Document:

<PAGE>                                                 SECOND AMENDMENT TO
                                                 RECEIVABLES PURCHASE AGREEMENT

         THIS SECOND AMENDMENT (this "Amendment") dated as of July
12, 1999 is entered into among SEQUA RECEIVABLES CORP., a New
York corporation (the "Seller"), SEQUA CORPORATION, a Delaware
corporation (the "Servicer"), LIBERTY STREET FUNDING
CORPORATION, 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 (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 Agreement is hereby
                      -----------------------
amended as follows:

           2.1        Settlement Procedures. Clause (e) (ii) of the Section
                      ---------------------  ---------------
1.4 of the Agreement is amended in its entirety as follows:

                      "(ii) if on any day any of the representations or
warranties in Section l(g), (m) or (t) of Exhibit III is not
true with respect to any Pool Receivable, the Seller shall be
deemed to have received on such day a Collection of such Pool
Receivable in full (Collections deemed to have been received
pursuant to clause (i) and (ii) of this paragraph (e) are
hereinafter sometimes referred to as "Deemed Collections");

<PAGE>
           2.2        Eligible Receivable. Paragraph (a) of the definition
                      ----------------------------------
of "Eligible Receivable" in Exhibit I to the Agreement is
amended in its entirety as follows:

                        "(a) the obligor of which is (i) a United States
             resident; provided, however, if the Obligor of such
             Receivable is a resident of a jurisdiction other than the
             United States, the aggregate Outstanding Balance of all
             Pool Receivables of such Obligor that are Eligible
             Receivables shall not exceed 2% (other than Rolls Royce
             Plc or any Affiliate or Subsidiary thereof, which shall
             not exceed 8%; provided, however, if its short-term rating
             falls below "A-2" by Standard & Poor's or "P-2" by Moody's
             then such amount shall not exceed 2%) of the Net
             Receivables Pool Balance and when added to the aggregate
             Outstanding Balance of all other Eligible Receivables of
             Obligors that are not residents of the United States shall
             not exceed the lesser of (x) 30% of the Net Receivables
             Pool Balance or (y) 50% of the Capital at such time, (ii)
             not a government or a governmental subdivision, affiliate
             or agency; provided, however, if the Obligor of such
             Receivable is a government or a governmental subdivision,
             affiliate or agency, the aggregate Outstanding Balance of
             all Pool Receivables of such Obligor that are Eligible
             Receivables when added to the aggregate Outstanding
             Balance of all other Eligible Receivables of Obligors that
             are governments or governmental subdivisions, affiliates
             or agencies shall not exceed 10% of the Net Receivables
             Pool Balance at such time, (iii) not subject to any action
             of the type described in paragraph (f) of Exhibit V to the
             Agreement, (iv) not an Affiliate of Sequa or any Affiliate
             of Sequa, and (v) not Korean Airlines or any Affiliate of
             Korean Airlines."

             2.3      Excess Concentration.  The definition of "Excess
                      --------------------
Concentration" in Exhibit I to the Agreement is amended in its
entirety as follows:

             " Excess Concentration" means the sum of the amounts by
               --------------------
which the Outstanding Balance of Eligible Receivables of each
Obligor (together with the Outstanding Balance of Eligible
Receivables of each Affiliate of such Obligor) then in the
Receivables Pool exceeds an amount equal to: (a) the
Concentration Percentage or Special Concentration Percentage, as
applicable, for such Obligor multiplied by (b) the Outstanding
Balance of all Eligible Receivables then in the Receivables
Pool."

<PAGE>
             2.4      Purchase Limit.  The definition of "Purchased Limit"
                      --------------
in Exhibit I to the Agreement is amended by deleting
"$90,000,000" and inserting in its place "$120,000,000."

             2.5      Representations and Warranties of the Seller. Section
                      --------------------------------------------
1 of Exhibit III to the Agreement is amended by adding the
following new paragraph (t) thereto:

             "    (t)  Each Pool Receivable of an Obligor, which
is not a resident of the United States, is not (and shall not at
any time be) subject to any currency controls imposed by any
Governmental Authority under the laws of which such Obligor is
organized or a political subdivision thereof, which currency
controls restrict the ability of such Obligor to pay its
obligations in connection with such Pool Receivable."

           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:

<PAGE>
                      (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 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.<PAGE>
                                  February 3, 1999

Mr. Gerald S. Gutterman
27 Pondfield Parkway
Mt. Vernon, NY 10552

Dear Jerry:

     This letter sets forth our agreement concerning your
arrangement with Sequa Corporation, a Delaware corporation (the
"Company") to provide contract services as a consultant.

     1.   The term of this Agreement shall be for a period of two
(2) years, commencing with the date of your retirement, unless
sooner terminated in accordance with the provisions hereof (the
"Term") and will continue as specified below.  The date of your
retirement will be June 1, 1999.

     a.   You are to work not more than 75% of the normal work year
for the Company as a consultant and will work directly under and
report to the Chairman or as directed by the Company's Board of
Directors on such special assignments as may be directed by them or
by the Chairman. The place of services is New York City, New York,
or any other location of the principal office of the Company.

     b.   As your compensation, the Company will compensate you at
the rate of Three Hundred Thousand ($300,000) Dollars per year
during the term of your contract hereunder, payable in equal bi-
weekly installments.  You will also be granted, subject to the
approval of the Board of Directors, a five-year non-qualified stock
option for 5,000 shares of Class A Common Stock of the Company at
the fair market value on the date of the grant.  The option will
vest in three approximately equal installments beginning on the
first anniversary of the date of grant and be subject to those
terms and conditions approved by the Board of Directors as set
forth in the award agreement

     c.   In addition to the foregoing compensation you shall be
entitled, during the term of your contract hereunder, to the
following:

     (i)  The use of a Company leased car in accordance with
Company policy generally applicable to its senior executive
officers.

<PAGE>
     (ii)   To participate in the same medical, dental and life
insurance programs that are generally provided by the Company to
its employees, in each case in accordance with the terms and
subject to the conditions of such programs as in effect from time
to time hereafter (including deduction by the Company from your
compensation of such amounts as may be necessary for the
maintenance of such coverage). In addition to the above, you and
your eligible dependents shall be entitled to coverage under the
Company's Senior Executive Medical Plan as long as it is made
available, on a general basis, to senior executive officers of the
Company limited to a maximum reimbursement of $10,000 during any
calendar year with the exception of calendar year 1999, where the
normal maximum of $20,000 will apply. It is specifically agreed
that participation in all other forms and types of benefits
programs is specifically not applicable to you, with the exception
of Travel Accident Insurance, and Accidental Death and
Dismemberment (AD&D), which shall be applicable when you may be
asked to travel in the course of you assignments.

     (iii)  Reimbursement of all authorized, reasonable travel,
entertainment and other expenses paid or incurred by you in the
performance of your business obligations hereunder and you shall
provide receipts or other appropriate evidence of such expenses.

     (iv)   Reimbursement for membership in your health club, on
the same basis as heretofore.

     d.   All of the foregoing compensation and benefits shall be
subject to the payment by you of applicable federal, state and
local taxes.

     e.   You may terminate this Agreement prior to the expiration
of the Term on no less than ninety (90) days' prior written notice,
to Counsel for the Company (which notice shall fix the date of
termination).  The Company shall have the right at any time prior
to the expiration of the Term to terminate this Agreement for Due
Cause (as defined below), which termination shall be effective
immediately upon the issuance by the Company of written notice to
you.  For purposes of this Agreement, "Due Cause" shall mean: (i)
a breach by you of the provisions of paragraphs (f) and (g) hereof;
(ii) your conviction (including a conviction on a nolo contendere
plea) of a felony; (iii) your theft or misappropriation of Company
assets; (iv) any willful, intentional, or grossly negligent act by
you having the effect of injuring the reputation or business of the
Company (or any of its affiliates); (v) your repeated or continued
failure, inability, neglect, or refusal to perform your services
hereunder as a consultant to the Company; or (vi) your death.
Termination of this Agreement shall have no affect upon the terms

<PAGE>
and conditions of paragraphs (f) and (g) hereof, which shall remain
in full force and effect and shall continue to bind you.  Upon
termination of the term of your contract hereunder, as aforesaid,
the Company shall be relieved of any and all further obligations to
you arising out of this Agreement except for benefits available to
you under accrued and unpaid compensation and authorized expenses.
Notwithstanding anything contained in the foregoing to the
contrary, if the Company should terminate your services, you shall
be entitled to continued medical and dental insurance programs as
may be generally provided by the Company to its employees through
COBRA, in each case in accordance with the terms and subject to the
conditions of such programs as are in effect on the termination
date of this Agreement, including any required participant
contributions.

     f.   (i) You agree not to disclose any secret or confidential
information pertaining to the business of the Company without its
consent, either before or after any termination of your services
with the Company; and further that, upon any such termination, you
will deliver to the Company all notes, drawings, blueprints and
other papers belonging to the Company.

     (ii)   You agree to assign to the Company the entire right,
title and interest, for the United States of America and all
foreign countries, in and to any and all inventions made,
conceived, or acquired (either alone or jointly with another) by
you during the term of your services hereunder which result from
work assigned to you by the Company, or any other inventions which
are made on the time of or at the expense of or with the materials
or labor of the Company. At any time hereafter, whether or not you
are then under contract to the Company, upon request and without
charge you will execute appropriate documents to implement this
covenant.

     (iii)     You agree to make prompt, full and complete
disclosure to the Company of any and all inventions and
improvements made by you during the term of your services by the
Company which relate to the business of the Company, whether or not
patentable and whether or not coming within the provisions of
paragraph f(ii) hereof.
     g.   You have represented that you have no agreement with or
obligations to others in conflict with this Agreement; that there
are no representations, warranties, provisions or undertakings
other than those contained in this Agreement which constitutes the
entire agreement between us and shall not be modified or changed
except in writing signed by one of our duly authorized officers.

<PAGE>
     If the foregoing is in accordance with your understanding of
the terms of your employment by the Company, please be good enough
to sign and return to the undersigned the enclosed duplicate of
this letter, whereupon this shall become a binding agreement
between us.

                                             Very truly yours,

                                   SEQUA CORPORATION

                                   By ---------------------------

        ACCEPTED AND APPROVED:

     ----------------------------------------------------
     Gerald S. Gutterman

            Dated ---------------------------------------

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