Document:

<PAGE>

                                 EXHIBIT 10(p)

                              EMPLOYMENT AGREEMENT

     This Employment Agreement is made as of September 1, 2001, between
Michael R. Sayre, an individual residing at 4523 Neiswander Square, New Albany,
Ohio 43054 (the "Employee"), and Pinnacle data Systems, Inc., an Ohio
corporation whose principal place of business is located at 6600 Port Road,
Suite 100, Groveport, Ohio 43125 (the "Company").

                                   Background
                                   ----------

     A.     Company is engaged in the business of providing depot repair
services for electronic equipment and providing customized engineering
applications and CPU board design and manufacturing for integration into
existing systems.

     B.     Employee is willing to be employed by Company, and Company is
willing to employ Employee, on the terms, covenants and condition hereinafter
set forth.

                             Statement of Agreement
                             ----------------------

     Therefore, the Company and Employee agree as follows:

     [sect]1.     Employment.  The Company hereby employs, engages and hires
                  ----------
Employee as Executive Vice President - Corporate Strategy and Finance. Employee
shall also render such other executive services and duties as may be assigned to
him from time to time by the Company, acting by and through its Chief Executive
Officer ("CEO") or Board of Directors. Such duties shall be primarily rendered
in Groveport, Ohio, and at such other places as Company shall in good faith
require or as the interest, needs, business, or opportunity of Company shall
require. Employee hereby accepts and agrees to such hiring, engagement, and
employment, subject to the general supervision and pursuant to the orders,
advice, and direction of Company, acting by and through its CEO and its Board of
Directors. Employee shall report to the Company's CEO.

     [sect]2.     Standard of  Performance  of Employee.  Employee  shall at all
                  -------------------------------------
times faithfully, industriously, and to the best of his ability, experience and
talents, perform all of the duties that may be required of and from him
pursuant to the express and implicit terms hereof.

                                      -1-

<PAGE>

     [sect]3.     Term of Employment.  The term of Employee's employment
                  ------------------
pursuant to this agreement shall begin as of the date hereof, and shall have an
initial term expiring on September 1, 2003, unless sooner terminated pursuant
to the provisions of [sect].6, below. The term of employment shall be
automatically extended for successive one (1) year periods on each September 1
unless either party shall have given written notice to the other party no later
than the preceding August 15 of his or its intention that the term hereof not
be extended beyond its then current term.

     [sect]4.     Compensation.  During the term of his employment  pursuant to
                  ------------
this agreement, the Employee shall be entitled to receive the following
compensation:

                  (a)     Salary.  An annual base salary of $140,000 (one
                          ------
     hundred forty thousand) per year.

                  (b)     Bonus.  An incentive cash bonus of $25,000 for 2001
                          -----
     contingent upon the successful completion of goals and accomplishments
     determined by the Company's CEO and its Board of Directors and agreed to
     with the Employee. A $50,000 bonus for 2002 based upon performance
     against annual goals established by the Company's CEO and its Board of
     Directors. Thereafter, Employee is eligible for annual base salary
     increases and bonuses in amounts and dependent upon accomplishments and
     goals determined by the Company's CEO and its Board of Directors.

                  The base salary will be payable in accordance with the
Company's general policies for payment of compensation to salaried personnel.
The bonus will be payable after the end of each fiscal year of the Company as
soon as practical after verification of the successful accomplishment of the
goals described in [sect].4(b) by the Board of Directors or its compensation
committee.

     [sect]5.     Fringe Benefits.  During the term of employment  pursuant to
                  ---------------
this agreement, the Employee shall be entitled to the following fringe benefits:

                  (a)     Vacation.  For the year 2001, Employee will have ten
                          --------
     (10) days of Paid Time Off ("PTO"). Beginning in 2002, Employee will be
     entitled to 20 days of PTO. PTO will be taken pursuant to the Company's
     PTO policy, as amended or changed from time to time.

                                      -2-

<PAGE>

                  (b)     Stock Options.  Employee will receive 75,000 stock
                          -------------
     options, exercisable at the last reported sale price on the American
     Stock Exchange on the day prior to approval of the grant by the Board of
     Directors, and vesting at the rate of one-third (25,000 options) per year
     for three years on the anniversary of the original grant date. All stock
     options received by the Employee prior to and during the term of this
     agreement will immediately (forward) vest upon a Change in Control of the
     Company (as defined below).

                  (c)     Disability Payments.  If at any time during the term
                          -------------------
     of employment the Employee shall be unable to perform his duties hereunder
     for a period not to exceed six (6) months, Employee shall nonetheless be
     entitled to receive any compensation the Employee would otherwise be
     entitled to pursuant to [sect]4(a), above, during the period of such
     disability, provided, however, that his "disability" be documented by a
     competent medical doctor selected to examine the Employee at the request of
     the disinterested Board of Directors, which examination expense shall be
     borne by the Company. In the event said disability shall continue for a
     period greater than six (6) months, then it shall be considered a
     "long-term disability", the Employee shall no longer be entitled to receive
     any compensation under [sect]4 of this agreement during the remaining
     period of such disability, and upon the vote of a majority of the
     disinterested Directors, said Employee shall be terminated in consonance
     with the provisions of [sect]6 hereof as if said disabled Employee had
     voluntarily terminated his services hereunder.

                  (d)     Executive Development.  The Employee shall be required
                          ---------------------
     to attend a personal executive development or experiential learning seminar
     of his choice for up to three days during each year of the employment term,
     with spousal accommodations.

                  (e)     Other Fringe Benefits.  The Employee shall be entitled
                          ---------------------
     to such other fringe benefits and perquisites as may be provided generally
     for the Company's executive management pursuant to policies established
     or changed from time to time by the Board.

     [sect]6.     Termination of Employment.  Notwithstanding the provisions of
                  -------------------------
[sect]3 above, the Agreement may be terminated by either party as follows:

                                      -3-

<PAGE>

                  (a)     By the Employee within six months after a Change in
     Control of the Company (as defined below); provided that after such Change
     in Control of the Company, the Employee's benefits have been reduced or the
     Employee's authority or responsibilities have been significantly reduced.
     If the Employee terminates his employment pursuant to this provision, he
     shall be entitled to receive his salary and benefits to the date of
     termination, any bonus for such year to which he would otherwise be
     entitled, prorated for the portion of the year during which the Employee
     was employed, and a payment from the Company, in a lump sum, in an amount
     equal to one year's base salary.

                  (b)     By the Company immediately upon the occurrence of
     cause (as defined below) or at any time thereafter. For purposes of this
     agreement, "cause" shall mean the Employee's failure to operate the
     Company's business in accordance with the policies, programs, budgets,
     procedures, and directions established from time to time by the Board of
     Directors or the CEO, the Employee's failure fully to perform and observe
     all obligations and conditions to be performed and observed by the Employee
     under this agreement, or the Employee's dishonesty, conviction of a crime
     (other than minor traffic offenses), habitual drunkenness, using illegal
     drugs, embezzlement, material conflict of interest, willful
     insubordination, or material neglect of duty. If the Company terminates the
     Employee's employment pursuant to this provision, he shall be entitled to
     receive only his base salary through the date of termination.

                  (c)     By the Company with or without cause upon giving not
     less than 60 days advance written notice prior to the date of termination.
     If the Company terminates the Employee's employment pursuant to this
     provision on or before June 30, 2002, Employee shall be entitled to receive
     a severance of full salary and benefits (excluding accrual of PTO) payable
     on regular payroll dates, and a pro-rated applicable bonus through at least
     June 30, 2002, with a six-month minimum of such severance. If such
     termination of employment occurs after June 30, 2002, Employee will receive
     six (6) months of severance as described above.

                  (d)     By the Company if the Employee is under a long-term
     disability, at which time the Employee will receive any amounts due to him
     under a long-term disability policy of the Company, if any, and due to him
     pursuant to [sect]5(c). For purposes of this agreement, the term "long-term
     disability" shall have the same meaning as set forth in [sect]5(c), and
     employment may be terminated as provided in [sect]5(c).

                                      -4-

<PAGE>

     For purposes of this agreement, a Change in Control shall be deemed to
occur:

               (i) When any "person" as defined in [sect]3(a)(9) of the
          Securities Exchange Act of 1934 (the "Exchange Act") and as used in
          [sect][sect]13(d) and 14(d) thereof, including a "group" as defined in
          [sect]13(d) of the Exchange Act, but excluding the Company and any
          subsidiary and any employee benefit plan sponsored or maintained by
          the Company or any subsidiary (including any trustee of such plan
          acting as trustee), directly or indirectly, becomes the "beneficial
          owner" (as defined in Rule 13d-3 under the Exchange Act, as amended
          from time to time), of securities of the Company representing 30% or
          more of the combined voting power of the Company's then outstanding
          securities;

               (ii) When, during any period of 24 consecutive months during the
          existence of this agreement, the individuals who, at the beginning of
          such period, constitute the Board (the "Incumbent Directors") cease
          for any reason other than death to constitute at least a majority
          thereof; provided, however, that a director who was not a director at
          the beginning of such 24-month period shall be deemed to have
          satisfied such 24-month requirement (and be an Incumbent Director) if
          such director was elected by, or on the recommendation of or with the
          approval of, at least two-thirds of the directors who then qualified
          as Incumbent Directors either actually (because they were directors at
          the beginning of such 24-month period) or by prior operation of this
          paragraph; or

               (iii)Upon the occurrence of a transaction requiring shareholder
          approval for the acquisition of the Company by an entity other than
          the Company or a subsidiary through purchase of assets, by merger, or
          otherwise.

     [sect]7.     Noncompetition;  Nondisclosure;  Ownership of  Developments.
                  -----------------------------------------------------------
In consideration of his employment, the base salary and other benefits provided
to the Employee, the Company and the Employee agree as follows:

                                      -5-

<PAGE>

                    (a) During the term of the Employee's employment by the
               Company, pursuant to this agreement or otherwise, and for a
               period of one year immediately after termination of such
               employment, the Employee shall not directly or indirectly:

                          (i)     Engage in or participate in any business
                  similar to the business of the Company within the United
                  States and within any other country in which the Company has
                  engaged in business during the term of the Employee's
                  employment by the Company; or

                          (ii)    Sell or perform the same or similar services
                  or products as then provided by the Company to, or solicit,
                  any of the Company's present customers or accounts or persons
                  or businesses which were customers or accounts within three
                  years preceding the Employee's termination of employment with
                  the Company; or

                          (iii)   Promote or assist, financially or otherwise,
                  any person, firm, association, corporation, or other entity
                  which directly or indirectly competes with the Company; or

                          (iv)    Otherwise enter into or engage in any business
                  which directly or indirectly competes with the business
                  carried on by the Company.

                  (b)     The Employee shall not at any time, either during the
     term of his employment with the Company or after the termination of such
     employment for whatever reason:

                          (i)     Disclose to anyone (except to the extent
                  necessary as a benefit to the Company in the performance of
                  his duties) any trade secrets or confidential information (as
                  defined below):

                          (ii)    Solicit any of the Company's employees to
     leave the employ of the Company; or

                                      -6-

<PAGE>

                          (iii)   Seek to employ any of the Company's employees
                  (other than on behalf of the Company).

                  (c)     All inventions, discoveries, concepts, improvements,
     formulas, processes, devices, methods, innovations, designs, ideas, and
     product developments (collectively, the "Developments") developed or
     conceived by the Employee, solely or jointly with others, whether or not
     patentable or copyrightable, at any time during the term of his employment
     with the Company or within one year after the termination of such
     employment for any reason, whether or not during normal working hours, and
     which relate in any way to the actual or planned business activities of the
     Company shall be considered to be developed or conceived by the Employee on
     behalf of the Company within the scope of his employment, and all of the
     Employee's right, title, and interest therein shall be the exclusive
     property of the Company. The Employee hereby assigns, transfers, and
     conveys to the Company all of his right, title, and interest in and to any
     and all such Developments. Employee shall disclose fully, as soon as
     practicable and in writing, all Developments to the Board. At any time and
     from time to time, upon the request of the Company, the Employee shall
     execute and deliver to the Company any and all instruments, documents, and
     papers, give evidence, and do any and all other acts which, in the opinion
     of counsel for the Company, are or may be necessary or desirable to
     document such transfer or to enable the Company to file and prosecute
     applications for, and to acquire, maintain, and enforce, any and all
     patents, trademark registrations, or copyrights under United States or
     foreign law with respect to any such Developments or to obtain any
     validation, reissuance, continuance, or renewal of any such patent,
     trademark, or copyright. The Company will be responsible for the
     preparation of any such instruments, documents, and papers and for the
     prosecution of any such proceedings and will reimburse the Employee for all
     reasonable expenses the Employee incurs upon authorization of the Board.

                  (d)     The Employee understands that this section is an
     essential element of this agreement and that the Company would not have
     entered into this agreement without this section being included in it. The
     Employee has consulted with his legal counsel and has been fully advised
     concerning the reasonableness and propriety of this section in the
     specific context of the operations and business of the Company, and the
     Employee acknowledges that this section is reasonable and appropriate in
     all respects. In the event of any violation or attempted violation of
     this section, Employee specifically acknowledges and agrees that the
     Company's remedy at law will be inadequate, that the Company, its
     business, and business relationships will suffer irreparable injury and,
     therefore, that the Company shall be entitled to injunctive relief upon
     such breach in

                                      -7-

<PAGE>

     addition to any other remedy to which it may be entitled,
     either at law or in equity, without the necessity of proof of actual
     damage.

                  (e)     As used in this agreement, the terms "trade secrets"
     and "confidential information" shall mean any information which is not
     generally known to the public, and include without limitation any
     information relating to the Company's business operations and structure,
     sales methods, practices and techniques, technical know-how,
     Developments, advertising, marketing methods and practices, and the
     Company's relationships with suppliers, employees, or other persons or
     entities doing business with the Company.

                  (f)     For purposes of this agreement, "directly or
     indirectly" shall mean and include participation for the Employee's own
     account or as an owner, shareholder, member, partner, director, officer,
     employee, creditor, or agent of any other person or organization or
     through the Employee's spouse or other family relation, but shall not
     include a passive investment of not more than two percent of the
     outstanding stock of a company whose shares are then being regularly
     traded in open-market brokerage transactions (either on a stock exchange
     or over-the-counter).

                  (g)     In the event that a court of competent jurisdiction
     finally determines that any provision of this section is unenforceable,
     the Company and the Employee agree that such court shall have
     jurisdiction to reform this agreement and such provision so that it is
     enforceable to the maximum extent permitted by law, and the parties agree
     to abide by such court's determination.

     [sect]8.     General.  This document contains the entire agreement between
                  -------
the parties and supersedes any prior discussions, negotiations, representations,
or agreements between them relating to the employment of the Employee. No
additions or other changes to this agreement shall be made or be binding on
either party unless made in writing and signed by each party to this agreement.
Any notice or other communication required or desired to be given to any party

                                      -8-

<PAGE>

under this agreement shall be in writing and shall be deemed given when either
delivered personally to that party or deposited in the United States mail,
first-class postage prepaid, addressed to that party at the address set forth
below its or his name below. Any party may change the address to which notices
and other communications are to be given by giving the other parties notice of
such change. All questions concerning the validity, intention, or meaning of
this agreement or relating to the rights and obligations of the parties with
respect to performance hereunder shall be construed and resolved under the laws
of Ohio. If and to the extent that any court of competent jurisdiction
determines that it is impossible or violative of any legal prohibition to
construe any provision of this agreement consistently with any law, legal
prohibition, or public policy and consequently holds that provision to be
invalid or prohibited, such holding shall in no way affect the validity of the
other provisions of this agreement, which shall remain in full force and effect.
No failure by any party to insist upon strict compliance with any term of this
agreement, to exercise any option, to enforce any right, or to seek any remedy
upon any default of any other party shall affect, or constitute a waiver of, the
first party's right to insist upon such strict compliance, exercise that option,
enforce that right, or seek that remedy with respect to that default or any
prior, contemporaneous, or subsequent default; nor shall any custom or practice
of the parties at variance with any provision of this agreement affect, or
constitute a waiver of, any party's right to demand strict compliance with all
provisions of this agreement. The captions of the various sections of this
agreement are not part of the context of this agreement, but are only labels to
assist in locating those sections, and shall be ignored in construing this
agreement. This agreement shall be personal to the Employee and no rights or
obligations of the Employee under this agreement may be assigned by him.

                                            PINNACLE DATA SYSTEMS, INC.

____________________________________        By_________________________________

MICHAEL R. SAYRE                              John D. Bair, President and
                                              Chief Executive Officer

Address:     4523 Neiswander Square         Address:     6600 Port Road
             New Albany, OH 43054                        Groveport, OH 43125

                                      -9-

<PAGE>

                                MICHAEL R. SAYRE

                              2001 BONUS OBJECTIVES
                              ---------------------

     Pinnacle Data Systems, Inc. (the "Company") and Michael R. Sayre hereby
agree that the goals to be accomplished by Mr. Sayre for him to receive his
bonus for 2001, as set forth in [sect]4(b) of his employment agreement, are as
follows:

     1.     Successful development of a one-year financial plan for the Company;

     2.     The successful raising of capital necessary to support that plan
            through 2001; and

     3.     The successful development of a three-year business plan for the
            Company  for  the  years 2002-2004.

Date:   _____________, 2001

                                        PINNACLE DATA SYSTEMS, INC.

______________________________          By_____________________________________
MICHAEL R. SAYRE                             John D. Bair, President and CEO

                                      -10-<PAGE>

                                 EXHIBIT 10(q)

                              EMPLOYMENT AGREEMENT

     This Employment Agreement is made between Christopher L. Winslow, an
individual residing at 1944 Tremont Road, Upper Arlington, Ohio 43212 (the
"Employee"), and Pinnacle Data Systems, Inc., an Ohio corporation whose
principal place of business is located at 6600 Port Road, Suite 100, Groveport,
Ohio 43125 (the "Company").

                             Statement of Agreement
                             ----------------------

     [sect]1.     Employment. The Company hereby renews and continues the
                  ----------
Employee's employment as Vice President, Product Group, and Employee hereby
accepts such employment renewal and continuation by the Company, on the terms
and subject to the conditions set forth in this agreement. Employee shall also
 render such other executive services and duties as may be assigned to him from
time to time by the Company, acting by and through its Chief Executive Officer
("CEO") or Board of Directors. Such duties shall be primarily rendered in
Groveport, Ohio, and at such other places as Company shall in good faith
require or as the interest, needs, business, or opportunity of Company shall
require. Employee shall report to the Company's CEO.

     [sect]2.     Standard of  Performance  of Employee.  Employee  shall at
                  -------------------------------------
all times  faithfully,  industriously, and to the best of his  ability,
experience  and  talents,  perform  all of the duties that may be required of
and from him pursuant to the express and implicit terms hereof.

     [sect]3.     Term of Employment. The term of Employee's employment
                  ------------------
pursuant to this agreement shall begin as of the date hereof, and shall have
an initial term expiring on __________________, unless sooner terminated
pursuant to the provisions of[sect].6, below. The term of employment shall be
automatically extended for successive one (1) year periods on each
________________ 1 unless either party shall have given written notice to the
other party no later than the preceding _____________ 15 of his or its
intention that the term hereof not be extended beyond its then current term.

     [sect]4.     Compensation.  During the term of his employment  pursuant
                  ------------
to this agreement,  the Employee shall be entitled to receive the following
compensation:

                  (a)      Salary.  An annual base salary of $160,000 (one
                           ------
          hundred sixty thousand) per year.

                  (b)      Bonus. An incentive cash bonus equal to a percentage
                           -----
         of the pretax net income of the Company (or based upon other factors
         deemed appropriate by the President and CEO, or board of Directors)
         for each fiscal year ending

                                      -1-

<PAGE>

         during the term of employment under this agreement (calculated
         prior to the deduction of the bonus). The bonus percentage or
         other factors for each year will be determined by the President
         and CEO of the Board of Directors, or its Compensation
         Committee no later than March of that year.

                  The base salary will be payable in accordance with the
Company's general policies for payment of compensation to salaried personnel.
The bonus will be payable after the end of each fiscal year of the Company as
soon as practical after the Company's independent auditors have completed the
year-end audit of the Company's financial statements for such year.

     [sect]5.     Fringe  Benefits.  During the term of employment  pursuant to
                  ----------------
this agreement, the Employee shall be entitled to the following fringe
benefits:

                  (a)      Vacation. Employee is entitled to 20 days of Paid
                           --------
         Time Off ("PTO"). PTO will be taken pursuant to the Company's PTO
         policy, as amended or changed from time to time.

                  (b)      Stock Options.  All stock options received by the
                           -------------
         Employee prior to and during the term of this agreement will
         immediately (forward) vest upon a Change in Control of the Company
         (as defined below).

                  (c)      Disability Payments. If at any time during the term
                           -------------------
         of employment the Employee shall be unable to perform his duties
         hereunder for a period not to exceed six (6) months, Employee shall
         nonetheless be entitled to receive any compensation the Employee would
         otherwise be entitled to pursuant to [sect]4(a), above, during the
         period of such disability, provided, however, that his "disability" be
         documented by a competent medical doctor selected to examine the
         Employee at the request of the disinterested Board of Directors, which
         examination expense shall be borne by the Company. In the event said
         disability shall continue for a period greater than six (6) months,
         then it shall be considered a "long-term disability", the Employee
         shall no longer be entitled to receive any compensation under [sect]4
         of this agreement during the remaining period of such disability,
         and upon the vote of a majority of the disinterested Directors,
         said Employee shall be terminated in consonance with the provisions of
         [sect]6 hereof as if said disabled Employee had voluntarily terminated
         his services hereunder.

                  (d)      Executive Development. The Employee is entitled to
                           ---------------------
         attend a personal executive development or experiential learning
         seminar of his choice for up to three days during each year of the
         employment term, with spousal accommodations. The Employee is also
         entitled to maintain membership with a reasonable number of industry
         associations. Such membership fees will be paid by the Company.

                                      -2-

<PAGE>

                  (e)      Other Fringe Benefits. The Employee shall be
                           ---------------------
         entitled to such other fringe benefits and perquisites as may be
         provided generally for the Company's executive management pursuant to
         policies established or changed from time to time by the Board.

     [sect]6.     Termination  of  Employment.  Notwithstanding  the
                  ---------------------------
provisions of.[sect]3 above, the Agreement may be terminated by either party
as follows:

                  (a)      By the Employee within six months after a Change in
         Control of the Company (as defined below); provided that after such
         Change in Control of the Company, the Employee's benefits have been
         reduced or the Employee's authority or responsibilities have been
         significantly reduced. If the Employee terminates his employment
         pursuant to this provision, he shall be entitled to receive his salary
         and benefits to the date of termination, any bonus for such year to
         which he would otherwise be entitled, prorated for the portion of the
         year during which the Employee was employed, and a payment from the
         Company, in a lump sum, in an amount equal to one year's base salary.

                  (b)      By the Company immediately upon the occurrence of
         cause as defined below) or at any time thereafter. For purposes of
         this agreement, "cause" shall mean the Employee's failure to operate
         the Company's business in accordance with the policies, programs,
         budgets, procedures, and directions established from time to time by
         the Board of Directors or the CEO, the Employee's failure fully to
         perform and observe all obligations and conditions to be performed and
         observed by the Employee under this agreement, or the Employee's
         dishonesty, conviction of a crime (other than minor traffic offenses),
         habitual drunkenness, using illegal drugs, embezzlement, material
         conflict of interest, willful insubordination, or material neglect of
         duty. If the Company terminates the Employee's employment pursuant to
         this provision, he shall be entitled to receive only his base salary
         through the date of termination.

                  (c)      By the Company with or without cause upon giving not
         less than 60 days advance written notice prior to the date of
         termination. If the Company terminates the Employee's employment
         pursuant to this provision, he shall be entitled to receive his salary
         to the date of termination, any bonus for such year to which he would
         otherwise be entitled, prorated for the portion of the year during
         which the Employee was employed, and a payment for the Company, in a
         lump sum, in an amount equal to one year's base salary.

                  (d)      By the Company if the Employee is under a long-term
         disability, at which time the Employee will receive any amounts due to
         him under a long-term

                                      -3-

<PAGE>

         disability policy of the Company, if any, and due to him pursuant to
         [sect]5(c). For purposes of this agreement, the term "long-term
         disability" shall have the same meaning as set forth in [sect]5(c),
         and employment may be terminated as provided in[sect]5(c)

         For purposes of this agreement, a Change in Control shall be deemed to
         occur:

                           (i)     When any "person" as defined in [sect]3(a)
                  (9) of the Securities Exchange Act of 1934 (the "Exchange
                  Act") and as used in [sect]13(d) and 14(d) thereof, including
                  a "group" as defined in [sect]13(d) of the Exchange Act, but
                  excluding the Company and any subsidiary and any employee
                  benefit plan sponsored or maintained by the Company or any
                  subsidiary (including any trustee of such plan acting as
                  trustee), directly or indirectly, becomes the "beneficial
                  owner" (as defined in Rule 13d-3 under the Exchange Act, as
                  amended from time to time), of securities of the Company
                  representing 30% or more of the combined voting power of the
                  Company's then outstanding securities;

                           (ii)    When, during any period of 24 consecutive
                  months during the existence of this agreement, the
                  individuals who, at the beginning of such period, constitute
                  the Board (the "Incumbent Directors") cease for any reason
                  other than death to constitute at least a majority thereof;
                  provided, however, that a director who was not a director at
                  the beginning of such 24-month period shall be deemed to have
                  satisfied such 24-month requirement (and be an Incumbent
                  Director) if such director was elected by, or on the
                  recommendation of or with the approval of, at least two-
                  thirds of the directors who then qualified as Incumbent
                  Directors either actually (because they were directors at the
                  beginning of such 24-month period) or by prior operation of
                  this paragraph; or

                      (iii)Upon the occurrence of a transaction requiring
                           shareholder approval for the acquisition of the
                           Company by an entity other than the Company or a
                           subsidiary through purchase of assets, by merger, or
                           otherwise.

     [sect]7.     Noncompetition;  Nondisclosure;  Ownership of  Developments
                  -----------------------------------------------------------
         In consideration of his employment, the base salary and other benefits
         provided to the Employee, the Company and the Employee agree as
         follows:

                                      -4-

<PAGE>

                  (a)      During the term of the Employee's employment by the
         Company, pursuant to this agreement or otherwise, and for a period of
         one year immediately after termination of such employment, the Employee
         shall not directly or indirectly:

                           (i)     Engage in or participate in any business
                  that directly competes with the business of the Company
                  within the United States and within any other country in
                  which the Company has engaged in business during the term of
                  the Employee's employment by the Company; or

                           (ii)    Sell or perform the same or similar
                  services or products as then provided by the Company to, or
                  solicit, any of the Company's present customers or accounts
                  or persons or businesses which were customers or accounts
                  within three years preceding the Employee's termination of
                  employment with the Company; or

                           (iii)   Promote or assist, financially or otherwise,
                  any person, firm, association, corporation, or other entity
                  which directly or indirectly competes with the Company; or

                           (iv)    Otherwise enter into or engage in any
                  business which directly or indirectly competes with the
                  business carried on by the Company.

                           (v)     Solicit any of the Company's employees to
                  leave the employ of the Company; or

                           (vi)    Seek to employ any of the Company's
                  employees (other than on behalf of the Company).

                  (b)      The Employee shall not at any time, either during
         the term of his employment with the Company or after the termination
         of such employment for whatever reason, disclose to anyone (except to
         the extent necessary as a benefit to the Company in the performance
         of his duties) any trade secrets or confidential information (as
         defined below).

                  (c)      All inventions, discoveries, concepts, improvements,
         formulas, processes, devices, methods, innovations, designs, ideas, and
         product developments (collectively, the "Developments") developed or
         conceived by the

                                      -5-

<PAGE>

         Employee, solely or jointly with others, whether or
         not patentable or copyrightable, at any time during the term of his
         employment with the Company or within one year after the termination of
         such employment for any reason, whether or not during normal working
         hours, and which relate in any way to the actual or planned business
         activities of the Company shall be considered to be developed or
         conceived by the Employee on behalf of the Company within the scope of
         his employment, and all of the Employee's right, title, and interest
         therein shall be the exclusive property of the Company. The Employee
         hereby assigns, transfers, and conveys to the Company all of his right,
         title, and interest in and to any and all such Developments. Employee
         shall disclose fully, as soon as practicable and in writing, all
         Developments to the Board. At any time and from time to time, upon the
         request of the Company, the Employee shall execute and deliver to the
         Company any and all instruments, documents, and papers, give evidence,
         and do any and all other acts which, in the opinion of counsel for the
         Company, are or may be necessary or desirable to document such transfer
         or to enable the Company to file and prosecute applications for, and to
         acquire, maintain, and enforce, any and all patents, trademark
         registrations, or copyrights under United States or foreign law with
         respect to any such Developments or to obtain any validation,
         reissuance, continuance, or renewal of any such patent, trademark, or
         copyright. The Company will be responsible for the preparation of any
         such instruments, documents, and papers and for the prosecution of any
         such proceedings and will reimburse the Employee for all reasonable
         expenses the Employee incurs upon authorization of the Board.

                  (d)      The Employee understands that this section is an
         essential element of this agreement and that the Company would not
         have entered into this agreement without this section being included
         in it. The Employee has consulted with his legal counsel and has been
         fully advised concerning the reasonableness and propriety of this
         section in the specific context of the operations and business of the
         Company, and the Employee acknowledges that this section is reasonable
         and appropriate in all respects. In the event of any violation or
         attempted violation of this section, Employee specifically
         acknowledges and agrees that the Company's remedy at law will be
         inadequate, that the Company, its business, and business relationships
         will suffer irreparable injury and, therefore, that the Company shall
         be entitled to injunctive relief upon such breach in addition to any
         other remedy to which it may be entitled, either at law or in equity,
         without the necessity of proof of actual damage.

                  (e)      As used in this agreement, the terms "trade secrets"
         and "confidential information" shall mean any information which is not
         generally known to the public, and include without limitation any
         information relating to the Company's business operations and
         structure, sales methods, practices and techniques, technical know-how
         , Developments, advertising, marketing methods

                                      -6-

<PAGE>

         and practices, and the Company's relationships with suppliers,
         employees, or other persons or entities doing business with the
         Company.

                  (f)      For purposes of this agreement, "directly or
         indirectly" shall mean and include participation for the Employee's
         own account or as an owner, shareholder, member, partner, director,
         officer, employee, creditor, or agent of any other person or
         organization or through the Employee's spouse or other family relation
         , but shall not include a passive investment of not more than two
         percent of the outstanding stock of a company whose shares are then
         being regularly traded in open-market brokerage transactions (either
         on a stock exchange or over-the-counter).

                  (g)      In the event that a court of competent jurisdiction
         finally determines that any provision of this section is unenforceable
         ,the Company and the Employee agree that such court shall have
         jurisdiction to reform this agreement and such provision so that it is
         enforceable to the maximum extent permitted by law, and the parties
         agree to abide by such court's determination.

     [sect]8.     General. This document contains the entire agreement between
                  -------
the parties and supersedes any prior discussions, negotiations,
representations, or agreements between them relating to the employment of the
Employee. No additions or other changes to this agreement shall be made or be
binding on either party unless made in writing and signed by each party to this
agreement Any notice or other communication required or desired to be given to
any party under this agreement shall be in writing and shall be deemed given
when either delivered personally to that party or deposited in the United
States mail, first-class postage prepaid, addressed to that party at the
address set forth below its or his name below. Any party may change the address
to which notices and other communications are to be given by giving the other
parties notice of such change. All questions concerning the validity,
intention, or meaning of this agreement or relating to the rights and
obligations of the parties with respect to performance hereunder shall be
construed and resolved under the laws of Ohio. If and to the extent that any
court of competent jurisdiction determines that it is impossible or violative
of any legal prohibition to construe any provision of this agreement
consistently with any law, legal prohibition, or public policy and consequently
holds that provision to be invalid or prohibited, such holding shall in no way
affect the validity of the other provisions of this agreement, which shall
remain in full force and effect . No failure by any party to insist upon strict
compliance with any term of this agreement, to exercise any option, to enforce
any right, or to seek any remedy upon any default of any other party shall
affect, or constitute a waiver of, the first party's right to insist upon such
strict compliance, exercise that option, enforce that right, or seek that
remedy with respect to that default or any prior, contemporaneous, or
subsequent default; nor shall any custom or practice of the

                                      -7-

<PAGE>

parties at variance with any provision of this agreement affect, or constitute
a waiver of, any party's right to demand strict compliance with all provisions
of this agreement. The captions of the various sections of this agreement are
not part of the context of this agreement, but are only labels to assist in
locating those sections, and shall be ignored in construing this agreement.
This agreement shall be personal to the Employee and no rights or obligations
of the Employee under this agreement may be assigned by him.

                                            PINNACLE DATA SYSTEMS, INC.

____________________________                By ______________________________

CHRISTOPHER L. WINSLOW                           John D. Bair, President and

                                                 Chief Executive Officer

Address:   1944 Tremont road                  Address:      6600 Port Road

           Upper Arlington, OH 43212                        Groveport, OH 43125

                                      -8-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}]]