter of Credit
thereunder.

            15. Conditions Precedent. This First Amendment shall be effective
upon receipt by the Lender of an executed original hereof, together with each of
the following, each in substance and form acceptable to the Lender in its sole
discretion:

            (a) A separate Certificate of each Borrowers' secretaries or
      assistant secretaries certifying as to (i) the resolutions of such
      Borrowers' board of directors and if required, shareholders, authorizing
      the execution and delivery of this First Amendment, (ii) the fact that the
      Articles of Incorporation and Bylaws of such Borrowers, which were
      certified and delivered to the Lender pursuant to the Certificate of such
      Borrowers' secretaries or assistant secretaries dated as of December 14,
      1998, continue in full force and effect and have not been amended or
      otherwise modified except as set forth in the Certificate to be delivered,
      and (iii) certifying that the officers and agents of such Borrowers' who
      have been certified to the Lender, pursuant to the Certificate of
      Authority of such Borrowers' secretaries or assistant secretaries dated as
      of December 14, 1998, as being authorized to sign and to act on behalf of
      such Borrowers continue to be so authorized or setting forth the sample
      signatures of such Borrowers' officers and agents authorized to execute
      and deliver this First Amendment and all other documents, agreements and
      certificates on behalf of the Borrowers.

            (b) A final order in form and substance satisfactory to the Lender,
      entered by the Bankruptcy Court after adequate notice of all parties
      entitled to be served, which, among other things, approves this First
      Amendment, authorizes the Borrowers to enter into this First Amendment and
      affirms that the senior lien in the Collateral and Superpriority Claim
      provided in the Credit Agreement applies to the Credit Agreement as
      amended hereby.

            (c) Such other matters as the Lender may require.

            16. Representations and Warranties. The Borrowers hereby represent
and warrant to the Lender as follows:

            (a) Each of the Borrowers has all requisite power and authority to
      execute this First Amendment and to perform all of its obligations
      hereunder, and this First Amendment has been duly executed and delivered
      by the Borrowers and constitutes the legal, valid and binding obligation
      of the Borrowers, enforceable in accordance with its terms.

            (b) The execution, delivery and performance by the Borrowers of this
      First Amendment have been duly authorized by all necessary corporate
      action and do not

                                     - 10 -
<PAGE>   11

      (i) require any authorization, consent or approval by any governmental
      department, commission, board, bureau, agency or instrumentality, domestic
      or foreign or any third party, except such authorization required by the
      Bankruptcy Court, (ii) violate any provision of any law, rule or
      regulation or of any order, writ, injunction or decree presently in
      effect, having applicability to any of the Borrowers, or the articles of
      incorporation or by-laws of the Borrowers, or (iii) result in a breach of
      or constitute a default under any indenture or loan or credit agreement or
      any other agreement, lease or instrument to which the Borrowers are a
      party or by which it or its properties may be bound or affected.

            (c) All of the representations and warranties contained in Article V
      of the Credit Agreement are correct on and as of the date hereof as though
      made on and as of such date, except to the extent that such
      representations and warranties relate solely to an earlier date.

            17. References. All references in the Credit Agreement to "this
Agreement" shall be deemed to refer to the Credit Agreement as amended hereby;
and any and all references in the Loan Documents to the Credit Agreement shall
be deemed to refer to the Credit Agreement as amended hereby.

            18. No Waiver. The execution of this First Amendment and acceptance
of any documents related hereto shall not be deemed to be a waiver of any
Default or Event of Default under the Credit Agreement or breach, default or
event of default under any Security Document or other document held by the
Lender, whether or not known to the Lender and whether or not existing on the
date of this First Amendment.

            19. Costs and Expenses. The Borrowers hereby reaffirm their
agreement under the Credit Agreement to pay or reimburse the Lender on demand
for all costs and expenses incurred by the Lender in connection with the Credit
Agreement, the Security Documents and all other documents contemplated thereby,
including without limitation all reasonable fees and disbursements of legal
counsel. Without limiting the generality of the foregoing, the Borrowers
specifically agree to pay all fees and disbursements of counsel to the Lender
for the services performed by such counsel in connection with the preparation of
this First Amendment and the documents and instruments incidental hereto. The
Borrowers hereby agree that the Lender may, at any time or from time to time in
its sole discretion and without further authorization by the Borrowers, make a
loan to the Borrowers under the Credit Agreement, or apply the proceeds of any
loan, for the purpose of paying any such fees, disbursements, costs and
expenses.

                                     - 11 -

<PAGE>   12

           20. Miscellaneous. This First Amendment may be executed in any
number of counterparts, each of which when so executed and delivered shall be
deemed an original and all of which counterparts, taken together, shall
constitute one and the same instrument.

           IN WITNESS WHEREOF, the parties hereto have caused this First
Amendment to be duly executed as of the day and year first above written.

WELLS FARGO BUSINESS CREDIT, INC.            NU-KOTE HOLDING, INC.

                                             By
                                               ---------------------------------
                                               Its
                                                  -----------------

By
  ----------------------------------
  Its Vice President

NU-KOTE INTERNATIONAL, INC.                  NU-KOTE IMPERIAL, LTD.

By                                           By
  ----------------------------------           ---------------------------------
  Its                                          Its
     ---------------                              -----------------

INTERNATIONAL COMMUNICATION                  FUTURE GRAPHICS, INC.
MATERIALS, INC.

By                                           By
  ----------------------------------           ---------------------------------
  Its                                          Its
     ---------------                              -----------------

 NU-KOTE LATIN AMERICA, INC.                 NU-KOTE IMAGING INTERNATIONAL, INC.

 By                                          By
   ---------------------------------           ---------------------------------
   Its                                         Its
      --------------                              -----------------

                                     - 12 -<PAGE>   1

                                                                  EXHIBIT 10.22

                               RETENTION AGREEMENT

         THIS RETENTION AGREEMENT is made and entered into as of June 10, 1999,
by and between NU-KOTE HOLDING, INC., a Delaware corporation (hereinafter, the
"Company"), and C. Ronald Baiocchi (the "Employee").

                              W I T N E S S E T H:

         WHEREAS, the Company and Employee entered into a certain retention
agreement on or around May 1, 1998 (the "Old Agreement"); and

         WHEREAS, the Company is presently in the process of reorganizing (the
"Reorganization") under Chapter 11 of the United States Bankruptcy Code (the
"Code"); and

         WHEREAS, pursuant to the provisions set forth in the Code, the Company
has the right to reject the Old Agreement, and notwithstanding such right of
rejection, the Company is willing to retain Employee as an employee until such
time as the Company determines the services of Employee are no longer required
and Employee desires to remain employed by the Company during such time and the
Employee has provided valuable services to the Company in connection with the
Chapter 11 filing;

         NOW, THEREFORE, for the reasons set forth, in consideration of the
mutual promises, covenants and agreements made herein, the receipt and
sufficiency of which are hereby acknowledged, the parties, intending to be
legally bound hereby, agree as follows:

         1. Retention. The Company hereby retains Employee in the position of
Vice President/General Manager North American Operations and Employee hereby
accepts said retention by the Company on the terms and conditions specified
herein and subject specifically to approval by the Bankruptcy Court.

         2. Term. The term of this Agreement shall commence on the date hereof
and, unless earlier terminated in accordance with the provisions set forth
herein below, shall expire on the earlier of (i) the date on which a Chapter 11
Plan for the Company is confirmed by the U.S. Bankruptcy Court for the Middle
District of Tennessee; or (ii) the sale of all or a substantial portion of the
Company's assets under ss. 363 of the Bankruptcy Code ("Period of Employment").
Notwithstanding anything to the contrary in this Section 2, the provisions of
Section 7 will survive the expiration or earlier termination of this Agreement.
In the event Employee and the Company desire to maintain an employment
relationship following the expiration of the Period of Employment, such
employment relationship shall be "at will" unless further agreements are made in
writing between the Employee and the Company.

         3. Duties of Employee. Employee shall perform those duties which are
assigned to him/her by the chief executive officer of the Company and which are
commensurate with the Employee's position. Employee hereby represents that
his/her employment hereunder and

RETENTION AGREEMENT - PAGE 1

<PAGE>   2

compliance by him/her with the terms and conditions of this Agreement will not
conflict with or result in the breach of any agreement to which he/she is a
party or by which he/she may be bound. Employee agrees to devote his/her full
time, attention and skill to his/her duties hereunder.

      4. Compensation.

            (a) As compensation for the duties and services performed by
      Employee, the Company will pay Employee a monthly base salary at the rate
      in effect on the date of this Agreement, subject to federal and state
      withholding allowances and in accordance with the Company's standard
      payroll practices.

            (b) In addition, the Company acknowledges that Employee is
      performing his/her job at a time when the Company's financial situation is
      precarious and that Employee has other employment opportunities which
      he/she has been asked to forego. Thus, the Company agrees that, in
      addition to, and without limitation of, any other compensation
      contemplated hereby, Employee shall receive upon the expiration of the
      Period of Employment a cash bonus in the lump sum amount of Two Hundred
      Twenty-Five Thousand Dollars and No/100ths ($225,000.00), subject to
      applicable state and federal withholding allowances (the "Retention
      Payment"). This Retention Payment shall be earned and payable, as a
      post-petition administrative expense, in the next regular payroll cycle of
      the Company following expiration of the Period of Employment, such
      expiration being defined in Section 2.

            (c) Employee shall be entitled to receive this Retention Payment so
      long as the Employee is employed by the Company at the time the Period of
      Employment expires as defined in Section 2 herein. Notwithstanding the
      preceding provisions of this Section 4 should the Company terminate this
      Agreement without cause, then the Retention Payment shall be payable
      immediately as a post-petition administrative expense. However, if this
      Agreement is terminated prior to the expiration of the Period of
      Employment for cause by the Company or without cause by the Employee no
      Retention Payment shall be payable.

      5. Benefits. Employee shall also be entitled to participate in all benefit
plans and programs that are available to the Employee as of the date of this
Agreement. Additionally, the Employee shall be entitled to receive all benefits
which accrue through the date of termination of the Employee's employment with
the Company.

      6. Termination.

            (a) By the Company. The Company shall have the right at any time, by
      written notice to the Employee to terminate this Agreement, if one of the
      following events occurs:

                (i)   Employee's conviction in a court of law of any crime or
                      offense involving misuse or misappropriation of money or
                      other property of the Company; or

RETENTION AGREEMENT - PAGE 2

<PAGE>   3

                (ii)  Employee's willful failure or refusal to perform
                      specific directives of the chief executive officer of
                      the Company, which directives are consistent with the
                      scope and nature of Employee's duties and responsibilities
                      as described in this Agreement and which are not remedied
                      by the Employee within thirty (30) days after notice to
                      the Employee, or the commission of any intentional tort
                      by the Employee against the Company, or any breach by
                      Employee of the covenants set forth in Section 7 of this
                      Agreement; or

                (iii) any action of dishonesty or disloyalty by Employee or
                      any act involving moral turpitude of the Employee which
                      materially adversely affect the business of the Company;
                      or

                (iv)  the inability of Employee to perform his/her duties
                      hereunder for a period of thirty (30) consecutive days
                      (or sixty (60) total days in any ninety (90) day period)
                      by reason of illness or mental or physical disability;
                      or

                (v)   any statements, observations, or opinions or communication
                      of information (whether oral or written) made by or
                      caused to be made by the Employee that disparages or is
                      likely in any way to harm the reputation of the Company;
                      or

                (vi)  Employee's death.

For purposes of this Section, it is understood and agreed that good faith errors
in judgment made by the Employee shall not constitute grounds for termination
for cause hereunder. Notwithstanding the above, it is the intent of the Company
at all times to comply with the Americans With Disabilities Act, the Family and
Medical Leave Act and any other applicable federal and state employment laws. In
the case of termination under this Section 6(a), all obligations of the parties
under this Agreement shall cease, except for the Company's obligations under
Sections 4(a) and 5 herein through the date of the Employee's separation and
Employee's obligations under Section 7 hereof.

            (b) By Employee. This Agreement shall be terminable without cause by
      Employee upon two (2) weeks written notice to the Company. This Agreement
      shall be terminable by Employee for cause upon thirty (30) days written
      notice to the Company, if the Company willfully breaches any material
      terms of this Agreement and provided such breach has not been cured by the
      Company within such thirty (30) day period. In the case of termination
      under this Section 6(b), all obligations of the parties in this Agreement
      shall cease, except for Employee's obligations under Section 7 and, unless
      the termination by the Employee is without cause, Employer's obligation to
      pay the Retention Payment.

      7. Confidential Information. In consideration of the covenants of the
Company contained herein, Employee agrees as follows:

RETENTION AGREEMENT - PAGE 3

<PAGE>   4

            (a) Employee hereby agrees and acknowledges that he/she has had
      access to or is aware of certain confidential, restricted and/or
      proprietary information concerning operation by the Company's business
      (the "Business"). Employee hereby undertakes and agrees that he/she shall
      have a duty to the Company to protect such information from use or
      disclosure.

            (b) For the purposes of this Section 7, the following definitions
      shall apply:

                (i)   "Trade Secret" as related to the Business, shall mean
                      any specialized technical information or data relating
                      to (A) the manufacture and distribution of impact and
                      non-impact imaging supplies for office and home printing
                      devices (including the manufacture and distribution of
                      typewriter and printer ribbons, thermal fax ribbons,
                      cartridges and toner for laser printers, facsimile
                      machines and copiers, cartridges and ink for ink jet
                      printers, specialty papers, calculator ink rolls, and
                      carbon paper; (B) marketing strategy or plans of the
                      Company; (C) proprietary computer software; and (D)
                      terms of contracts with suppliers, employees and
                      principal customers of the Company which are not generally
                      known to the competitors of the Company.

                (ii)  "Confidential Information," as related to the Business,
                      shall mean any data or information, other than Trade
                      Secrets, which is material to the Company or its
                      affiliates and not generally known by the public.
                      Confidential Information shall include, without
                      limitation, any information pertaining to the business
                      opportunities of the Company, the details of this
                      Agreement, and the business plans, financial statements
                      and projections of the Company.

            (c) Employee shall not, without the prior written consent of the
      Company, use or disclose, or negligently permit any unauthorized person
      who is not an employee of the Company to use, disclose, or gain access to,
      any Trade Secrets or Confidential Information; provided, however, Employee
      shall be permitted, and this Agreement shall constitute written consent of
      the Company, to use Confidential Information, and to disclose such
      Confidential Information to his/her advisors (including specifically,
      without limitation, attorneys, accountants, bankers, and others) for the
      purposes of assessing the viability of and preparing a plan to acquire a
      portion of the assets of the Company.

            (d) Employee hereby agrees to deliver to, or maintain on behalf of,
      the Company and its affiliates all memoranda, notes, records, drawings,
      manuals or other documents, including all copies of such materials,
      containing Trade Secrets or Confidential Information, whether made or
      compiled by Employee or furnished to him/her from any source by virtue

RETENTION AGREEMENT - PAGE 4

<PAGE>   5

         of his/her relationship with the Company or its affiliates. All such
         memoranda, notes, records, drawings, manuals, other documents and
         other materials shall be delivered to the Company by the Employee
         upon termination of the Employee's employment with the Company.

         8. Assignments; Successors and Assigns. The rights and obligations of
Employee hereunder are not assignable or delegable and any prohibited assignment
or delegation will be null and void. The Company may assign and delegate this
Agreement to a successor in interest to the Company's business. Any such
assignment shall expressly include the obligations herein and shall not relieve
the Company of same. The provisions hereof shall inure to the benefit of and be
binding upon the permitted successors and assigns of the parties hereto.

         9. Governing Law. This Agreement shall be interpreted under, subject to
and governed by the substantive laws of the State of Tennessee, without giving
effect to provisions thereof regarding conflict of laws, and all questions
concerning its validity, construction, and administration shall be determined in
accordance thereby.

         10. Counterparts. This Agreement may be executed simultaneously in any
number of counterparts, each of which will be deemed an original but all of
which will together constitute one and same instrument.

         11. Invalidity. The invalidity or unenforceability of any provision of
this Agreement shall not affect any other provision hereof, and this Agreement
shall be construed in all respects as if such invalid or unenforceable provision
was omitted. Furthermore, in lieu of such illegal, invalid, or unenforceable
provision there shall be added automatically as a part of this Agreement a
provision as similar in terms to such illegal, invalid, or unenforceable
provision as may be possible and be legal, valid and enforceable.

         12. Exclusiveness. This Agreement constitutes the entire understanding
and agreement between the parties with respect to the retention by the Company
of Employee and supersedes any and all other agreements, oral or written,
between the parties, including but not limited to the Old Agreement. To the
extent the Employee has a claim arising out of the Company's rejection of the
Old Agreement, such claim is waived.

         13. Modification. This Agreement may not be modified or amended except
in writing signed by the parties. No term or condition of this Agreement will be
deemed to have been waived except in writing by the party charged with waiver. A
waiver shall operate only as to the specific term or condition waived and will
not constitute a waiver for the future or act on anything other than that which
is specifically waived.

         14. Notices. All notices, requests, consents and other communications
hereunder shall be in writing and shall be deemed to have been made when
delivered or mailed first-class postage prepaid by registered mail, return
receipt requested, or when delivered if by hand, overnight delivery service or
confirmed facsimile transmission, to the following:

RETENTION AGREEMENT - PAGE 5

<PAGE>   6

            (a) If to the Company, at 200 Beasley Drive, P.O. Box 3000,
      Franklin, Tennessee, 37068, Attention: President and Chief Executive
      Officer, or at such other address as may have been furnished to the
      Employee by the Company in writing; or

            (b) If to the Employee, at the address stated below, or such other
      address as may have been furnished to the Company by Employee in writing.

      15. Consolidation, Merger or Sale of Assets. Nothing in this Agreement
shall preclude the Company from consolidating or merging in to or with, or
transferring all or substantially all of its assets to, another corporation
which assumes this Agreement and all obligations and undertaking of the Company
hereunder. No such consolidation, merger or transfer shall affect the rights of
the Employee or the obligations of the Company hereunder.

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

                                         "COMPANY"

                                          NU-KOTE HOLDING, INC.

                                          By:
                                             -----------------------------------
                                               Patrick E. Howard, President

                                          "EMPLOYEE"

                                          --------------------------------------
                                          C. Ronald Baiocchi

                                          Employee's Principal Address:

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

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

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

RETENTION AGREEMENT - PAGE 6

<PAGE>   7

                               RETENTION AGREEMENT

         THIS RETENTION AGREEMENT is made and entered into as of June 10, 1999,
by and between NU-KOTE HOLDING, INC., a Delaware corporation (hereinafter, the
"Company"), and Phillip L. Theodore (the "Employee").

                              W I T N E S S E T H:

         WHEREAS, the Company and Employee entered into a certain retention
agreement on or around May 1, 1998 (the "Old Agreement"); and

         WHEREAS, the Company is presently in the process of reorganizing (the
"Reorganization") under Chapter 11 of the United States Bankruptcy Code (the
"Code"); and

         WHEREAS, pursuant to the provisions set forth in the Code, the Company
has the right to reject the Old Agreement, and notwithstanding such right of
rejection, the Company is willing to retain Employee as an employee until such
time as the Company determines the services of Employee are no longer required
and Employee desires to remain employed by the Company during such time and the
Employee has provided valuable services to the Company in connection with the
Chapter 11 filing;

         NOW, THEREFORE, for the reasons set forth, in consideration of the
mutual promises, covenants and agreements made herein, the receipt and
sufficiency of which are hereby acknowledged, the parties, intending to be
legally bound hereby, agree as follows:

         16. Retention. The Company hereby retains Employee in the position of
Senior Vice President/Chief Financial Officer and Employee hereby accepts said
retention by the Company on the terms and conditions specified herein and
subject specifically to approval by the Bankruptcy Court.

         17. Term. The term of this Agreement shall commence on the date hereof
and, unless earlier terminated in accordance with the provisions set forth
herein below, shall expire on the earlier of (i) the date on which a Chapter 11
Plan for the Company is confirmed by the U.S. Bankruptcy Court for the Middle
District of Tennessee; or (ii) the sale of all or a substantial portion of the
Company's assets under ss. 363 of the Bankruptcy Code ("Period of Employment").
Notwithstanding anything to the contrary in this Section 2, the provisions of
Section 7 will survive the expiration or earlier termination of this Agreement.
In the event Employee and the Company desire to maintain an employment
relationship following the expiration of the Period of Employment, such
employment relationship shall be "at will" unless further agreements are made in
writing between the Employee and the Company.

         18. Duties of Employee. Employee shall perform those duties which are
assigned to him/her by the chief executive officer of the Company and which are
commensurate with the Employee's position. Employee hereby represents that
his/her employment hereunder and

RETENTION AGREEMENT - PAGE 1

<PAGE>   8

compliance by him/her with the terms and conditions of this Agreement will not
conflict with or result in the breach of any agreement to which he/she is a
party or by which he/she may be bound. Employee agrees to devote his/her full
time, attention and skill to his/her duties hereunder.

      19. Compensation.

            (a) As compensation for the duties and services performed by
      Employee, the Company will pay Employee a monthly base salary at the rate
      in effect on the date of this Agreement, subject to federal and state
      withholding allowances and in accordance with the Company's standard
      payroll practices.

            (b) In addition, the Company acknowledges that Employee is
      performing his/her job at a time when the Company's financial situation is
      precarious and that Employee has other employment opportunities which
      he/she has been asked to forego. Thus, the Company agrees that, in
      addition to, and without limitation of, any other compensation
      contemplated hereby, Employee shall receive upon the expiration of the
      Period of Employment a cash bonus in the lump sum amount of One Hundred
      Sixty Thousand Dollars and No/100ths ($160,000.00), subject to applicable
      state and federal withholding allowances (the "Retention Payment"). This
      Retention Payment shall be earned and payable, as a post-petition
      administrative expense, in the next regular payroll cycle of the Company
      following expiration of the Period of Employment, such expiration being
      defined in Section 2.

            (c) Employee shall be entitled to receive this Retention Payment so
      long as the Employee is employed by the Company at the time the Period of
      Employment expires as defined in Section 2 herein. Notwithstanding the
      preceding provisions of this Section 4 should the Company terminate this
      Agreement without cause, then the Retention Payment shall be payable
      immediately as a post-petition administrative expense. However, if this
      Agreement is terminated prior to the expiration of the Period of
      Employment for cause by the Company or without cause by the Employee no
      Retention Payment shall be payable.

      20. Benefits. Employee shall also be entitled to participate in all
benefit plans and programs that are available to the Employee as of the date of
this Agreement. Additionally, the Employee shall be entitled to receive all
benefits which accrue through the date of termination of the Employee's
employment with the Company.

      21. Termination.

            (a) By the Company. The Company shall have the right at any time, by
      written notice to the Employee to terminate this Agreement, if one of the
      following events occurs:

                (i)   Employee's conviction in a court of law of any crime or
                      offense involving misuse or misappropriation of money or
                      other property of the Company; or

RETENTION AGREEMENT - PAGE 2

<PAGE>   9

                (ii)  Employee's willful failure or refusal to perform specific
                      directives of the chief executive officer of the Company,
                      which directives are consistent with the scope and nature
                      of Employee's duties and responsibilities as described
                      in this Agreement and which are not remedied by the
                      Employee within thirty (30) days after notice to the
                      Employee, or the commission of any intentional tort by the
                      Employee against the Company, or any breach by Employee
                      of the covenants set forth in Section 7 of this Agreement;
                      or

                (iii) any action of dishonesty or disloyalty by Employee or any
                      act involving moral turpitude of the Employee which
                      materially adversely affect the business of the Company;
                      or

                (iv)  the inability of Employee to perform his/her duties
                      hereunder for a period of thirty (30) consecutive days
                      (or sixty (60) total days in any ninety (90) day period)
                      by reason of illness or mental or physical disability; or

                (v)   any statements, observations, or opinions or communication
                      of information (whether oral or written) made by or caused
                      to be made by the Employee that disparages or is likely
                      in any way to harm the reputation of the Company; or

                (vi)  Employee's death.

For purposes of this Section, it is understood and agreed that good faith errors
in judgment made by the Employee shall not constitute grounds for termination
for cause hereunder. Notwithstanding the above, it is the intent of the Company
at all times to comply with the Americans With Disabilities Act, the Family and
Medical Leave Act and any other applicable federal and state employment laws. In
the case of termination under this Section 6(a), all obligations of the parties
under this Agreement shall cease, except for the Company's obligations under
Sections 4(a) and 5 herein through the date of the Employee's separation and
Employee's obligations under Section 7 hereof.

            (b) By Employee. This Agreement shall be terminable without cause by
      Employee upon two (2) weeks written notice to the Company. This Agreement
      shall be terminable by Employee for cause upon thirty (30) days written
      notice to the Company, if the Company willfully breaches any material
      terms of this Agreement and provided such breach has not been cured by the
      Company within such thirty (30) day period. In the case of termination
      under this Section 6(b), all obligations of the parties in this Agreement
      shall cease, except for Employee's obligations under Section 7 and, unless
      the termination by the Employee is without cause, Employer's obligation to
      pay the Retention Payment.

      22. Confidential Information. In consideration of the covenants of the
Company contained herein, Employee agrees as follows:

RETENTION AGREEMENT - PAGE 3

<PAGE>   10

            (a) Employee hereby agrees and acknowledges that he/she has had
      access to or is aware of certain confidential, restricted and/or
      proprietary information concerning operation by the Company's business
      (the "Business"). Employee hereby undertakes and agrees that he/she shall
      have a duty to the Company to protect such information from use or
      disclosure.

            (b) For the purposes of this Section 7, the following definitions
      shall apply:

                (i)   "Trade Secret" as related to the Business, shall mean
                      any specialized technical information or data relating
                      to (A) the manufacture and distribution of impact and
                      non-impact imaging supplies for office and home printing
                      devices (including the manufacture and distribution of
                      typewriter and printer ribbons, thermal fax ribbons,
                      cartridges and toner for laser printers, facsimile
                      machines and copiers, cartridges and ink for ink jet
                      printers, specialty papers, calculator ink rolls, and
                      carbon paper; (B) marketing strategy or plans of the
                      Company; (C) proprietary computer software; and (D) terms
                      of contracts with suppliers, employees and principal
                      customers of the Company which are not generally known to
                      the competitors of the Company.

                (ii)  "Confidential Information," as related to the Business,
                      shall mean any data or information, other than Trade
                      Secrets, which is material to the Company or its
                      affiliates and not generally known by the public.
                      Confidential Information shall include, without
                      limitation, any information pertaining to the business
                      opportunities of the Company, the details of this
                      Agreement, and the business plans, financial statements
                      and projections of the Company.

            (c) Employee shall not, without the prior written consent of the
      Company, use or disclose, or negligently permit any unauthorized person
      who is not an employee of the Company to use, disclose, or gain access to,
      any Trade Secrets or Confidential Information; provided, however, Employee
      shall be permitted, and this Agreement shall constitute written consent of
      the Company, to use Confidential Information, and to disclose such
      Confidential Information to his/her advisors (including specifically,
      without limitation, attorneys, accountants, bankers, and others) for the
      purposes of assessing the viability of and preparing a plan to acquire a
      portion of the assets of the Company.

            (d) Employee hereby agrees to deliver to, or maintain on behalf of,
      the Company and its affiliates all memoranda, notes, records, drawings,
      manuals or other documents, including all copies of such materials,
      containing Trade Secrets or Confidential Information, whether made or
      compiled by Employee or furnished to him/her from any source by virtue

RETENTION AGREEMENT - PAGE 4

<PAGE>   11

         of his/her relationship with the Company or its affiliates. All such
         memoranda, notes, records, drawings, manuals, other documents and other
         materials shall be delivered to the Company by the Employee upon
         termination of the Employee's employment with the Company.

         23. Assignments; Successors and Assigns. The rights and obligations of
Employee hereunder are not assignable or delegable and any prohibited assignment
or delegation will be null and void. The Company may assign and delegate this
Agreement to a successor in interest to the Company's business. Any such
assignment shall expressly include the obligations herein and shall not relieve
the Company of same. The provisions hereof shall inure to the benefit of and be
binding upon the permitted successors and assigns of the parties hereto.

         24. Governing Law. This Agreement shall be interpreted under, subject
to and governed by the substantive laws of the State of Tennessee, without
giving effect to provisions thereof regarding conflict of laws, and all
questions concerning its validity, construction, and administration shall be
determined in accordance thereby.

         25. Counterparts. This Agreement may be executed simultaneously in any
number of counterparts, each of which will be deemed an original but all of
which will together constitute one and same instrument.

         26. Invalidity. The invalidity or unenforceability of any provision of
this Agreement shall not affect any other provision hereof, and this Agreement
shall be construed in all respects as if such invalid or unenforceable provision
was omitted. Furthermore, in lieu of such illegal, invalid, or unenforceable
provision there shall be added automatically as a part of this Agreement a
provision as similar in terms to such illegal, invalid, or unenforceable
provision as may be possible and be legal, valid and enforceable.

         27. Exclusiveness. This Agreement constitutes the entire understanding
and agreement between the parties with respect to the retention by the Company
of Employee and supersedes any and all other agreements, oral or written,
between the parties, including but not limited to the Old Agreement. To the
extent the Employee has a claim arising out of the Company's rejection of the
Old Agreement, such claim is waived.

         28. Modification. This Agreement may not be modified or amended except
in writing signed by the parties. No term or condition of this Agreement will be
deemed to have been waived except in writing by the party charged with waiver. A
waiver shall operate only as to the specific term or condition waived and will
not constitute a waiver for the future or act on anything other than that which
is specifically waived.

         29. Notices. All notices, requests, consents and other communications
hereunder shall be in writing and shall be deemed to have been made when
delivered or mailed first-class postage prepaid by registered mail, return
receipt requested, or when delivered if by hand, overnight delivery service or
confirmed facsimile transmission, to the following:

RETENTION AGREEMENT - PAGE 5

<PAGE>   12

            (a) If to the Company, at 200 Beasley Drive, P.O. Box 3000,
      Franklin, Tennessee, 37068, Attention: President and Chief Executive
      Officer, or at such other address as may have been furnished to the
      Employee by the Company in writing; or

            (b) If to the Employee, at the address stated below, or such other
      address as may have been furnished to the Company by Employee in writing.

      30. Consolidation, Merger or Sale of Assets. Nothing in this Agreement
shall preclude the Company from consolidating or merging in to or with, or
transferring all or substantially all of its assets to, another corporation
which assumes this Agreement and all obligations and undertaking of the Company
hereunder. No such consolidation, merger or transfer shall affect the rights of
the Employee or the obligations of the Company hereunder.

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

                                          "COMPANY"

                                          NU-KOTE HOLDING, INC.

                                          By:
                                             -----------------------------------
                                                Patrick E. Howard, President

                                          "EMPLOYEE"

                                          Phillip L. Theodore

                                          Employee's Principal Address:

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

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

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

RETENTION AGREEMENT - PAGE 6

<PAGE>   13

                               RETENTION AGREEMENT

         THIS RETENTION AGREEMENT is made and entered into as of June 10, 1999,
by and between NU-KOTE HOLDING, INC., a Delaware corporation (hereinafter, the
"Company"), and Ian Elliott (the "Employee").

                              W I T N E S S E T H:

         WHEREAS, the Company and Employee entered into a certain retention
agreement on or around May 1, 1998 (the "Old Agreement"); and

         WHEREAS, the Company is presently in the process of reorganizing (the
"Reorganization") under Chapter 11 of the United States Bankruptcy Code (the
"Code"); and

         WHEREAS, pursuant to the provisions set forth in the Code, the Company
has the right to reject the Old Agreement, and notwithstanding such right of
rejection, the Company is willing to retain Employee as an employee until such
time as the Company determines the services of Employee are no longer required
and Employee desires to remain employed by the Company during such time and the
Employee has provided valuable services to the Company in connection with the
Chapter 11 filing;

         NOW, THEREFORE, for the reasons set forth, in consideration of the
mutual promises, covenants and agreements made herein, the receipt and
sufficiency of which are hereby acknowledged, the parties, intending to be
legally bound hereby, agree as follows:

         31. Retention. The Company hereby retains Employee in the position of
Vice President - Product Development and Employee hereby accepts said retention
by the Company on the terms and conditions specified herein and subject
specifically to approval by the Bankruptcy Court.

         32. Term. The term of this Agreement shall commence on the date hereof
and, unless earlier terminated in accordance with the provisions set forth
herein below, shall expire on the earlier of (i) the date on which a Chapter 11
Plan for the Company is confirmed by the U.S. Bankruptcy Court for the Middle
District of Tennessee; or (ii) the sale of all or a substantial portion of the
Company's assets under ss. 363 of the Bankruptcy Code ("Period of Employment").
Notwithstanding anything to the contrary in this Section 2, the provisions of
Section 7 will survive the expiration or earlier termination of this Agreement.
In the event Employee and the Company desire to maintain an employment
relationship following the expiration of the Period of Employment, such
employment relationship shall be "at will" unless further agreements are made in
writing between the Employee and the Company.

         33. Duties of Employee. Employee shall perform those duties which are
assigned to him/her by the chief executive officer of the Company and which are
commensurate with the Employee's position. Employee hereby represents that
his/her employment hereunder and compliance by him/her with the terms and
conditions of this Agreement will not conflict with or

RETENTION AGREEMENT - PAGE 1

<PAGE>   14

result in the breach of any agreement to which he/she is a party or by which
he/she may be bound. Employee agrees to devote his/her full time, attention and
skill to his/her duties hereunder.

      34. Compensation.

            (a) As compensation for the duties and services performed by
      Employee, the Company will pay Employee a monthly base salary at the rate
      in effect on the date of this Agreement, subject to federal and state
      withholding allowances and in accordance with the Company's standard
      payroll practices.

            (b) In addition, the Company acknowledges that Employee is
      performing his/her job at a time when the Company's financial situation is
      precarious and that Employee has other employment opportunities which
      he/she has been asked to forego. Thus, the Company agrees that, in
      addition to, and without limitation of, any other compensation
      contemplated hereby, Employee shall receive upon the expiration of the
      Period of Employment a cash bonus in the lump sum amount of One Hundred
      Five Thousand Dollars and No/100ths ($105,000.00), subject to applicable
      state and federal withholding allowances (the "Retention Payment"). This
      Retention Payment shall be earned and payable, as a post-petition
      administrative expense, in the next regular payroll cycle of the Company
      following expiration of the Period of Employment, such expiration being
      defined in Section 2.

            (c) Employee shall be entitled to receive this Retention Payment so
      long as the Employee is employed by the Company at the time the Period of
      Employment expires as defined in Section 2 herein. Notwithstanding the
      preceding provisions of this Section 4 should the Company terminate this
      Agreement without cause, then the Retention Payment shall be payable
      immediately as a post-petition administrative expense. However, if this
      Agreement is terminated prior to the expiration of the Period of
      Employment for cause by the Company or without cause by the Employee no
      Retention Payment shall be payable.

      35. Benefits. Employee shall also be entitled to participate in all
benefit plans and programs that are available to the Employee as of the date of
this Agreement. Additionally, the Employee shall be entitled to receive all
benefits which accrue through the date of termination of the Employee's
employment with the Company.

      36. Termination.

            (a) By the Company. The Company shall have the right at any time, by
      written notice to the Employee to terminate this Agreement, if one of the
      following events occurs:

                (i)   Employee's conviction in a court of law of any crime or
                      offense involving misuse or misappropriation of money or
                      other property of the Company; or

                (ii)  Employee's willful failure or refusal to perform specific
                      directives of the chief executive officer of the Company,

RETENTION AGREEMENT - PAGE 2

<PAGE>   15

                      which directives are consistent with the scope and nature
                      of Employee's duties and responsibilities as described
                      in this Agreement and which are not remedied by the
                      Employee within thirty (30) days after notice to the
                      Employee, or the commission of any intentional tort by the
                      Employee against the Company, or any breach by Employee
                      of the covenants set forth in Section 7 of this Agreement;
                      or

                (iii) any action of dishonesty or disloyalty by Employee or
                      any act involving moral turpitude of the Employee which
                      materially adversely affect the business of the Company;
                      or

                (iv)  the inability of Employee to perform his/her duties
                      hereunder for a period of thirty (30) consecutive days
                      (or sixty (60) total days in any ninety (90) day period)
                      by reason of illness or mental or physical disability; or

                (v)   any statements, observations, or opinions or communication
                      of information (whether oral or written) made by or caused
                      to be made by the Employee that disparages or is likely
                      in any way to harm the reputation of the Company; or

                (vi)  Employee's death.

For purposes of this Section, it is understood and agreed that good faith errors
in judgment made by the Employee shall not constitute grounds for termination
for cause hereunder. Notwithstanding the above, it is the intent of the Company
at all times to comply with the Americans With Disabilities Act, the Family and
Medical Leave Act and any other applicable federal and state employment laws. In
the case of termination under this Section 6(a), all obligations of the parties
under this Agreement shall cease, except for the Company's obligations under
Sections 4(a) and 5 herein through the date of the Employee's separation and
Employee's obligations under Section 7 hereof.

            (b) By Employee. This Agreement shall be terminable without cause by
      Employee upon two (2) weeks written notice to the Company. This Agreement
      shall be terminable by Employee for cause upon thirty (30) days written
      notice to the Company, if the Company willfully breaches any material
      terms of this Agreement and provided such breach has not been cured by the
      Company within such thirty (30) day period. In the case of termination
      under this Section 6(b), all obligations of the parties in this Agreement
      shall cease, except for Employee's obligations under Section 7 and, unless
      the termination by the Employee is without cause, Employer's obligation to
      pay the Retention Payment.

      37. Confidential Information. In consideration of the covenants of the
Company contained herein, Employee agrees as follows:

RETENTION AGREEMENT - PAGE 3

<PAGE>   16

            (a) Employee hereby agrees and acknowledges that he/she has had
      access to or is aware of certain confidential, restricted and/or
      proprietary information concerning operation by the Company's business
      (the "Business"). Employee hereby undertakes and agrees that he/she shall
      have a duty to the Company to protect such information from use or
      disclosure.

            (b) For the purposes of this Section 7, the following definitions
      shall apply:

                (i)   "Trade Secret" as related to the Business, shall mean
                      any specialized technical information or data relating to
                      (A) the manufacture and distribution of impact and
                      non-impact imaging supplies for office and home printing
                      devices (including the manufacture and distribution of
                      typewriter and printer ribbons, thermal fax ribbons,
                      cartridges and toner for laser printers, facsimile
                      machines and copiers, cartridges and ink for ink jet
                      printers, specialty papers, calculator ink rolls, and
                      carbon paper; (B) marketing strategy or plans of the
                      Company; (C) proprietary computer software; and (D) terms
                      of contracts with suppliers, employees and principal
                      customers of the Company which are not generally known
                      to the competitors of the Company.

                (ii)  "Confidential Information," as related to the Business,
                      shall mean any data or information, other than Trade
                      Secrets, which is material to the Company or its
                      affiliates and not generally known by the public.
                      Confidential Information shall include, without
                      limitation, any information pertaining to the business
                      opportunities of the Company, the details of this
                      Agreement, and the business plans, financial statements
                      and projections of the Company.

            (c) Employee shall not, without the prior written consent of the
      Company, use or disclose, or negligently permit any unauthorized person
      who is not an employee of the Company to use, disclose, or gain access to,
      any Trade Secrets or Confidential Information; provided, however, Employee
      shall be permitted, and this Agreement shall constitute written consent of
      the Company, to use Confidential Information, and to disclose such
      Confidential Information to his/her advisors (including specifically,
      without limitation, attorneys, accountants, bankers, and others) for the
      purposes of assessing the viability of and preparing a plan to acquire a
      portion of the assets of the Company.

            (d) Employee hereby agrees to deliver to, or maintain on behalf of,
      the Company and its affiliates all memoranda, notes, records, drawings,
      manuals or other documents, including all copies of such materials,
      containing Trade Secrets or Confidential Information, whether made or
      compiled by Employee or furnished to him/her from any source by virtue of
      his/her relationship with the Company or its affiliates. All such
      memoranda, notes,

RETENTION AGREEMENT - PAGE 4

<PAGE>   17
         records, drawings, manuals, other documents and other materials shall
         be delivered to the Company by the Employee upon termination of the
         Employee's employment with the Company.

         38. Assignments; Successors and Assigns. The rights and obligations of
Employee hereunder are not assignable or delegable and any prohibited assignment
or delegation will be null and void. The Company may assign and delegate this
Agreement to a successor in interest to the Company's business. Any such
assignment shall expressly include the obligations herein and shall not relieve
the Company of same. The provisions hereof shall inure to the benefit of and be
binding upon the permitted successors and assigns of the parties hereto.

         39. Governing Law. This Agreement shall be interpreted under, subject
to and governed by the substantive laws of the State of Tennessee, without
giving effect to provisions thereof regarding conflict of laws, and all
questions concerning its validity, construction, and administration shall be
determined in accordance thereby.

         40. Counterparts. This Agreement may be executed simultaneously in any
number of counterparts, each of which will be deemed an original but all of
which will together constitute one and same instrument.

         41. Invalidity. The invalidity or unenforceability of any provision of
this Agreement shall not affect any other provision hereof, and this Agreement
shall be construed in all respects as if such invalid or unenforceable provision
was omitted. Furthermore, in lieu of such illegal, invalid, or unenforceable
provision there shall be added automatically as a part of this Agreement a
provision as similar in terms to such illegal, invalid, or unenforceable
provision as may be possible and be legal, valid and enforceable.

         42. Exclusiveness. This Agreement constitutes the entire understanding
and agreement between the parties with respect to the retention by the Company
of Employee and supersedes any and all other agreements, oral or written,
between the parties, including but not limited to the Old Agreement. To the
extent the Employee has a claim arising out of the Company's rejection of the
Old Agreement, such claim is waived.

         43. Modification. This Agreement may not be modified or amended except
in writing signed by the parties. No term or condition of this Agreement will be
deemed to have been waived except in writing by the party charged with waiver. A
waiver shall operate only as to the specific term or condition waived and will
not constitute a waiver for the future or act on anything other than that which
is specifically waived.

         44. Notices. All notices, requests, consents and other communications
hereunder shall be in writing and shall be deemed to have been made when
delivered or mailed first-class postage prepaid by registered mail, return
receipt requested, or when delivered if by hand, overnight delivery service or
confirmed facsimile transmission, to the following:

RETENTION AGREEMENT - PAGE 5

<PAGE>   18

            (a) If to the Company, at 200 Beasley Drive, P.O. Box 3000,
      Franklin, Tennessee, 37068, Attention: President and Chief Executive
      Officer, or at such other address as may have been furnished to the
      Employee by the Company in writing; or

            (b) If to the Employee, at the address stated below, or such other
      address as may have been furnished to the Company by Employee in writing.

      45. Consolidation, Merger or Sale of Assets. Nothing in this Agreement
shall preclude the Company from consolidating or merging in to or with, or
transferring all or substantially all of its assets to, another corporation
which assumes this Agreement and all obligations and undertaking of the Company
hereunder. No such consolidation, merger or transfer shall affect the rights of
the Employee or the obligations of the Company hereunder.

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

                                      "COMPANY"

                                      NU-KOTE HOLDING, INC.

                                      By:
                                         ---------------------------------------
                                              Patrick E. Howard, President

                                      "EMPLOYEE"

                                      ------------------------------------------
                                      Ian Elliott

                                      Employee's Principal Address:

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

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

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

RETENTION AGREEMENT - PAGE 6

<PAGE>   19

                               RETENTION AGREEMENT

         THIS RETENTION AGREEMENT is made and entered into as of June 10, 1999,
by and between NU-KOTE HOLDING, INC., a Delaware corporation (hereinafter, the
"Company"), and Faxon Learner (the "Employee").

                              W I T N E S S E T H:

         WHEREAS, the Company and Employee entered into a certain retention
agreement on or around May 1, 1998 (the "Old Agreement"); and

         WHEREAS, the Company is presently in the process of reorganizing (the
"Reorganization") under Chapter 11 of the United States Bankruptcy Code (the
"Code"); and

         WHEREAS, pursuant to the provisions set forth in the Code, the Company
has the right to reject the Old Agreement, and notwithstanding such right of
rejection, the Company is willing to retain Employee as an employee until such
time as the Company determines the services of Employee are no longer required
and Employee desires to remain employed by the Company during such time and the
Employee has provided valuable services to the Company in connection with the
Chapter 11 filing;

         NOW, THEREFORE, for the reasons set forth, in consideration of the
mutual promises, covenants and agreements made herein, the receipt and
sufficiency of which are hereby acknowledged, the parties, intending to be
legally bound hereby, agree as follows:

         46. Retention. The Company hereby retains Employee in the position of
Vice President - Logistics and Employee hereby accepts said retention by the
Company on the terms and conditions specified herein and subject specifically to
approval by the Bankruptcy Court.

         47. Term. The term of this Agreement shall commence on the date hereof
and, unless earlier terminated in accordance with the provisions set forth
herein below, shall expire on the earlier of (i) the date on which a Chapter 11
Plan for the Company is confirmed by the U.S. Bankruptcy Court for the Middle
District of Tennessee; or (ii) the sale of all or a substantial portion of the
Company's assets under ss. 363 of the Bankruptcy Code ("Period of Employment").
Notwithstanding anything to the contrary in this Section 2, the provisions of
Section 7 will survive the expiration or earlier termination of this Agreement.
In the event Employee and the Company desire to maintain an employment
relationship following the expiration of the Period of Employment, such
employment relationship shall be "at will" unless further agreements are made in
writing between the Employee and the Company.

         48. Duties of Employee. Employee shall perform those duties which are
assigned to him/her by the chief executive officer of the Company and which are
commensurate with the Employee's position. Employee hereby represents that
his/her employment hereunder and compliance by him/her with the terms and
conditions of this Agreement will not conflict with or

RETENTION AGREEMENT - PAGE 1

<PAGE>   20

result in the breach of any agreement to which he/she is a party or by which
he/she may be bound. Employee agrees to devote his/her full time, attention and
skill to his/her duties hereunder.

      49. Compensation.

            (a) As compensation for the duties and services performed by
      Employee, the Company will pay Employee a monthly base salary at the rate
      in effect on the date of this Agreement, subject to federal and state
      withholding allowances and in accordance with the Company's standard
      payroll practices.

            (b) In addition, the Company acknowledges that Employee is
      performing his/her job at a time when the Company's financial situation is
      precarious and that Employee has other employment opportunities which
      he/she has been asked to forego. Thus, the Company agrees that, in
      addition to, and without limitation of, any other compensation
      contemplated hereby, Employee shall receive upon the expiration of the
      Period of Employment a cash bonus in the lump sum amount of Seventy-Five
      Thousand Dollars and No/100ths ($75,000.00), subject to applicable state
      and federal withholding allowances (the "Retention Payment"). This
      Retention Payment shall be earned and payable, as a post-petition
      administrative expense, in the next regular payroll cycle of the Company
      following expiration of the Period of Employment, such expiration being
      defined in Section 2.

            (c) Employee shall be entitled to receive this Retention Payment so
      long as the Employee is employed by the Company at the time the Period of
      Employment expires as defined in Section 2 herein. Notwithstanding the
      preceding provisions of this Section 4 should the Company terminate this
      Agreement without cause, then the Retention Payment shall be payable
      immediately as a post-petition administrative expense. However, if this
      Agreement is terminated prior to the expiration of the Period of
      Employment for cause by the Company or without cause by the Employee no
      Retention Payment shall be payable.

      50. Benefits. Employee shall also be entitled to participate in all
benefit plans and programs that are available to the Employee as of the date of
this Agreement. Additionally, the Employee shall be entitled to receive all
benefits which accrue through the date of termination of the Employee's
employment with the Company.

      51. Termination.

            (a) By the Company. The Company shall have the right at any time, by
      written notice to the Employee to terminate this Agreement, if one of the
      following events occurs:

                (i)   Employee's conviction in a court of law of any crime or
                      offense involving misuse or misappropriation of money or
                      other property of the Company; or

                (ii)  Employee's willful failure or refusal to perform specific
                      directives of the chief executive officer of the Company,

RETENTION AGREEMENT - PAGE 2

<PAGE>   21

                      which directives are consistent with the scope and nature
                      of Employee's duties and responsibilities as described
                      in this Agreement and which are not remedied by the
                      Employee within thirty (30) days after notice to the
                      Employee, or the commission of any intentional tort by the
                      Employee against the Company, or any breach by Employee
                      of the covenants set forth in Section 7 of this Agreement;
                      or

                (iii) any action of dishonesty or disloyalty by Employee or any
                      act involving moral turpitude of the Employee which
                      materially adversely affect the business of the Company;
                      or

                (iv)  the inability of Employee to perform his/her duties
                      hereunder for a period of thirty (30) consecutive days
                      (or sixty (60) total days in any ninety (90) day period)
                      by reason of illness or mental or physical disability; or

                (v)   any statements, observations, or opinions or communication
                      of information (whether oral or written) made by or caused
                      to be made by the Employee that disparages or is likely
                      in any way to harm the reputation of the Company; or

                (vi)  Employee's death.

For purposes of this Section, it is understood and agreed that good faith errors
in judgment made by the Employee shall not constitute grounds for termination
for cause hereunder. Notwithstanding the above, it is the intent of the Company
at all times to comply with the Americans With Disabilities Act, the Family and
Medical Leave Act and any other applicable federal and state employment laws. In
the case of termination under this Section 6(a), all obligations of the parties
under this Agreement shall cease, except for the Company's obligations under
Sections 4(a) and 5 herein through the date of the Employee's separation and
Employee's obligations under Section 7 hereof.

            (b) By Employee. This Agreement shall be terminable without cause by
      Employee upon two (2) weeks written notice to the Company. This Agreement
      shall be terminable by Employee for cause upon thirty (30) days written
      notice to the Company, if the Company willfully breaches any material
      terms of this Agreement and provided such breach has not been cured by the
      Company within such thirty (30) day period. In the case of termination
      under this Section 6(b), all obligations of the parties in this Agreement
      shall cease, except for Employee's obligations under Section 7 and, unless
      the termination by the Employee is without cause, Employer's obligation to
      pay the Retention Payment.

      52. Confidential Information. In consideration of the covenants of the
Company contained herein, Employee agrees as follows:

RETENTION AGREEMENT - PAGE 3

<PAGE>   22

            (a) Employee hereby agrees and acknowledges that he/she has had
      access to or is aware of certain confidential, restricted and/or
      proprietary information concerning operation by the Company's business
      (the "Business"). Employee hereby undertakes and agrees that he/she shall
      have a duty to the Company to protect such information from use or
      disclosure.

            (b) For the purposes of this Section 7, the following definitions
      shall apply:

                (i)   "Trade Secret" as related to the Business, shall mean
                      any specialized technical information or data relating
                      to (A) the manufacture and distribution of impact and
                      non-impact imaging supplies for office and home printing
                      devices (including the manufacture and distribution of
                      typewriter and printer ribbons, thermal fax ribbons,
                      cartridges and toner for laser printers, facsimile
                      machines and copiers, cartridges and ink for ink jet
                      printers, specialty papers, calculator ink rolls, and
                      carbon paper; (B) marketing strategy or plans of the
                      Company; (C) proprietary computer software; and (D) terms
                      of contracts with suppliers, employees and principal
                      customers of the Company which are not generally known to
                      the competitors of the Company.

                (ii)  "Confidential Information," as related to the Business,
                      shall mean any data or information, other than Trade
                      Secrets, which is material to the Company or its
                      affiliates and not generally known by the public.
                      Confidential Information shall include, without
                      limitation, any information pertaining to the business
                      opportunities of the Company, the details of this
                      Agreement, and the business plans, financial statements
                      and projections of the Company.

            (c) Employee shall not, without the prior written consent of the
      Company, use or disclose, or negligently permit any unauthorized person
      who is not an employee of the Company to use, disclose, or gain access to,
      any Trade Secrets or Confidential Information; provided, however, Employee
      shall be permitted, and this Agreement shall constitute written consent of
      the Company, to use Confidential Information, and to disclose such
      Confidential Information to his/her advisors (including specifically,
      without limitation, attorneys, accountants, bankers, and others) for the
      purposes of assessing the viability of and preparing a plan to acquire a
      portion of the assets of the Company.

            (d) Employee hereby agrees to deliver to, or maintain on behalf of,
      the Company and its affiliates all memoranda, notes, records, drawings,
      manuals or other documents, including all copies of such materials,
      containing Trade Secrets or Confidential Information, whether made or
      compiled by Employee or furnished to him/her from any source by virtue of
      his/her relationship with the Company or its affiliates. All such
      memoranda, notes,

RETENTION AGREEMENT - PAGE 4

<PAGE>   23

         records, drawings, manuals, other documents and other materials shall
         be delivered to the Company by the Employee upon termination of the
         Employee's employment with the Company.

         53. Assignments; Successors and Assigns. The rights and obligations of
Employee hereunder are not assignable or delegable and any prohibited assignment
or delegation will be null and void. The Company may assign and delegate this
Agreement to a successor in interest to the Company's business. Any such
assignment shall expressly include the obligations herein and shall not relieve
the Company of same. The provisions hereof shall inure to the benefit of and be
binding upon the permitted successors and assigns of the parties hereto.

         54. Governing Law. This Agreement shall be interpreted under, subject
to and governed by the substantive laws of the State of Tennessee, without
giving effect to provisions thereof regarding conflict of laws, and all
questions concerning its validity, construction, and administration shall be
determined in accordance thereby.

         55. Counterparts. This Agreement may be executed simultaneously in any
number of counterparts, each of which will be deemed an original but all of
which will together constitute one and same instrument.

         56. Invalidity. The invalidity or unenforceability of any provision of
this Agreement shall not affect any other provision hereof, and this Agreement
shall be construed in all respects as if such invalid or unenforceable provision
was omitted. Furthermore, in lieu of such illegal, invalid, or unenforceable
provision there shall be added automatically as a part of this Agreement a
provision as similar in terms to such illegal, invalid, or unenforceable
provision as may be possible and be legal, valid and enforceable.

         57. Exclusiveness. This Agreement constitutes the entire understanding
and agreement between the parties with respect to the retention by the Company
of Employee and supersedes any and all other agreements, oral or written,
between the parties, including but not limited to the Old Agreement. To the
extent the Employee has a claim arising out of the Company's rejection of the
Old Agreement, such claim is waived.

         58. Modification. This Agreement may not be modified or amended except
in writing signed by the parties. No term or condition of this Agreement will be
deemed to have been waived except in writing by the party charged with waiver. A
waiver shall operate only as to the specific term or condition waived and will
not constitute a waiver for the future or act on anything other than that which
is specifically waived.

         59. Notices. All notices, requests, consents and other communications
hereunder shall be in writing and shall be deemed to have been made when
delivered or mailed first-class postage prepaid by registered mail, return
receipt requested, or when delivered if by hand, overnight delivery service or
confirmed facsimile transmission, to the following:

RETENTION AGREEMENT - PAGE 5

<PAGE>   24

            (a) If to the Company, at 200 Beasley Drive, P.O. Box 3000,
      Franklin, Tennessee, 37068, Attention: President and Chief Executive
      Officer, or at such other address as may have been furnished to the
      Employee by the Company in writing; or

            (b) If to the Employee, at the address stated below, or such other
      address as may have been furnished to the Company by Employee in writing.

      60. Consolidation, Merger or Sale of Assets. Nothing in this Agreement
shall preclude the Company from consolidating or merging in to or with, or
transferring all or substantially all of its assets to, another corporation
which assumes this Agreement and all obligations and undertaking of the Company
hereunder. No such consolidation, merger or transfer shall affect the rights of
the Employee or the obligations of the Company hereunder.

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

                                      "COMPANY"

                                      NU-KOTE HOLDING, INC.

                                      By:
                                         --------------------------------------
                                               Patrick E. Howard, President

                                      "EMPLOYEE"

                                      ------------------------------------------
                                      Faxon Learner

                                      Employee's Principal Address:

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

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

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

RETENTION AGREEMENT - PAGE 6

<PAGE>   25

                               RETENTION AGREEMENT

         THIS RETENTION AGREEMENT is made and entered into as of June 10, 1999,
by and between NU-KOTE HOLDING, INC., a Delaware corporation (hereinafter, the
"Company"), and Jerry Gigliotti (the "Employee").

                              W I T N E S S E T H:

         WHEREAS, the Company and Employee entered into a certain retention
agreement on or around May 1, 1998 (the "Old Agreement"); and

         WHEREAS, the Company is presently in the process of reorganizing (the
"Reorganization") under Chapter 11 of the United States Bankruptcy Code (the
"Code"); and

         WHEREAS, pursuant to the provisions set forth in the Code, the Company
has the right to reject the Old Agreement, and notwithstanding such right of
rejection, the Company is willing to retain Employee as an employee until such
time as the Company determines the services of Employee are no longer required
and Employee desires to remain employed by the Company during such time and the
Employee has provided valuable services to the Company in connection with the
Chapter 11 filing;

         NOW, THEREFORE, for the reasons set forth, in consideration of the
mutual promises, covenants and agreements made herein, the receipt and
sufficiency of which are hereby acknowledged, the parties, intending to be
legally bound hereby, agree as follows:

         61. Retention. The Company hereby retains Employee in the position of
Senior Vice President - Office Products and Employee hereby accepts said
retention by the Company on the terms and conditions specified herein and
subject specifically to approval by the Bankruptcy Court.

         62. Term. The term of this Agreement shall commence on the date hereof
and, unless earlier terminated in accordance with the provisions set forth
herein below, shall expire on the earlier of (i) the date on which a Chapter 11
Plan for the Company is confirmed by the U.S. Bankruptcy Court for the Middle
District of Tennessee; or (ii) the sale of all or a substantial portion of the
Company's assets under ss. 363 of the Bankruptcy Code ("Period of Employment").
Notwithstanding anything to the contrary in this Section 2, the provisions of
Section 7 will survive the expiration or earlier termination of this Agreement.
In the event Employee and the Company desire to maintain an employment
relationship following the expiration of the Period of Employment, such
employment relationship shall be "at will" unless further agreements are made in
writing between the Employee and the Company.

         63. Duties of Employee. Employee shall perform those duties which are
assigned to him/her by the chief executive officer of the Company and which are
commensurate with the Employee's position. Employee hereby represents that
his/her employment hereunder and compliance by him/her with the terms and
conditions of this Agreement will not conflict with or

RETENTION AGREEMENT - PAGE 1

<PAGE>   26

result in the breach of any agreement to which he/she is a party or by which
he/she may be bound. Employee agrees to devote his/her full time, attention and
skill to his/her duties hereunder.

      64. Compensation.

            (a) As compensation for the duties and services performed by
      Employee, the Company will pay Employee a monthly base salary at the rate
      in effect on the date of this Agreement, subject to federal and state
      withholding allowances and in accordance with the Company's standard
      payroll practices.

            (b) In addition, the Company acknowledges that Employee is
      performing his/her job at a time when the Company's financial situation is
      precarious and that Employee has other employment opportunities which
      he/she has been asked to forego. Thus, the Company agrees that, in
      addition to, and without limitation of, any other compensation
      contemplated hereby, Employee shall receive upon the expiration of the
      Period of Employment a cash bonus in the lump sum amount of Seventy
      Thousand Dollars and No/100ths ($70,000.00), subject to applicable state
      and federal withholding allowances (the "Retention Payment"). This
      Retention Payment shall be earned and payable, as a post-petition
      administrative expense, in the next regular payroll cycle of the Company
      following expiration of the Period of Employment, such expiration being
      defined in Section 2.

            (c) Employee shall be entitled to receive this Retention Payment so
      long as the Employee is employed by the Company at the time the Period of
      Employment expires as defined in Section 2 herein. Notwithstanding the
      preceding provisions of this Section 4 should the Company terminate this
      Agreement without cause, then the Retention Payment shall be payable
      immediately as a post-petition administrative expense. However, if this
      Agreement is terminated prior to the expiration of the Period of
      Employment for cause by the Company or without cause by the Employee no
      Retention Payment shall be payable.

      65. Benefits. Employee shall also be entitled to participate in all
benefit plans and programs that are available to the Employee as of the date of
this Agreement. Additionally, the Employee shall be entitled to receive all
benefits which accrue through the date of termination of the Employee's
employment with the Company.

      66. Termination.

            (a) By the Company. The Company shall have the right at any time, by
      written notice to the Employee to terminate this Agreement, if one of the
      following events occurs:

                (i)   Employee's conviction in a court of law of any crime or
                      offense involving misuse or misappropriation of money or
                      other property of the Company; or

                (ii)  Employee's willful failure or refusal to perform specific
                      directives of the chief executive officer of the Company,

RETENTION AGREEMENT - PAGE 2

<PAGE>   27

                      which directives are consistent with the scope and nature
                      of Employee's duties and responsibilities as described
                      in this Agreement and which are not remedied by the
                      Employee within thirty (30) days after notice to the
                      Employee, or the commission of any intentional tort by
                      the Employee against the Company, or any breach by
                      Employee of the covenants set forth in Section 7 of this
                      Agreement; or

                (iii) any action of dishonesty or disloyalty by Employee or any
                      act involving moral turpitude of the Employee which
                      materially adversely affect the business of the Company;
                      or

                (iv)  the inability of Employee to perform his/her duties
                      hereunder for a period of thirty (30) consecutive days
                      (or sixty (60) total days in any ninety (90) day period)
                      by reason of illness or mental or physical disability; or

                (v)   any statements, observations, or opinions or communication
                      of information (whether oral or written) made by or caused
                      to be made by the Employee that disparages or is likely in
                      any way to harm the reputation of the Company; or

                (vi)  Employee's death.

For purposes of this Section, it is understood and agreed that good faith errors
in judgment made by the Employee shall not constitute grounds for termination
for cause hereunder. Notwithstanding the above, it is the intent of the Company
at all times to comply with the Americans With Disabilities Act, the Family and
Medical Leave Act and any other applicable federal and state employment laws. In
the case of termination under this Section 6(a), all obligations of the parties
under this Agreement shall cease, except for the Company's obligations under
Sections 4(a) and 5 herein through the date of the Employee's separation and
Employee's obligations under Section 7 hereof.

            (b) By Employee. This Agreement shall be terminable without cause by
      Employee upon two (2) weeks written notice to the Company. This Agreement
      shall be terminable by Employee for cause upon thirty (30) days written
      notice to the Company, if the Company willfully breaches any material
      terms of this Agreement and provided such breach has not been cured by the
      Company within such thirty (30) day period. In the case of termination
      under this Section 6(b), all obligations of the parties in this Agreement
      shall cease, except for Employee's obligations under Section 7 and, unless
      the termination by the Employee is without cause, Employer's obligation to
      pay the Retention Payment.

      67. Confidential Information. In consideration of the covenants of the
Company contained herein, Employee agrees as follows:

RETENTION AGREEMENT - PAGE 3

<PAGE>   28

            (a) Employee hereby agrees and acknowledges that he/she has had
      access to or is aware of certain confidential, restricted and/or
      proprietary information concerning operation by the Company's business
      (the "Business"). Employee hereby undertakes and agrees that he/she shall
      have a duty to the Company to protect such information from use or
      disclosure.

            (b) For the purposes of this Section 7, the following definitions
      shall apply:

                (i)   "Trade Secret" as related to the Business, shall mean any
                      specialized technical information or data relating to
                      (A) the manufacture and distribution of impact and
                      non-impact imaging supplies for office and home printing
                      devices (including the manufacture and distribution of
                      typewriter and printer ribbons, thermal fax ribbons,
                      cartridges and toner for laser printers, facsimile
                      machines and copiers, cartridges and ink for ink jet
                      printers, specialty papers, calculator ink rolls, and
                      carbon paper; (B) marketing strategy or plans of the
                      Company; (C) proprietary computer software; and (D) terms
                      of contracts with suppliers, employees and principal
                      customers of the Company which are not generally known
                      to the competitors of the Company.

                (ii)  "Confidential Information," as related to the Business,
                      shall mean any data or information, other than Trade
                      Secrets, which is material to the Company or its
                      affiliates and not generally known by the public.
                      Confidential Information shall include, without
                      limitation, any information pertaining to the business
                      opportunities of the Company, the details of this
                      Agreement, and the business plans, financial statements
                      and projections of the Company.

            (c) Employee shall not, without the prior written consent of the
      Company, use or disclose, or negligently permit any unauthorized person
      who is not an employee of the Company to use, disclose, or gain access to,
      any Trade Secrets or Confidential Information; provided, however, Employee
      shall be permitted, and this Agreement shall constitute written consent of
      the Company, to use Confidential Information, and to disclose such
      Confidential Information to his/her advisors (including specifically,
      without limitation, attorneys, accountants, bankers, and others) for the
      purposes of assessing the viability of and preparing a plan to acquire a
      portion of the assets of the Company.

            (d) Employee hereby agrees to deliver to, or maintain on behalf of,
      the Company and its affiliates all memoranda, notes, records, drawings,
      manuals or other documents, including all copies of such materials,
      containing Trade Secrets or Confidential Information, whether made or
      compiled by Employee or furnished to him/her from any source by virtue of
      his/her relationship with the Company or its affiliates. All such
      memoranda, notes,

RETENTION AGREEMENT - PAGE 4

<PAGE>   29

         records, drawings, manuals, other documents and other materials shall
         be delivered to the Company by the Employee upon termination of the
         Employee's employment with the Company.

         68. Assignments; Successors and Assigns. The rights and obligations of
Employee hereunder are not assignable or delegable and any prohibited assignment
or delegation will be null and void. The Company may assign and delegate this
Agreement to a successor in interest to the Company's business. Any such
assignment shall expressly include the obligations herein and shall not relieve
the Company of same. The provisions hereof shall inure to the benefit of and be
binding upon the permitted successors and assigns of the parties hereto.

         69. Governing Law. This Agreement shall be interpreted under, subject
to and governed by the substantive laws of the State of Tennessee, without
giving effect to provisions thereof regarding conflict of laws, and all
questions concerning its validity, construction, and administration shall be
determined in accordance thereby.

         70. Counterparts. This Agreement may be executed simultaneously in any
number of counterparts, each of which will be deemed an original but all of
which will together constitute one and same instrument.

         71. Invalidity. The invalidity or unenforceability of any provision of
this Agreement shall not affect any other provision hereof, and this Agreement
shall be construed in all respects as if such invalid or unenforceable provision
was omitted. Furthermore, in lieu of such illegal, invalid, or unenforceable
provision there shall be added automatically as a part of this Agreement a
provision as similar in terms to such illegal, invalid, or unenforceable
provision as may be possible and be legal, valid and enforceable.

         72. Exclusiveness. This Agreement constitutes the entire understanding
and agreement between the parties with respect to the retention by the Company
of Employee and supersedes any and all other agreements, oral or written,
between the parties, including but not limited to the Old Agreement. To the
extent the Employee has a claim arising out of the Company's rejection of the
Old Agreement, such claim is waived.

         73. Modification. This Agreement may not be modified or amended except
in writing signed by the parties. No term or condition of this Agreement will be
deemed to have been waived except in writing by the party charged with waiver. A
waiver shall operate only as to the specific term or condition waived and will
not constitute a waiver for the future or act on anything other than that which
is specifically waived.

         74. Notices. All notices, requests, consents and other communications
hereunder shall be in writing and shall be deemed to have been made when
delivered or mailed first-class postage prepaid by registered mail, return
receipt requested, or when delivered if by hand, overnight delivery service or
confirmed facsimile transmission, to the following:

RETENTION AGREEMENT - PAGE 5

<PAGE>   30

            (a) If to the Company, at 200 Beasley Drive, P.O. Box 3000,
      Franklin, Tennessee, 37068, Attention: President and Chief Executive
      Officer, or at such other address as may have been furnished to the
      Employee by the Company in writing; or

            (b) If to the Employee, at the address stated below, or such other
      address as may have been furnished to the Company by Employee in writing.

      75. Consolidation, Merger or Sale of Assets. Nothing in this Agreement
shall preclude the Company from consolidating or merging in to or with, or
transferring all or substantially all of its assets to, another corporation
which assumes this Agreement and all obligations and undertaking of the Company
hereunder. No such consolidation, merger or transfer shall affect the rights of
the Employee or the obligations of the Company hereunder.

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

                                        "COMPANY"

                                        NU-KOTE HOLDING, INC.

                                        By:
                                           -------------------------------------
                                              Patrick E. Howard, President

                                        "EMPLOYEE"

                                        ----------------------------------------
                                        Jerry Gigliotti

                                        Employee's Principal Address:

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

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

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

RETENTION AGREEMENT - PAGE 6

<PAGE>   31

                               RETENTION AGREEMENT

         THIS RETENTION AGREEMENT is made and entered into as of June 10, 1999,
by and between NU-KOTE HOLDING, INC., a Delaware corporation (hereinafter, the
"Company"), and Cindy Hutchins (the "Employee").

                              W I T N E S S E T H:

         WHEREAS, the Company and Employee entered into a certain retention
agreement on or around May 1, 1998 (the "Old Agreement"); and

         WHEREAS, the Company is presently in the process of reorganizing (the
"Reorganization") under Chapter 11 of the United States Bankruptcy Code (the
"Code"); and

         WHEREAS, pursuant to the provisions set forth in the Code, the Company
has the right to reject the Old Agreement, and notwithstanding such right of
rejection, the Company is willing to retain Employee as an employee until such
time as the Company determines the services of Employee are no longer required
and Employee desires to remain employed by the Company during such time and the
Employee has provided valuable services to the Company in connection with the
Chapter 11 filing;

         NOW, THEREFORE, for the reasons set forth, in consideration of the
mutual promises, covenants and agreements made herein, the receipt and
sufficiency of which are hereby acknowledged, the parties, intending to be
legally bound hereby, agree as follows:

         76. Retention. The Company hereby retains Employee in the position of
Vice President - Customer Service and Employee hereby accepts said retention by
the Company on the terms and conditions specified herein and subject
specifically to approval by the Bankruptcy Court.

         77. Term. The term of this Agreement shall commence on the date hereof
and, unless earlier terminated in accordance with the provisions set forth
herein below, shall expire on the earlier of (i) the date on which a Chapter 11
Plan for the Company is confirmed by the U.S. Bankruptcy Court for the Middle
District of Tennessee; or (ii) the sale of all or a substantial portion of the
Company's assets under ss. 363 of the Bankruptcy Code ("Period of Employment").
Notwithstanding anything to the contrary in this Section 2, the provisions of
Section 7 will survive the expiration or earlier termination of this Agreement.
In the event Employee and the Company desire to maintain an employment
relationship following the expiration of the Period of Employment, such
employment relationship shall be "at will" unless further agreements are made in
writing between the Employee and the Company.

         78. Duties of Employee. Employee shall perform those duties which are
assigned to him/her by the chief executive officer of the Company and which are
commensurate with the Employee's position. Employee hereby represents that
his/her employment hereunder and compliance by him/her with the terms and
conditions of this Agreement will not conflict with or

RETENTION AGREEMENT - PAGE 1

<PAGE>   32

result in the breach of any agreement to which he/she is a party or by which
he/she may be bound. Employee agrees to devote his/her full time, attention and
skill to his/her duties hereunder.

      79. Compensation.

            (a) As compensation for the duties and services performed by
      Employee, the Company will pay Employee a monthly base salary at the rate
      in effect on the date of this Agreement, subject to federal and state
      withholding allowances and in accordance with the Company's standard
      payroll practices.

            (b) In addition, the Company acknowledges that Employee is
      performing his/her job at a time when the Company's financial situation is
      precarious and that Employee has other employment opportunities which
      he/she has been asked to forego. Thus, the Company agrees that, in
      addition to, and without limitation of, any other compensation
      contemplated hereby, Employee shall receive upon the expiration of the
      Period of Employment a cash bonus in the lump sum amount of Forty-Five
      Thousand Dollars and No/100ths ($45,000.00), subject to applicable state
      and federal withholding allowances (the "Retention Payment"). This
      Retention Payment shall be earned and payable, as a post-petition
      administrative expense, in the next regular payroll cycle of the Company
      following expiration of the Period of Employment, such expiration being
      defined in Section 2.

            (c) Employee shall be entitled to receive this Retention Payment so
      long as the Employee is employed by the Company at the time the Period of
      Employment expires as defined in Section 2 herein. Notwithstanding the
      preceding provisions of this Section 4 should the Company terminate this
      Agreement without cause, then the Retention Payment shall be payable
      immediately as a post-petition administrative expense. However, if this
      Agreement is terminated prior to the expiration of the Period of
      Employment for cause by the Company or without cause by the Employee no
      Retention Payment shall be payable.

      80. Benefits. Employee shall also be entitled to participate in all
benefit plans and programs that are available to the Employee as of the date of
this Agreement. Additionally, the Employee shall be entitled to receive all
benefits which accrue through the date of termination of the Employee's
employment with the Company.

      81. Termination.

            (a) By the Company. The Company shall have the right at any time, by
      written notice to the Employee to terminate this Agreement, if one of the
      following events occurs:

                (i)   Employee's conviction in a court of law of any crime or
                      offense involving misuse or misappropriation of money or
                      other property of the Company; or

                (ii)  Employee's willful failure or refusal to perform specific
                      directives of the chief executive officer of the Company,

RETENTION AGREEMENT - PAGE 2

<PAGE>   33

                      which directives are consistent with the scope and nature
                      of Employee's duties and responsibilities as described
                      in this Agreement and which are not remedied by the
                      Employee within thirty (30) days after notice to the
                      Employee, or the commission of any intentional tort by the
                      Employee against the Company, or any breach by Employee
                      of the covenants set forth in Section 7 of this
                      Agreement; or

                (iii) any action of dishonesty or disloyalty by Employee or any
                      act involving moral turpitude of the Employee which
                      materially adversely affect the business of the Company;
                      or

                (iv)  the inability of Employee to perform his/her duties
                      hereunder for a period of thirty (30) consecutive days
                      (or sixty (60) total days in any ninety (90) day period)
                      by reason of illness or mental or physical disability; or

                (v)   any statements, observations, or opinions or communication
                      of information (whether oral or written) made by or caused
                      to be made by the Employee that disparages or is likely
                      in any way to harm the reputation of the Company; or

                (vi)  Employee's death.

For purposes of this Section, it is understood and agreed that good faith errors
in judgment made by the Employee shall not constitute grounds for termination
for cause hereunder. Notwithstanding the above, it is the intent of the Company
at all times to comply with the Americans With Disabilities Act, the Family and
Medical Leave Act and any other applicable federal and state employment laws. In
the case of termination under this Section 6(a), all obligations of the parties
under this Agreement shall cease, except for the Company's obligations under
Sections 4(a) and 5 herein through the date of the Employee's separation and
Employee's obligations under Section 7 hereof.

            (b) By Employee. This Agreement shall be terminable without cause by
      Employee upon two (2) weeks written notice to the Company. This Agreement
      shall be terminable by Employee for cause upon thirty (30) days written
      notice to the Company, if the Company willfully breaches any material
      terms of this Agreement and provided such breach has not been cured by the
      Company within such thirty (30) day period. In the case of termination
      under this Section 6(b), all obligations of the parties in this Agreement
      shall cease, except for Employee's obligations under Section 7 and, unless
      the termination by the Employee is without cause, Employer's obligation to
      pay the Retention Payment.

      82. Confidential Information. In consideration of the covenants of the
Company contained herein, Employee agrees as follows:

RETENTION AGREEMENT - PAGE 3

<PAGE>   34

            (a) Employee hereby agrees and acknowledges that he/she has had
      access to or is aware of certain confidential, restricted and/or
      proprietary information concerning operation by the Company's business
      (the "Business"). Employee hereby undertakes and agrees that he/she shall
      have a duty to the Company to protect such information from use or
      disclosure.

            (b) For the purposes of this Section 7, the following definitions
      shall apply:

                (i)   "Trade Secret" as related to the Business, shall mean
                      any specialized technical information or data relating
                      to (A) the manufacture and distribution of impact and
                      non-impact imaging supplies for office and home printing
                      devices (including the manufacture and distribution of
                      typewriter and printer ribbons, thermal fax ribbons,
                      cartridges and toner for laser printers, facsimile
                      machines and copiers, cartridges and ink for ink jet
                      printers, specialty papers, calculator ink rolls, and
                      carbon paper; (B) marketing strategy or plans of the
                      Company; (C) proprietary computer software; and (D) terms
                      of contracts with suppliers, employees and principal
                      customers of the Company which are not generally known to
                      the competitors of the Company.

                (ii)  "Confidential Information," as related to the Business,
                      shall mean any data or information, other than Trade
                      Secrets, which is material to the Company or its
                      affiliates and not generally known by the public.
                      Confidential Information shall include, without
                      limitation, any information pertaining to the business
                      opportunities of the Company, the details of this
                      Agreement, and the business plans, financial statements
                      and projections of the Company.

            (c) Employee shall not, without the prior written consent of the
      Company, use or disclose, or negligently permit any unauthorized person
      who is not an employee of the Company to use, disclose, or gain access to,
      any Trade Secrets or Confidential Information; provided, however, Employee
      shall be permitted, and this Agreement shall constitute written consent of
      the Company, to use Confidential Information, and to disclose such
      Confidential Information to his/her advisors (including specifically,
      without limitation, attorneys, accountants, bankers, and others) for the
      purposes of assessing the viability of and preparing a plan to acquire a
      portion of the assets of the Company.

            (d) Employee hereby agrees to deliver to, or maintain on behalf of,
      the Company and its affiliates all memoranda, notes, records, drawings,
      manuals or other documents, including all copies of such materials,
      containing Trade Secrets or Confidential Information, whether made or
      compiled by Employee or furnished to him/her from any source by virtue of
      his/her relationship with the Company or its affiliates. All such
      memoranda, notes,

RETENTION AGREEMENT - PAGE 4

<PAGE>   35

         records, drawings, manuals, other documents and other materials shall
         be delivered to the Company by the Employee upon termination of the
         Employee's employment with the Company.

         83. Assignments; Successors and Assigns. The rights and obligations of
Employee hereunder are not assignable or delegable and any prohibited assignment
or delegation will be null and void. The Company may assign and delegate this
Agreement to a successor in interest to the Company's business. Any such
assignment shall expressly include the obligations herein and shall not relieve
the Company of same. The provisions hereof shall inure to the benefit of and be
binding upon the permitted successors and assigns of the parties hereto.

         84. Governing Law. This Agreement shall be interpreted under, subject
to and governed by the substantive laws of the State of Tennessee, without
giving effect to provisions thereof regarding conflict of laws, and all
questions concerning its validity, construction, and administration shall be
determined in accordance thereby.

         85. Counterparts. This Agreement may be executed simultaneously in any
number of counterparts, each of which will be deemed an original but all of
which will together constitute one and same instrument.

         86. Invalidity. The invalidity or unenforceability of any provision of
this Agreement shall not affect any other provision hereof, and this Agreement
shall be construed in all respects as if such invalid or unenforceable provision
was omitted. Furthermore, in lieu of such illegal, invalid, or unenforceable
provision there shall be added automatically as a part of this Agreement a
provision as similar in terms to such illegal, invalid, or unenforceable
provision as may be possible and be legal, valid and enforceable.

         87. Exclusiveness. This Agreement constitutes the entire understanding
and agreement between the parties with respect to the retention by the Company
of Employee and supersedes any and all other agreements, oral or written,
between the parties, including but not limited to the Old Agreement. To the
extent the Employee has a claim arising out of the Company's rejection of the
Old Agreement, such claim is waived.

         88. Modification. This Agreement may not be modified or amended except
in writing signed by the parties. No term or condition of this Agreement will be
deemed to have been waived except in writing by the party charged with waiver. A
waiver shall operate only as to the specific term or condition waived and will
not constitute a waiver for the future or act on anything other than that which
is specifically waived.

         89. Notices. All notices, requests, consents and other communications
hereunder shall be in writing and shall be deemed to have been made when
delivered or mailed first-class postage prepaid by registered mail, return
receipt requested, or when delivered if by hand, overnight delivery service or
confirmed facsimile transmission, to the following:

RETENTION AGREEMENT - PAGE 5

<PAGE>   36

            (a) If to the Company, at 200 Beasley Drive, P.O. Box 3000,
      Franklin, Tennessee, 37068, Attention: President and Chief Executive
      Officer, or at such other address as may have been furnished to the
      Employee by the Company in writing; or

            (b) If to the Employee, at the address stated below, or such other
      address as may have been furnished to the Company by Employee in writing.

      90. Consolidation, Merger or Sale of Assets. Nothing in this Agreement
shall preclude the Company from consolidating or merging in to or with, or
transferring all or substantially all of its assets to, another corporation
which assumes this Agreement and all obligations and undertaking of the Company
hereunder. No such consolidation, merger or transfer shall affect the rights of
the Employee or the obligations of the Company hereunder.

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

                                    "COMPANY"

                                    NU-KOTE HOLDING, INC.

                                    By:
                                       -----------------------------------------
                                             Patrick E. Howard, President

                                   "EMPLOYEE"

                                    --------------------------------------------
                                    Cindy Hutchins

                                    Employee's Principal Address:

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

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

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

RETENTION AGREEMENT - PAGE 6

<PAGE>   37

                               RETENTION AGREEMENT

         THIS RETENTION AGREEMENT is made and entered into as of June 10, 1999,
by and between NU-KOTE HOLDING, INC., a Delaware corporation (hereinafter, the
"Company"), and Mike Ducey (the "Employee").

                              W I T N E S S E T H:

         WHEREAS, the Company and Employee entered into a certain retention
agreement on or around May 1, 1998 (the "Old Agreement"); and

         WHEREAS, the Company is presently in the process of reorganizing (the
"Reorganization") under Chapter 11 of the United States Bankruptcy Code (the
"Code"); and

         WHEREAS, pursuant to the provisions set forth in the Code, the Company
has the right to reject the Old Agreement, and notwithstanding such right of
rejection, the Company is willing to retain Employee as an employee until such
time as the Company determines the services of Employee are no longer required
and Employee desires to remain employed by the Company during such time and the
Employee has provided valuable services to the Company in connection with the
Chapter 11 filing;

         NOW, THEREFORE, for the reasons set forth, in consideration of the
mutual promises, covenants and agreements made herein, the receipt and
sufficiency of which are hereby acknowledged, the parties, intending to be
legally bound hereby, agree as follows:

         91. Retention. The Company hereby retains Employee in the position of
Vice President - OEM and Employee hereby accepts said retention by the Company
on the terms and conditions specified herein and subject specifically to
approval by the Bankruptcy Court.

         92. Term. The term of this Agreement shall commence on the date hereof
and, unless earlier terminated in accordance with the provisions set forth
herein below, shall expire on the earlier of (i) the date on which a Chapter 11
Plan for the Company is confirmed by the U.S. Bankruptcy Court for the Middle
District of Tennessee; or (ii) the sale of all or a substantial portion of the
Company's assets under ss. 363 of the Bankruptcy Code ("Period of Employment").
Notwithstanding anything to the contrary in this Section 2, the provisions of
Section 7 will survive the expiration or earlier termination of this Agreement.
In the event Employee and the Company desire to maintain an employment
relationship following the expiration of the Period of Employment, such
employment relationship shall be "at will" unless further agreements are made in
writing between the Employee and the Company.

         93. Duties of Employee. Employee shall perform those duties which are
assigned to him/her by the chief executive officer of the Company and which are
commensurate with the Employee's position. Employee hereby represents that
his/her employment hereunder and compliance by him/her with the terms and
conditions of this Agreement will not conflict with or

RETENTION AGREEMENT - PAGE 1

<PAGE>   38

result in the breach of any agreement to which he/she is a party or by which
he/she may be bound. Employee agrees to devote his/her full time, attention and
skill to his/her duties hereunder.

      94. Compensation.

            (a) As compensation for the duties and services performed by
      Employee, the Company will pay Employee a monthly base salary at the rate
      in effect on the date of this Agreement, subject to federal and state
      withholding allowances and in accordance with the Company's standard
      payroll practices.

            (b) In addition, the Company acknowledges that Employee is
      performing his/her job at a time when the Company's financial situation is
      precarious and that Employee has other employment opportunities which
      he/she has been asked to forego. Thus, the Company agrees that, in
      addition to, and without limitation of, any other compensation
      contemplated hereby, Employee shall receive upon the expiration of the
      Period of Employment a cash bonus in the lump sum amount of Fifty-Seven
      Thousand Five Hundred Dollars and No/100ths ($57,500.00), subject to
      applicable state and federal withholding allowances (the "Retention
      Payment"). This Retention Payment shall be earned and payable, as a
      post-petition administrative expense, in the next regular payroll cycle of
      the Company following expiration of the Period of Employment, such
      expiration being defined in Section 2.

            (c) Employee shall be entitled to receive this Retention Payment so
      long as the Employee is employed by the Company at the time the Period of
      Employment expires as defined in Section 2 herein. Notwithstanding the
      preceding provisions of this Section 4 should the Company terminate this
      Agreement without cause, then the Retention Payment shall be payable
      immediately as a post-petition administrative expense. However, if this
      Agreement is terminated prior to the expiration of the Period of
      Employment for cause by the Company or without cause by the Employee no
      Retention Payment shall be payable.

      95. Benefits. Employee shall also be entitled to participate in all
benefit plans and programs that are available to the Employee as of the date of
this Agreement. Additionally, the Employee shall be entitled to receive all
benefits which accrue through the date of termination of the Employee's
employment with the Company.

      96. Termination.

            (a) By the Company. The Company shall have the right at any time, by
      written notice to the Employee to terminate this Agreement, if one of the
      following events occurs:

                (i)   Employee's conviction in a court of law of any crime or
                      offense involving misuse or misappropriation of money or
                      other property of the Company; or

                (ii)  Employee's willful failure or refusal to perform specific
                      directives of the chief executive officer of the Company,

RETENTION AGREEMENT - PAGE 2

<PAGE>   39

                     which directives are consistent with the scope and nature
                     of Employee's duties and responsibilities as described in
                     this Agreement and which are not remedied by the Employee
                     within thirty (30) days after notice to the Employee, or
                     the commission of any intentional tort by the Employee
                     against the Company, or any breach by Employee of the
                     covenants set forth in Section 7 of this Agreement; or

               (iii) any action of dishonesty or disloyalty by Employee or any
                     act involving moral turpitude of the Employee which
                     materially adversely affect the business of the Company; or

               (iv)  the inability of Employee to perform his/her duties
                     hereunder for a period of thirty (30) consecutive days (or
                     sixty (60) total days in any ninety (90) day period) by
                     reason of illness or mental or physical disability; or

               (v)   any statements, observations, or opinions or communication
                     of information (whether oral or written) made by or caused
                     to be made by the Employee that disparages or is likely
                     in any way to harm the reputation of the Company; or

               (vi)  Employee's death.

For purposes of this Section, it is understood and agreed that good faith errors
in judgment made by the Employee shall not constitute grounds for termination
for cause hereunder. Notwithstanding the above, it is the intent of the Company
at all times to comply with the Americans With Disabilities Act, the Family and
Medical Leave Act and any other applicable federal and state employment laws. In
the case of termination under this Section 6(a), all obligations of the parties
under this Agreement shall cease, except for the Company's obligations under
Sections 4(a) and 5 herein through the date of the Employee's separation and
Employee's obligations under Section 7 hereof.

           (b) By Employee. This Agreement shall be terminable without cause by
      Employee upon two (2) weeks written notice to the Company. This Agreement
      shall be terminable by Employee for cause upon thirty (30) days written
      notice to the Company, if the Company willfully breaches any material
      terms of this Agreement and provided such breach has not been cured by the
      Company within such thirty (30) day period. In the case of termination
      under this Section 6(b), all obligations of the parties in this Agreement
      shall cease, except for Employee's obligations under Section 7 and, unless
      the termination by the Employee is without cause, Employer's obligation to
      pay the Retention Payment.

      97. Confidential Information. In consideration of the covenants of the
Company contained herein, Employee agrees as follows:

RETENTION AGREEMENT - PAGE 3

<PAGE>   40

            (a) Employee hereby agrees and acknowledges that he/she has had
      access to or is aware of certain confidential, restricted and/or
      proprietary information concerning operation by the Company's business
      (the "Business"). Employee hereby undertakes and agrees that he/she shall
      have a duty to the Company to protect such information from use or
      disclosure.

            (b) For the purposes of this Section 7, the following definitions
      shall apply:

                (i)   "Trade Secret" as related to the Business, shall mean
                      any specialized technical information or data relating
                      to (A) the manufacture and distribution of impact and
                      non-impact imaging supplies for office and home printing
                      devices (including the manufacture and distribution of
                      typewriter and printer ribbons, thermal fax ribbons,
                      cartridges and toner for laser printers, facsimile
                      machines and copiers, cartridges and ink for ink jet
                      printers, specialty papers, calculator ink rolls, and
                      carbon paper; (B) marketing strategy or plans of the
                      Company; (C) proprietary computer software; and (D) terms
                      of contracts with suppliers, employees and principal
                      customers of the Company which are not generally known to
                      the competitors of the Company.

                (ii)  "Confidential Information," as related to the Business,
                      shall mean any data or information, other than Trade
                      Secrets, which is material to the Company or its
                      affiliates and not generally known by the public.
                      Confidential Information shall include, without
                      limitation, any information pertaining to the business
                      opportunities of the Company, the details of this
                      Agreement, and the business plans, financial statements
                      and projections of the Company.

            (c) Employee shall not, without the prior written consent of the
      Company, use or disclose, or negligently permit any unauthorized person
      who is not an employee of the Company to use, disclose, or gain access to,
      any Trade Secrets or Confidential Information; provided, however, Employee
      shall be permitted, and this Agreement shall constitute written consent of
      the Company, to use Confidential Information, and to disclose such
      Confidential Information to his/her advisors (including specifically,
      without limitation, attorneys, accountants, bankers, and others) for the
      purposes of assessing the viability of and preparing a plan to acquire a
      portion of the assets of the Company.

            (d) Employee hereby agrees to deliver to, or maintain on behalf of,
      the Company and its affiliates all memoranda, notes, records, drawings,
      manuals or other documents, including all copies of such materials,
      containing Trade Secrets or Confidential Information, whether made or
      compiled by Employee or furnished to him/her from any source by virtue of
      his/her relationship with the Company or its affiliates. All such
      memoranda, notes,

RETENTION AGREEMENT - PAGE 4

<PAGE>   41

         records, drawings, manuals, other documents and other materials shall
         be delivered to the Company by the Employee upon termination of the
         Employee's employment with the Company.

         98. Assignments; Successors and Assigns. The rights and obligations of
Employee hereunder are not assignable or delegable and any prohibited assignment
or delegation will be null and void. The Company may assign and delegate this
Agreement to a successor in interest to the Company's business. Any such
assignment shall expressly include the obligations herein and shall not relieve
the Company of same. The provisions hereof shall inure to the benefit of and be
binding upon the permitted successors and assigns of the parties hereto.

         99. Governing Law. This Agreement shall be interpreted under, subject
to and governed by the substantive laws of the State of Tennessee, without
giving effect to provisions thereof regarding conflict of laws, and all
questions concerning its validity, construction, and administration shall be
determined in accordance thereby.

         100. Counterparts. This Agreement may be executed simultaneously in any
number of counterparts, each of which will be deemed an original but all of
which will together constitute one and same instrument.

         101. Invalidity. The invalidity or unenforceability of any provision of
this Agreement shall not affect any other provision hereof, and this Agreement
shall be construed in all respects as if such invalid or unenforceable provision
was omitted. Furthermore, in lieu of such illegal, invalid, or unenforceable
provision there shall be added automatically as a part of this Agreement a
provision as similar in terms to such illegal, invalid, or unenforceable
provision as may be possible and be legal, valid and enforceable.

         102. Exclusiveness. This Agreement constitutes the entire understanding
and agreement between the parties with respect to the retention by the Company
of Employee and supersedes any and all other agreements, oral or written,
between the parties, including but not limited to the Old Agreement. To the
extent the Employee has a claim arising out of the Company's rejection of the
Old Agreement, such claim is waived.

         103. Modification. This Agreement may not be modified or amended except
in writing signed by the parties. No term or condition of this Agreement will be
deemed to have been waived except in writing by the party charged with waiver. A
waiver shall operate only as to the specific term or condition waived and will
not constitute a waiver for the future or act on anything other than that which
is specifically waived.

         104. Notices. All notices, requests, consents and other communications
hereunder shall be in writing and shall be deemed to have been made when
delivered or mailed first-class postage prepaid by registered mail, return
receipt requested, or when delivered if by hand, overnight delivery service or
confirmed facsimile transmission, to the following:

RETENTION AGREEMENT - PAGE 5

<PAGE>   42

            (a) If to the Company, at 200 Beasley Drive, P.O. Box 3000,
      Franklin, Tennessee, 37068, Attention: President and Chief Executive
      Officer, or at such other address as may have been furnished to the
      Employee by the Company in writing; or

            (b) If to the Employee, at the address stated below, or such other
      address as may have been furnished to the Company by Employee in writing.

      105. Consolidation, Merger or Sale of Assets. Nothing in this Agreement
shall preclude the Company from consolidating or merging in to or with, or
transferring all or substantially all of its assets to, another corporation
which assumes this Agreement and all obligations and undertaking of the Company
hereunder. No such consolidation, merger or transfer shall affect the rights of
the Employee or the obligations of the Company hereunder.

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

                                             "COMPANY"

                                             NU-KOTE HOLDING, INC.

                                             By:
                                                --------------------------------
                                                  Patrick E. Howard, President

                                             "EMPLOYEE"

                                              ----------------------------------
                                              Mike Ducey

                                              Employee's Principal Address:

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

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

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

RETENTION AGREEMENT - PAGE 6

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