Document:

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                                 Exhibit 10.43
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                          IKON OFFICE SOLUTIONS, INC.

                     EXECUTIVE DEFERRED COMPENSATION PLAN
              (as amended and restated effective October 1, 2000)

     1.   Purpose.  The purpose of the IKON Office Solutions, Inc. Executive
Deferred Compensation Plan is to permit certain eligible employees of IKON
Office Solutions, Inc. to defer a portion of their compensation and to
participate in a program under which they are provided income at a specified
time in the future. The program is intended to constitute an unfunded deferred
compensation arrangement for a select group of management or highly compensated
employees.

     2.   Definition.  Unless the context otherwise requires, the following
words as used herein shall have the following meanings:

          (a)  "Administrator" shall mean the person or persons so designated
and acting under Paragraph 16 hereof.

          (b)  "Compensation" shall mean all salaries and bonuses payable by
IKON and all shares of IKON common stock or cash payable pursuant to awards
under the LTIP, but shall not include company contributions under the IKON
Retirement Savings Plan or any fringe benefits.

          (c)  "Effective Date" shall mean January 1, 2000, the effective date
of this amended and restated Plan. The rights of a Participant whose
participation in the Plan commenced prior to the Effective Date and who remains
a Participant on the Effective Date shall be governed by the terms of the
amended and restated Plan as set forth herein.

          (d)  "Election Form" shall mean the election form executed by each
Participant and IKON setting forth certain information relating to the
Participant's participation in the Plan.

          (e)  "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended from time to time.

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          (f)  "IKON" shall mean IKON Office Solutions, Inc., an Ohio
corporation, formerly known as Alco Standard Corporation.

          (g)  "LTIP" shall mean IKON's Long Term Incentive Compensation Plan,
as amended from time to time.

          (h)  "Participant" shall mean any person employed by IKON who is
eligible, and who has elected, to participate in the Plan.

          (i)  "Plan" shall mean the IKON Office Solutions, Inc. Executive
Deferred Compensation Plan, as amended from time to time.

          (j)  "Plan Year" shall mean the period beginning on January 1 and
ending on December 31 of each year.

     3.   Participation.  Any person who (a) is employed by IKON, (b) is holding
an unvested award under the LTIP or is subject to a Change in Control Agreement
and (c) is a United States taxpayer shall be eligible to participate herein. A
person eligible under this Paragraph 3 shall become a Participant by executing
an Election Form and such other forms as may be required by the Administrator.

     4.   Deferral of Compensation.  Prior to the Effective Date and prior to
the beginning of each Plan Year during the term of the Plan, an employee who
meets the eligibility requirements of Paragraph 3 may irrevocably elect to defer
or forgo a portion of his Compensation for the following Plan Year.

     The amount of the deferral for each Plan Year may vary, but cash deferrals
must be projected to be no less than $5,000 for any Plan Year. The amount to be
deferred for a Plan Year will be deducted from the Participant's Compensation
otherwise payable by IKON. In the case of deferrals from salary, such deferrals
will be made in substantially equal installments.

     A Participant may specify the length of time for which receipt of cash
and/or shares of IKON common stock may be deferred, provided that (i) the
deferral period must extend at least until the January following the end of the
calendar year in which the Compensation would otherwise have been paid but for
the election to defer and (ii) distributions must commence no later than the
January following the year in which the Participant

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attains age 60 or the January following the year in which the Participant
retires or otherwise terminates employment with IKON, whichever is later. A
Participant may elect to defer the distribution of benefits to a later date by
providing written notice of such election to the Administrator by December 31 of
the second year prior to the date on which benefits would otherwise have been
paid; provided, however, that such election may be made only once with respect
to the deferral pursuant to any Election Form.

     5.   Investment Accounts.  Amounts deferred by a Participant pursuant to
Paragraph 4 will be credited to a cash deferral account and/or a stock deferral
account established by IKON in the name of the Participant. A Participant's cash
deferral account will be denominated in dollars and will be credited with
earnings based on the performance of various investment alternatives selected by
the Participant from among those made available by IKON from time to time. A
Participant's stock deferral account will initially be denominated solely in
share units (representing the right to receive an equivalent number of shares of
IKON common stock) and will be credited with additional share units to reflect
cash dividends paid by IKON in respect of its common stock.

     With respect to shares deferred into a Participant's stock deferral account
prior to January 1, 1997 (including shares of Unisource Worldwide, Inc.
("Unisource") common stock that were credited to the Participant's stock
deferral account in connection with the December 31, 1996 spin-off
distribution), a Participant may elect to convert some or all of the share units
so that they will thereafter be denominated in dollars. To the extent that a
Participant makes such an election, his stock deferral account will thereafter
contain a separate sub-account, denominated in dollars. A Participant subject to
IKON's Confidential Information and Security Trading Policy may make such a
conversion election only during a trading window and the sub-account in the
Participant's stock deferral account will be credited with an amount based on
the value of IKON common stock or Unisource common stock, as the case may be, as
of the following business day. A Participant who is not subject to IKON's
Confidential Information and Security Trading Policy may make such a conversion
election on or before the 25th of any month and the sub-account in the
Participant's stock deferral account will be credited with an amount based on
the value of IKON common stock or Unisource common stock, as the case may be,

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as of the last business day of such month. The sub-account in the Participant's
stock deferral account will be credited with earnings based on the performance
of various investment index alternatives selected by the Participant from among
those made available by IKON from time to time.

     All amounts deferred into in a Participant's stock deferral account on or
after January 1, 1997 must remain denominated in stock units and may not be
converted to dollars at any time.

     A Participant may request a change in the allocation of his cash deferral
account or the sub-account in his stock deferral account from among the various
available alternatives once during any calendar month. Any such change requested
by the 25th day of a month will become effective as of the first day of the next
calendar month.

     6.   Rabbi Trust.  IKON intends to contribute all Participant deferrals of
IKON common stock to a "rabbi trust" (the "Trust") to be established for this
purpose. Assets held in the Trust will be subject to the claims of creditors of
IKON.

     The Trust shall be deemed to be the owner of all shares held in the Trust
for corporate law purposes. The trustee of the Trust (the "Trustee") shall
retain all incidents of ownership in any shares held in the Trust, including the
right to vote such shares and to receive dividends paid in respect of such
shares. The Trustee may, but is not obligated to, reinvest any cash dividends
received in respect of shares of IKON common stock held in the Trust to purchase
additional shares of IKON common stock.

     7.   Vesting.  A Participant shall be immediately vested in all amounts
deferred hereunder.

     8.   Amount and Timing of Payments.  Except as otherwise provided in
Paragraphs 9 and 10, amounts to which a Participant is entitled under the Plan
shall be valued as of December 1 of the Plan Year preceding the year specified
in his Election Form, and shall be paid to the Participant in a lump sum within
60 days thereafter. Alternatively, if the Participant so elects, distributions
may be made in substantially equal annual installments over a period not to
exceed ten years, beginning within 60 days after December 1 of the year
preceding the year specified in the Participant's Election Form. All
distributions from the Trust shall be made (i) in shares of IKON common stock

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(or Unisource common stock, as the case may be) for the stock units credited to
the account, unless the Participant elects, subject to the approval of the Plan
Administrator, to receive such distribution(s) in cash, and (ii) in cash for all
other items credited to the account.

     9.   Death.  Notwithstanding any contrary election in a Participant's
Election Form, if a Participant dies before receiving full payment of all
amounts to which he is entitled under the Plan, the beneficiary or beneficiaries
designated by the Participant in his Election Form shall receive the balance in
the Participant's cash deferral account and stock deferral account (valued as of
the end of the calendar month in which the Participant dies), in a lump sum
payment, as soon as administratively practicable following the Participant's
date of death. Distributions from a Participant's stock deferral account will be
made (i) in shares of stock (and cash in lieu of fractional shares) for the
stock units credited to the account, unless the beneficiary elects, subject to
the approval of the Administrator, to have the distribution paid in cash, and
(ii) in cash for all other items credited to the account.

     10.  Termination of Employment.  Notwithstanding any contrary election in a
Participant's Election Form, if a Participant terminates employment with IKON,
he shall receive the balance in his cash deferral account and stock deferral
account (valued as of the end of the Plan Year in which the Participant's
employment terminates), in a lump sum payment, in January of the year following
his employment termination date. Distributions from a participant's stock
deferral account will be made (i) in shares of stock (and cash in lieu of
fractional shares) for the stock units credited to the account, unless the
Participant elects, subject to the approval of the Administrator, to have the
distribution paid in cash, and (ii) in cash for all other items credited to the
account. For purposes of this Paragraph 10, a Participant will not be treated as
having terminated employment with IKON if he continues to be an employee of
Unisource.

     11.  Beneficiary Designation.  A Participant shall designate in his
Election Form the beneficiary or beneficiaries, who shall, in the event of his
death, receive the payments to which the Participant would otherwise have been
entitled. This designation may be amended in writing and filed with the
Administrator from time to time by the Participant. In the event that there is
no effective beneficiary designation when such amounts are payable,

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payment shall be made to the members of the first surviving class of the
Participant in the following priority:

          (a)  spouse;

          (b)  the living children (including adopted children) in equal
amounts;

          (c)  estate.

     12.  Incapacity of Recipient.  Any payment required to be made under the
Plan to a person who is under a legal disability may be made to or for the
benefit of such person in such of the following ways as the Administrator shall
determine:

          (a)  to such person;

          (b)  to the legal representatives of such person;

          (c)  to a near relative of such person to be used for his benefit; or

          (d)  to pay the expenses of support, maintenance or education of such
person.

     The Administrator shall not be required to see to the application by any
third party of payments made pursuant to this Paragraph 12.

     13.  Responsibility for Payment.  All amounts payable under the Plan shall
be paid by IKON. IKON may, in its sole discretion, determine the manner in which
it shall finance its obligation to pay such amounts.

     14.  Non-Assignment.  Except as hereinafter provided with respect to
marital or family support disputes, no amount payable under the Plan shall be
subject to assignment, transfer, sale, pledge, encumbrance, alienation or charge
by the Participant or any beneficiary. Any attempt to assign, transfer, sell,
pledge, encumber, alienate or charge any amount hereunder shall be without
effect. In cases of marital or family support disputes, the Administrator will
observe the terms of the Plan unless and until ordered to do otherwise by a
state or federal court. As a condition of participation in the Plan, the
Participant shall agree to hold IKON harmless from any claim that arises out of

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obeying an order of any state or federal court with respect to marital or family
support disputes, whether such order effects a judgment of such court or is
issued to enforce a judgment or order of another court.

     15.  Unsecured Obligation.  Other than the assets contributed to the Trust
pursuant to Paragraph 6, IKON shall not segregate or physically set aside any
funds or assets as a result of this Plan. Neither a Participant, nor his
beneficiary, nor any other person shall be deemed to have, pursuant to this
Plan, any property interest, legal or equitable, in any specific asset of IKON
or any specific asset in the Trust. To the extent that any person acquires any
right to receive payments under this Plan or an Election Form, such right shall
be no greater than, nor shall it have any preference or priority over, the
rights of any unsecured general creditor of IKON.

     16.  Administration.  The Plan shall be administered by a Committee
selected from time to time by the Board of Directors of IKON (the "Committee").
The Committee shall select an Administrator from time to time to administer the
Plan under the general policy guidance of the Committee. The Administrator shall
be one or more persons who shall be responsible for:

          (a)  maintaining any records necessary in connection with the Plan;

          (b)  making calculations under the Plan;

          (c)  interpreting the provisions of the Plan; and

          (d)  otherwise administering the Plan in accordance with its terms.

     17.  Claims Procedures.  At any time the Administrator makes a
determination adverse to a Participant or beneficiary with respect to a claim
for payment or participation under the Plan, the Administrator shall notify the
claimant in writing of such determination, setting forth:

          (a)  the specific reason for such determination;

          (b)  a reference to the specific provision or provisions of the Plan
on which such determination is based;

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     (c)  a description of any additional material or information necessary to
perfect the claim, and an explanation of the reason that such material is
required; and

     (d)  an explanation of the rights and procedures set forth in this
Paragraph 17.

     A person who receives notice of an adverse determination by the
Administrator with respect to a claim may request, within 60 days of receipt of
such notice, that the Committee review the Administrator's determination. This
request may be made on behalf of a claimant by a duly authorized representative.
The claimant or representative may review pertinent documents and submit issues
and comments with respect to the controversy to the Committee. The Committee
shall render a decision within 60 days of a request for review (or within 120
days under special circumstances), which decision shall be in writing and shall
set forth the specific reasons for the decision reached and the specific
provisions of the Plan on which the decision is based. A copy of the ruling
shall be forwarded to the claimant.

     18.  Employee Benefit Plans.  This Plan shall not in any way affect a
Participant's right to participate in any pension, profit-sharing, incentive,
thrift, group health insurance, stock option, termination pay or similar plan of
IKON, which is now in effect or may hereafter be adopted, to the extent that the
Participant is entitled to participate under the applicable terms and provisions
of such plan, except that the amounts deferred herein shall not be included in
determining a Participant's benefits under any retirement plans qualified under
section 401(a) of the Internal Revenue Code.

     19.  Amendment.  The Board of Directors of IKON shall have the power to
amend this Plan at any time; provided, however, that, except as set forth in
Paragraphs 20, 21 and 22, no amendment or termination of the Plan shall have a
material adverse effect upon a Participant unless he consents to such amendment
or termination in writing.

     20.  Termination.  This Plan shall remain in effect until terminated by the
Board of Directors of IKON. The Board of Directors of IKON shall have the right
to terminate the Plan in whole or in part, for any reason, including pursuant to
a determination that proposed or pending tax law changes or other events cause,
or are likely in the future to cause, the Plan to have an adverse financial
impact upon IKON. In such event, IKON

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shall have no liability or obligation under the Plan or the Participant's
Election Form (or any other document), provided that IKON distributes to each
Participant, in a lump sum payment, the balance in his cash deferral account and
stock deferral account, valued as of the end of the month in which such
termination occurs. Distributions from a Participant's stock deferral account
will be made (i) in shares of IKON common stock (and cash in lieu of fractional
shares) for stock units credited to the account, unless the Participant elects,
subject to the approval of the Plan Administrator, to receive such distribution
in cash, and (ii) in cash for all other items credited to the account.

     21.  Acceleration.  IKON shall have the right at any time to cause the
payment of all amounts thereafter due to a Participant to be paid in a single
lump sum or in such other accelerated manner as IKON shall deem appropriate. The
amount of any lump sum payment shall be the value of a Participant's cash
deferral account and stock deferral account, valued as of the end of the month
following IKON's determination to accelerate payments. If IKON accelerates
payment to more than 70% of all Participants pursuant to this provision, it must
accelerate payment to all Participants under the Plan in a comparable manner.

     22.  Change in Control.  In the event of a Change in Control (as defined
below), the Plan shall terminate, and the Participant shall receive, in a lump
sum payment, the balance in his cash deferral account and stock deferral
account, valued as of the end of the month in which such Change in Control
occurs. Distributions from a Participant's stock deferral account will be made
in (i) shares of stock (and cash in lieu of fractional shares) for stock units
credited to the account, unless the Participant elects, subject to the approval
of the Plan Administrator, to receive such distribution in cash, and (ii) in
cash for all other items credited to the account.

          For purposes of this Plan, the term "Change in Control" shall mean any
of the following events:

               (A)  any Person, together with its affiliates and associates (as
such terms are used in Rule 12b-2 of the Exchange Act), is or becomes the
beneficial owner (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of 15% or more of the then outstanding shares of IKON common stock;
or

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               (B)  the following individuals cease for any reason to constitute
a majority of the number of directors then serving: individuals who, on
September 30, 1997, constituted the Board and any new director whose appointment
or election by the Board or nomination for election by IKON's shareholders was
approved by a vote of at least a majority of the directors then still in office
who either were directors on September 30, 1997 or whose appointment, election
or nomination for election was previously so approved; or

               (C)  IKON consolidates with, or merges with or into, any other
Person (other than a wholly owned subsidiary of IKON), or any other Person
consolidates with, or merges with or into, IKON, and, in connection therewith,
all or part of the outstanding shares of common stock shall be changed in any
way or converted into or exchanged for stock or other securities or cash or any
other property; or

               (D)  a transaction or series of transactions in which, directly
or indirectly, IKON shall sell or otherwise transfer (or one or more of its
subsidiaries shall sell or otherwise transfer) assets (i) aggregating more than
50% of the assets (measured by either book value or fair market value) or (ii)
generating more than 50% of the operating income or cash flow of IKON and its
subsidiaries (taken as a whole) to any other Person or group of Persons.

          Notwithstanding the foregoing, no "Change in Control" shall be deemed
to have occurred if there is consummated any transaction or series of integrated
transactions immediately following which the record holders of IKON common stock
immediately prior to such transaction or series of transactions own a majority
of the outstanding voting shares and in substantially the same proportion in an
entity which owns all or substantially all of the assets of IKON immediately
following such transaction or series of transactions.

          The term "Person" in the foregoing definition shall have the meaning
given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections
13(d) and 14(d) thereof, except that such term shall not include (i) IKON or any
of its affiliates (as defined in Rule 12b-2 promulgated under the Exchange Act),
(ii) a trustee or other fiduciary holding securities under an employee benefit
plan of IKON or any of its affiliates, (iii) an underwriter temporarily holding
securities

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pursuant to an offering of such securities, or (iv) a corporation owned,
directly or indirectly, by the shareholders of IKON in substantially the same
proportions as their ownership of IKON stock.

     23.  Miscellaneous.

          (a)  The existence of this Plan and the Elections Forms hereunder, and
any actions undertaken pursuant hereto, shall not confer upon the Participant
any right to continued employment by IKON.

          (b)  This Plan shall be administered under and in accordance with the
laws of the Commonwealth of Pennsylvania, in which IKON's principal place of
business is located.

          (c)  The terms of this Plan and the Election Forms and other documents
executed in accordance herewith shall be binding upon IKON, its successors and
assigns, and each Participant, his heirs and legal representatives.

          (d)  Any taxes imposed on a Participant shall be the sole
responsibility of the Participant. IKON shall have the right to deduct from any
amounts payable under the Plan any federal, state or local taxes required to be
deducted or withheld from such payments.

          (e)  No expenses of administering the Plan shall be charged against
the Participants or any payments made hereunder, except that IKON may, in its
discretion, allocate certain taxes to the accounts of Participants.

          (f)  As used herein, the singular shall include the plural, the
masculine shall include the feminine, and vice versa.

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                                 Exhibit 10.45
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                             EMPLOYMENT AGREEMENT
                             --------------------

     AGREEMENT, made and entered into as of the 15th day of March, 1999 by and
between IKON Office Solutions, Inc., an Ohio corporation with its principal
office located at 70 Valley Stream Parkway, Malvern, Pennsylvania 19355
(together with its successors and assigns permitted under this Agreement, the
"Company") and Don H. Liu, who resides at 207 Lone Oak Drive, Bryn Mawr,
Pennsylvania 19010 (the "Executive");

                             W I T N E S S E T H:
                             - - - - - - - - - -

     WHEREAS, the Company desires to employ the Executive and to enter into an
agreement embodying the terms of such employment;

     WHEREAS, the Executive desires to accept employment with the Company,
subject to the terms and provisions of this Employment Agreement;

     NOW, THEREFORE, in consideration of the premises and mutual covenants
contained herein and for other good and valuable consideration, the receipt of
which is mutually acknowledged, the Company and the Executive (together, the
"Parties") agree as follows:

     1.  Definitions.
         -----------

         (A)  "Affiliate" of a Person shall mean a Person that directly or
indirectly controls, is controlled by, or is under common control with, the
Person specified.

         (B)  "Agreement" shall mean this Employment Agreement, which includes
for all purposes its Exhibits hereto.

         (C)  "Base Salary" shall mean the salary provided for in Section 4 or
any increased salary granted to the Executive pursuant to Section 4.

         (D)  "Board" shall mean the Board of Directors of the Company.

         (E)  "Cause" shall mean:

              (1) Executive fails to comply with any material written Company
policy, as the same may from time to time be adopted and/or modified by the
Company, including, but not limited to, the Company's Code of Ethics;

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              (2) Executive breaches his material obligations under the terms of
this Agreement; or

              (3) the Executive has committed an act of dishonesty, moral
turpitude or theft against the Company or has breached his duties of loyalty to
the Company.

         (F)  "Change in Control" shall mean the occurrence of any of the
following events:

            (I)    any "person," as such term is currently used in Section 13(d)
of the Securities Exchange Act of 1934, as amended, becomes a "beneficial
owner," as such term is currently used in Rule 13d-3 promulgated under that act,
of 15% or more of the Voting Stock of the Company;

            (II)   a majority of the Board consists of individuals other than
Incumbent Directors, which term means the members of the Board on the Effective
Date; provided that any individual becoming a director subsequent to such date
      -------- ----
whose election or nomination for election was supported by a majority of the
directors who then comprised the Incumbent Directors shall be considered to be
an Incumbent Director;

            (III)  the Company adopts any plan of liquidation providing for the
distribution of all or substantially all of its assets;

            (IV)   50% or more of the assets of the Company is disposed of
pursuant to a merger, consolidation or other transaction or series of
transactions (unless the shareholders of the Company immediately prior to such
merger, consolidation or other transaction or series of transactions
beneficially own, directly or indirectly, in substantially the same proportion
as they owned the Voting Stock of the Company, more than 50% of the Voting Stock
or other ownership interests of the entity or entities, if any, that succeed to
the business of the Company); or

            (V)    the Company combines with another company and is the
surviving corporation but, immediately after the combination, the shareholders
of the Company immediately prior to the combination hold 50% or less of the
Voting Stock of the combined company, (there being excluded from the number of
shares held by such shareholders, but not from the Voting Stock of the combined
company, any shares received by Affiliates of such other company in exchange for
stock of such other company).

         (G)  "Claim" shall mean any claim, demand, request, investigation,
dispute, controversy, threat, discovery request, or request for testimony or
information.

         (H)  "Committee" shall mean the Human Resources Committee of the Board;

         (I)  "Common Stock" shall mean common stock of the Company.

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         (J)  "Constructive Termination Without Cause" shall mean a termination
by the Executive of his employment hereunder on 30 days' written notice given by
him to the Company following the occurrence, without his prior written consent,
of any of the following events, unless the Company shall have fully cured all
grounds for such termination within 15 days after the Executive gives notice
thereof:

              (I)    any reduction in his then current Base Salary or in his
annual bonus opportunity set forth herein;

              (II)   any material failure to timely grant, or timely honor, any
equity or long-term incentive award under Section 6;

              (III)  any material breach of any of the Company's obligations,
representations or warranties in this Agreement;

              (IV)   any failure during the term of this Agreement to appoint,
elect or reelect him to any of the positions described in Section 3(A); the
removal of him during the term of this Agreement from any such position; or any
change in the reporting structure so that he reports to someone other than the
Chief Executive Officer of the Company;

              (V)    any material diminution in his duties or the assignment to
him of duties that materially impair his ability to perform his duties;

              (VI)   following any Change in Control, any relocation of the
Company's principal office, or of his own office as assigned to him by the
Company, to a location more than 50 miles from Malvern, Pennsylvania;

              (VII)  following any Change in Control, any failure by the Company
to continue in effect any compensation plan in which the Executive participated
immediately prior to such Change in Control and which is material to the
Executive's total compensation, including but not limited to the Company's stock
option, incentive compensation, deferred compensation, stock purchase, bonus and
other plans or any substitute plans adopted prior to the Change in Control,
unless an equitable arrangement (embodied in an ongoing substitute or
alternative plan) has been made with respect to such plan, or any failure by the
Company to continue the Executive's participation therein (or in such substitute
or alternative plan) on a basis no less favorable to the Executive, both in
terms of the amount of benefits provided and the level of the Executive's
participation relative to other participants, as existed immediately prior to
such Change in Control;

              (VIII) following any Change in Control, any failure by the Company
to continue to provide the Executive with benefits substantially similar to
those enjoyed by the Executive under any of the Company's pension, life
insurance, medical, health and accident, or disability plans in which the
Executive was participating immediately prior to such Change in Control, the
taking of any action by the Company which would directly or indirectly
materially reduce any of such benefits or deprive the Executive of any
perquisite

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enjoyed by the Executive at the time of such Change in Control, or the failure
by the Company to maintain a vacation policy with respect to the Executive that
is at least as favorable as the vacation policy (whether formal or informal) in
place with respect to the Executive immediately prior to such Change in Control;

            (IX)   following any Change in Control, any failure to elect
Executive as General Counsel of the Person acquiring the Company with duties and
responsibilities of comparable scope to Executive's duties and responsibilities
immediately prior to such Change in Control; or

            (X)    the failure of the Company to obtain the assumption in
writing of its obligation to perform this Agreement by any successor to all or
substantially all of the assets of the Company within 15 days after a merger,
consolidation, sale or similar transaction.

         (K)  "Disability" shall mean Total Disability as defined in the
Company's Long-Term Disability Plan, as amended from time to time.

         (L)  "Effective Date" shall mean March 15, 1999 or such later date as
the Parties may mutually agree to.

          M)  "Person" shall mean any individual, corporation, partnership,
limited liability company, joint venture, trust, estate, board, committee,
agency, body, employee benefit plan, or other person or entity.

         (N)  "Potential Change in Control" shall mean the occurrence of any of
the following events:

            (I)    the Company enters into an agreement, the consummation of
which will result in the occurrence of a Change in Control;

            (II)   the Company or any Person publicly announces an intention to
take or to consider taking actions which, if consummated, will constitute a
Change in Control; or

            (III)  the Board adopts a resolution to the effect that, for
purposes of this Agreement, a Potential Change in Control has occurred.

         (O)  "Proceeding" shall mean any threatened or actual action, suit or
proceeding, whether civil, criminal, administrative, investigative, appellate or
other.

         (P)  "Pro-Rata" shall mean a fraction, the numerator of which is the
number of days that the Executive was employed in the applicable performance
period (a fiscal year in the case of an annual bonus) and the denominator of
which shall be the number of days in the applicable performance period.

                                       4
<PAGE>

         (Q)  "Restricted Stock" shall mean the Common Stock referred to in
Section 6(C).

         (R)  "Special Stock Option" shall mean the stock option referred to in
Section 6(A).

         (S)  "Term of Employment" shall mean the period specified in Section 2.

         (T)  "Termination Date" shall mean the date on which the Executive's
employment hereunder terminates in accordance with this Agreement.

         (U)  "Voting Stock" shall mean issued and outstanding capital stock or
other securities of any class or classes having general voting power, under
ordinary circumstances in the absence of contingencies, to elect, in the case of
a corporation, the directors of such corporation and, in the case of any other
entity, the corresponding governing Person(s).

     2.  Term of Employment.
         ------------------

         The Company hereby employs the Executive under this Agreement, and the
Executive hereby accepts such employment, for the Term of Employment. The Term
of Employment shall commence as of the Effective Date and shall end on the
second anniversary thereof. Notwithstanding the foregoing, the Term of
Employment may be earlier terminated in accordance with the provisions of
Section 8.

     3.  Positions, Duties and Responsibilities.
         --------------------------------------

         (A)  During the Term of Employment, the Executive shall serve as Senior
Vice President and General Counsel of the Company; shall have the authority,
duties and responsibilities customarily exercised by an individual serving in
those positions in a corporation of the size and nature of the Company; shall
perform such duties relating to the management and operations of the Company,
consistent with the foregoing, as may from time to time be assigned to him by
the Chief Executive Officer of the Company (the "CEO"); shall be assigned no
duties or responsibilities that are materially inconsistent with, or that
materially impair his ability to discharge, the foregoing duties and
responsibilities; and shall report solely and directly to the CEO.

         (B)  During the Term of Employment, Executive will (1) devote
substantial and full-time attention and energies to the business of the Company,
particularly to its legal function, and diligently perform all duties incident
to his employment; (2) use his best efforts to promote the interests and
goodwill of the Company; and (3) perform such duties commensurate with his
office as Senior Vice President and General Counsel of the Company as may be
assigned to him by the CEO.

                                       5
<PAGE>

4.  Base Salary.
    -----------

          Commencing as of the Effective Date, the Executive shall be paid an
annualized Base Salary of $275,000, payable in accordance with the regular
payroll practices of the Company. The Base Salary shall be reviewed no less
frequently than annually for increase in the discretion of the CEO and, if
applicable, the Board.

     5.   Annual Incentive Awards.
          -----------------------

          The Executive shall be eligible for an annual incentive bonus award
from the Company in respect of each fiscal year of the Company that ends during
the Term of Employment. He shall be eligible to receive an annual bonus of no
less than $200,000, 50% of which shall be based solely upon the performance of
the Company and 50% of which shall be based solely upon the performance of the
Executive (the criteria for which shall be set forth as agreed upon between the
CEO and the Executive). In addition, beginning with the 2000 fiscal year, and in
the sole discretion of the CEO, the Executive may be eligible to receive an
additional annual overachievement bonus. To the extent earned, the Executive
shall be paid his annual incentive awards at the same time that other senior-
level executives receive their incentive awards.

      6.  Long-Term Incentive Awards.
          --------------------------

          (A) Special Stock Option Award.  As of the Effective Date, the Company
              --------------------------
shall grant the Executive a ten-year option to purchase 40,000 shares of Common
Stock. Such option shall become exercisable over a period of five years from the
Effective Date in five equal annual installments commencing on the first
anniversary date of the Effective Date, subject to the terms, conditions and
adjustments set forth in Section 8 below.

          (B) Regular Stock Option Award.  In addition to the Special Stock
              ---------------------------
Option described above, as of the Effective Date, the Company shall grant the
Executive a ten-year option to purchase 35,000 shares of Common Stock. Such
option shall become exercisable over a period of five years from the Effective
Date in five equal annual installments commencing on the first anniversary date
of the Effective Date, subject to the terms, conditions and adjustments set
forth in Section 8 below.

          (C) Restricted Stock Award.  As of the Effective Date, the Company
              ----------------------
shall grant the Executive 25,000 shares of restricted Common Stock. Such
restricted Common Stock shall vest over a period of five years from the
Effective Date in three equal annual installments commencing on the third
anniversary date of the Effective Date, subject to the terms, conditions and
adjustments set forth in Section 8 below.

      7.  Other Benefits.
          --------------

          (A) Other Executive Compensation Plans.  During the Term of
              ----------------------------------
Employment, the Executive shall be entitled to participate in all compensation
plans and

                                       6
<PAGE>

programs made generally available to senior executives of the Company,
including, without limitation, the Executive Deferred Compensation Plan.

         (B) Employee Benefits.  During the Term of Employment, the Executive
             -----------------
shall participate in all employee benefit plans and programs made available
generally to the Company's senior executives, including, without limitation,
pension, profit-sharing, savings and other retirement plans or programs,
medical, dental, hospitalization, short-term and long-term disability and life
insurance plans or programs, accidental death and dismemberment protection,
travel accident insurance, and any other employee welfare or retirement benefit
plans or programs that may be sponsored by the Company from time to time,
including any plans or programs that supplement the above-listed types of plans
or programs, whether funded or unfunded.

         (C) Expenses.  The Executive is authorized to incur reasonable
             --------
expenses in carrying out his duties and responsibilities hereunder and the
Company shall promptly reimburse him for all such expenses, subject to
documentation in accordance with reasonable policies of the Company.

         (D) Vacation.  Executive shall be entitled to four weeks paid vacation
             --------
per year.

     8.  Termination of Employment.
         -------------------------

         (A) Termination Due to Death.  In the event that the Executive's
             ------------------------
employment hereunder is terminated due to his death, his estate or his
beneficiaries (as the case may be) shall be entitled to:

             (I)    Base Salary through the end of the month in which his death
occurs;

             (II)   a Pro-Rata annual incentive award for the fiscal year in
which his death occurs, based on the Executive's annual bonus opportunity for
the year of death (excluding any overachievement bonus opportunity), payable in
a lump sum promptly following his death, regardless of the Executive's and
Company's performance during such fiscal year;

             (III)  the continued right to exercise each outstanding stock
option, including the Special Stock Option, for a period of 12 months, all such
options to become fully exercisable as of the date of his death, and the
immediate vesting of all shares of Restricted Stock as of the date of his death;

             (IV)   immediate vesting in the Company's Retirement Savings Plan
(or any successor 401(k) plan), pension plan, supplemental retirement plan and
deferred compensation plans; and

             (V)    the benefits described in Section 8(I)(I).

                                       7
<PAGE>

         (B) Termination Due to Disability.  In the event that the Executive's
             -----------------------------
employment hereunder is terminated due to Disability, he shall be entitled to
the following:

             (I)     periodic disability payments in accordance with the
Company's Long-Term Disability Plan;

             (II)    Base Salary through the end of the month in which the
Termination Date occurs;

             (III)   a Pro-Rata annual incentive award for the fiscal year in
which his Termination Date occurs, based on the Executive's annual bonus
opportunity for such fiscal year (excluding any overachievement bonus
opportunity), payable in a lump sum promptly following the Termination Date,
regardless of the Executive's and Company's performance during such fiscal year;

             (IV)    the continued right to exercise each outstanding stock
option, including the Special Stock Option, for a period of 12 months, all such
options to become fully exercisable as of the Termination Date, and the
immediate vesting of all shares of Restricted Stock as of the Termination Date;
and

             (V)     continued participation, for a period of two years from the
Termination Date, in all medical, dental, vision, hospitalization, disability
and life insurance coverages and in all other employee welfare benefit plans,
programs and arrangements in which he was participating on the date on which his
employment terminates, on terms and conditions that are no less favorable to him
than those that applied on such date, and with COBRA benefits commencing
thereafter; provided that the Company's obligation under this Section 8(B)(V)
            -------- ----
shall be reduced to the extent that equivalent coverages and benefits
(determined on a coverage-by-coverage and benefit-by-benefit basis) are provided
under the plans, programs or arrangements of a subsequent employer; and

             (VI)    immediate vesting in the Company's Retirement Savings Plan
(or any successor 401(k) plan), pension plan, supplemental retirement plan and
deferred compensation plans; and

             (VII)   the benefits described in Section 8(I)(I).

             No termination of the Executive's employment for Disability shall
be effective unless the Company first gives 15 days written notice of such
termination to Executive.

         (C) Termination by the Company for Cause.
             ------------------------------------

             (I)   No termination of the Executive's employment hereunder by the
Company for Cause shall be effective unless the provisions of this Section
8(C)(I) shall have been complied with. The Executive shall be given written
notice by the CEO of the

                                       8
<PAGE>

intention to terminate him for Cause, such notice to state in detail the
particular circumstances that constitute the grounds on which the proposed
termination for Cause is based. Except in the case of a termination for Cause
pursuant to Section 1(E)(1) or Section 1(E)(3) which will be effective, in the
sole discretion of the CEO, on the date set forth in the notice, the Executive
shall have 15 days after receiving such notice in which to cure such grounds, to
the extent such cure is possible If he fails to cure such grounds, his
employment hereunder shall thereupon be terminated for Cause.

                   (II)     In the event that the Executive's employment
hereunder is terminated by the Company for Cause in accordance with Section
8(C)(I), he shall be entitled to:

                            (A)  expiration and forfeiture of any stock options,
including the Special Stock Option, unexercisable on the Termination Date;

                            (B)  30 days to exercise any stock option
exercisable on the Termination Date; and

                            (C)  the benefits described in Section 8(I)(I).

         (D)       Termination Without Cause.  In the event that the Executive's
                   -------------------------
employment hereunder is terminated by the Company without Cause and Section
8(A), (B) or (F) does not apply, then the Executive shall be entitled to:

         (I)       Base Salary for a two-year period ending on the second
anniversary of the Termination Date, payable as provided in Section 4, provided,
however, that if Executive earns any employment income, self-employment income
or consulting income from other sources during such two-year period, Executive
shall provide written notice to the Company setting forth the nature and amount
of such income, which shall be offset against Base Salary payments in excess of
$275,000 otherwise due to the Executive, so that the Executive will receive no
less than $275,000 pursuant to this Section 8(D)(I), regardless of other income;

         (II)      a Pro-Rata annual incentive award for the fiscal year in
which the Termination Date occurs, based on the Executive's annual bonus
opportunity for such fiscal year (excluding any overachievement bonus
opportunity), payable in a lump sum promptly following the Termination Date,
regardless of the Executive's and Company's performance during such fiscal year;

         (III)     the continued right to exercise the Special Stock Option for
a period of two years from the Termination Date, such Special Stock Option to
become fully exercisable as of the Termination Date, and the immediate vesting
of all shares of Restricted Stock as of the Termination Date;

         (IV)      the continued right to exercise any outstanding stock option,
other than the Special Stock Option, for a period of 3 months from the
Termination Date;

                                       9
<PAGE>

          (V)      continued participation, through the second anniversary of
the Termination Date, in all medical, dental, vision, hospitalization,
disability and life insurance coverages and in all other employee welfare
benefit plans, programs and arrangements in which he or his family members were
participating on such date, on terms and conditions that are no less favorable
to him than those that applied on such date and with COBRA benefits commencing
thereafter; provided that the Company's obligation under this Section 8(D)(V)
            -------- ----
shall be reduced to the extent that equivalent coverages and benefits
(determined on a coverage-by-coverage and benefit-by-benefit basis) are provided
under the plans, programs or arrangements of a subsequent employer;

                   (VI)    immediate vesting in the Company's Retirement Savings
Plan (or any successor 401(k) plan), pension plan, supplemental retirement plan,
and deferred compensation plans; and

                   (VII)   the benefits described in Section 8(I)(I).

          (E)      Constructive Termination Without Cause. In the event that (x)
                   --------------------------------------
a Constructive Termination Without Cause occurs and (y) Section 8(F) does not
apply, then the Executive shall have the same entitlements as provided under
Section 8(D) for a termination by the Company without Cause.

          (F)      Termination Without Cause Following a Change in Control or
                   ----------------------------------------------------------
Potential Change in Control.  In the event that (x) the Executive's employment
---------------------------
hereunder is terminated (A) through a Constructive Termination without Cause or
(B) by the Company without Cause and (y) the termination of employment occurs
within two years following a Change in Control then the Executive shall be
entitled to:

                   (I)     Base Salary through the second anniversary of the
Termination Date, payable as provided in Section 4;

                   (II)    a Pro-Rata annual incentive award for the fiscal year
in which his employment terminates based on the Executive's annual bonus
opportunity for the year of termination (excluding any overachievement bonus
opportunity), payable in a lump sum promptly following the Termination Date,
regardless of the Executive's and Company's performance during such fiscal year;

                   (III)   an annual incentive award for a period of 24 months
following the Termination Date, based on the Executive's annual bonus
opportunity for the year of termination (excluding any overachievement bonus
opportunity) payable in equal installments over the 24-month period for which
Base Salary is continued;

                   (IV)    the continued right to exercise the Special Stock
Option for a period of two years from the Termination Date, such Special Stock
Option to become fully exercisable as of the Termination Date;

                                       10
<PAGE>

                   (V)     the continued right to exercise any outstanding stock
option, other than the Special Stock Option, for a period of 3 months from the
Termination Date, all such options to become fully exercisable as of the
Termination Date;

                   (VI)    the immediate vesting of all shares of Restricted
Stock as of the Termination Date;

                   (VII)   an amount equal to the Company's contributions to
which the Executive would have been entitled under the Company's Retirement
Savings Plan (or any successor thereto) if the Executive had continued working
for the Company and the Retirement Savings Plan continued in force during the
Separation Period at the highest annual rate of Base Salary achieved during the
Executive's period of actual employment with the Company, and making the maximum
amount of employee contributions, if any, as are required under such plan;

                   (VIII)  an amount equal to the excess of (A) the present
value of the benefits to which the Executive would be entitled under the
Company's pension plan and Company's supplemental retirement plan (and any
successor thereto) if the Executive had continued working for the Company for a
period of 24 months following the Termination Date at the highest annual rate of
Base Salary achieved during the Executive's period of actual employment with the
Company, and the pension plan continued in force during the Separation Period,
over (B) the present value of the benefits to which the Executive is actually
entitled under the Company's pension plan and supplemental retirement plan, each
computed as of the date of the Executive's Date of Termination, with present
values to be determined using the discount rate used by the Pension Benefits
Guaranty Corporation to calculate the benefit liabilities under the pension plan
in the event of a plan termination on the Date of Termination, compounded
monthly, the mortality tables prescribed in the Company's Pension Plan for
determining actuarial equivalence, and the reduction factor (if any) for the
early commencement of pension payments based on the Executive's age on the last
day of the 24th month following the Termination Date;

                   (IX)    immediate vesting in the Company's Retirement Savings
Plan (or any successor 401(k) plan), pension plan, supplemental retirement plan
and deferred compensation plans;

                   (X)     continued participation, through the second
anniversary of the Termination Date, in all medical, dental, vision,
hospitalization, disability and life insurance coverages and in all other
employee welfare benefit plans, programs and arrangements in which he or his
family members were participating on such date, on terms and conditions that are
no less favorable to him than those that applied on such date and with COBRA
benefits commencing thereafter, provided that the Company's obligation under
this Section 8(F)(X) shall be reduced to the extent that equivalent coverages
and benefits (determined on a coverage-by-coverage and benefit-by-benefit basis)
are provided under the plans, programs or arrangements of a subsequent employer;
and

                   (XI)    the benefits described in Section 8(I)(I).

                                       11
<PAGE>

               For purposes of this Section 8(F), if preceded by a Potential
Change in Control, any of the following events (if such event occurs within two
years following such Potential Change in Control) shall be deemed to be a
Termination of Executive's Employment without Cause following a Change in
Control: 1) the Executive's employment is terminated without Cause and such
termination is at the request or direction of or pursuant to negotiations with a
Person who has entered into an agreement with the Company the consummation of
which will constitute a Change in Control; 2) the Executive's employment is
terminated through a Constructive Termination Without Cause and the
circumstances or events which constitute the basis for Executive's claim of
Constructive Termination occur at the request or direction of, or pursuant to
negotiations with, such Person, or 3) the Executive's employment is terminated
without Cause and such termination is otherwise in connection with or in
anticipation of a Change in Control which actually occurs.

          The Company agrees that the Executive is not required to seek other
employment or to attempt in any way to reduce amounts payable to Executive under
this Section 8(F), and the amounts payable to pursuant to this Section 8(F)
shall not be reduced by any amounts earned by or payable to Executive, except as
provided in Section 8(F)(X).

          (G) Voluntary Termination.  In the event that the Executive terminates
              ---------------------
his employment with the Company on his own initiative, other than by death, for
Disability, by a Constructive Termination without Cause or by giving notice in
accordance with Section 2, then he shall have the same entitlements as provided
in Section 8(C)(II) in the case of a termination by the Company for Cause. A
voluntary termination under this Section 8(G) shall be effective upon written
notice to the Company and shall not be deemed a breach of this Agreement.

          (H) Termination by the Expiration of the Term of Employment.  In the
              -------------------------------------------------------
event that the Executive's employment hereunder is terminated due to the
Company's failure to renew this Agreement on terms at least as favorable to
Executive as the terms set forth herein, such termination shall be considered a
termination by the Company Without Cause, and the Executive shall be entitled to
the benefits set forth in Section 8(D).

          (I) Miscellaneous.
              -------------

              (I)  On any termination of the Executive's employment hereunder,
he shall be entitled to:

                   (A) Base Salary through the Termination Date;

                   (B) any amounts due him under Section 7;

                   (C) a lump-sum payment in respect of accrued but unused
vacation days at his Base Salary rate in effect as of the Termination Date;

                                       12
<PAGE>

                    (D) payment, promptly when due, of all amounts owed to him
in connection with the termination; and

                    (E) other benefits, if any, in accordance with applicable
plans, programs and arrangements of the Company, provided that Executive shall
                                                 -------- ----
not be eligible to receive payments under any severance program of the Company
applicable to employees generally.

               (II) Any amounts due under this Section 8 are considered to be
reasonable by the Company and are not in the nature of a penalty.

     9.      Golden Parachute Tax.  In the event that any payment or benefit
             --------------------
made or provided to or for the benefit of the Executive in connection with this
Agreement, the Executive's employment with the Company, or the termination
thereof (a "Payment") is determined to be subject to any excise tax ("Excise
Tax") imposed by Section 4999 of the Code (or any successor to such Section),
the Company shall pay to the Executive, prior to the time any Excise Tax is
payable with respect to such Payment (through withholding or otherwise), an
additional amount which, after the imposition of all income, employment, excise
and other taxes, penalties and interest thereon, is equal to the sum of (i) the
Excise Tax on such Payment plus (ii) any penalty and interest assessments
associated with such Excise Tax. The determination of whether any Payment is
subject to an Excise Tax and, if so, the amount to be paid by the Company to the
Executive and the time of payment shall be made by an independent auditor (the
"Auditor") selected jointly by the Parties and paid by the Company. Unless the
Executive agrees otherwise in writing, the Auditor shall be a nationally
recognized United States public accounting firm that has not, during the two
years preceding the date of its selection, acted in any way on behalf of the
Company or any of its Affiliates. If the Parties cannot agree on the firm to
serve as the Auditor, then the Parties shall each select one accounting firm and
those two firms shall jointly select the accounting firm to serve as the
Auditor.

     10.   Indemnification; D&O Insurance.
           ------------------------------

           (A) Indemnification.  The Company agrees that (i) if the Executive is
               ---------------
made a party, or is threatened to be made a party, to any Proceeding by reason
of the fact that he is or was a director, officer, employee, agent, manager,
consultant or representative of the Company or is or was serving at the request
of the Company or any of its Affiliates as a director, officer, member,
employee, agent, manager, consultant or representative of another Person or (ii)
if any Claim is made, or threatened to be made, that arises out of or relates to
this Agreement or the Executive's service hereunder or in any of the foregoing
capacities, then the Executive shall promptly be indemnified and held harmless
by the Company to the fullest extent legally permitted or authorized by the
Company's Articles of Incorporation, Code of Regulations or Board resolutions or
by the laws of the State of Ohio, against any and all costs, expenses,
liabilities and losses (including, without limitation, attorney's fees,
judgments, interest, expenses of investigation, penalties, fines, ERISA excise
taxes or penalties and amounts paid or to be paid in settlement) incurred or
suffered by the Executive in connection therewith, and such indemnification
shall continue as to the Executive even if

                                       13
<PAGE>

he has ceased to be a director, member, employee, agent, manager, consultant or
representative of the Company or other Person and shall inure to the benefit of
the Executive's heirs, executors and administrators. The Company shall advance
to the Executive all costs and expenses incurred by him in connection with any
such Proceeding or Claim within 20 days after receiving written notice
requesting such an advance. Such notice shall include, to the extent required by
applicable law, an undertaking by the Executive to repay the amount advanced if
he is ultimately determined not to be entitled to indemnification against such
costs and expenses.

          (B) D&O Insurance.  During the Term of Employment and for a period of
              -------------
six years thereafter, the Company shall keep in place a directors' and officers'
liability insurance policy (or policies) providing comprehensive coverage to the
Executive to the extent that the Company provides such coverage for any other
senior executive or director.

     11.  Covenants.
          ---------

          (A) Confidentiality.  During the Term of Employment and thereafter,
              ---------------
the Executive shall not, without the prior written consent of the Company,
divulge, disclose or make accessible to any Person any confidential non-public
document, record or information concerning the business or affairs of the
Company that he has acquired in the course of his employment hereunder, except
(x) to the Company or to any authorized (or apparently authorized) agent or
representative of the Company, (y) in connection with performing his duties
under this Agreement, or (z) when required to do so by law or by a court,
governmental agency, legislative body, or other Person with apparent
jurisdiction to order him to divulge, disclose or make accessible such
information; provided that these restrictions shall not apply to any document,
             -------- ----
record or other information that (i) has previously been disclosed to the
public, or is in the public domain, other than as a result of the Executive's
breach of this Section 11(A), or (ii) is known or generally available within any
trade or industry of the Company.

          (B) Non-Solicitation.  During the 12-month period that commences on
              ----------------
the Termination Date and ends on the second anniversary of the Termination Date,
the Executive shall not without the prior consent of the Company:

              (I)     solicit, on his own behalf or on behalf of any other
Person, any individual known by the Executive to be an employee of the Company
to instead become an employee of any Person not affiliated with the Company; or

              (II)    solicit, on his own behalf or on behalf of any other
Person, any Person known by the Executive to be customer of, or vendor to, the
Company to instead become a customer of, or vendor to, any Person not affiliated
with the Company.

          (C) Non-Competition.  During the 12-month period that commences on the
              ---------------
Termination Date and ends on the first anniversary of the Termination Date, the
Executive shall not, without the prior consent of the Company, directly or
indirectly own, manage, operate, join, control or participate in the ownership,
management, operation or

                                       14
<PAGE>

control of, or be employed by or otherwise connected in any substantial manner
with any business which directly or indirectly competes to a material extent
with any line of business of the Company or its subsidiaries which was operated
by the Company or its subsidiaries at the Termination Date; provided that
nothing in this paragraph shall prohibit the Executive from acquiring up to 5%
of any class of outstanding equity securities of any corporation whose equity
securities are regularly traded on a national securities exchange or in the
"over-the-counter market," and provided further, that the foregoing restriction
of this Section 11(C) shall not be construed as to require Executive to violate
the Rules of Professional Conduct (applicable to attorneys).

          The foregoing noncompetition restriction of this Section 11(C) shall
not apply following a Change of Control Event if (v) the Executive's employment
has been terminated by the Company without Cause within two years following such
Change in Control Event, (w) the Executive terminates his employment as the
result of a Constructive Termination within two years following such Change in
Control Event or (x) the Company elects, within two years following such Change
in Control Event, not to extend the Term of Employment.

          The foregoing noncompetition restriction of this Section 11(C) shall
not apply following a Potential Change in Control if: 1) the Executive's
employment is terminated without Cause within two years following such Potential
Change in Control, and such termination is at the request or direction of or
pursuant to negotiations with a Person who has entered into an agreement with
the Company the consummation of which will constitute a Change in Control; 2)
the Executive's employment is terminated through a Constructive Discharge
without Cause within two years following such Potential Change in Control, and
the circumstances or events which constitute the basis for Executive's claim of
Constructive Discharge occur at the request or direction of, or pursuant to
negotiations with, such Person, 3) the Company elects, within two years
following such Potential Change in Control, not to extend the Term of
Employment, and such election was at the request or direction of or pursuant to
negotiations with such Person; or 4) the Executive's employment is terminated
without Cause within two years following such Potential Change in Control and
such termination is otherwise in connection with or in anticipation of a Change
in Control which actually occurs.

     12.  Assignability; Binding Nature.
          -----------------------------

          This Agreement shall be binding upon and inure to the benefit of the
Parties and their respective successors, heirs (in the case of the Executive)
and assigns. No rights or obligations of the Company under this Agreement may be
assigned or transferred by the Company except that such rights or obligations
may be assigned or transferred pursuant to a merger or consolidation in which
the Company is not the continuing entity, or a sale or liquidation of all or
substantially all of the assets of the Company; provided that the assignee or
                                                -------- ----
transferee is the successor to all or substantially all of the assets of the
Company and such assignee or transferee assumes the liabilities, obligations and
duties of the Company, as contained in this Agreement, either contractually or
as a matter of law. In the event of any sale of assets or liquidation as
described in the preceding sentence, the Company shall use its best efforts to
cause such assignee or transferee to expressly assume the liabilities,

                                       15
<PAGE>

obligations and duties of the Company hereunder. No rights or obligations of the
Executive under this Agreement may be assigned or transferred by the Executive
other than his rights to compensation and benefits, which may be transferred
only by will or operation of law, except as provided in Section 16(E).

     13.  Representations.
          ---------------

          (A) The Company's Representations.  The Company represents and
              -----------------------------
warrants that (i) it is fully authorized by action of its Board (and of any
other Person or body whose action is required) to enter into this Agreement and
to perform its obligations under it; (ii) the execution, delivery and
performance of this Agreement by the Company does not violate any applicable
law, regulation, order, judgment or decree or any agreement, plan or corporate
governance document of the Company; and (iii) upon the execution and delivery of
this Agreement by the Parties, this Agreement shall be the valid and binding
obligation of the Company, enforceable against the Company in accordance with
its terms, except to the extent enforceability may be limited by applicable
bankruptcy, insolvency or similar laws affecting the enforcement of creditors'
rights generally.

          (B) The Executive's Representations. The Executive represents and
              -------------------------------
warrants that, to the best of his knowledge and belief, (i) delivery and
performance of this Agreement by him does not violate any applicable law,
regulation, order, judgment or decree or any agreement to which the Executive is
a party or by which he is bound, and (ii) upon the execution and delivery of
this Agreement by the Parties, this Agreement shall be the valid and binding
obligation of the Executive, enforceable against him in accordance with its
terms, except to the extent enforceability may be limited by applicable
bankruptcy, insolvency or similar laws affecting the enforcement of creditors'
rights generally.

     14.  Resolution of Disputes.
          ----------------------

          Any Claim arising out of or relating to this Agreement or the
Executive's employment with the Company or the termination thereof shall be
resolved by binding confidential arbitration, to be held in Philadelphia,
Pennsylvania, in accordance with the Commercial Arbitration Rules of the
American Arbitration Association. Judgment upon the award rendered by the
arbitrator(s) may be entered in any court having jurisdiction thereof. The
Company shall promptly pay all costs and expenses, including without limitation
attorneys' fees, incurred by the Executive or his beneficiaries in resolving any
such Claim. Pending the resolution of any Claim, the Executive (and his
beneficiaries) shall continue to receive all payments and benefits due under
this Agreement.

     15.  Notices.
          -------

          Any notice, consent, demand, request, or other communication given to
a Person in connection with this Agreement shall be in writing and shall be
deemed to have been given to such Person (a) when delivered personally to such
Person or (b), provided that a written acknowledgment of receipt is obtained,
two days after being sent by prepaid certified or registered mail, or by a
nationally recognized overnight courier, to the address

                                       16
<PAGE>

specified below for such Person (or to such other address as such Person shall
have specified by ten days advance notice given in accordance with this Section
15), or (c) in the case of the Company only, on the first business day after it
is sent by facsimile to the facsimile number set forth for the Company (or to
such other facsimile number as the Company shall have specified by ten days
advance notice given in accordance with this Section 15), with a confirmatory
copy sent by certified or registered mail or by overnight courier to the Company
in accordance with this Section 15.

If to the Company:      IKON Office Solutions, Inc.
                        70 Valley Stream Parkway
                        Malvern, Pennsylvania 19355
                        Attn:  Chief Executive Officer
                        Facsimile #:  610-725-8279

If to the Executive:    Don H. Liu
                        207 Lone Oak Drive
                        Bryn Mawr, Pennsylvania 19010
                        (with a copy to the Executive at the Company's address)

If to a beneficiary     The address most recently specified by the Executive or
 of the Executive:      beneficiary through notice given in accordance with this
                        Section 15.

     16.  Miscellaneous.
          -------------

          (A) Entire Agreement.  This Agreement contains the entire
              ----------------
understanding and agreement between the Parties concerning the subject matter
hereof and supersedes all prior agreements, understandings, discussions,
negotiations and undertakings, whether written or oral, between the Parties with
respect thereto.

          (B) Severability.  In the event that any provision or portion of this
              ------------
Agreement shall be determined to be invalid or unenforceable for any reason, in
whole or in part, the remaining provisions of this Agreement shall be unaffected
thereby and shall remain in full force and effect to the fullest extent
permitted by law so as to achieve the purposes of this Agreement.

          (C) Amendment or Waiver.  No provision in this Agreement may be
              -------------------
amended unless such amendment is set forth in a writing signed by the Parties.
No waiver by either Party of any breach of any condition or provision contained
in this Agreement shall be deemed a waiver of any similar or dissimilar
condition or provision at the same or any prior or subsequent time. To be
effective, any waiver must be set forth in a writing signed by the waiving
Party.

                                       17
<PAGE>

          (D) Headings.  The headings of the Sections contained in this
              --------
Agreement are for convenience only and shall not be deemed to control or affect
the meaning or construction of any provision of this Agreement.

          (E) Beneficiaries/References.  The Executive shall be entitled, to the
              ------------------------
extent permitted under any applicable law, to select and change a beneficiary or
beneficiaries to receive any compensation or benefit hereunder following the
Executive's death by giving the Company written notice thereof. In the event of
the Executive's death or a judicial determination of his incompetence,
references in this Agreement to the Executive shall be deemed, where
appropriate, to refer to his beneficiary, estate or other legal representative.

          (F) Survivorship.  Except as otherwise set forth in this Agreement,
              ------------
the respective rights and obligations of the Parties hereunder shall survive any
termination of the Executive's employment.

          (G) Governing Law/Jurisdiction.  This Agreement shall be governed,
              --------------------------
construed, performed and enforced in accordance with the laws of the State of
Pennsylvania, without reference to principles of conflict of laws.

          (H) Counterparts.  This Agreement may be executed in two or more
              ------------
counterparts.

          (I)  Employee Benefit Plans. In the event that the terms of any of the
               -----------------------
Company's employee benefit plans provide for the vesting or distribution of
benefits on a date earlier than the date set forth in this Agreement, such
earlier date shall prevail.

     IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the
date first set forth above.

                              The Company

                              By: ______________________________
                              Title:

                              The Executive

                              _________________________________
                              Don H. Liu

                                       18

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