OLYMPIC CASCADE FINANCIAL CORPORATION

                         NATIONAL SECURITIES CORPORATION

                              EMPLOYMENT AGREEMENT

         This Employment Agreement  ("Agreement") is made effective this 1st day
of July,  1999,  by and among  NATIONAL  SECURITIES  CORPORATION,  a  Washington
corporation (the "Company"),  OLYMPIC CASCADE FINANCIAL CORPORATION,  a Delaware
corporation ("Olympic") and CRAIG GOULD, an individual ("Executive").

                                    RECITALS

          A. The Company and Olympic desire to be assured of the association and
     services of Executive for the Company and Olympic.

          B.  Executive is willing and desires to be employed by the Company and
     Olympic, and the Company and Olympic are willing to employ Executive,  upon
     the terms, covenants and conditions hereinafter set forth.

                                    AGREEMENT

         NOW,  THEREFORE,  in consideration  of the mutual terms,  covenants and
conditions hereinafter set forth, the parties hereto do hereby agree as follows:

1.  EMPLOYMENT.  The Company  hereby  employs  Executive  as "Vice  President of
Corporate  Finance," and Olympic hereby  employs  Executive as "Vice Chairman of
Technology,"  subject to the  supervision  and direction of the Chief  Executive
Officer and Board of Directors of the Company and  Olympic,  respectively.  This
Agreement supersedes any earlier Employment Agreement among the parties.

2. TERM. The term of this Agreement  shall be for a period of time commencing on
the date hereof,  and terminating on June 30, 2002,  unless  terminated  earlier
pursuant to Section 6 below.

3.       COMPENSATION; REIMBURSEMENT.

3.1 BASE SALARY.  For all services  rendered by Executive  under this Agreement,
the Company shall pay  Executive a base salary  ("Base  Salary") of $120,000 per
annum.  The  Base  Salary  is  subject  to  increases  from  time to time at the
discretion of the Board of Directors of the Company.

3.2  ADDITIONAL  BENEFITS.  In addition to the Base Salary,  Executive  shall be
entitled to all other  benefits of employment  now or hereafter  provided to the
other  executives  of the Company,  its  operating  divisions  or  subsidiaries,
including but not limited to individual  health  insurance,  life  insurance and
on-premises parking.

3.3 BONUSES.  It is  contemplated  that from time to time Executive will be paid
bonuses  based  upon the  Company's  and  Executive's  performance,  in the sole
discretion of the Company.

3.4 CONTINUING OBLIGATIONS.  All of the Company's compensation obligations under
this Section shall continue through the term of this Agreement.

3.5   REIMBURSEMENT.   Executive   shall  be  reimbursed   for  all   reasonable
out-of-pocket  business expenses for business travel and business  entertainment
incurred in connection  with the performance of his duties under this Agreement.
The  reimbursement  of  Executive's  business  expenses  shall  be  upon  weekly
presentation  to and  approval  by the  Company  of  valid  receipts  and  other
appropriate documentation for such expenses.

4.       SCOPE OF DUTIES.

4.1 ASSIGNMENT OF DUTIES. Executive shall have such duties as may be assigned to
him from time to time by the Company's or Olympic's Chief Executive  Officer and
Board of Directors  commensurate with his experience and responsibilities in the
position for which he is employed pursuant to Section 1 above. Such duties shall
be exercised  subject to the control and  supervision of the Boards of Directors
of the Company and Olympic.

4.2  EXECUTIVE'S  DEVOTION OF TIME.  Executive  hereby agrees to devote his full
time, abilities and energy to the faithful performance of the duties assigned to
him and to the promotion and  forwarding of the business  affairs of the Company
and Olympic,  and not to divert any business  opportunities  from the Company or
Olympic to himself or to any other person or business entity. Executive shall be
entitled to not less than three (3) weeks of paid vacation and not less than two
(2) weeks of paid sick leave during each fiscal year of the Company.

4.3 CONFLICTING ACTIVITIES.  For the term of this Agreement or until Executive's
employment hereunder terminates, whichever occurs first, Executive hereby agrees
to promote and develop all  business  opportunities  that come to his  attention
relating to current or anticipated  future  business of the Company and Olympic,
in a manner  consistent  with the best  interest  of the Company and Olympic and
with his duties under this Agreement.  If Executive  becomes aware of a business
opportunity  during the performance of his duties hereunder,  through the use of
the property or  information of the Company or Olympic,  or under  circumstances
that would  reasonably  lead Executive to believe that the business  opportunity
was  intended by the  offeror to be offered to the Company or Olympic,  he shall
first offer such  opportunity  to the  Company or  Olympic,  as the case may be.
Should the Chief  Executive  Officer of the Company or Olympic,  as the case may
be, on behalf of the Company or Olympic,  not  exercise its right to pursue this
business  opportunity  within a reasonable  period of time, not to exceed thirty
(30) days, Executive may develop the business opportunity for himself; provided,
however,  that such  development  may in no way conflict or  interfere  with the
duties  owed by  Executive  to the Company  and  Olympic  under this  Agreement.
Further, Executive may develop such business opportunities only on his own time,
and may not use any service, personnel,  equipment, supplies, facility, or trade
secrets of the Company or Olympic in their development. As used herein, the term
"business  opportunity"  shall  not  include  business  opportunities  involving
investment  in  publicly  traded  stocks,  bonds or other  securities,  or other
investments of a personal nature.

5.  CONFIDENTIALITY  OF TRADE  SECRETS  AND OTHER  MATERIALS.  Other than in the
performance of his duties  hereunder,  Executive agrees not to disclose,  either
during the term of his  employment  by the  Company  and  Olympic or at any time
thereafter,  to any person,  firm or corporation any information  concerning the
business affairs, the trade secrets or the customer lists or similar information
of the  Company or  Olympic.  Any  technique,  method,  process,  technology  or
customer  compilation or list used by the Company or Olympic shall be considered
a  "trade  secret"  for the  purposes  of this  Agreement.  Notwithstanding  the
foregoing,  the names and other  information  relating  to the retail  brokerage
customers of Executive who have been assigned  Executive's  A/E number shall not
be considered as  "confidential  information"  for purposes of this Section 5 or
any other provision of this Agreement.

6.  SEVERANCE.  So long as this  Agreement is in effect,  and except as would be
inconsistent  with  Section  7,  upon  termination  of  Executive's  employment,
Executive  or  Executive's  designees  or heirs  shall be entitled to a lump sum
payment  equal to one year of  Executive's  Base  Salary as then in effect  (the
"Severance Payment").

7.       TERMINATION.

7.1      BASES FOR TERMINATION.

(a)      Executive's employment hereunder may be terminated at any time by
         mutual agreement of the parties.

(b) Executive's  employment hereunder shall automatically  terminate on the last
day of the month in which  Executive  dies.  If  Executive  becomes  permanently
disabled  and is unable to perform  the  essential  duties  defined in Section 4
hereof (the "Duties") with or without accommodation, then Executive's employment
hereunder may be  terminated.  "Permanent  disability" as used herein shall mean
mental or physical disability or both, evidenced by:

(i) a consecutive  six month period of time during which  Executive is unable to
perform the Duties with or without accommodation; and

(ii)  medical  documentation  from  Executive's  attending  physician  or a duly
licensed  independent  physician  selected by the Company's  Board of Directors,
stating that Executive is physically  and/or  mentally  disabled from performing
the  essential  Duties  with or  without  accommodation  and that the  disabling
condition is permanent and will not substantially change or improve.

(c)  Executive  may  terminate  his or her  employment  hereunder  by giving the
Company and Olympic 30 days prior written  notice,  which  termination  shall be
effective on the 30th day following such notice.

(d)  Executive's  employment  may not be  terminated  by the Company and Olympic
against his will without a finding,  by an impartial  third person or panel,  of
fraud, theft or defalcation.

(e)  Executive's  employment  hereunder  may be  terminated  by the  Company and
Olympic or by Executive at any time within ninety (90) days after the occurrence
of a Change in Control (as defined below). Upon such termination:

(i) the Company shall pay to Executive as a lump-sum  payment an amount equal to
two (2) years' Base Salary in effect at the time of termination;

(ii) the Company shall provide Executive with a continuation of health insurance
coverage, existing office space and existing secretarial and telephone services,
in each case for a period of eighteen (18) months after the date of termination;
and

(iii) all stock  options  issued by the Company and Olympic to  Executive  shall
immediately  vest and become  exercisable for a period of at least two (2) years
after the date of termination,  notwithstanding any provision to the contrary in
the  Company's or Olympic's  stock option plan or in any stock option  agreement
between the Company, Olympic and Executive.

For purposes of this Agreement,  a "Change in Control" shall mean the occurrence
of any of the following events:

                    (x)  the  acquisition  by any  individual,  entity  or group
                         (within the meaning of

Section 13(d)(3) or 14(d)(2) of the Securities  Exchange Act of 1934, as amended
(the "Exchange Act") (collectively, a "person") of Beneficial ownership (as such
term is defined in Rule 13d-3 promulgated  under the Exchange Act),  directly or
indirectly,  of twenty-five percent (25%) or more of the then outstanding shares
of common stock of the Company or Olympic (collectively, the "Outstanding Common
Stock"); provided,  however, that the following shall not constitute a Change of
Control:  (i) any  acquisition  by an  Underwriter  (as such term is  defined in
Section  2(11) of the  Securities  Act of 1933,  as amended)  for the purpose of
making a public  offering;  or (ii) any acquisition by any employee benefit plan
(or related  trust)  sponsored  or  maintained  by the Company or Olympic or any
corporation controlled by the Company or Olympic;

                    (y)  the sale or liquidation of all or substantially  all of
                         the assets of the

Company or Olympic; or

                    (z)  any transaction or series of transactions  which result
                         in Steven A. Rothstein

directly or  indirectly  owning less than ten percent  (10%) of the  Outstanding
Common Stock.

(f) Notwithstanding anything contained herein, or in any other agreement between
the  Company or Olympic and  Executive,  or benefit or  compensation  plan under
which the Executive participates, to the contrary, in the event that any amounts
due Executive  under this Section 7.1, or under any other plan or program of the
Company  or Olympic  or other  agreement  between  the  Company  or Olympic  and
Executive,  constitute  "parachute payments," within the meaning of section 280G
of the Internal Revenue Code of 1986, as amended (the "Code"), and the amount of
such parachute payments,  when reduced by the federal excise taxes due and owing
on such  parachute  payments,  if any, is less than the amount  Executive  would
receive if he were paid only three (3) times his "base  amount," as that term is
defined in section 280G of the Code,  then,  in lieu of all  payments  hereunder
which are parachute payments,  Executive shall be paid, in cash, an amount equal
to three (3) times his base amount less one dollar ($1.00).  The  determinations
to be made with respect to this Section  7.1(f) shall be made by an  independent
auditor jointly selected by the parties.

8.  NONCOMPETE.  Executive  covenants  and  agrees  that  during the term of his
employment  hereunder  and  for  a  period  of  one  (1)  year  thereafter  (the
"Noncompetition  Period"),  Executive shall not, directly or indirectly recruit,
solicit or otherwise induce any customer,  officer or employee of the Company or
Olympic,  or independent  contractor  associated with the Company or Olympic, to
discontinue  such  relationship   with  the  Company  or  Olympic.   During  the
Noncompetition Period, Executive shall hold in confidence and shall not disclose
to anyone, or use or otherwise exploit for his own benefit or the benefit of any
person or entity, any confidential or proprietary  information of the Company or
Olympic,  including,  without limitation,  customer and vendor lists,  financial
statements and information,  trade secrets or marketing  arrangements and plans,
unless  directed  to do so by order of any court;  provided,  however,  that the
terms of this Section 8 shall not restrict Executive with respect to any Company
or Olympic customer who has been assigned Executive's A/E number.

9.       MISCELLANEOUS.

9.1  TRANSFER AND  ASSIGNMENT.  This  Agreement is personal as to Executive  and
shall not be assigned or  transferred  by  Executive  without the prior  written
consent of the Company and  Olympic.  This  Agreement  shall be binding upon and
inure to the benefit of all of the parties hereto and their respective permitted
heirs, personal representatives, successors and assigns.

9.2  SEVERABILITY.  Nothing  contained  herein shall be construed to require the
commission of any act contrary to law. Should there by any conflict  between any
provisions hereof and any present or future statute, law, ordinance, regulation,
or other  pronouncement  having the force of law, the latter shall prevail,  but
the provision of this Agreement  affected thereby shall be curtailed and limited
only to the extent necessary to bring it within the requirements of the law, and
the  remaining  provisions  of this  Agreement  shall  remain in full  force and
effect.

9.3  GOVERNING  LAW.  This  Agreement  is made under and shall be  construed  in
accordance with the laws of the State of Illinois, without regard to conflict of
laws principles.  The Company, Olympic and Executive hereby consent and agree to
be subject to the  jurisdiction  of the federal and state courts of the State of
Illinois sitting in Chicago, Illinois, in any suit, action or proceeding arising
out of this Agreement or the transactions contemplated hereby.

9.4 COUNTERPARTS. This Agreement may be executed in several counterparts and all
documents so executed  shall  constitute  one  agreement,  binding on all of the
parties  hereto,  notwithstanding  that  all of the  parties  did not  sign  the
original  or  the  same  counterparts.  9.5  ENTIRE  AGREEMENT.  This  Agreement
constitutes the entire  agreement and  understanding of the parties with respect
to  the  subject  matter  hereof  and  supersedes  all  prior  oral  or  written
agreements,   arrangements,   and  understandings   with  respect  thereto.   No
representation, promise, inducement, statement or intention has been made by any
party  hereto that is not  embodied  herein,  and not party shall be bound by or
liable for any alleged representation,  promise,  inducement or statement not so
set forth herein.

9.6  MODIFICATION.  This  Agreement  may be modified,  amended,  superseded,  or
canceled,  and  any of the  terms,  covenants,  representations,  warranties  or
conditions hereof may be waived,  only by a written  instrument  executed by the
party or parties to be bound by any such modification,  amendment, supersession,
cancellation, or waiver.

9.7 ATTORNEYS'  FEES AND COSTS.  In the event of any dispute  arising out of the
subject  matter of this  Agreement,  the  prevailing  party  shall  recover,  in
addition to any other  damages  assessed,  its  attorneys'  fees and court costs
incurred in litigating or otherwise  settling or resolving such dispute  whether
or not an action is  brought or  prosecuted  to  judgment.  In  construing  this
Agreement, none of the parties hereto shall have any term or provision construed
against such party solely by reason of such party having drafted the same.

9.8 WAIVER.  The waiver by either of the  parties,  express or  implied,  of any
right under this Agreement or any failure to perform under this Agreement by the
other party,  shall not  constitute  or be deemed as a waiver of any other right
under this Agreement, or of any other failure to perform under this Agreement by
the other party, whether of a similar or dissimilar nature.

9.9  CUMULATIVE  REMEDIES.  Each  and all of the  several  rights  and  remedies
provided in this Agreement, or by law or in equity, shall be cumulative,  and no
one of them shall be exclusive of any other right or remedy, and the exercise of
any one of such  rights  or  remedies  shall  not be  deemed a waiver  of, or an
election to exercise, any other such right or remedy.

9.10 HEADINGS.  The section and other  headings  contained in this Agreement are
for  reference  purposes  only and shall not in any way affect the  meaning  and
interpretation of this Agreement.

9.11  NOTICES.  Any  notice  under this  Agreement  must be in  writing,  may be
telecopied,  sent by express 24-hour guaranteed courier,  or hand-delivered,  or
may be served by depositing the same in the United States mail, addressed to the
party to be notified,  postage-prepaid and registered or certified with a return
receipt requested.  The addresses of the parties for the receipt of notice shall
be as follows:

         If to the Company or Olympic:

                         National Securities Corporation

                            875 North Michigan Avenue

                                   Suite 1560

                             Chicago, Illinois 60611

                            Attn: Steven A. Rothstein

                        If to the Executive: Craig Gould

                            875 North Michigan Avenue

                                   Suite 1560

                             Chicago, Illinois 60611

Each notice given by registered or certified mail shall be deemed  delivered and
effective  on the date of  delivery  as shown on the  return  receipt,  and each
notice  delivered  in any other manner shall be deemed to be effective as of the
time of actual delivery thereof. Each party may change its address for notice by
giving notice thereof in the manner provided above.

         IN WITNESS  WHEREOF,  the parties  hereto  have caused this  Employment
Agreement to be executed as of the date first set forth above.

         NATIONAL SECURITIES CORPORATION

         By: _______________________________
               Steven A. Rothstein, Chairman

         OLYMPIC CASCADE FINANCIAL CORPORATION

         By: _______________________________
               Steven A. Rothstein, Chairman

         EXECUTIVE

         -----------------------------------
         Craig Gould