Document:

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                           THIRD AMENDMENT TO
                     RECEIVABLES PURCHASE AGREEMENT

      THIS THIRD AMENDMENT (this "Amendment") dated as of May 15,
2000 is entered into among SEQUA RECEIVABLES CORP., a New York
corporation (the "Seller"), SEQUA CORPORATION, a Delaware
corporation (the "Servicer"), LIBERTY STREET FUNDING CORP., a
Delaware corporation (the "Issuer"), and THE BANK OF NOVA
SCOTIA, a Canadian chartered bank acting through its New York
Agency ("BNS"), as administrator(in such capacity, together with
its successors and assigns in such capacity, the
"Administrator").

                             R E C I T A L S
                             ---------------

      1.   The Seller, the Servicer, the Issuer and the
Administrator are parties to that certain Receivables Purchase
Agreement dated as of November 13, 1998, as amended by the First
Amendment, dated as of May 28, 1999 and by the Second Amendment,
dated as of July 12, 1999 (the "Agreement").

      2.   The Seller, the Servicer, the Issuer and the
Administrator desire to amend the Agreement as hereinafter set
forth.

      NOW THEREFORE, for good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the
parties agree as follows:

      1.   Certain Defined Terms.  Capitalized terms which are
           ---------------------
used herein without definition and that are defined in the
Agreement shall have the same meanings herein as in the
Agreement.

      2.   Amendments to Agreement.  The definition of
           -----------------------
"Delinquency Ratio" as set forth in Exhibit I to the Agreement
is hereby amended and restated in its entirety as follows:

           "Delinquency Ratio" means the ratio (expressed as a
            -----------------
percentage and rounded to the nearest 1/100 of 1%, with 5/1000th
of 1% rounded upward) computed as of the last day of each
calendar month by dividing: (a) the aggregate Outstanding
Balance of all Pool Receivables as to which any payment, or part
thereof, remained unpaid 91-120 days from the original due date
for such payment during such month by (b) the Net Receivables
Pool Balance on such day.

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      3.   Representations and Warranties.  Each of the Seller
           ------------------------------
and the Servicer hereby represents and warrants to the
Administrator and the Issuer as follows:

           (a)   Representations and Warranties.  The
                 ------------------------------
      representations and warranties of such Person contained in
      Exhibit III to the Agreement are true and correct as of the
      date hereof (unless stated to relate solely to an earlier
      date, in which case such representations and warranties
      were true and correct as of such earlier date).

           (b)   Enforceability.  The execution and delivery by
                 --------------
      such Person of this Amendment, and the performance of its
      obligations under this Amendment and the Agreement, as
      amended hereby, are within its corporate powers and have
      been duly authorized by all necessary corporate action on
      its part.  This Amendment and the Agreement, as amended
      hereby, are its valid and legally binding obligations,
      enforceable in accordance with its terms.

           (c)   Termination Event.  No Termination Event or
                 -----------------
      Unmatured Termination Event has occurred and is continuing.

      4.   Effectiveness.  This Amendment shall become effective
           -------------
as of the date hereof upon receipt by the Administrator of the
following, each duly executed and dated as of the date hereof
(or such other date satisfactory to the Administrator), in form
and substance satisfactory to the Administrator:

           (a)   counterparts of this Amendment (whether by
      facsimile or otherwise) executed by each of the parties
      hereto;

           (b)   a written statement from Moody's and Standard &
      Poor's that this Amendment will not result in a downgrade
      or withdrawal of the rating of the Notes; and

           (c)   such other documents and instruments as the
      Administrator may reasonably request.

      5.   Effect of Amendment.  Except as expressly amended and
           -------------------
modified by this Amendment, all provisions of the Agreement
shall remain in full force and effect.  After this Amendment
becomes effective, all references in the Agreement (or in any
other Transaction Document) to "the Receivables Purchase
Agreement," "this Agreement," "hereof," "herein" or words of

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similar effect, in each case referring to the Agreement, shall
be deemed to be references to the Agreement as amended by this
Amendment.  This Amendment shall not be deemed to expressly or
impliedly waive, amend or supplement any provision of the
Agreement other than as set forth herein.

      6.   Counterparts.  This Amendment may be executed in any
           ------------
number of counterparts and by different parties on separate
counterparts, and each counterpart shall be deemed to be an
original, and all such counterparts shall together constitute
but one and the same instrument.

      7.   Governing Law.  This Amendment shall be governed by,
           -------------
and construed in accordance with, the internal laws of the State
of New York without reference to conflict of laws principles.

      8.   Section Headings.  The various headings of this
           ----------------
Amendment are inserted for convenience only and shall not affect
the meaning or interpretation of this amendment or the Agreement
or any provision hereof or thereof.

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      IN WITNESS WHEREOF, the parties have executed this
Amendment as of the date first above written.

                                  SEQUA RECEIVABLES CORP.

                                  By:
                                  Name:
                                  Title:

                                  SEQUA CORPORATION

                                  By
                                  Name:
                                  Title:

                                  LIBERTY STREET FUNDING CORP.

                                  By:
                                  Name:
                                  Title:

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                                  THE BANK OF NOVA SCOTIA, as
                                  Administrator

                                  By:
                                  Name:
                                  Title:

                                  Consented and Agreed:
                                  THE BANK OF NOVA SCOTIA, as a
                                  Purchaser under the Liquidity
                                  Agreement

                                  By:
                                  Name:
                                  Title:
                                  Consented and Agreed:
                                  LLOYDS TSB BANK PLC, as a
                                  Purchaser under the Liquidity
                                  Agreement

                                  By:
                                  Name:
                                  Title:

                                  By:
                                  Name:
                                  Title:SWANK, INC.
                         90 PARK AVENUE
                    NEW YORK, NEW YORK 10016

                                            Effective May 1, 2000

The Macht Group
99 High Street
20th Floor
Boston, Massachusetts 02110

Attention: John J. Macht, President

Dear John:

           This will confirm the understanding between The Macht
Group ("Macht") and Swank, Inc. ("Swank") as follows:

           Macht may from time to time bring to Swank's
attention certain potential license arrangements pursuant to
which Swank shall be the exclusive licensee for the manufacture,
promotion, distribution and sale of products under the trademark
or trade name owned by the licensor in such arrangement (each, a
"License"). Macht and Swank hereby agree that if, during the
period from and after May 1, 2000 to and including April 30,
2001, Swank shall enter into any License with a licensor to whom
Swank has not previously been introduced or with whom Swank has
not had previous discussions or business arrangements, Macht will
be entitled to receive an amount equal to one (1%) percent of
Swank's Net Sales (as def1ned below) under and during the term,
including all renewals of the term (the "Term"), of such License.
For purposes of this letter agreement, the term "Net Sales" shall
have the same meaning as set forth in the License executed by
Swank; provided, that if such term is not so defined, the term
"Net Sales" shall mean the gross sales price of goods sold
pursuant to such License less all manufacturing, sales, luxury,
purchase and other taxes of any kind or nature and less trade
discounts, returns, credits and allowances. Amounts payable to
Macht by Swank will be paid contemporaneously with the payment of
royalties by Swank to the licensor under such License. Discounts,
returns, credits and/or allowances not deducted by Swank in
determining amounts payable or paid to Macht at any time and from
time to time under this letter agreement may be deducted from
amounts payable thereafter to Macht. Any amounts not so deducted
by Swank shall be repaid to Swank by Macht promptly upon request
by Swank. In the event of a termination of any License, Swank's
obligation to pay amounts to Macht in respect of such License
shall terminate contemporaneously therewith. Nothing herein shall
require Swank to amend, modify or renew any such License or to
keep any such License in effect.

           Nothing in this letter agreement shall require Swank
to agree to or to enter into any License. The decision to agree
to any License shall be made, in each and every case, by Swank in
its sole and absolute discretion. In addition, nothing in this
letter agreement shall be deemed or construed to confer upon
Macht or any other party any rights or interests, including that
of a third-party beneficiary, in any License.

           This letter agreement constitutes the entire
agreement between Swank and Macht with respect to the subject
matter hereof, supersedes all other agreements and understandings
between Swank and Macht and may not be amended or modified except
by a written instrument signed by both Swank and Macht. Macht may
not, voluntarily or involuntarily, by operation of law or
otherwise, assign, convey, or in any other manner transfer or
encumber, any or all of its rights or delegate any or all of its
duties hereunder without the prior written consent of Swank.
Subject to the foregoing, this letter agreement shall be binding
upon and shall inure to the benefit of the parties hereto and
their respective successors and assigns. This letter agreement
shall be governed by and construed and enforced in accordance
with the laws of the State of New York, without regard to
principles of conflicts or choice of law.

           If the foregoing correctly reflects our
understanding, please sign this letter agreement where indicated
below and return it to Swank. The enclosed copy if for your
records.

                                   Very truly yours,

                                   SWANK, INC.

                                   By:   /s/ John A. Tulin
                                         John A. Tulin, President

AGREED:

THE MACHT GROUP

By: /s/ John J. Macht
   John J. Macht, President

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