Document:

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                                                                    EXHIBIT 10.1

                          EXECUTIVE SEVERANCE AGREEMENT

         THIS AGREEMENT is made and entered into as of the ____day of ______,
2001 by and between _______________________ (the "Executive") and PFSWEB, INC.
(the "Company"), a corporation organized under the laws of Delaware.

                                   WITNESSETH

         WHEREAS, the Executive is presently employed as an officer of the
Company; and

         WHEREAS, the Company and Executive desire to set forth the terms and
conditions regarding the payment of severance to the Executive upon the
termination of Executive's employment.

         NOW, THEREFORE, for and in consideration of the premises and the mutual
covenants and agreements herein contained, the Company and Executive hereby
agree as follows:

         1.       Definitions. As used in this Agreement, the following terms
shall have the respective meanings set forth below:

                  "Board" means the Board of Directors of the Company.

                  "Qualifying Termination" means the termination by the Company
of Executive's employment other than a Termination for Cause, but including
termination by reason of the Executive's death or disability. The term
"Qualifying Termination" shall not include the termination by Executive of his
employment, unless such termination is within 30 days of the reduction by the
Company of the Executive's annual base salary from its then current amount,
other than a reduction which is part of, and proportionate with, a general
reduction of annual base salaries of not less than three-quarters (in number) of
the Company's officers.

                  "Subsidiary" means any corporation or other entity in which
the Company has a direct or indirect ownership interest of 50% or more of the
total combined voting power of the then outstanding securities or interests of
such corporation or other entity entitled to vote generally in the election of
directors or in which the Company has the right to receive 50% or more of the
distribution of profits or 50% of the assets upon liquidation or dissolution.

                  "Termination for Cause" means the termination by the Company
of Executive's employment as the result of:

                  (i) the willful and continued failure of Executive to perform
                  substantially his duties with the Company (other than any such
                  failure resulting from Executive's incapacity due to physical
                  or mental illness); or

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                  (ii) the willful engaging by Executive in illegal conduct
                  (including without limitation, conviction of a felony) or
                  gross misconduct which is demonstrably and materially
                  injurious to the Company or its affiliates; or

                  (iii) any breach by Executive of the provisions of Sections 8
                  or 9 below.

         For purposes of this definition, no act or failure to act by Executive
shall be considered "willful" unless done or omitted to be done by Executive in
bad faith and without reasonable belief that Executive's action or omission was
in the best interests of the Company. Any act, or failure to act, based upon
authority given pursuant to a resolution duly adopted by the Board, based upon
the advice of counsel for the Company (or upon the instructions of the Company's
chief executive officer or another senior officer of the Company other than the
Executive) shall be conclusively presumed to be done, or omitted to be done, by
Executive in good faith and in the best interests of the Company.

                  "Years of Service" means the number of full calendar years in
which Executive was employed by the Company or Daisytek International
Corporation, or, in each case, any Subsidiary thereof as of the effective date
of any Qualifying Termination; provided, however, that, for purposes of
determining "Years of Service," employment for more than six consecutive months
in any calendar year shall be deemed employment for such full calendar year.

         2.       Severance and Status. (a) In the event of a Qualifying
Termination, the Company shall pay to Executive the following amounts:

                  (i) within 15 days of the effective date of the Qualifying
Termination, an amount equal to all annual base salary, bonus, expense
reimbursement and other amounts which have accrued and are due and payable as of
such date; and

                  (ii) a severance payment ("Severance Payment") equal to the
following:

                           [(S + B) / 4] x Y

                           where:

                           S = Executive's then annual base salary as of the
                  effective date of the Qualifying Termination;

                           B = The bonus amount, if any, that, but for the
                  Qualifying Termination, Executive would have received for the
                  fiscal year in which the effective date of the Qualifying
                  Termination occurs (based upon Executive's targeted bonus
                  amount and the Company's actual results for such fiscal year);
                  and

                           Y = Executive's Years of Service, but not to exceed
                  4, unless Executive was designated as a Senior Partner, in
                  which case Years of Service shall not exceed 8.

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            (b) The Severance Payment shall be reduced by (i) the amount of any
loans, advances or other amounts then due and owing by Executive to the Company,
(ii) the amount of all wages, bonus and other cash compensation or remuneration
received by the Executive for full-time services rendered to an employer or
other person or entity during the Payment Period (as hereinafter defined) and
(iii) and shall be net of any and all required withholding and taxes. To the
extent the Qualifying Termination arises from the disability of Executive, the
Severance Payment shall be reduced by the amount of any disability insurance
benefits payable to Executive.

            (c) The Severance Payment shall be payable in equal monthly
installments during the Payment Period. The "Payment Period" shall equal the
quotient obtained by dividing (i) Executive's Years of Service, but not to
exceed 4 (unless Executive was designated as a Senior Partner, in which case
Years of Service shall not exceed 8), by (ii) four.

            (d) In the event of a Qualifying Termination, Executive shall
continue to be deemed an employee of the Company during the Payment Period for
purposes of (i) receiving employee benefits as provided in Section 3 below, (ii)
exercising Options as provided in Section 4 below and (iii) all other matters,
rights and privileges in which Executive's status as an employee of the Company
would entitle Executive to some benefit, right or privilege.

         3. Benefits. In the event of a Qualifying Termination, Executive (and
Executive's dependents, as applicable) shall continue to be entitled to
participate in all employee benefits (including automobile, medical and other
benefits) provided to him prior to the Qualifying Termination, upon the same
terms and conditions as in effect prior to the Qualifying Termination (including
employee contributions), for the number of months (rounded up to whole months)
equal to the quotient obtained by dividing (i) the product obtained by
multiplying Executive's Years of Service, but not to exceed 4 (unless Executive
was designated as a Senior Partner, in which case Years of Service shall not
exceed 8), by 3, by (ii) 12 (hereinafter, the "Benefit Period"), subject,
however, to any changes or modifications (whether additions or reductions) to
such benefits as the Company shall establish during such Benefit Period and
which apply to all officers generally; provided, that, if Executive cannot
continue to participate in the Company plans providing such benefits, the
Company shall otherwise provide such benefits on the same after-tax basis as if
continued participation had been permitted. Notwithstanding the foregoing, in
the event Executive becomes reemployed with another employer and becomes
eligible to receive employee benefits from such employer, the employee benefits
described herein shall be secondary to such benefits during the period of
Executive's eligibility, but only to the extent that the Company reimburses
Executive for any increased cost and provides any additional benefits necessary
to give Executive the benefits provided hereunder.

         4. Options. In the event of a Qualifying Termination, all options
("Options") to purchase shares of the Company's common stock then held by
Executive shall, to the extent not vested, accelerate and immediately vest and
shall continue to be exercisable, notwithstanding such Qualifying Termination,
for the full stated term thereof.

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         5. Termination of Employment. This Agreement does not constitute an
employment agreement, and the Company shall have the right to terminate
Executive's employment at any time, with or without Cause; provided, however,
that:

                  (a) in the event of a Qualifying Termination, the Company
         shall pay to Executive the Severance Payment and other benefits
         provided hereunder; and

                  (b) in the event of a Termination for Cause, the Company shall
         have no other liability or obligation to Executive hereunder except to
         pay to Executive, within 15 days of the effective date of the
         Termination for Cause, all annual base salary, bonus, expense
         reimbursement and other amounts which have accrued and are due and
         payable as of such date, reduced by the amount of any loans, advances
         or other amounts then due and owing by Executive to the Company and net
         of any and all required withholding and taxes.

         For purposes of this Agreement, "Cause" shall not exist unless and
until (i) the Company has delivered to Executive a copy of a resolution duly
adopted by a majority of the entire Board (excluding Executive if Executive is a
Board member) at a meeting of the Board called and held for such purpose (after
reasonable notice to Executive and an opportunity for Executive, together with
counsel, to be heard before the Board), finding that in the good faith opinion
of the Board an event constituting Cause has occurred and specifying the
particulars thereof in detail, and (ii) Executive has had a reasonable
opportunity (of not less than 90 days) to cure or correct, to the reasonable
satisfaction of a majority of the Board (excluding Executive if Executive is a
Board member) the event constituting Cause as determined in accordance with the
immediately preceding clause (i). The Company must notify Executive of any event
constituting Cause within 90 days following the Company's knowledge of its
existence or such event shall not constitute Cause under this Agreement.

         6. Dispute; Reimbursement of Expenses. If any contest or dispute shall
arise under this Agreement involving a Qualifying Termination or involving the
failure or refusal of the Company to pay any amount arising in connection with
such Qualifying Termination, the Company shall (i) pay interest on the unpaid
portion of the Severance Payment, at a fluctuating annual rate of interest equal
to the prime rate of Chase Bank of Texas plus two percent (2%) from the
effective date of the Qualifying Termination until paid in full and (ii)
reimburse Executive, on a current basis, for all reasonable legal fees and
expenses, if any, incurred by Executive in connection with such contest or
dispute; provided, however, Executive shall be required to repay any such
amounts to the Company to the extent that a court or arbitrator issues a final
order from which no appeal can be taken, or with respect to which the time
period to appeal has expired, setting forth the determination that the position
taken by Executive was frivolous or advanced by Executive in bad faith.

         7. No Mitigation; Coordination with Change in Control Benefits.

            (a) In the event of any Qualifying Termination, Executive shall be
under no obligation to seek other employment; provided, however, that in the
event Executive does obtain

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other employment, the offset provisions set forth in Section 2(b)(ii) in respect
of any remuneration attributable to any subsequent employment shall apply.

            (b) To the extent Executive and the Company have executed and
delivered that certain "Change in Control Severance Agreement" (the "COC
Severance Agreement"), then, notwithstanding anything contained herein, in the
event that (i) Executive's employment shall be terminated under circumstances
which constitute a "Qualifying Termination" during the "Termination Period" (as
such terms are defined in the COC Severance Agreement), and (ii) Executive shall
have fully received, or provision has been made for payment in full of, all of
the payments and benefits to which he may be entitled under the terms of the COC
Severance Agreement, then, in such event, the provisions of this Agreement shall
not apply and neither party shall have any liability or obligation hereunder.

         8. Confidentiality. Without limitation of any other agreement of
Executive:

            (a) Confidential Information. Executive acknowledges the Company's
exclusive ownership of all information useful in the business of the Company,
its subsidiaries and its affiliates (including its dealings with suppliers,
customers and other third parties, whether or not a legal "trade secret"), which
at the time or times concerned is not generally known to persons engaged in
businesses similar to those conducted by the Company, and which has been or is
from time to time disclosed to, discovered by, or otherwise known by the
Executive as a consequence of his employment by the Company (including
information conceived, discovered or developed by the Executive during his
employment with the Company) (collectively, "Confidential Information").
Confidential Information includes, but is not limited to, the following
especially sensitive types of information:

                           (i) the identity, purchase and payment patterns of,
                  and special relations with, the Company's customers;

                           (ii) the Company's business development and marketing
                  plans;

                           (iii) the identity, net prices and credit terms of,
                  and special relations with, the Company's suppliers; and

                           (iv) the Company's finances, except to the extent
                  publicly disclosed.

                  (b) Proprietary Materials. The term "Proprietary Materials"
shall mean all business records, documents, drawings, writings, software,
programs and other tangible things which were or are created or received by or
for the Company in furtherance of its business, including, but not limited to,
those which contain Confidential Information. For example, Proprietary Materials
include the following especially sensitive types of materials: applications
software, the data bases of Confidential Information maintained in connection
with such software, and printouts generated from such data bases; market studies
and strategic plans; customer, supplier and employee lists; contracts and
correspondence with customers and suppliers; documents evidencing transactions
with customers and suppliers; sales calls reports, appointment

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books, calendars, expense statements and the like, reflecting conversations with
any company, customer or supplier; and purchasing, sales and policy manuals.
Proprietary Materials also include any such things that are created by Executive
or with Executive's assistance and all notes, memoranda and the like prepared
using the Proprietary Materials and/or Confidential Information.

                  (c) Acknowledgements By Executive. While some of the
information contained in Proprietary Materials may have been known to the
Executive prior to employment with the Company, or may now or in the future be
in the public domain, the Executive acknowledges that the compilation of that
information contained in the Proprietary Materials has or will cost the Company
a great effort and expense, and affords persons to whom Proprietary Materials
are disclosed, including the Executive, a competitive advantage over persons who
do not know the information or have the compilation of the Proprietary
Materials. The Executive further acknowledges that Confidential Information and
Proprietary Materials include commercially valuable trade secrets and become the
Company's exclusive property when they are conceived, created or received. The
Executive shall report to the Company promptly, orally (or, at the Company's
request, in writing) all discoveries, inventions and improvements, whether or
not patentable, and which either (i) relate to or arise out of any part of the
Company's business in which the Executive participates, or (ii) incorporate or
make use of Confidential Information or Proprietary Materials (all items
referred to in this Section 15 being sometimes collectively referred to herein
as the "Intellectual Property"). All Intellectual Property shall be deemed
Confidential Information of the Company, and any writing or other tangible
things describing, referring to, or containing Intellectual Property shall be
deemed the Company's Proprietary Materials. At the request of the Company, at
any time, the Executive (or after the Executive's death, the Executive's
personal representative) shall, at the expense of the Company, make, execute and
deliver all papers, assignments, conveyances, installments or other documents,
and perform or cause to be performed such other lawful acts, and give such
testimony, as the Company deems necessary or desirable to protect the Company's
ownership rights and Intellectual Property.

                  (d) Confidentiality Duties of Executive. Executive shall,
except as may be required by law, at all times while employed by the Company and
during the two-year period following any termination of Executive's employment:

                           (i) comply with all of the Company's reasonable
                  instructions (whether oral or written) for preserving the
                  confidentiality of Confidential Information and Proprietary
                  Materials;

                           (ii) use Confidential Information and Proprietary
                  Materials only in furtherance of the Company's business;

                           (iii) exercise appropriate care to advise other
                  employees of the Company (and, as appropriate, subcontractors)
                  of the sensitive nature of Confidential Information and
                  Proprietary Materials prior to their disclosure, and to
                  disclose the same only on a need-to-know basis;

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                           (iv) not copy all or any part of Proprietary
                  Materials, other than in the course of carrying out the
                  Executive's duties and responsibilities for the Company;

                           (v) not sell, give, loan or otherwise transfer any
                  copy of all or any part of Proprietary Materials to any person
                  who is not an employee of the Company, other than in the
                  course of carrying out the Executive's duties and
                  responsibilities for the Company; and

                           (vi) not publish, lecture on or otherwise disclose to
                  any person who is not an employee of the Company, other than
                  in the course of carrying out the Executive's duties and
                  responsibilities for the Company, all or any part of
                  Confidential Information or Proprietary Materials; and not use
                  all or any part of any Confidential Information or Proprietary
                  Materials for the benefit of any third party without the
                  Company's written consent.

                  (e) Return Of Company Property. Promptly following the
termination of Executive's employment, the Executive (or in the event of death,
the Executive's personal representative) shall promptly surrender to the Company
the original and all copies of Proprietary Materials (including all notes,
memoranda and the like concerning or derived therefrom), whether prepared by the
Executive or others, which are then in the Executive's possession or control.
Records of payments made by the Company to or for the benefit of the Executive,
the Executive's copy of this Agreement, his rolodexes, personal diaries,
personal mementos, personal effects shall not be deemed Proprietary Materials
for purposes of this paragraph (e), and other such things, lawfully possessed by
the Executive which relate solely to taxes payable by the Executive, employee
benefits due to the Executive or the terms of the Executive's employment with
the Company, shall also not be deemed Proprietary Materials for purposes of this
paragraph.

         9.       Restrictive Covenant. Without limitation of any other
agreement of Executive, and in order to protect the valid business interests of
the Company, and in consideration of the Severance Payment and other benefits
provided hereunder, Executive covenants and agrees as follows:

                  (a) For so long as Executive is employed by the Company and
during the longer of the Benefit Period or the one year period following the
termination of Executive's employment (herein, the "Restricted Period"):

                           (i) Executive will not, whether directly or
                  indirectly, and whether on his own behalf or as an employee,
                  officer, director, consultant, advisor, agent, representative,
                  shareholder, partner, independent contractor or in any
                  capacity on behalf of any sole proprietorship, corporation,
                  partnership, joint venture, person or other entity which in
                  any way competes with the Company or its business, solicit or
                  attempt to solicit any client or customer of the Company or
                  any person or entity which at any time during the six months
                  prior to the termination of Executive's employment was then a
                  prospective client or customer of the Company;

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                           (ii) Executive will not attempt in any manner to
                  persuade any of the customers of the Company to cease doing
                  business or reduce the amount of business which any of such
                  customers has done or may contemplate doing with the Company;
                  and

                           (iii) Executive will not, whether directly or
                  indirectly, and whether on his own behalf or as an employee,
                  officer, director, consultant, advisor, agent, representative,
                  shareholder, partner, independent contractor or in any
                  capacity on behalf of any sole proprietorship, corporation,
                  partnership, joint venture, person or other entity, employ any
                  person who at any time during the Restricted Period is or was
                  an employee of the Company.

                  (b) Executive acknowledges that his position with the Company
requires the performance of services which are, and will be, special, unique and
extraordinary and such position places him, and will place him, in a position of
confidence and trust with the customers of the Company, and accordingly that the
restrictive covenants set forth above are necessary in order to protect and
maintain the legitimate business interests of the Company. The Executive further
acknowledges that the location of the Company's customers and business extends
beyond the geographic area of the Company's principal office or state of
incorporation and it is reasonable that the restrictive covenants set forth
above are not limited by any specific geographic area.

                  (c) Executive acknowledges that the remedy at law for any
breach of the confidentiality provisions of this Agreement or this restrictive
covenant by him will be inadequate and that, accordingly, the Company shall, in
addition to all other available remedies (including without limitation seeking
damages and an accounting for lost profits), be entitled to injunctive relief.

                  (d) Executive acknowledges that the restrictions imposed
herein are fair and reasonable and are required for the protection of the
Company and are given as an inducement to the Company to enter into this
Agreement and are an integral part of the transactions contemplated herein. The
Executive further acknowledges that he has the means, skills and ability to earn
a livelihood without violation of the terms of this restrictive covenant. If any
of the covenants contained in this Agreement, or any part hereof, is hereinafter
construed to be invalid or unenforceable, the same shall not affect the
remainder of the covenant or covenants, which shall be given full effect,
without regard to the invalid portions. If any of the covenants contained in
this Agreement, or any part hereof, is held to be unenforceable because of the
duration of such provision or the area covered thereby, the parties agree that
the court making such determination shall have the power to reduce the duration
and/or geographic area of such provision and, in its reduced form, said
provision shall then be enforceable.

                  (e) The parties agree that in the event that the courts of any
one or more of any state having jurisdiction shall hold the above covenants
wholly unenforceable by reason of the breadth of scope or otherwise, it is the
intention of the parties hereto that such determination not bar or in any way
affect the right of the Company to the relief provided above in the courts of
any other states within the geographical scope of such covenants, as to breaches
of such covenants in

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such other respective jurisdictions, the above covenants as they relate to each
state being, for this purpose, severable into diverse and independent covenants.

         10.       Successors; Binding Agreement.

                  (a) Subject to the provisions of Section 7(b) above, this
Agreement shall not be terminated by any the consummation of a merger,
consolidation, statutory share exchange or similar form of corporate transaction
involving the Company or any of its Subsidiaries (a "Business Combination"), and
in any such event, the provisions of this Agreement shall be binding upon the
surviving entity thereof, and such Surviving Corporation shall be treated as the
Company hereunder.

                  (b) Subject to the provisions of Section 7(b) above, the
Company agrees that in connection with any Business Combination, it will cause
any successor entity to the Company to unconditionally assume (and for any
parent corporation in such Business Combination to guarantee), by written
instrument delivered to Executive (or his beneficiary or estate), all of the
obligations of the Company hereunder. Failure of the Company to obtain such
assumption and guarantee at least three days prior to the effectiveness of any
such Business Combination (the "Assumption Date") shall be a breach of this
Agreement and shall, effective as of the Assumption Date, entitle Executive to
compensation and other benefits from the Company in the same amount and on the
same terms as Executive would be entitled hereunder by reason of a Qualifying
Termination.

                  (c) This Agreement shall inure to the benefit of and be
enforceable by Executive's personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees and legatees. If
Executive shall die while any amounts would be payable to Executive hereunder
had Executive continued to live, all such amounts, unless otherwise provided
herein, shall be paid in accordance with the terms of this Agreement to such
person or persons appointed in writing by Executive to receive such amounts or,
if no person is so appointed, to Executive's estate.

         11. Notice. For purposes of this Agreement, all notices and other
communications required or permitted hereunder shall be in writing and shall be
deemed to have been duly given when delivered or five (5) days after deposit in
the United States mail, certified and return receipt requested, postage prepaid,
addressed as follows:

         If to the Executive: to the most recent address of such Executive on
the books and records of the Company; and

         If to the Company: PFSweb, Inc., 500 North Central Expressway, Plano,
TX 75074;

or to such other address as either party may have furnished to the other in
writing in accordance herewith, except that notices of change of address shall
be effective only upon receipt.

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         12. Full Settlement. The Company's obligation to make any payments
provided for in this Agreement and otherwise to perform its obligations
hereunder shall be in full settlement of all claims and potential claims by
Executive against the Company and its officers, directors, employees, agents and
representatives in respect of the termination of Executive's employment or any
other matter relating to Executive's employment by the Company. The Company's
obligations hereunder shall not be affected by any set-off, counterclaim,
recoupment, defense or other claim, right or action that the Company may have
against Executive or others. Subject to the provisions of Section 7(b) above,
the terms and provisions of this Agreement are in addition to, and not in lieu
of, the terms and provisions of the COC Severance Agreement, if any, between the
Company and Executive.

         13. Employment with Subsidiaries. Employment with the Company for
purposes of this Agreement shall include employment with any Subsidiary.

         14. Survival. The respective obligations and benefits afforded to the
Company and Executive shall survive any termination of Executive's employment or
the termination of this Agreement.

         15. GOVERNING LAW; VALIDITY. THE INTERPRETATION, CONSTRUCTION AND
PERFORMANCE OF THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN
ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF DELAWARE WITHOUT REGARD TO THE
PRINCIPLES OF CONFLICTS OF LAWS THEREOF, OF SUCH PRINCIPLES OF ANY OTHER
JURISDICTION WHICH COULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION
OTHER THAN THE STATE OF DELAWARE. THE INVALIDITY OR UNENFORCEABILITY OF ANY
PROVISION OF THIS AGREEMENT SHALL NOT AFFECT THE VALIDITY OR ENFORCEABILITY OF
ANY OTHER PROVISION OF THIS AGREEMENT, WHICH OTHER PROVISIONS SHALL REMAIN IN
FULL FORCE AND EFFECT.

         16. Counterparts. This Agreement may be executed in counterparts, each
of which shall be deemed to be an original and all of which together shall
constitute one and the same instrument.

         17. Miscellaneous. No provision of this Agreement may be modified or
waived unless such modification or waiver is agreed to in writing and signed by
Executive and by a duly authorized officer of the Company. No waiver by either
party hereto at any time of any breach by the other party hereto of, or
compliance with, any condition or provision of this Agreement to be performed by
such other party shall be deemed a waiver of similar or dissimilar provisions or
conditions at the same or at any prior or subsequent time. Failure by Executive
or the Company to insist upon strict compliance with any provision of this
Agreement or to assert any right Executive or the Company may have hereunder
shall not be deemed to be a waiver of such provision or right or any other
provision or right of this Agreement. The headings contained in this Agreement
are for reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement. This Agreement (and, as applicable, the COC
Severance

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Agreement) constitute the entire agreement among the parties pertaining to the
subject matter hereof and supersedes all prior agreements, understandings,
negotiations and discussions, whether oral or written, of the parties.

         18. Resolution of Disputes. Any disputes arising under or in connection
with this Agreement may, at the election of the Executive or the Company, be
resolved by binding arbitration, to be held in Dallas, Texas, in accordance with
the rules and procedures of the American Arbitration Association. If arbitration
is elected, the Executive and the Company shall mutually select the arbitrator.
If the Executive and the Company cannot agree on the selection of an arbitrator,
each party shall select an arbitrator and the two arbitrators shall select a
third arbitrator who shall resolve the dispute. Judgment upon the award rendered
by the arbitrator may be entered in any court having jurisdiction thereof. Costs
of the arbitration shall be borne by the Company. The foregoing shall not
restrict the ability of any party to seek injunctive or equitable relief in any
court having jurisdiction thereof.

         IN WITNESS WHEREOF, the Company has caused this Agreement to be
executed by a duly authorized officer of the Company and Executive has executed
this Agreement as of the day and year first above written.

                                      PFSWEB, INC.

                                      By:
                                         --------------------------------
                                      Its:
                                          -------------------------------

                                      EXECUTIVE:

                                      -----------------------------------
                                      Name:

                                       11<PAGE>
                                                                    EXHIBIT 10.1

                          ACTIVE IQ TECHNOLOGIES, INC.

                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT (this "Agreement") is made effective the 8th
day of May 2002 by and between Jeffrey M. Traynor, a Minnesota resident
("Employee") and Active IQ Technologies, Inc., a Minnesota corporation (the
"Company").

         WHEREAS, Employee desires to provide his services to the Company upon
the terms and conditions hereinafter set forth, and

         WHEREAS, the Company desires to employ Employee upon the terms and
conditions hereinafter set forth, and

         NOW, THEREFORE, in consideration of these premises and the mutual
promises made herein and the mutual benefits to be derived here from, Employee
and the Company, intending to be legally bound, hereby agree as follows:

         1. Employment. The Company hereby employs Employee as Chief Financial
Officer, and Employee hereby accepts employment with the Company upon the terms
and conditions hereinafter set forth.

         2. Term. Employment shall be for an initial term of one (1) year
commencing on May 1, 2002 and continuing until the earlier of (i) April 30,
2003; or (ii) the date Employee's employment terminates pursuant to Section 10
hereof. Unless Executive's employment has been terminated pursuant to Section
10, the term of this Agreement shall be renewed for successive one-year terms if
mutually agreed upon by the Employee and the Chief Executive Officer (the
"CEO").

         3. Duties. Employee shall report to and take direction from the CEO.
Employee shall perform those duties that are usual and customary for a Chief
Financial Officer of a software sales, service and development enterprise. He
shall perform his duties in a manner reasonably expected of a Chief Financial
Officer of such a company.

         4. Compensation. During the term of his employment, Employee shall
receive the following (collectively, the "Compensation"):

            (a) An annual base salary of $120,000 payable in equal installments
         in accordance with the Company's payment policy (subject to standard
         withholding amounts for local, state and federal taxes); and

            (b) A guaranteed bonus of $60,000 in four in equal installments on
         or before May 15, 2002, August 15, 2002, November 15, 2002 and February
         15, 2003.

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            (c) 175,000 options (as attached as a separate agreement) priced at
         $1.25 with 35,000 options vesting upon the execution of this agreement
         and the balance vesting ratably over a four year period.

         5. Expenses. Employee shall be reimbursed for authorized traveling and
other out-of pocket business expenses, provided they have been reasonably
incurred in the performance of Employee's duties for the Company. Employee shall
submit to the Company an itemized account detailing the expenses on a form
provided to Employee by the Company, accompanied by receipts. The Company
reserves the right to reject reimbursement of expense submissions not in
compliance with the terms set forth in this Section or which are not in
compliance with Internal Revenue Service statutes, rules, regulations or other
controlling or interpretive authority.

         6. Benefits. The Company shall provide Employee with full participation
in the Company's employee benefit plans under the same terms as provided to
other similarly positioned employees of the Company from time to time. Such
benefits are subject to change at any time without notice. Employee is entitled
to Three (3) weeks of vacation per year upon the same terms and conditions as
provided to the other employees of the Company. Vacation time will be scheduled
taking into account the Employee's duties and obligations at the Company. Sick
leave, holiday pay and all other leaves of absence also will be in accordance
with the Company's stated personnel policies.

         7. Confidential Information. Employee acknowledges and agrees that in
the course of, or incident to, his employment as an employee hereunder, the
Company may provide to Employee, or Employee may otherwise be exposed to or
obtain, confidential information. Without the prior written consent of the Board
of Directors of the Company, except as shall be necessary in the performance of
Employee's assigned duties, Employee shall not disclose or use for Employee's
direct or indirect benefit the direct or indirect benefit of any third party,
and Employee shall maintain, both during and after Employee's employment by the
Company, the confidentiality of any Confidential Information (as hereinafter
defined) of the Company. In general, "Confidential Information" means any and
all information of the Company, including, but not limited to, any information
relating to: research; processes; inventions; products; methods; computer codes
or instructions and related documentation; and materials prepared by Employee in
the course of, relating to or arising out of his employment by the Company, or
prepared by any other employee or contractor for the Company or the Company's
customers or clients; cost data; business and financial studies; business
procedures; financial information; financial forecasts and projections;
marketing and business development data, methods, plans and efforts; the
identities of customers or clients, contractors and suppliers and prospective
customers or clients, contractors and suppliers; the terms of contracts and
agreements with customers or clients, contractors and suppliers; the Company's
relationship with actual and prospective customers or clients, contractors and
suppliers and the needs and requirements of, and the Company's course of dealing
with, any such actual or prospective customers or clients, contractors and
suppliers; personnel information; customer and vendor credit information; and
any other materials that have not been made available to the general public.
Failure to mark any of the Confidential Information as confidential or
proprietary shall not affect its status as Confidential Information under the
terms of this Agreement. The obligations of this Section shall survive the
termination of this Agreement.

         8. Inventions or Discoveries. Employee acknowledges that inventions,
other discoveries, innovations, designs, improvements and software (whether or
not they are in writing or

                                       2
<PAGE>

reduced to practice) or works of authorship (whether or not they can be patented
or copyrighted) may be developed, conceived or otherwise made by Employee during
the term of this Agreement (collectively, "Inventions"). Employee agrees that
all Inventions shall be the exclusive property of Company. With respect to all
Inventions, Employee agrees to:

            (a) Keep accurate, complete and timely records, which shall be
         Company's property and shall be retained on Company's premises; and

            (b) Promptly and fully disclose and describe all Inventions to
         Company; and

            (c) Assign (and Employee does hereby assign) to Company all of
         Employee's rights to the Inventions, and to application for letters
         patent or copyrights in all counties and to letters patent or
         copyrights granted upon these Inventions in all countries; and

            (d) To do such other acts as may be necessary or helpful in the
         opinion of Company to preserve property rights to these inventions
         against forfeiture, abandonment or loss and to obtain and maintain
         letters patent or copyrights and to vest the entire right and title
         thereto exclusively in Company.

            The obligations of this Section shall continue beyond the
termination of this Agreement with respect to Inventions conceived or otherwise
developed during the term of this Agreement and for the one-year period
following the termination of this Agreement and shall be binding upon assigns,
executors, administrators and other legal representatives. Notwithstanding
anything to the contrary contained herein, the foregoing Section 7 shall not
apply to Employee's rights in any invention that the Employee developed entirely
on his own time without using the Company's equipment, supplies, facilities or
trade secret information except for those inventions that either: (1) relate at
the time of conception or reduction to practice of the invention to the
Company's business, or actual or demonstrable anticipated research or
development of the Company; or (2) result from any work performed by Employee
for the Company.

         9. Property. During the term of this Agreement and thereafter, Employee
shall not remove from the Company's offices or premises any documents, records,
notebooks, files, correspondence, reports, memoranda, computer tapes, computer
disks or similar materials of or containing confidential information of the type
identified in Section 7 hereof, or other materials or property of any kind,
unless necessary in accordance with Employee's duties and responsibilities of
employment, and in the event that any of such material or property is removed,
all of the foregoing shall be returned to their proper files or places of
safekeeping as promptly as possible after the removal shall have served its
specific purpose; nor shall Employee make, retain, remove or distribute any
copies of any of the foregoing for any reason whatsoever, except as may be
necessary in the discharge of Employee's assigned duties; and upon the
termination of Employee's employment by the Company, Employee shall leave with
or return to the Company all originals and copies of the foregoing, then in
Employee's possession, whether prepared by Employee or by others.

         10. Termination of Employment.

            (a) Termination by the Company. The Company or Employee may
         terminate employment under this Agreement at any time for any reason.
         The termination shall be

                                        3
<PAGE>

         effective as of the date specified by the party initiating the
         termination in a written notice delivered to the other party, which
         date shall not be earlier than the date such notice is delivered to the
         other party. This Agreement shall terminate in its entirety immediately
         upon the death of Employee. Except as expressly provided to the
         contrary in this section or applicable law, Employee's rights to pay
         and benefits shall cease on the date his employment under this
         Agreement terminates.

                   (b) Disability. If Employee has become disabled such that he
         cannot perform the essential functions of his job with or without
         reasonable accommodation, and the disability continues for a period of
         more than ninety (90) days, the Board may; its discretion, in terminate
         his employment under this Agreement.

         11. Effect of Termination of Employment. Except as expressly set forth
herein, upon the termination of Employee's employment hereunder, neither the
Employee nor his beneficiary or estate shall have any further rights or claims
against the Company under this Agreement or otherwise.

         12.      Covenant Not to Compete.

                  (a) Prohibition on Direct Competition. Regardless of whether
         or not this Agreement or the Employee's employment is terminated, for
         the duration of Employee's employment and for the twelve (12) month
         period following the termination of Employee's employment (hereinafter,
         the "Restricted Period"), Employee shall not compete, directly or
         indirectly, in any geographic area in which the Company conducted
         business or in such area in which the Company intends to conduct
         business within the six (6) month period following the termination of
         this Agreement, with the day-to-day business activities of the Company,
         which shall include, but shall not be limited to, the offering of
         services and/or products and/or other deliverables similar to products
         or services or other deliverables sold, offered, or proposed to be sold
         in the twelve (12) month period prior to the Restricted Period. For
         purposes of this Section 12, the term "Company" shall include all
         entities related to the Company, including all parent and sister
         entities and all subsidiaries of the Company or any of the foregoing.

                  (b) Prohibition on Indirect Competition. Employee shall be
         deemed to be competing (for the purposes of this Section 12), if
         Employee shall engage, directly or indirectly, in any business offering
         products or services similar to those offered or proposed to be offered
         by the Company in its day-to-day business, whether for his own account
         or that of any other person, firm, corporation, partnership or other
         business entity, and whether his participation shall be as a
         stockholder, general or limited partner, or investor possessing an
         ownership interest exceeding one percent (10%) in any such entity, or
         as a principal agent, proprietor, officer, director, employee, sales
         representative, consultant, lender or in any other capacity.

                  (c) Non-Solicitation of Customers. Regardless of whether or
         not this Agreement or the Employee's employment is terminated, during
         the Restricted Period, neither Employee or his Affiliate shall directly
         or indirectly, solicit, divert, take away or induce customers or
         clients (wherever located) of the Company to avail themselves of the
         services or products of others that are competitive with any of the
         Company's services or

                                       4
<PAGE>

         products, it being agreed that such actions would require Employee to
         violate the Company's right to its secret or proprietary information.
         For purposes of this Agreement, "Affiliate" shall mean any person or
         entity controlled by Employee.

                  (d) Non-Solicitation of Employees and Consultants. Regardless
         of whether or not this Agreement or the Employee's employment is
         terminated, during the Restricted Period, neither Employee or his
         Affiliate shall (i) solicit, divert, take away or induce any employee
         or consultant of the Company to leave the employ of or sever the
         relationship with the Company; or (ii) employ or bite any person who
         was an employee or consultant of the Company at any time during the
         past twelve (12) rolling months.

                  (e) Consideration. Employee agrees that the restrictions set
         forth in this Section 12 are given in consideration for Company's
         selection of Employee Chief as Financial Officer, Employee's continued
         employment and his being granted access to Confidential Information.
         Employee agrees that these restrictions are reasonable under the
         circumstances, and Employee understands that the Company would not
         agree to employment without Employee's agreement to the restrictions
         set forth in this Section 12. Furthermore, in connection with
         Employees' employment with the Company, the restrictions set forth in
         this Section 12 are designed to protect the Company's proprietary
         rights and property rights including, but not limited to, customer
         lists and trade secrets.

                  (f) Enforcement. If the scope of the restrictions in this
         Section 12 is determined by a court of competent jurisdiction to be too
         broad to permit enforcement of such restrictions to their full extent,
         then such restrictions shall be construed or rewritten so as to be
         enforceable to the maximum extent permitted by law, and Employee hereby
         consents, to the extent he may lawfully do so, to the judicial
         modification of the scope of such restrictions in any proceeding
         brought to enforce them.

                  (g) Enforcement where Termination Without Cause. In the event
         that Employee's employment is terminated at any time without Cause,
         Employee shall receive a nine-month severance. For the purposes of this
         Agreement, "Cause" shall mean (i) willful misconduct that is injurious
         to the Company monetarily or otherwise, including, but not limited to,
         misappropriation of funds; (ii) conviction of a crime punishable by
         imprisonment for a term in excess of one (1) year or involving moral
         turpitude; or (iii) failure of Employee to perform the duties assigned
         to Employee by the CEO or his/her assignee.

                  (h) Enforcement where there is a Change in Control. In the
         event of a Change in Control, Employee shall receive his base salary
         plus bonus under Section 4(a) of this Agreement for a nine month
         period.

                      As used in this Agreement, "Change in Control" shall mean
         a change in control which would be required to be reported in response
         to item 6(e) on Schedule 14A of Regulation 14A promulgated under the
         Securities Exchange Act of 1934, as amended (the "Exchange Act"),
         whether or not the Company is then subject to such reporting
         requirement, including, without limitation, if:

                      (i) any person (as such term is used in Sections 13(d) and
                  14(d) of the Exchange Act, including any affiliate or
                  associate as defined in Rule 12(b)-2 under

                                       5
<PAGE>

                  the Exchange Act of such person, other than the Company, any
                  trustee or other fiduciary holding securities under an
                  employee benefit plan of the Company, or any corporation
                  owned, directly or indirectly, by the stockholders of the
                  Company in substantially the same proportions as their
                  ownership of stock of the Company) becomes a "beneficial
                  owner" (as defined in 13d-Rule 3 under the Exchange Act),
                  directly or indirectly, of securities of the Company
                  representing 50% or more of the combined voting power of the
                  Company's then outstanding securities; or

                      (ii) less than a majority of the Board of Directors is
                  comprised of the individuals described below; or

                      (iii) the stockholders of the Company approve a definitive
                  agreement to merge or consolidate the Company with or into
                  another corporation or other enterprise in which the holders
                  of outstanding stock of the Company entitled to vote in
                  elections of directors immediately before such merger or
                  consolidation hold less than 50% of the voting power of the
                  survivor of such merger or consolidation or its parent, or
                  approve a plan of liquidation; or

                      (iv) at least 90% of the Company's assets are sold and
                  transferred to another corporation or other enterprise that is
                  not a subsidiary, direct or indirect, or other affiliate of
                  the Company.

                                  "Board of Directors", for purposes of this
                  Section 12(h), shall mean individuals who on the date hereof
                  constituted the Board of the Company, and any new director who
                  subsequently was elected or nominated for election by a
                  majority of the individuals who on the date hereof constituted
                  the Board of Directors and those individuals, if any, who were
                  previously elected or nominated as provided for in this
                  Section.

         13.      Intellectual Property.

                  (a) Employee acknowledges that any and all writings,
         documents, inventions, discoveries, computer programs or instructions
         (whether in source code, object code, or any other form), algorithms,
         plans, memoranda, tests, research, designs, specifications, models,
         data, diagrams, flow charts, and/or techniques (whether reduced to
         written form or otherwise) that Employee makes, conceives, discovers or
         develops, either solely or jointly with any other person, at any time
         during the term of Employee's employment, whether during working hours
         or at the Company's facility at any or other time or location, and
         whether upon the request or suggestion of the Company or otherwise,
         that relate to or are useful in any way in connection with any business
         now or hereafter carried on by the Company (collectively, "Intellectual
         Work Product") shall be the sole and exclusive property of the Company,
         Employee shall promptly disclose to the Company all Intellectual Work
         Product, and Employee shall have no claim for additional compensation
         for the Intellectual Work Product.

                  (b) Employee acknowledges that all the Intellectual Work
         Product that is copyrightable shall be considered a work made for hire
         under United States copyright law. To the extent that any copyrightable
         Intellectual Work Product may not be considered a work made for hire
         under the applicable provisions of copyright law, or to the extent
         that,

                                       6
<PAGE>

         notwithstanding the foregoing provisions, Employee may retain an
         interest in any Intellectual Work Product that is not copyrightable,
         Employee hereby irrevocably assigns and transfers to the Company any
         and all right, title, or interest that Employee may have in the
         Intellectual Work Product under copyright, patent, trade secret and
         trademark law in perpetuity or for the longest period otherwise
         permitted by law, without the necessity of further consideration. The
         Company shall be entitled to obtain and hold in its own name all
         copyrights, patents, trade secrets, and trademarks with respect
         thereto.

                  (c) At the request and sole expense of the Company, either
         before or tier the termination of Employee's employment, Employee shall
         assist the Company in acquiring and maintaining copyright, patent\trade
         secret, and trademark protection upon, and confirming the Company's
         title to, any Intellectual Work Product. Employee's assistance will
         include signing all applications for copyrights and patents and other
         papers, cooperating in legal proceedings, and taking any other steps
         considered desirable by the Company.

         14. Disclosure. Employee hereby represents that Employee is not subject
to any other agreement that Employee will violate by signing this Agreement.
Employee shall disclose the existence and terms of this Agreement for any
employer that Employee may work for after the termination of Employee's
employment at the Company.

         15. Conflicting Business. Employee agrees that he will not transact
business with the Company personally, or as agent, owner, partner, or
shareholder of any other entity. Employee further agrees that he will not engage
in any business activity or outside employment that may be in conflict with the
Company's proprietary or business interests.

         16. Successors and Assigns. The Company may assign this Agreement to,
and this Agreement shall bind and inure to the benefit of, any parent,
subsidiary, affiliate or successor of the Company. This Agreement shall not be
assignable by Employee.

          17. Entire Agreement; Amendments. This Agreement contains the entire
agreement and understanding of the parties relating to the subject matter hereof
and merges and supersedes all prior discussions, agreements and understandings
of every nature between them other than the Merger Agreement. This Agreement may
not be changed or modified, except by an agreement in writing signed by both of
the parties hereto.

         18. Waiver. The waiver of the breach of any term or provision of this
Agreement shall not operate as or be construed to be a waiver of any other or
subsequent breach of this Agreement. Failure of a party to enforce any provision
hereof shall not be deemed a waiver of such party's right to enforce right such
provision in the future.

         19. Governing Law. This Agreement shall be construed and enforced in
accordance with the laws of the State of Minnesota, without regard to conflicts
of law principles of Minnesota or any other jurisdiction.

         20. Invalidity. In case any one or more of the provisions or portions
of the provisions contained in this Agreement shall, for any reason, be held to
be invalid, illegal or unenforceable in any respect, such invalidity, illegality
or unenforceability shall not affect the validity of any other provision or
portion of any provision of this Agreement, and any such provision or any such

                                       7

<PAGE>

portion of any provision shall be deemed modified to the extent necessary to
make it enforceable. In the event that a court of competent jurisdiction
determines that one or more of the provisions or portions of the provisions
contained in this Agreement is over broad or over reaching, such provision or
portion thereof shall be doomed modified to the extent necessary to make it
enforceable to the maximum extent allowed by law. If any provision herein is not
enforceable as written, the parties hereto agree that such court shall reform
the provision to provide the maximum restriction enforceable against Employee
and that the provision as reformed, shall be enforceable.

         21. Section Headings. The section headings in this Agreement are for
convenience only; they form no part of this Agreement and shall not affect its
interpretation.

         22. Gender; Number. Words used herein, regardless of the number and
gender specifically used, shall be deemed and construed to include any other
number, singular or plural, and any other gender, masculine, feminine or neuter,
as the context requires.

          23. Enforcement. Employee acknowledges that it is impossible to
measure fully, in money, the injury that will be caused to the Company in the
event of a breach or threatened breach of this Agreement, and Employee waives
the claim or defense that the Company has an adequate remedy at law. Employee
shall not, in any action or proceeding to enforce the provisions of this
Agreement, assert the claim or defense that such a remedy at law exists. The
Company shall be entitled to injunctive relief to enforce the provisions of this
Agreement, without prejudice to any other remedy the Company may have at law or
in equity.

         24. Consent to Suit. Except as otherwise provided by the last sentence
of this Section 24, each of the Company and Employee irrevocably and
unconditionally (a) agrees that any suit, action or other legal proceeding
arising out of or relating to this Agreement brought by either of them or any of
their affiliates or any combination thereof, shall only be instituted in
Minneapolis, Minnesota; (b) consents and submits to the jurisdiction of such
courts in any suit, action or other legal proceeding arising out of or related
to this Agreement (c) consents to personal jurisdiction in such court and
further agrees that service of process upon Employee may be effected by
certified mail or by any other means permitted by law; (d) waives any objection
which Employee may have to the laying of venue of any such suit, action or
proceeding in any such court; and (e) waives any claim or defense of
inconvenient forum. This Section 24 shall not prevent the Company from seeking
to enforce this Agreement in any other court of competent jurisdiction.

         25. Notices. All notices or other communications hereunder shall be in
writing and shall be deemed given (i) on the same day if given in person; (ii)
the next business day if sent by overnight courier service to the parties at the
addresses set forth below or to such other addresses as shall be specified by
notice to the other parties hereunder or (iii) the next business day if sent by
telefax, electronic confirmation requested:

                                       8
<PAGE>

     If to the Company;                     with a copy to:

     Active IQ Technologies, Inc.           William M. Mower
     5720 Smetana Drive                     Maslon Edelman Borman & Brand, LLP
     Minnetonka, MN 55343                   3300 Wells Fargo Center
     Attention: CEO                         90 South 7th Street
     Telefax No.: 952-345-6600              Minneapolis, MN 55402
                                            Telephone No.: (612) 672-8358
                                            Telefax No.: (612) 672-8397

     To Employee:

     Jeffrey M. Traynor
     8446 Lancaster Court
     Eden Prairie, MN 55347

      26. Counterparts. This Agreement may be executed in any number of
counterparts, and each such counterpart hereof shall be deemed to be an original
instrument, and all such counterparts together shall constitute but one
agreement.

      27. Survival of Provisions. Sections 7 through 27 shall survive the
termination of this Agreement.

      IN WITNESS WHEREOF, the parties have caused this Agreement to be executed
the day and year first above written.

                                     ACTIVE IQ TECHNOLOGIES, INC.

                                     By       /s/ D. Bradly Olah 5/8/02
                                        --------------------------------
                                     Title:   CEO
                                           -----------------------------

/s/ Jeffrey M. Traynor
--------------------------
Jeffrey M. Traynor

                                       9

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