Document:

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                                                                  Exhibit 10.2

                                                                  EXECUTION COPY

                              EMPLOYMENT AGREEMENT

                                     BETWEEN

                       PIONEER-STANDARD ELECTRONICS, INC.

                                       AND

                                  ARTHUR RHEIN

                                                                  April 26, 2000
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                                TABLE OF CONTENTS

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                                                                                                               Page

<S>                                                                                                            <C>
Employment........................................................................................................1

Period of Employment..............................................................................................1

Position, Duties, Responsibilities................................................................................2

Compensation, Compensation Plans,  Perquisites....................................................................2

Employee Benefit Plans............................................................................................3

Effect of Death or Disability.....................................................................................4

Termination.......................................................................................................5

         General..................................................................................................5

         Change in Control........................................................................................5

         For Cause or Voluntary Termination Without a Good Reason.................................................7

         Without Cause or Voluntary Termination for a Good Reason.................................................7

         Arbitration..............................................................................................8

Non-Competition, Confidential Information and Non-Interference....................................................8

Withholding......................................................................................................10

Notices..........................................................................................................10

General Provisions...............................................................................................11

Amendment or Modification; Waiver................................................................................12

Severability.....................................................................................................12

Successors to the Company........................................................................................13

Operation of Agreement...........................................................................................13

Enforcement Costs................................................................................................14

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                              EMPLOYMENT AGREEMENT

         EMPLOYMENT AGREEMENT between PIONEER-STANDARD ELECTRONICS, INC., an
Ohio corporation (the "Company"), and ARTHUR RHEIN ("Rhein"), dated April 26,
2000, effective April 1, 2000.

                           W I T N E S S E T H:

         WHEREAS: Rhein has been providing services to the Company as President
and Chief Operating Officer pursuant to an Amended and Restated Employment
Agreement dated April 27, 1999, effective April 1, 1999, between Rhein and the
Company (the "1999 Agreement");

         WHEREAS: The Company and Rhein desire to replace the 1999 Agreement
with a new Employment Agreement in order to reflect certain modifications to the
terms and conditions of Rhein's employment as President and Chief Operating
Officer;

         WHEREAS: A new Employment Agreement containing such modified terms is
deemed necessary at the present time to meet the need for a continued strong
management without substantial change;

         WHEREAS: Together with other officers of the Company, Rhein has been
responsible for the success of the business of the Company.

         NOW, THEREFORE, it is hereby agreed by and between the Company and
Rhein as follows:

1.       EMPLOYMENT

                  The Company hereby agrees to continue to employ Rhein, and
         Rhein hereby agrees to remain in the employ of the Company, for the
         period set forth in Section 2 hereof (the "Period of Employment"), in
         the position and with the duties and responsibilities set forth in
         Section 3 hereof, and upon the other terms and conditions hereinafter
         stated.

2.       PERIOD OF EMPLOYMENT

                  For purposes of this Agreement, the Period of Employment,
         subject only to the provisions of Section 6 hereof, shall continue for
         a one-year period from the effective date hereof and thereafter on a
         year-to-year basis (i) subject to termination of this Agreement by the
         Company effective as of the next anniversary of the effective date
         hereof following written notice of termination, which notice must be
         given to Rhein no later than February 1 of the Company's then current
         fiscal year, or (ii) until the earlier termination of employment as set
         forth in Section 7 hereof.

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3.       POSITION, DUTIES, RESPONSIBILITIES

         3.01 PRESIDENT AND CHIEF OPERATING OFFICER. During the Period of
         Employment, Rhein shall serve as President and Chief Operating Officer
         of the Company reporting to the Chief Executive Officer of the Company
         and shall have the responsibility for all of the operations of the
         Company including the authority, power and duties with regard to his
         position as may from time to time be assigned by the Chief Executive
         Officer or the Board of Directors of the Company.

         3.02 BOARD MEMBERSHIP. It is further contemplated that at all times
         during the Period of Employment Rhein shall serve and continue to serve
         as a member of its Board of Directors. In the event that Rhein's
         employment is terminated for any reason as provided in Section 7
         hereof, Rhein agrees that he shall immediately submit his written
         resignation as a member of the Board of Directors of the Company, which
         may choose to either accept or reject such resignation.

         3.03 ATTENTION TO DUTIES. Throughout the Period of Employment, Rhein
         shall devote his full time and undivided attention during normal
         business hours to the business and affairs of the Company, except for
         reasonable vacations afforded the Company's executive officers and
         except for illness or incapacity, but nothing in this Agreement shall
         preclude Rhein from devoting reasonable time required for serving as a
         director or member of an advisory committee of any organization
         involving no conflict of interest with the interests of the Company,
         from engaging in charitable and community activities, and from managing
         his personal affairs, provided that such activities do not materially
         interfere with the regular performance of his duties and
         responsibilities under this Agreement.

         3.04 OFFICE. Throughout the Period of Employment, Rhein's office shall
         be located at the corporate offices of the Company, and Rhein shall not
         be required to locate his office elsewhere without his prior written
         consent, nor shall he be required to be absent therefrom on travel
         status or otherwise more than a total of sixty (60) days in any
         calendar year nor more than fifteen (15) consecutive days at any one
         time.

4.       COMPENSATION, COMPENSATION PLANS, PERQUISITES

         4.01     COMPENSATION.

                  (a) For all services rendered by Rhein in any capacity during
                  the Period of Employment, including, without limitation,
                  services as an executive officer, director or member of any
                  committee of the Company or of any subsidiary, division or
                  affiliate thereof, Rhein shall be entitled as compensation to
                  the following:

                        (i)         A base salary, payable not less often than
                                    monthly, at the rate of $41,666.67 per
                                    month, with such increases in such rate as
                                    may be

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                                    awarded from time to time by the
                                    Board of Directors of the Company or the
                                    Compensation Committee, as applicable;

                       (ii)         Participation in the Company's 2000 Annual
                                    Incentive Plan (the "Annual Incentive Plan")
                                    in accordance with the provisions of such
                                    plan as in effect as of the date of this
                                    Agreement and as may be amended from time to
                                    time, conditioned upon and subject to
                                    Rhein's prior written consent to any such
                                    amendment as shall apply to him.

                  (b) Any increase in salary, incentive compensation or other
                  form of compensation shall in no way diminish any other
                  obligation of the Company under this Agreement, unless
                  specifically agreed to in writing by Rhein.

         4.02 PERQUISITES. During the Period of Employment, Rhein shall be
         entitled to perquisites, including without limitation, an office,
         secretarial staff and clerical staff, and to fringe benefits comparable
         to those enjoyed by the elected executive officers of the Company, as
         well as to reimbursement, upon proper accounting, of reasonable
         business expenses and disbursements incurred by him in the course of
         his duties.

5.       EMPLOYEE BENEFIT PLANS

         5.01 BENEFIT PLANS. Rhein, his dependents, beneficiaries and estate
         shall be entitled to all payments and benefits and service credit for
         benefits during the Period of Employment to which executive officers of
         the Company, their dependents and beneficiaries are entitled as the
         result of the employment of such executive officers during the Period
         of Employment under the terms of employee plans and practices of the
         Company, including, without limitation, the Company's Retirement Plan,
         its Benefit Equalization Plan, its Supplemental Executive Retirement
         Plan, its group life insurance plan, its accidental death and
         dismemberment insurance, its disability, medical and health and welfare
         plans, any key person individual life and disability policies,
         automobile expense reimbursement, club membership fees and dues, and
         other present or equivalent successor plans and practices of the
         Company, its subsidiaries and divisions, for which other executive
         officers, their dependents and beneficiaries are eligible, and to all
         payments or other benefits under any such plan or practice after the
         Period of Employment as a result of participation in such plan or
         practice during the Period of Employment.

         5.02 STOCK PLANS. Rhein shall be eligible to participate in the
         Company's 1991 Stock Option Plan and 2000 Stock Incentive Plan (which,
         together with any successor stock option plan or plans as may be in
         effect from time to time, are referred to herein as the "Option Plan");
         provided, however, that the grant of any stock options ("Options")
         under any Option Plan shall be at the sole discretion of the
         Compensation Committee of the Board of Directors of the Company. The
         Company has granted Rhein stock options at an option price equal to the
         fair market value of the Company's Common Shares at the date of grant.
         The terms and conditions of exercise of Options shall be as is set
         forth in

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         Rhein's Stock Option Agreements (the "Option Agreements") with
         the Company; provided, however, that in the event of a Change in
         Control as defined in Section 15.02 hereof, then notwithstanding the
         provisions of said Option Agreements, all options (including those
         granted to him under the 1982 Incentive Stock Option Plan, the 1991
         Stock Option Plan and the 2000 Stock Incentive Plan) shall immediately
         be 100% vested and Rhein shall have the immediate right of exercise
         with respect to all Options and the underlying Common Shares covered by
         said Option Agreements. In the event that Rhein is discharged or
         resigns his employment during the one (1) year period following a
         Change in Control as defined in Section 15.02 hereof, Rhein shall have
         the period of one (1) year after the date of such termination or
         resignation (or such longer period as may be specified in the Option
         Agreement) or the remainder of the term of such Options, whichever is
         shorter, to exercise his Options, and any such exercise shall be
         irrevocable.

6.       EFFECT OF DEATH OR DISABILITY

         6.01 DEATH. In the event of the death of Rhein during the Period of
         Employment, the Period of Employment shall be deemed to have ended as
         of the close of business on the last day of the month in which death
         shall have occurred, and his legal representative shall be entitled to
         (i) the compensation provided for in Section 4.01(a)(i) hereof for the
         month in which death shall take place at the rate being paid at the
         time of death, (ii) an incentive cash bonus amount equal to his earned
         incentive cash bonus under the Annual Incentive Plan (or, if
         applicable, any predecessor annual incentive plan or arrangement) for
         the immediately preceding fiscal year, pro rated through the last date
         of the Period of Employment, and (iii) any benefits provided pursuant
         to Section 5.01 hereof which are payable pursuant to the terms of the
         applicable plan or practice.

         6.02     DISABILITY.

                  (a) The term "Disability," as used in this Agreement, shall
                  mean an illness or accident which prevents Rhein from
                  performing his duties under this Agreement for a period of six
                  (6) consecutive months. The Period of Employment shall be
                  deemed to have ended as of the close of business on the last
                  day of such six (6) month period but without prejudice to any
                  payments due Rhein during such six (6) month period or
                  pursuant to any disability plan or disability insurance
                  policy.

                  (b) In the event of the Disability of Rhein during the Period
                  of Employment, Rhein shall be entitled to (i) the compensation
                  provided for in Section 4.01(a)(i) hereof at the rate being
                  paid at the time of the commencement of Disability, for the
                  period of such Disability but not in excess of six (6) months,
                  (ii) an incentive cash bonus equal to his earned incentive
                  cash bonus under the Annual Incentive Plan (or, if applicable,
                  any predecessor annual incentive plan or arrangement) for the
                  immediately preceding fiscal year, pro rated through the last
                  date of the Period of Employment, and (iii) any benefits
                  provided pursuant to Section 5.01 hereof which are payable
                  pursuant to the terms of the applicable plan or practice,
                  except that Rhein shall not be subject to the payment cap
                  provided for by the Company's short-term disability plan.

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                  (c) The amount of any payments due under this Section 6.02
                  shall be reduced by any payments which Rhein may be paid for
                  the same period under any disability plan of the Company or of
                  any subsidiary or affiliate thereof.

7.       TERMINATION

         7.01 GENERAL. The Company may terminate Rhein's employment with or
         without Cause, and Rhein may voluntarily terminate his employment, at
         any time during the Period of Employment, subject to the provisions of
         this Section 7. The termination of this Agreement by the Company
         pursuant to Section 2(i) hereof shall be deemed to be a termination of
         employment without Cause as set forth in Section 7.04 hereof. In the
         event that this Agreement is to be terminated pursuant to Section 2(i)
         hereof, upon receipt of the notice of termination Rhein shall have the
         option of either leaving the Company at any time prior to the March 31
         effective date of the termination of this Agreement or continuing his
         employment until such effective date, and in either event Rhein shall
         be entitled to receive all of the payments and benefits as provided in
         Section 7.04 hereof; provided, however, that in the event Rhein elects
         to continue his employment with the Company subsequent to the March 31
         effective date of the termination of this Agreement, for a period of
         three (3) months thereafter Rhein shall have the right to terminate his
         employment with the Company and any such termination shall be deemed to
         be a termination of employment without Cause as set forth above.

         7.02 CHANGE IN CONTROL. If, during the one (1) year period following a
         Change in Control of the Company as defined in Section 15.02 hereof,
         Rhein is discharged or voluntarily resigns his employment, there shall
         be paid or provided to Rhein, his dependents, beneficiaries and estate,
         as liquidated damages or severance pay, or both, the following:

                  (a)      (i)      The compensation provided for in Section
                                    4.01(a)(i) hereof for the month in which
                                    termination shall have occurred at the rate
                                    being paid at the time of termination; plus

                           (ii)     An incentive cash bonus calculated based
                                    upon his earned incentive cash bonus under
                                    the Annual Incentive Plan for the
                                    immediately preceding fiscal year, pro rated
                                    for the then current fiscal year through his
                                    date of termination; plus

                           (iii)    An amount equal to the product of thirty-six
                                    (36) times his monthly base salary at the
                                    rate being paid at the time of termination;
                                    plus

                           (iv)     An amount equal to his earned incentive cash
                                    bonus under the Annual Incentive Plan (or,
                                    if applicable, any predecessor annual
                                    incentive plan or arrangement) for the three
                                    (3) previously completed fiscal years.

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                  Such amounts shall be paid to Rhein in one payment immediately
                  upon his termination of employment.

                  (b) For the three (3) year period following the date of his
                  termination of employment, Rhein, his dependents,
                  beneficiaries and estate, shall continue to be entitled to all
                  benefits provided pursuant to Section 5.01 hereof which are
                  payable pursuant to the terms of the applicable plan or
                  practice, and service credit for benefits under all employee
                  benefit plans of the Company, including, without limitation,
                  the Company's Retirement Plan, Supplemental Executive
                  Retirement Plan and Benefit Equalization Plan referred to in
                  Section 5.01 hereof, upon the same basis as immediately prior
                  to termination and, to the extent that such benefits or
                  service credit for benefits shall not be payable or provided
                  under any such plans to Rhein, his dependents, beneficiaries
                  and estate, by reason of his no longer being an employee of
                  the Company as the result of termination, or any such plan,
                  program or arrangement is discontinued or the benefits
                  thereunder are materially reduced, the Company shall provide
                  Rhein, his dependents, beneficiaries and estate, as
                  appropriate, a benefit or payment which places Rhein, his
                  dependents, beneficiaries and estate in at least as good of an
                  economic position (taking into account the favorable economic,
                  tax and legal characteristics customary for such plans,
                  policies or arrangements) as if the benefit to which such
                  persons were entitled to receive under such plans, programs
                  and arrangements immediately prior to termination had been
                  paid.

                  Any termination of Rhein's employment which either is (x) a
         termination by the Company other than for Cause or (y) a voluntary
         resignation by Rhein after the occurrence of an event which would
         constitute Good Reason under Section 15.03 hereof, which termination or
         resignation occurs within the period commencing on the commencement
         date of a tender offer for the Company's Common Shares, the execution
         of a letter of intent or the execution of a definitive agreement which,
         in each case, could reasonably be expected to lead to a Change in
         Control as defined in Section 15.02 hereof, and ending on either (A)
         the date of the Change in Control resulting from such tender offer or
         the consummation of the transaction contemplated by such letter of
         intent or such definitive agreement, as the case may be, or (B) the
         date as of which the Board of Directors determines in good faith that
         such tender offer has been withdrawn or has reached a final conclusion
         not resulting in a Change in Control or the transaction contemplated by
         such letter of intent or such definitive agreement is not to be
         consummated or if consummated, will not lead to a Change in Control, as
         the case may be, shall be deemed to be a termination under this Section
         7.02.

                  An election by Rhein to terminate his employment under the
         provisions of this Section 7.02 shall not be deemed a voluntary
         termination of employment by Rhein under Section 7.03 hereof. Further,
         an election by Rhein to terminate his employment under the provisions
         of subsection (y) of this Section 7.02 shall not be deemed to be a
         voluntary termination of employment for a Good Reason under Section
         7.04 hereof.

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         7.03 FOR CAUSE OR VOLUNTARY TERMINATION WITHOUT A GOOD REASON. For the
         purpose of any provision of this Agreement, the termination of Rhein's
         employment shall be deemed to have been for Cause only if:

                  (a) termination of his employment shall have been the result
                  of Rhein's conviction of any of the following offenses,
                  provided that such offense results in material economic harm
                  to the Company or has a materially adverse effect on the
                  Company's operations, property or business relationships: (i)
                  misappropriation of money or other property of the Company or
                  (ii) any felony;

                  (b) there has been a breach by Rhein during the Period of
                  Employment of the provisions of Section 3.03 hereof relating
                  to devotion of full time to the affairs of the Company or any
                  provision of Section 8 hereof, and such breach results in
                  demonstrable significant injury to the Company, and with
                  respect to any alleged breach of Section 3.03 hereof, Rhein
                  shall have failed to remedy such breach within thirty (30)
                  days after his receipt of written notice from the Company; or

                  (c) there has been a substantial and continued failure or
                  refusal to perform under this Agreement which Rhein shall have
                  failed to remedy within thirty (30) days after his receipt of
                  written notice from the Company.

                  If Rhein's employment is terminated by the Company for Cause,
         or if Rhein shall voluntarily terminate his employment with the Company
         without a Good Reason as defined in Section 15.03 hereof, Rhein shall
         be entitled to the compensation provided for in Section 4.01(a)(i)
         hereof through the date of such termination. Rhein shall not be
         entitled to any additional compensation or benefits (except for any
         vested benefits), and shall continue to be bound by the provisions of
         Section 8 hereof.

         7.04 WITHOUT CAUSE OR VOLUNTARY TERMINATION FOR A GOOD REASON. Subject
         to compliance by Rhein with the provisions of Section 8 hereof, if the
         Company shall terminate Rhein's employment without Cause or if Rhein
         shall voluntarily terminate his employment for a Good Reason as defined
         in Section 15.03 hereof, there shall be paid or provided to Rhein, his
         dependents, beneficiaries and estate, as liquidated damages or
         severance pay, or both, (i) the compensation provided for in Section
         4.01(a)(i) for the month in which termination shall have occurred at
         the rate being paid at the time of such termination; (ii) an incentive
         cash bonus calculated based upon his earned incentive cash bonus under
         the Annual Incentive Plan for the immediately preceding fiscal year,
         pro rated for the then current fiscal year through his date of
         termination; and (iii) the amount (the "Payment Amount") per month
         equal to 1/24th of (A) twenty-four (24) times his monthly base salary
         at the rate being paid at the time of termination plus (B) an amount
         equal to his earned incentive cash bonus under the Annual Incentive
         Plan (or, if applicable, any predecessor annual incentive plan or
         arrangement) for the two (2) previously completed fiscal years. Such
         Payment Amount shall be paid to Rhein or, in case of his prior death,
         to his legal representative or estate, in monthly installments at the
         end of each month commencing with the month next following that in
         which such termination shall have occurred, and continuing for a period
         of twenty-four (24) months.

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         Rhein, his dependents, beneficiaries and estate shall also receive, for
         the twenty-four (24) month period following such termination, all
         benefits provided pursuant to Section 5.01 hereof which are payable
         pursuant to the terms of the applicable plan or practice, and service
         credit for benefits under all employee benefit plans of the Company,
         including, without limitation, the Company's Retirement Plan, Benefit
         Equalization Plan and Supplemental Executive Retirement Plan referred
         to in Section 5.01 hereof, upon the same basis as immediately prior to
         termination and, to the extent that such benefits or service credit for
         benefits shall not be payable or provided under any such plans to
         Rhein, his dependents, beneficiaries and estate, by reason of his no
         longer being an employee of the Company as the result of termination,
         or any such plan, program or arrangement is discontinued or the
         benefits thereunder are materially reduced, the Company shall provide
         Rhein, his dependents, beneficiaries and estate, as appropriate, a
         benefit or payment which places Rhein, his dependents, beneficiaries
         and estate in at least as good of an economic position (taking into
         account the favorable economic, tax and legal characteristics customary
         for such plans, policies or arrangements) as if the benefit to which
         such persons were entitled to receive under such plans, programs and
         arrangements immediately prior to termination had been paid. In the
         event the Company fails to make such payments when due, then the
         remaining payments shall become due and payable immediately. Rhein
         shall be under no obligation to seek other employment, but without
         otherwise limiting the purposes or effect of this Section 7.04, any
         amounts payable to Rhein pursuant to Section 7.04(iii) hereof shall be
         reduced by any amounts which Rhein actually receives from another
         employer during the twenty-four (24) month period following the date of
         his termination without Cause, and any benefits payable to Rhein or his
         dependents pursuant to this Section 7.04 by reason of any "welfare
         benefit plan" of the Company (as the term "welfare benefit plan" is
         defined in Section 3(1) of the Employee Retirement Income Security Act
         of 1974, as amended) or perquisites shall be reduced to the extent
         comparable benefits or perquisites (or the cash equivalent thereof) are
         actually received by Rhein or his dependents from another employer
         during such period. Notwithstanding any provision in this Section 7.04
         to the contrary, all obligations of the Company and Rhein's right to
         any payment or benefit under this Section 7.04 shall cease upon Rhein's
         breach of any provision of Section 8 hereof.

         7.05 ARBITRATION. In the event that Rhein's employment shall be
         terminated by the Company during the Period of Employment or the
         Company shall withhold payments or provision of benefits because Rhein
         is alleged to be engaged in activities prohibited by Section 8 hereof
         or for any other reason, Rhein shall have the right, in addition to all
         other rights and remedies provided by law, at his election either to
         seek arbitration in the metropolitan area of Cleveland, Ohio, under the
         Commercial Arbitration Rules of the American Arbitration Association by
         serving a notice to arbitrate upon the Company or to institute a
         judicial proceeding, in either case within one hundred and twenty (120)
         days after having received notice of termination of his employment.

8.       NON-COMPETITION, CONFIDENTIAL INFORMATION AND NON-INTERFERENCE

         8.01 NON-COMPETITION. During the Period of Employment and the two (2)
         year period following the termination of his employment (except in the
         case of a voluntary or

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         involuntary termination of employment within one (1) year after a
         Change in Control), Rhein shall not become an officer, director, joint
         venturer, employee, consultant or five percent (5%) shareholder
         (directly or indirectly), or promote or assist (financially or
         otherwise), any entity which competes with any business in which the
         Company or any of its affiliates are engaged as of the date of such
         termination of employment. Rhein understands that the foregoing
         restrictions may limit his ability to engage in certain business
         pursuits during the period provided for herein, but acknowledges that
         he will receive sufficiently higher remuneration and other benefits
         from the Company hereunder than he would otherwise receive to justify
         such restriction. Rhein acknowledges that he understands the effect of
         the provisions of this Section 8(a), and that he has had reasonable
         time to consider the effect of these provisions, and that he was
         encouraged to and had an opportunity to consult an attorney with
         respect to these provisions.

         8.02 CONFIDENTIAL INFORMATION. Except for information which is already
         in the public domain, or which is publicly disclosed by persons other
         than Rhein, or which is required by law or court order to be disclosed,
         or information given to Rhein by a third party not bound by any
         obligation of confidentiality, Rhein shall at all times during and
         after his employment with the Company hold in strictest confidence any
         and all confidential information within his knowledge and which is
         material to the business of the Company (whether acquired prior to or
         during his employment with the Company) concerning the inventions,
         products, processes, methods of distribution, customers, services,
         business, suppliers or trade secrets of the Company, except that Rhein
         may, in connection with the performance of his duties to the Company,
         divulge confidential information to the directors, officers, employees
         and shareholders of the Company and to the advisors, accountants,
         attorneys or lenders of the Company or such other individuals as deemed
         prudent in the course of business to carry out the responsibilities and
         duties of his position, or as required by law. Such confidential
         information includes, without limitation, financial information, sales
         information, price lists, marketing data, the identity and lists of
         actual and potential customers and technical information, all to the
         extent that such information is not intended by the Company for public
         dissemination.

                  Rhein also agrees that upon leaving the Company's employ he
         will not take with him, without the prior written consent of an officer
         authorized to act in the matter by the Board of Directors of the
         Company, any Company document, contract, internal financial or
         management reports, customers list, product list, price list, catalog,
         employee list, procedures, software, MIS data, drawing, blueprint,
         specification or other document of the Company, its subsidiaries,
         affiliates and divisions, which is of a confidential nature relating to
         the Company, its subsidiaries, affiliates and divisions, or, without
         limitation, relating to its or their methods of purchase or
         distribution, or any description of any trade secret, formulae or
         secret processes.

         8.03. NONINTERFERENCE. Rhein shall not, at any time during the Period
         of Employment or within the two (2) year period after his employment is
         terminated with the Company (except in the case of a voluntary or
         involuntary termination of employment within one (1) year after a
         Change in Control), without the prior written consent of the Company,
         directly or indirectly, induce or attempt to induce any employee, agent
         or other

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         representative or associate of the Company to terminate his or her
         employment, representation or other relationship with the Company, or
         in any way directly or indirectly interfere with any relationship
         between the Company and its suppliers or customers.

         8.04. REMEDY. Rhein acknowledges that Sections 8.01, 8.02 and 8.03
         hereof were negotiated at arms length and are required for the fair and
         reasonable protection of the Company. Nevertheless, if any aspect of
         these restrictions is found to be unreasonable or otherwise
         unenforceable by a court of competent jurisdiction, the Company and
         Rhein intend for such restrictions to be modified by such court so as
         to be reasonable and enforceable and, as so modified by the court, to
         be fully enforced. Rhein and the Company further acknowledge and agree
         that a breach of those obligations and agreements will result in
         irreparable and continuing damage to the Company for which there will
         be no adequate remedy at law and, therefore, Rhein and the Company
         agree that in the event of any breach of said obligations and
         agreements the Company, and its successors and assigns, shall be
         entitled to injunctive relief and such other and further relief,
         including monetary damages, as is proper in the circumstances. It is
         further agreed that the running of the periods provided in Sections
         8.01 and 8.03 hereof shall be tolled during any period which Rhein
         shall be adjudged to have been in violation of any of his obligations
         under such Sections.

9.       WITHHOLDING

                  Anything to the contrary notwithstanding, all payments
         required to be made by the Company hereunder to Rhein or his estate or
         beneficiaries, shall be subject to the withholding of such amounts, if
         any, relating to tax and other payroll deductions as the Company may
         reasonably determine it should withhold pursuant to any applicable law
         or regulation. In lieu of withholding such amounts, the Company may
         accept other provisions to the end that it has sufficient funds to pay
         all taxes required by law to be withheld in respect of such payments or
         any of them.

10.      NOTICES

                  All notices, requests, demands and other communications
         provided for by this Agreement shall be in writing and shall be
         sufficiently given if and when mailed in the continental United States
         by registered or certified mail or personally delivered to the party
         entitled thereto at the address stated herein or to such changed
         address as the addressee may have given by a similar notice:

                                       10

<PAGE>   13

                  To the Company:           Pioneer-Standard Electronics, Inc.
                                            6065 Parkland Boulevard
                                            Mayfield Heights, Ohio 44124
                                            Attention: Secretary or
                                                       Assistant Secretary

                  To Rhein:                 Arthur Rhein
                                            40 Stonehill Lane
                                            Moreland Hills, Ohio 44022

11.      GENERAL PROVISIONS

         11.01 NO SET-OFF OR COUNTER CLAIM. There shall be no right of set-off
         or counter claim, in respect of any claim, debt or obligation, against
         payments to Rhein, his dependents, beneficiaries or estate provided for
         in this Agreement.

         11.02 BENEFICIARY. No right or interest to or in any payments shall be
         assignable by Rhein; provided, however, that this provision shall not
         preclude him from designating one or more beneficiaries to receive any
         amount that may be payable after his death and shall not preclude the
         legal representative of his estate from assigning any right hereunder
         to the person or persons entitled thereto under his will or, in the
         case of intestacy, to the person or persons entitled thereto under the
         laws of intestacy applicable to his estate. The term "beneficiaries" as
         used in this Agreement shall mean a beneficiary or beneficiaries so
         designated to receive any such amount or, if no beneficiary has been so
         designated, the legal representative of Rhein's estate.

         11.03 ASSIGNMENT. No right, benefit or interest hereunder, shall be
         subject to anticipation, alienation, sale, assignment, encumbrance,
         charge, pledge, hypothecation, or set-off in respect of any claim, debt
         or obligation, or to execution, attachment, levy or similar process, or
         assignment by operation of law. Any attempt, voluntary or involuntary,
         to effect any action specified in the immediately preceding sentence
         shall, to the full extent permitted by law, be null, void and of no
         effect.

         11.04 LEGAL REPRESENTATIVE. In the event of Rhein's death or a judicial
         determination of his incompetence, reference in this Agreement to Rhein
         shall be deemed, where appropriate, to refer to his legal
         representative or, where appropriate, to his beneficiary or
         beneficiaries.

         11.05 HEADINGS. The titles to sections in this Agreement are intended
         solely for convenience and no provision of this Agreement is to be
         construed by reference to the title of any section.

         11.06 BINDING EFFECT. This Agreement shall be binding upon and shall
         inure to the benefit of (a) Rhein and, subject to the provisions of
         Sections 11.02 and 11.03 hereof, his heirs and legal representatives,
         and (b) the Company and its successors as provided in Section 14
         hereof.

                                     11

<PAGE>   14

         11.07 EXCISE TAX GROSS UP. Rhein shall be entitled to a cash payment
         (the "Excise Tax Gross-Up Payment") equal to the amount of excise taxes
         which Rhein is required to pay pursuant to Section 4999 of the Internal
         Revenue Code of 1986, as amended ("Code"), as a result of any parachute
         payments as defined in Section 280G(b)(2)made by or on behalf of the
         Company or any successor thereto, under this Agreement or otherwise,
         resulting in an "excess parachute payment" as defined in Section
         280G(b)(1) of the Code. In addition to the foregoing, the Excise Tax
         Gross-Up Payment due to Rhein under this Section 11.07 shall be
         increased by the aggregate of the amount of federal, state and local
         income and excise taxes for which Rhein will be liable on account of
         the Excise Tax Gross-Up Payment to be made under this Section 11.07,
         such that Rhein will receive the Excise Tax Gross-Up Payment net of all
         income and excise taxes imposed on Rhein on account of the receipt of
         the Excise Tax Gross-Up Payment. The computation of the Excise Tax
         Gross-Up Payment shall be determined, at the expense of the Company, by
         an independent accounting, actuarial or consulting firm selected by the
         Company. Such Excise Tax Gross-Up Payment shall be made at such time as
         the Company shall determine, in its sole discretion, but in no event
         later than the date five (5) business days before the due date, without
         regard to any extension, for filing Rhein's federal income tax return
         for the calendar year for which it is determined that excise taxes are
         payable under Section 4999 of the Code. Notwithstanding the foregoing,
         there shall be no duplication of payments by the Company under this
         Section 11.07 in respect of excise taxes under Section 4999 of the Code
         to the extent the Company is making payments in respect of such excise
         taxes under any other arrangement with Rhein. In the event that Rhein
         is ultimately assessed with excise taxes under Section 4999 of the Code
         which exceed the amount of excise taxes used in computing Rhein's
         payment under this Section 11.07, the Company or its successor shall
         indemnify Rhein for such additional excise taxes plus any additional
         excise taxes, income taxes, interest and penalties resulting from the
         additional excise taxes and the indemnity hereunder.

12.      AMENDMENT OR MODIFICATION; WAIVER

                  No provision of this Agreement may be amended or waived unless
         such amendment or waiver is authorized by the Board of Directors of the
         Company or the Compensation Committee thereof and is agreed to in
         writing, signed by Rhein and by an officer of the Company thereunto
         duly authorized by either the Board of Directors or the Compensation
         Committee. Except as otherwise specifically provided in this Agreement,
         no waiver by either party hereto of any breach by the other party
         hereto of any condition or provision of this Agreement to be performed
         by such other party shall be deemed a waiver of a subsequent breach of
         such condition or provision or a waiver of a similar or dissimilar
         provision or condition at the same or at any prior or subsequent time.

13.      SEVERABILITY

                  In the event that any provision or portion of this Agreement
         shall be determined to be invalid or unenforceable for any reason, the
         remaining provisions and portions of this

                                       12

<PAGE>   15

         Agreement shall be unaffected thereby and shall remain in full force
         and effect to the fullest extent permitted by law.

14.      SUCCESSORS TO THE COMPANY

                  Except as otherwise provided herein, this Agreement shall be
         binding upon and inure to the benefit of the Company and any successor
         of the Company, including, without limitation, any corporation which
         acquires directly or indirectly all or substantially all of the assets
         or capital stock of the Company whether by merger, consolidation, sale
         or otherwise (and such successor shall thereafter be deemed the Company
         for the purposes of this Agreement), but shall not otherwise be
         assignable by the Company.

15.      OPERATION OF AGREEMENT

         15.01 EFFECTIVE DATE. This Agreement is effective April 1, 2000, and
         shall supersede any prior employment arrangement or agreement,
         including the 1999 Agreement, which shall be deemed to be terminated
         and null and void.

         15.02 CHANGE IN CONTROL. For the purpose of this Agreement, the term
         "Change in Control" of the Company shall mean a change in control of a
         nature that would be required to be reported in response to Item 6(e)
         of Schedule 14A of Regulation 14A promulgated under the Securities
         Exchange Act of 1934 as in effect on the date of this Agreement;
         provided that, without limitation, such a change in control shall be
         deemed to have occurred if and when (a) any "person" (as such term is
         used in Sections 13(d) and 14(d)(2) of the Securities Exchange Act of
         1934), excluding The Pioneer Stock Benefit Trust, any employee benefit
         plan of the Company, any trust established under any employee benefit
         plan of the Company, or any trustee of any trust established under any
         employee benefit plan of the Company, is or becomes a beneficial owner,
         directly or indirectly, of securities of the Company representing
         twenty percent (20%) or more of the combined voting power of the
         Company's then outstanding securities, or (b) during any period of
         twelve (12) consecutive months, commencing before or after the date of
         this Agreement, individuals who, at the beginning of such twelve (12)
         month period were directors of the Company for whom Rhein, as a
         shareholder, shall have voted, cease for any reason to constitute at
         least a majority of the Board of Directors of the Company. In addition,
         a "Change in Control" shall be deemed to have occurred if and at such
         time that Rhein is not offered the position of Chief Executive Officer
         of the Company within six (6) months after the termination of James L.
         Bayman's status as Chief Executive Officer, or, at any time during the
         one (1) year period following the first day on which Rhein shall hold
         such title, such title shall be revoked or his duties or obligations
         shall be materially inconsistent with the duties or obligations of the
         Chief Executive Officer of the Company, unless such failure to offer or
         such revocation or assignation is due to Rhein's Disability, death,
         termination of employment by the Company for Cause or voluntary
         termination by Rhein without a Good Reason.

                                       13

<PAGE>   16

         15.03 GOOD REASON. For the purpose of this Agreement, "Good Reason"
         shall mean the occurrence of: (a) any reduction in Rhein's position,
         authority or title; (b) any material reduction in Rhein's
         responsibilities or duties for the Company; (c) any material adverse
         change or reduction in the aggregate perquisites, benefits and payments
         to which Rhein is entitled pursuant to Sections 4.02 and 5.01 hereof;
         (d) any change in Rhein's reporting relationship; (e) any relocation of
         Rhein's principal place of work with the Company to a location that
         exceeds by fifty (50) miles the distance from the location of his
         residence at the time of such relocation of Rhein's principal place of
         work with the Company to 6065 Parkland Boulevard, Mayfield Heights,
         Ohio; or (f) the material breach or material default by the Company of
         any of its agreements or obligations under any provision of this
         Agreement, unless such breach or default is substantially cured within
         a reasonable period of time (hereby defined as thirty (30) days) after
         written notice advising the Company of the acts or omissions
         constituting such breach or default is actually received by the
         Company. As used in Section 15.03(c), an "adverse change or material
         reduction" in the aggregate perquisites, benefits and payments to which
         Rhein is entitled pursuant to Sections 4.02 and 5.01 shall be deemed to
         result from any reduction or any series of reductions which, in the
         aggregate, exceeds five percent (5%) of the value of such perquisites,
         benefits and payments determined as of the date of this Agreement. If
         Rhein claims the existence of a Good Reason, he shall give written
         notice to the Company of the event constituting Good Reason not later
         than ninety (90) days following the later to occur of the occurrence of
         the event (e.g., the actual reduction in compensation, the scheduled
         date of relocation or the date of the breach) constituting Good Reason
         or his actual knowledge thereof. If the event which Rhein claims to be
         a Good Reason is not cured within thirty (30) days following the date
         of such notice, Rhein must resign within ten (10) days following the
         thirty (30) day cure period in order to invoke his right to resign for
         Good Reason. If no such timely resignation occurs or no such timely
         written notices are given, Rhein's right to resign for Good Reason with
         respect to such event shall be permanently waived.

16.      ENFORCEMENT COSTS

                  The Company is aware that upon the occurrence of a Change in
         Control the Board of Directors or a shareholder of the Company may then
         cause or attempt to cause the Company to refuse to comply with its
         obligations under this Agreement, or may cause or attempt to cause the
         Company to institute, or may institute, litigation seeking to have this
         Agreement declared unenforceable, or may take, or attempt to take,
         other action to deny Rhein the benefits intended under this Agreement.
         In these circumstances, the purpose of this Agreement could be
         frustrated. It is the intent of the Company that Rhein not be required
         to incur the expenses associated with the enforcement of his rights
         under this Agreement by litigation or other legal action because the
         cost and expense thereof would substantially detract from the benefits
         intended to be extended to Rhein hereunder, nor be bound to negotiate
         any settlement of his rights hereunder under threat of incurring such
         expenses. Accordingly, if following a Change in Control it should
         appear to Rhein that the Company has failed to comply with any of its
         obligations under this Agreement or in the event that the Company or
         any other person takes any action to declare this Agreement void or
         unenforceable, or institutes any litigation or other legal action

                                       14

<PAGE>   17

         designed to deny, diminish or to recover from, Rhein, the benefits
         intended to be provided to Rhein hereunder, and that Rhein has complied
         with all of his obligations under this Agreement, the Company
         irrevocably authorizes Rhein from time to time to retain counsel of his
         choice at the expense of the Company as provided in this Section 16, to
         represent Rhein in connection with the initiation or defense of any
         litigation or other legal action, whether by or against the Company or
         any Director, officer, shareholder or other person affiliated with the
         Company, in any jurisdiction. Notwithstanding any existing or prior
         attorney-client relationship between the Company and such counsel, the
         Company irrevocably consents to Rhein entering into an attorney-client
         relationship with such counsel, and in that connection the Company and
         Rhein agree that a confidential relationship shall exist between Rhein
         and such counsel. The reasonable fees and expenses of counsel selected
         from time to time by Rhein as herein provided shall be paid or
         reimbursed to Rhein by the Company on a regular, periodic basis upon
         presentation by Rhein of a statement or statements prepared by such
         counsel in accordance with its customary practices, up to a maximum
         aggregate amount of $500,000.

                                       15
<PAGE>   18

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

ATTEST:                                     PIONEER-STANDARD ELECTRONICS, INC.

/s/ Nancy E. Hoyt                      By /s/ James L. Bayman
------------------------------         ---------------------------------------
                                       James L. Bayman, Chairman and Chief
                                       Executive Officer

ATTEST:
/s/ Nancy E. Hoyt                      /s/ Arthur Rhein
------------------------------         ---------------------------------------
                                       Arthur Rhein

                                       16<PAGE>   1
                                                                  Exhibit 10.3

                                                                  EXECUTION COPY
                                                                  --------------

                              EMPLOYMENT AGREEMENT

                                     BETWEEN

                       PIONEER-STANDARD ELECTRONICS, INC.

                                       AND

                                STEVEN M. BILLICK

                                                                  April 26, 2000

<PAGE>   2

                                TABLE OF CONTENTS
                                -----------------
<TABLE>
<CAPTION>
                                                                                                               Page
                                                                                                               ----

<S>                                                                                                              <C>
Employment........................................................................................................1

Period of Employment..............................................................................................1

Position, Duties, Responsibilities................................................................................1

Compensation, Compensation Plans,  Perquisites....................................................................2

Employee Benefit Plans............................................................................................3

Effect of Death or Disability.....................................................................................4

Termination.......................................................................................................4

         General..................................................................................................4

         Change in Control........................................................................................5

         For Cause or Voluntary Termination Without a Good Reason.................................................6

         Without Cause or Voluntary Termination for a Good Reason.................................................7

         Arbitration..............................................................................................8

Non-Competition, Confidential Information and Non-Interference....................................................9

Withholding......................................................................................................10

Notices..........................................................................................................10

General Provisions...............................................................................................11

Amendment or Modification; Waiver................................................................................12

Severability.....................................................................................................13

Successors to the Company........................................................................................13

Operation of Agreement...........................................................................................13

Enforcement Costs................................................................................................14
</TABLE>

<PAGE>   3

                              EMPLOYMENT AGREEMENT
                              --------------------

         EMPLOYMENT AGREEMENT between PIONEER-STANDARD ELECTRONICS, INC., an
Ohio corporation (the "Company"), and STEVEN M. BILLICK ("Billick"), dated April
26, 2000, effective April 24, 2000.

                              W I T N E S S E T H:

         WHEREAS, The Company desires to retain the services of Billick as
Senior Vice President and Chief Financial Officer, and Billick desires to render
his services to the Company in such capacities;

         WHEREAS, The Company and Billick desire to set forth their mutual
understanding regarding the terms of Billick's employment with the Company;

         WHEREAS, The Company deems this Agreement necessary at the present time
to meet the need to retain strong management.

         NOW, THEREFORE, it is hereby agreed by and between the Company and
Billick as follows:

1.       Employment
         ----------

                  The Company hereby agrees to employ Billick, and Billick
         hereby agrees to remain in the employ of the Company, for the period
         set forth in Section 2 hereof (the "Period of Employment"), in the
         position and with the duties and responsibilities set forth in Section
         3 hereof, and upon the other terms and conditions hereinafter stated.

2.       Period of Employment
         --------------------

                  For purposes of this Agreement, the Period of Employment,
         subject only to the provisions of Section 6 hereof, shall continue for
         a one-year period from the effective date hereof and thereafter on a
         year-to-year basis (i) subject to termination of this Agreement by the
         Company effective as of the next anniversary of the effective date
         hereof following written notice of termination, which notice must be
         given to Billick no later than February 1 of the Company's then current
         fiscal year, or (ii) until the earlier termination of employment as set
         forth in Section 7 hereof.

3.       Position, Duties, Responsibilities
         ----------------------------------

         3.01 SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER. During the
         Period of Employment, Billick shall serve as Senior Vice President and
         Chief Financial Officer of the Company reporting to the Chief Executive
         Officer of the Company and shall have the authority, power, and duties
         with regard to his position as may from time to time be assigned by the
         Chief Executive Officer or the Board of Directors of the Company.

                                       1
<PAGE>   4

         3.02 ATTENTION TO DUTIES. Throughout the Period of Employment, Billick
         shall devote his full time and undivided attention during normal
         business hours to the business and affairs of the Company, except for
         reasonable vacations afforded the Company's executive officers and
         except for illness or incapacity, but nothing in this Agreement shall
         preclude Billick from devoting reasonable time required for serving as
         a director or member of an advisory committee of any organization
         involving no conflict of interest with the interests of the Company,
         from engaging in charitable and community activities, and from managing
         his personal affairs, provided that such activities do not materially
         interfere with the regular performance of his duties and
         responsibilities under this Agreement.

         3.03 OFFICE. Throughout the Period of Employment, Billick's office
         shall be located at the corporate offices of the Company, and Billick
         shall not be required to locate his office elsewhere without his prior
         written consent, nor shall he be required to be absent therefrom on
         travel status or otherwise more than a total of sixty (60) days in any
         calendar year nor more than fifteen (15) consecutive days at any one
         time.

4.       Compensation, Compensation Plans, Perquisites
         ---------------------------------------------

         4.01     Compensation.
                  ------------

                  (a) For all services rendered by Billick in any capacity
                  during the Period of Employment, including, without
                  limitation, services as an executive officer, director or
                  member of any committee of the Company or of any subsidiary,
                  division or affiliate thereof, Billick shall be entitled as
                  compensation to the following:

                        (i)         A base salary, payable not less often than
                                    monthly, at the rate of $25,000.00 per
                                    month, with such increases in such rate as
                                    may be awarded from time to time by the
                                    Board of Directors of the Company or the
                                    Compensation Committee, as applicable;

                       (ii)         Participation in the Company's 2000 Annual
                                    Incentive Plan (the "Annual Incentive Plan")
                                    in accordance with the provisions of such
                                    plan as in effect as of the date of this
                                    Agreement and as may be amended from time to
                                    time, conditioned upon and subject to
                                    Billick's prior written consent to any such
                                    amendment as shall apply to him.

                  (b) Any increase in salary, incentive compensation or other
                  form of compensation shall in no way diminish any other
                  obligation of the Company under this Agreement, unless
                  specifically agreed to in writing by Billick.

         4.02 PERQUISITES. During the Period of Employment, Billick shall be
         entitled to perquisites, including without limitation, an office,
         secretarial staff and clerical staff, and

                                       2
<PAGE>   5

         to fringe benefits comparable to those enjoyed by the elected executive
         officers of the Company, as well as to reimbursement, upon proper
         accounting, of reasonable business expenses and disbursements incurred
         by him in the course of his duties.

5.       EMPLOYEE BENEFIT PLANS
         ----------------------

         5.01 BENEFIT PLANS. Billick, his dependents, beneficiaries and estate
         shall be entitled to all payments and benefits and service credit for
         benefits during the Period of Employment to which executive officers of
         the Company, their dependents and beneficiaries are entitled as the
         result of the employment of such executive officers during the Period
         of Employment under the terms of employee plans and practices of the
         Company, including, without limitation, the Company's Retirement Plan,
         its Benefit Equalization Plan, its Supplemental Executive Retirement
         Plan, its group life insurance plan, its accidental death and
         dismemberment insurance, its disability, medical and health and welfare
         plans, any key person individual life and disability policies,
         automobile expense reimbursement, club membership fees and dues, and
         other present or equivalent successor plans and practices of the
         Company, its subsidiaries and divisions, for which other executive
         officers, their dependents and beneficiaries are eligible, and to all
         payments or other benefits under any such plan or practice after the
         Period of Employment as a result of participation in such plan or
         practice during the Period of Employment.

         5.02 STOCK PLANS. Billick shall be eligible to participate in the
         Company's 1991 Stock Option Plan and 2000 Stock Incentive Plan (which,
         together with any successor stock option plan or plans as may be in
         effect from time to time, are referred to herein as the "Option Plan");
         provided, however, that the grant of any stock options ("Options")
         under any Option Plan shall be at the sole discretion of the
         Compensation Committee of the Board of Directors of the Company. The
         Company may from time to time grant Billick stock options at an option
         price equal to the fair market value of the Company's Common Shares at
         the date of grant. The terms and conditions of exercise of Options
         shall be as is set forth in Billick's Stock Option Agreements (the
         "Option Agreements") with the Company; provided, however, that in the
         event of a Change in Control as defined in Section 15.02 hereof, then
         notwithstanding the provisions of said Option Agreements, all options
         (including those granted to him under the 1991 Stock Option Plan and
         the 2000 Stock Incentive Plan) shall immediately be 100% vested and
         Billick shall have the immediate right of exercise with respect to all
         Options and the underlying Common Shares covered by said Option
         Agreements. In the event that Billick is discharged or resigns his
         employment during the one (1) year period following a Change in Control
         as defined in Section 15.02 hereof, Billick shall have the period of
         one (1) year after the date of such termination or resignation (or such
         longer period as may be specified in the Option Agreement) or the
         remainder of the term of such Options, whichever is shorter, to
         exercise his Options, and any such exercise shall be irrevocable.

                                       3
<PAGE>   6

6.       Effect of Death or Disability
         -----------------------------

         6.01 DEATH. In the event of the death of Billick during the Period of
         Employment, the Period of Employment shall be deemed to have ended as
         of the close of business on the last day of the month in which death
         shall have occurred, and his legal representative shall be entitled to
         (i) the compensation provided for in Section 4.01(a)(i) hereof for the
         month in which death shall take place at the rate being paid at the
         time of death, (ii) an incentive cash bonus amount equal to his earned
         incentive cash bonus under the Annual Incentive Plan for the
         immediately preceding fiscal year, pro rated through the last date of
         the Period of Employment, and (iii) any benefits provided pursuant to
         Section 5.01 hereof which are payable pursuant to the terms of the
         applicable plan or practice.

         6.02     Disability.
                  ----------

                  (a) The term "Disability," as used in this Agreement, shall
                  mean an illness or accident which prevents Billick from
                  performing his duties under this Agreement for a period of six
                  (6) consecutive months. The Period of Employment shall be
                  deemed to have ended as of the close of business on the last
                  day of such six (6) month period but without prejudice to any
                  payments due Billick during such six (6) month period or
                  pursuant to any disability plan or disability insurance
                  policy.

                  (b) In the event of the Disability of Billick during the
                  Period of Employment, Billick shall be entitled to (i) the
                  compensation provided for in Section 4.01(a)(i) hereof at the
                  rate being paid at the time of the commencement of Disability,
                  for the period of such Disability but not in excess of six (6)
                  months, (ii) an incentive cash bonus equal to his earned
                  incentive cash bonus under the Annual Incentive Plan for the
                  immediately preceding fiscal year, pro rated through the last
                  date of the Period of Employment, and (iii) any benefits
                  provided pursuant to Section 5.01 hereof which are payable
                  pursuant to the terms of the applicable plan or practice,
                  except that Billick shall not be subject to the payment cap
                  provided for by the Company's short-term disability plan.

                  (c) The amount of any payments due under this Section 6.02
                  shall be reduced by any payments which Billick may be paid for
                  the same period under any disability plan of the Company or of
                  any subsidiary or affiliate thereof.

7.       Termination
         -----------

         7.01 GENERAL. The Company may terminate Billick's employment with or
         without Cause, and Billick may voluntarily terminate his employment, at
         any time during the Period of Employment, subject to the provisions of
         this Section 7. The termination of this Agreement by the Company
         pursuant to Section 2(i) hereof (other than any such termination prior
         to or as of the initial anniversary hereof) shall be deemed to be a
         termination of employment without Cause as set forth in Section 7.04
         hereof. In the event that this Agreement is to be terminated pursuant
         to Section 2(i) hereof, upon receipt of the notice of termination
         Billick shall have the option of either leaving the Company at

                                       4
<PAGE>   7

         any time prior to the March 31 effective date of the termination of
         this Agreement or continuing his employment until such effective date,
         and in either event Billick shall be entitled to receive all of the
         payments and benefits as provided in Section 7.04 hereof; provided,
         however, that in the event Billick elects to continue his employment
         with the Company subsequent to the March 31 effective date of the
         termination of this Agreement, for a period of three (3) months
         thereafter Billick shall have the right to terminate his employment
         with the Company and any such termination shall be deemed to be a
         termination of employment without Cause as set forth above.

         7.02 CHANGE IN CONTROL. If, during the one (1) year period following a
         Change in Control of the Company as defined in Section 15.02 hereof,
         Billick is discharged or voluntarily resigns his employment, there
         shall be paid or provided to Billick, his dependents, beneficiaries and
         estate, as liquidated damages or severance pay, or both, the following:

                  (a)      The compensation provided for in Section 4.01(a)(i)
                           hereof for the month in which termination shall have
                           occurred at the rate being paid at the time of
                           termination; plus

                  (b)      If such discharge or resignation shall occur prior to
                           April 1, 2001, an amount equal to twelve (12) times
                           his monthly base salary then in effect plus $100,000;
                           or

                  (c)      If such discharge or resignation shall occur after
                           April 1, 2001:

                           (i)      An incentive cash bonus calculated based
                                    upon his earned incentive cash bonus under
                                    the Annual Incentive Plan for the
                                    immediately preceding fiscal year, pro rated
                                    for the then current fiscal year through his
                                    date of termination; plus

                           (ii)     An amount  equal to twelve (12) times his
                                    monthly  base salary in effect as of such
                                    discharge or resignation; plus

                           (iii)    An amount equal to his earned incentive cash
                                    bonus under the Annual Incentive Plan for
                                    the immediately preceding fiscal year.

                  Such amounts shall be paid to Billick in one payment
                  immediately upon his termination of employment.

                  (d)      For the one (1) year period following the date of his
                           termination of employment, Billick, his dependents,
                           beneficiaries and estate, shall continue to be
                           entitled to all benefits provided pursuant to Section
                           5.01 hereof which are payable pursuant to the terms
                           of the applicable plan or practice, and service
                           credit for benefits under all employee benefit plans
                           of the Company, including, without limitation, the
                           Company's Retirement Plan, Supplemental Executive
                           Retirement Plan and Benefit Equalization

                                       5
<PAGE>   8

                           Plan referred to in Section 5.01 hereof, upon the
                           same basis as immediately prior to termination and,
                           to the extent that such benefits or service credit
                           for benefits shall not be payable or provided under
                           any such plans to Billick, his dependents,
                           beneficiaries and estate, by reason of his no longer
                           being an employee of the Company as the result of
                           termination, or any such plan, program or arrangement
                           is discontinued or the benefits thereunder are
                           materially reduced, the Company shall provide
                           Billick, his dependents, beneficiaries and estate, as
                           appropriate, a benefit or payment which places
                           Billick, his dependents, beneficiaries and estate in
                           at least as good of an economic position (taking into
                           account the favorable economic tax and legal
                           characteristics customary for such plans, policies or
                           arrangements) as if the benefit to which such persons
                           were entitled to receive under such plans, programs
                           and arrangements immediately prior to termination had
                           been paid.

                  Any termination of Billick's employment which either is (x) a
         termination by the Company other than for Cause or (y) a voluntary
         resignation by Billick after the occurrence of an event which would
         constitute Good Reason under Section 15.03 hereof, which termination or
         resignation occurs within the period commencing on the commencement
         date of a tender offer for the Company's Common Shares, the execution
         of a letter of intent or the execution of a definitive agreement which,
         in each case, could reasonably be expected to lead to a Change in
         Control as defined in Section 15.02 hereof, and ending on either (A)
         the date of the Change in Control resulting from such tender offer or
         the consummation of the transaction contemplated by such letter of
         intent or such definitive agreement, as the case may be, or (B) the
         date as of which the Board of Directors determines in good faith that
         such tender offer has been withdrawn or has reached a final conclusion
         not resulting in a Change in Control or the transaction contemplated by
         such letter of intent or such definitive agreement is not to be
         consummated or if consummated, will not lead to a Change in Control, as
         the case may be, shall be deemed to be a termination under this Section
         7.02.

                  An election by Billick to terminate his employment under the
         provisions of this Section 7.02 shall not be deemed a voluntary
         termination of employment by Billick under Section 7.03 hereof.
         Further, an election by Billick to terminate his employment under the
         provisions of subsection (y) of this Section 7.02 shall not be deemed
         to be a voluntary termination of employment for a Good Reason under
         Section 7.04 hereof.

         7.03 FOR CAUSE OR VOLUNTARY TERMINATION WITHOUT A GOOD REASON. For the
         purpose of any provision of this Agreement, the termination of
         Billick's employment shall be deemed to have been for Cause only if:

                  (a)      termination of his employment shall have been the
                           result of Billick's conviction of any of the
                           following offenses, provided that such offense
                           results in material economic harm to the Company or
                           has a materially adverse effect on the Company's
                           operations, property or business

                                       6
<PAGE>   9

                           relationships: (i) misappropriation of money or other
                           property of the Company or (ii) any felony;

                  (b)      there has been a breach by Billick during the Period
                           of Employment of the provisions of Section 3.03
                           hereof relating to devotion of full time to the
                           affairs of the Company or any provision of Section 8
                           hereof, and such breach results in demonstrable
                           significant injury to the Company, and with respect
                           to any alleged breach of Section 3.03 hereof, Billick
                           shall have failed to remedy such breach within thirty
                           (30) days after his receipt of written notice from
                           the Company; or

                  (c)      there has been a substantial and continued failure or
                           refusal to perform under this Agreement which Billick
                           shall have failed to remedy within thirty (30) days
                           after his receipt of written notice from the Company.

                  If Billick's employment is terminated by the Company for
         Cause, or if Billick shall voluntarily terminate his employment with
         the Company without a Good Reason as defined in Section 15.03 hereof,
         Billick shall be entitled to the compensation provided for in Section
         4.01(a)(i) hereof through the date of such termination. Billick shall
         not be entitled to any additional compensation or benefits (except for
         any vested benefits), and shall continue to be bound by the provisions
         of Section 8 hereof.

         7.04 WITHOUT CAUSE OR VOLUNTARY TERMINATION FOR A GOOD REASON. Subject
         to compliance by Billick with the provisions of Section 8 hereof, if
         the Company shall terminate Billick's employment without Cause or if
         Billick shall voluntarily terminate his employment for a Good Reason as
         defined in Section 15.03 hereof, there shall be paid or provided to
         Billick, his dependents, beneficiaries and estate, as liquidated
         damages or severance pay, or both:

                  (a)      The compensation provided for in Section 4.01(a)(i)
                           hereof for the month in which termination shall have
                           occurred at the rate being paid at the time of such
                           termination; PLUS

                  (b)      If such termination shall occur prior to April 1,
                           2001, an amount equal to twelve (12) times his
                           monthly base salary then in effect plus $100,000; or

                  (c)      If such termination shall occur after April 1, 2001:

                            (i)     an incentive cash bonus calculated based
                                    upon his earned incentive cash bonus under
                                    the Annual Incentive Plan for the
                                    immediately preceding fiscal year, pro rated
                                    for the then current fiscal year through his
                                    date of termination; and

                           (ii)     the amount (the "Payment Amount") per month
                                    equal to 1/12th of (A) twelve (12) times his
                                    monthly base salary at the rate being paid
                                    at the time of termination PLUS (B) an
                                    amount equal to his earned

                                       7
<PAGE>   10

                                    incentive cash bonus under the Annual
                                    Incentive Plan for the immediately preceding
                                    completed fiscal year.

         Such Payment Amount shall be paid to Billick or, in case of his prior
         death, to his legal representative or estate, in monthly installments
         at the end of each month commencing with the month next following that
         in which such termination shall have occurred, and continuing for a
         period of twelve (12) months. Billick, his dependents, beneficiaries
         and estate shall also receive, for the twelve (12) month period
         following such termination, all benefits provided pursuant to Section
         5.01 hereof which are payable pursuant to the terms of the applicable
         plan or practice, and service credit for benefits under all employee
         benefit plans of the Company, including, without limitation, the
         Company's Retirement Plan, Benefit Equalization Plan and Supplemental
         Executive Retirement Plan referred to in Section 5.01 hereof, upon the
         same basis as immediately prior to termination and, to the extent that
         such benefits or service credit for benefits shall not be payable or
         provided under any such plans to Billick, his dependents, beneficiaries
         and estate, by reason of his no longer being an employee of the Company
         as the result of termination, or any such plan, program or arrangement
         is discontinued or the benefits thereunder are materially reduced, the
         Company shall provide Billick, his dependents, beneficiaries and
         estate, as appropriate, a benefit or payment which places Billick, his
         dependents, beneficiaries and estate in at least as good of an economic
         position (taking into account the favorable economic, tax and legal
         characteristics customary for such plans, policies or arrangements) as
         if the benefit to which such persons were entitled to receive under
         such plans, programs and arrangements immediately prior to termination
         had been paid. In the event the Company fails to make such payments
         when due, then the remaining payments shall become due and payable
         immediately. Billick shall be under no obligation to seek other
         employment, but without otherwise limiting the purposes or effect of
         this Section 7.04, any amounts payable to Billick pursuant to Section
         7.04(iii) hereof shall be reduced by any amounts which Billick actually
         receives from another employer during the twelve (12) month period
         following the date of his termination without Cause, and any benefits
         payable to Billick or his dependents pursuant to this Section 7.04 by
         reason of any "welfare benefit plan" of the Company (as the term
         "welfare benefit plan" is defined in Section 3(1) of the Employee
         Retirement Income Security Act of 1974, as amended) or perquisites
         shall be reduced to the extent comparable benefits or perquisites (or
         the cash equivalent thereof) are actually received by Billick or his
         dependents from another employer during such period. Notwithstanding
         any provision in this Section 7.04 to the contrary, all obligations of
         the Company and Billick's right to any payment or benefit under this
         Section 7.04 shall cease upon Billick's breach of any provision of
         Section 8 hereof.

         7.05 ARBITRATION. In the event that Billick's employment shall be
         terminated by the Company during the Period of Employment or the
         Company shall withhold payments or provision of benefits because
         Billick is alleged to be engaged in activities prohibited by Section 8
         hereof or for any other reason, Billick shall have the right, in
         addition to all other rights and remedies provided by law, at his
         election either to seek arbitration in the metropolitan area of
         Cleveland, Ohio, under the Commercial Arbitration Rules of the American
         Arbitration Association by serving a notice to arbitrate upon the
         Company or

                                       8
<PAGE>   11

         to institute a judicial proceeding, in either case within one hundred
         and twenty (120) days after having received notice of termination of
         his employment.

8.       Non-Competition, Confidential Information and Non-Interference
         --------------------------------------------------------------

         8.01 NON-COMPETITION. During the Period of Employment and the two (2)
         year period following the termination of his employment (except in the
         case of a voluntary or involuntary termination of employment within one
         (1) year after a Change in Control), Billick shall not become an
         officer, director, joint venturer, employee, consultant or five percent
         (5%) shareholder (directly or indirectly), or promote or assist
         (financially or otherwise), any entity which competes with any business
         in which the Company or any of its affiliates are engaged as of the
         date of such termination of employment. Billick understands that the
         foregoing restrictions may limit his ability to engage in certain
         business pursuits during the period provided for herein, but
         acknowledges that he will receive sufficiently higher remuneration and
         other benefits from the Company hereunder than he would otherwise
         receive to justify such restriction. Billick acknowledges that he
         understands the effect of the provisions of this Section 8(a), and that
         he has had reasonable time to consider the effect of these provisions,
         and that he was encouraged to and had an opportunity to consult an
         attorney with respect to these provisions.

         8.02 CONFIDENTIAL INFORMATION. Except for information which is already
         in the public domain, or which is publicly disclosed by persons other
         than Billick, or which is required by law or court order to be
         disclosed, or information given to Billick by a third party not bound
         by any obligation of confidentiality, Billick shall at all times during
         and after his employment with the Company hold in strictest confidence
         any and all confidential information within his knowledge and which is
         material to the business of the Company (whether acquired prior to or
         during his employment with the Company) concerning the inventions,
         products, processes, methods of distribution, customers, services,
         business, suppliers or trade secrets of the Company, except that
         Billick may, in connection with the performance of his duties to the
         Company, divulge confidential information to the directors, officers,
         employees and shareholders of the Company and to the advisors,
         accountants, attorneys or lenders of the Company or such other
         individuals as deemed prudent in the course of business to carry out
         the responsibilities and duties of his position, or as required by law.
         Such confidential information includes, without limitation, financial
         information, sales information, price lists, marketing data, the
         identity and lists of actual and potential customers and technical
         information, all to the extent that such information is not intended by
         the Company for public dissemination.

                  Billick also agrees that upon leaving the Company's employ he
         will not take with him, without the prior written consent of an officer
         authorized to act in the matter by the Board of Directors of the
         Company, any Company document, contract, internal financial or
         management reports, customers list, product list, price list, catalog,
         employee list, procedures, software, MIS data, drawing, blueprint,
         specification or other document of the Company, its subsidiaries,
         affiliates and divisions, which is of a confidential nature relating to
         the Company, its subsidiaries, affiliates and divisions, or, without
         limitation,

                                       9
<PAGE>   12

         relating to its or their methods of purchase or distribution, or any
         description of any trade secret, formulae or secret processes.

         8.03. NONINTERFERENCE. Billick shall not, at any time during the Period
         of Employment or within the two (2) year period after his employment is
         terminated with the Company (except in the case of a voluntary or
         involuntary termination of employment within one (1) year after a
         Change in Control), without the prior written consent of the Company,
         directly or indirectly, induce or attempt to induce any employee, agent
         or other representative or associate of the Company to terminate his or
         her employment, representation or other relationship with the Company,
         or in any way directly or indirectly interfere with any relationship
         between the Company and its suppliers or customers.

         8.04. REMEDY. Billick acknowledges that Sections 8.01, 8.02 and 8.03
         hereof were negotiated at arms length and are required for the fair and
         reasonable protection of the Company. Nevertheless, if any aspect of
         these restrictions is found to be unreasonable or otherwise
         unenforceable by a court of competent jurisdiction, the Company and
         Billick intend for such restrictions to be modified by such court so as
         to be reasonable and enforceable and, as so modified by the court, to
         be fully enforced. Billick and the Company further acknowledge and
         agree that a breach of those obligations and agreements will result in
         irreparable and continuing damage to the Company for which there will
         be no adequate remedy at law and, therefore, Billick and the Company
         agree that in the event of any breach of said obligations and
         agreements the Company, and its successors and assigns, shall be
         entitled to injunctive relief and such other and further relief,
         including monetary damages, as is proper in the circumstances. It is
         further agreed that the running of the periods provided in Sections
         8.01 and 8.03 hereof shall be tolled during any period which Billick
         shall be adjudged to have been in violation of any of his obligations
         under such Sections.

9.       Withholding
         -----------

                  Anything to the contrary notwithstanding, all payments
         required to be made by the Company hereunder to Billick or his estate
         or beneficiaries, shall be subject to the withholding of such amounts,
         if any, relating to tax and other payroll deductions as the Company may
         reasonably determine it should withhold pursuant to any applicable law
         or regulation. In lieu of withholding such amounts, the Company may
         accept other provisions to the end that it has sufficient funds to pay
         all taxes required by law to be withheld in respect of such payments or
         any of them.

10.      Notices
         -------

                  All notices, requests, demands and other communications
         provided for by this Agreement shall be in writing and shall be
         sufficiently given if and when mailed in the continental United States
         by registered or certified mail or personally delivered to the party
         entitled thereto at the address stated herein or to such changed
         address as the addressee may have given by a similar notice:

                                       10
<PAGE>   13

                  To the Company:           Pioneer-Standard Electronics, Inc.
                                            6065 Parkland Boulevard
                                            Mayfield Heights, Ohio 44124
                                            Attention: Secretary or
                                                       Assistant Secretary

                  To Billick:               Steven M. Billick
                                            17281 Buckthorn Drive
                                            Chagrin Falls, Ohio 44023-1412

11.      General Provisions
         ------------------

         11.01 NO SET-OFF OR COUNTER CLAIM. There shall be no right of set-off
         or counter claim, in respect of any claim, debt or obligation, against
         payments to Billick, his dependents, beneficiaries or estate provided
         for in this Agreement.

         11.02 BENEFICIARY. No right or interest to or in any payments shall be
         assignable by Billick; provided, however, that this provision shall not
         preclude him from designating one or more beneficiaries to receive any
         amount that may be payable after his death and shall not preclude the
         legal representative of his estate from assigning any right hereunder
         to the person or persons entitled thereto under his will or, in the
         case of intestacy, to the person or persons entitled thereto under the
         laws of intestacy applicable to his estate. The term "beneficiaries" as
         used in this Agreement shall mean a beneficiary or beneficiaries so
         designated to receive any such amount or, if no beneficiary has been so
         designated, the legal representative of Billick's estate.

         11.03 ASSIGNMENT. No right, benefit or interest hereunder, shall be
         subject to anticipation, alienation, sale, assignment, encumbrance,
         charge, pledge, hypothecation, or set-off in respect of any claim, debt
         or obligation, or to execution, attachment, levy or similar process, or
         assignment by operation of law. Any attempt, voluntary or involuntary,
         to effect any action specified in the immediately preceding sentence
         shall, to the full extent permitted by law, be null, void and of no
         effect.

         11.04 LEGAL REPRESENTATIVE. In the event of Billick's death or a
         judicial determination of his incompetence, reference in this Agreement
         to Billick shall be deemed, where appropriate, to refer to his legal
         representative or, where appropriate, to his beneficiary or
         beneficiaries.

         11.05 HEADINGS. The titles to sections in this Agreement are intended
         solely for convenience and no provision of this Agreement is to be
         construed by reference to the title of any section.

         11.06 BINDING EFFECT. This Agreement shall be binding upon and shall
         inure to the benefit of (a) Billick and, subject to the provisions of
         Sections 11.02 and 11.03 hereof,

                                       11
<PAGE>   14

         his heirs and legal representatives, and (b) the Company and its
         successors as provided in Section 14 hereof.

         11.07 EXCISE TAX GROSS UP. Billick shall be entitled to a cash payment
         (the "Excise Tax Gross-Up Payment") equal to the amount of excise taxes
         which Billick is required to pay pursuant to Section 4999 of the
         Internal Revenue Code of 1986, as amended ("Code"), as a result of any
         parachute payments as defined in Section 280G(b)(2)made by or on behalf
         of the Company or any successor thereto, under this Agreement or
         otherwise, resulting in an "excess parachute payment" as defined in
         Section 280G(b)(1) of the Code. In addition to the foregoing, the
         Excise Tax Gross-Up Payment due to Billick under this Section 11.07
         shall be increased by the aggregate of the amount of federal, state and
         local income and excise taxes for which Billick will be liable on
         account of the Excise Tax Gross-Up Payment to be made under this
         Section 11.07, such that Billick will receive the Excise Tax Gross-Up
         Payment net of all income and excise taxes imposed on Billick on
         account of the receipt of the Excise Tax Gross-Up Payment. The
         computation of the Excise Tax Gross-Up Payment shall be determined, at
         the expense of the Company, by an independent accounting, actuarial or
         consulting firm selected by the Company. Such Excise Tax Gross-Up
         Payment shall be made at such time as the Company shall determine, in
         its sole discretion, but in no event later than the date five (5)
         business days before the due date, without regard to any extension, for
         filing Billick's federal income tax return for the calendar year for
         which it is determined that excise taxes are payable under Section 4999
         of the Code. Notwithstanding the foregoing, there shall be no
         duplication of payments by the Company under this Section 11.07 in
         respect of excise taxes under Section 4999 of the Code to the extent
         the Company is making payments in respect of such excise taxes under
         any other arrangement with Billick. In the event that Billick is
         ultimately assessed with excise taxes under Section 4999 of the Code
         which exceed the amount of excise taxes used in computing Billick's
         payment under this Section 11.07, the Company or its successor shall
         indemnify Billick for such additional excise taxes plus any additional
         excise taxes, income taxes, interest and penalties resulting from the
         additional excise taxes and the indemnity hereunder.

12.      Amendment or Modification; Waiver
         ---------------------------------

                  No provision of this Agreement may be amended or waived unless
         such amendment or waiver is authorized by the Board of Directors of the
         Company or the Compensation Committee thereof and is agreed to in
         writing, signed by Billick and by an officer of the Company thereunto
         duly authorized by either the Board of Directors or the Compensation
         Committee. Except as otherwise specifically provided in this Agreement,
         no waiver by either party hereto of any breach by the other party
         hereto of any condition or provision of this Agreement to be performed
         by such other party shall be deemed a waiver of a subsequent breach of
         such condition or provision or a waiver of a similar or dissimilar
         provision or condition at the same or at any prior or subsequent time.

                                       12
<PAGE>   15

13.      Severability
         ------------

                  In the event that any provision or portion of this Agreement
         shall be determined to be invalid or unenforceable for any reason, the
         remaining provisions and portions of this Agreement shall be unaffected
         thereby and shall remain in full force and effect to the fullest extent
         permitted by law.

14.      Successors to the Company
         -------------------------

                  Except as otherwise provided herein, this Agreement shall be
         binding upon and inure to the benefit of the Company and any successor
         of the Company, including, without limitation, any corporation which
         acquires directly or indirectly all or substantially all of the assets
         or capital stock of the Company whether by merger, consolidation, sale
         or otherwise (and such successor shall thereafter be deemed the Company
         for the purposes of this Agreement), but shall not otherwise be
         assignable by the Company.

15.      Operation of Agreement
         ----------------------

         15.01 EFFECTIVE DATE. This Agreement is effective April 24, 2000.

         15.02 CHANGE IN CONTROL. For the purpose of this Agreement, the term
         "Change in Control" of the Company shall mean a change in control of a
         nature that would be required to be reported in response to Item 6(e)
         of Schedule 14A of Regulation 14A promulgated under the Securities
         Exchange Act of 1934 as in effect on the date of this Agreement;
         provided that, without limitation, such a change in control shall be
         deemed to have occurred if and when (a) any "person" (as such term is
         used in Sections 13(d) and 14(d)(2) of the Securities Exchange Act of
         1934), excluding The Pioneer Stock Benefit Trust, any employee benefit
         plan of the Company, any trust established under any employee benefit
         plan of the Company, or any trustee of any trust established under any
         employee benefit plan of the Company, is or becomes a beneficial owner,
         directly or indirectly, of securities of the Company representing
         twenty percent (20%) or more of the combined voting power of the
         Company's then outstanding securities, or (b) during any period of
         twelve (12) consecutive months, commencing before or after the date of
         this Agreement, individuals who, at the beginning of such twelve (12)
         month period were directors of the Company for whom Billick, as a
         shareholder, shall have voted, cease for any reason to constitute at
         least a majority of the Board of Directors of the Company.

         15.03 GOOD REASON. For the purpose of this Agreement, "Good Reason"
         shall mean the occurrence of: (a) any reduction in Billick's position,
         authority or title; (b) any material reduction in Billick's
         responsibilities or duties for the Company; (c) any material adverse
         change or reduction in the aggregate perquisites, benefits and payments
         to which Billick is entitled pursuant to Sections 4.02 and 5.01 hereof;
         (d) any relocation of Billick's principal place of work with the
         Company to a location that exceeds by fifty (50) miles the distance
         from the location of his residence at the time of such relocation of
         Billick's principal place of work with the Company to 6065 Parkland
         Boulevard, Mayfield

                                       13
<PAGE>   16

         Heights, Ohio; or (e) the material breach or material default by the
         Company of any of its agreements or obligations under any provision of
         this Agreement, unless such breach or default is substantially cured
         within a reasonable period of time (hereby defined as thirty (30) days)
         after written notice advising the Company of the acts or omissions
         constituting such breach or default is actually received by the
         Company. As used in Section 15.03(c), an "adverse change or material
         reduction" in the aggregate perquisites, benefits and payments to which
         Billick is entitled pursuant to Sections 4.02 and 5.01 shall be deemed
         to result from any reduction or any series of reductions which, in the
         aggregate, exceeds five percent (5%) of the value of such perquisites,
         benefits and payments determined as of the date of this Agreement. If
         Billick claims the existence of a Good Reason, he shall give written
         notice to the Company of the event constituting Good Reason not later
         than ninety (90) days following the later to occur of the occurrence of
         the event (e.g., the actual reduction in compensation, the scheduled
         date of relocation or the date of the breach) constituting Good Reason
         or his actual knowledge thereof. If the event which Billick claims to
         be a Good Reason is not cured within thirty (30) days following the
         date of such notice, Billick must resign within ten (10) days following
         the thirty (30) day cure period in order to invoke his right to resign
         for Good Reason. If no such timely resignation occurs or no such timely
         written notices are given, Billick's right to resign for Good Reason
         with respect to such event shall be permanently waived.

16.      Enforcement Costs
         -----------------

                  The Company is aware that upon the occurrence of a Change in
         Control the Board of Directors or a shareholder of the Company may then
         cause or attempt to cause the Company to refuse to comply with its
         obligations under this Agreement, or may cause or attempt to cause the
         Company to institute, or may institute, litigation seeking to have this
         Agreement declared unenforceable, or may take, or attempt to take,
         other action to deny Billick the benefits intended under this
         Agreement. In these circumstances, the purpose of this Agreement could
         be frustrated. It is the intent of the Company that Billick not be
         required to incur the expenses associated with the enforcement of his
         rights under this Agreement by litigation or other legal action because
         the cost and expense thereof would substantially detract from the
         benefits intended to be extended to Billick hereunder, nor be bound to
         negotiate any settlement of his rights hereunder under threat of
         incurring such expenses. Accordingly, if following a Change in Control
         it should appear to Billick that the Company has failed to comply with
         any of its obligations under this Agreement or in the event that the
         Company or any other person takes any action to declare this Agreement
         void or unenforceable, or institutes any litigation or other legal
         action designed to deny, diminish or to recover from, Billick, the
         benefits intended to be provided to Billick hereunder, and that Billick
         has complied with all of his obligations under this Agreement, the
         Company irrevocably authorizes Billick from time to time to retain
         counsel of his choice at the expense of the Company as provided in this
         Section 16, to represent Billick in connection with the initiation or
         defense of any litigation or other legal action, whether by or against
         the Company or any Director, officer, shareholder or other person
         affiliated with the Company, in any jurisdiction. Notwithstanding any
         existing or prior attorney-client relationship between the Company and
         such counsel, the Company irrevocably consents to Billick entering into
         an attorney-client relationship with

                                       14
<PAGE>   17

         such counsel, and in that connection the Company and Billick agree that
         a confidential relationship shall exist between Billick and such
         counsel. The reasonable fees and expenses of counsel selected from time
         to time by Billick as herein provided shall be paid or reimbursed to
         Billick by the Company on a regular, periodic basis upon presentation
         by Billick of a statement or statements prepared by such counsel in
         accordance with its customary practices, up to a maximum aggregate
         amount of $500,000.

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

ATTEST:                              PIONEER-STANDARD ELECTRONICS, INC.

/s/ Nancy E. Hoyt                    /s/ James L. Bayman
---------------------                --------------------------------
                                     James L. Bayman, Chairman and Chief
                                     Executive Officer

ATTEST:

/s/ Nancy E. Hoyt                    /s/ Steven M. Billick
---------------------                -------------------------------------
                                     Steven M. Billick

                                       15

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