<PAGE>   1
                                                                    EXHIBIT 10.1


                            STEEL CITY PRODUCTS, INC.

                      BERNARD H. FRANK EMPLOYMENT AGREEMENT


THIS EMPLOYMENT AGREEMENT (this "Agreement") is made as of this 1st day of April
1998 by and between BERNARD H. FRANK (hereinafter referred to as "Mr. Frank")
and STEEL CITY PRODUCTS, INC.(hereinafter referred to as the "Company").


1.    BACKGROUND. Mr. Frank is currently an employee of the Company pursuant to
      an agreement dated as of September 1, 1993 (the "Prior Agreement"), which
      has been extended beyond its stated expiration. The parties now wish to
      enter into this Agreement, which is intended to replace and supersede in
      all respects the Prior Agreement.


2.    CONSIDERATION. The parties are entering into this Agreement for and in
      consideration of the mutual covenants contained herein and other good and
      valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged.


3.    TERM OF EMPLOYMENT.

      a.    Mr. Frank's employment hereunder shall commence on April 1, 1998
            (the "Commencement Date.")

      b.    This Agreement shall expire (subject to the provisions of Section
            16, below) on the earlier to occur of (i) a termination of Mr.
            Frank's employment pursuant in Section 11, Section 12 or Section 13,
            below; or (ii) the close of business on February 29, 2000 (the
            "Expiration Date").


4.    TITLE, REPORTING RELATIONSHIP & RESPONSIBILITIES.

      a.    So long as this Agreement is in effect, Mr. Frank shall be elected
            Chairman of the Company's Board of Directors, and shall report to
            the Board of Directors of the Company.


      b.    Mr. Frank shall perform all of the customary duties and fulfill all
            of the customary responsibilities of a chairman of the board of a
            publicly traded corporation. Mr. Frank shall determine in his own
            discretion the amount of time that is required for him to fulfill
            these duties and responsibilities and he shall carry them out to the
            best of his abilities. Nothing herein shall be construed to prevent
            Mr. Frank from serving as an officer or director or participating in
            the activities of any family, religious, charitable, community
            service or political activity so long as such participation does not
            interfere with his carrying out his duties and responsibilities
            hereunder.


5.    COMPENSATION. Mr. Frank's compensation shall be as follows:

      a.    Base Salary. The Company shall pay Mr. Frank a base salary of no
            less than $4,167 per month plus such merit increases as the Board of
            Directors of the Company shall


                                                                     Page 1 of 9

<PAGE>   2
            determine from time to time in its sole discretion ("Base Salary").
            Base Salary shall be paid in

                                           Bernard H. Frank Employment Agreement


            installments no less frequently than twice monthly at the same time
            as other employees of the Company are paid.

      b.    Deferred Compensation. In recognition of the salary voluntarily
            foregone by Mr. Frank since October 1995, the Company shall pay him
            deferred compensation of $5,000 per month for 23 months (the
            "Deferred Compensation"), commencing with the month of April 1998.

      c.    Special Bonus. The Board of Directors of the Company's parent in its
            sole discretion may grant to Mr. Frank on a quarterly basis a
            special bonus (the "Special Bonus") not to exceed, however, $25,000
            in any fiscal year of the Company.

      d.    Annual Bonus.

            i.    Subject to the terms hereof, the Company shall pay to Mr.
                  Frank an annual cash bonus (the "Annual Bonus"), for each
                  calendar year on the March 15 following the conclusion of each
                  calendar year, from a bonus pool equal to 8% of the Company's
                  consolidated net income before interest, taxes, depreciation,
                  LIFO adjustments, corporate overhead, and inter-company
                  exchanges or charges, and amortization, prepared in accordance
                  with generally accepted accounting principles consistently
                  applied and in a manner consistent with bonus calculations for
                  the calendar year 1997. The bonus pool shall be divided
                  amongst the Company's executives by the Compensation Committee
                  of the Company's Board of Directors based upon the
                  recommendations of the Chairman of the Board of Directors of
                  the Company.

            ii.   Unless the Company shall have no earnings for a given calendar
                  year, Mr. Frank's Annual Bonus shall be not less than 15% of
                  his Base Salary, unless his employment terminates before the
                  end of a calendar year, in which event the provisions relating
                  to termination of employment shall govern the payment of his
                  Annual Bonus for such year.


6.    BENEFITS.

      a.    Health, Insurance etc. Mr. Frank shall be entitled to the same
            health and other benefits as are made available to the Company's
            senior officers generally, and on the same terms and conditions.

      b.    The Company shall furnish Mr. Frank with the use of a Company-leased
            automobile with a monthly rental rate not to exceed $500 per month
            or a Company-owned automobile that, if leased, would have a monthly
            lease rate of no more than $500; or in lieu of either of the
            foregoing, the Company shall pay him a monthly automobile allowance
            of $500. The cost of all insurance, maintenance and repairs for, and
            gasoline consumed by, such automobile shall be paid or reimbursed
            (as the case may be) to Mr. Frank other than the cost of gasoline
            for his personal use of such automobile.

      c.    All of the benefits described in this Section 6 are hereinafter
            referred to collectively as the "Benefits."


                                                                     Page 2 of 9

<PAGE>   3

                                           Bernard H. Frank Employment Agreement


7.    BUSINESS EXPENSE REIMBURSEMENT. Mr. Frank shall be reimbursed in
      accordance with Company policy from time to time in effect for all
      reasonable business expenses incurred by him in the performance of his
      duties hereunder.


8.    INDEMNIFICATION. Mr. Frank shall be indemnified by the Company with
      respect to claims made against him as a director, officer and/or employee
      of the Company, of its parent, or of any of their subsidiaries (as the
      case may be) to the fullest extent permitted by the Company's charter,
      by-laws and the law of its state of incorporation.


9.    CONFIDENTIAL INFORMATION.

      a.    During his employment by the Company and after his employment
            terminates for whatever reason, Mr. Frank shall not disclose to any
            person or entity Confidential Information (as defined below) except
            in the proper performance of his duties and responsibilities under
            this Agreement or except as may be expressly authorized by the Board
            of Directors of the Company and shall not use Confidential
            Information for the benefit of any person or entity other than the
            Company. For purposes of this Agreement, "Confidential Information"
            is defined as including trade secrets, customer names and lists,
            vendor names and lists, product costs and selling prices, business
            plans, marketing plans, non-public financial data, product
            specifications and designs, the existence, nature, substance,
            progress and results of research and development projects, concepts,
            inventions, discoveries, formulae, processes, drawings, documents,
            records, software, or any other information of the Company, its
            parent or of any of their subsidiaries that is not generally
            available, or any such information of any third party that is held
            by the Company, its parent or any of their subsidiaries under an
            obligation of confidentiality.

      b.    Mr. Frank's obligation of confidentiality shall not, however, relate
            to any information --

            i.    that is or becomes publicly known through no act or fault of
                  Mr. Frank;

            ii.   that is received by Mr. Frank (without a breach of this or any
                  other agreement) from a third party with no restrictions as to
                  its disclosure; or

            iii.  that is required to be disclosed pursuant to applicable law, a
                  court order or a judicial proceeding, including a proceeding
                  to enforce this Agreement.


10.   NON-COMPETE OBLIGATIONS.

      a.    Mr. Frank's obligations with respect to competing with the Company
            and soliciting its employees shall be as follows:

            i.   Within the Market Area (as defined below) Mr. Frank shall not
                 render services or advice, whether for compensation or without
                 compensation and whether as an employee, officer, director,
                 principal or otherwise, to any person or organization with
                 respect to any product, service or process in existence or
                 under development

                                                                     Page 3 of 9

<PAGE>   4
                  that is competitive with (1) the business of the Company on
                  the date hereof; (2) the business of the Company in which Mr.
                  Frank was actively engaged during his employment by the
                  Company or of which he has detailed knowledge; or with (3) any
                  planned business

                                           Bernard H. Frank Employment Agreement


                  of the Company in which Mr. Frank had an active part in the
                  planning or of which he has detailed knowledge.

            ii.   Mr. Frank shall not either directly or indirectly as agent or
                  otherwise in any manner solicit influence or encourage any
                  customer of the Company to take away or to divert or direct
                  its business to Mr. Frank or to any person or entity by or
                  with which Mr. Frank is employed, associated, affiliated or
                  otherwise related, other than the Company.

            iii.  Mr. Frank shall not recruit or otherwise solicit or induce any
                  employee of the Company to terminate his or her employment or
                  otherwise cease his or her relationship with his or her
                  employer.

      b.    Mr. Frank's obligations under this Section 10 shall continue (i) so
            long as he is an employee of the Company and (ii) after his
            employment terminates, (whether by reason of the expiration of this
            Agreement or pursuant to Section 11, Section 12 or Section 13,
            below, or otherwise) for (x) a period of six months, or (y) for the
            period, if any, during which the Company is obligated to continue to
            pay, or as to which it has in a lump sum paid, Mr. Frank's Base
            Salary, whichever period is longer.

      c.    Definitions.

            i.    "Market Area" is defined as an area within a 200 mile radius
                  of any facility of the Company.

            ii.   For purposes of this Section 10, the word "Company" shall
                  include the Company's parent and any subsidiary of the Company
                  or such parent.

11.   TERMINATION BY THE COMPANY: Prior to the Expiration Date, the Company may
      terminate Mr. Frank's employment only pursuant to the terms and conditions
      contained in this Section 11.

      a.    Without Cause; Death; Disability. The Company may terminate Mr.
            Frank's employment without Cause (as the word "Cause" is defined
            below) or by reason of his death or permanent disability by giving
            Mr. Frank written notice of such termination. In the event the
            Company gives such notice, Company shall do the following:

            i.    continue to pay to Mr. Frank for each full calendar month in
                  the period between the date of such termination and the
                  Expiration Date; or for a period of 12 months, whichever
                  period is longer, one-twelfth of his Base Salary;

            ii.   pay to Mr. Frank any Deferred Compensation to which he is
                  entitled through the Expiration Date, but which has not been
                  paid to him;

            iii.  pay to Mr. Frank any Special Bonus awarded to him, but not
                  paid;



                                                                     Page 4 of 9

<PAGE>   5
            iv.   after the end of the calendar year of the Company in which
                  such termination of employment occurs, pay to Mr. Frank any
                  Annual Bonus that, but for the termination of his employment,
                  would have been paid to him for such year, pro-rated, however,
                  for the number of days during such year that Mr. Frank was an
                  employee of the Company;

                                           Bernard H. Frank Employment Agreement


            v.    provide to Mr. Frank the Benefits for the period during which
                  it is required to continue to pay him his Base Salary under
                  Section 11(a)(i), above; and

            vi.   cause all stock options held by Mr. Frank to become
                  exercisable in full and to remain exercisable until their
                  stated expiration date (without regard, for such purpose, to
                  the termination of his employment).

      b.    Insurance Payments. Any payments made to Mr. Frank under any
            disability plans, the premiums for which were not paid by Mr. Frank,
            shall serve to reduce the amounts payable under Section 11(a)(i),
            above.

      c.    For Cause. The Company may terminate Mr. Frank's employment for
            Cause by giving written notice thereof to Mr. Frank, in which event
            the Company shall pay him any Base Salary accrued, but not paid
            through the date of such termination; shall continue to pay him the
            monthly installments of Deferred Compensation as provided in Section
            5(b), above; and shall pay him any Special Bonus awarded prior to
            the date of such termination, but not paid.

      d.    Definition of Cause. "Cause" shall mean gross or wilful misconduct
            by Mr. Frank in connection with his employment; the breach by Mr.
            Frank of any material obligation under this Agreement, including,
            but not limited to the obligations set forth in Section 9 and
            Section 10, above; a material breach in connection with the
            performance by Mr. Frank of his employment responsibilities; any act
            of dishonesty or fraud; or the commission by Mr. Frank of a felony.

      e.    Withholdings. All amounts payable to Mr. Frank under this Agreement
            shall be subject to such withholdings therefrom as the Company is
            legally required to make.


12.   RESIGNATION BY MR. FRANK.

      a.    Mr. Frank may resign his employment with the Company on 30 days'
            prior written notice to the Company.

      b.    The Company may deem any such notice given by Mr. Frank as a
            resignation by him, effective upon the giving of such notice, of any
            or all directorships and offices then held by him in the Company,
            its parent and any of their subsidiaries, but the Company shall
            nevertheless continue to pay to Mr. Frank (i) his Base Salary during
            the thirty-day notice period; and (ii) the Deferred Compensation
            until all twenty-three payments thereof have been made.

      c.    No Annual Bonus shall be payable to Mr. Frank with respect to the
            fiscal year in which he resigns his employment with the Company.


                                                                     Page 5 of 9
<PAGE>   6

                                           Bernard H. Frank Employment Agreement


      d.    In the event of Mr. Frank's resignation, all stock options then held
            by him shall remain in effect until their stated expiration date
            (without regard, for such purpose, to the termination of his
            employment).


13.   CHANGE IN CONTROL.

      a.    Anything herein to the contrary notwithstanding, if after a Change
            in Control (as defined below) either (i) Mr. Frank's employment is
            terminated without Cause and other than by reason of his death or
            permanent disability; or (ii) Mr. Frank resigns his employment
            pursuant to Section12, above, by written notice given within his 180
            days of the effective date of the Change in Control, the Company
            shall pay and provide to Mr. Frank the amounts and benefits that it
            is required to pay and provide in the case of a termination without
            Cause under Section 11(a), above, except that --

            i.   All payments shall be made in a lump sum within 15 days of the
                 date of the termination of his employment, and the payment of
                 Base Salary shall be increased by 25%.

      b.    A "Change in Control" shall mean any transaction that results in a
            sale of substantially all of the assets, business or common stock of
            the Company to a third party or entity that is not controlled by the
            senior managers of the Company or by a majority of the Board of
            Directors of the parent of the Company on the date hereof.


14.   NOTICES. All notices required or permitted under this Agreement shall be
      in writing and shall be deemed given by a party when hand delivered to the
      other party or when deposited with a delivery service that provides
      next-business-day delivery and proof of delivery, addressed to the other
      party as follows:


      If to the Company:                  If to Mr. Frank:
        At its headquarters address         At his most recent residence address
        attention of the President.         on the books of the Company.

      With a copy to:                     With a copy to:
        Roger M. Barzun                     Mark Frank, Esq.
        General Counsel                     Aderson, Frank & Steiner
        60 Hubbard Street                   2320 Grant Building
        P.O. Box 767                        Pittsburgh, PA 15219
        Concord, Massachusetts 01742

      or to such other address of a party as such party may by notice hereunder
      designate to the other party.

15.   SEVERABILITY. If any provision or part of a provision of this Agreement is
      finally declared to be invalid by any tribunal of competent jurisdiction,
      such part shall be deemed automatically adjusted, if possible, to conform
      to the requirements for validity, but, if such adjustment is not possible,
      it shall be deemed deleted from this Agreement as though it had never been


                                                                     Page 6 of 9
<PAGE>   7

                                           Bernard H. Frank Employment Agreement


      included herein. In either case, the balance of any such provision and of
      this Agreement shall remain in full force and effect. Notwithstanding the
      foregoing, however, no provision shall be deleted if it is clearly
      apparent under the circumstances that either or both of the parties would
      not have entered into this Agreement without such provision.

16.   SURVIVAL. Notwithstanding the expiration or earlier termination of this
      Agreement or of Mr. Frank's employment for any reason, the terms and
      conditions of Section 9 and Section 10 and any other obligations of the
      parties that by their terms are to be performed or are to have continued
      effect after such termination shall survive such expiration or
      termination.

17.   PRORATION. All amounts payable to Mr. Frank hereunder for a period shorter
      than the period for which they are described herein shall be pro-rated on
      a daily basis using a 365-day year.

18.   INJUNCTIVE RELIEF. It is acknowledged and agreed that the Company shall
      have the right to bring an action to enjoin any violation by Mr. Frank of
      his obligations under Section 9 and Section 10, above, because a suit for
      monetary damages alone would be an inadequate remedy.

19.   ARBITRATION.

      a.    Except as otherwise provided below, this Agreement and any
            controversy, claim or dispute between the parties directly or
            indirectly concerning this Agreement or the breach hereof or the
            subject matter hereof, including questions concerning the scope and
            applicability of this Section 18 shall be finally settled by
            arbitration held in Pittsburgh, Pennsylvania in accordance with the
            provisions of this Section and the rules of commercial arbitration
            then followed by the American Arbitration Association or any
            successor to the functions thereof.

      b.    The arbitrator or arbitrators (the "arbitrators") shall be chosen in
            accordance with such rules. A majority of the arbitrators shall have
            the right and authority to determine how their decision or
            determination as to each issue or matter in dispute may be
            implemented or enforced. Any decision or award of a majority of the
            arbitrators shall be final and conclusive on the parties to this
            Agreement, and there shall be no appeal therefrom other than for
            fraud or willful misconduct. Notwithstanding anything in this
            Section 18 to the contrary, no arbitrator in any such proceeding
            shall have authority or power to (i) modify or alter any express
            condition or provision hereof by an award or otherwise; or (ii)
            award punitive or exemplary damages for or against any party to any
            such proceeding.

      c.    The parties hereto agree that an action to compel arbitration
            pursuant to this Agreement may be brought in the appropriate court
            of the Commonwealth of Pennsylvania sitting in Pittsburgh,
            Pennsylvania. Application may also be made to such court for
            confirmation of any decision or award of a majority of the
            arbitrators, for an order of enforcement and for any other remedies
            that may be necessary to effectuate such decision


                                                                     Page 7 of 9
<PAGE>   8

                                           Bernard H. Frank Employment Agreement


            or award. Each of the parties hereto hereby consents to the
            jurisdiction of the arbitrators and of such court and waives any
            objection to the jurisdiction of such arbitrators and court.

      d.    Notwithstanding anything contained in this Section 18 to the
            contrary, the parties hereby agree that this Section 18 shall not
            apply to any action brought by a party seeking an injunction or
            other equitable relief.

      e.    In any controversy, claim or dispute subject to arbitration under
            the terms of this Section 18, the parties shall pay the fees and
            expenses of the arbitrators in accordance with any decision or award
            of a majority of the arbitrators.

20.   MISCELLANEOUS.

      a.    This Agreement --

            i.    Supercedes and replaces in its entirety the Prior Agreement;

            ii.   contains the entire understanding of the parties on the
                  subject matter hereof;

            iii.  shall not be amended, and no term hereof shall be waived,
                  except by written agreement of the parties signed by each of
                  them;

            iv.   shall be binding upon and inure to the benefit of the parties
                  and their successors, personal representatives and permitted
                  assigns;

            v.    may be executed in one or more counterparts, each of which
                  shall be deemed an original hereof, but all of which shall
                  constitute but one and the same agreement; and

            vi.   shall not be assignable by either party without the prior
                  written consent of the other party, except that the Company
                  may assign this Agreement to any entity acquiring
                  substantially all of the stock, business or assets of the
                  Company, provided that the acquiror assumes all of the
                  Company's obligations hereunder.

      b.    The words "herein," "hereof," "hereunder," "hereby," "herewith" and
            words of similar import when used in this Agreement shall be
            construed to refer to this Agreement as a whole. The word
            "including" shall mean including, but not limited to any one or more
            enumerated items.

      c.    Each provision of this Agreement shall be interpreted and enforced
            without the aid of any canon, custom or rule of law requiring or
            suggestion construction against the party drafting or causing the
            drafting of such provision.

      d.    No representation, affirmation of fact, course of prior dealings,
            promise or condition in connection herewith or usage of the trade
            not expressly incorporated herein shall be binding on the parties.

      e.    The failure to insist upon strict compliance with any term, covenant
            or condition contained herein shall not be deemed a waiver of such
            term, nor shall any waiver or


                                                                     Page 8 of 9
<PAGE>   9

                                           Bernard H. Frank Employment Agreement


            relinquishment of any right at any one or more times be deemed a
            waiver or relinquishment of such right at any other time or times.

      f.    The captions of the paragraphs herein are for convenience only and
            shall not be used to construe or interpret this Agreement.

21.   GOVERNING LAW. This Agreement shall be governed by, and construed in
      accordance with, the domestic laws of the Commonwealth of Pennsylvania
      without giving effect to any choice of law or conflict of law provision or
      rule (whether of the Commonwealth of Pennsylvania or of any other
      jurisdiction) that would cause the application hereto of the laws of any
      jurisdiction other than the Commonwealth of Pennsylvania.


IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
day and year first above written.

STEEL CITY PRODUCTS, INC.



By:  /s/ Joel S. Lever                       /s/ Bernard H. Frank
     --------------------------------        -----------------------------------
     Joel S. Lever                           BERNARD H. FRANK
     Director


                                                                     Page 9 of 9