Document:

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                                                                   Exhibit 10(b)

                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT is entered into as of the 26th day of June,
2000, by and among CONSOLIDATED STORES CORPORATION, a Delaware corporation
("CSC"), CONSOLIDATED STORES CORPORATION, an Ohio corporation ("Consolidated")
(CSC and Consolidated are hereinafter jointly referred to as "Employer"), and
Albert J. Bell, an individual residing in Ohio ("Executive").

                              W I T N E S S E T H:

         WHEREAS, Employer and Executive desire to enter into this Employment
Agreement to insure to Employer and Employer's direct and indirect subsidiaries
the services of Executive and to set forth the rights and duties of the parties
thereto; and

         WHEREAS, Executive is a director of each of CSC and Consolidated; and

         WHEREAS, the Board of Directors of CSC and Consolidated have elected
Executive as the Vice Chairman of the Board of Directors and Chief
Administrative Officer of each of CSC and Consolidated.

         NOW, THEREFORE, in consideration of the mutual promises herein
contained, the parties agree as follows:

         1. EMPLOYMENT; DUTIES.

                  (a) EMPLOYMENT. Employer employs Executive as the Vice
Chairman of the Board of Directors and Chief Administrative Officer of each of
CSC and Consolidated, with such duties as may from time to time be prescribed by
the Chief Executive Officer of Employer and Executive hereby accepts such
employment, on the terms and conditions hereinafter set forth.

                  (b) DUTIES. During the term of this Employment Agreement,
Executive shall devote his entire business time and attention to his employment
and perform diligently such duties as are customarily performed by the Vice
Chairman of the Board of Directors and Chief

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Administrative Officer of a company the size and structure of CSC and its
subsidiaries, together with, as of the date hereof, such other duties as may be
reasonably requested from time to time by the Chief Executive Officer of CSC or
Consolidated, which duties shall be consistent with his position as set forth
above and in Paragraph 2 of this Employment Agreement. Executive shall cooperate
and work with all committees formed by the Board of Directors of CSC or
Consolidated. So long as Executive shall serve as Vice Chairman of the Board of
Directors and Chief Administrative Officer, Executive shall report only to the
Chief Executive Officer of each of CSC and Consolidated and shall not be subject
to the authority, direction or discretion of any officer, whether in a position
now existing or hereafter created or appointed.

         Any material adverse modification or diminution of Executive's duties
or diminution in Executive's authority, title or office shall be considered to
be a Change in Control of Employer and shall entitle Executive, in addition to
any other rights he may have, to the rights and remedies provided in Paragraph
7(d) hereof; PROVIDED, HOWEVER, that Executive shall notify Employer of any
alleged such modification or diminution, specifying the same, and Employer shall
have a period of fifteen (15) days after such notice to cure such alleged
modification or diminution before Executive shall be entitled to exercise any
such rights and remedies. The right of Employer to cure any modification or
diminution in Executive's authority, title or office set forth in the
immediately preceding sentence shall be applicable only in the event that a
"Change in Control" shall have occurred solely by reason of such modification or
diminution of duties or authority and shall not be applicable following the
occurrence of any change in Control as defined in Paragraph 7(f) below.

                  (c) FULL TIME AND ATTENTION. Except as expressly permitted
herein, Executive shall not, without the prior written consent of Employer,
directly or indirectly during the term of this Employment Agreement, render
services of a business, professional or commercial nature to any other person or
firm, whether for compensation or otherwise. So long as it does not interfere

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with his full time employment hereunder, Executive may (i) attend to outside
investments and serve as a director, trustee or officer of or otherwise
participate in educational, welfare, social, religious and civic organizations
and (ii) serve as a director of not more than two (2) public corporations that
are not engaged in the Company Business (as defined in Paragraph 9(a) hereof).

                  (d) BUSINESS DECISIONS. Executive shall have no liability to
Employer for any act or omission undertaken during the term of this Employment
Agreement in his good faith business judgment in furtherance of his duties as
prescribed in or under this Employment Agreement.

         2. TERM AND POSITIONS.

                  (a) TERM. Subject to the provisions for termination as
hereinafter provided, the term of this Employment Agreement shall begin on June
26, 2000 and shall continue thereafter until Executive's employment is
terminated as provided in Paragraph 7. This Employment Agreement supercedes and
replaces the May 19, 1998 Senior Executive Severance Agreement between Employer
and Executive.

                  (b) POSITIONS. Executive shall, without any compensation in
addition to that which is specifically provided in this Employment Agreement,
serve as an officer of CSC and of Consolidated and in such substitute or further
offices or positions with Employer or any subsidiary of Employer as shall from
time to time be reasonably requested by the Chief Executive Officer. Each office
and position with Employer or any subsidiary of Employer in which Executive may
serve or to which he may be appointed shall be consistent in title and duties
with Executive's position as Vice Chairman and Chief Administrative Officer of
Employer. For service as a director or officer of CSC, Consolidated or any
subsidiary of either of them, which service shall in each instance be deemed to
be at the request of CSC and its Board of Directors, Executive shall be entitled
to the protection of the applicable indemnification provisions of the charter
and by-laws of CSC, Consolidated and any such subsidiary and

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Employer agrees to indemnify and hold harmless Executive from and against any
claims, liabilities, damages or expenses incurred by Executive in or arising out
of the status, capacities and activities as an officer or director of CSC,
Consolidated and any subsidiary of either to the maximum extent permitted by
law. For purposes of this Employment Agreement, all references herein to
subsidiaries of CSC and/or Consolidated shall be deemed to include references to
subsidiaries now or hereafter existing.

         3. COMPENSATION.

                  (a) SALARY. For all services he may render to CSC and
Consolidated (and any subsidiary of either of them) during the term of this
Employment Agreement, as determined by the Compensation Committee of the CSC
Board of Directors, Employer shall pay to Executive, commencing on June 26,
2000, a minimum salary at the rate (the "Salary Rate") of Six Hundred
Twenty-five Thousand Dollars ($625,000.00) per annum, payable in those
installments customarily used in payment of salaries to Employer's executives
(but in no event less frequently than monthly). At least annually, the
Compensation Committee of the CSC Board of Directors shall review Executive's
performance and determine whether an increase in the Executive's Salary Rate is
merited.

                  (b) BONUS. In addition to the salary compensation as above
stated, Employer shall pay to Executive bonus compensation during the term of
this Employment Agreement in amounts to be determined and paid as follows:

                           (i)      Beginning January 30, 2000 for each fiscal
                                    year of Employer completed during the term
                                    of this Employment Agreement, an amount
                                    equal to the Salary Rate at the end of such
                                    fiscal year multiplied by the Bonus Payout
                                    percentage as determined by the Bonus
                                    Program set each fiscal year by the
                                    Compensation Committee of the CSC Board of
                                    Directors. The Bonus Program is

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                                    based upon the achievement of Employer's
                                    annual financial plan. The Target Bonus for
                                    Executive is 100% of base salary and the
                                    Stretch Bonus for Executive is 200% of base
                                    salary, both of which are defined in the
                                    Bonus Program and are subject to adjustment
                                    by the Board of Directors of CSC ; provided
                                    however, Executive's Target Bonus shall
                                    never fall below 100% of base salary and
                                    Executive's Stretch Bonus shall never fall
                                    below 200% of base salary.

                           (ii)     Any bonus paid for a fiscal year under
                                    Paragraph 3(b)(i) shall be paid within
                                    forty-five (45) days after Employer's
                                    independent auditor has delivered its
                                    opinion with respect to the financial
                                    statements of Employer for such fiscal year
                                    (whether or not Executive is then in the
                                    employ of Employer). Employer shall use all
                                    reasonable efforts to cause such auditor to
                                    deliver such opinion within forty-five (45)
                                    days after the close of such fiscal year.

                           (iii)    For purposes of this Employment Agreement,
                                    the term "fiscal year" shall mean with
                                    respect to any year, the period commencing
                                    on the Sunday next following the Saturday
                                    closest to January 31 in a calendar year and
                                    ending in the next following calendar year
                                    on the Saturday closest to January 31.

         4. DISABILITY IN THE EVENT OF DEATH OR PERMANENT DISABILITY. In the
event of a termination of employment as a consequence of Employee's death or
"permanent disability" (as defined below) during the term of this Employment
Agreement:

                  (a) Executive or his estate, as the case may be, shall be
entitled to receive a prorata portion of the bonus applicable to the fiscal year
in which such death or permanent

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disability occurs, as such bonus is determined under Paragraph 3(b) of this
Employment Agreement. Such prorata portion shall be determined by multiplying a
fraction, the numerator of which shall be the number of days in the applicable
fiscal year elapsed prior to the date of death or permanent disability, as the
case may be, and the denominator of which shall be 365, by the amount of bonus
that would have been payable, if any, pursuant to such Paragraph 3(b), if
Executive had remained employed under this Employment Agreement for the entire
applicable fiscal year. The bonus shall be paid when and as provided in
Paragraph 3(b)(ii) of this Employment Agreement.

                  (b) Upon permanent disability Executive shall be entitled to
six (6) months of short term disability at his then current Salary Rate. At the
end of the six month period Executive shall be entitled to long term disability
at a minimum rate of twenty five thousand dollars ($25,000.00) per month, tax
free, until age sixty-five (65).

                  (c) Except as otherwise provided in Paragraphs 5, 6 and 8 of
this Employment Agreement, Executive shall be entitled to no further
compensation or other benefits under this Employment Agreement, except as to
that portion of any unpaid salary and other benefits accrued and earned by him
hereunder up to and including the date of such death or permanent disability, as
the case may be.

                  (d) For the purposes of this Employment Agreement, except as
modified in paragraph 4(b) above, Executive's "permanent disability" occurrence
and benefits shall be determined in the same manner as are other such
occurrences and benefits under Employer's Disability Policy in effect at the
date of the occurrence.

         5. TRANSPORTATION. During the term of this Employment Agreement,
Employer shall provide Executive with a current luxury model automobile
purchased or leased by Employer, in accordance with applicable policies of
Employer. Employer shall pay all maintenance and repair expenses with respect to
the automobile, procure and maintain in force at

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Employer's expense collision, comprehensive, and liability insurance coverage
with respect to the automobile, and pay operating expenses with respect to the
automobile to the extent such operating expenses are incurred in the conduct of
Employer's business. Commencing June 26, 2000, Executive shall be entitled to a
similar vehicle every three years or 36,000 miles, whichever occurs first.

         6. LIFE INSURANCE AND OTHER BENEFITS.

                  (a) VACATION AND SICK LEAVE. Executive shall be entitled to
such periods of vacation and sick leave allowance each year which shall not be
less than as provided under Employer's Vacation and Sick Leave Policy for
executive officers.
                  (b) GROUP PLANS, ETC. Executive shall be entitled to
participate in any group life, hospitalization, or disability insurance plan,
health program, or other executive benefit plan (other than bonus compensation
or performance plans to the extent that such plans, in the case of Executive,
are in lieu of the bonus plan set forth in Paragraph 3(b) above) that is
generally available to senior executive officers, as distinguished from general
management, of Employer. Executive's participation in and benefits under any
such plan shall be on the terms and subject to the conditions specified in the
governing document of the particular plan. Up to the applicable maximum,
Executive shall be entitled to 100% reimbursement of his medical and dental
expenses incurred during the term of this Employment Agreement.

         7. TERMINATION AND FURTHER COMPENSATION.

                  (a) The employment of Executive under this Employment
Agreement and the term hereof may be terminated:

                           (i)      by Employer or Executive at any time upon
                                    thirty (30) days notice to the other party
                                    of such termination, or

                           (ii)     by Employer on death or permanent disability
                                    of Executive, or

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                           (iii)    By Employer for cause at any time. For
                                    purposes hereof, the term "cause" shall
                                    mean:

                                    (A)      Executive's conviction of fraud or
                                             a felony or any crime involving
                                             moral turpitude or Executive's
                                             commission of acts of embezzlement
                                             or theft in connection with his
                                             duties or in the course of his
                                             employment with Employer or any
                                             subsidiary;

                                    (B)      Executive's willful breach of any
                                             material provision of this
                                             Employment Agreement which failure
                                             has not been cured in all
                                             substantial respects within ten
                                             (10) days after Employer gives
                                             notice thereof to Executive; or

                                    (C)      Executive's willful, wrongful
                                             engagement in any Competitive
                                             Activity (as that term is
                                             hereinafter defined).

         Any termination of Executive for "cause" shall not be effective until
all the following shall have taken place:

                           (i)      The Secretary of CSC pursuant to resolution
                                    of the Board of Directors of CSC, shall have
                                    given written notice to Executive that, in
                                    the opinion of the Board of Directors,
                                    Executive may be terminated for cause,
                                    specifying the details;

                           (ii)     Executive shall have been given a reasonable
                                    opportunity to appear before the Board of
                                    Directors prior to the determination of the
                                    Board evidenced by such resolution;

                           (iii)    With respect to any matters other than
                                    Executive's conviction of fraud or a felony
                                    or a crime involving moral turpitude,
                                    Executive shall neither have ceased to
                                    engage in the activity giving rise to the

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                                    proposed determination for cause within
                                    thirty (30) days after his receipt of such
                                    notice nor diligently taken all reasonable
                                    steps to that end during such thirty (30)
                                    day period and thereafter;

                           (iv)     After complying with the procedures set
                                    forth in subparagraphs (i) through (iii)
                                    above, Executive shall have been delivered a
                                    certified copy of a resolution of the Board
                                    of Directors of CSC adopted by the
                                    affirmative vote of not less than
                                    three-fourths (3/4) of the entire membership
                                    of the Board of Directors finding that
                                    Executive was guilty of the conduct giving
                                    rise to the termination for cause.

                  Any termination by reason of the foregoing shall not be in
limitation of any other right or remedy Employer may have under this Employment
Agreement, at law, in equity or otherwise. On any termination of this Employment
Agreement, Executive shall be deemed to have resigned from all offices and
directorships held by Executive in Employer and any subsidiaries of CSC.

                  The term "Competitive Activity" shall mean Executive's
participation, without the written consent of the Board of Directors of CSC, in
the management of any business operation of any enterprise if such operation (a
"Competitive Operation") engages in substantial and direct competition with
Employer or any subsidiary. For purposes of this Employment Agreement, a
business enterprise shall be considered in substantial and direct competition
with Employer or any subsidiary, if such business operation's sales, related to
any activity then engaged in by Employer, amount to ten percent (10%) or more of
such business operation's total sales. At the date hereof, Employer is engaged
in the sale of closeout merchandise, toy merchandise and furniture. "Competitive
Activity" shall not include (i) the mere ownership of securities in any publicly
traded enterprise and the exercise of rights appurtenant thereto or (ii)
participation in

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management of any publicly traded enterprise or business operation thereof other
than in connection with the Competitive Operation of such enterprise.

                  (b) In the event of termination for any of the reasons set
forth in subparagraph (a)(iii) of this Paragraph 7, except as otherwise provided
in Paragraph 8 of this Employment Agreement, Executive shall be entitled to no
further compensation or other benefits under this Employment Agreement (other
than as provided by law), except as to that portion of any unpaid salary and
other benefits accrued and earned by him hereunder up to and including the
effective date of such termination, and Executive shall not be entitled to
receive any bonus determined under Paragraph 3 of this Employment Agreement or
otherwise, except for and in respect of completed fiscal years for which
Executive has not then been paid.

                  (c) In the event of the termination of Executive's employment
by Employer pursuant to subparagraph (a)(i) above, Executive shall be entitled
to severance compensation as follows: (x) the continuation of his compensation
for a period of 2 years, including bonus compensation (as provided below), and
(y) all other benefits and perquisites to which he is entitled hereunder for a
period of 2 years following the date of such termination of employment, except
that (i) the benefits and perquisites referred to in clause (y) shall be sooner
reduced and/or terminated (other than as provided by law) when and to the extent
that the Executive is entitled to receive the same from another employer during
such period (but no obligation of Executive to attempt to mitigate damages under
this subparagraph (c) shall be implied) and (ii) any bonus compensation to be
paid to Executive in respect of such period shall be limited solely to the
prorata portion thereof earned in the fiscal year of Employer (determined in the
manner provided in Paragraph 3) in which such termination occurs, except for and
in respect of completed fiscal years for which Executive has not then been paid.
In addition should Executive's employment be terminated by Employer pursuant to
subparagraph (a)(i) above, Executive's stock option grant dated June 26, 2000,
will immediately fully vest to the extent not already vested.

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                  (d) If there is a Change in Control (as defined in Section
7(f) hereof) and Executive's employment is thereupon terminated or terminated
within twenty four (24) months after the effective date thereof, Executive shall
be entitled to the termination benefits set forth in Section 7(e) hereof. For
purposes of this Employment Agreement, Executive's employment shall be deemed to
have been terminated only if Employer terminates such employment other than for
cause (as defined in Section 7(a)(iii) hereof) or if a Constructive Termination
occurs. "Constructive Termination" shall mean a resignation by Executive because
of any material adverse change or material diminution in Executive's then
current reporting relationships, job description, duties, responsibilities,
compensation, perquisites, office or location of employment (as reasonably
determined by Executive in his good faith discretion).

                  (e) The benefits payable to Executive pursuant to Section 7(d)
hereof are as follows:

                           (i)      Consolidated shall pay to Executive a lump
                                    sum cash payment, net of any applicable
                                    withholding taxes in an amount equal to two
                                    times the annual salary paid or payable to
                                    Executive immediately prior to the effective
                                    date of such Change in Control (the "Lump
                                    Sum Payment"); provided, that if there are
                                    fewer than twenty four (24) months remaining
                                    from the date of Executive's termination to
                                    Executive's normal retirement date at age
                                    65, Consolidated shall instead pay Executive
                                    the amount obtained by multiplying the Lump
                                    Sum Payment by a fraction, the numerator of
                                    which is the number of months so remaining
                                    and the denominator of which is 24. The
                                    applicable amount shall be paid on the later
                                    of (x) the next business day after the day
                                    Executive's employment is terminated,

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                                    or (y) the next business day after the
                                    effective date of such Change in Control.

                           (ii)     In addition to the payment described in
                                    Subsection 7(e)(i) above, Consolidated shall
                                    pay to Executive a lump sum cash payment,
                                    net of any applicable withholding taxes, in
                                    an amount equal to two times the Executive's
                                    then current annual Stretch Bonus, as
                                    defined in the Bonus Program described in
                                    Subsection 3(b)(i) above (the "Lump Sum
                                    Bonus Payment"); provided, that (A) in the
                                    event the Executive's then current Stretch
                                    Bonus is undefined or is not subject to a
                                    maximum payout, the Executive's annual
                                    Stretch Bonus shall be deemed to be 200% of
                                    the Executive's then current base salary and
                                    (B) if there are fewer than twenty four (24)
                                    months remaining from the date of
                                    Executive's termination to Executive's
                                    normal retirement date at age 65,
                                    Consolidated shall instead pay Executive the
                                    amount obtained by multiplying the Lump Sum
                                    Bonus Payment by a fraction, the numerator
                                    of which is the number of months so
                                    remaining and the denominator of which is
                                    24. Executive shall receive the Lump Sum
                                    Bonus Payment at the same time Executive
                                    receives the Lump Sum Payment described in
                                    Subsection 7(e)(i) above.

                           (iii)    For a period of two years, Executive (and
                                    his family, if their participation is
                                    permitted under the terms of the subject
                                    plan) shall be entitled to participate in
                                    any group life, hospitalization, or
                                    disability insurance plan, health program,
                                    or other executive benefit plan (other than
                                    bonus compensation or performance plans

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                                    to the extent that such plans, in the case
                                    of Executive, are in lieu of the bonus plan
                                    set forth in Subsection 7(e)(ii) above) that
                                    is generally available to similarly titled
                                    executive officers of Consolidated;
                                    provided, that Executive's participation in
                                    the plans referred to in this Subsection
                                    7(e)(iii) shall be terminated (other than as
                                    provided by law) when and to the extent that
                                    Executive is entitled to receive the same
                                    from another employer during such period.
                                    Executive's participation in and benefits
                                    under any such plan shall be on the terms
                                    and subject to the conditions specified in
                                    the governing document of the particular
                                    plan, including, but not limited to,
                                    reimbursement of 100% of all medical and
                                    dental expenses incurred during the period
                                    of participation in the plans referred to
                                    above.

                           (iv)     If all or any portion of the amount payable
                                    to Executive under this Employment
                                    Agreement, either alone or together with
                                    other amounts that Executive is entitled to
                                    receive in connection with a Change in
                                    Control, constitutes "excess parachute
                                    payments," within the meaning of Section
                                    280G of the Internal Revenue Code of 1986,
                                    as amended (the "Code"), or successor
                                    provision, that are subject to the excise
                                    tax imposed by Section 4999 of the Code (or
                                    any similar tax or assessment), the amounts
                                    payable hereunder shall be increased to the
                                    extent necessary to place Executive in the
                                    same after-tax position as Executive would
                                    have been in had no such excise tax or
                                    assessment been imposed on any such payment
                                    paid or payable to Executive under this
                                    Employment Agreement or

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                                    any other payment that Executive may receive
                                    as a result of such Change in Control. The
                                    determination of the amount of any such tax
                                    or assessment and the resulting amount of
                                    incremental payment required hereby in
                                    connection therewith shall be made by the
                                    independent accounting firm employed by
                                    Consolidated immediately prior to the
                                    applicable Change in Control, within thirty
                                    (30) calendar days after the payment of the
                                    amount payable pursuant to Subsections
                                    (e)(i), (e)(ii) and (e)(iii) hereof, and
                                    said incremental payment shall be made
                                    within five (5) business days after said
                                    determination has been made.

                           (v)      If, after the date upon which any payment
                                    required under this Employment Agreement has
                                    been made, it is determined (pursuant to
                                    final judgment of a court of competent
                                    jurisdiction, or an agreed upon tax
                                    assessment) that the amount of excise or
                                    other similar taxes or assessments payable
                                    by Executive is greater than the amount
                                    initially so determined, then Consolidated
                                    shall pay Executive an amount equal to the
                                    sum of (i) such additional excise or other
                                    similar taxes, plus (ii) any interest, fines
                                    and penalties resulting from such
                                    underpayment, plus (iii) an amount necessary
                                    to reimburse Executive for any income,
                                    excise or other tax or assessment payable by
                                    Executive with respect to the amounts
                                    specified in (i) and (ii) above, and the
                                    reimbursement provided by this clause (iii).
                                    Payment thereof shall be made within five
                                    (5) business days after the date upon which
                                    such subsequent determination is made.

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                           (vi)     In addition to the benefits described above,
                                    Executive shall be entitled to all rights
                                    derived under the Consolidated Stores
                                    Corporation Executive Stock Option and Stock
                                    Appreciation Rights Plan in the event of a
                                    Change in Effective Control (as defined in
                                    that plan) and all rights derived under the
                                    Consolidated Stores Corporation 1996
                                    Performance Incentive Plan in the event of a
                                    Change in Control (as defined in that plan).

                  (f) As used herein, "Change in Control" means any of the
following events: (i) any person or group (as defined for purposes of Section
13(d) of the Securities Exchange Act of 1934) becomes the beneficial owner of,
or has the right to acquire (by contract, option, warrant, conversion of
convertible securities or otherwise), 20% or more of the outstanding equity
securities of CSC entitled to vote for the election of directors; (ii) a
majority of the Board of Directors of CSC is replaced within any period of two
years or less by directors not nominated and approved by a majority of the
directors of CSC in office at the beginning of such period (or their successors
so nominated and approved), or a majority of the Board of Directors of CSC at
any date consists of persons not so nominated and approved; (iii) the
stockholders of CSC approve an agreement to reorganize, merge or consolidate
with another corporation (other than Consolidated or an affiliate); or (iv) the
stockholders of CSC adopt a plan or approve an agreement to sell or otherwise
dispose of all or substantially all of CSC's assets (including without
limitation, a plan of liquidation or dissolution), in a single transaction or
series of related transactions. The effective date of any such Change in Control
shall be the date upon which the last event occurs or last action taken such
that the definition of such Change in Control (as set forth above) has been met.
For purposes of this Employment Agreement, the term "affiliate" shall mean: (i)
any person or entity qualified as part of an affiliated group which includes
Consolidated and CSC pursuant to Section 1504 of the Code; or (ii) any person or
entity

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qualified as part of a parent-subsidiary group of trades and businesses under
common control within the meaning of Treasury Regulation Section 1.414(c)(2)(b).
Determination of affiliate shall be tested as of the date immediately prior to
any event constituting a Change in Control. The other provisions of this
Paragraph 7(f) notwithstanding, the term "Change in Control" shall not mean any
transaction, merger, consolidation, or reorganization in which CSC exchanges or
offers to exchange newly issued or treasury shares in an amount less than 50% of
the then outstanding equity securities of CSC entitled to vote for the election
of directors, for 51% or more of the outstanding equity securities entitled to
vote for the election of at least the majority of the directors of a corporation
other than Employer or an affiliate thereof (the "Acquired Corporation"), or for
all or substantially all of the assets of the Acquired Corporation.

                  (g) Executive shall provide Consolidated with at least forty
five (45) days notice of any election by Executive to terminate his employment,
which shall set forth in detail the grounds upon which any Constructive
Termination of Executive's employment is based, and shall not be entitled to the
benefits available hereunder in connection therewith unless such notice is
timely given.

                  (h) If Executive hires legal counsel with respect to any
alleged failure by Consolidated or CSC to comply with any of the terms of this
Employment Agreement, or institutes any negotiation or institutes or responds to
any legal action to assert or defend the validity of or to enforce Executive's
rights under, or to recover damages for breach of, this Employment Agreement,
Consolidated shall pay Executive's actual expenses for attorneys' fees and
disbursements, together with such additional payments, if any, as may be
necessary so that the net after-tax payments so made to Executive equal such
fees and disbursements; provided, that Executive shall be responsible for his
own fees and expenses with respect to any lawsuit between Executive and Employer
to enforce rights or obligations under this Employment Agreement in which
Employer is the prevailing party. The fees and expenses incurred by

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Executive in instituting or responding to any such negotiation or legal action
shall be paid by Consolidated as they are incurred, in advance of the final
disposition of the action or proceeding, upon receipt of an undertaking by
Executive to repay such amounts if Employer is ultimately determined to be the
prevailing party.

                  (i) If any amount due Executive hereunder is not paid when
due, then Consolidated shall pay interest on said amount at an annual rate equal
to the base lending rate of National City Bank, Cleveland, Ohio, or successor,
as in effect from time to time, for the period between the date on which such
payment is due and the date said amount is paid.

                  (j) Consolidated's obligation to pay Executive the
compensation and to make the arrangements required hereunder shall be absolute
and unconditional and shall not be affected by any circumstance, including,
without limitation, any setoff, counterclaim, recoupment, defense or other right
that Consolidated may have against Executive or otherwise. All amounts payable
by Consolidated hereunder shall be paid without notice or demand. Subject to the
proviso in Section 7(h) above, each and every payment made hereunder by
Consolidated shall be final and Consolidated shall not seek to recover all or
any part of such payment from Executive or from whosoever may be entitled
thereto, for any reason whatsoever. Executive shall not be obligated to seek
other employment or compensation or insurance in mitigation of any amount
payable or arrangement made under any provision of this Employment Agreement.

                  (k) From and after any termination of Executive's employment,
Executive shall retain in confidence and not use for his own benefit or on
behalf of any other person or entity any confidential information known to him
concerning CSC, Consolidated, their respective subsidiaries or their respective
businesses so long as such information is not publicly disclosed by someone
other than Executive.

                  (l) In partial consideration of the benefits granted to
Executive herein, Executive agrees that during the six-month period immediately
following Executive's

                                       17
<PAGE>   18

termination, if Executive shall have received benefits under Section 7(e) above,
Executive shall not engage in any Competitive Activity, as defined in Section
7(a).

                  (m) Any provision in this Employment Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective only to the extent of such prohibition or unenforceability
without invalidating or affecting the remaining provision hereof, and any such
prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.

                  (n) Except as specifically set forth herein, this Employment
Agreement shall not be deemed to negate, supersede or alter any other agreement
or arrangement between Executive and Consolidated or CSC or any other rights to
which Executive may be entitled, and shall be and remain in effect in addition
to any such other agreement or rights, whether now existing or later created.

         8. EXPENSES. Employer shall reimburse Executive during the term of this
Employment Agreement for travel, entertainment and other expenses reasonably
incurred by Executive in the promotion of Employer's business. Executive shall
furnish such documentation with respect to reimbursement to be paid under this
Paragraph 8 as Employer shall reasonably request.

         9. COVENANTS OF EXECUTIVE.

                  (a) COVENANT AGAINST COMPETITION. Executive acknowledges that
at the date hereof (i) the principal businesses of Employer include the
operation of its "Odd Lots", "Big Lots", "MacFrugal's" and "Pic N' Save"
discount general merchandise consumer goods retail outlets, the inventories of
which are acquired primarily through special purchase situations such as
overstocks, closeouts, liquidations, bankruptcies, wholesale distribution of
overstock, distress, liquidation and other volume inventories, the operation of
its K-B Toy, K-B Toys Works, and K-B Toy Liquidator toy stores, the operation of
its Big Lots Furniture and Odd Lots Furniture

                                       18
<PAGE>   19

stores (the "Company Business"); (ii) Employer is one of the limited number of
persons who has developed such business; (iii) the Company Business is national
in scope; (iv) Executive's work for Employer will give him access to the
confidential affairs of Employer; and (v) the agreements and covenants of
Executive contained in this Paragraph 9 are essential to the business and
goodwill of Employer. Accordingly, Executive covenants and agrees that:

                           (A)      During the term of Executive's employment
                                    with Employer and for a period of two (2)
                                    years (the "Restricted Period") following
                                    either the voluntary termination of such
                                    employment by Executive or the termination
                                    of such employment for "cause" (as such
                                    terms is defined in Subsection 7(a)(iii)
                                    above, Executive shall not in any location
                                    where Employer's retail stores are located
                                    throughout the United States of America,
                                    directly or indirectly, (1) engage in the
                                    Company Business for Executive's own account
                                    (other than pursuant to this Employment
                                    Agreement), (2) render any services to any
                                    person engaged in such activities (other
                                    than Employer), or (3) or engage in any
                                    Competitive Activity (as defined above),
                                    PROVIDED, HOWEVER, that in the event of a
                                    Change in Control the Restricted Period
                                    shall be for a period of six (6) months.

                           (B)      During the Restricted Period, Executive
                                    shall keep secret and retain in strictest
                                    confidence, and shall not use for his
                                    benefit or the benefit of others, all
                                    confidential matters relating to the Company
                                    Business hereafter learned by

                                       19
<PAGE>   20

                                    Executive, and shall not disclose them to
                                    anyone except with Employer's express
                                    written consent and except for information
                                    which (i) is at the time of receipt or
                                    thereafter becomes publicly known through no
                                    wrongful act of Executive, or (ii) is
                                    received from a third party not under an
                                    obligation to keep such information
                                    confidential and without breach of this
                                    Employment Agreement.

                           (C)      So long as there has not occurred a Change
                                    in Control, Executive shall not, during the
                                    Restricted Period, without Employer's prior
                                    written consent, directly or indirectly,
                                    solicit or encourage to leave the employment
                                    of Employer or any of its subsidiaries, any
                                    executive of Employer or any of its
                                    subsidiaries.

                           (D)      All memoranda, notes, lists, records and
                                    other documents (and all copies thereof)
                                    made or compiled by Executive or made
                                    available to Executive concerning the
                                    Company Business shall be Employer's
                                    property and shall be delivered to Employer
                                    at any time on request.

                  (b) RIGHTS AND REMEDIES UPON BREACH. If Executive breaches any
of the provisions of Paragraph 9(a) (the "Restrictive Covenants"), or a breach
thereof is imminent, Employer shall have the following rights and 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 Employer under law or
in equity:

                                       20
<PAGE>   21

                           (i)      The right and remedy to have the Restrictive
                                    Covenants specifically enforced by any court
                                    having equity jurisdiction, including,
                                    without limitation, the right to an entry
                                    against Executive of restraining orders and
                                    injunctions (preliminary, temporary or
                                    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
                                    Employer and that money damage will not
                                    provide adequate remedy to Employer; and

                           (ii)     The right and remedy to require Executive to
                                    account for and pay over to Employer all
                                    compensation, profits, monies, accruals,
                                    increments, or other benefits derived or
                                    received by him as the result of any
                                    transactions constituting a breach of the
                                    Restrictive Covenants. Employer may set off
                                    any amounts finally determined to be due it
                                    under this Paragraph 9(b) against any
                                    amounts owed to Executive.

                  (c) SEVERABILITY OF COVENANTS. Executive acknowledges and
agrees that the Restrictive Covenants are reasonable in geographical and
temporal scope, with respect to the activities restricted and in all other
respects. If it is determined that any of the Restrictive Covenants, or any part
thereof, is invalid or unenforceable, the remainder of the Restrictive Covenants
shall not thereby be affected and shall be given full effect, without regard to
the invalid portions.

                  (d) BLUE-PENCILLING. If it is determined that any of the
Restrictive Covenants, or any part thereof, is unenforceable because of the
duration or geographical scope of such provision, the duration or scope of such
provision, as the case may be, shall be reduced so that

                                       21
<PAGE>   22

such provision becomes enforceable and, in its reduced form, such provision
shall then be enforceable and shall be enforced.

         10. WITHHOLDING TAXES. Except as otherwise provided, all payments to
Executive, including the bonus compensation under this Employment Agreement,
shall be subject to withholding on account of federal, state, and local taxes as
required by law. Any amounts remitted by Employer to the appropriate taxing
authorities a taxes withheld by Employer from Executive on income realized by
Executive shall reduce the amounts payable by Employer to Executive hereunder.
If any particular payment required hereunder is insufficient to provide the
amount of such taxes required to be withheld, Employer may withhold such taxes
from any other payment due Executive.

         11. NO CONFLICTING AGREEMENTS. Executive represents and warrants that
he is not a party to any agreement, contract or understanding, whether
employment or otherwise, which would restrict or would prohibit him from
undertaking or performing employment in accordance with the terms and conditions
of this Employment Agreement.

         12. SEVERABLE PROVISIONS. The provisions of this Employment Agreement
are severable, and if any one or more provisions may be determined to be illegal
or otherwise unenforceable, in whole or in part, the remaining provisions and
any partially unenforceable provision to the extent enforceable in any
jurisdiction shall, nevertheless, be binding and enforceable.

         13. BINDING AGREEMENT. Each of CSC and Consolidated shall require any
successor (whether direct or indirect), by purchase, merger, consolidation,
reorganization or otherwise, to all or substantially all of the business and/or
assets of any of them expressly to assume and to agree to perform this
Employment Agreement in the same manner and to the same extent that each of them
would be required to perform if no such succession has taken place. This
Employment Agreement shall be binding upon and inure to the benefit of each of
CSC and

                                       22
<PAGE>   23

Consolidated and any successor of any of them, including without limitation any
persons acquiring directly or indirectly all or substantially all of the
business and/or assets of any of them whether by sale, merger, consolidation,
reorganization or otherwise (and such successor shall thereafter be deemed the
"Employer" for purposes of this Employment Agreement), but shall not otherwise
be assignable or delegatable by CSC or Consolidated.

                  This Employment Agreement shall inure to the benefit of and be
enforceable by Executive and each of Executive's personal or legal
representatives, executive, administrators, successor, heirs, distributees
and/or legatees.

         14. 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 (5) days after the date of deposit in the United States mails
as follows:
<TABLE>
<CAPTION>
<S>                                                           <C>
                           (i)      if to the Employer to:    Consolidated Stores Corporation
                                                              300 Phillipi Road
                                                              Columbus, Ohio  43228-1310
                                                              Attention:  Charles Haubiel, Esq.
                                                              Vice President and General Counsel

                                    with a copy to:           Chairman of the Compensation Committee
                                                              of the CSC Board of Directors

                           (ii)     if to the Executive to:   Albert J. Bell
                                                              7007 Temperance Point Street
                                                              Westerville, OH 43082
</TABLE>

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

                                       23
<PAGE>   24

         15. WAIVER. The failure of either party to enforce any provision or
provisions of this Employment Agreement shall not in any way be construed as a
waiver of any such provision or provisions as to any future violations thereof,
nor prevent that party thereafter from enforcing each and every other provision
of this Employment Agreement. The rights granted the parties herein are
cumulative and the waiver of any single remedy shall not constitute a waiver of
such party's rights to assert all other legal remedies available to it under the
circumstances.

         16. MISCELLANEOUS. This Employment Agreement supersedes all prior
agreements and understandings between the parties and may not be modified or
terminated orally. No modification, termination or attempted waiver shall be
valid unless in writing and signed by the party against whom the same is sought
to be enforced. If Executive is successful in any proceeding against Employer to
collect amounts due Executive under this Employment Agreement, Employer shall
reimburse Executive for his court costs and reasonable attorneys' fees in
connection therewith.

         17. GOVERNING LAW. This Employment Agreement shall be governed by and
constructed according to the laws of the State of Ohio.

         18. CAPTIONS AND PARAGRAPHS HEADINGS. Captions and paragraph headings
used herein are for convenience and are not a part of this Employment Agreement
and shall not be used in construing it.

         19. INTERPRETATION. Where necessary or appropriate to the meaning
hereof, the singular and plural shall be deemed to include each other, and the
masculine, feminine and neuter shall be deemed to include each other.

         20. AMENDMENTS. Neither CSC nor Consolidated shall amend, terminate, or
suspend this Employment Agreement or any provision hereof without the written
consent of Executive.

         21. LEGAL FEES AND EXPENSES. It is the intent of Employer that
Executive not be required to incur the expenses associated with the enforcement
of his rights under this

                                       24
<PAGE>   25

Employment Agreement in the event of a Change in Control by litigation or other
legal action because the cost and expense thereof would substantially detract
from the benefits intended to be extended to Executive hereunder. Accordingly,
if it should appear to Executive that Employer has failed to comply with any of
its obligations under this Employment Agreement, or in the event that Employer
or any other person takes any action to declare this Employment Agreement void
and/or unenforceable, or institutes any litigation designed to deny, and/or to
recover from, Executive the benefits intended to be provided to Executive
hereunder, Employer hereby irrevocably authorizes Executive from time to time to
retain counsel of his choice at the expense of Employer to represent Executive
in connection with the initiation or defense of any litigation and/or other
legal action, whether by or against Employer or any director, officer,
stockholder, or other person affiliated with Employer in any jurisdiction.
Notwithstanding any existing or prior attorney-client relationship between
Employer and such counsel, into an attorney-client relationship with such
counsel, and in that connection Employer acknowledges that a confidential
relationship shall exist between Executive and such counsel. Employer shall pay
and be solely responsible for any and all attorneys' and related fees and
expenses incurred by Executive as a result of Employer or any person contesting
the validity and/or enforceability of this Employment Agreement or any provision
hereof.

                                       25
<PAGE>   26
         IN WITNESS WHEREOF, the parties have caused this Employment Agreement
to be effective as of the 26th day of June, 2000.

Attest:                                CONSOLIDATED STORES CORPORATION,
                                       a Delaware Corporation

/s/ Charles W. Haubiel II              By: /s/ Michael J. Potter
--------------------------------           -------------------------------------
Secretary                                  Michael J. Potter
                                           Chairman and Chief Executive Officer

Attest:                                CONSOLIDATED STORES CORPORATION,
                                       an Ohio Corporation

/s/ Charles W. Haubiel II              By: /s/ Michael J. Potter
--------------------------------           -------------------------------------
Secretary                                  Michael J. Potter
                                           Chairman and Chief Executive Officer

                                           /s/ Albert J. Bell
                                           -------------------------------------
                                           Albert J. Bell

                                       26<PAGE>   1
                              AMENDED AND RESTATED
                              EMPLOYMENT AGREEMENT
                              --------------------

         THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT is entered into as of
the 27th day of June, 2000, by and among CONSOLIDATED STORES CORPORATION, a
Delaware corporation ("CSC"), CONSOLIDATED STORES CORPORATION, an Ohio
corporation ("Consolidated") (CSC and Consolidated are hereinafter jointly
referred to as "Employer"), and William G. Kelley, an individual residing in
Florida ("Executive").

                              W I T N E S S E T H:

         WHEREAS, Executive was formerly employed by each of CSC and
Consolidated as its Chief Executive Officer, President and Chairman of the Board
of Directors; and

         WHEREAS, effective as of June 27, 2000 (the "Amendment Effective
Date"), Executive voluntarily resigned from his positions as Chief Executive
Officer and President of CSC and Consolidated, resigned from his position as
Chairman of the Board of Directors of Consolidated and retired from all service
as an employee, officer and director of each of CSC's other direct and indirect
subsidiaries; and

         WHEREAS, Executive will continue as Chairman of the Board of Directors
of CSC (the "Board") until the date prior to the date of the next scheduled
meeting of the Board of CSC which will be August 14, 2000 and thereafter will
continue as an employee of Employer pursuant to this Employment Agreement; and

                                     -1-
<PAGE>   2

         WHEREAS, the parties desire to set forth the terms and conditions of
Executive's continued employment with Employer;

         NOW, THEREFORE, in consideration of the mutual promises herein
contained, the parties agree as follows:

         1. RESIGNATIONS.

         (a) Executive acknowledges and agrees that, effective as of the
Amendment Effective Date, he voluntarily resigned from his positions as Chief
Executive Officer and President of each of CSC and Consolidated, resigned from
his position as Chairman of the Board of Directors of Consolidated and retired
from all service as an employee, officer and director of each of CSC's other
direct and indirect subsidiaries.

         (b) Executive shall serve as Chairman of the Board of CSC until August
14, 2000, whereupon he shall voluntarily resign as director and Chairman of the
Board of CSC.

         2. EMPLOYMENT DUTIES.

         (a) EMPLOYMENT. During the term of this Employment Agreement, and in
addition to his duties as Chairman of the Board of CSC until August 14, 2000,
Employer shall employ Executive as an employee of Employer, with the duty of
providing advice and counsel from time to time to the Board of CSC and to
Employer's senior management relating to (i) merchandising matters, (ii) the
competitors of Employer, (iii) mergers and acquisitions and (iv) such other
strategic matters as determined by the Board of CSC or by senior management of
Employer. Executive shall

                                      -2-

<PAGE>   3

report directly to the Vice Chairman of the Board of CSC. Executive shall
prepare monthly reports (one per quarter which shall be in writing) summarizing
his activities and shall prepare such other summary reports as the Vice Chairman
of the Board of CSC may reasonably request on matters within the scope of the
Executives duties hereunder. Except for his position as Chairman of the Board of
CSC until August 14, 2000, Executive shall not be an officer or director of CSC
or any of its subsidiaries.

         (b) DUTIES AND ATTENTION. Executive shall, from time to time, devote
such portion of his business time and attention to his duties and
responsibilities hereunder as is necessary to fulfill those duties and shall
perform diligently such duties. Subject to Paragraph 9(a), so long as it does
not interfere in any material respect with his duties under this Employment
Agreement, Executive may (i) render services of a business, professional,
commercial or other nature for compensation to other persons or firms, (ii)
attend to outside investments and serve as a director, trustee or officer of or
otherwise participate in educational, welfare, social, religious and civic
organizations and (iii) serve as a director of public or private corporations
that are not engaged in the Company Business (as defined in Paragraph 9(a)
hereof).

         (c) BUSINESS DECISIONS. Executive shall have no liability to Employer
for any act or omission undertaken during the term of this Employment Agreement
in his good faith business judgment in furtherance of his duties as prescribed
in or under this Employment Agreement.

                                      -3-

<PAGE>   4

         (d) INDEMNIFICATION. For service through the Amendment Effective Date
as a director or officer of CSC, Consolidated or any subsidiary of either of
them and for service as Chairman of the Board of CSC through August 14, 2000,
which service shall in each instance be deemed to be at the request of CSC and
its Board of Directors, Executive shall be entitled to the protection of the
applicable indemnification provisions of the charter and by-laws of CSC,
Consolidated and any such subsidiary, and Employer agrees to indemnify and hold
harmless Executive from and against any claims, liabilities, damages or expenses
incurred by Executive in or arising out of the status, capacities and activities
as an officer or director of CSC, Consolidated and any subsidiary of either to
the maximum extent permitted by law.

         3. TERM.

         Subject to the effectiveness of this Employment Agreement pursuant to
Section 22, Executive's service as an employee hereunder shall commence as of
the Amendment Effective Date and shall end on August 14, 2002, unless earlier
terminated as provided herein.

         4. COMPENSATION.

         (a) SALARY. For Executive's service as an employee hereunder, Employer
shall pay to Executive a base salary as follows, (i) for the period commencing
on the Amendment Effective Date and ending on August 14, 2001, a salary at the
rate of nine hundred eighty-two thousand dollars ($982,000.00) per annum, and
(ii) for the period August 15, 2001 through August 14, 2002, a salary of two
hundred thousand dollars

                                      -4-

<PAGE>   5

($200,000) and, in the case of each of (i) and (ii), payable in those
installments customarily used in payment of salaries to Employer's executives
(but in no event less frequently than monthly).

         (b) BONUS. (i) In addition to the salary compensation as above stated,
Employer shall pay to Executive bonus compensation for the fiscal year 2000
equal to the bonus to which he would have been entitled under Employer's Key
Associate Annual Incentive Compensation Plan as in effect on the date hereof had
he remained Chairman of the Board and Chief Executive Officer of CSC through the
end of such fiscal year, multiplied by a fraction, the numerator of which is 199
(the number of days in fiscal year 2000 through August 14, 2000) and the
denominator of which is 365. Executive's bonus as set forth in this Paragraph
4(b) shall be the only cash incentive compensation to which Executive shall be
entitled in respect of his services during the term of this Employment
Agreement.

         (ii) Any bonus paid for the fiscal year 2000 under Paragraph 4(b)(i)
shall be paid as and when such bonuses are paid to senior management of
Employer. In the event of a termination of Executive's employment prior to the
payment of said bonus as a consequence of Executive's death or "permanent
disability" (as defined below), Executive or his estate, as the case may be,
shall be entitled to receive said bonus when and as provided in the first
sentence of this Paragraph 4(b)(ii). For the purposes of this Employment
Agreement, Executive's "permanent disability" occurrence and benefits

                                      -5-

<PAGE>   6

shall be determined in the same manner as are other such occurrences and
benefits under Employer's Disability Policy in effect at the date of the
occurrence.

         (c) ACCELERATED PAYMENTS. (i) Upon a "Change in Control" of CSC, all
amounts payable under this Paragraph 4 shall become immediately due and payable.

                  (ii) As used herein, "Change in Control" means any of the
following events: (i) any person or group (as defined for purposes of Section
13(d) of the Securities Exchange Act of 1934) becomes the beneficial owner of,
or has the right to acquire (by contract, option, warrant, conversion of
convertible securities or otherwise), 20% or more of the outstanding equity
securities of CSC entitled to vote for the election of directors; (ii) a
majority of the Board of Directors of CSC is replaced within any period of two
years or less by directors not nominated and approved by a majority of the
directors of CSC in office at the beginning of such period (or their successors
so nominated and approved), or a majority of the Board of Directors of CSC at
any date consists of persons not so nominated and approved; (iii) the
stockholders of CSC approve an agreement to reorganize, merge or consolidate
with another corporation (other than Consolidated or an affiliate); or (iv) the
stockholders of CSC adopt a plan or approve an agreement to sell or otherwise
dispose of all or substantially all of CSC's assets (including without
limitation, a plan of liquidation or dissolution), in a single transaction or
series of related transactions. The effective date of any such Change in Control
shall be the date upon which the last event occurs or last action taken such
that the definition of such Change in Control (as set forth above) has been met.
For purposes of this Employment

                                      -6-

<PAGE>   7

Agreement, the term "affiliate" shall mean: (i) any person or entity qualified
as part of an affiliated group which includes Consolidated and CSC pursuant to
Section 1504 of the Code; or (ii) any person or entity qualified as part of a
parent-subsidiary group of trades and businesses under common control within the
meaning of Treasury Regulation Section 1.414(c)(2)(b). Determination of
affiliate status shall be tested as of the date immediately prior to any event
constituting a Change in Control. The other provisions of this Paragraph
4(c)(iii) notwithstanding, the term "Change in Control" shall not mean any
transaction, merger, consolidation, or reorganization in which CSC exchanges or
offers to exchange newly issued or treasury shares in an amount less than 50% of
the then outstanding equity securities of CSC entitled to vote for the election
of directors, for 51% or more of the outstanding equity securities entitled to
vote for the election of at least the majority of the directors of a corporation
other than Consolidated or an affiliate thereof (the "Acquired Corporation"), or
for all or substantially all of the assets of the Acquired Corporation.

                  5. TRANSPORTATION. During the term of this Employment
Agreement, Employer shall continue to provide Executive with the automobile
being used by the Executive as of the Amendment Effective Date. Employer shall
pay all maintenance and repair expenses with respect to the automobile, procure
and maintain in force at Employer's expense collision, comprehensive, and
liability insurance coverage with respect to the automobile, and pay operating
expenses with respect to the automobile to the extent such operating expenses
are incurred in the conduct of Employer's business.

                                      -7-
<PAGE>   8

Employer shall also pay for all costs and expenses in transporting such
automobile from Columbus, Ohio to Naples, Florida. At the end of the lease term,
Executive shall be permitted to purchase such automobile in accordance with
applicable Employer policy.

         6. LIFE INSURANCE, OTHER BENEFITS AND STOCK OPTIONS.

         (a) VACATION AND SICK LEAVE. During the term of this Employment
Agreement, Executive shall be entitled to such periods of vacation and sick
leave allowance each year which shall not be less than as provided under
Employer's Vacation and Sick Leave Policy for executive officers.

         (b) GROUP PLANS, ETC. During the term of this Employment Agreement,
Executive shall be entitled to participate in any group life, hospitalization,
or disability insurance plan, health program, retirement plan or other executive
benefit plan (other than bonus compensation or performance plans) that is
generally available to senior executive officers, as distinguished from general
management, of Employer. Executive's participation in and benefits under any
such plan shall be on the terms and subject to the conditions specified in the
governing document of the particular plan. Executive shall be entitled to 100%
reimbursement of his medical and dental expenses incurred during the term of
this Employment Agreement.

         (c) Any and all options to purchase shares of common stock of Employer
or any of its subsidiaries under any plan of Employer or any of its subsidiaries
shall remain outstanding, shall continue to vest and be and become exercisable
in accordance with their terms as set forth in any applicable stock option
agreement and, to

                                      -8-

<PAGE>   9

the extent vested and exercisable upon termination of Executive's employment
hereunder, shall remain outstanding and exercisable for 90 days thereafter.

         7. TERMINATION AND FURTHER COMPENSATION.

         (a) The employment of Executive under this Employment Agreement and the
term hereof may be terminated by Employer for cause at any time. For purposes
hereof; the term "cause" shall mean:

                           (A)      Executive's conviction of a felony or acts
                                    of embezzlement, fraud or theft, in each
                                    case from or involving Employer or any
                                    subsidiary;

                           (B)      Executive's breach of any of the Restrictive
                                    Covenants (as defined in Paragraph 9(b)
                                    below) or Executive's willful breach in a
                                    material respect of any other material
                                    provision of this Employment Agreement which
                                    failure has not been cured in all
                                    substantial respects within ten (10) days
                                    after Employer gives written notice thereof
                                    to Executive; or

                           (C)      Executive's willful, wrongful engagement in
                                    any Competitive Activity (as that term is
                                    hereinafter defined).

         Any termination of Executive for "cause" shall not be effective until
all the following shall have taken place:

                                      -9-

<PAGE>   10

                  (i)      The Secretary of CSC pursuant to resolution of the
                           Board, shall have given written notice to Executive
                           that, in the opinion of the Board, Executive may be
                           terminated for cause, specifying the details;

                  (ii)     Executive shall have been given a reasonable
                           opportunity to appear before the Board prior to the
                           determination of the Board evidenced by such
                           resolution;

                  (iii)    With respect to any matters other than Executive's
                           conviction of a felony or acts of embezzlement, fraud
                           or theft, Executive shall neither have ceased to
                           engage in the activity giving rise to the proposed
                           termination for cause within thirty (30) days after
                           his receipt of such written notice nor diligently
                           taken all reasonable steps to that end during such
                           thirty (30) day period and thereafter;

                  (iv)     After complying with the procedures set forth in
                           subparagraphs (i) through (iii) above, Executive
                           shall have been delivered a certified copy of a
                           resolution of the Board adopted by the affirmative
                           vote of not less than three-fourths (3/4) of the
                           entire membership of the Board finding that Executive
                           was guilty of the conduct giving rise to the
                           termination for cause.

                                      -10-

<PAGE>   11

         Any termination by reason of the foregoing shall not be in limitation
of any other right or remedy Employer may have under this Employment Agreement,
at law, in equity or otherwise.

         The term "Competitive Activity" shall mean Executive's participation,
without the written consent of the Board, in the management of any business
operation of any enterprise if such operation (a "Competitive Operation")
engages in substantial and direct competition with Employer or any subsidiary.
For purposes of this Employment Agreement, a business enterprise shall be
considered in substantial and direct competition with Employer or any subsidiary
if such business operation's sales of closeout merchandise, furniture
merchandise or toy merchandise amount to ten percent (10%) or more of such
business operation's total sales. "Competitive Activity" shall not include (i)
the mere ownership of securities in any publicly traded enterprise and the
exercise of rights appurtenant thereto or (ii) participation in management of
any publicly traded enterprise or business operation thereof other than in
connection with the Competitive Operation of such enterprise.

         (b) In the event of termination for "cause" set forth in subparagraph
(a) of this Paragraph 7, except as otherwise provided in Paragraph 8 of this
Employment Agreement, Executive shall be entitled to no further compensation or
other benefits under this Employment Agreement (other than as provided by law),
except as to that portion of any unpaid salary and other benefits accrued and
earned by him hereunder up to and including the effective date of such
termination.

                                      -11-

<PAGE>   12
         (c) If Executive hires legal counsel with respect to any alleged
failure by Employer to comply with any of the terms of this Employment
Agreement, or institutes any negotiation or institutes or responds to any legal
action to assert or defend the validity of or to enforce Executive's rights
under, or to recover damages for breach of, this Employment Agreement, Employer
shall pay Executive's expenses for reasonable attorneys' fees and disbursements,
together with such additional payments, if any, as may be necessary so that the
net after-tax payments so made to Executive equal such fees and disbursements;
provided, that Executive shall be responsible for his own fees and expenses with
respect to any lawsuit between Executive and Employer to enforce rights or
obligations under this Employment Agreement in which Employer is the prevailing
party. The fees and expenses incurred by Executive in instituting or responding
to any such negotiation or legal action shall be paid by Employer as they are
incurred, in advance of the final disposition of the action or proceeding, upon
receipt of an undertaking by Executive to repay such amounts if Employer is
ultimately determined to be the prevailing party.

         (d) If any amount due Executive hereunder is not paid when due, then
Employer shall pay interest on said amount at an annual rate equal to the base
lending rate of National City Bank, Cleveland, Ohio, or successor, as in effect
from time to time, for the period between the date on which such payment is due
and the date said amount is paid.

                                      -12-

<PAGE>   13

         (e) Employer's obligation to pay Executive the compensation and to make
the arrangements required hereunder shall be absolute and unconditional and
shall not be affected by any circumstance, including, without limitation, any
setoff, counterclaim, recoupment, defense or other right that Employer may have
against Executive or otherwise. All amounts payable by Employer hereunder shall
be paid without notice or demand. Each and every payment made hereunder by
Employer shall be final and Employer shall not seek to recover all or any part
of such payment from Executive or from whosoever may be entitled thereto, for
any reason whatsoever. Executive shall not be obligated to seek other employment
or compensation or insurance in mitigation of any amount payable or arrangement
made under any provision of this Employment Agreement, and the obtaining of any
such other employment or compensation or insurance shall in no event effect any
reduction of Employer's obligations to make the payments and arrangements
required to be made under this Employment Agreement.

         (f) From and after any termination of Executive's employment, Executive
shall retain in confidence and not use for his own benefit or on behalf of any
other person or entity any confidential information known to him concerning
Employer, its subsidiaries and their respective businesses so long as such
information is not publicly disclosed by someone other than Executive.

         (g) Any provision in this Employment Agreement which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
only to the

                                      -13-

<PAGE>   14

extent of such prohibition or unenforceability without invalidating or affecting
the remaining provisions hereof, and any such prohibition or unenforceability in
any jurisdiction shall not invalidate or render unenforceable such provision in
any other jurisdiction.

         8. EXPENSES.

         (a) Employer shall reimburse Executive during the term of this
Employment Agreement for those expenses reasonably incurred by Executive in
connection with his duties hereunder which are approved in advance by Employer.
Executive shall furnish such documentation with respect to reimbursement to be
paid under this Paragraph 8 as Employer shall reasonably request. From and after
August 14, 2000, Employer shall cease payment or reimbursement of any cellular
telephone expenses incurred by Executive and any expenses for security
monitoring or other security services being provided to Executive; provided,
however, that the security system in place at Executive's residence at 2115
Waltham Road, Columbus, Ohio, shall be maintained by Employer at its expense
through the sale of such residence, but in no event beyond the term of the
Employment Agreement.

         (b) Employer shall reimburse Executive for expenses reasonably incurred
by Executive in connection with Executive's resignations pursuant to Paragraph 1
hereof and in connection with the negotiation and execution of this Employment
Agreement.

                                      -14-

<PAGE>   15

         9. COVENANTS OF EXECUTIVE AND EMPLOYER.

         (a) COVENANT AGAINST COMPETITION. Executive acknowledges that (i) the
principal businesses of Employer include the operation of its "Odd Lots", "Big
Lots", "MacFrugal's" and "Pic N' Save" discount general merchandise consumer
goods retail outlets, the inventories of which are acquired primarily through
special purchase situations such as overstocks, closeouts, liquidations,
bankruptcies, wholesale distribution of overstock, distress, liquidation and
other volume inventories, the operation of its K-B Toy, K-B Toy Works, K-B Toy
Liquidator toy stores and the K-Bkids.com website, and the operation of its Big
Lots Furniture and Odd Lots Furniture stores (the "Company Business"); (ii)
Employer is one of the limited number of persons who has developed such
business; (iii) the Company Business is national in scope; (iv) Executive's work
for Employer will give him access to the confidential affairs of Employer; and
(v) the agreements and covenants of Executive contained in this Paragraph 9 are
essential to the business and goodwill of Employer. Accordingly, Executive
covenants and agrees that:

                  (A)      While the Executive is an employee of Employer or, if
                           later, until August 14, 2002, (the "Restricted
                           Period"), Executive shall not in any location where
                           Employer's or any of its subsidiaries retail stores
                           are located throughout the United States of America,
                           directly or indirectly, (1) engage in the Company
                           Business for Executive's own account (other than
                           pursuant to this Employment Agreement), (2) render
                           any

                                      -15-
<PAGE>   16

                           services to any person engaged in such activities
                           (other than Employer), or (3) or engage in any
                           Competitive Activity (as defined above); provided,
                           however, that the covenant against competition set
                           forth in this Paragraph 9(a)(A) shall cease to be of
                           any force and effect as of the first day immediately
                           following the six-month anniversary of a Change in
                           Control.

                  (B)      While the Executive is an employee of Employer and
                           thereafter, Executive shall keep secret and retain in
                           strictest confidence, and shall not use for his
                           benefit or the benefit of others, any confidential
                           matters relating to the Company Business hereafter
                           learned by Executive, and shall not disclose them to
                           anyone except with Employer's express written consent
                           and except for information which (i) is at the time
                           of receipt, or thereafter becomes, publicly known
                           through no wrongful act of Executive, or (ii) is
                           received from a third party not under an obligation
                           to keep such information confidential and without
                           breach of this Employment Agreement.

                  (C)      During the Restricted Period, the Executive shall
                           not, without Employer's prior written consent,
                           directly or indirectly, solicit or encourage to leave
                           the employment of Employer or any of

                                      -16-

<PAGE>   17

                           its subsidiaries, any executive of Employer or any of
                           its subsidiaries.

                  (D)      All memoranda, notes, lists, records and other
                           documents (and all copies thereof) made or compiled
                           by Executive or made available to Executive
                           concerning the Company Business shall be Employer's
                           property and shall be delivered to Employer at any
                           time on request.

                  (E)      While the Executive is an employee of Employer and
                           thereafter, (i) Executive will not make or publish
                           any materially disparaging statements (whether
                           written, electronic or oral) regarding, or otherwise
                           malign the business reputation of, Employer, any of
                           its subsidiaries or affiliates, or any employee,
                           officer or director of any of them, and (ii) CSC will
                           not make or publish any materially disparaging
                           statements (whether written, electronic or oral)
                           regarding, or otherwise malign Executive.

         (b) RIGHTS AND REMEDIES UPON BREACH. If Executive breaches any of the
provisions of Paragraph 9(a) (the "Restrictive Covenants"), or a breach thereof
is imminent, Employer shall have the following rights and remedies, each of
which rights and remedies shall be independent of the other and severally
enforceable, and all of which

                                      -17-

<PAGE>   18

rights and remedies shall be in addition to, and not in lieu of, any other
rights and remedies available to Employer under law or in equity:

                  (i)      The right and remedy to have the Restrictive
                           Covenants specifically enforced by any court having
                           equity jurisdiction, including, without limitation,
                           the right to an entry against Executive of
                           restraining orders and injunctions (preliminary,
                           temporary or 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 Employer and that
                           money damage will not provide adequate remedy to
                           Employer; and

                  (ii)     The right and remedy to require Executive to account
                           for and pay over to Employer all compensation,
                           profits, monies, accruals, increments, or other
                           benefits derived or received by him as the result of
                           any transactions constituting a breach of the
                           Restrictive Covenants. Employer may set off any
                           amounts finally determined to be due it under this
                           Paragraph 9(b) against any amounts owed to Executive.

         (c) SEVERABILITY OF COVENANTS. Executive acknowledges and agrees that
the Restrictive Covenants are reasonable in geographical and temporal scope,
with respect

                                      -18-

<PAGE>   19

to the activities restricted and in all other respects. If it is determined that
any of the Restrictive Covenants, or any part thereof, is invalid or
unenforceable, the remainder of the Restrictive Covenants shall not thereby be
affected and shall be given full effect, without regard to the invalid portions.

         (d) BLUE-PENCILLING. If it is determined that any of the Restrictive
Covenants, or any part thereof, is unenforceable because of the duration or
geographical scope of such provision, 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.

         (e) COVENANT REGARDING NOTICE OF SALE OF COMMON STOCK. If at any time
Executive wishes to sell shares of common stock of CSC, he shall first give
notice to the Chief Executive Officer of CSC of the number of shares of common
stock to be sold and the proposed date or dates of the sale and, if the sale is
other than a sale on an established securities exchange, the name and address of
the proposed transferee and the terms and conditions of the sale. Executive
acknowledges that CSC and its subsidiaries and affiliates, and their employees,
directors, consultants and advisors, (i) may from time to time be in possession
of material, non-public information concerning CSC and its subsidiaries and
affiliates and (ii) shall have no obligation to provide (and shall not provide)
any such information to Executive other than at the times, and in the manner,
such information is provided to stockholders of CSC generally. Employer
acknowledges that Executive shall have no obligation hereunder to obtain prior
approval of any sale of

                                      -19-

<PAGE>   20

common stock of CSC. Executive covenants that he shall not at any time seek to
obtain any material, non-public information concerning CSC or any of its
subsidiaries or affiliates from any employee or director of, or consultant or
advisor to, CSC or any of its subsidiaries or affiliates.

         10. WITHHOLDING TAXES. Except as otherwise provided, all payments to
Executive, including the bonus compensation under this Employment Agreement,
shall be subject to withholding on account of federal, state, and local taxes as
required by law. Any amounts remitted by Employer to the appropriate taxing
authorities as taxes withheld by Employer from Executive on income realized by
Executive shall reduce the amounts payable by Employer to Executive hereunder.
If any particular payment required hereunder is insufficient to provide the
amount of such taxes required to be withheld, Employer may withhold such taxes
from any other payment due Executive.

         11. NO CONFLICTING AGREEMENTS. Executive represents and warrants that
he is not a party to any agreement, contract or understanding, whether
employment or otherwise, which would restrict or would prohibit him from
undertaking or performing employment in accordance with the terms and conditions
of this Employment Agreement.

         12. SEVERABLE PROVISIONS. The provisions of this Employment Agreement
are severable, and if any one or more provisions may be determined to be illegal
or otherwise unenforceable, in whole or in part, the remaining provisions and
any partially unenforceable provision to the extent enforceable in any
jurisdiction shall, nevertheless, be binding and enforceable.

                                      -20-

<PAGE>   21

         13. BINDING AGREEMENT. Employer shall require any successor (whether
direct or indirect), by purchase, merger, consolidation, reorganization or
otherwise, to all or substantially all of the business and/or assets of any of
them expressly to assume and to agree to perform this Employment Agreement in
the same manner and to the same extent that each of them would be required to
perform if no such succession has taken place. This Employment Agreement shall
be binding upon and inure to the benefit of Employer and any of its successors,
including without limitation any persons acquiring directly or indirectly all or
substantially all of the business and/or assets of Employer whether by sale,
merger, consolidation, reorganization or otherwise (and such successor shall
thereafter be deemed the "Employer" for purposes of this Employment Agreement),
but shall not otherwise be assignable or delegatable by Employer.

         This Employment Agreement shall inure to the benefit of and be
enforceable by Executive and each of Executive's personal or legal
representatives, executive, administrators, successor, heirs, distributees
and/or legatees.

         14. 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 (5) days after the date of deposit in the United States mails
as follows:

                                      -21-

<PAGE>   22

         (i)      if to Employer to:

                  Consolidated Stores Corporation
                  300 Phillipi Road
                  Columbus, Ohio 43228-1310
                  Attention:  Albert J. Bell, Esq., Vice Chairman and Chief
                              Administrative Officer

                  with a copy to: Chairman of the Compensation Committee of CSC

         (ii)     if to the Executive to:

                  William G. Kelley
                  2800 Gordon Drive
                  Naples, Florida 34102

                  with a copy to:

                  Randall M. Walters, Esq.
                  Jones, Day, Reavis & Pogue
                  1900 Huntington Center
                  Columbus, Ohio 43215-6113

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

         15. WAIVER. The failure of either party to enforce any provision or
provisions of this Employment Agreement shall not in any way be construed as a
waiver of any such provision or provisions as to any future violations thereof;
nor prevent that party thereafter from enforcing each and every other provision
of this Employment Agreement. The rights granted the parties herein are
cumulative and the waiver of any single remedy shall not constitute a waiver of
such party's rights to assert all other legal remedies available to it under the
circumstances.

                                      -22-

<PAGE>   23

         16. MISCELLANEOUS. This Employment Agreement supersedes all prior
agreements and understandings between the parties (including, without
limitation, the Employment Agreement dated May 19, 1998 to which Executive is a
party (the "Prior Agreement")) and may not be modified or terminated orally. No
modification, termination or attempted waiver shall be valid unless in writing
and signed by the party against whom the same is sought to be enforced. If
Executive is successful in any proceeding against Employer to collect amounts
due Executive under this Employment Agreement, Employer shall reimburse
Executive for his court costs and reasonable attorneys' fees in connection
therewith.

         17. GOVERNING LAW. This Employment Agreement shall be governed by and
constructed according to the laws of the State of Ohio.

         18. CAPTIONS AND PARAGRAPHS HEADINGS. Captions and paragraph headings
used herein are for convenience and are not a part of this Employment Agreement
and shall not be used in construing it.

         19. INTERPRETATION. Where necessary or appropriate to the meaning
hereof, the singular and plural shall be deemed to include each other, and the
masculine, feminine and neuter shall be deemed to include each other.

         20. AMENDMENTS. Neither Employer nor Executive shall amend, terminate,
or suspend this Employment Agreement or any provision hereof without the written
consent of the other party.

                                      -23-

<PAGE>   24

         21. LEGAL FEES AND EXPENSES. It is the intent of Employer that
Executive not be required to incur the expenses associated with the enforcement
of his rights under this Employment Agreement in the event of a Change in
Control by litigation or other legal action because the cost and expense thereof
would substantially detract from the benefits intended to be extended to
Executive hereunder. Accordingly, if it should appear to Executive that Employer
has failed to comply with any of its obligations under this Employment
Agreement, or in the event that Employer or any other person takes any action to
declare this Employment Agreement void and/or unenforceable, or institutes any
litigation designed to deny, and/or to recover from, Executive the benefits
intended to be provided to Executive hereunder, Employer hereby irrevocably
authorizes Executive from time to time to retain counsel of his choice at the
expense of Employer to represent Executive in connection with the initiation or
defense of any litigation and/or other legal action, whether by or against
Employer or any director, officer, stockholder, or other person affiliated with
Employer in any jurisdiction. Notwithstanding any existing or prior
attorney-client relationship between Employer and such counsel, into an
attorney-client relationship with such counsel, and in that connection Employer
acknowledges that a confidential relationship shall exist between Executive and
such counsel. Employer shall pay and be solely responsible for any and all
attorneys' and related fees and expenses incurred by Executive as a result of
Employer or any person contesting the validity and/or enforceability of this
Employment Agreement or any provision hereof.

                                      -24-

<PAGE>   25

         22. RELEASE OF CLAIMS; EFFECTIVE DATE. Contemporaneously with the
execution of this Employment Agreement, Executive is executing a general release
of claims in favor of CSC, its subsidiaries, affiliates, employees, officers and
directors (the "Release"). This Employment Agreement shall not become effective
until the Release Effective Date (as defined in the Release). In the event that
Executive revokes the Release prior to the Release Effective Date, this
Employment Agreement shall become null and void, such that, without limitation,
neither this Employment Agreement nor the Release will have any effect on the
effectiveness of the Prior Agreement.

                            [signature page follows]

                                      -25-

<PAGE>   26

         IN WITNESS WHEREOF, the parties hereto have executed this Employment
Agreement, effective as of the Amendment Effective Date.

Attest:                               CONSOLIDATED STORES CORPORATION,
                                      a Delaware Corporation

/s/ Michael A Schlonsky               By: /s/ Albert J. Bell
---------------------------------         --------------------------------------
Assistant Secretary                       Albert J. Bell
                                          Vice Chairman and Chief Administrative
                                          Officer

                                      CONSOLIDATED STORES CORPORATION,
                                      an Ohio Corporation

                                      By: /s/ Albert J. Bell
                                          --------------------------------------
                                          Albert J. Bell
                                          Vice Chairman and Chief Administrative
                                          Officer

                                          /s/ William G. Kelley
                                          --------------------------------------
                                          WILLIAM G. KELLEY

337548 (7/18/00)

                                      -26-

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