Document:

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                                                                   Exhibit 10.46

                   LAURUS MASTER FUND, LTD. - UTEK CORPORATION
                 STRATEGIC ALLIANCE & CONFIDENTIALITY AGREEMENT

This AGREEMENT is made and effective this January 13, 2004 by and between UTEK
CORPORATION ("UTEK), offices located at 202 South Wheeler Street, Plant City,
Florida 33563 and Laurus Master Fund, Ltd. ("LAURUS") offices located at 825
Third Ave, 14th Floor, New York, NY 10022.

The parties hereto agree as follows:

1.       LAURUS seeks to offer value added services, such as technology
         outsourcing, to its current and prospective portfolio companies (the
         "LAURUS Portfolio Companies").

2.       UTEK is in the business of identifying and arranging for the licensing
         and transfer of technologies owned by universities, Federal
         Laboratories and other organizations ("Proprietary Technology") to both
         public and private companies that can utilize these technologies to
         bring new products to the marketplace.

3.       Within forty five (45) days of the date hereof, UTEK will hire an
         individual ("UTEK Employee"), at its own expense, to work out of the
         LAURUS office in New York. UTEK Employee will be engaged solely by
         UTEK, and not as an agent or employee of LAURUS. The UTEK Employee will
         report to UTEK in all matters regarding performance of his/her duties
         which will include, but not be limited to forming consulting
         engagements with Laurus Portfolio Companies (at its sole discretion and
         upon terms it finds favorable in order to facilitate and arrange
         potential Proprietary Technology acquisitions by Laurus Portfolio
         Companies.

4.       In order to facilitate the strategic alliance set forth herein, LAURUS
         will assist UTEK Employee by (i) providing or facilitating
         introductions to such CEO's or other executive management of LAURUS'
         Portfolio Companies, as LAURUS shall determine in its sole discretion
         and (ii) providing office space, telephone, and internet service for
         UTEK Employee within LAURUS' offices at LAURUS' own expense. UTEK
         Employee shall execute and deliver a Nondisclosure, Non-Circumvention,
         Non-Solicitation and Confidentiality Agreement in form and substance
         acceptable to LAURUS as a precondition (iii) to being given access to
         office space at LAURUS and (iv) to being introduced to any proprietary
         or confidential information pertaining to LAURUS or the business of
         LAURUS as it is currently conducted or may be conducted in the future.

5.       In consideration for this Strategic Alliance, UTEK will pay LAURUS a
         five (5) percent success fee (the "Success Fee"), in like kind, on all
         gross consideration received by UTEK for all consulting engagements,
         subsequent technology licenses and transfers or other remuneration
         received by UTEK in respect of transactions contemplated hereunder with
         LAURUS Portfolio Companies (each, a "UTEK SALE"), while this contract
         is in effect. All cash Success Fees due and payable to LAURUS
         hereunder, shall be paid to LAURUS within 30 days following UTEK's
         receiving cash compensation for such UTEK Sale to a LAURUS Portfolio
         Company. All Success Fees payable to LAURUS in capital stock shall be
         deemed paid to LAURUS upon the vesting of UTEK's interest in such
         capital stock, provided, however, that UTEK shall not be required to
         deliver certificates to LAURUS evidencing LAURUS interest in such
         capital stock until the earlier to occur of (a) each one year
         anniversary of such UTEK sale, (b) the date upon which the transaction
         underlying such UTEK Sale is terminated (other than by the expiration
         thereof )(an "Early Termination") and (c) the date upon which all
         shares of capital stock payable to UTEK pursuant to the UTEK Sale are
         received by UTEK. LAURUS' Success Fee for each UTEK Sale shall be
         deemed to be fully earned on the date the UTEK Sale is consummated, and
         shall not be subject to any rebate or proration for any reason other
         than the occurrence of an Early Termination.

6.       The term of this mutual, non-exclusive, Strategic Alliance Agreement is
         three (3) years, commencing on the date above.

7.       Either party may terminate this Agreement at any time, with or without
         cause, upon sixty (60) days prior written notice.

8.       During the term of this Agreement, neither party hereto shall disclose
         to anyone any confidential information, except as may be required by a
         court of law or government agency. "Confidential Information" for the
         purposes of this Agreement shall include proprietary and confidential
         information such as, but not limited to, technology plans, research and
         development plans, designs, models, financial projections, software,
         product specifications, marketing plans, patent applications,
         disclosures and new concepts of any party hereto.

         Confidential information shall not include any information that:

                  a. Is disclosed without restriction.

                  b. Becomes publicly available through no act of the recipient.

                  c. Is rightfully received by either party from a third party.

                  d. Is disseminated in publications.

9.       If any of LAURUS' Portfolio Companies shall request Confidential
         Information of UTEK or Proprietary Technology to determine its interest
         in licensing or entering into a consulting agreement with respect to
         specific Proprietary Technology property, UTEK will require that the
         LAURUS Portfolio Company execute and deliver a confidentiality and
         non-disclosure agreement. A copy of this and all other signed
         agreements with LAURUS Portfolio Companies will be provided to LAURUS
         by UTEK within three business days of the execution and delivery by the
         LAURUS Portfolio Company thereof.

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10. This Agreement shall be governed by and be construed in accordance with the
laws of the State of New York.

11. UTEK hereby agrees that is shall indemnify and hold LAURUS, its officers,
directors, and employees harmless, against any losses, claims, damages or
liabilities, joint or several, to which LAURUS or such persons may become
subject arising, directly or indirectly, to the extent they arise from actions
taken by UTEK in connection with this Agreement or by the negligence or willful
acts of UTEK or any of its employees or agents.

12. With respect to claims, damages or liabilities arising in respect of any
individual transaction consummated in connection with this Agreement, LAURUS
hereby agrees that is shall indemnify and hold UTEK, its officers, directors,
and employees harmless, against any losses, claims, damages or liabilities,
joint or several, to which UTEK or such persons may become subject arising,
directly or indirectly, from the gross negligence or wilfull misconduct of
LAURUS from actions taken by LAURUS in connection with this Agreement, however
the amount of such indemnity shall not exceed the consideration actually
received by LAURUS in connection with such individual transaction under this
Agreement.

13. This Agreement constitutes the final understanding and agreement between the
parties with respect to the subject matter hereof and supersedes all prior
negotiations, understandings and agreements between the parties, whether written
or oral. This Agreement may be amended, supplemented or changed, only by an
Agreement in writing, signed by both of the parties.

14. Any notice to be given or otherwise given pursuant to this Agreement shall
be in writing and shall be hand delivered, mailed by certified mail, return
receipt requested or sent by overnight courier service as follows:

UTEK CORPORATION                             LAURUS MASTER FUND, LTD.
202 South Wheeler Street,                    825 Third Ave, 14th Floor,
Plant City, Florida 33563                    New York, NY 10022

         IN WITNESS WHEREOF, this Agreement has been executed by the Parties as
of the date first above written.

UTEK CORPORATION                                  LAURUS MASTER FUND, LTD.

/s/ Clifford M. Gross
-------------------------------                   -----------------------------
By: Clifford M. Gross, Ph.D.                      By: David Grin
Chief Executive Officer                           Director

                                        2<PAGE>

                                                                  EXHIBIT 10.100

                              EMPLOYMENT AGREEMENT

                                     BETWEEN

                          GOODY'S FAMILY CLOTHING, INC.

                                       AND

                                REGIS J. HEBBELER

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                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
<S>                                                                                                               <C>
1.       Definitions..............................................................................................1

2.       Employment...............................................................................................3

3.       Term.....................................................................................................3

4.       Position and Duties; Business Time.......................................................................3

5.       Compensation.............................................................................................3

6.       Termination of Employment................................................................................5

7.       Obligations of the Company Upon Termination..............................................................6

8.       Change of Control........................................................................................8

9.       Non-exclusivity of Rights................................................................................8

10.      Full Settlement..........................................................................................8

11.      Arbitration of Disputes..................................................................................8

12.      Confidential Information and Nonsolicitation.............................................................8

13.      Successors...............................................................................................9

14.      Miscellaneous............................................................................................9
</TABLE>

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                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT (the "Agreement"), by and between GOODY'S
FAMILY CLOTHING, INC., a Tennessee corporation (the "Company"), and REGIS J.
HEBBELER (the "Executive"), shall be effective as of the 28th day of January,
2004.

                                    RECITALS:

         A.       The Executive has for some time served as Vice President and
General Counsel of the Company. The Company and the Executive have entered into
a Severance Agreement dated September 16, 1998 (the "Existing Severance
Contract"). The Company has promoted the Executive to Senior Vice President and
General Counsel of the Company.

         B.       The Company wishes to assure the continued service of the
Executive. The Company desires to recognize the Executive's commitment to the
Company and to confirm the right of the Executive to certain employment,
compensation and severance benefits. To attain that end, the Company and the
Executive wish to enter into this Employment Agreement (the "Agreement").

         NOW, THEREFORE, in consideration of the promises and mutual covenants
herein contained, and other good and valuable consideration, the Company and the
Executive do hereby agree as follows:

                  1.       Definitions.

                  (a)      "Accrued Obligations" shall mean (i) the Executive's
Base Salary through the Date of Termination, (ii) any amounts deferred by the
Executive and not yet paid by the Company pursuant to a valid election to defer
the receipt of all or a portion of such payments made in accordance with any
plan of deferred compensation sponsored by the Company and any earned but unpaid
vacation pay for the current year, (iii) any amounts or benefits owing to the
Executive or to the Executive's beneficiaries under the then applicable employee
benefit plans or policies of the Company and (iv) any amounts owing to the
Executive for reimbursement of expenses properly incurred by the Executive
through the Date of Termination and which are reimbursable in accordance with
the reimbursement policy of the Company described in Section 5(e).

                  (b)      "Base Salary" shall have the meaning set forth in
Section 5(a).

                  (c)      "Board" shall mean the Board of Directors of the
Company.

                  (d)      "Cause" shall mean that the Executive has, in the
judgment of a majority of the Board (i) committed a felony, or committed an act
of fraud, embezzlement or theft in connection with his duties with the Company
or in the course of his employment with the Company; (ii) willfully caused
damage to property of the Company; (iii) been convicted of a criminal offense
(either a misdemeanor involving acts of dishonesty, theft or moral turpitude, or
a felony); or (iv) engaged in a willful and material breach of his obligations
under Section 4 of this Agreement which

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breach (under this clause iv) has been communicated to the Executive with
specificity by written notice, and which has not been cured to the reasonable
satisfaction of the Board within a reasonable period of time, which shall not be
less than ten (10) days, nor more than thirty (30) days, following receipt of
such written notice by the Executive. The Board shall provide the Executive with
an opportunity to meet with the Board in order to provide the Executive an
opportunity to refute or explain acts or omissions referred to in such written
notice. For the purpose of this Section, no act or omission shall be considered
willful unless done or omitted to be done in bad faith and without reasonable
belief that such act or omission was done in the best interest of the Company.

                  (e)      A "Change of Control" of the Company shall mean and
shall be deemed to have occurred if (i) any person or group (within the meaning
of Rule 13d-3 of the rules and regulations promulgated under the Securities
Exchange Act of 1934, as amended (the "1934 Act Rules")), other than Robert M.
Goodfriend, members of his immediate family, his affiliates, trusts or private
foundations established by or on his behalf, and the heirs, executors or
administrators of Robert M. Goodfriend, shall acquire in one or a series of
transactions, whether through sale of stock or merger, more than 50% of the
outstanding voting securities of the Company or any successor entity of the
Company, (ii) all or substantially all of the Company's assets are sold or (iii)
the shareholders of the Company approve a complete liquidation or dissolution of
the Company.

                  (f)      "Change of Control Date" shall mean (i) the closing
date on which a Change of Control shall have occurred, (ii) in the case of a
sale of all or substantially all of the Company's assets, the closing date on
which a Change of Control shall have occurred after shareholder approval is
obtained, or (iii) in the case of complete liquidation or dissolution of the
Company, the date on which shareholder approval is obtained.

                  (g)      "Date of Termination" shall have the meaning set
forth in Section 6(e).

                  (h)      "Disability" shall mean disability whereby the
Executive is unable to render the services provided for by this Agreement by
reason of illness, injury or incapacity (whether physical, mental, emotional or
psychological) for a period of either (i) ninety (90) consecutive days or (ii)
one hundred eighty (180) days in any consecutive three hundred sixty-five (365)
day period.

                  (i)      "Incentive Bonus" shall have the meaning as set forth
in Section 5(b).

                  (j)      "Incentive Plan" shall have the meaning as set forth
in Section 5(b).

                  (k)      "Notice of Termination" shall have the meaning as set
forth in Section 6(d).

                  (l)      "Qualified Plan" shall mean any retirement plan
maintained by the Company which is intended to meet the requirements of the
Internal Revenue Code of 1986, as amended.

                  (m)      "Subsidiary" shall mean any majority-owned subsidiary
of the Company.

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                  (n)      "Supplemental Payment Date" shall have the same
meaning as set forth in Section 7(c).

                  2.       Employment. The Company has employed the Executive,
and the Executive has agreed to continue to be employed by the Company as Senior
Vice President and General Counsel of the Company. The Executive has held the
title of Vice President and General Counsel of the Company since May 7, 1995.

                  3.       Term. The Executive shall be considered an at-will
employee and his employment may be terminated by either party subject to the
obligations of the parties upon such termination as set forth in this Agreement.

                  4.       Position and Duties; Business Time.

                  (a)      Position and Duties. The Executive shall serve as
Senior Vice President, General Counsel of the Company or another position which
shall be either of comparable rank or a promotion and shall continue to have
such responsibilities and duties as assigned to him by the Chief Executive
Officer of the Company, the Chief Operating Officer of the Company or the Board
from time to time.

                  (b)      Business Time. The Executive agrees to devote his
full business time to the business and affairs of the Company and to use his
best efforts to perform faithfully and efficiently the responsibilities assigned
to him hereunder, to the extent necessary to discharge such responsibilities,
except for:

                           (i)      time spent in managing his personal,
financial and legal affairs and serving on corporate, civic or charitable boards
or committees, in each case only if and to the extent not substantially
interfering with the performance of such responsibilities, and

                           (ii)     periods of vacation to which he is entitled,
periods of illness and other absences beyond his control.

It is expressly understood and agreed that the continued service by the
Executive on any boards and committees on which he is serving or with which he
is otherwise associated immediately preceding the date hereof, or his service on
any other boards and committees shall not be deemed to interfere with the
performance of the Executive's services to the Company; provided, that in the
case of boards or committees on which the Executive is not currently serving the
Executive provides written notice of his intention to serve and the Board
thereafter approves such service (other than non-compensatory positions with
local boards or committees e.g. charitable, chamber of commerce or homeowner
associations which shall not require approval).

                  5.       Compensation. The Executive shall be entitled to the
following compensation and benefits for as long as the Executive remains an
employee of the Company:

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                  (a)      Base Salary. The Executive shall receive a base
salary (the "Base Salary") payable in equal bi-weekly installments (or such
other installments as are provided by the Company for employees generally) at an
annual rate of $175,000. The Company shall review the Base Salary periodically
and in light of such review may, in its sole discretion, increase (but not
decrease) the Base Salary taking into account any change in the Executive's
responsibilities, increases in compensation of other executives with comparable
responsibilities, performance of the Executive and other pertinent factors, and
such adjusted Base Salary shall then constitute the "Base Salary" for purposes
of this Agreement.

                  (b)      Short Term Incentive Plan Bonus. The Company has
established a "Short Term Incentive Plan" (the "Incentive Plan") under which the
Executive shall be eligible to participate for each fiscal year he holds the
position stated in Section 2 and shall be eligible to receive an annual
incentive target bonus equal to a percentage of the Base Salary earned by
Executive (as such percentage level of the target bonus may be approved and
available from time to time to executives of the Company holding comparable
positions) during each fiscal year based on performance and other specific
objectives adopted by the Compensation Committee of the Board (the "Incentive
Bonus").

                  (c)      Incentive and Savings Plans; Retirement and Death
Benefit Programs. The Executive shall be entitled to participate in all
incentive and savings plans and programs, including stock option plans and other
equity-based compensation plans, and in all employee retirement, executive
retirement and executive death benefit plans on a basis no less favorable than
that basis generally available to executives of the Company holding comparable
positions or having comparable responsibilities.

                  (d)      Other Benefit Plans. The Executive, his spouse and
their eligible dependents (as defined in, and to the extent permitted by, the
applicable plan), as the case may be, shall be entitled to participate in or be
covered under all medical, dental, group disability, group life, severance plans
and programs of the Company to the extent such plans and programs are generally
available to executives of the Company holding comparable positions or having
comparable responsibilities.

                  (e)      Other Perquisites. The Executive shall also be
entitled to:

                           (i)      prompt reimbursement for all reasonable
expenses incurred by the Executive in accordance with the policies and
procedures of the Company;

                           (ii)     three (3) weeks paid vacation, such paid
vacation time to be increased (but not decreased) in accordance with Company
policy;

                           (iii)    an automobile allowance of $500 per month
shall be paid by the Company together with gasoline expenses for such automobile
in accordance with the Company's policies and procedures with respect thereto;
and

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                           (iv)     an office or offices suitable for an
executive officer with secretarial and other assistance as shall reasonably be
required by the Executive.

                           (f)      [Intentionally Omitted]

                           (g)      Existing Employment Contract. The Executive
and Company acknowledge that all the terms of the Existing Severance Contract
are in full force and effect and there has not been any breach of such Existing
Severance Contract.

                  6.       Termination of Employment.

                  (a)      Disability; Death. The Company may terminate the
Executive's employment after having established the Executive's Disability, by
giving to the Executive written notice of its intention to terminate his
employment, and his employment with the Company shall terminate effective on the
thirtieth (30th) day after receipt of such notice if the Executive shall fail to
return to full-time performance of her duties within thirty (30) days after such
receipt. If the Executive dies during the term of this Agreement, his employment
hereunder shall be deemed to cease as of the date of his death.

                  (b)      Voluntary Termination by the Executive.
Notwithstanding anything in this Agreement to the contrary, the Executive may,
upon not less than thirty (30) days' written notice to the Company, voluntarily
terminate employment for any reason.

                  (c)      Termination by the Company. The Company at any time
may terminate the Executive's employment for Cause or without Cause.

                  (d)      Notice of Termination. Any termination by the Company
for Cause or by the Executive shall be communicated by a written Notice of
Termination to the other party hereto given in accordance with Section 14(c).
For purposes of this Agreement, a "Notice of Termination" means a written notice
given in the case of a termination for Cause which (i) indicates the specific
termination provision in this Agreement relied upon, (ii) sets forth in
reasonable detail the facts and circumstances claimed to provide a basis for
termination of the Executive's employment under the provision so indicated, and
(iii) if the termination date is other than the date of receipt of such notice,
specifies the termination date (which date shall be not more than thirty (30)
days after the receipt of such notice).

                  (e)      Date of Termination. For the purpose of this
Agreement, the term "Date of Termination" means (i) in the case of a termination
for which a Notice of Termination is required, the date of receipt of such
Notice of Termination or, if later, the date specified therein, as the case may
be, and (ii) in all other cases, the actual date on which the Executive's
employment terminates.

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                  7.       Obligations of the Company Upon Termination. Upon
termination of the Executive's employment with the Company, the Company shall
have the following obligations:

                  (a)      Death, Disability and Retirement. If the Executive's
employment is terminated by reason of the Executive's death, Disability, or
retirement on or after the attainment of age sixty-five (65), the Company shall
have no further obligations to the Executive's legal representatives under this
Agreement other than payment of the Accrued Obligations. If the Executive's
employment is terminated by reason of the Executive's death or Disability, the
Company shall have the additional obligation, subject to the terms of the
Incentive Plan and further provided that the Executive has been employed by the
Company for the first six (6) months of the then applicable fiscal year, to pay
a cash amount equal to a portion of the Incentive Bonus, the product of a
fraction, the numerator of which is the number of days elapsed since the date
the Incentive Plan began for the applicable fiscal year through the date of the
Disability or the date of death of the Executive, and the denominator of which
is the total number of days of the applicable fiscal year for such Incentive
Plan. Unless otherwise directed by the Executive (or, in the case of the
Incentive Plan or a Qualified Plan, as may be required by such Incentive Plan or
Qualified Plan) all Accrued Obligations shall be paid to the Executive, his
beneficiaries or his estate, as applicable, in a lump sum in cash within thirty
(30) days of the Date of Termination. In the event of the termination of the
Executive by reason of retirement on or after the attainment of age sixty-five
(65), death or Disability, he and/or his named beneficiaries, as the case may
be, shall be entitled to the benefits available through the Company sponsored
plans and programs. With regard to the termination of the Executive's employment
by reason of the Executive's death, retirement on or after the attainment of age
sixty-five (65) or Disability, the Company shall, for a period of six (6) months
after the Executive's Date of Termination, pay the entire COBRA premium under
any Company medical and dental program that the Executive (and his spouse and
eligible dependents) was participating in prior to the termination of
employment. The Company's premium obligations in the preceding two sentences
shall exclude normal employee contributions paid by the Executive prior to the
Date of Termination. In addition to the foregoing, in the event of termination
of the Executive's employment by reason of the death or Disability of the
Executive, all unvested stock options held by the Executive shall become fully
vested, effective on the Date of Termination, and shall thereafter be
exercisable in accordance with the provisions of the applicable Option Plan
(including, without limitation, Sections 5 and 6 thereof) and Option Agreement.

                  (b)      Termination by the Company for Cause and Voluntary
Termination by the Executive. If the Executive's employment shall be terminated
for Cause or voluntarily terminated by the Executive the Company shall pay the
Executive the Accrued Obligations. The Executive shall be paid all such Accrued
Obligations in a lump sum in cash within thirty (30) days of the Date of
Termination and the Company shall have no further obligations to the Executive
under this Agreement, unless otherwise required by a Qualified Plan or specified
pursuant to a valid election to defer the receipt of all or a portion of such
payments made in accordance with any plan of deferred compensation sponsored by
the Company.

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                  (c)      Other Termination of Employment. If the Company
terminates the Executive's employment other than for Cause, death or Disability,
the Company shall pay and provide to the Executive the following:

                           (i)      Severance Payment. The Company shall pay to
the Executive in a lump sum in cash or certified check within fifteen (15) days
after the Date of Termination a severance payment equal to the sum of the
following amounts (other than amounts payable from the Incentive Plan or
Qualified Plans, non-qualified retirement plans and deferred compensation plans,
which amounts shall be paid in accordance with the terms of such plans):

                                    (A)      all Accrued Obligations;

                                    (B)      a cash amount equal to six (6)
months of the Executive's Base Salary at the rate in effect as of the date when
the Notice of Termination was given;

                                    (C)      subject to the terms of the
Incentive Plan and further provided that the Executive has been employed by the
Company for the first six (6) months of the then applicable fiscal year, a cash
amount equal to a portion of the Incentive Bonus, the product of a fraction, the
numerator of which is the number of days elapsed since the date the Incentive
Plan began for the applicable fiscal year through the date of such Termination
or termination without Cause, and the denominator of which is the total number
of days of the applicable fiscal year for such Incentive Plan.

In addition, if the Executive has not accepted employment from a subsequent
employer prior to the date which is seven (7) months from the Date of
Termination (the "Supplemental Payment Date"), commencing on the Supplemental
Payment Date the Company shall pay the Executive an amount equal to fifty
percent (50%) of his monthly Base Salary at the rate in effect as of the date
when the Notice of Termination was given in equal monthly installments until the
earlier of (i) the payment of the sixth (6th) monthly installment; or (ii) the
date of the Executive's acceptance of employment from a subsequent employer. The
Executive shall notify the Company immediately upon his acceptance of any such
new employment if secured prior to the payment by the Company of such six (6)
additional monthly installments.

                  (d)      Release. As a condition precedent to the receipt of
any termination benefits payable to the Executive under this Section 7, the
Executive agrees to execute a general release among other things releasing the
Company from any obligation or liability (other than those contained in Sections
7, 8, 9, 10, 11, 13 and 14 hereof, to the extent an obligation under any such
section arose at or prior to the Date of Termination and remains unfulfilled).
Such release shall exclude the Executive's rights under any Qualified Plan.

                  (e)      Discharge of Company's Obligations. Subject to the
performance of its obligations under Sections 7, 8, 9, 10, 11, 13 and 14 (and
then, only to the extent an obligation under any such section arose at or prior
to the Date of Termination and remains unfulfilled), the

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Company shall have no further obligations to the Executive under this Agreement
in respect of any termination of employment.

                  8.       Change of Control. Upon the occurrence of a Change of
Control, the Company shall pay the Executive, as consideration for assisting the
Company in bringing about a successful transaction, an amount equal to twelve
(12) months of the Executive's Base Salary at the rate in effect as of the
Change of Control Date. Such amount shall be payable in a lump sum in cash or
certified check within five (5) days after the Change of Control Date.

                  9.       Non-exclusivity of Rights. Nothing in this Agreement
shall prevent or limit the Executive's continuing or future participation in any
benefit, bonus, incentive or other plan or program provided by the Company and
for which the Executive may qualify, nor shall anything herein limit or
otherwise prejudice such rights as the Executive may have under any other
agreements with the Company, including, but not limited to stock option
agreements. Amounts which are vested benefits or which the Executive is
otherwise entitled to receive under any plan or program of the Company at or
subsequent to the Date of Termination shall be payable in accordance with such
plan or program.

                  10.      Full Settlement. The Executive shall not be obligated
to seek other employment by way of mitigation of the amounts payable to the
Executive under any of the provisions of this Agreement.

                  11.      Arbitration of Disputes. In the event that a claim
for payment or benefits under this Agreement is disputed, the Company and the
Executive agree to submit such dispute to final and binding arbitration with
United States Arbitration and Mediation, Inc. ("USAM") in Knoxville, Tennessee
or such other arbitration firm as the Company and the Executive shall mutually
agree. Either party wishing to arbitrate any claim hereunder shall notify the
other party and USAM in writing whereupon USAM shall select a neutral arbitrator
and shall schedule an arbitration hearing within thirty (30) days of receipt of
such notice of arbitration. The arbitration shall be conducted in accordance
with the rules and procedures of USAM. The parties agree that any arbitrator's
award may be presented to a court of competent jurisdiction and judgment entered
thereon.

                  12.      Confidential Information and Nonsolicitation.

                  (a)      The Executive shall hold in a fiduciary capacity for
the benefit of the Company all secret or confidential information, knowledge or
data, including without limitation all trade secrets, relating to the Company,
and its business, (i) obtained by the Executive during his employment by the
Company, and (ii) which is not otherwise publicly known (other than by reason of
an unauthorized act by the Executive) and is subject to efforts that are
reasonable under the circumstances to maintain its secrecy. After termination of
the Executive's employment with the Company, the Executive shall not, without
the prior written consent of the Company, unless compelled pursuant to an order
of a court or other body having

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jurisdiction over such matter, communicate or divulge any such information,
knowledge or data to anyone other than the Company and those designated by it.

                  (b)      Upon termination of the Executive's employment for
any reason, the Executive, for the twelve (12) month period following the Notice
of Termination, shall not, on his own behalf or on behalf of any person or
entity, directly or indirectly solicit or aid in the solicitation of any
employees of the Company to leave their employment. In the event the Executive
violates the terms of Section 12(a) or this Section 12(b), the Employee shall
forfeit the right to all salary and benefits that the Executive and/or his
family members were otherwise entitled pursuant to the terms of Section 7. Also,
in the event that this Section 12 is determined to be unenforceable in part, it
shall be construed to be enforceable to the maximum extent permitted by law.

                  (c)      The Executive agrees that the covenants of
confidentiality and non-solicitation contained in this Section 12 are reasonable
covenants under the circumstances and necessary to protect the business
interests and properties of the Company. The Executive agrees that irreparable
loss and damage will be suffered by the Company should the Executive breach any
of the covenants contained in this Section 12. Accordingly, the Executive agrees
that the Company, in addition to all remedies provided at law or in equity,
shall be entitled to a temporary restraining order and temporary and permanent
injunctions to prevent a breach or contemplated breach of any of the covenants
contained in this Section 12.

                  13.      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
legal representatives.

                  (b)      This Agreement shall inure to the benefit of and be
binding upon the Company and its successors. The Company shall require any
successor to all or substantially all of the business and/or assets of the
Company, whether direct or indirect, by purchase, merger, consolidation,
acquisition of stock, or otherwise, expressly to assume and agree to perform
this Agreement in the same manner and to the same extent as the Company would be
required to perform if no such succession had taken place.

                  14.      Miscellaneous.

                  (a)      Applicable Law. This Agreement shall be governed by
and construed in accordance with the laws of the State of Tennessee, applied
without reference to principles of conflict of laws.

                                       9
<PAGE>

                  (b)      Amendments. This Agreement may not be amended or
modified otherwise than by a written agreement executed by the parties hereto or
their respective successors and legal representatives.

                  (c)      Notices. All notices and other communications
hereunder shall be in writing and shall be given by hand delivery to the other
party, by overnight delivery or by registered or certified mail, return receipt
requested, postage prepaid, addressed as follows:

                  If to the Executive:   at the address listed on the last page
                                         hereof

                  If to the Company:     Goody's Family Clothing, Inc.
                                         400 Goody's Lane
                                         P.O. Box 22000
                                         Knoxville, Tennessee 37933-2000
                                         Attention: Sr. Vice President,
                                                    Human Resources

(with a copy to the attention of the Secretary or to such other address as
either party shall have furnished to the other in writing in accordance
herewith). Communications delivered by hand or by overnight delivery shall be
deemed received on the date of delivery and communications sent by registered or
certified mail shall be deemed received three (3) business days after the
sending thereof.

                  (d)      Tax Withholding. 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.

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

                  (g)      Entire Agreement. This Agreement expresses the entire
understanding and agreement of the parties regarding the terms and conditions
governing the Executive's employment with the Company, and all prior agreements
governing the Executive's employment with the Company (including, without
limitation, the Existing Severance Contract) shall have no further effect;
provided, however, that except as specifically provided herein, the terms of
this Agreement do not supercede the terms of any grant or award to the Executive
under any stock option program of the Company except as specifically set forth
in Section 7(a) with respect to the vesting and exercisability of stock options.

                                       10
<PAGE>

         IN WITNESS WHEREOF, the Executive has hereunto set his hand and the
Company has caused this Agreement to be executed in its name on its behalf, and
its corporate seal to be hereunto affixed and attested by its Secretary, all
effective as of the day and year first above written.

                                    GOODY'S FAMILY CLOTHING, INC.

                                    By:
                                       -----------------------------------
                                           Robert M. Goodfriend
                                    Title: Chairman and Chief Executive Officer

                                    EXECUTIVE: Regis J. Hebbeler

                                    --------------------------------------
                                    Name: Regis J. Hebbeler

                                    Address:

                                       11

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