Document:

<PAGE>   1
                                                                   EXHIBIT 10.14

                                                                  CONFORMED COPY

                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT ("Amendment"), made and entered into this 7TH
day of May, 2001 by and among MAZEL STORES, INC., an Ohio corporation (the
"Company"), and PETER J. HAYES (the "Employee"), is to evidence the following
agreements and understandings:

                                   WITNESSETH:
                                   ----------

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

         NOW, THEREFORE, the parties agree as follows:

         1. TERM. The Company hereby employs the Employee, and the Employee
hereby accepts such employment, for a term commencing on May 7, 2001 (the
"Effective Date") and ending on May 7, 2004, unless sooner terminated in
accordance with the provisions of Sections 4, 5 or 7; provided that commencing
May 7, 2003, the May 7, 2004 date (as extended hereunder) shall automatically be
extended each day by one day creating a new one-year term until a date one-year
after the Company or the Employee shall have given written notice to the other
of non-renewal (the "TERM").

         2. DUTIES. The Employee, in his capacity as Chief Executive Officer,
shall faithfully perform for the Company the duties of said office and shall
perform such other duties of an executive, managerial or administrative nature
as shall be specified and designated from time to time by the Board of
Directors. In his capacity as an officer of the Company, the Employee shall have
the executive authority, responsibilities and duties

<PAGE>   2

typically held and executed by a Chief Executive Officer of a publicly held
corporation. Without limiting the foregoing, all officers and employees and all
operations and divisions of the Company shall report to Employee or his
designees and the Employee shall report solely to the Board of Directors and its
committees. The Employee shall devote substantially all of his business time and
effort to the performance of his duties hereunder. During the Term, the Company
agrees that Employee shall also serve as a Director of the Company.

         3.       COMPENSATION.

                  3.1 SALARY. The Company shall pay the Employee during the Term
a salary at the rate of Five Hundred Fifty Thousand Dollars ($550,000) per annum
(the "ANNUAL SALARY"). Commencing on each anniversary of the commencement date
of the Term, the Annual Salary shall be increased by an amount (if a positive
number) equal to the product of (i) the Annual Salary in effect immediately
prior to such date, multiplied by (ii) the percentage, if any, by which the
Consumer Price Index (All Items less Shelter), Urban Wage Earners and Clerical
Workers, for the Mid-Atlantic Region/Population Size A, published by the United
States Government for the month preceding such date exceeds such index for the
comparable month in the preceding year. The Annual Salary shall be payable in
equal semi- monthly installments, less such deductions as shall be required to
be withheld by applicable law and regulations.

                  3.2 ANNUAL BONUS. During the Term, the Employee shall be
entitled to receive an annual bonus (the "ANNUAL BONUS") based upon the
Company's pre-tax income for each fiscal year of the Company ending during the
Term, commencing with the fiscal year ending February 2, 2002. Subject to the
terms, conditions and limitations set forth below,

                                       2
<PAGE>   3

the maximum Annual Bonus for any fiscal year shall be Two Hundred Fifty Thousand
Dollars ($250,000). The Annual Bonus shall be based on the Company's pre-tax
income, calculated in accordance with generally accepted accounting principles
consistently applied, to the extent such income exceeds 80% of the "TARGET
AMOUNT" (as hereinafter defined) for such fiscal year; PROVIDED, HOWEVER, that
the Annual Bonus for the fiscal year ending February 2, 2002 ("Fiscal 2001")
shall not be less than One Hundred Thousand Dollars ($100,000). If the Company's
pre-tax income for any Fiscal Year is less than the Target Amount for such
Fiscal Year, the Annual Bonus shall be the amount, if any, equal to (i) (A) the
percentage of the Target Amount which such pre-tax income represents, minus
eighty percent (80%), divided by (B) twenty percent (20%), multiplied by (ii)
$250,000. For example, if the Company's pre-tax is ninety five percent (95%) of
the Target Amount for the Fiscal Year ending February 2, 2002, the Annual Bonus
shall be calculated as follows:

                  (95% - 80%) X $250,000 = $187,500
                  -----------
                         20%

         If the Company's pre-tax income for any Fiscal Year is less than eighty
percent (80%) of the Target Amount for such Fiscal Year, no Annual Bonus shall
be payable for such Fiscal Year. For purposes of this Agreement, the term
"TARGET AMOUNT" shall mean an amount to be determined by the Compensation
Committee of the Board of Directors prior to the end of the first quarter of
such year after consulting with the Employee. The Annual Bonus for each fiscal
year shall be paid in full to the Employee as soon as practicable (but not later
than thirty (30) days) after the Company's audited financial statement for such
fiscal year is available to the Company. In the event Employee's employment
terminates due to death,

                                       3
<PAGE>   4

disability or expiration of the Term as provided in Section 1 hereof, then
Employee shall be entitled to a pro rata share of an Annual Bonus with the
percentage equal to the number of full weeks of employment during the fiscal
year divided by 52. No bonus shall be paid for any year during which the
Employee is terminated for "cause" or the Employee voluntarily elects to
terminate his employment.

                  3.3 OPTIONS. On the Effective Date of this Agreement, the
Employee shall be granted a non-qualified option (the "Option") to purchase up
to five hundred thousand (500,000) Common Shares of the Company at an exercise
price equal to Two and 60/100 Dollars ($2.60). The Option shall expire on the
tenth (10th) anniversary of the Effective Date. The Option shall vest at a rate
of twenty percent (20%) per year, assuming the Employee remains an employee of
the Company, commencing with the first anniversary of
the Effective Date. Except as provided below, if Employee's employment is
terminated, then to the extent any portion of the Option is not yet vested, such
portion of the Option shall terminate on the date of termination of employment.
If the employment is terminated for "Cause" as defined below or prior to the
first date the Option becomes Exercisable as a result of a voluntary termination
by Employee (other than for "Good Reason"), the entire Option shall terminate on
the date of termination. In the event Employee's employment is terminated by the
Company without "Cause" or by him with "Good Reason" (as each such term is
defined below) one-half of the Options which are not then vested shall vest,
unless such termination occurs after a "Change-in-Control" (as defined below) in
which case all the non-vested Options shall vest. All vested Options shall
terminate, unless exercised, three (3) months after the date of termination of
employment, except if such termination is due to

                                       4
<PAGE>   5

death in which case the vested Option shall expire one year after termination of
employment. The number of Common Shares subject to the Option and the Option
exercise price shall be subject to adjustment upon the occurrence of certain
events set forth in Section 12 of the 1996 Stock Option Plan, as in effect as of
the date of this Agreement, which Section 12 is incorporated into this Agreement
by reference. In the event of a "Change in Control" (as defined below), the
Compensation Committee of the Board of Directors shall have the authority and
power to cause the Option to be immediately exercisable notwithstanding any
vesting limitation otherwise previously imposed on such Option and to accelerate
the termination date of such Option; provided that the Option shall be treated
in the same manner as options granted under the Plan to other senior executive
officers of the Company and further provided that in the event of a cash tender
offer or a cash merger or other acquisition of the Company principally for cash
that resulted in a Change in Control, the Option will immediately be exercisable
in full notwithstanding any vesting limitation otherwise previously imposed on
such Option. Thereafter, upon such determination, the Employee may exercise the
Option (in whole or in part, whether or not such Option is by its terms fully
exercisable at such time) and the Committee may authorize the acceptance of the
surrender of the right to exercise such Option or any portion thereof, but in no
event after the expiration of the term of the Option.

                  3.4 LETTER OF CREDIT. The Company shall secure, in part, its
obligation under Sections 3.1 and 7 of this Agreement by establishing a two (2)
year standby letter of credit ("SLC") in favor of Employee issued by the
Company's senior institutional lender, in the form attached hereto as Exhibit A.
The SLC shall be in an amount of Five Hundred Fifty

                                       5
<PAGE>   6

Thousand Dollars ($550,000) and shall provide that Employee may draw upon the
SLC, on a monthly basis, upon presentation to the bank of an affidavit signed by
Employee that (i) the Company has failed to make the salary or termination
payment due under this Agreement and (ii) such payment is more than five (5)
business days late. No draw may exceed the amount of the overdue payment. In the
event the Letter of Credit is scheduled to expire prior to the end of the two
year period referenced above, and the Company has failed to provide a renewal or
replacement letter of credit, the Company shall cause the Letter of Credit Bank
to notify Employee at least 30 days prior to the expiration date of the
scheduled expiration and [The Provident Bank,] as escrow agent, shall be
permitted to fully draw upon the Letter of Credit and hold such funds in escrow
pursuant to the Escrow Agreement attached hereto as Exhibit B.

                  3.5 BENEFITS. The Employee shall be permitted during the Term
to participate in any group life, hospitalization or disability insurance plans,
health programs, pension plans or similar benefits that may be available to
other senior executives of the Company generally, on the same terms as such
other executives, in each case to the extent that the Employee is eligible under
the terms of such plans or programs. Without limiting the foregoing, the
benefits include term life insurance in an amount equal to one times annual
salary, up to $500,000. The Company agrees to purchase additional group term
life insurance or disability insurance in the amounts determined by the Employee
provided that the maximum annual aggregate premiums for such additional
insurance shall not exceed $10,000. The Employee shall also be entitled to
receive vacation of four (4) weeks per year. During the Term, the Employee shall
be entitled to usage of an automobile of his choice

                                       6
<PAGE>   7

which shall be leased by the Company, provided that the monthly lease payments
thereon do not exceed Five Hundred Dollars ($500) and the Company shall be
responsible for the insurance, gasoline and maintenance required for such
automobile.

                  3.6 EXPENSES. The Company shall pay or reimburse the Employee
for all reasonable expenses actually incurred or paid by the Employee during the
Term in the performance of the Employee's services under this Agreement. In
addition, the Company agrees to pay Employee Fifty Five Thousand Dollars
($55,000) to cover the cost of Employee and his family's move to New Jersey,
which payment shall be made in two (2) installments of Twenty Seven Thousand
Five Hundred Dollars ($27,500) each, th first payable on the Effective Date and
the balance immediately upon completion of Employee's family move.

         4. TERMINATION UPON DEATH OR DISABILITY. If the Employee dies during
the term, this Agreement shall terminate as of the date of the Employee's death.
If the Employee by virtue of ill health or other disability is unable to perform
substantially and continuously the duties assigned to him for more than 180
consecutive or non-consecutive days out of any consecutive 12 month period, the
Company shall have the right to terminate the employment of the Employee upon
notice in writing to the Employee. Upon termination, the Employee (or the
Employee's estate or beneficiaries in the case of the death of the Employee)
shall be entitled to receive any Annual Salary and other benefits (excluding
Bonus) earned and accrued under this Agreement, and reimbursement under this
Agreement for expenses incurred, prior to the date of termination. No provision
of this Agreement shall limit any of Employee's rights under any insurance,
pension or other benefit programs of the Company for which the Employee shall be
eligible at the time of such death or disability. The

                                       7
<PAGE>   8

Employee (or his estate or beneficiaries in the case of the death of the
Employee) shall be entitled to a fractional share of the Annual Bonus for the
year of termination, with the numerator being the number of full weeks employed
by the Employee during the fiscal year and the denominator being 52. The Annual
Bonus shall be payable at the same time such bonus is payable to other
employees.

         5. TERMINATION FOR CAUSE. If the Employee (i) is convicted of a felony
or of a crime of moral turpitude or dishonesty involving the Company (other than
pursuant to actions taken at the direction or with the approval of the Board of
Directors); (ii) engages in (A) willful misconduct, (B) willful or gross
neglect, (C) fraud, (D) misappropriation or (E) embezzlement in the performance
of his duties hereunder; or (iii) breaches in any material respect the terms and
provisions of this Agreement and fails to cure such breach, to the extent
curable, within ten days following written notice from the Company specifying
such breach ("Cause"), the Company may terminate the Employee's employment
hereunder on written notice given to the Employee at any time following the
occurrence of any of the events described in clauses (i) and (ii) above and on
written notice given to the Employee at any time not less than 30 days following
the occurrence of any of the events described in clause (iii) above.
Notwithstanding the foregoing, no cure period under clause (iii) above shall be
required to be given by the Company for a third (3rd) or subsequent breach in
any material respect of the terms and conditions of this Agreement by Employee
in any twelve-month period, and notice of termination may be given at any time
by the Company following such third or subsequent material breach. The Employee
shall have no right to receive any compensation or benefit hereunder on and
after the effective date of the notice provided in

                                       8
<PAGE>   9

the preceding sentence other than Annual Salary and other benefits (other than
Bonuses) earned and accrued under this Agreement, and reimbursement under this
Agreement for expenses incurred, prior to the effective date of such notice. The
decision to terminate Employee for Cause must be made by a majority of the Board
of Directors, including a majority of the outside, non-employee Board members,
and may not be made without providing Employee the opportunity to appear before
the Board, with counsel present. Nothing set forth in this Section shall
preclude the Company from dismissing Employee without "Cause" as provided in
Section 7 hereof.

         6.       COVENANT OF THE EMPLOYEE.

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

                                       9
<PAGE>   10
in and for which he has and will have responsibility while at the Company;
(vii) the length of the Restricted Period (as defined below) is necessary and
appropriate to protect the legitimate business interests of the Company because,
among other reasons, the Confidential Company Information he has had and will
have access to will continue to have competitive significance throughout the
Restricted Period; and (vii) the Company would not have entered into this
Agreement but for the covenants and agreements set forth in this Section 6.
Accordingly, the Employee covenants and agrees that:

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

                                       10
<PAGE>   11

                   (b) During and after the Restricted Period, the Employee
         shall keep secret and retain in strictest confidence, and shall not
         disclose, rely on or otherwise use for his benefit or the benefit of
         others, except in connection with the business and affairs of the
         Company and its subsidiaries and affiliates, all confidential matters
         relating to the Company Business learned by the Employee on or after
         the Effective Date directly or indirectly from the Company or its
         subsidiaries and affiliates, including, without limitation, information
         with respect to (a) prospective store locations, (b) sales figures
         (whether per store or otherwise), (c) profit or loss figures (whether
         per store or otherwise), and (d) customers, clients, suppliers, sources
         of supply and customer lists (the "Confidential Company Information")
         and shall not disclose the Confidential Company Information to anyone
         outside of the Company or its subsidiaries and affiliates, except with
         the Company's express written consent and except for Confidential
         Company Information that (1) is at the time of receipt or thereafter
         becomes publicly known through no wrongful act of the Employee, (2) is
         received from a third party not under an obligation to keep such
         information confidential and without breach of this Agreement or (3)
         was previously known by the Employee before being employed by the
         Company.

                   (c) During the Restricted Period, the Employee shall not,
         without the Company's prior written consent, directly or indirectly,
         knowingly solicit, recruit or encourage to leave the employment of the
         Company or its subsidiaries or affiliates, any employee of the Company,
         such subsidiaries or affiliates, or hire any employee who has left the
         employment of the Company, its subsidiaries or affiliates after the

                                       11
<PAGE>   12

         effective date of this Agreement within one year of the termination of
         such employee's employment with the Company, its subsidiaries or
         affiliates.

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

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

                                       12
<PAGE>   13

         (ii) in the aggregate during either of the following periods: (1) the
         twelve (12) most recently completed calendar months prior to the
         Employee's involvement with such business or (2) the Restricted Period.

                   (f) For purposes hereof, "Retail Closeout Business" shall
         mean any retail business (i) fifty percent (50%) or more of the
         inventory of which, in the aggregate, is acquired through purchase of
         (A) overstocks, (B) closeouts, (C) items liquidated by a manufacturer
         or by a retail store, (D) merchandise available in connection with
         bankruptcies or other distress situations, (E) merchandise at below
         regular price primarily as a result of the production of the
         merchandise occurring during periods in which the production facilities
         otherwise would be idle or would have underutilized capacity or (F)
         buybacks made by a manufacturer of a competitor's or its own
         merchandise, and (ii) which owns or operates a location within a ten
         (10) mile radius of any location owned or operated by the Company or
         its subsidiaries or other affiliates; provided that in no event shall
         the business of operating discount stores, specialty stores or
         deep-discount drug store businesses be considered to be a Retail
         Closeout Business at any particular time unless (A) the Company is
         engaged in such business at such time or (B) the business is part of an
         operation which, taking into account such business and the other
         aspects of the operation in the aggregate, is a Retail Closeout
         Business as a result of purchases of merchandise described in clauses
         (i) (A) through (i) (F).

                  6.2 RIGHTS AND REMEDIES UPON BREACH. If the Employee breaches,
or threatens to commit a breach of, any of the provisions of Section 6.1 (the
"RESTRICTIVE

                                       13
<PAGE>   14

COVENANTS"), the Company shall have the following rights and remedies (upon
compliance with any necessary prerequisites imposed by law upon the availability
of such remedies), each of which rights and remedies shall be independent of the
other and severally enforceable, and all of which rights and remedies shall be
in addition to, and not in lieu of any other rights and remedies available to
the Company under law or in equity:

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

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

         7.       OTHER TERMINATION.

                  7.1 EARLY TERMINATION. In addition to its right to terminate
this Agreement for "Cause" under Section 5 hereof, the Company may terminate
this Agreement at any time

                                       14
<PAGE>   15

for any reason other than "Cause", or Employee may terminate his employment for
"Good Reason". In either event, the Company shall pay the Employee, in an
immediate lump-sum payment, less applicable taxes, an amount equal to one times
his current Annual Salary. Employee shall also be entitled to receive a pro-rata
portion of the bonus for the year of termination, to be determined in accordance
with Section 3.2 and paid at the same time payment is made to other Company
executives. Employee's pro rata portion shall be equal to (A) a fraction the
numerator of which is the number of full weeks during the fiscal year worked by
Employee and the denominator of which is 52 MULTIPLIED by (B) the bonus the
Employee would have received had he remained with the Company through fiscal
year end. Notwithstanding the foregoing, in the event the termination occurs
after a "Change-in- Control", Employee shall be entitled, in lieu of the pro
rata bonus payment, an amount equal to his annual bonus had the Target Amount
been achieved; such payment shall be made at the time of termination. Employee
shall also be entitled to receive all benefits, including life insurance,
payable under this Agreement for the duration of such twelve (12) months.

                  7.2 DEFINITIONS. (A)"CHANGE IN CONTROL" means the occurrence
during the Term of any of the following events:

                  (i)      the Company merges into itself, or merged or
                           consolidated with, another entity and as a result of
                           such merger or consolidation less than 51% of the
                           voting power of the then-outstanding voting
                           securities of the surviving or resulting entity
                           immediately after such transaction are

                                       15
<PAGE>   16

                           directly or indirectly beneficially owned in the
                           aggregate by the former shareholders of the Company
                           immediately prior to such transaction.

                  (ii)     A person or group acting in concert within the
                           meaning of Section 3(a)(9) or 13(3)(3) (as in effect
                           on the date of this Agreement) of the Securities
                           Exchange Act of 1934, becomes the beneficial owner
                           (as defined in Rule 13d-3) of 50% or more of the
                           voting power of the then outstanding voting
                           securities of the Company without prior approval of
                           the Company's Board of Directors.

         (B)      For purposes of this Agreement, "Good Reason" means

                  (i)      a material adverse change in the natur or scope of
                           the authorities, powers, functions, responsibilities
                           or duties attached to the position with the Company
                           which the Employee holds under this Agreement
                           (including but not limited to assignment by the
                           Company to the Employee of duties inconsistent with
                           his current positions, duties, responsibilities, and
                           status with the Company or a change of his reporting
                           responsibilities or titles currently in effect)
                           without the prior written consent of the Employee,
                           which is not remedied within ten (10) calendar days
                           after receipt by the Company of written notice from
                           the Employee of such change; or

                  (ii)     the Company fails to make any payment due Employee or
                           to provide him with the benefits set forth under this
                           Agreement and such failure

                                       16
<PAGE>   17

                           is not remedied within ten (10) calendar days after
                           written notice to the Company from Employee of such
                           default.

                                       17
<PAGE>   18

         8.       OTHER PROVISIONS.

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

                  8.2 BLUE-PENCILLING. If any court determines that any of the
covenants contained in this Agreement, including, without limitation, any of the
Restrictive Covenants, or any part thereof, is unenforceable because of the
duration or geographical scope of such provision, 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.

                  8.3 ENFORCEABILITY; JURISDICTIONS. The Company and the
Employee intend to and hereby confer jurisdiction to enforce the Restrictive
Covenants upon the courts of any jurisdiction within the geographical scope of
the Restrictive Covenants. If the courts of any one or more of such jurisdiction
hold the Restrictive Covenants wholly unenforceable by reason of breadth of
scope or otherwise, it is the intention of the Company and the Employee that
such determination not bar or in any way affect the Company's right to the
relief provided above in the courts of any other jurisdiction within the
geographical scope of such

                                       18
<PAGE>   19

Restrictive Covenants, as to breaches of such Restrictive Covenants in such
other respective jurisdictions, such Restrictive Covenants as they relate to
each jurisdictions being, for this purpose, severable, diverse and independent
covenants, subject, where appropriate, to the doctrine of res judicata.

                  8.4 DIRECTORS & OFFICERS INSURANCE. During the Term, the
Employee shall be covered by the Company's directors' and officers' insurance
policy to the same extent as other officers and directors. Further, for six
years following the Term, the Company, to the extent it retains in effect
directors' and officers' liability insurance, shall maintain for Employee
coverage for acts or omissions occurring prior to the termination of his
employment.

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

                        (i)       If to the Company, to:

                                  Mazel Stores, Inc.
                                  31200 Aurora Road
                                  Solon, Ohio 44139
                                  Attention: President

                                       19
<PAGE>   20

                         with a copy to:

                                  Robert Horne,
                                  Chairman, Compensation Committee
                                  c/o ZS Fund L.P.
                                  120 West 45th Street, Suite 2600
                                  New York, New York 10036

                         with a copy to:

                                  Marc H. Morgenstern, Esq.
                                  Kahn, Kleinman, Yanowitz & Arnson Co., L.P.A.
                                  The Tower at Erieview, Suite 2600
                                  1301 East Ninth Street
                                  Cleveland, Ohio 44114-1824

                         (ii)     If to the Employee to:

                                  Peter J. Hayes
                                  ------------------------
                                  ------------------------

                         with a copy to:

                                  Roger Siske, Esq.
                                  Sonnenschein, Nath & Rosenthal
                                  8000 Sears Tower
                                  Chicago, Illinois 60606

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

                  8.6 ENTIRE AGREEMENT. This Agreement contains the entire
agreement between the parties with respect to the subject matter hereof and
supersedes all prior agreements, written or oral, with respect thereto, which
shall become null and void and of no further force and effect on the Effective
Date.

                                       20
<PAGE>   21

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

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

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

                  8.10     INDEMNIFICATION.

                  (a) The Employee represents and warrants to the Company that
         the Employee's execution, delivery and performance of this Agreement
         does not and will

                                       21
<PAGE>   22

         not violate, conflict with or constitute a default (with notice or
         lapse of time or both) under any written agreement or instrument to
         which the Employee is a party.

                  (b) Subject to the provisions of this Section 8.10, to the
         fullest extent permitted by law, the Company shall indemnify the
         Employee if he is a party or is threatened to be made a party to any
         legal proceeding (other than a legal proceeding against the Employee by
         the Company) (a "Proceeding"), threatened or pending, whether civil,
         criminal, administrative or investigative, by reason of his service to
         the Company as a director, officer, trustee, employee or agent, or
         service at the written request of the Company as a director, officer,
         trustee, employee or agent of another corporation, partnership, joint
         venture, trust or enterprise, against the Employee's reasonable
         attorneys' fees and disbursements, reasonable out-of-pocket travel
         expenses to and from the forum of the Proceeding and judgments, fines
         and amounts paid in settlement in connection with the Proceeding. Such
         attorneys' fees and expenses shall be paid by the Company as they are
         incurred upon receipt, in each case, of an undertaking by the Employee
         to repay such amounts if it is ultimately determined, as provided
         below, that the Employee is not entitled to indemnification hereunder.
         The Employee shall not settle any Proceeding without the prior written
         consent of the Company unless, as a condition thereof, the Company
         receives a full and unconditional release of all liability in respect
         of the Proceeding. The Employee shall provide the Company with prompt
         written notice of any Proceeding in respect of which he is entitled to
         indemnification hereunder, provided that the Employee shall

                                       22
<PAGE>   23

         not lose his rights to indemnification hereunder for failure to give
         such notice unless the Company is prejudiced by such failure.

                  (c) The indemnification provided for in Section 8.10(b) (i)
         shall apply in all cases except where the Employee did not act or
         failed to act in good faith and in a manner he reasonably believed to
         be in or not opposed to the best interests of the Company or where the
         Employee's action or failure to act constituted gross negligence or
         willful misconduct, or, with respect to any criminal action or
         proceeding, where he did not have reasonable cause to believe his
         conduct was lawful (collectively, the "Standard of Care") and (ii) may
         be denied by the Company only if a court of competent jurisdiction
         determines that the Employee did not meet the Standard of Care.

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

                  (e) The provisions of this Section 8.10 shall not be deemed to
         be exclusive of any other rights to which the Employee may be entitled
         under applicable law or any other written agreement between the Company
         and the Employee.

                  8.11 BINDING EFFECT. This Agreement shall be binding upon and
inure to the benefit of the parties and their respective successors, permitted
assigns, heirs, executors and legal representatives.

                  8.12 COUNTERPARTS. This Agreement may be executed by the
parties hereto in separate counterparts, each of which when so executed and
delivered shall be an original

                                       23
<PAGE>   24

but all such counterparts together shall constitute one and the same instrument.
Each counterpart may consist of two copies hereof each signed by one of the
parties thereto.

                  8.13 SURVIVAL. Anything contained in this Agreement to the
contrary notwithstanding, the provisions of Sections 6.1, 6.2 and 8.10 shall
survive termination of this Agreement.

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

                  8.15 INTEREST; FEES AND EXPENSES. In the event the Company
fails to make any payment due Employee, such defaulted amount shall bear
interest, from the date due until payment is made, at a rate equal to the
Company's borrowing rate under its principal revolving credit facility. Each
party shall bear and be responsible for its own fees and
expenses, including counsel fees, incurred in connection with the preparation,
negotiation sand execution of this Agreement.

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

                                 MAZEL STORES, INC.

                                 By: /s/ Robert A. Horne
                                     Chairman of the Compensation Committee
                                     Board of Directors

                                 /s/ Peter Hayes
                                 ----------------
                                 PETER HAYES

                                       24CONSULTING AGREEMENT

         This  Consulting  Agreement  ("Agreement")  is entered  into as of this
__01__day  of April  2000  (the  "Effective  Date")  by  Argo,  Inc.  a  Israeli
corporation having its principal place of business at 2 Zipory Street,  Tiberia,
P. O. Box 1560, Israel tel no 972 6 6716040 ("Argo"or Client") and EvoTech, Inc.
("EvoTech" or "Consultant").

                              W I T N E S S E T H :

         WHEREAS,  Argo,  as the  Client,  desires  to  engage  EvoTech,  as the
Consultant,  to  provide  it with  advice  in  connection  with  the  commercial
evaluation and exploitation of intellectual property; and

         WHEREAS, EvoTech desires to provide such services to Argo.

                           N O W , T H E R E F O R E ,

         In consideration of the mutual promises and considerations set forth in
this document, the Parties agree as follows:

1.  Services to be Provided by the Consultant; Duties.
         (a) On an  on-going  basis,  and  as  the  Client  shall  request,  the
Consultant
                  (i) shall  provide  advice with  respect to matters  involving
intellectual  property,  including  advice with  respect to the  feasibility  of
inventions and the commercial exploitation thereof; and, in addition,
                  (ii)  the Consultant shall build prototype devices.
         (b) The  Consultant  shall provide  business and technical  development
services to the Client regarding technical, marketing,  manufacturing and advice
as  specified  in a Service  Order from time to time  submitted  by the Firm and
accepted in writing by both Client and Firm.  Each  Service  Order shall be in a
form similar to the one attached as Exhibit A. Any accepted Service Order may be
amended or  superseded  by any new Service Order only in writing by both Parties
which  expressly  provides that it amends or  supersedes a prior Service  Order.
Each and all accepted Service Order shall constitute a part of this Agreement.
         (c) Without the prior  permission of the Client,  the Consultant  shall
not communicate with third parties concerning matters as to which the Client has
engaged the Consultant to perform consulting services.
         (d) The Consultant  will perform the services with  reasonable care and
professional skill.
         (e) However,  the Consultant  does not warrant the  merchantability  or
fitness for use or purpose of the work performed.

    Liability of the Parties to Each Other; Indemnification.
         (a)  Neither  Party  shall  be  liable  to the  other  for any  acts or
omissions in their performance  hereunder except when said acts or omissions are
due to willful  misconduct or gross  negligence;  provided,  however,  that with
respect to claims by  third-parties  against either or both of the Client and of
the Consultant,
                  (i) the Client  shall hold the  Consultant  free and  harmless
from any obligations,  costs, claims, judgments, attorney's fees and attachments
arising from or growing out of the services  rendered by the Client  pursuant to
the terms of this Agreement; and
                  (ii) the  Consultant  shall hold the Client free and  harmless
from any obligations,  costs, claims, judgments, attorney's fees and attachments
arising from or growing out of the services rendered by the Consultant  pursuant
to the terms of this Agreement.

<PAGE>

2.  Fees to be Paid to the Consultant by the Client; Retainer;  Hourly Expenses;
Objections; Commissions.
         (a)  The  Client  shall  pay a  reasonable  fee for  services  actually
performed  for the  Client by the  Consultant.  That fee will be  determined  by
multiplying  the number of hours spent  working on the  Client's  matters by the
billing  rate.  Time  shall be  billed  in  increments  of 1/4 of an  hour.  The
Consultant's hourly billing rate is:
                  (i)   $350.00/hr. for Executive managers/consultants;
                  (ii)  $250.00/hr. for Senior managers/consultants;
                  (iii) $175.00/hr. for Project managers;
                  (iv)  $150.00/hr. for Senior engineers;
                  (v)   $125.00/hr. General engineers; and
                  (vi)  $90.00/hr/ for technical and engineering support.
         (b)  Outsource  Consultants  shall  be  billed  at cost  plus  10%.  If
performed by the  Consultant,  Governmental  and regulatory work will have a 50%
surcharge.  If performed by an Outsource  Consultant,  the fee shall remain that
Consultant's cost, plus 10%, as set forth above.
         (c) The foregoing rates and fees rates may not be increased  without at
least thirty (30) days prior written notice and the  opportunity  for the Client
to terminate this Agreement.
         (d) The  Consultant's fee shall be calculated by multiplying the number
of hours devoted to the Client's matter(s) (including fractions of hours) by the
then current  hourly rate.  As used herein,  the term "Number of Hours  Devoted"
shall mean any time  spent by the Firm in dealing  with any aspect of the matter
for which the  Client has  retained  the Firm  including,  but not  limited  to,
consulting  with the Client (in person or by  telephone),  investigating  facts,
conducting  research,  preparing  correspondence,   documents,  interviewing  or
negotiating  with  others  (in  person  or  by  telephone),  preparing  for  and
conducting meetings and interviews, and traveling.
         (e) In the event that the Client has any objection whatsoever to any of
the fees for services rendered or the costs and disbursements  which are billed,
it is the Client's obligation to object in writing thereto within seven (7) days
of receipt of such invoices or  statements.  Failure of the Client to timely set
forth any such  disagreement  or objection  to any fee for services  rendered or
costs incurred shall be considered to be a waiver of any such objections.
         (f) The Consultant  shall be solely  responsible for the payment of all
federal,  state,  and local taxes or  contributions  imposed or  required  under
unemployment insurance,  social security and income tax laws that pertain to the
compensation  paid to Consultant for its performance of Services under Section 1
of this Agreement.

3.  Estimates.
         While an estimate or indication of the amount of fees which will likely
be incurred in any  particular  project may be provided from time to time,  such
estimates  are not  guaranteed  amounts,  but  rather  are  meant  to  serve  as
guidelines only.  Numerous factors on any project may affect those estimates and
require  that  they be  revised.  If at any time an  estimate  for a  particular
project has been given to the Client,  and it becomes  apparent  that the actual
hours  required  for the project will  significantly  exceed the  estimate,  the
Client  will be  informed  of that fact and the Client may elect to  discontinue
further  action.  The Client  may,  at any time,  request a written  estimate of
projected  consulting fees and costs associated with particular  requirements or
actions to be undertaken by the Firm

4.  Expenses.
         (a) The Client agrees to reimburse the Consultant  for actual  expenses
incurred in the course of activities  undertaken by the  Consultant  pursuant to
Section 1 of this Agreement. These expenses shall include, but not be limited to
travel, shipping, communications, presentation materials and production charges,
as  well  as such  miscellaneous  out-of-pocket  disbursements,  such  costs  as
photocopying,  filing fees, facsimile charges,  electronic mail charges,  travel
expenses,  computer research charges,  telephone charges, postage, express mail,
courier, and other expenses.
         (b) The Consultant will not commit to nor incur any expense for any one
Service Order in excess of $1,000.00 without the prior approval of the Client.
         (c) Within 10 days  following  the end of each  month,  the  Consultant
shall provide the Client with itemized expense reports  describing the nature of
the expense and the project or contact for which the expense was incurred.
         (d) Within 20 days  following  the receipt of the expense  report,  the
Client shall reimburse the Consultant for it expense, subject to the limitations
set forth above.

<PAGE>

5.  Duties of Client.
         The Client  shall  cooperate  with the  Consultant  in whatever  way is
reasonably  necessary for the  Consultant  to provide the services  contemplated
hereunder  and shall  participate  with the  Consultant  in the  handling of the
Clients' matters.  Without limiting the foregoing,  the Client agrees to respond
with  reasonable  promptness  to  telephone  calls  and other  inquiries  by the
Consultant, review documents and correspondence,  regularly communicate with the
Consultant  about the  matter  in  general,  including  but not  limited  to any
suggestions,  questions  or  concerns  that the Client has.  The Client  further
covenants to provide all relevant  information  and  documentation  available to
Client and  requested by the  Consultant  and  necessary  for the  Consultant to
handle the matter, and the Client  acknowledges that failure to do so may result
in an outcome that is less favorable than would otherwise be attainable.

6.  Inventions; Works for Hire.
         The Client  and the  Consultant  acknowledge  that in the course of the
Consultant's  employment  by the Client,  the  Consultant  may from time to time
create  inventions,  programs,  program  modifications,  documentation and other
writings  or  works,   including,   without  limitation,   manuals,   pamphlets,
instructional  materials and other writings or works,  including,  codes, files,
tapes, or other copyrightable material, or portions thereof, that may be created
within or without the Client's  facilities and before,  during,  or after normal
business  hours.  All such works  authored,  written,  conceived,  originated or
discovered  in whole or in part by the  Consultant  which  result  from any work
performed  for the Client or related to or useful in the  business are and shall
be exclusive property of the Client, and the Consultant shall cooperate with the
Client in the  protection of all of the Client's  intellectual  property  rights
thereto,  and,  to the extent  deemed  desirable  by the  Client,  the filing or
registration of any patents or copyrights.  Accordingly,  the Consultant  hereby
assigns to the Client all of the Consultant's  right,  title and interest in and
to any and all inventions,  processes,  systems,  and creations,  whether or not
patentable or copyrightable,  that the Consultant may conceive, develop, create,
or assist in whole or in part,  during its engagement by the Client,  whether or
not during  normal  working  hours.  The  Consultant  shall sign and deliver all
documents relative to said inventions requested by the Client for the purpose of
confirming the Client's title thereto.

7.  Confidential Information.
         (a)  In  connection  with  the  Consultant's   performance  under  this
Agreement,  it may be  necessary  for  the  Parties  to  disclose  "Confidential
Information"  (as the term is defined  below) or trade  secrets  (as the term is
commonly   understood  to  mean)  to  each  other.  The  Party  disclosing  such
information  (the  "Disclosing  Party") to the Party receiving such  information
(the "Receiving Party") agrees to identify,in  writing,  such information to the
Receiving Party as confidential upon delivery of such  Confidential  Information
or trade  secrets.  Without  the  prior  written  consent  of the  other  Party,
Confidential Information or trade secrets shall not be disclosed by either Party
to anyone else or used in any way except in  fulfillment  of the  objectives  of
this Agreement; provided, however, that
                  (i) the  obligations  of both  Parties  as  specified  in this
Section  _________ shall not apply to either Party, and neither Party shall have
further obligation to the other, with respect to any Confidential Information or
trade secret which the Receiving Party can demonstrate:
                           (A) was in the Receiving Party's  possession prior to
the time of disclosure by the Disclosing Party; or
                           (B)  was  in  the  public   domain  at  the  time  of
disclosure, or subsequently became part of the public domain through no fault to
the Receiving Party; or
                           (C) was legally  received  from a third party who was
not subject to a  confidentiality  obligation to the Disclosing  Party regarding
the Confidential  Information and who was otherwise legally in possession of the
information; or
                           (D)  was  independently  developed  by the  Receiving
Party  without  the  use  of  the  Confidential  Information  disclosed  by  the
Disclosing Party; or
                           (E)  is  sought   to   disclosed   pursuant   to  the
requirement of a governmental  agency or any law requiring  disclosure  thereof,
provided that the  Disclosing  Party is given prior  written  notice of any such
required  or  demanded   disclosure  and  the  opportunity  to  object  to  such
disclosure; or
                           (F) is generally  disclosed  to third  parties by the
Disclosing Party without similar restriction to such third parties; or
                           (G)  is  approved  for  general  release  by  written
authorization of theDisclosing Party.
         (b) This Section shall be effective  during the term hereof and for two
(2) years after  termination of this Agreement for whatever reason and under any
circumstances.

<PAGE>

         (c) As used in this Section,  or elsewhere in this Agreement,  the term
"Confidential  Information" shall mean and include:  All information or material
regarding the Client's business that has or could have commercial value or other
utility to another person or entity, or information  which, if disclosed without
authorization,  could be detrimental  to the business of the Client,  including,
but not limited to, the Client's  business plans,  marketing  plans,  methods of
operations, products, software programs, documentations of programs, programming
procedures,   algorithms,  formulas,  equipment  and  techniques,  existing  and
contemplated  services,  inventions,  systems,  devices (where or not patented),
financial information's and practices, plans, pricing, and marketing techniques,
proposals or bids for actual or potential customer,  names,  addresses and phone
numbers of the Client's Customers,  credit information and financial data of the
Client's and the Client's  Customers,  particular  business  requirements of the
Client's  Customers,  and special  methods and processes  involved in designing,
producing,  and selling the Client's products and services,  all shall be deemed
Confidential  Information and trade secrets and the Client's exclusive property;
provided,  however, that Confidential  Information shall not include information
that has  entered  the public  domain  other  than  through  the  actions of the
Consultant.

8.  Consultant's Ownership of its own Background Technology.
         The Client  acknowledges that the Consultant owns or holds a license to
use  and  sublicense  various  preexisting   technologies,   development  tools,
routines, subroutines and other programs, data and materials that the Consultant
is not intending to include in the product developed under this Agreement.  This
material  shall  be  referred  to  hereafter  as  "Background  Technology".  The
Consultant's  Background Technology includes those items identified in Exhibit A
attached hereto,  and made a part of this Agreement.  The Consultant retains any
and all rights in the Background Technology. Should the Background Technology be
included into Clients products, a separate agreement will be negotiated.

9.  Duration of this Agreement; Termination; Payment for Fees and Costs incurred
prior to Termination.
         (a)  This  Agreement  shall  expire  on the  third  anniversary  of the
Effective  Date;  subject,  however,  to the Client's  right to terminate as set
forth in this contract.
         (b) Either Party shall have the right to terminate  this Agreement upon
thirty (30) days written notice.
         (d) The Client's  obligation to pay and reimburse  the  Consultant  for
services   already   performed  and  expenses  already  incurred  prior  to  the
termination or expiration of this Agreement and the obligation upon the relevant
parties  to pay  royalties  under  Sections  2(f)  of  this  Agreement  and  the
performances  related  thereto under section 4.5,  shall survive  termination or
expiration of this Agreement

10. Default; Cure.
         If,  during the term of this  Agreement,  either Party fails to perform
any of its obligations under this Agreement,  the non-defaulting  Party may give
written notice of the default to the defaulting  Party. If the defaulting  party
fails to cure its default within thirty (30) days following receipt of notice of
default, the non-defaulting party may terminate this Agreement.

11. Return of the Client's Records and Property.
         Whether  termination of this Agreement shall occur by the expiration of
the  agreed  upon  period  of  time,  or  otherwise,  within  15 days  following
termination,  the Client shall notify the Consultant that it (the Client) wishes
the  Consultant  to  return  any  records  or  property  of  the  Client  in the
possession,  custody,  or control of the Consultant.  Such notice shall identify
which of the Client's  property is to be returned and shall specify the location
to which it is to be returned.  Within 10 days after  receiving  such a request,
the Consultant shall return the Client's property,  in the same condition it was
when it was delivered to the Consultant,  normal wear and tear excepted.  If the
Client does not send the aforesaid notice of demand of return of property within
said 15 day period, the Consultant shall be entitled to destroy such records and
property,  and the  Client  shall  waive  any and all  claims  relating  to such
destruction.

12. Law Governing.
         This Agreement shall be deemed to have been entered into under the Laws
of the  State  of New  York,  and the  rights  and  obligations  of the  parties
hereunder  shall be governed  and  determined  according to the Laws of New York
without regard to applicable conflicts of laws.

<PAGE>

13. Resolution of Disputes; Arbitration.

         All  disputes  concerning  this  Agreement or any claim or issue of any
nature (whether brought by the Parties hereto or by any other person whatsoever)
arising  from or  relating to this  Agreement  (including,  without  limitation,
claims for alleged fraud,  breach of fiduciary duty,  breach of contract,  tort,
etc.) which  cannot be  resolved  within  reasonable  time  through  discussions
between the opposing entities, shall be resolved solely and exclusively by means
of arbitration to be conducted in Kings County, New York, which arbitration will
proceed in accordance with the rules of the American Arbitration Association (or
any successor  organization  thereto) then in force for resolution of commercial
disputes.
         The  Arbitrators  themselves  shall have the right to determine  and to
arbitrate  the  threshold  issue of  arbitrability  itself,  the decision of the
Arbitrators shall be final, conclusive,  and binding upon the opposing entities,
and a judgment  upon the award may be  obtained  and  entered in any  federal or
state court of competent jurisdiction.
         Each entity or Party  involved in  litigation or  arbitration  shall be
responsible  for its own costs and  expenses of any  litigation  or  arbitration
proceeding, including its own attorney's fees (for any litigation,  arbitration,
and any appeals).

                           THE  PARTIES  EACH  UNDERSTAND  THAT BY  AGREEING  TO
                  BINDING ARBITRATION,  BOTH PARTIES ELECT TO WAIVE THE JUDICIAL
                  PROCESS,  INCLUDING BUT NOT LIMITED TO THE RIGHT TO A TRIAL BY
                  JURY, THE RIGHT TO DISCOVERY,  THE RIGHT TO AN APPEAL, AND THE
                  OTHER  JUDICIAL  RULES OF PROCEDURE AND EVIDENCE.  INSTEAD THE
                  PARTIES WILL BE BOUND BY THE DECISION OF THE ARBITRATOR  WHOSE
                  DECISION, AFTER AN INFORMAL HEARING INVOLVING NO DISCOVERY AND
                  MUCH LESS FORMAL RULES OF PROCEDURE AND EVIDENCE, IS FINAL AND
                  BINDING.  BECAUSE ARBITRATION IS SIGNIFICANTLY  DIFFERENT FROM
                  THE JUDICIAL  PROCESS AND BECAUSE THE PARTIES GIVE UP A NUMBER
                  OF RIGHTS IN  AGREEING TO UTILIZE  ARBITRATION  INSTEAD OF THE
                  JUDICIAL  PROCESS,  EACH  PARTY  SHOULD  SEEK THE ADVICE OF AN
                  INDEPENDENT ATTORNEY INCLUDING BUT NOT LIMITED TO, ADVANTAGES,
                  DISADVANTAGES  AND  DIFFERENCES  BETWEEN  ARBITRATION  AND THE
                  JUDICIAL PROCESS BEFORE SIGNING.

14. Notice.
         (a) Any notice, request,  instruction or other document required by the
terms of this  Agreement  to be  given to any  other  Party  hereto  shall be in
writing and shall be given either:
                  (i) by facsimile  transmission  to the facsimile  number given
below, provided that confirmation of successful receipt thereof by the receiving
Party is recorded  on the  sending  Party's  transmission  confirmation  receipt
simultaneously  with the completion of transmission,  in which case notice shall
be presumptively deemed to have been given at the date and time displayed on the
sending Party's transmission confirmation receipt showing the successful receipt
thereof by the receiving Party;
                  (ii) by a nationally  recognized  overnight courier service in
which the date of delivery is  recorded  by the courier  service,  in which case
notice shall be presumptively deemed to have been given at the time that records
of the courier  service  indicate  the writing was  delivered  to the  receiving
Party; or
                  (iii) by  prepaid  telegram,  in which  case  notice  shall be
presumptively  deemed to have been  given at the time  that the  records  of the
telegraphic agency indicate that the telegram was telephoned or delivered to the
receiving Party, as the case may be; or

<PAGE>

         (b) Notice shall be sent
                  (i)      If to the Client, to:

                           ZVI NACHUM
                           _________________________, President
                           Argo, Inc
                           2 Zipory Street,
                           P. O.  Box 1560
                           Israel
                           Telephone Number: 972 6 6716040
                           Facsimile Telephone Number, 972-6-6723290

                  (ii)     If to the Consultant, to:

                           Bosilio Chen
                           _________________________, President
                           EvoTech
                           Telephone Number: (650)6973861
                           Facsimile Telephone Number (650)8784705

                  (iii) or to such other  address as a Party may have  specified
in writing to the other Parties  using the  procedures  specified  above in this
Section.

_______. Potential Conflicts of Interest.
         The Client acknowledges and agrees that the Consultant  presently does,
and may in the  future,  work for or  consult  for other  persons  with whom the
Client does business,  contracts or competes.  Nothing herein shall be construed
as prohibiting or preventing the Consultant  from  continuing or commencing such
work for such persons,  provided that the  Consultant  takes  adequate  steps to
ensure that  confidential  information of the Client is not divulged or revealed
to such other persons.

15. Force Majeure.
         (a)  Neither  Party  hereto  shall  be  liable  for any  breach  of its
obligation  hereunder  resulting  from  causes  beyond  its  reasonable  control
including  but not  limited to fire,  strikes  (excluding  their own  employees)
insurrection or riots, embargoes, wrecks or delays in transportation,  inability
to obtain  supplies and raw  materials,  or  regulation of any civil or military
authority.
         (b) Each of the Parties  hereto agrees to give notice  forthwith to the
other upon  becoming  aware of an event of Force  Majeure such notice to contain
details of the circumstances giving rise to the Force Majeure.

_______. Relationship of the Parties.
         (a) This Agreement does not constitute  either Party as the legal agent
or  representative  of the  other  and does not  create  any  joint  venture  or
partnership  relationship;  both parties are now acting and will continue to act
as individual parties with respect to this Agreement.
         (b) Neither  Party is granted the right or  responsibility  to make any
representation,  guarantee or warranty, or to create any obligation, contract or
undertaking  on behalf of the other,  except as  specifically  set forth in this
Agreement  or  an  other  Agreement  entered  into  between  the  Parties  or as
subsequently authorized in writing by either Party.

_______. Assignment.
         The Parties are prohibited by this  Agreement from assigning  under any
circumstances,   in  whole  or  in  part,  to  any  person,  partnership,  firm,
corporation  or government  agency or entity,  their rights under this Agreement
without first obtaining written permission from the other Party.

_______. Government Regulation.
         In performing their obligations under this Agreement, the Parties agree
to comply with the  provisions  of  applicable  federal,  state,  local or other
statues, rules, regulations, ordinances and orders. The Parties further agree to
assist  each other to comply  with such  applicable  laws with regard to matters
within the scope of this Agreement.

<PAGE>

_______. Waiver.
         The  failure  of  either  Party  to  enforce  at  any  time  any of the
provisions  of this  Agreement  shall in no way be  construed to be a present or
future  waiver of such  provisions,  nor in any way  affect  the right of either
Party to enforce each and every provision thereafter.

_______. Validity of Provisions.
         If any provision(s) of this Agreement are or become invalid,  are ruled
illegal by any tribunal of competent  jurisdiction  or are deemed  unenforceable
under then current  applicable  law from time to time in effect  during the term
hereof,  it is the intention of the Parties that the remainder of this Agreement
shall not be affected  thereby.  It is further the intention of the Parties that
in lieu of each such invalid,  illegal, or unenforceable provision,  there shall
be  substituted or added as part of this Agreement a provision as was originally
intended by the Parties, but which shall be valid, legal and enforceable.

_______. Integration.
         This Agreement,  and the Exhibits and Schedules hereto,  constitute the
entire Agreement  between the Parties related to its subject matter and can only
be subsequently altered or modified by a written instrument which is executed by
both of the parties.  This  Agreement  cancels and  supersedes any and all prior
agreements,  written or oral, between the Parties relating to the subject matter
of this Agreement.

_______. Headings.
         Headings and captions are provided for  convenient  reference  only and
shall  not  affect  the  meaning  or  interpretation  of any  provision  of this
Agreement.

         IN WITNESS  WHEREOF,  the parties have executed this Agreement by their
duly authorized representatives.

                                            The Client:

                                            ARGO, INC.

                                            By:_________________________________
                                                    _________________, President

                                            The Consultant

                                            EVOTECH

                                            By:_________________________________
                                                    _________________, President

                                            Attest:_____________________________
                                                    _________________, Secretary

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00026-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00026-of-00352.parquet"}]]