Document:

EXHIBIT 10.2
                                                CHANGE OF CONTROL AGREEMENT

                              AMENDED AND RESTATED

                     CHANGE OF CONTROL EMPLOYMENT AGREEMENT

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                               Table of Contents

                                                                        Page
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1.       Employment Period...............................................1

2.       Terms of Employment.............................................2
   (a)   Position and Duties.............................................2
   (b)   Compensation....................................................2
         (i)      Base Salary............................................2
         (ii)     Annual Bonus...........................................3
         (iii)    Qualified Plans........................................3
         (iv)     Welfare Benefit Plans..................................3
         (v)      Expenses...............................................4
         (vi)     Fringe Benefits and Perquisites........................4
         (vii)    Office and Support Staff...............................4
         (viii)   Vacation...............................................4
         (ix)     Equity and Performance Based Awards....................4

3.       Termination of Employment.......................................5
   (a)   Death or Disability.............................................5
   (b)   Cause...........................................................5
   (c)   Good Reason; Window Period......................................5
   (d)   Notice of Termination...........................................6
   (e)   Date of Termination.............................................6

4.       Obligations of the Company Upon Termination.....................7
   (a)   Good Reason or During a Window Period; Other than for Cause,
            Death or Disability .........................................7
   (b)   Death...........................................................9
   (c)   Disability.....................................................10
   (d)   Cause; Other than for Good Reason or During a Window Period....10

5.       Non-exclusivity of Rights......................................11

6.       Full Settlement; Resolution of Disputes........................11

7.       Certain Additional Payments by the Company.....................12

8.       Confidential Information; Certain Prohibited Activities........14

9.       Change of Control; Potential Change of Control.................15

10.      Successors.....................................................20

11.      Miscellaneous..................................................20

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                              AMENDED AND RESTATED
                     CHANGE OF CONTROL EMPLOYMENT AGREEMENT

          This AMENDED AND RESTATED CHANGE OF CONTROL EMPLOYMENT  AGREEMENT (the
"Agreement") by and between Lennox  International  Inc., a Delaware  corporation
(the "Company"),  and _____________________  (the "Executive"),  dated as of the
31st day of July,  2000, to be effective as of the Agreement  Effective Date (as
defined in Section 11(h) hereof).

         The Board of Directors of the Company (the "Board") has determined that
it is in the best interests of the Company and its  shareholders to assure that,
in the event of a Change of Control or Potential Change of Control (in each case
as defined in Section 9 hereof), the Company will have the continued services of
the Executive and the Executive will be provided with  compensation and benefits
arrangements  that  meet  his   expectations.   In  order  to  accomplish  these
objectives,  the Board  caused  the  Company  to enter  into a Change of Control
Employment  Agreement,  dated as of April 23, 1999 (the  "Original  Agreement"),
with the Executive.  The Company and the Executive wish to amend and restate the
Original  Agreement as provided in this  Agreement.  It is  understood  that the
Executive has an existing employment  agreement (the "Existing  Agreement") with
the  Company.  This  Agreement  is intended to provide  certain  protections  to
Executive  that are not afforded by the Existing  Agreement.  This  Agreement is
not,  however,  intended  to  provide  benefits  that  are  duplicative  of  the
Executive's  current  benefits.  To the  extent  that  this  Agreement  provides
benefits of the same types as those provided under the Existing  Agreement,  the
Company  shall  provide  the  better of the  benefits  in each case  during  the
Employment  Period.  If  Executive  remains  employed  by  the  Company  at  the
conclusion of an Employment  Period,  the Existing  Agreement  shall continue in
effect in accordance with its terms  thereafter,  except that  Executive's  Base
Salary for purposes of the Existing  Agreement shall be equal to the Executive's
Annual Base Salary under this  Agreement  at the  conclusion  of the  Employment
Period.

          NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

     1.   EMPLOYMENT  PERIOD.

          Upon a Change of Control or Potential Change  of  Control, the Company
hereby  agrees  to  continue  the  Executive  in  its employ,  and the Executive
hereby agrees to remain in the employ of the Company,  in accordance  with,  and
subject  to, the terms and  provisions  of this  Agreement,  for the period (the
"Employment  Period") commencing on the date upon which there occurs a Change of
Control  or a  Potential  Change  of  Control  and  ending on (i) if a Change of
Control has occurred, the second anniversary of the Employment Effective Date or
(ii) if a Potential  Change of Control has  occurred but a Change of Control has
not  occurred,  the earliest of (x) the date upon which the Board  determines in
good faith that a Change of Control is unlikely to occur, (y) any anniversary of
the Potential  Change of Control,  if at least 30 days prior to such anniversary
the  Executive  notifies the Company in writing that he elects to terminate  his
employment  with  the  Company  as  of  such  anniversary  and  (z)  the  second
anniversary of the Employment Effective Date. If the Employment Period commences
by  reason  of a  Potential  Change  of  Control  and the  Employment  Period is
thereafter  terminated  pursuant to clause (ii) (x) of the  preceding  sentence,
this Agreement shall nevertheless remain in effect and a

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new  Employment  Period shall  commence  upon a subsequent  Change of Control or
Potential Change of Control.  The Company shall promptly notify the Executive in
writing of the occurrence of a Change of Control or Potential  Change of Control
and of any determination made by the Board pursuant to clause (ii)(x) above that
a Change of Control is unlikely to occur. As used herein,  the term  "Employment
Effective Date" shall mean, with respect to any Employment Period, the date upon
which such Employment Period commences in accordance with this Section 1.

     2.   TERMS OF EMPLOYMENT.

          (a)  POSITION AND DUTIES.

               (i) During the Employment  Period,  (A) the Executive's  position
          (including  status,  offices,  titles  and  reporting   requirements),
          authority,  duties and responsibilities shall be at least commensurate
          in all  material  respects  with the most  significant  of those held,
          exercised   and  assigned  at  any  time  during  the  90-day   period
          immediately  preceding  the  Employment  Effective  Date,  and (B) the
          Executive's  services  shall be performed  at the  location  where the
          Executive was employed immediately  preceding the Employment Effective
          Date or at another location within 35 miles thereof.

               (ii) During the Employment  Period,  and excluding any periods of
          vacation  and sick  leave to which  the  Executive  is  entitled,  the
          Executive agrees to devote reasonable attention and time during normal
          business  hours to the business and affairs of the Company and, to the
          extent  necessary to discharge  the  responsibilities  assigned to the
          Executive hereunder, to use the Executive's reasonable best efforts to
          perform faithfully and efficiently such  responsibilities.  During the
          Employment  Period it shall not be a violation of this  Agreement  for
          the Executive to (A) serve on corporate, civic or charitable boards or
          committees,  (B) deliver  lectures,  fulfill  speaking  engagements or
          teach at educational institutions and (C) manage personal investments,
          so long as such  activities do not  significantly  interfere  with the
          performance of the Executive's  responsibilities as an employee of the
          Company in accordance with this Agreement.  It is expressly understood
          and  agreed  that to the  extent  that any such  activities  have been
          conducted by the Executive prior to the Employment Effective Date, the
          continued  conduct of such  activities  (or the conduct of  activities
          similar  in nature and scope  thereto)  subsequent  to the  Employment
          Effective  Date shall not  thereafter be deemed to interfere  with the
          performance of the Executive's responsibilities to the Company.

          (b)  COMPENSATION.

               (i) BASE SALARY.  During the  Employment  Period,  the  Executive
          shall receive an annual base salary equal to the base salary in effect
          immediately  prior  to the  Employment  Effective  Date  or,  if  more
          favorable  to the  Executive,  the base  salary  in effect at any time
          after  the  Employment  Effective  Date ("Annual Base

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          Salary"),  which  shall  be  paid  in  accordance  with   the   normal
          business practice of the Company.  During the Employment  Period,  the
          Annual Base Salary  shall be reviewed at least  annually  and shall be
          increased at any time and from time to time as shall be  substantially
          consistent  with  increases  in base salary  generally  awarded in the
          ordinary  course of  business  to  executives  of the  Company and its
          affiliated  companies.  Any  increase in Annual Base Salary  shall not
          serve to limit or reduce any other  obligation to the Executive  under
          this Agreement. Annual Base Salary shall not be reduced after any such
          increase  and the  term  "Annual  Base  Salary"  as  utilized  in this
          Agreement  shall refer to Annual Base Salary as so increased.  As used
          in this Agreement, the term "affiliated companies" shall include, when
          used  with  reference  to the  Company,  any  company  controlled  by,
          controlling or under common control with the Company.

               (ii)  ANNUAL  BONUS.  In  addition  to Annual  Base  Salary,  the
          Executive  shall be awarded,  for each fiscal year or portion  thereof
          during the Employment  Period, an annual bonus (the "Annual Bonus") in
          cash equal to the greater of (A) the greatest  dollar amount of annual
          bonus  paid or  awarded  to or for the  benefit  of the  Executive  in
          respect of any of the  preceding  three  fiscal years or (B) an amount
          comparable  to the annual bonus  awarded to other  Company  executives
          taking into account Executive's position and responsibilities with the
          Company,  prorated  in the case of  either  (A) or (B) for any  period
          consisting  of less than twelve full months.  The Annual Bonus awarded
          for a particular  fiscal year shall  (unless the  Executive  elects to
          defer receipt thereof) be paid no later than the last day of the third
          month after the end of such year.

               (iii)  QUALIFIED  PLANS.   During  the  Employment   Period,  the
          Executive  shall be entitled  to  participate  in all  profit-sharing,
          savings and  retirement  plans that are  tax-qualified  under  Section
          401(a) of the Internal Revenue Code of 1986, as amended ("Code"),  and
          all plans that are  supplemental to any such  tax-qualified  plans, in
          each case to the extent that such plans are  applicable  generally  to
          other executives of the Company and its affiliated  companies,  but in
          no event  shall  such  plans  provide  the  Executive  with  incentive
          opportunities  (measured  with  respect to both  regular  and  special
          incentive opportunities,  to the extent, if any, that such distinction
          is  applicable),   savings   opportunities   and  retirement   benefit
          opportunities  that  are,  in  each  case,  less  favorable,   in  the
          aggregate,  than  the most  favorable  plans  of the  Company  and its
          affiliated  companies.  As used  in this  Agreement,  the  term  "most
          favorable"  shall,  when used with reference to any plans,  practices,
          policies or programs of the Company and its affiliated  companies,  be
          deemed to refer to the most favorable  plans,  practices,  policies or
          programs of the Company and its  affiliated  companies as in effect at
          any time during the three months  preceding the  Employment  Effective
          Date or, if more favorable to the Executive, provided generally at any
          time after the Employment  Effective  Date to other  executives of the
          Company and its affiliated companies.

               (iv) WELFARE  BENEFIT PLANS.  During the Employment  Period,  the
          Executive and/or the Executive's  family, as the case may be, shall be
          eligible for

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          participation  in and shall receive all benefits under welfare benefit
          plans,  practices,  policies and programs  provided by the Company and
          its affiliated  companies  (including,  without  limitation,  medical,
          prescription,  dental, vision, disability,  salary continuance,  group
          life and supplemental group life, accidental death and travel accident
          insurance  plans and programs) to the extent  applicable  generally to
          other executives of the Company and its affiliated  companies,  but in
          no event shall such plans,  practices,  policies and programs  provide
          the Executive with benefits that are less favorable, in the aggregate,
          than the most favorable such plans,  practices,  policies and programs
          of the Company and its affiliated companies.

               (v)  EXPENSES. During the Employment  Period, the Executive shall
          be  entitled  to  receive  prompt  reimbursement  for  all  reasonable
          expenses  incurred  by the  Executive  in  accordance  with  the  most
          favorable  policies,  practices and  procedures of the Company and its
          affiliated companies.

               (vi)  FRINGE  BENEFITS  AND  PERQUISITES.  During the  Employment
          Period,  the  Executive  shall be  entitled  to  fringe  benefits  and
          perquisites in accordance  with the most favorable  plans,  practices,
          programs  and  policies of the Company  and its  affiliated  companies
          applicable to similarly situated executives,  which, in the aggregate,
          shall not be less than Executive's  benefits and perquisites in effect
          prior  to the  commencement  of the  Employment  Period  or,  if  more
          favorable to the Executive,  the benefits and perquisites in effect at
          any time after the Employment Effective Date .

               (vii) OFFICE AND SUPPORT STAFF. During the Employment Period, the
          Executive shall be entitled to an office or offices of a size and with
          furnishings  and  other   appointments,   and  to  exclusive  personal
          secretarial and other assistance, at least equal to the most favorable
          of the  foregoing  provided  to the  Executive  by the Company and its
          affiliated companies at any time during the three months preceding the
          Employment Effective Date.

               (viii)  VACATION.  During the  Employment  Period,  the Executive
          shall  be  entitled  to paid  vacation  in  accordance  with  the most
          favorable plans,  policies,  programs and practices of the Company and
          its  affiliated  companies,  but not less than the amount of  vacation
          time to which Executive was entitled prior to the  commencement of the
          Employment Period.

               (ix) EQUITY AND PERFORMANCE  BASED AWARDS.  During the Employment
          Period,  the Executive shall be granted on an annual basis a long-term
          incentive  package  consisting of stock options,  restricted  stock or
          restricted stock units and other  equity-based  awards and performance
          grants,  as  selected  by the  Company,  with an  aggregate  value (as
          determined by an independent consulting firm selected by Executive and
          reasonably  acceptable to the Company) that shall be not less than the
          aggregate  value  of  the  long-term  incentive  package  awarded  the

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          Executive  in  any  of  the  three years  immediately  preceding  such
          Employment Period.

     3.   TERMINATION OF EMPLOYMENT.

               (a)  DEATH  OR  DISABILITY.   The  Executive's  employment  shall
          terminate   automatically   upon  the  Executive's  death  during  the
          Employment  Period.  If the Company  determines in good faith that the
          Disability of the Executive has occurred during the Employment  Period
          (pursuant to the  definition  of Disability  set forth below),  it may
          give to the Executive  written notice in accordance with Section 11(d)
          of this  Agreement  of its  intention  to  terminate  the  Executive's
          employment. In such event, the Executive's employment with the Company
          shall terminate effective on the 30th day after receipt of such notice
          by the Executive (the  "Disability  Effective  Date"),  provided that,
          within the 30 days after such receipt,  the  Executive  shall not have
          returned to  full-time  performance  of the  Executive's  duties.  For
          purposes of this Agreement, "Disability" shall mean the absence of the
          Executive from the Executive's  duties with the Company on a full-time
          basis for 180 consecutive  business days as a result of incapacity due
          to mental or  physical  illness  which is  determined  to be total and
          permanent  by a physician  selected by the Company or its insurers and
          acceptable to the Executive or the  Executive's  legal  representative
          (such agreement as to acceptability not to be withheld unreasonably).

               (b)  CAUSE.  The Company may terminate the Executive's employment
          during  the  Employment   Period  for  Cause.  For  purposes  of  this
          Agreement,  "Cause"  shall  mean (i)  dishonesty  by  Executive  which
          results  in  substantial  personal  enrichment  at the  expense of the
          Company  or  (ii)  demonstratively   willful  repeated  violations  of
          Executive's  obligations  under this  Agreement  which are intended to
          result and do result in material injury to the Company.

               (c)  GOOD REASON;WINDOW PERIOD. The Executive's employment may be
          terminated  during the  Employment  Period by the  Executive  for Good
          Reason or during a Window Period by the Executive  without any reason.
          For purposes of this Agreement,  "Window Period" shall mean the 90-day
          period  commencing  366 days after any Change of Control as defined in
          Section 9 of this  Agreement.  For purposes of this  Agreement,  "Good
          Reason" shall mean:

                    (i)  any  change  in  the  Executive's  position  (including
               status, offices, titles and reporting  requirements),  authority,
               duties or  responsibilities  as contemplated by Section 2 of this
               Agreement,  excluding for this purpose any de minimus changes and
               excluding an isolated,  insubstantial and inadvertent  action not
               taken in bad faith and which is remedied by the Company  promptly
               after receipt of notice  thereof given by the  Executive,  or any
               other  assignment to the Executive of any duties  inconsistent in
               any   respect   with   such   position,   authority,   duties  or
               responsibilities,  other than de minimus inconsistencies or other
               than, in each case, any such change in duties or such  assignment
               that would clearly constitute a promotion or other improvement in
               Executive's position;

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                    (ii) any  failure by the  Company to comply  with any of the
               provisions   of  this   Agreement,   other   than  an   isolated,
               insubstantial and inadvertent  failure not occurring in bad faith
               and which is remedied by the Company  promptly  after  receipt of
               notice thereof given by the Executive;

                    (iii) the  Company's  requiring the Executive to be based at
               any  office or  location  other  than that  described  in Section
               2(a)(i)(B) hereof;

                    (iv)  any  purported  termination  by  the  Company  of  the
               Executive's  employment  otherwise than as expressly permitted by
               this Agreement;

                    (v) any  failure by the  Company to comply  with and satisfy
               the  requirements of Section 10 of this Agreement,  provided that
               (A) the successor  described in Section  10(c) has  received,  at
               least ten days prior to the Date of  Termination  (as  defined in
               subparagraph  (e) below),  written notice from the Company or the
               Executive  of the  requirements  of such  provision  and (B) such
               failure to be in  compliance  and  satisfy  the  requirements  of
               Section 10 shall continue as of the Date of Termination; or

                    (vi) in the event that the  Executive is serving as a member
               of the Board immediately prior to the Employment  Effective Date,
               any failure to reelect Executive as a member of the Board, unless
               such reelection  would be prohibited by the Company's  By-laws as
               in effect at the beginning of the Employment Period.

               (d)  NOTICE OF TERMINATION.  Any  termination  by the Company for
          Cause,  or by the  Executive  for Good  Reason or  without  any reason
          during a Window Period, shall be communicated by Notice of Termination
          to the other party hereto given in  accordance  with Section  11(d) of
          this  Agreement.  The failure by the  Executive  or the Company to set
          forth in the  Notice of  Termination  any fact or  circumstance  which
          contributes  to a showing of Good  Reason or Cause shall not waive any
          right of the  Executive  or the  Company  hereunder  or  preclude  the
          Executive or the Company from asserting such fact or  circumstance  in
          enforcing the Executive's or the Company's rights hereunder.

               (e)  DATE OF TERMINATION.For purposes of this Agreement, the term
          "Date of  Termination"  means  (i) if the  Executive's  employment  is
          terminated  by the Company  for Cause,  or by the  Executive  during a
          Window Period or for Good Reason, the date of receipt of the Notice of
          Termination or any later date specified  therein,  as the case may be,
          (ii) if the Executive's  employment is terminated by the Company other
          than for Cause or  Disability,  the Date of  Termination  shall be the
          date on which the Company  notifies the Executive of such  termination
          and (iii) if the  Executive's  employment  is  terminated by reason of
          death  or  Disability,  the Date of  Termination  shall be the date of
          death of the Executive or the Disability  Effective  Date, as the case
          may be.

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     4.   OBLIGATIONS OF THE COMPANY UPON TERMINATION.

               (a) GOOD REASON OR DURING A WINDOW PERIOD;  OTHER THAN FOR CAUSE,
          DEATH OR  DISABILITY.  If, during the Employment  Period,  the Company
          shall  terminate the  Executive's  employment  other than for Cause or
          Disability or the Executive shall terminate employment for Good Reason
          or his  employment  shall be terminated for any reason during a Window
          Period:

                    (i) the Company shall pay or provide to or in respect of the
               Executive the following amounts and benefits:

                              A. in a lump sum in cash, undiscounted,  within 10
                         days after the Date of Termination, an  amount equal to
                         the  sum  of (1) the  Executive's  Annual  Base  Salary
                         through the Date of  Termination, (2)  the  product  of
                         (x) the highest  Annual  Bonus  paid  or  awarded to or
                         for the benefit of Executive during  the  three  fiscal
                         years  preceding  the  Date  of  Termination  and (y) a
                         fraction, the  numerator of which is the number of days
                         in  the  current  fiscal  year  through  the  Date   of
                         Termination  and  the denominator of which  is 365, (3)
                         any deferred compensation  previously   awarded   to or
                         earned by the Executive   (together  with  any  accrued
                         interest or earnings thereon)  and (4) any compensation
                         for  unused vacation time  for  which  the Executive is
                         eligible in accordance with the  most favorable  plans,
                         policies, programs and practices of the Company and its
                         affiliated  companies, in each case to  the extent  not
                         theretofore paid (the sum of the  amounts described  in
                         clauses (1), (2),  (3)  and  (4)  shall  be hereinafter
                         referred to as the "Accrued Obligation");

                              B. in a lump sum in cash, undiscounted,  within 10
                         days after the Date of  Termination,  an amount  equal
                         to  the  sum of (1)  three times the Annual Base Salary
                         and (2) three times the  highest  Annual  Bonus paid or
                         awarded  to  or for the benefit of the Executive during
                         the   three   fiscal  years   preceding   the  Date  of
                         Termination;

                              C. an  additional three  Years of Vesting  Service
                         and   Years   of   Credited  Service,  as  well  as  an
                         incremental three  years  added  to  Executive's   age,
                         for purposes of  the Company's Supplemental  Retirement
                         Plan and Profit Sharing Restoration Plan;

                              D. in a lump sum in cash, undiscounted,  within 10
                         days after  the Date of Termination, an amount equal to
                         the sum of (1) three  times the Annual  Base Salary and
                         (2)  three  times  the  highest  Annual  Bonus  paid or
                         awarded   to  or  for  the  benefit  of  the  Executive
                         during  the  three fiscal years preceding  the  Date of
                         Termination (the amounts  in  this clause D. to reflect
                         the   equity   component   of   Executive's     overall
                         compensation);

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                              E. in a lump sum in cash, undiscounted,  within 10
                         days after the Date of Termination, an amount  equal to
                         the  sum  of (1) 15%  of  the  Annual Base Salary (this
                         amount  being  paid  in  lieu  of the  provision of out
                         placement  services)  and  (2)  three  times 15% of the
                         Annual Base Salary that would have been paid or awarded
                         to  or  for  the  benefit  of the  Executive during the
                         fiscal year that includes the Date of Termination (this
                         amount  to   reflect  the   perquisites   component  of
                         Executive's overall compensation);

                              F.  effective  as  of  the  Date  of  Termination,
                         (x)   immediate   vesting   and   exercisability    of,
                         termination  of  any  restrictions  on sale or transfer
                         (other than any such restriction arising  by  operation
                         of law)with respect to and treatment of any performance
                         goals as having been satisfied at the highest  possible
                         level  with  respect  to  each and every stock  option,
                         restricted stock award, restricted stock unit award and
                         other equity-based award and performance  award  (each,
                         a  "Compensatory  Award") that  is  outstanding  as  of
                         a  time immediately  prior to the Date of  Termination,
                         (y)  the  extension  of the  term during which each and
                         every  Compensatory  Award  may  be  exercised  by  the
                         Executive until the earlier of (1)the third anniversary
                         of the Date of Termination or (2)  the  date upon which
                         the right to  exercise  any  Compensatory  Award  would
                         have  expired  if  the  Executive  had  continued to be
                         employed  by  the  Company  under  the  terms  of  this
                         Agreement  until  the   second   anniversary   of   the
                         Employment Effective Date and (z) at the sole  election
                         of Executive, in  exchange for any or all  Compensatory
                         Awards  that  are  either  denominated in or payable in
                         Common Stock, an amount  in cash equal to the number of
                         shares  of  Common  Stock  that  are  subject  to   the
                         Compensatory  Award multiplied by the excess of (i) the
                         Highest Price Per  Share  (as defined  below) over (ii)
                         the  exercise  or  purchase  price,  if  any,  of  such
                         Compensatory Awards. As used herein,  the term "Highest
                         Price Per Share" shall mean the highest price per share
                         that can be determined to have been paid or  agreed  to
                         be  paid  for any share of  Common  Stock by a  Covered
                         Person  (as  defined  below)  at  any  time  during the
                         Employment Period or the  six-month  period immediately
                         preceding the Employment Effective Date.As used herein,
                         the  term "Covered Person" shall  mean any Person other
                         than  an  Exempt  Person  (in  each  case as defined in
                         Section 9 hereof) who (i) is the  Beneficial  Owner (as
                         defined  in  Section  9  hereof)  of 35% or more of the
                         outstanding  shares of Common  Stock or 35% or  more of
                         the  combined  voting power of the  outstanding  Voting
                         Stock (as defined in Section 9  hereof) of the  Company
                         at  any  time  during  the  Employment  Period  or  the
                         two-year  period  immediately  prior to the  Employment
                         Effective  Date,  or  (ii)  is  a  Person  who  has any
                         material  involvement  in  proposing  or effecting  the
                         Change of Control  or Potential  Change of Control (but
                         excluding any Person whose  involvement in proposing or
                         effecting the Change of Control or  Potential Change of
                         Control  resulted  solely  from such Person's voting or
                         selling  of  Common Stock in connection with the Change
                         of

                                        8
<PAGE>

                         Control  or  Potential  Change  of  Control,  from such
                         Person's status as a director or officer of the Company
                         in  evaluating  and/or approving a Change of Control or
                         Potential  Change of  Control or both).  In determining
                         the Highest Price Per Share,  the  price paid or agreed
                         to  be  paid by a Covered Person will be  appropriately
                         adjusted to take into account (W) distributions paid or
                         payable   in   stock, (X) subdivisions  of  outstanding
                         stock, (Y)  combinations  of  shares  of  stock  into a
                         smaller number of shares and (Z) similar events.

                    (ii) for the three-year  period  commencing with the Date of
               Termination,  and in the case of medical and health  benefits for
               the COBRA continuation period commencing thereafter,  the Company
               shall  continue  medical and health  benefits  and group life and
               supplemental  group life  benefits  to the  Executive  and/or the
               Executive's  family at least  equal to those that would have been
               provided  to  them  in  accordance  with  the  plans,   programs,
               practices  and  policies  described  in Section  2(b)(iv) of this
               Agreement if the  Executive's  employment had not been terminated
               (such  continuation  of such benefits for the  applicable  period
               herein set forth  shall be  hereinafter  referred  to as "Welfare
               Benefit  Continuation").  For purposes of determining eligibility
               of the  Executive  for retiree  benefits  pursuant to such plans,
               practices,   programs  and  policies,   the  Executive  shall  be
               considered to have remained  employed until the third anniversary
               of Executive's  Date of  Termination  and to have retired on such
               date; and

                    (iii)  the  Company  shall  timely  pay  or  provide  to the
               Executive  and/or the  Executive's  family  any other  amounts or
               benefits  required to be paid or provided or which the  Executive
               and/or the Executive's  family is eligible to receive pursuant to
               this Agreement and under any plan, program, policy or practice or
               contract or agreement of the Company and its affiliated companies
               as in effect and  applicable  generally to other  executives  and
               their  families  on the  Employment  Effective  Date (such  other
               amounts  and  benefits  shall be  hereinafter  referred to as the
               "Other Benefits").

               (b)  DEATH. If the Executive's employment is terminated by reason
          of the Executive's death during the Employment  Period, and other than
          during a Window  Period in which event the  provisions of Section 4(a)
          shall  govern and the  Executive  shall be entitled to the amounts and
          benefits set forth  therein,  this Agreement  shall  terminate and the
          Company   shall  be  obligated  to  pay  to  the   Executive's   legal
          representatives  under this Agreement the greater of (i) such benefits
          as would be provided to  Executive  under the  Existing  Agreement  or
          (ii)(A) the payment of the Accrued Obligations (which shall be paid to
          the Executive's estate or beneficiary, as applicable, in a lump sum in
          cash within 30 days of the Date of Termination), (B) the payment of an
          amount  equal to the  Annual  Salary  that would have been paid to the
          Executive  pursuant to this Agreement for the period  beginning on the
          Date of Termination and ending on the first anniversary thereof if the
          Executive's  employment  had not  terminated by reason of death (which
          shall be paid to the Executive's estate or beneficiary, as applicable,
          in a lump sum in cash within 30

                                        9
<PAGE>

          days of the Date of Termination),  (C) the timely payment or provision
          of the  Welfare  Benefit  Continuation  and  Other  Benefits  and  (D)
          effective as of the Date of  Termination,  (x)  immediate  vesting and
          exercisability  of, and  termination  of any  restrictions  on sale or
          transfer (other than any such restriction arising by operation of law)
          with respect to, each and every Compensatory Award outstanding as of a
          time immediately  prior to the Date of Termination,  (y) the extension
          of the term  during  which  each and every  Compensatory  Award may be
          exercised or purchased by the  Executive  until the earlier of (I) the
          third  anniversary  of the Date of  Termination  or (II) the date upon
          which the right to exercise or purchase any  Compensatory  Award would
          have  expired if the  Executive  had  continued  to be employed by the
          Company under the terms of this Agreement until the second anniversary
          of the  Employment  Effective  Date  and (z) at the sole  election  of
          Executive's  legal  representative,  in exchange for any  Compensatory
          Award that is either  denominated  in or payable in Common  Stock,  an
          amount in cash equal to the excess of (I) the Highest  Price Per Share
          over (II) the exercise or purchase price, if any, of such Compensatory
          Award.

               (c) DISABILITY.  If the  Executive's  employment is terminated by
          reason of the Executive's Disability during the Employment Period, and
          other than  during a Window  Period in which event the  provisions  of
          Section 4(a) shall govern and the  Executive  shall be entitled to the
          amounts and benefits set forth therein, this Agreement shall terminate
          and the  Company  shall  be  obligated  to pay to the  Executive,  the
          greater of (i) such  benefits as would be provided to Executive  under
          the  Existing   Agreement  or  (ii)(A)  the  payment  of  the  Accrued
          Obligations  (which  shall be paid to the  Executive  in a lump sum in
          cash within 30 days of the Date of Termination), (B) the payment of an
          amount  equal to the  Annual  Salary  that would have been paid to the
          Executive  pursuant to this Agreement for the period  beginning on the
          Date of Termination and ending on the first anniversary thereof if the
          Executive's  employment  had not  terminated  by reason of  Disability
          (which shall be paid to the  Executive in a lump sum in cash within 30
          days of the Date of Termination),  (C) the timely payment or provision
          of the  Welfare  Benefit  Continuation  and  Other  Benefits  and  (D)
          effective as of the Date of  Termination,  (x)  immediate  vesting and
          exercisability  of, and  termination  of any  restrictions  on sale or
          transfer (other than any such restriction arising by operation of law)
          with respect to, each and every Compensatory Award outstanding as of a
          time immediately  prior to the Date of Termination,  (y) the extension
          of the term  during  which  each and every  Compensatory  Award may be
          exercised or purchased by the  Executive  until the earlier of (I) the
          third  anniversary  of the Date of  Termination  or (II) the date upon
          which the right to exercise or purchase any  Compensatory  Award would
          have  expired if the  Executive  had  continued  to be employed by the
          Company under the terms of this Agreement until the second anniversary
          of the  Employment  Effective  Date  and (z) at the sole  election  of
          Executive,  in  exchange  for any  Compensatory  Award  that is either
          denominated in or payable in Common Stock,  an amount in cash equal to
          the excess of (I) the Highest  Price Per Share over (II) the  exercise
          or purchase price, if any, of such Compensatory Award.

               (d) CAUSE; OTHER THAN FOR GOOD REASON OR DURING A WINDOW PERIOD .
          If the Executive's employment shall be terminated for Cause during the
          Employment  Period,  and other  than  during a Window  Period in which
          event the provisions of Section 4(a)

                                        10
<PAGE>

          shall  govern and the  Executive  shall be entitled to the amounts and
          benefits set forth therein,  this Agreement  shall  terminate  without
          further  obligations  under this Agreement to the Executive other than
          for Accrued Obligations. If the Executive terminates employment during
          the Employment Period other than for Good Reason and other than during
          a Window  Period,  this  Agreement  shall  terminate  without  further
          obligations  to the  Executive,  other than for the payment of Accrued
          Obligations.  In such case, all Accrued  Obligations  shall be paid to
          the  Executive  in a lump  sum in cash  within  30 days of the Date of
          Termination.

     5.   NON-EXCLUSIVITY OF RIGHTS.  Except as provided in Section 4 of this
     Agreement, nothing in this Agreement shall prevent or limit the Executive's
     continuing or future participation in any plan, program, policy or practice
     provided by the Company or any of its  affiliated  companies  and for which
     the Executive  may qualify,  nor shall  anything  herein limit or otherwise
     affect  such  rights  as the  Executive  may have  under  any  contract  or
     agreement  with the  Company or any of its  affiliated  companies.  Amounts
     which are vested  benefits or which the Executive is otherwise  entitled to
     receive under any plan,  policy,  practice or program of or any contract or
     agreement  with  the  Company  or  any of its  affiliated  companies  at or
     subsequent to the Date of Termination  shall be payable in accordance  with
     such plan,  policy,  practice or program or contract or agreement except as
     such plan,  policy,  practice or program is  expressly  superseded  by this
     Agreement.

     6.   FULL SETTLEMENT; RESOLUTION OF DISPUTES.

               (a) The Company's  obligation  to make  payments  provided for in
          this  Agreement  and  otherwise to perform its  obligations  hereunder
          shall  not be  affected  by  any  set-off,  counterclaim,  recoupment,
          defense,  mitigation or other claim, right or action which the Company
          may have against the  Executive or others.  The Company  agrees to pay
          promptly as incurred,  to the full extent  permitted by law, all legal
          fees and expenses which the Executive may reasonably incur as a result
          of any contest  (unless the  Executive's  claim is found by a court of
          competent  jurisdiction  to have been  frivolous) by the Company,  the
          Executive or others of the validity or enforceability of, or liability
          under,  any provision of this Agreement  (other than Section 8 hereof)
          or any guarantee of performance  thereof (including as a result of any
          contest by the Executive about the amount of any such payment pursuant
          to this Agreement),  plus in each case interest on any delayed payment
          at the Applicable  Federal Rate provided for in Section  7872(f)(2)(A)
          of the Code.

               (b) If there  shall be any  dispute  between  the Company and the
          Executive  concerning  (i) in the  event  of  any  termination  of the
          Executive's  employment by the Company,  whether such  termination was
          for Cause,  or (ii) in the event of any  termination  of employment by
          the Executive, whether Good Reason existed or whether such termination
          occurred  during a Window  Period,  then,  unless and until there is a
          final,  nonappealable  judgment by a court of  competent  jurisdiction
          declaring   that   such   termination   was  for  Cause  or  that  the
          determination by the Executive of the existence of Good Reason was not
          made in good faith or that the  termination  by the  Executive did not
          occur during a Window Period,  the Company shall pay all amounts,  and
          provide all

                                        11
<PAGE>

          benefits,  to the  Executive  and/or the  Executive's  family or other
          beneficiaries,  as the case may be, that the Company would be required
          to pay or provide  pursuant  to  Section  4(a)  hereof as though  such
          termination were by the Company without Cause or by the Executive with
          Good Reason or during a Window  Period;  provided,  however,  that the
          Company shall not be required to pay any disputed  amounts pursuant to
          this  paragraph  except upon receipt of an undertaking by or on behalf
          of the  Executive to repay all such amounts to which the  Executive is
          ultimately adjudged by such court not to be entitled; provided further
          that  such  undertaking  need  not be  secured,  whether  by  bond  or
          otherwise.

     7.   CERTAIN ADDITIONAL PAYMENTS BY THE COMPANY.

               (a) Anything in this  Agreement to the contrary  notwithstanding,
          in the event it shall be determined  that any payment or  distribution
          to or for the  benefit of the  Executive  (whether  paid or payable or
          distributed or  distributable  pursuant to the terms of this Agreement
          or otherwise, but determined without regard to any additional payments
          required  under this Section 7) (a "Payment")  would be subject to the
          excise  tax  imposed by Section  4999 of the Code or any  interest  or
          penalties  are incurred by the  Executive  with respect to such excise
          tax (such excise tax,  together with any such interest and  penalties,
          hereinafter  collectively  referred to as the "Excise Tax"),  then the
          Executive  shall be  entitled  to  receive  an  additional  payment (a
          "Gross-Up  Payment")  in an amount  such  that  after  payment  by the
          Executive of all taxes  (including  any interest or penalties  imposed
          with respect to such taxes), including, without limitation, any income
          taxes (and any interest and  penalties  imposed with respect  thereto)
          and  Excise Tax  imposed  upon the  Gross-Up  Payment,  the  Executive
          retains  an amount of the  Gross-Up  Payment  equal to the  Excise Tax
          imposed upon the Payments.

               (b) Subject to the provisions of Section 7(c), all determinations
          required to be made under this Section 7, including whether and when a
          Gross-Up  Payment is required and the amount of such Gross-Up  Payment
          and the assumptions to be utilized in arriving at such  determination,
          shall  be  made  by  Arthur  Andersen  LLP  (the  "Accounting  Firm");
          provided,  however,  that the Accounting Firm shall not determine that
          no Excise Tax is payable by the  Executive  unless it  delivers to the
          Executive a written opinion (the "Accounting Opinion") that failure to
          report the Excise Tax on the Executive's applicable Federal income tax
          return would not result in the  imposition  of a negligence or similar
          penalty. In the event that Arthur Andersen LLP has served, at any time
          during the two years  immediately  preceding a Change of Control Date,
          as accountant or auditor for the  individual,  entity or group that is
          involved in effecting  or has any  material  interest in the Change of
          Control,   the  Executive,   at  his  option,  shall  appoint  another
          nationally  recognized  accounting firm to make the determinations and
          perform  the  other  functions  specified  in this  Section  7  (which
          accounting  firm  shall then be  referred  to as the  Accounting  Firm
          hereunder).  All fees and  expenses  of the  Accounting  Firm shall be
          borne solely by the Company. Within 15 business days of the receipt of
          notice  from the  Executive  that  there has been a  Payment,  or such
          earlier time as is requested by the Company, the Accounting Firm shall
          make all  determinations  required under this Section 7, shall provide
          to  the  Company and the Executive a written report setting forth such

                                        12
<PAGE>

          determinations,  together with detailed supporting calculations,  and,
          if the Accounting Firm determines that no Excise Tax is payable, shall
          deliver the Accounting Opinion to the Executive. Any Gross-Up Payment,
          as determined pursuant to this Section 7, shall be paid by the Company
          to the  Executive  within five days of the  receipt of the  Accounting
          Firm's determination.  Subject to the remainder of this Section 7, any
          determination by the Accounting Firm shall be binding upon the Company
          and the Executive.  As a result of the  uncertainty in the application
          of Section  4999 of the Code at the time of the initial  determination
          by the  Accounting  Firm  hereunder,  it is  possible  that a Gross-Up
          Payment  that will not have been made by the Company  should have been
          made ("Underpayment"), consistent with the calculations required to be
          made  hereunder.  In the event  that it is  ultimately  determined  in
          accordance  with the  procedures  set forth in  Section  7(c) that the
          Executive  is  required  to make a  payment  of any  Excise  Tax,  the
          Accounting  Firm shall determine the amount of the  Underpayment  that
          has occurred and any such  Underpayment  shall be promptly paid by the
          Company to or for the benefit of the Executive.

               (c) The  Executive  shall  notify  the  Company in writing of any
          claims by the Internal  Revenue  Service  that, if  successful,  would
          require  the  payment by the  Company of the  Gross-Up  Payment.  Such
          notification  shall be given as soon as practicable but not later than
          30 days after the  Executive  actually  receives  notice in writing of
          such claim and shall  apprise  the Company of the nature of such claim
          and the date on which such claim is  requested  to be paid;  provided,
          however,  that the failure of the  Executive  to notify the Company of
          such  claim (or to  provide  any  required  information  with  respect
          thereto)  shall not affect any rights  granted to the Executive  under
          this  Section 7 except to the extent  that the  Company is  materially
          prejudiced  in the  defense of such  claim as a direct  result of such
          failure.  The  Executive  shall  not  pay  such  claim  prior  to  the
          expiration of the 30-day  period  following the date on which he gives
          such notice to the Company (or such shorter  period ending on the date
          that any payment of taxes with  respect to such claim is due).  If the
          Company  notifies the Executive in writing prior to the  expiration of
          such  period  that it desires to contest  such  claim,  the  Executive
          shall:

                    (i) give the Company any information reasonably requested by
               the Company relating to such claim;

                    (ii) take such action in  connection  with  contesting  such
               claim as the Company  shall  reasonably  request in writing  from
               time to time,  including,  without  limitation,  accepting  legal
               representation with respect to such claim by an attorney selected
               by the Company and reasonably acceptable to the Executive;

                    (iii)  cooperate  with the  Company  in good  faith in order
               effectively to contest such claim; and

                    (iv) if the  Company  elects not to assume and  control  the
               defense of such claim,  permit the Company to  participate in any
               proceedings relating to such claim;

                                        13
<PAGE>

          provided,  however,  that the Company  shall bear and pay directly all
          costs and  expenses  (including  additional  interest  and  penalties)
          incurred in connection  with such contest and shall indemnify and hold
          the Executive  harmless,  on an after-tax basis, for any Excise Tax or
          income tax  (including  interest and penalties  with respect  thereto)
          imposed as a result of such  representation  and  payment of costs and
          expenses.  Without  limitation  on the  foregoing  provisions  of this
          Section 7(c), the Company shall have the right, at its sole option, to
          assume the defense of and control all  proceedings in connection  with
          such  contest,  in which  case it may  pursue  or  forego  any and all
          administrative appeals, proceedings, hearings and conferences with the
          taxing  authority  in respect of such claim and may either  direct the
          Executive  to pay the tax  claimed and sue for a refund or contest the
          claim in any permissible manner, and the Executive agrees to prosecute
          such contest to a determination before any administrative tribunal, in
          a court of initial  jurisdiction and in one or more appellate  courts,
          as the Company shall determine; provided, however, that if the Company
          directs  the  Executive  to pay such  claim and sue for a refund,  the
          Company shall advance the amount of such payment to the Executive,  on
          an  interest-free  basis,  and shall  indemnify and hold the Executive
          harmless,  on an  after-tax  basis,  from any Excise Tax or income tax
          (including  interest or penalties with respect  thereto)  imposed with
          respect to such  advance or with  respect to any  imputed  income with
          respect to such  advance;  and further  provided that any extension of
          the  statute  of  limitations  relating  to  payment  of taxes for the
          taxable year of the  Executive  with  respect to which such  contested
          amount  is  claimed  to be due is  limited  solely  to such  contested
          amount. Furthermore,  the Company's right to assume the defense of and
          control the contest shall be limited to issues with respect to which a
          Gross-Up Payment would be payable hereunder and the Executive shall be
          entitled  to settle or  contest,  as the case may be, any other  issue
          raised by the Internal Revenue Service or any other taxing authority.

               (d) If, after the receipt by the Executive of an amount  advanced
          by the  Company  pursuant  to  Section  7(c),  the  Executive  becomes
          entitled  to  receive  any refund  with  respect  to such  claim,  the
          Executive   shall  (subject  to  the  Company's   complying  with  the
          requirements  of Section 7(c))  promptly pay to the Company the amount
          of such refund  (together  with any interest paid or credited  thereon
          after  taxes  applicable  thereto).  If,  after  the  receipt  by  the
          Executive  of an amount  advanced by the  Company  pursuant to Section
          7(c), a determination is made that the Executive shall not be entitled
          to any refund  with  respect to such  claim and the  Company  does not
          notify the  Executive  in writing of its intent to contest such denial
          of refund prior to the expiration of 30 days after such determination,
          then such  advance  shall be forgiven  and shall not be required to be
          repaid  and the amount of such  advance  shall  offset,  to the extent
          thereof, the amount of Gross-Up Payment required to be paid.

     8.   CONFIDENTIAL INFORMATION; CERTAIN PROHIBITED ACTIVITIES.

               (a) The  Executive  shall hold in a  fiduciary  capacity  for the
          benefit  of  the  Company  all  secret  or  confidential  information,
          knowledge  or data  relating to the  Company or any of its  affiliated
          companies,  and their  respective  businesses,  which  shall have been
          obtained by the  Executive  during the  Executive's  employment by the
          Company or any of its  affiliated  companies and which shall not be or
          become  public  knowledge

                                        14
<PAGE>

          (other  than  by  acts  by the  Executive  or  representatives  of the
          Executive in violation of this Agreement).  After the Executive's Date
          of  Termination,  the Executive  shall not,  without the prior written
          consent of the Company or as may otherwise be required by law or legal
          process,  communicate  or divulge any such  information,  knowledge or
          data to anyone  other than the  Company  and those  designated  by it.
          Except as  provided  in  subsection  (c) below,  in no event  shall an
          asserted  violation of the  provisions  of this Section 8 constitute a
          basis for deferring or withholding  any amounts  otherwise  payable to
          Executive  under  this  Agreement.   Also,   within  14  days  of  the
          termination of Executive's employment for any reason,  Executive shall
          return to the Company all  documents  and other  tangible  items of or
          containing  Company  information which are in Executive's  possession,
          custody or control.

               (b)  Executive  agrees that for a period of 24 complete  calendar
          months  following his Date of Termination,  Executive will not, either
          directly or indirectly,  call on, solicit, induce or attempt to induce
          any of the  employees  or officers of the Company whom  Executive  had
          knowledge of or association  with during  Executive's  employment with
          the Company to terminate  their  association  with the Company  either
          personally or through the efforts of his or her subordinates.

               (c) In the event of a breach by  Executive  of any  provision  of
          this Section 8, the Company shall be entitled to (i) cease any Welfare
          Benefit Contribution entitlement provided pursuant to Section 4(a)(ii)
          hereof,  (ii)  relief  by  temporary   restraining  order,   temporary
          injunction  and/or  permanent   injunction,   (iii)  recovery  of  all
          attorneys'  fees and costs  incurred in obtaining such relief and (iv)
          any other  legal  and  equitable  relief to which it may be  entitled,
          including monetary damages.

     9.   CHANGE OF CONTROL; POTENTIAL CHANGE OF CONTROL.

               (a) As used in this  Agreement,  the terms set forth  below shall
          have the following respective meanings:

               "Beneficial  Owner" shall mean, with reference to any securities,
          any Person if:

                    (i) such Person is the "beneficial  owner" of (as determined
               pursuant to Rule 13d-3 of the General Rules and Regulations under
               the  Exchange  Act,  as in effect on the date of this  Agreement)
               such securities;  provided,  however,  that a Person shall not be
               deemed the "Beneficial  Owner" of, or to "beneficially  own," any
               security  under this  subsection (i) as a result of an agreement,
               arrangement  or  understanding  to  vote  such  security  if such
               agreement, arrangement or understanding: (x) arises solely from a
               revocable  proxy or consent  given in response to a public (i.e.,
               not including a solicitation  exempted by Rule 14a-2(b)(2) of the
               General  Rules and  Regulations  under the Exchange Act) proxy or
               consent  solicitation  made pursuant to, and in accordance  with,
               the  applicable  provisions of the General Rules and  Regulations
               under the  Exchange  Act and (y) is not then  reportable  by such
               Person on Schedule 13D under the Exchange Act (or any  comparable
               or successor report); or

                                        15
<PAGE>

                    (ii)  such  Person  is a member  of a group (as that term is
               used in Rule 13d-5(b) of the General Rules and Regulations  under
               the Exchange  Act) that  includes  any other  Person  (other than
               Exempt Persons) that beneficially owns such securities;

     provided, however, that a Person shall not be deemed the "Beneficial Owner"
     of, or to  "beneficially  own" any security  held by a Norris  Family Trust
     with respect to which such Person acts in the capacity of trustee, personal
     representative,   custodian,  administrator,  executor,  officer,  partner,
     member,  or  other  fiduciary;  provided,  further,  that  nothing  in this
     definition  shall cause a Person  engaged in business as an  underwriter of
     securities to be the  Beneficial  Owner of, or to  "beneficially  own," any
     securities acquired through such Person's  participation in good faith in a
     firm commitment  underwriting  until the expiration of forty days after the
     date of such  acquisition.  For purposes hereof,  "voting" a security shall
     include voting,  granting a proxy, consenting or making a request or demand
     relating to corporate action (including, without limitation, a demand for a
     stockholder  list,  to call a stockholder  meeting or to inspect  corporate
     books and records) or otherwise giving an authorization (within the meaning
     of Section 14(a) of the Exchange Act) in respect of such security.

          The terms  "beneficially  own" and  "beneficially  owning"  shall have
     meanings that are  correlative to this  definition of the term  "Beneficial
     Owner."

          "Change of Control" shall mean any of the following  occurring
     on or after the Agreement Effective Date:

                    (i) Any Person  (other than an Exempt  Person)  shall become
               the Beneficial Owner of 35% or more of the shares of Common Stock
               then  outstanding or 35% or more of the combined  voting power of
               the  Voting  Stock of the  Company  then  outstanding;  provided,
               however,  that no Change of Control  shall be deemed to occur for
               purposes of this  subsection  (i) if such Person  shall  become a
               Beneficial  Owner of 35% or more of the shares of Common Stock or
               35% or more of the  combined  voting power of the Voting Stock of
               the Company  solely as a result of (x) an Exempt  Transaction  or
               (y) an  acquisition  by a Person  pursuant  to a  reorganization,
               merger  or  consolidation,  if,  following  such  reorganization,
               merger or consolidation, the conditions described in clauses (x),
               (y) and (z) of subsection (iii) of this definition are satisfied;

                    (ii)  Individuals  who, as of the Agreement  Effective Date,
               constitute the Board (the "Incumbent Board") cease for any reason
               to  constitute  at  least  a  majority  of the  Board;  provided,
               however,  that any individual  becoming a director  subsequent to
               the Agreement  Effective Date whose  election,  or nomination for
               election by the Company's shareholders, was approved by a vote of
               at  least  a  majority  of  the  directors  then  comprising  the
               Incumbent  Board shall be  considered  as though such  individual
               were a member of the Incumbent  Board;  provided,  further,  that
               there shall be excluded,  for this purpose,  any such  individual
               whose  initial  assumption  of  office  occurs as a result of any
               actual or  threatened  election  contest  that is  subject to the
               provisions of Rule 14a-11 under the Exchange Act;

                                        16
<PAGE>

                    (iii)  Approval  by the  shareholders  of the  Company  of a
               reorganization,  merger or consolidation,  in each case,  unless,
               following such reorganization,  merger or consolidation, (x) more
               than 65% of the then  outstanding  shares of common  stock of the
               corporation   resulting  from  such  reorganization,   merger  or
               consolidation   and  the  combined   voting  power  of  the  then
               outstanding  Voting  Stock of such  corporation  is  beneficially
               owned, directly or indirectly, by all or substantially all of the
               Persons who were the Beneficial Owners of the outstanding  Common
               Stock  immediately  prior  to  such  reorganization,   merger  or
               consolidation  (ignoring,  for  purposes of this clause (x),  the
               first proviso in the definition of  "Beneficial  Owner" set forth
               in Section 9(a)) in  substantially  the same proportions as their
               ownership  immediately  prior to such  reorganization,  merger or
               consolidation  of the  outstanding  Common  Stock,  (y) no Person
               (excluding any Exempt Person or any Person  beneficially  owning,
               immediately   prior   to   such    reorganization,    merger   or
               consolidation,  directly or indirectly, 35% or more of the Common
               Stock  then  outstanding  or 35% or more of the  combined  voting
               power  of the  Voting  Stock  of the  Company  then  outstanding)
               beneficially  owns,  directly or  indirectly,  35% or more of the
               then  outstanding  shares  of  common  stock  of the  corporation
               resulting from such  reorganization,  merger or  consolidation or
               the combined voting power of the then outstanding Voting Stock of
               such  corporation  and (z) at least a majority  of the members of
               the board of directors  of the  corporation  resulting  from such
               reorganization,  merger  or  consolidation  were  members  of the
               Incumbent  Board  at the  time of the  execution  of the  initial
               agreement  or  initial  action  by the Board  providing  for such
               reorganization, merger or consolidation; or

                    (iv)  Approval by the  shareholders  of the Company of (x) a
               complete  liquidation or dissolution of the Company,  unless such
               liquidation  or  dissolution  is  approved  as  part of a plan of
               liquidation  and  dissolution  involving a sale or disposition of
               all or  substantially  all  of the  assets  of the  Company  to a
               corporation  with respect to which,  following such sale or other
               disposition,  all of the requirements of clauses (y)(A),  (B) and
               (C) of this  subsection  (iv) are  satisfied,  or (y) the sale or
               other  disposition of all or  substantially  all of the assets of
               the Company, other than to a corporation,  with respect to which,
               following  such sale or other  disposition,  (A) more than 65% of
               the then  outstanding  shares of common stock of such corporation
               and  the  combined  voting  power  of the  Voting  Stock  of such
               corporation is then beneficially  owned,  directly or indirectly,
               by  all  or  substantially  all  of  the  Persons  who  were  the
               Beneficial  Owners of the  outstanding  Common Stock  immediately
               prior to such sale or other disposition  (ignoring,  for purposes
               of this clause  (y)(A),  the first  proviso in the  definition of
               "Beneficial  Owner" set forth in Section  9(a)) in  substantially
               the same  proportions as their  ownership,  immediately  prior to
               such sale or other disposition,  of the outstanding Common Stock,
               (B) no  Person  (excluding  any  Exempt  Person  and  any  Person
               beneficially  owning,  immediately  prior  to such  sale or other
               disposition,  directly or  indirectly,  35% or more of the Common
               Stock  then  outstanding  or 35% or more of the  combined  voting
               power  of the  Voting  Stock  of the  Company  then  outstanding)
               beneficially  owns,  directly or  indirectly,  35% or more of the
               then  outstanding  shares of common stock of such corporation and
               the combined voting power of the then outstanding Voting Stock of
               such corporation and (C) at

                                        17
<PAGE>

               least a majority of the members of the board of directors of such
               corporation  were members of the  Incumbent  Board at the time of
               the execution of the initial  agreement or initial  action of the
               Board  providing for such sale or other  disposition of assets of
               the Company.

          "Common Stock" shall mean the common stock,  par value $.01 per share,
     of the Company,  and shall include, for purposes of Section 4 hereof, stock
     of any successor, within the meaning of Section 10(c).

          "Exchange  Act" shall mean the  Securities  Exchange  Act of 1934,  as
     amended.

          "Exempt  Person"  shall mean (i) the Company,  any  subsidiary  of the
     Company,  any employee benefit plan of the Company or any subsidiary of the
     Company, and any Person organized,  appointed or established by the Company
     for or pursuant to the terms of any such plan, (ii) any Person who is shown
     under the caption  "Principal  and Selling  Stockholders"  in the Company's
     final  prospectus  dated  July 28,  1999  relating  to its  initial  public
     offering of the Common Stock as beneficially owning (as determined pursuant
     to Rule 13d-3 of the General Rules and Regulations  under the Exchange Act,
     as in  effect on the date of this  Agreement)  one  percent  or more of the
     Common  Stock and (iii) any  lineal  descendant  and any spouse of any such
     lineal  descendant of D.W. Norris,  but only if such lineal  descendant and
     any spouse of any such lineal  descendant shall not at any time hold shares
     of Common Stock or Voting Stock of the Company with the primary  purpose of
     effecting  with  respect  to the  Company  (A) an  extraordinary  corporate
     transaction, such as a merger, reorganization or liquidation, (B) a sale or
     transfer of a material  amount of assets,  (C) any  material  change in the
     capitalization,  (D) any other material change in the business or corporate
     structure or operations,  (E) changes in the corporate charter or bylaws or
     (F) a change in the  composition  of the Board or of the  members of senior
     management.

          "Exempt  Transaction"  shall mean an increase in the percentage of the
     outstanding shares of Common Stock or the percentage of the combined voting
     power of the outstanding Voting Stock of the Company  beneficially owned by
     any  Person  solely as a result of a  reduction  in the number of shares of
     Common Stock then  outstanding due to the repurchase of Common Stock by the
     Company,  unless  and until  such time as such  Person  shall  purchase  or
     otherwise become the Beneficial Owner of additional  shares of Common Stock
     constituting 3% or more of the then  outstanding  shares of Common Stock or
     additional  Voting Stock  representing  3% or more of the  combined  voting
     power of the then outstanding Voting Stock.

          "Norris  Family  Trust" shall mean any trust,  estate,  custodianship,
     other fiduciary  arrangement,  corporation,  limited  partnership,  limited
     liability  company  or  other  business  entity  (collectively,  a  "Family
     Entity") formed,  owned, held, or existing primarily for the benefit of the
     lineal   descendants  of  D.W.  Norris  and  any  spouses  of  such  lineal
     descendants,  but only if such  Family  Entity  shall  not at any time hold
     Common  Stock or Voting  Stock of the Company  with the primary  purpose of
     effecting  with  respect  to the  Company  (i) an  extraordinary  corporate
     transaction, such as a merger, reorganization or liquidation (ii) a sale or
     transfer  of a material  amount of  assets,  (iii) any  material  change in
     capitalization, (iv) any other material change in

                                        18
<PAGE>
     business or  corporate  structure or  operations,  (v) changes in corporate
     charter or bylaws,  or (vi) a change in the  composition of the Board or of
     the members of senior management.

          "Person" shall mean any individual,  firm,  corporation,  partnership,
     association, trust, unincorporated organization or other entity.

          "Potential Change of Control" shall mean any of the following:

                    (i) a tender  offer or exchange  offer is  commenced  by any
               Person  which,  if  consummated,  would  constitute  a Change  of
               Control;

                    (ii) an agreement  is entered into by the Company  providing
               for a  transaction  which,  if  consummated,  would  constitute a
               Change of Control;

                    (iii) any election  contest is commenced  that is subject to
               the provisions of Rule 14a-11 under the Exchange Act; or

                    (iv) any proposal is made, or any other event or transaction
               occurs  or  is  continuing,   which  the  Board  determines,   if
               consummated, would result in a Change of Control.

          "Voting  Stock"  shall  mean,  with  respect  to  a  corporation,  all
     securities of such  corporation of any class or series that are entitled to
     vote generally in the election of directors of such corporation  (excluding
     any  class or series  that  would be  entitled  so to vote by reason of the
     occurrence  of any  contingency,  so  long  as  such  contingency  has  not
     occurred).

                    (a)  In  the  event  that  the  Company  is  a  party  to  a
               transaction that is otherwise intended to qualify for "pooling of
               interests" accounting treatment,  such transaction  constitutes a
               Change of  Control  within  the  meaning  of this  Agreement  and
               individuals who satisfy the  requirements in clauses (i) and (ii)
               below  constitute  at least 51% of the number of directors of the
               entity   surviving  such   transaction  or  any  parent  thereof:
               individuals  who  (i)  immediately   prior  to  such  transaction
               constituted the Board and (ii) on the date hereof  constitute the
               Board and any new director  (other than a director  whose initial
               assumption  of  office  is  in  connection   with  an  actual  or
               threatened election contest relating to the election of directors
               of the  Company)  whose  appointment  or election by the Board or
               nomination  for  election  by  the  Company's   stockholders  was
               approved  or  recommended  by a  vote  of at  least  51%  of  the
               directors  then still in office who either were  directors on the
               date  hereof or whose  appointment,  election or  nomination  for
               election was  previously  so approved or  recommended,  then this
               Section 9 and other Agreement  provisions  concerning a Change of
               Control shall, to the extent practicable, be interpreted so as to
               permit  such  accounting  treatment,  and to the extent  that the
               application  of this sentence does not preserve the  availability
               of such  accounting  treatment,  then,  to the  extent  that  any
               provision  or  combination  of  provisions  of this Section 9 and
               other  Agreement  provisions   concerning  a  Change  of  Control
               disqualifies   the   transaction   as  a  "pooling"   transaction
               (including,  if  applicable,  all  provisions  of  the  Agreement
               relating  to a Change of  Control),  the Board  shall  amend such
               provision or

                                        19
<PAGE>

               provisions if and to the extent  necessary  (including  declaring
               such  provision or  provisions to be null and void as of the date
               hereof,  which declaration shall be binding on Executive) so that
               such   transaction   may  be  accounted  for  as  a  "pooling  of
               interests."  All  determinations  with respect to this  paragraph
               shall  be made by the  Company,  based  upon  the  advice  of the
               accounting  firm  whose  opinion  with  respect  to  "pooling  of
               interests" is required as a condition to the consummation of such
               transaction.

     10.  SUCCESSORS.

                    (a) This  Agreement is personal to the Executive and without
               the prior written  consent of the Company shall not be assignable
               by the  Executive  otherwise  than by will or the laws of descent
               and  distribution.  This Agreement  shall inure to the benefit of
               and be enforceable by the Executive's heirs,  executors and other
               legal representatives.

                    (b) This  Agreement  shall  inure to the  benefit  of and be
               binding  upon the Company and may only be assigned to a successor
               described in Section 10(c).

                    (c) The Company will require any successor  (whether  direct
               or indirect, by purchase, merger,  consolidation or otherwise) to
               all or  substantially  all of the business  and/or  assets of the
               Company to assume  expressly and agree to perform this  Agreement
               in the same manner and to the same extent that the Company  would
               be required to perform it if no such  succession had taken place.
               As used in this  Agreement,  "Company"  shall mean the Company as
               hereinbefore  defined and any  successor to its  business  and/or
               assets as  aforesaid  which  assumes  and agrees to perform  this
               Agreement by operation of law, or otherwise.

     11.  MISCELLANEOUS.

                    (a) This  Agreement  shall be governed by and  construed  in
               accordance  with  the  laws of the  State  of  Delaware,  without
               reference to  principles  of conflict of laws that would  require
               the application of the laws of any other state or jurisdiction.

                    (b) The  captions  of  this  Agreement  are not  part of the
               provisions hereof and shall have no force or effect.

                    (c) This Agreement may not be amended or modified  otherwise
               than by a written  agreement  executed by the  parties  hereto or
               their respective successors and heirs,  executors and other legal
               representatives.

                    (d) All notices and other communications  hereunder shall be
               in  writing  and  shall  be  given,  if by the  Executive  to the
               Company,   by  telecopy   or   facsimile   transmission   at  the
               telecommunications  number set forth  below and, if by either the
               Company or the  Executive,  either by hand  delivery to the other
               party  or  by  registered  or  certified  mail,   return  receipt
               requested, postage prepaid, addressed as follows:

                                        20
<PAGE>

                    If to the Executive:

                    ------------------------------------------------------

                    ------------------------------------------------------

                    If to the Company:

                    Lennox International Inc.
                    2140 Lake Park Blvd.
                    Richardson, Texas 75080-2254
                    Telecommunications Number: (972) 497-6660
                    Attention:  Corporate Secretary

or to such other  address as either  party shall have  furnished to the other in
writing in accordance  herewith.  Notice and  communications  shall be effective
when actually received by the addressee.

                    (e) The invalidity or  unenforceability  of any provision of
               this Agreement shall not affect the validity or enforceability of
               any other provision of this Agreement.

                    (f) The Company may withhold from any amounts  payable under
               this  Agreement  such  Federal,  state or local taxes as shall be
               required  to be  withheld  pursuant  to  any  applicable  law  or
               regulation.

                    (g) The Executive's or the Company's  failure to insist upon
               strict   compliance  with  any  provision  hereof  or  any  other
               provision  of this  Agreement  or the failure to assert any right
               the  Executive  or the  Company  may have  hereunder,  including,
               without  limitation,  the  right of the  Executive  to  terminate
               employment for Good Reason or during a Window Period  pursuant to
               Section  3(c) of this  Agreement,  shall  not be  deemed  to be a
               waiver of such provision or right or any other provision or right
               of this Agreement.

                    (h) This  Agreement  shall  become  effective as of July 31,
               2000 (the "Agreement Effective Date "), and upon effectiveness of
               this  Agreement,  the  Original  Agreement  shall be amended  and
               restated in its entirety to read as set forth herein.

                                        21
<PAGE>

                  IN WITNESS  WHEREOF,  the  Executive has hereunto set his hand
and, pursuant to the authorization from its Board of Directors,  the Company has
caused  these  presents to be executed in its name on its behalf,  all as of the
day and year first above written.

                                                       LENNOX INTERNATIONAL INC.
                                                       -------------------------

                                                       By:----------------------
                                                       Name:--------------------
                                                       Title:-------------------

                                                       EXECUTIVE

                                                       -------------------------
                                                       SignatureExhibit 4.27

                    THIRD FORBEARANCE AND AMENDMENT AGREEMENT

         THIS THIRD FORBEARANCE AND AMENDMENT AGREEMENT (this "Agreement"),
dated as of September 28, 2000, is made by and between PARLUX, LTD., a New York
corporation ("Borrower"), PARLUX FRAGRANCES, INC., a Delaware corporation
("Parent") and GENERAL ELECTRIC CAPITAL CORPORATION, a New York corporation
acting in its capacities as the Agent and the sole Lender under the Credit
Agreement described below ("GE Capital").

                              W I T N E S S E T H:

         WHEREAS, GE Capital, Parent and Borrower have entered into certain
financing arrangements pursuant to the Credit Agreement, dated as of May 24,
1997, as amended, by and among GE Capital, Parent and Borrower (as the same may
be amended, modified, supplemented, extended, renewed, restated or replaced from
time to time, the "Credit Agreement"); and

         WHEREAS, as of the date hereof, Borrower is in default under the Credit
Agreement as more particularly described as the Specified Defaults below; and

         WHEREAS, the Specified Defaults constitute Events of Default under the
Credit Agreement; and

         WHEREAS, GE Capital, Parent and Borrower are parties to that certain
Forbearance and Amendment Agreement, dated as of May 25, 2000, and that certain
Amended and Restated Forbearance and Amendment Agreement, dated as of August 18,
2000, whereby GE Capital agreed to forbear from exercising certain of its rights
and remedies and provide certain further Revolving Credit Loans and other
financial accommodations to Borrower until August 29, 2000 and September 29,
2000, respectively;

         WHEREAS, Borrower has requested that GE Capital continue to forbear
from exercising its rights as a result of the Specified Defaults, which are
continuing, and that GE Capital continue to provide further Revolving Credit
Loans and other financial accommodations to Borrower notwithstanding the
Specified Defaults; and

         WHEREAS, GE Capital is willing to agree to continue to forbear from
exercising certain of its rights and remedies and continue to provide certain
further Revolving Credit Loans and other financial accommodations to Borrower
for the period and on the terms and conditions specified herein;

         NOW, THEREFORE, in consideration of the foregoing, and the respective
agreements, warranties and covenants contained herein, the parties hereto agree,
covenant and warrant as follows:

<PAGE>

SECTION 1. DEFINITIONS

         1.1 Interpretation. All capitalized terms used herein (including the
recitals hereto) shall have the respective meanings assigned thereto in the
Credit Agreement unless otherwise defined herein.

         1.2 Additional Definitions. As used herein, the following terms shall
have the respective meanings given to them below and the Credit Agreement is
hereby amended to include, in addition and not in limitation, each of the
following definitions:

                  (a) "Specified Defaults" shall mean the failure on the part of
the Credit Parties to comply with the following covenants during or as of the
end of the periods described below: (i) the Restricted Payment covenant in
Section 6.15 of the Credit Agreement during the Fiscal Months ended December 31,
1999, January 31, 2000, February 28, 2000, March 31, 2000, April 30, 2000 and
May 31, 2000, (ii) the employee and officer loan covenant in Section 6.2(iii) of
the Credit Agreement during the Fiscal Months ended December 31, 1999, January
31, 2000, February 28, 2000, March 31, 2000, April 30, 2000 and May 31, 2000,
(iii) the minimum Tangible Net Worth covenant in part (b) of Schedule 6.11 to
the Credit Agreement as of the end of the Fiscal Quarters ended December 31,
1999 and March 31, 2000, (iv) the minimum Fixed Charge Coverage Ratio in part
(c) of Schedule 6.11 to the Credit Agreement for the Fiscal Months ended
December 31, 1999, January 31, 2000, February 28, 2000, March 31, 2000, April
30, 2000 and May 31, 2000, (v) the maximum Capital Expenditure covenant in part
(f) of Schedule 6.11 for the Credit Agreement for the Fiscal Year ended March
31, 2000, and (vi) the minimum Current Ratio in part (d) of Schedule 6.11 to the
Credit Agreement for the Fiscal Quarter ended March 31, 2000.

                  (b) "Forbearance Period" shall have the meaning set forth in
Section 3.2(a) hereof.

SECTION 2. ACKNOWLEDGMENTS

         2.1 Acknowledgment of Obligations. Each of Borrower and Parent hereby
acknowledges, confirms and agrees that as of the close of business on September
28, 2000, Borrower and Parent are indebted to GE Capital in respect of the
Revolving Credit Loans and the Letter of Credit Obligations in the aggregate
principal amount of $11,983,656.18. All such Obligations, together with interest
accrued and accruing thereon, and fees, costs, expenses and other charges now or
hereafter payable by Borrower or Parent to GE Capital, are unconditionally owing
by Borrower and Parent to GE Capital, all without offset, defense or
counterclaim of any kind, nature or description whatsoever.

         2.2 Acknowledgment of Liens. Each of Borrower and Parent hereby
acknowledges, confirms and agrees that GE Capital has and shall continue to have
valid, enforceable and perfected first-priority liens upon and security
interests in the Collateral heretofore granted to GE Capital pursuant to the
Loan Documents or otherwise granted to or held by GE Capital.

                                       2
<PAGE>

         2.3 Binding Effect of Documents. Each of Borrower and Parent hereby
acknowledges, confirms and agrees that: (a) each of the Loan Documents to which
it is a party has been duly executed and delivered to GE Capital by such Credit
Party, and each is in full force and effect as of the date hereof, (b) the
agreements and obligations of such Credit Party contained in such documents and
in this Agreement constitute the legal, valid and binding obligations of such
Credit Party, enforceable against it in accordance with their respective terms,
and such Credit Party has no valid defense to the enforcement of such
obligations, and (c) GE Capital is and shall be entitled to the rights, remedies
and benefits provided for it in the Loan Documents and applicable law.

SECTION 3. FORBEARANCE IN RESPECT OF SPECIFIED DEFAULTS

         3.1 Acknowledgment of Defaults. Each of Borrower and Parent hereby
acknowledges and agrees that the Specified Defaults have occurred and are
continuing and constitute Events of Default which entitle GE Capital to exercise
its rights and remedies under the Loan Documents, applicable law or otherwise.
Each of Borrower and Parent hereby acknowledges and agrees that GE Capital has
the presently exercisable right to declare the Obligations to be immediately due
and payable under the terms of the Loan Documents. GE Capital has not waived,
presently does not intend to waive and may never waive any of the Specified
Defaults and nothing contained herein or the transactions contemplated hereby
shall be deemed to constitute any such waiver.

         3.2      Forbearance.

                  (a) In reliance upon the representations, warranties and
covenants of Borrower and Parent contained in this Agreement, and subject to the
terms and conditions of this Agreement and any documents or instruments executed
in connection herewith, GE Capital agrees to forbear from exercising its rights
and remedies under the Loan Documents or applicable law in respect of or arising
out of the Specified Defaults, subject to the conditions, amendments and
modifications contained herein for the period (the "Forbearance Period")
commencing on the date hereof and ending on the earlier of: (i) November 30,
2000 or (ii) the occurrence or existence of any Event of Default other than the
Specified Defaults.

                  (b) Upon the termination of the Forbearance Period, the
agreement herein of GE Capital to forbear shall automatically and without
further action terminate and be of no force and effect, it being expressly
agreed that the effect of such termination will be to permit GE Capital to
exercise such rights and remedies immediately, including, but not limited to,
(i) ceasing to make any further Loans and (ii) the acceleration of all of the
Obligations; in either case without any further notice, passage of time or
forbearance of any kind.

         3.3      No Other Waivers; Reservation of Rights.

                  (a) GE Capital has not waived, is not by this Agreement
waiving, and may never waive, any Events of Default which may be continuing on
the date hereof or any Events of Default which may occur after the date hereof
(whether the same or similar to the Specified Defaults or otherwise), and GE
Capital has not agreed to forbear with respect to any of its rights or remedies
concerning any Events of Default (other than, during the Forbearance Period, the
Specified Defaults to the extent expressly set forth herein), which may have
occurred or are continuing as of the date hereof or which may occur after the
date hereof.

                                       3
<PAGE>

                  (b) Subject to Section 3.2 above (and solely with respect to
the Specified Defaults), GE Capital reserves the right, in its discretion, to
exercise any or all of its rights and remedies under the Credit Agreement and
the other Loan Documents as a result of any Events of Default which may be
continuing on the date hereof or any Event of Default which may occur after the
date hereof, and GE Capital has not waived any of such rights or remedies, and
nothing in this Agreement, and no delay on its part in exercising any such
rights or remedies, should be construed as a waiver of any such rights or
remedies.

         3.4 Fee. In consideration of the agreements set forth herein, Borrower
shall pay to GE Capital a fee in the amount of $100,000, which fee shall be
fully earned as of the date hereof. Such fee is in addition to all other fees,
interest, costs and expenses payable in connection with the Loan Documents and
may be charged by GE Capital to any account of Borrower maintained by GE
Capital. The aforesaid fee shall be fully earned by GE Capital notwithstanding
any failure by Borrower to comply with any other term of this Agreement.

SECTION 4. AMENDMENT AND SUPPLEMENTARY PROVISIONS

         4.1 Extending Commitment Termination Date. Subject to the terms and
conditions of this Agreement, Borrower, Parent and GE Capital hereby agree that,
effective from and after the date of this Agreement (but subject to the
fulfillment of the conditions set forth in Section 6 hereof), the definition of
the term "Commitment Termination Date" in Annex A to the Credit Agreement shall
be amended by deleting the reference to the date "September 29, 2000" in clause
(i) thereof and by substituting in lieu thereof a reference to the date
"November 30, 2000."

         4.2 Additional Reports. Commencing with the date of this Agreement and
continuing thereafter, Borrower shall provide GE Capital on each Business Day
with a report of the Borrower's sales and collections since the preceding
Business Day together with an accounts receivable roll-forward, and Borrower
also shall provide GE Capital with a weekly report of its Inventory balances.

         4.3 Interest Rate. From and after the date of this Agreement, the Loans
and all other Obligations shall bear interest at the Default Rate and the
Default Rate shall be equal to the Prime Rate plus the Applicable Margin plus an
additional two percentage points (2.0%) per annum, and from and after this date
Borrower shall not be entitled to have any Loan bear interest at a Floating
Rate.

                                       4
<PAGE>

         4.4 Access. Commencing with the date of this Agreement, each of Parent
and Borrower shall permit GE Capital (or any Person designated by GE Capital) to
visit and inspect any of the properties of such Credit Party, to examine the
books and records of such Credit Party and such other documents as GE Capital
may reasonably request and make copies thereof or extracts therefrom and to
discuss the affairs, finances, operations and assets of any such Credit Party
with the officers and employees of such Credit Party and with such Credit
Party's independent public accountants, all at such reasonable times and as
often as GE Capital may reasonably request.

         4.5 Replacement Outsider Auditors. Within 15 days after the date of
this Agreement, Parent and Borrower shall retain an independent public
accounting firm acceptable to Lender as their replacement outside auditors.

         4.6 Strict Compliance. GE Capital hereby notifies Parent and Borrower
that, effective from and after the date of this Agreement, GE Capital intends to
enforce all of the provisions of the Loan Documents, including without
limitation the provisions of Section 6.15 of the Credit Agreement that, among
other things, prohibits the Credit Parties from making any further purchases of
the Parent's Stock and that GE Capital expects that the Credit Parties will
strictly comply with the terms of the Loan Documents (including without
limitation Section 6.15 of the Credit Agreement) from and after this date.
Without limiting the generality of the foregoing, Parent and Borrower
acknowledge and agree that any purchase after the date of this Agreement by any
Credit Party of any of the Parent's Stock shall constitute an immediate Event of
Default which will terminate the Forbearance Period and entitle GE Capital to
exercise its rights and remedies as Agent and sole Lender under the Loan
Documents, applicable law or otherwise.

SECTION 5. REPRESENTATIONS, WARRANTIES AND COVENANTS

         Each of Borrower and Parent hereby further represents, warrants and
covenants with and to GE Capital as follows:

         5.1 Representations in Loan Documents. Each of the representations and
warranties made by or on behalf of each Credit Party to GE Capital in any of the
Loan Documents was true and correct when made and in all material respects is,
except for the representation and warranty set forth in the Credit Agreement
relating to the non-existence of an Event of Default, true and correct on and as
of the date of this Agreement with the same full force and effect as if each of
such representations and warranties had been made by such Credit Party on the
date hereof and in this Agreement.

                                       5
<PAGE>

         5.2 Binding Effect of Documents. This Agreement and the other Loan
Documents have been duly executed and delivered to GE Capital by such Credit
Party and are in full force and effect, as modified hereby.

         5.3 No Conflict, Etc. The execution and delivery and performance of
this Agreement by such Credit Party will not violate any law, rule, regulation
or order or contractual obligation of such Credit Party and will not result in,
or require, the creation or imposition of any Lien on any of its properties or
revenues.

         5.4 Additional Events of Default. The parties hereto acknowledge,
confirm and agree that any misrepresentation by any Credit Party in, or any
failure of any Credit Party to comply with the covenants, conditions and
agreements contained in, this Agreement shall constitute an Event of Default
under the Credit Agreement.

SECTION 6. CONDITIONS TO EFFECTIVENESS OF CERTAIN PROVISIONS

         The effectiveness of the terms and provisions of Section 3.2 and
Section 4.1 of this Agreement shall be subject to the receipt by GE Capital of
an original of this Agreement, duly authorized, executed and delivered by
Borrower and Parent together with payment of the fee specified in Section 3.4
above.

SECTION 7. PROVISIONS OF GENERAL APPLICATION

         7.1 Effect of this Agreement. Except as modified pursuant hereto, no
other changes or modifications to the Loan Documents are intended or implied and
in all other respects the Loan Documents are hereby specifically ratified,
restated and confirmed by all parties hereto as of the effective date hereof. To
the extent of conflict between the terms of this Agreement and the other Loan
Documents, the terms of this Agreement shall control. The Credit Agreement and
this Agreement shall be read and construed as one agreement.

         7.2 Costs and Expenses. Borrower absolutely and unconditionally agrees
to pay to GE Capital, on demand by GE Capital at any time and as often as the
occasion therefore may require, whether or not all or any of the transactions
contemplated by this Agreement are consummated: all fees and disbursements of
any counsel to GE Capital in connection with the preparation, negotiation,
execution, or delivery of this Agreement and any agreements delivered in
connection with the transactions contemplated hereby and expenses which shall at
any time be incurred or sustained by GE Capital or any participant of GE Capital
or any of their respective directors, officers, employees or agents as a
consequence of or in any way in connection with the preparation, negotiation,
execution, or delivery of this Agreement and any agreements prepared,
negotiated, executed or delivered in connection with the transactions
contemplated hereby.

         7.3 Binding Effect. This Agreement shall be binding upon and inure to
the benefit of each of the parties hereto and their respective successors and
assigns.

                                       6
<PAGE>

         7.4 Survival of Representations and Warranties. All representations and
warranties made in this Agreement or any other document furnished in connection
with this Agreement shall survive the execution and delivery of this Agreement
and the other documents, and no investigation by GE Capital or any closing shall
affect the representations and warranties or the right of GE Capital to rely
upon them.

         7.5      Release.

                  (a) In consideration of the agreements of GE Capital contained
herein and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, each of Borrower and Parent, on
behalf of itself and its successors, assigns, and other legal representatives,
hereby absolutely, unconditionally and irrevocably releases, remises and forever
discharges GE Capital, and its successors and assigns, and its present and
former shareholders, affiliates, subsidiaries, divisions, predecessors,
directors, officers, attorneys, employees, agents and other representatives (GE
Capital and all such other Persons being hereinafter referred to collectively as
the "Releasees" and individually as a "Releasee"), of and from all demands,
actions, causes of action, suits, covenants, contracts, controversies,
agreements, promises, sums of money, accounts, bills, reckonings, damages and
any and all other claims, counterclaims, defenses, rights of set-off, demands
and liabilities whatsoever (individually, a "Claim" and collectively, "Claims")
of every name and nature, known or unknown, suspected or unsuspected, both at
law and in equity, which such Credit Party or any of its successors, assigns, or
other legal representatives may now or hereafter own, hold, have or claim to
have against the Releasees or any of them for, upon, or by reason of any
circumstance, action, cause or thing whatsoever which arises at any time on or
prior to the day and date of this Agreement, including, without limitation, for
or on account of, or in relation to, or in any way in connection with the Credit
Agreement or any of the other Loan Documents or transactions thereunder or
related thereto.

                  (b) Each of Borrower and Parent understands, acknowledges and
agrees that its release set forth above may be pleaded as a full and complete
defense and may be used as a basis for an injunction against any action, suit or
other proceeding which may be instituted, prosecuted or attempted in breach of
the provisions of such release.

                  (c) Borrower and Parent agree that no fact, event,
circumstance, evidence or transaction which could now be asserted or which may
hereafter be discovered shall affect in any manner the final, absolute and
unconditional nature of the release set forth above.

         7.6 Covenant Not to Sue. Each of Borrower and Parent, on behalf of
itself and its successors, assigns, and other legal representatives, hereby
absolutely, unconditionally and irrevocably, covenants and agrees with and in
favor of each Releasee that it will not sue (at law, in equity, in any
regulatory proceeding or otherwise) any Releasee on the basis of any Claim
released, remised and discharged by such Credit Party pursuant to Section 7.5
above. If Borrower, Parent or any of their respective successors, assigns or
other legal representations violates the foregoing covenant, Borrower and
Parent, for themselves and their successors, assigns and legal representatives,
jointly and severally agree to pay, in addition to such other damages as any
Releasee may sustain as a result of such violation, all attorneys' fees and
costs incurred by any Releasee as a result of such violation.

                                       7
<PAGE>

         7.7 Severability. Any provision of this Agreement held by a court of
competent jurisdiction to be invalid or unenforceable shall not impair or
invalidate the remainder of this Agreement.

         7.8 Reviewed by Attorneys. Each of Borrower and Parent represents and
warrants to GE Capital that it (a) understands fully the terms of this Agreement
and the consequences of the execution and delivery of this Agreement, (b) has
been afforded an opportunity to have this Agreement reviewed by, and to discuss
this Agreement and document executed in connection herewith with, such attorneys
and other persons as such Credit Party may wish, and (c) has entered into this
Agreement and executed and delivered all documents in connection herewith of its
own free will and accord and without threat, duress or other coercion of any
kind by any Person. The parties hereto acknowledge and agree that neither this
Agreement nor the other documents executed pursuant hereto shall be construed
more favorably in favor of one than the other based upon which party drafted the
same, it being acknowledged that all parties hereto contributed substantially to
the negotiation and preparation of this Agreement and the other documents
executed pursuant hereto or in connection herewith.

         7.9 Governing Law. EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN ANY OF THE
LOAN DOCUMENTS, IN ALL RESPECTS, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY
AND PERFORMANCE, THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS AND THE OBLIGATIONS
ARISING UNDER THE LOAN DOCUMENTS SHALL BE GOVERNED BY, AND CONSTRUED AND
ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO
CONTRACTS MADE AND PERFORMED IN SUCH STATE, WITHOUT REGARD TO THE PRINCIPLES
THEREOF REGARDING CONFLICTS OF LAWS, AND ANY APPLICABLE LAWS OF THE UNITED
STATES OF AMERICA.

         7.10 Counterparts. This Agreement may be executed in any number of
counterparts, but all of such counterparts shall together constitute but one and
the same agreement.

                                       8
<PAGE>

         IN WITNESS WHEREOF, this Agreement is executed and delivered as of the
day and year first above written.

                                    PARLUX, LTD.

                                    By:      /s/ Frank A. Buttacavoli
                                        ----------------------------------------
                                             Frank A. Buttacavoli
                                             Executive VP/COO/CFO

                                    PARLUX FRAGRANCES, INC.

                                    By:      /s/ Frank A. Buttacavoli
                                        ----------------------------------------
                                             Frank A. Buttacavoli
                                             Executive VP/COO/CFO

                                    GENERAL ELECTRIC CAPITAL CORPORATION,
                                    as the Agent and sole Lender

                                    By:      /s/ Glenn P. Bartley
                                        ----------------------------------------
                                             Glenn P. Bartley
                                             Duly Authorized Signatory

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