Document:

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                                                                     EXHIBIT 4.2

           FIRST AMENDMENT TO ASSET BASED LOAN AND SECURITY AGREEMENT

         THIS FIRST AMENDMENT TO ASSET BASED LOAN AND SECURITY AGREEMENT, dated
as of ____________, 1999 ("First Amendment") is entered into by and between
MAZEL STORES, INC. ("Stores") an Ohio corporation, and ODD-JOB ACQUISITION CORP.
("Odd-Job"), a Delaware corporation, HIA TRADING ASSOCIATES, a New York General
Partnership, jointly and severally ("Borrower"), whose mailing address is 31000
Aurora Road, Solon, Ohio 44139, and THE PROVIDENT BANK ("Agent"), an Ohio
banking corporation, whose mailing address is 1111 Superior Avenue, Cleveland,
Ohio 44114-2522, LASALLE BANK NATIONAL ASSOCIATION ("LaSalle"), a national
banking association whose mailing address is 135 South LaSalle Street, Chicago,
Illinois 60603, and NATIONAL CITY BANK ("NCB," and together with Agent and
LaSalle,"Lenders"), a national banking association whose mailing address is
National City Center, P.O. Box 5756 Loc. 2104, Cleveland, Ohio 44101-0756.

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

         WHEREAS, Borrower and the Lenders are parties to that certain Asset
Based Loan and Security Agreement dated as of March 10, 1998 (hereinafter the
"Original Agreement");

         WHEREAS, Borrower and the Lenders have agreed to amend the Original
Agreement in order to modify certain terms, provisions, definitions and
covenants contained in the Original Agreement all upon the terms and conditions
set forth in this First Amendment.

         NOW, THEREFORE, in consideration of the foregoing and the mutual
covenants and agreements contained herein, and for other good and valuable
consideration, the Borrower and the Lenders agree as follows:

SECTION 1. AMENDMENT TO SECTION 2 - LOANS AND INTEREST.

         A. Subsection 2.1(a) of the Original Agreement is hereby deleted in its
entirety and the following inserted in lieu thereof:

         (a)      Subject to the terms and conditions of this Agreement, and in
                  reliance upon the representations and warranties contained
                  herein, each Lender severally agrees to make Advances to or
                  for the account of Borrower in the form of loans to the
                  Borrower in an aggregate amount not to exceed the lesser of
                  (i) the amount of such Lender"s Revolving Credit Commitment,
                  minus the lesser of (A) the aggregate face amount such
                  Lender"s LC Exposure or (B) the Available Draw under such
                  Lender"s LC Exposure or (ii) such Lender"s Ratable portion of
                  the Borrowing Base, minus the lesser of (E) the aggregate face
                  amount such Lender"s LC Exposure or (F) the Available Draw
                  under such Lender"s LC Exposure (the lesser of (i) or (ii)
                  being referred to hereinafter as the "Maximum Loan Amount").

<PAGE>   2

                  Agent reserves the right to modify, in its reasonable
                  discretion, subject to Section 11.21 herein, the advance rates
                  stated in the definition of "Borrowing Base" upon ninety (90)
                  days prior notice to Borrower. Should the outstanding amount
                  of Loans at any time exceed the Maximum Loan Amount, Borrower
                  shall on demand immediately repay such excess amount. Each
                  Lender"s loan pursuant to this Section 2.1 shall be evidenced
                  by a properly executed promissory note in the form of Exhibit
                  C ("Revolving Loan Note"), with all blanks appropriately
                  filled in.

SECTION 2.  AMENDMENT TO SECTION 5 - AFFIRMATIVE COVENANTS.

         A. Subsection 5.15(d) of the Original Agreement is hereby deleted in
its entirety and the following inserted in lieu thereof:

         (d)      A ratio of Indebtedness owing to the Lenders to EBITDA at all
                  times not more than: (i) for fiscal quarters ending closest to
                  October 31, 4.25 to 1.0, and (ii) for all other fiscal
                  quarters, 4.0 to 1.0. This covenant shall be tested quarterly.

         B. Section 5.19 of the Original Agreement are hereby deleted in its
entirety and the following inserted in lieu thereof:

                  5.19 LANDLORD WAIVER AND CONSENT AGREEMENTS. The Borrower
         agrees to use its best efforts to cause all the owners and/or
         landlord"s of retail store locations (i) leased by Borrower on or after
         August 1, 1999, and (ii) which have their leases renewed on or after
         August 1, 1999 to execute landlord waiver and consent agreements in
         form acceptable to Agent, within sixty (60) days from the date such
         retail store location is occupied or such lease is renewed.

SECTION 3.  AMENDMENT TO SECTION 6 - NEGATIVE COVENANTS.

         A. Section 6.13 of the Original Agreement is hereby deleted in its
entirety and the following inserted in lieu thereof:

                  6.13 CAPITAL EXPENDITURES. Borrower shall not expend funds or
         accrue expense for any machinery, equipment, real or personal property
         or any other type of property including leasehold improvements, whether
         through direct purchases and capitalized lease obligations, in excess
         of Thirteen Million Dollars ($13,000,000.00) in the aggregate during
         fiscal year-end January, 2000, and an aggregate amount not to exceed
         fifty percent (50%) of EBITDA in any fiscal year thereafter. The
         capital expense limits contained herein are subject to the continued
         compliance by the Borrower (prior to and after giving effect to the
         expenditure) with the covenants and obligations herein. Borrower shall
         be permitted to carry-forward as an additional capital expense
         allowance the amount of any unexpended portion of the capital expense
         limitation which had been designated for scheduled capital
         expenditures.

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SECTION 4. FEES AND EXPENSES.

         In consideration of the modifications set forth herein, Borrower shall
pay all out-of-pocket fees and expenses incurred by the Lenders in connection
with the preparation, negotiation, execution and delivery of this First
Amendment and the agreements, documents and instruments executed in connection
therewith, including, without limitation, legal fees and other costs and
expenses of the Agent.

SECTION 5.  REFERENCES.

         On and after the Effective Date of this First Amendment each reference
in the Original Agreement to "this Agreement", "hereunder", "hereof", "thereof"
and each reference to the Original Agreement in any of the other Loan Documents
shall mean and refer to the Original Agreement, as amended by this First
Amendment. All references to exhibits or schedules in the Original Agreement
shall be deemed to refer to the exhibits or schedules attached hereto. The
Original Agreement, as amended by this First Amendment, is and shall continue to
be in full force and effect and is hereby and in all respects ratified and
confirmed. Except as amended by this First Amendment, all of the terms,
conditions and provisions of the Original Agreement are incorporated herein by
reference and Borrower agrees to be bound by all of the terms and conditions of
the Original Agreement as amended by this First Amendment. The Loan Documents
executed in connection with the Original Agreement shall remain in full force
and effect in all respects as if the unpaid balance of the principal
outstanding, together with interest accrued thereon, had originally been payable
and secured as provided for therein, as amended from time to time and as
modified by this First Amendment. Nothing herein shall affect or impair any
rights and powers which Lenders may have under the Original Agreement and any
and all related Loan Documents.

SECTION 6.  APPLICABLE LAW.

         This First Amendment shall be deemed to be a contract under the laws of
the State of Ohio, and for all purposes shall be construed in accordance with
the laws of the State of Ohio.

SECTION 7.  COUNTERPARTS; CONFLICTS.

         This First Amendment may be executed in any number of counterparts, all
of which taken together shall constitute one and the same instrument, and any
one of the parties hereby may execute this First Amendment by signing any such
counterpart. In the event of any ambiguity of conflict between the terms,
conditions, or provisions of the Original Agreement and this First Amendment,
the terms, conditions and provisions of this First Amendment will control.

SECTION 8.  EFFECTIVE DATE.

         This First Amendment shall be effective as of __________, 1999
("Effective Date").

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SECTION 9.  MISCELLANEOUS.

         A.       In consideration of this First Amendment, Borrower hereby
                  releases and discharges Lenders and their shareholders,
                  directors, officers, employees, attorneys, affiliates and
                  subsidiaries from any and all claims, demands, liability and
                  causes of action whatsoever, now known or unknown, arising
                  prior to the Effective Date of this First Amendment out of or
                  in any way related to the extension or administration of the
                  obligations, liabilities, and indebtedness of Borrower to
                  Lenders, the Original Agreement or any mortgage or security
                  interest related thereto.

         B.       Borrower and Lenders hereby agree to extend all liens and
                  security interests securing the obligations, liabilities, and
                  indebtedness of Borrower to Lenders, until said obligations,
                  liabilities, and indebtedness, as modified herein, and any and
                  all related promissory notes have been fully paid. The parties
                  hereto further agree that this First Amendment shall in no
                  manner affect or impair the liens and security interests
                  evidenced by the Original Agreement and/or any other
                  instruments evidencing, securing or related to the
                  obligations, liabilities, and indebtedness. Borrower hereby
                  acknowledges that all liens and security interests securing
                  the obligations, liabilities, and indebtedness of Borrower to
                  Lenders are valid and subsisting.

         C.       Borrower covenants and agrees (i) to pay the balance of any
                  principal, together with all accrued interest, as specified
                  above in connection with any promissory note executed and
                  evidencing any indebtedness incurred in connection with the
                  Original Agreement, as modified by this First Amendment, and
                  (ii) to perform and observe covenants, agreements,
                  stipulations and conditions on its part to be performed
                  hereunder or under the Original Agreement and all other
                  related Loan Documents executed in connection herewith or
                  therewith.

         D.       Borrower hereby declares and certifies to Lenders that as of
                  the Effective Date of this First Amendment, except as
                  previously reported to Lenders in writing or except as waived
                  in connection herewith, no Event of Default exists under the
                  Original Agreement, as amended by this First Amendment, nor
                  shall any event have occurred which, with the giving of notice
                  or the passage of time, or both, would constitute an Event of
                  Default. Borrower hereby declares that Borrower has no set
                  offs, counterclaims, defenses or other causes of action
                  against Lenders arising out of the Original Agreement or any
                  related loan documents, and to the extent any such set offs,
                  counterclaims, defenses or other causes of action may exist,
                  whether known or unknown, such items are hereby waived by
                  Borrower.

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         E.       Borrower hereby represents and warrants to Lenders that (a)
                  Borrower has the legal power and authority to execute and
                  deliver this First Amendment; (b) the officials executing this
                  First Amendment have been duly authorized to execute and
                  deliver the same and bind Borrower with respect to the
                  provisions hereof; (c) the execution and delivery hereof by
                  Borrower and the performance and observance by Borrower of the
                  provisions hereof do not violate or conflict with the
                  organizational agreements of Borrower or any law applicable to
                  Borrower or result in a breach of any provisions of or
                  constitute a default under any other agreement, instrument or
                  document binding upon or enforceable against Borrower; and (d)
                  this First Amendment constitutes a valid and binding
                  obligation upon Borrower in every respect.

SECTION 10. MUTUAL WAIVER OF JURY TRIAL.

         AS A SPECIFICALLY BARGAINED INDUCEMENT FOR THE LENDERS TO EXTEND CREDIT
TO BORROWER AND FOR BORROWER TO BORROW FROM LENDERS, AND AFTER HAVING THE
OPPORTUNITY TO CONSULT COUNSEL, BORROWER HEREBY EXPRESSLY WAIVES THE RIGHT TO
TRIAL BY JURY IN ANY LAWSUIT OR PROCEEDING RELATING TO THIS FIRST AMENDMENT OR
THE OTHER LOAN DOCUMENTS OR ARISING IN ANY WAY FROM THE LOANS OR OTHER
OBLIGATIONS UNDER THE LOAN DOCUMENTS.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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         IN WITNESS WHEREOF, the parties have caused this Agreement to be duly
executed and delivered by their proper and duly authorized officers.

AGENT,
LETTER OF CREDIT LENDER, AND
LENDER:

                 THE PROVIDENT BANK

By:
                 -------------------------------
                 John R. Mirlisena, Jr.
                 Senior Vice President

LENDER:

                 NATIONAL CITY BANK          LASALLE BANK
                                             NATIONAL ASSOCIATION

By:                                          By:
                 --------------------------     -----------------------
                 Gregory M. Jelinek             Name: Henry J. Munez
                 Senior Vice President          Its:  Assistant Vice President

BORROWER:

        HIA TRADING ASSOCIATES                MAZEL STORES, INC.
        a New York general partnership        a Delaware corporation

By:     ODD-JOB ACQUISITION CORP.,            By:       ________________________
         a Delaware corporation               Name:     ________________________
                                              Its:      ________________________
By:        __________________________
Name:      __________________________         ODD-JOB ACQUISITION CORP.,
Its:       __________________________          a Delaware corporation

                                               By:       _______________________
                                               Name:     _______________________
                                               Its:      _______________________

                                      -6-<PAGE>   1

                                                                    EXHIBIT 10.3

                                                                     [EXECUTION]

                            2000 EMPLOYMENT AGREEMENT

                  2000 EMPLOYMENT AGREEMENT dated February 25, 2000, effective
as of August 14, 2000, by and between MAZEL STORES, INC., an Ohio corporation,
with its principal place of business at 31000 Aurora Road, Solon, Ohio 44139
(hereinafter referred to as the "COMPANY"), and Brady J. Churches, an individual
residing at 1677 Taylor Corners Circle, Columbus, Ohio 43004 (hereinafter
referred to as the "EMPLOYEE").

                  WHEREAS, the Company wishes to employ the Employee, and the
Employee wishes to accept such employment, on the terms contained herein;

                  NOW, THEREFORE, the parties hereto agree as follows:

                  1. TERM. The Company hereby employs the Employee, and the
Employee hereby accepts such employment, for a term commencing as of the
effective date hereof and ending on October 31, 2003, unless sooner terminated
in accordance with the provisions of Section 4 or Section 5 (the "TERM").

                  2. DUTIES. The Employee, in his capacity as President-Mazel
Retail Division (or such other and comparable titles and position as shall be
given the Employee by the board of directors of the Company (the "BOARD")),
shall faithfully perform for the Company the duties of said offices and shall
perform such other duties of an executive, managerial or administrative nature
as shall be specified and designated from time to time by the Board. The
Employee shall devote substantially all of his business time and effort to the
performance of his duties hereunder. The Employee shall have the right (after
consultation with the President of the Company) to hire and terminate all
employees of the Company's Retail Division who are subordinate to the Employee.

<PAGE>   2

                  3.  COMPENSATION.

                  3.1 SALARY. The Company shall pay the Employee (a) for the
period August 14, 2000 through October 31, 2000, a salary at the rate of Four
Hundred Six Thousand Five Hundred Ten Dollars ($406,510) per annum, and (b) for
the portion of the Term commencing November 1, 2000, a salary at the rate of
Five Hundred Thirteen Thousand One Hundred Sixty One Dollars ($513,161) per
annum (the "ANNUAL SALARY"); PROVIDED, that on each of November 1, 2001 and
November 1, 2002, the Annual Salary shall be increased by four percent (4%) from
the Annual Salary in effect for the preceding 12-month period.

                  3.2 BENEFITS. The Employee shall be permitted during the Term
to participate in any group life, hospitalization or disability insurance plans,
health programs, pension plans or similar benefits that may be available to
other senior executives of the Company generally, on the same terms as such
other executives, in each case, to the extent that the Employee is eligible
under the terms of such plans or programs.

                  3.3 EXPENSES - IN GENERAL. The Company shall pay or reimburse
the Employee for all reasonable out-of-pocket expenses actually incurred or paid
by the Employee during the Term in the performance of the Employee's services
under this Agreement; PROVIDED that the Employee submits proof of such expenses,
with the properly completed forms, as prescribed from time to time by the
Company, no later than thirty (30) days after such expenses have been so
incurred.

                  3.4 ANNUAL BONUS. During the Term, the Employee shall be
entitled to receive an annual bonus (the "ANNUAL BONUS") based upon the
Company's pre-tax income for each fiscal year of the Company (a "FISCAL YEAR")
ending during the Term, commencing with the Fiscal Year ending January 31, 2001.
The Annual Bonus shall be an amount equal to fifty percent (50%) of the Annual
Salary in effect at the end of the relevant Fiscal Year in the event that the
Company's pre-tax income,

                                       -2-

<PAGE>   3

calculated in accordance with generally accepted accounting principles
consistently applied, equals or exceeds the "TARGET AMOUNT" (as hereinafter
defined) for such Fiscal Year. If the Company's pre-tax income for any Fiscal
Year is less than the Target Amount for such Fiscal Year, the Annual Bonus shall
be the amount, if any, equal to (i) (A) the percentage of the Target Amount
which such pre-tax income represents, minus eighty percent (80%), divided by (B)
twenty percent (20%), multiplied by (ii) fifty percent (50%) of the Employee's
Annual Salary in effect at the end of such Fiscal Year. For example, if the
Company's pre-tax is ninety percent (90%) of the Target Amount for the Fiscal
Year ending January 1, 2001, the Annual Bonus shall be calculated as follows:

                  (90%-80%)
                      _________ X $256,580.50 = $128,290.25

                        20%

If the Company's pre-tax income for any Fiscal Year is less than eighty percent
(80%) of the Target Amount for such Fiscal Year, no Annual Bonus shall be
payable for such Fiscal Year. For purposes of this Agreement, the term "TARGET
AMOUNT" shall mean an amount to be determined by the compensation committee of
the Board after consulting with the Employee (if the Employee is then employed
hereunder). The Annual Bonus for each Fiscal Year shall be paid in full to the
Employee as soon as practicable after (but not later than thirty (30) days) the
Company's audited financial statement for such Fiscal Year is available to the
Company. The Employee hereby (i) acknowledges that the Annual Bonus payable
hereunder with respect to the Fiscal Year ending January 31, 2001 is in lieu of
any annual bonus payable with respect to such Fiscal Year pursuant to to the
Employment Agreement dated November 1, 1995 (as amended from time to time) by
and between Mazel Company L.P. (the "PARTNERSHIP"), the Employee and, pursuant
to an Amendment to Employment Agreement made and entered into on September 30,
1996, the Company (the "1995

                                       -3-

<PAGE>   4

AGREEMENT"), and (ii) irrevocably waives any right to an annual bonus with
respect to such Fiscal Year under the 1995 Agreement.

                  3.5 AUTOMOBILE. During the Term, the Employee shall be
entitled to usage of an automobile of his choice which shall be leased by the
Company, provided that the monthly lease payments thereon do not exceed Five
Hundred Dollars ($500) and the Company shall be responsible for the insurance,
gasoline and maintenance required for such automobile.

                  4. TERMINATION UPON DEATH OR DISABILITY. If the Employee dies
during the Term, the obligations of the Company to or with respect to the
Employee shall terminate in their entirety except as otherwise provided under
this Section 4. If the Employee by virtue of ill health or other physical or
mental disability is unable to perform substantially and continuously any
material portion of the duties assigned to him for ninety (90) days in the
aggregate during any twelve (12) month period, or for any sixty (60) consecutive
days, the Company shall have the right to terminate the employment of the
Employee upon notice in writing to the Employee; provided that (i) after receipt
of notice from the Company, the Employee shall have the right within ten (10)
days after such notice to dispute the Company's ability to terminate him under
this Section 4, (ii) within ten (10) days after exercising such right he shall
submit to a physical examination by the Chief of Medicine of any major hospital
in the metropolitan Columbus, Ohio area, and (iii) unless such physician shall
issue his written statement to the effect that in his opinion, based on his
diagnosis, the Employee is capable of resuming his employment and devoting his
full time and energy to discharging his duties within ten (10) days after the
date of such statement the Company shall have the right to terminate the
Employee under this Section 4 without further dispute. Upon termination under
this Section 4, the Employee (or the Employee's estate or beneficiaries in the
case of the death of the Employee) shall be entitled to receive any Annual
Salary, Annual Bonus and other benefits earned and accrued under

                                       -4-

<PAGE>   5

this Agreement, and reimbursement under this Agreement for expenses incurred,
prior to the date of termination (for these purposes, if such termination occurs
during a fiscal year, the Annual Bonus for such fiscal year shall be prorated
based upon the number of days in such fiscal year which elapsed before such
termination and shall be paid at the time provided for in Section 3.4);
thereafter, the Company shall have no further liability to the Employee. No
provision of this Agreement shall limit any of the Employee's (or his
beneficiaries') rights under any insurance, pension or other benefit programs of
the Company for which the Employee shall be eligible at the time of such death
or disability.

                  5.  CERTAIN TERMINATIONS OF EMPLOYMENT.

                  5.1 TERMINATION FOR CAUSE. "CAUSE" shall be deemed to exist if
the Employee (i) is convicted of (or pleads nolo contendere to) a felony, a
crime of moral turpitude or any crime involving the Company (other than pursuant
to actions taken at the direction or with the approval of the Board), (ii) is
found by reasonable determination of the Board, made in good faith, to have
engaged in (A) willful misconduct, (B) willful or gross neglect, (C) fraud, (D)
misappropriation or (E) embezzlement in the performance of his duties hereunder,
or (iii) breaches in any material respect the terms and provisions of this
Agreement (including, but not limited to, any termination by the Employee of his
employment hereunder otherwise than as described in Section 5.2). The Company
may terminate the Employee's employment hereunder for Cause on written notice
(which notice shall specify the reasons for such termination) given to the
Employee at any time following the occurrence of any of the events described in
clauses (i) through (iii) of the foregoing sentence. Upon such termination, the
Employee shall be entitled to receive any Annual Salary, Annual Bonus and other
benefits earned and accrued under this Agreement, and reimbursement under this
Agreement for expenses incurred, prior to the date of such termination (provided
that, for these

                                       -5-

<PAGE>   6

purposes and for all other purposes of this Agreement, if such termination
occurs after the last day of a fiscal year then the unpaid Annual Bonus (if any)
otherwise payable under Section 3.4 for such fiscal year shall be deemed to have
been earned and accrued, but in no event shall any portion of any other
subsequent Annual Bonus be deemed to have been earned or accrued); thereafter,
the Company shall have no further liability to the Employee.

                  5.2. TERMINATION BY THE COMPANY WITHOUT CAUSE; CERTAIN
TERMINATIONS BY THE EMPLOYEE. During the Term, the Company may terminate the
Employee's employment hereunder for any reason on at least thirty (30) days'
written notice given to the Employee. If (i) the Company so terminates the
Employee during the Term, and such termination is not described in Section 4 or
5.1, or (ii) at a time at which no Cause exists, the Employee terminates his
employment hereunder during the Term and such termination (A) is described in
Section 5.3 or (B) is because of any material adverse modification or diminution
of the Employee's duties or material diminution in the Employee's authority,
title or office, which modification or diminution is not cured by the Company
within fifteen (15) days' written notice from the Employee, then

                  (I) the Employee shall be entitled to receive any Annual
Salary, Annual Bonus and other benefits earned and accrued under this Agreement,
and reimbursement under this Agreement for expenses incurred, prior to the date
of such termination;

                  (II) during the twenty-four (24) month period following such
termination, the Employee shall also be entitled to

                           (A) continue to receive the Annual Salary payable in
                  the amounts and at the times provided for in Section 3.1 as if
                  such employment had not otherwise been so terminated;

                                       -6-

<PAGE>   7

                           (B) continue to receive the Annual Bonus or, if
         applicable, Annual Bonuses (if any) payable at the times provided for
         in Section 3.4 as if such employment had not otherwise been so
         terminated; provided, however, that, for these purposes, and
         notwithstanding Section 3.4, the amount of each Annual Bonus (if any)
         otherwise payable under the foregoing provisions of this clause (B)
         shall be an amount equal to the average of the Annual Bonuses
         (including, but not limited to, Annual Bonuses of $0) actually payable
         under Section 3.4 of this Agreement or Section 3.6 of the 1995
         Agreement, as applicable, for the three fiscal years ending before such
         termination (or if less, the number of fiscal years ending before such
         termination); and

                           (C) continuation of any group life, health and
         automobile- related benefits to which the Employee is otherwise
         entitled hereunder on substantially the same terms and conditions
         (including with respect to the cost, if any, to the Employee), subject
         to generally applicable changes to the level (and cost) of coverage
         that may be made with respect to senior executives generally; provided
         that such continuation shall not be required hereunder to the extent
         that the Employee is entitled (absent any individual waivers or other
         arrangements) to receive during such period the same type of coverage
         from another employer or recipient of the Employee's services;

provided that no amounts shall be payable under this clause (II) if the
Employee's employment is terminated by the Company or by him after the issuance
of a court order that restricts the Employee's ability to work for the Company.

                  Thereafter, the Company shall have no further liability to the
Employee.

                  5.3 CHANGE IN CONTROL. (a) The Company shall make its best
efforts to give the Employee notice of a Change in Control at least thirty (30)
days before the Change in Control is

                                       -7-

<PAGE>   8

consummated; provided that such notice may be given at such time as the Company
becomes aware of the proposed Change in Control within such thirty (30) day
period. If the Employee elects to terminate his employment hereunder effective
upon the consummation of such Change in Control, then such termination shall be
deemed for purposes of this Agreement to be described by Section 5.2 if (i) the
termination occurs at a time at which no Cause exists and (ii) the Employee has
reasonably determined, after a diligent and good-faith review of all relevant,
objective facts and circumstances, that his authority has been adversely
modified or diminished (provided that in no event shall there be deemed to have
occurred such a modification or diminution solely because the business of the
Company becomes part of a larger business, and the Employee's responsibilities
do not extend to the other aspects of such larger business). For these purposes,
"CHANGE IN CONTROL" means: (i) the first purchase of shares pursuant to a tender
offer or exchange for all or 20% or more of the Company's Common Shares of any
class or any securities convertible into such Common Shares; (ii) the receipt by
the Company of a Schedule 13D or other advise indicating that a person (other
than ZS Fund, L.P., Mazel/D&K, Inc., Reuven Dessler and/or any affiliate
thereof) is the "beneficial owner" (as that term is defined in Rule 13d-3 under
the Securities Exchange Act of 1934) of thirty percent (30%) or more of the
Company's Common Shares calculated as provided in paragraph (d) of said Rule
13d-3; (iii) the date of consummation of any consolidation or merger of the
Company in which the Company will not be the continuing or surviving corporation
or pursuant to which shares of capital stock, of any class or any securities
convertible into such capital stock, of the Company would be converted into
cash, securities or other property, other than a merger of the Company in which
holders of common stock of all classes of the Company immediately prior to the
merger would have the same proportion of ownership of common stock of the
surviving corporation immediately after the merger; (iv) the date of
consummation of any sale, lease, exchange or other

                                       -8-

<PAGE>   9

transfer (in one transaction or a series of related transactions) of all or
substantially all the assets of the Company; (v) the adoption of any plan or
proposal for the liquidation (but not a partial liquidation) or dissolution of
the Company; (vi) the date (the "MEASUREMENT DATE") on which the individuals who
at the beginning of a two-consecutive-year period ending on the Measurement
Date, cease, for any reason, to constitute at least a majority of the Board,
unless the election, or the nomination for election by the Company's
shareholders, of each new director during such two-year period was approved by
an affirmative vote of the directors then still in office who were directors at
the beginning of said two-year period.

                  (b) Notwithstanding any other provision of this Agreement, in
the event that any payment or benefits provided by the Company (or any entity
directly or indirectly controlling or controlled by the Company or any of its
subsidiaries, any such entity, an "AFFILIATE") to the Employee under or outside
of the terms of this Agreement would constitute a "parachute payment" within the
meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the
"CODE"), the payments or benefits provided hereunder shall be reduced to the
extent necessary so that no portion thereof shall be subject to the excise tax
imposed by Section 4999 of the Code, but only if, by reason of such reduction,
the Employee's net after tax benefit shall exceed the net after tax benefit if
such reduction were not made. "NET AFTER TAX BENEFIT" for purposes of this
Section 5.3 shall mean the sum of

                           (i) the total amount payable to the Employee under
                  this Agreement, PLUS ----

                           (ii) all other payments and benefits which the
                  Employee receives or is then entitled to receive from the
                  Company and any of its Affiliates that would constitute a
                  "parachute payment" within the meaning of Section 280G of the
                  Code, LESS

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<PAGE>   10

                           (iii) the amount of federal income taxes payable with
         respect to the payments and benefits described in clauses (i) and (ii)
         above calculated at the maximum marginal income tax rate for each year
         in which such payments and benefits shall be paid to the Employee
         (based upon the rate in effect for such year as set forth in the Code
         at the time of the first payment of the foregoing), LESS

                           (iv) the amount of excise taxes imposed with respect
         to the payments and benefits described in clauses (i) and (ii) above by
         Section 4999 of the Code.

                  All calculations under this Section 5.3(b) shall be made by
the Company in consultation with its outside auditors.

                  6.   COVENANT OF THE EMPLOYEE.

                  6.1. COVENANT AGAINST COMPETITION. The Employee acknowledges
that (i) the principal businesses of the Company and its subsidiaries and other
Affiliates are the "WHOLESALE BUSINESS" (as defined below) and the "RETAIL
CLOSEOUT BUSINESS" (as defined below) (such businesses, and any and all other
businesses that, after the effective date hereof and from time to time during
the Term, are engaged in by the Company or its subsidiaries or other Affiliates,
herein being collectively referred to as the "COMPANY BUSINESS"); (ii) the value
of all goodwill resulting from the operation of the Company Business of the
Company and its subsidiaries and other Affiliates should properly belong to the
Company and its subsidiaries and other Affiliates; (iii) upon the termination of
the Employee's employment, the Employee will have no right or interest to such
goodwill; (iv) the covenants and agreements of the Employee in this Section 6
are necessary to preserve the value of such goodwill for the benefit of the
Company and its subsidiaries and other Affiliates; (v) the Employee has had and
will have access to Confidential Company Information (as defined below); (vi)
the Company Business is the same business in which the Employee has and will
participate in

                                      -10-

<PAGE>   11

and for which he has and will have responsibility while at the Company; (vii)
the length of the Restricted Period (as defined below) is necessary and
appropriate to protect the legitimate business interests of the Company because,
among other reasons, the Confidential Company Information he has had and will
have access to will continue to have competitive significance throughout the
Restricted Period; and (vii) the Company would not have entered into this
Agreement but for the covenants and agreements set forth in this Section 6.
Accordingly, the Employee covenants and agrees that:

                  (a) During the period commencing on the Effective Date and
ending on the date twelve (12) months following the expiration of the Term (the
"RESTRICTED PERIOD"), the Employee shall not in the United States of America (1)
engage in the Company Business, whether as part of a division or otherwise, for
the Employee's own account; (2) render any services to any person or entity
(other than the Company or its subsidiaries) engaged in such activities, whether
as part of a division or otherwise; or (3) become interested in any such person
or entity (other than the Company or its subsidiaries) as a partner, officer,
director, shareholder, principal, agent, employee, consultant or in any other
relationship or capacity; provided, however, that notwithstanding the above, the
Employee may own, directly or indirectly, solely as an investment, securities of
any such person or entity which are traded on any national securities exchange
or the National Association of Securities Dealers, Inc. Automated Quotation
System if the Employee (A) is not a controlling person of, or a member of a
group which controls, such person or entity and (B) does not, directly or
indirectly, own four percent (4%) or more of any class of securities of such
person or entity.

                  (b) During and after the Restricted Period, the Employee shall
keep secret and retain in strictest confidence, and shall not disclose, rely on
or otherwise use for his benefit or the benefit of others, except in connection
with the business and affairs of the Company and its

                                      -11-

<PAGE>   12

subsidiaries, all confidential matters relating to the Company Business and to
the Company and its subsidiaries learned by the Employee on or after the
effective date hereof directly or indirectly from the Company and its
subsidiaries, including, without limitation, information with respect to (a)
prospective store locations, (b) sales figures (whether per store or otherwise),
(c) profit or loss figures (whether per store or otherwise), and (d) customers,
clients, suppliers, sources of supply and customer lists (the "CONFIDENTIAL
COMPANY INFORMATION") and shall not disclose the Confidential Company
Information to anyone outside of the Company or its subsidiaries except with the
Company's express written consent and except for Confidential Company
Information which (1) is at the time of receipt or thereafter becomes publicly
known through no wrongful act of the Employee, (2) is received from a third
party not under an obligation to keep such information confidential and without
breach of this Agreement or (3) was previously known by the Employee before
being employed by the Company or the Partnership under this Agreement or the
1995 Agreement.

                  (c) During the Restricted Period, the Employee shall not,
without the Company's prior written consent, directly or indirectly, knowingly
solicit, recruit or encourage to leave the employment of the Company or its
subsidiaries, any employee of the Company or its subsidiaries or hire any
employee who has left the employment of the Company or its subsidiaries after
the effective date of this Agreement within one year of the termination of such
employee's employment with the Company and its subsidiaries.

                  (d) All memoranda, notes, lists, records and other documents
(and all copies thereof) made or compiled by the Employee or made available to
the Employee concerning the Company Business or the Company and its subsidiaries
shall be the Company's property and shall be delivered to the Company at any
time on request, provided such property is then possessed by the

                                      -12-

<PAGE>   13

Employee and can be readily identified as such by him; provided that,
notwithstanding the foregoing, the Employee may retain a copy of his rolodex.

                  (e) For purposes hereof, "WHOLESALE BUSINESS" shall mean any
business involving (i) the wholesale distribution of merchandise acquired
through purchases of (A) overstocks, (B) closeouts, (C) items liquidated by a
manufacturer or by a retail store, (D) merchandise available in connection with
bankruptcies or other distress situations, (E) merchandise at or below regular
price primarily as a result of the production of the merchandise occurring
during periods in which the production facilities otherwise would be idle or
would have underutilized capacity or (F) buybacks made by a manufacturer of a
competitor's or its own merchandise, or (ii) the importing of types or
categories of merchandise with respect to which, at the time the Employee
terminates employment or at any time during the Term, the Company (A) transacts
(or has transacted) wholesale business, or otherwise sells or purchases (or has
sold or purchased) or (B) has committed to sell or purchase; provided that a
business shall be deemed to be a Wholesale Business only if it has Ten Million
Dollars ($10,000,000) or more in sales from activities described from clauses
(i) and (ii) in the aggregate during either of the following periods: (1) the
twelve (12) most recently completed calendar months prior to the Employee's
involvement with such business or (2) the Restricted Period.

                  (f) For purposes hereof, "RETAIL CLOSEOUT BUSINESS" shall mean
any retail business (i) fifty percent (50%) or more of the inventory of which,
in the aggregate, is acquired through purchase of (A) overstocks, (B) closeouts,
(C) items liquidated by a manufacturer or by a retail store, (D) merchandise
available in connection with bankruptcies or other distress situations, (E)
merchandise at below regular price primarily as a result of the production of
the merchandise occurring during periods in which the production facilities
otherwise would be idle or would have underutilized capacity or (F) buybacks
made by a manufacturer of a competitor's or its own

                                      -13-

<PAGE>   14

merchandise, and (ii) which owns or operates a location within a ten (10) mile
radius of any location owned or operated by the Company or its subsidiaries or
other Affiliates; provided that in no event shall the business of operating
discount stores, specialty stores or deep-discount drug store businesses be
considered to be a Retail Closeout Business at any particular time unless (A)
the Company is engaged in such business at such time or (B) the business is part
of an operation which, taking into account such business and the other aspects
of the operation in the aggregate, is a Retail Closeout Business as a result of
purchases of merchandise described in clauses (i) (A) through (i) (F).

                  6.2 RIGHTS AND REMEDIES UPON BREACH. If the Employee breaches,
or threatens to commit a breach of, any of the provisions of Section 6.1 (the
"RESTRICTIVE COVENANTS"), the Company and its subsidiaries shall have the
following rights and remedies (upon compliance with any necessary prerequisites
imposed by law upon the availability of such remedies), each of which rights and
remedies shall be independent of the other and severally enforceable, and all of
which rights and remedies shall be in addition to, and not in lieu of, any other
rights and remedies available to the Company or its subsidiaries under law or in
equity:

                  (a) The right and remedy to have the Restrictive Covenants
specifically enforced (without posting bond) by any court having equity
jurisdiction, including, without limitation, the right to an entry against the
Employee of restraining orders and injunctions (preliminary, mandatory,
temporary and permanent) against violations, threatened or actual, and whether
or not then continuing, of such covenants, it being acknowledged and agreed that
any such breach or threatened breach will cause irreparable injury to the
Company and that money damages will not provide an adequate remedy to the
Company.

                                      -14-

<PAGE>   15

                  (b) The right and remedy to require the Employee to account
for and pay over to the Company and its subsidiaries all compensation, profits,
monies, accruals, increments or other benefits (collectively, "BENEFITS")
derived or received by him as the proximate result - i.e. actual damages - of a
breach of the Restrictive Covenants, and the Employee shall account for and pay
over such Benefits to the Company and, if applicable, its affected subsidiaries.

                  7.       OTHER PROVISIONS.

                  7.1 SEVERABILITY. The Employee acknowledges and agrees that
(i) he has had an opportunity to seek advice of counsel in connection with this
Agreement and (ii) the Restrictive Covenants are reasonable in geographical and
temporal scope and in all other respects. If it is determined that any of the
provisions of this Agreement, including, without limitation, any of the
Restrictive Covenants, or any part thereof, is invalid or unenforceable, the
remainder of the provisions of this Agreement shall not thereby be affected and
shall be given full effect, without regard to the invalid portions.

                  7.2 BLUE-PENCILLING. If any court determines that any of the
covenants contained in this Agreement, including, without limitation, any of the
Restrictive Covenants, or any part thereof, is unenforceable because of the
duration or geographical scope of such provision, then, after such determination
has become final and unappealable, the duration or scope of such provision, as
the case may be, shall be reduced so that such provision becomes enforceable
and, in its reduced form, such provision shall then be enforceable and shall be
enforced.

                  7.3 ENFORCEABILITY; JURISDICTIONS. The Company and the
Employee intend to and hereby confer jurisdiction to enforce the Restrictive
Covenants upon the courts of any jurisdiction within the geographical scope of
the Restrictive Covenants. If the courts of any one or more of such
jurisdictions hold the Restrictive Covenants wholly unenforceable by reason of
breadth of scope or

                                      -15-

<PAGE>   16

otherwise, it is the intention of the Company and the Employee that such
determination not bar or in any way affect the Company's right or the right of
its subsidiaries to the relief provided above in the courts of any other
jurisdiction within the geographical scope of such Restrictive Covenants, as to
breaches of such Restrictive Covenants in such other respective jurisdictions,
such Restrictive Covenants as they relate to each jurisdiction being, for this
purpose, severable, diverse and independent covenants, subject, where
appropriate, to the doctrine of RES JUDICATA.

                  7.4 SET-OFF. The Employee acknowledges and agrees that the
Company may set-off against any or all amounts payable to the Employee hereunder
any or all amounts payable by the Employee to the Company in respect of a breach
by the Employee of any of the provisions of Section 6.

                  7.5 NOTICES. Any notice or other communication required or
permitted hereunder shall be in writing and shall be delivered personally,
telegraphed, telexed, sent by facsimile transmission or sent by certified,
registered or express mail, postage prepaid. Any such notice shall be deemed
given when so delivered personally, telegraphed, telexed or sent by facsimile
transmission or, if mailed, five days after the date of deposit in the United
States mails as follows:

                  (i)      If to the Company, to:

                                    Mazel Stores, Inc.
                                    31000 Aurora Road
                                    Solon, Ohio 44139
                                    Attention: Reuven Dessler

                           with a copy to:

                                    ZS Fund L.P.
                                    120 West 45th Street
                                    Suite 2600
                                    New York, New York 10036
                                    Attention: Robert A. Horne

                                      -16-

<PAGE>   17

                      and

                               Kahn, Kleinman, Yanowitz & Arnson Co., L.P.A.
                               The Tower at Erieview, Suite 2600
                               Cleveland, Ohio 44114-1824
                               Attention: Marc H. Morgenstern

             (ii)     If to the Employee to:

                               Brady J. Churches
                               1677 Taylor Corners Circle
                               Columbus, Ohio 43004

                      with a copy to:

                               James G. Ryan, Esq.
                               Schwartz, Kelm, Warren & Ramirez
                               41 South High Street
                               Columbus, Ohio 43215

Any such person may by notice given in accordance with this Section to the other
parties hereto designate another address or person for receipt by such person of
notices hereunder.

                  7.6      ENTIRE  AGREEMENT.  This  Agreement contains the
entire agreement between the parties with respect to the subject matter hereof
and supersedes all prior agreements, written or oral, with respect thereto.

                  7.7 WAIVERS AND AMENDMENTS. This Agreement may be amended,
superseded, canceled, renewed or extended, and the terms hereof may be waived,
only by a written instrument signed by the parties or, in the case of a waiver,
by the party waiving compliance. No delay on the part of any party in exercising
any right, power or privilege hereunder shall operate as a waiver thereof, nor
shall any waiver on the part of any party of any such right, power or privilege
nor any single or partial exercise of any such right, power or privilege,
preclude any other or further exercise thereof or the exercise of any other such
right, power or privilege.

                                      -17-

<PAGE>   18

         7.8 GOVERNING LAW. This Agreement shall be governed by, and construed
in accordance with, the laws of the State of Ohio without regard to principles
of conflicts of law.

         7.9 ASSIGNMENT. This Agreement, and the Employee's rights and
obligations hereunder, may not be assigned by the Employee; any purported
assignment by the Employee in violation hereof shall be null and void. In the
event of any sale, transfer or other disposition of all or substantially all of
the Company's assets or business, whether by merger, consolidation or otherwise,
the Company may assign this Agreement and its rights hereunder.

         7.10 BINDING EFFECT. This Agreement shall be binding upon and inure to
the benefit of the parties and their respective successors, permitted assigns,
heirs, executors and legal representatives. 7.11 COUNTERPARTS. This Agreement
may be executed by the parties hereto in separate counterparts, each of which
when so executed and delivered shall be an original but all such counterparts
together shall constitute one and the same instrument. Each counterpart may
consist of two copies hereof each signed by one of the parties hereto.

         7.12 HEADINGS. The headings in this Agreement are for reference only
and shall not affect the interpretation of this Agreement.

         7.13 CHANGE OF LOCATION. During the Term, the Company's Retail Division
shall be headquartered in the Columbus Metropolitan Area, Ohio. In the event
that the Board shall explicitly, in writing, request or demand to the Employee
that such headquarters be relocated outside of the Columbus Metropolitan Area,
the Employee may on thirty (30) days prior written notice to the Company elect
to terminate his employment hereunder in the event that the Company does not
rescind its request or demand, in which case the Employee's employment hereunder
shall be deemed

                                      -18-

<PAGE>   19

to have been terminated by the Company pursuant to Section 5.2 and he shall be
entitled to receive the amounts set forth in such Section, and Section 6 shall
no longer apply.

         7.14 EXPENSES. In the event that the Employee commences any legal
proceeding against the Company to enforce the Employee's rights under this
Agreement and the Employee prevails in such legal proceeding, the Company shall
reimburse the Employee for the reasonable fees and disbursements of the
Employee's attorneys incurred with respect to that portion of the legal
proceeding with respect to which the Employee is the prevailing party.

                  7.15 INDEMNIFICATION. (a) The Employee represents and warrants
to the Company that: (i) the Employee's execution, delivery and performance of
this Agreement does not and will not violate, conflict with or constitute a
default (with notice or lapse of time or both) under any written agreement or
instrument to which the Employee is a party and (ii) prior to the effective date
of this Agreement, the Employee has disclosed to the Board all material facts
regarding the circumstances concerning the Employee's previous employment with
Consolidated.

                  (b) Subject to the provisions of this Section 7.15, to the
fullest extent permitted by law, the Company shall indemnify the Employee if he
is a party or is threatened to be made a party to any legal proceeding (other
than a legal proceeding against the Employee by the Company) (a "PROCEEDING"),
threatened or pending, whether civil, criminal, administrative or investigative,
by reason of his service to the Company as a director, officer, trustee,
employee or agent, or service at the written request of the Company as a
director, officer, trustee, employee or agent of another corporation,
partnership, joint venture, trust or enterprise, against the Employee's
reasonable attorneys' fees and disbursements, reasonable out-of-pocket travel
expenses to and from the forum of the Proceeding and judgments, fines and
amounts paid in settlement in connection with the Proceeding. Such attorneys'
fees and expenses shall be paid by the Company as they are incurred

                                      -19-

<PAGE>   20

upon receipt, in each case, of an undertaking by the Employee to repay such
amounts if it is ultimately determined, as provided below, that the Employee is
not entitled to indemnification hereunder. The Employee shall not settle any
Proceeding without the prior written consent of the Company unless, as a
condition thereof, the Company receives a full and unconditional release of all
liability in respect of the Proceeding. The Employee shall provide the Company
with prompt written notice of any Proceeding in respect of which he is entitled
to indemnification hereunder, provided that the Employee shall not lose his
rights to indemnification hereunder for failure to give such notice unless the
Company is prejudiced by such failure.

                  (c) The indemnification provided for in Section 7.15(b) (i)
shall apply in all cases except where the Employee did not act or failed to act
in good faith and in a manner he reasonably believed to be in or not opposed to
the best interests of the Company or where the Employee's action or failure to
act constituted gross negligence or willful misconduct, or, with respect to any
criminal action or proceeding, where he did not have reasonable cause to believe
his conduct was lawful (collectively, the "STANDARD OF CARE") and (ii) may be
denied by the Company only if a court of competent jurisdiction determines that
the Employee did not meet the Standard of Care.

                  (d) The indemnification provided by this Section shall survive
termination of the Employee's employment with the Company.

                  (e) The provisions of this Section 7.15 shall not be deemed to
be exclusive of any other rights to which the Employee may be entitled under
applicable law or any other written agreement between the Company and the
Employee.

                  7.16     WITHHOLDING.  The Company shall be entitled to
withhold from any payments or deemed payments any amount of withholding required
by law.
                                      -20-

<PAGE>   21

                  7.17     RELEASE.  The  Employee and the Company will execute
a release (to be agreed upon by the Employee and the Company) at the termination
of the Employee's employment.

                                   * * * * *

                                      -21-

<PAGE>   22

                  IN WITNESS WHEREOF, the parties hereto have signed their names
as of the day and year first above written.

                                            MAZEL STORES, INC.

                                            By:
                                               -----------------------------
                                                Name: Reuven Dessler
                                                Title: Chief Executive Officer

                                            ----------------------------------
                                            BRADY J. CHURCHES

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