Document:

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                                                                    EXHIBIT 4.10

     THIS WARRANT AND THE SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE
NOT BEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE
SECURITIES ACT OF ANY STATE (COLLECTIVELY, THE "ACTS").  NEITHER THE WARRANT
NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR
OTHERWISE DISPOSED OF IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE ACTS OR AN OPINION OF COUNSEL SATISFACTORY TO COUNSEL OF AIRTECH
INTERNATIONAL GROUP, INC. TO THE EFFECT THAT SUCH REGISTRATIONS ARE NOT
REQUIRED.

                        No. of Shares of Common Stock: ______

                                       WARRANT

                             To Purchase Common Stock of

                          AIRTECH INTERNATIONAL GROUP, INC.

     THIS IS TO CERTIFY THAT ___________________________________, or its
registered assigns, is entitled, at any time form the Warrant Issuance Date
(as hereinafter defined) to the Expiration Date (as hereinafter defined), to
purchase from Airtech International Group, Inc., a Wyoming corporation (the
"Company"), _________________________ (_________) shares of Common Stock (as
hereinafter defined and subject to adjustment as provided herein), in whole
or in part, including fractional parts, at a purchase price equal to $2.00
per share (subject to any adjustments made to such amount as provided herein)
on the terms and conditions and pursuant to the provisions hereinafter set
forth.

1.   DEFINITIONS

          As used in this Warrant, the following terms have the respective
meanings set forth below:

          "Business Day" means any day that is not a Saturday or Sunday or a
day on which banks are required or permitted to be closed in the State of
Texas.

          "Commission" means the Securities and Exchange Commission or any
other federal agency then administering the Securities Act and other federal
securities laws.

          "Common Stock" means the Common Stock, par value $.05 per share, of
the Company as constituted on the Warrant Issuance Date, and any capital
stock into which such Common Stock may thereafter be changed, and shall also
include (i) capital stock of the Company of any other class issued to the
holders of shares of Common Stock upon any reclassification thereof which is
also not preferred as to dividends or assets over any other class of stock of
the Company and which is not subject to redemption and (ii) shares of common
stock of any successor or acquiring corporation received by or distributed to
the holders of Common Stock of the Company in the circumstances contemplated
by Section 4.4 hereof.

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          "Current Warrant Price" means $2.00 subject to any adjustments to
such amount made in accordance with Section 4 hereof.

          "Exchange Act" means the Securities Exchange Act of 1934, as
amended, or any successor federal statute, and the rules and regulations of
the Commission thereunder, all as the same shall be in effect from time to
time.

          "Expiration Date" means January ____, 2002.

          "Holder" means the Person in whose name the Warrant or Warrant
Stock set forth herein is registered on the books of the Company maintained
for such purposes.

          "Market Price" per Common Share means the average of the closing
bid prices of the Common Shares as reported on the National Association of
Securities Dealers Automated Quotation System for the National Market,
("NASDAQ") or, if such security is not listed or admitted to trading on the
NASDAQ, on the principal national security exchange or quotation system on
which such security is quoted or listed or admitted to trading, or, if not
quoted or listed or admitted to trading on any national securities exchange
or quotation system, the closing bid price of such security on the
over-the-counter market on the day in question as reported by the National
Association of Security Dealers, Inc., or a similar generally accepted
reporting service, as the case may be, for the five (5) trading days
immediately preceding the date of determination.

          "Other Property" has the meaning set forth in Section 4.4 hereof.

          "Person" means any individual, sole proprietorship, partnership,
joint venture, trust, incorporated organization, association, corporation,
institution, public benefit corporation, entity or government (whether
federal, state, county, city, municipal or otherwise, including, without
limitation, any instrumentality, division, agency, body or department
thereof).

          "Restricted Common Stock" means shares of Common Stock which are,
or which upon their issuance on the exercise of this Warrant would be,
evidenced by a certificate bearing the restrictive legend set forth in
Section 8.1(a) hereof.

          "Securities Act" means the Securities Act of 1933, as amended, or
any successor federal statute, and the rules and regulations of the
Commission thereunder, all as the same shall be in effect at the time.

          "Transfer" means any disposition of any Warrant or Warrant Stock or
of any interest in either thereof, which would constitute a sale thereof
within the meaning of the Securities Act.

          "Transfer Notice" has the meaning set forth in Section 8.2 hereof.

          "Warrant Issuance Date" means January ____, 2000.

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          "Warrants" means this Warrant and all warrants issued upon
transfer, division or combination of, or in substitution for, any thereof.
All Warrants shall at all times be identical as to terms and conditions and
date, except as to the number of shares of Common Stock for which they may be
exercised.

          "Warrant Price" means an amount equal to (i) the number of shares
of Common Stock being purchased upon exercise of this Warrant pursuant to
Section 2.1, multiplied by (ii) the Current Warrant Price as of the date of
such exercise.

          "Warrant Stock" shall mean the shares of Common Stock purchased by
the holders of the Warrants upon the exercise thereof.

2.   EXERCISE OF WARRANT

          2.1.   MANNER OF EXERCISE.   From and after the Warrant Issuance
Date and until 5:00 P.M., Dallas, Texas time, on the Expiration Date, Holder
may exercise this Warrant, on any Business Day, for all or any part of the
number of shares of Common Stock purchasable hereunder.  In order to exercise
this Warrant, in whole or in part, Holder shall deliver to the Company at the
office or agency designated by the Company pursuant to Section 11 hereof, (i)
a written notice of Holder's election to exercise this Warrant, in the form
attached as Exhibit "A" to this Warrant (the "Exercise Notice"), duly
executed by Holder or its agent or attorney, specifying the number of shares
of Common Stock to be purchased, (ii) payment to the Company of the Warrant
Price in cash or by wire transfer or cashier's check drawn on a United States
bank and (iii) this Warrant.  Upon receipt of the items referred to in
clauses (i), (ii) and (iii) above, the Company shall, as promptly as
practicable, and in any event within five (5) Business Days thereafter,
execute or cause to be executed and deliver or cause to be delivered to
Holder a certificate or certificates representing the aggregate number of
full shares of Common Stock issuable upon such exercise, together with cash
in lieu of any fraction of a share, as hereinafter provided. The stock
certificate or certificates so delivered shall be, to the extent possible, in
such denomination or denominations as Holder shall request in the Exercise
Notice and shall be registered in the name of Holder or, subject to Section 8
hereof, such other name as shall be designated in the Exercise Notice. This
Warrant shall be deemed to have been exercised and such certificate or
certificates shall be deemed to have been issued, and Holder or any other
Person so designated to be named therein shall be deemed to have become a
holder of record of such shares for all purposes, as of the date the Warrant
was exercised by payment to the Company of the Warrant Price.  If this
Warrant shall have been exercised in part, the Company shall, at the time of
delivery of the certificate or certificates representing Warrant Stock,
deliver to Holder a new Warrant evidencing the rights of Holder to purchase
the unpurchased shares of Common Stock called for by this Warrant, which new
Warrant shall in all other respects be identical with this Warrant.

          2.2.   PAYMENT OF TAXES AND CHARGES.  All shares of Common Stock
issuable upon the exercise of this Warrant pursuant to the terms hereof shall
be validly issued, fully paid and nonassessable, and without any preemptive
rights. The Company shall pay all expenses

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in connection with, and all transfer taxes and other governmental charges
that may be imposed with respect to, the issue or delivery thereof.

          2.3.   FRACTIONAL SHARES.  The Company shall not be required to
issue a fractional share of Common Stock upon exercise of any Warrant.  As to
any fraction of a share which Holder would otherwise be entitled to purchase
upon such exercise, the Company shall pay a cash adjustment in respect of
such final fraction in an amount equal to the same fraction of the Market
Price per share of Common Stock on the relevant exercise date.

          2.4.   CONTINUED VALIDITY.  A holder of shares of Common Stock
issued upon the exercise of this Warrant, in whole or in part (other than a
holder who acquires such shares after the same have been publicly sold
pursuant to Rule 144 thereunder), shall continue to be entitled with respect
to such shares to all rights to which it would have been entitled as Holder
under Sections 8, 9 and 13 of this Warrant.

3.   TRANSFER, DIVISION AND COMBINATION

          3.1.   TRANSFER.  Subject to compliance with Section 8 hereof,
transfer of this Warrant and all rights hereunder, in whole or in part, shall
be registered on the books of the Company to be maintained for such purpose,
upon surrender of this Warrant at the office or agency designated by the
Company pursuant to Section 11 hereof, together with a written assignment of
this Warrant substantially in the form of EXHIBIT B attached to this Warrant
duly executed by Holder or its agent or attorney.  Upon such surrender, the
Company shall, subject to Section 8 hereof, execute and deliver a new Warrant
or Warrants in the name of the assignee or assignees and in the denomination
specified in such instrument of assignment, and shall issue to the assignor a
new Warrant evidencing the portion of this Warrant not so assigned, and this
Warrant shall promptly be cancelled.  A Warrant, if properly assigned in
compliance with Section 8 hereof, may be exercised by a new Holder for the
purchase of shares of Common Stock without having a new Warrant issued.

          3.2.   DIVISION AND COMBINATION.  Subject to Section 8 hereof, this
Warrant may be divided or combined with other Warrants upon presentation
hereof at the aforesaid office or agency of the Company, together with a
written notice specifying the names and denominations in which new Warrants
are to be issued, signed by Holder or its agent or attorney.  Subject to
compliance with Section 3.1 and with Section 8 hereof, as to any transfer
which may be involved in such division or combination, the Company shall
execute and deliver a new Warrant or Warrants in exchange for the Warrant or
Warrants to be divided or combined in accordance with such notice.

          3.3.   EXPENSES.  The Company shall prepare, issue and deliver at
its own expense the new Warrant or Warrants under this Section 3.

          3.4.   MAINTENANCE OF BOOKS.  The Company agrees to maintain, at
its aforesaid office or agency, books for the registration and the
registration of transfer of the Warrants.

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4.   ADJUSTMENTS

          The number of shares of Common Stock for which this Warrant is
exercisable, or the price at which such shares may be purchased upon exercise
of this Warrant, shall be subject to adjustment from time to time as set
forth in this Section 4.  The Company shall give Holder notice of any event
described below which requires an adjustment pursuant to this Section 4 at
the time of such event.

          4.1.   SUBDIVISIONS AND COMBINATIONS.  If at any time prior to the
Expiration Date the Company shall:

                 (a)     subdivide its outstanding shares of Common Stock
into a larger number of shares of Common Stock, or

                 (b)     combine its outstanding shares of Common Stock into
a smaller number of shares of Common Stock, or

                 (c)     declare a stock dividend,

then (i) the number of shares of Common Stock for which this Warrant is
exercisable immediately after the occurrence of any such event shall be
adjusted to equal the number of shares of Common Stock which a record holder
of the same number of shares of Common Stock for which this Warrant is
exercisable immediately prior to the occurrence of such event would own or be
entitled to receive after the happening of such event, and (ii) the Current
Warrant Price shall be adjusted to equal (A) the Current Warrant Price
multiplied by the number of shares of Common Stock for which this Warrant is
exercisable immediately prior to the adjustment divided by (B) the number of
shares for which this Warrant is exercisable immediately after such
adjustment.

          4.2.   REORGANIZATION, RECLASSIFICATION, MERGER, CONSOLIDATION OR
DISPOSITION OF ASSETS.  In case the Company shall reorganize its capital,
reclassify its capital stock, consolidate or merge with or into another
corporation (where the Company is not the surviving corporation or where
there is a change in or distribution with respect to the Common Stock of the
Company), or sell, transfer or otherwise dispose of all or substantially all
its property, assets or business to another corporation and, pursuant to the
terms of such reorganization, reclassification, merger, consolidation or
disposition of assets, shares of common stock of the successor or acquiring
corporation, or any cash, shares of stock or other securities or property of
any nature whatsoever (including warrants or other subscription or purchase
rights) in addition to or in lieu of common stock of the successor or
acquiring corporation ("Other Property"), are to be received by or
distributed to the holders of Common Stock of the Company, then Holder shall
have the right thereafter to receive, upon exercise of the Warrant, the
number of shares of common stock of the successor or acquiring corporation or
of the Company, if it is the surviving corporation, and Other Property
receivable upon or as a result of such reorganization, reclassification,
merger, consolidation or disposition of assets by a holder of the number of
shares

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of Common Stock for which this Warrant is exercisable immediately prior to
such event.  In case of any such reorganization, reclassification, merger,
consolidation or disposition of assets, the successor or acquiring
corporation (if other than the Company) shall expressly assume the due and
punctual observance and performance of each and every covenant and condition
of this Warrant to be performed and observed by the Company and all the
obligations and liabilities hereunder, subject to such modifications as may
be deemed appropriate, subject to the Holder's consent, in order to provide
for adjustments of shares of Common Stock for which this Warrant is
exercisable which shall be as nearly equivalent as practicable to the
adjustments provided for in this Section 4.  For purposes of this Section
4.2, "common stock of the successor or acquiring corporation" shall include
stock of such corporation of any class which is not preferred as to dividends
or assets over any other class of stock of such corporation and which is not
subject to redemption and shall also include any evidences of indebtedness,
shares of stock or other securities which are convertible into or
exchangeable for any such stock, either immediately or upon the arrival of a
specified date or the happening of a specified event and any warrants or
other rights to subscribe for or purchase any such stock.  The foregoing
provisions of this Section 4.2 shall similarly apply to successive
reorganizations, reclassifications, mergers, consolidations or disposition of
assets.

          4.3    STOCK DIVIDENDS.  If the Company shall declare a dividend or
any other distribution upon any of its capital stock which is payable in
shares of Common Stock, the Current Warrant Price shall be reduced to the
quotient obtained by dividing (i) the number of shares of Common Stock and
Common Stock equivalents outstanding immediately prior to such declaration
multiplied by the then effective Current Warrant Price by (ii) the total
number of shares of Common Stock and Common Stock equivalents outstanding
immediately after such declaration, and the number of shares of Common Stock
issuable upon exercise of the Warrants shall be adjusted as provided in
Section 4.1.

          4.4.   OTHER PROVISIONS APPLICABLE TO ADJUSTMENTS UNDER THIS
SECTION. The following provisions shall be applicable to the making of
adjustments of the number of shares of Common Stock for which this Warrant is
exercisable and the Current Warrant Price provided for in this Section 4:

                 (a)     WHEN ADJUSTMENTS TO BE MADE.  The adjustments
required by this Section 4 shall be made whenever and as often as any
specified event requiring an adjustment shall occur.  For the purpose of any
adjustment, any specified event shall be deemed to have occurred at the close
of business on the date of its occurrence.

                 (b)     FRACTIONAL INTERESTS.  In computing adjustments
under this Section 4, fractional interests in Common Stock shall be taken
into account to the nearest 1/10th of a share.

                 (c)     WHEN ADJUSTMENT NOT REQUIRED.  If the Company shall
take a record of the holders of its Common Stock for the purpose of entitling
them to receive a dividend or distribution or subscription or purchase rights
and shall, thereafter and before the

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distribution thereof, legally abandon its plan to pay or deliver such
dividend, distribution, subscription or purchase rights, then thereafter no
adjustment shall be required by reason of the taking of such record and any
such adjustment previously made in respect thereof shall be rescinded and
annulled.

                 (d)     MINIMUM ADJUSTMENT.  Notwithstanding the foregoing,
no adjustment to the Current Warrant Price shall be made if such adjustment
results in a change in the Current Warrant Price then in effect of less than
one percent (1%) and any adjustment of less than one percent (1%) of any
Current Warrant Price shall be carried forward and shall be made at the time
of and together with any subsequent adjustment that, together with the
adjustment or adjustments so carried forward, equals one percent (1%) or
more; PROVIDED HOWEVER, that upon the exercise of this Warrant, the Company
shall have made all necessary adjustments (to the nearest cent) not
theretofore made to the Current Warrant Price up to and including the date
upon which this Warrant is exercised.

          4.5.   NO VOTING RIGHTS.  This Warrant shall not entitle its Holder
to any voting rights or other rights as a shareholder of the Company.

5.   NOTICES TO HOLDER

          5.1.   NOTICE OF ADJUSTMENTS.  Whenever the number of shares of
Common Stock for which this Warrant is exercisable, or whenever the price at
which a share of such Common Stock may be purchased upon exercise of this
Warrant, shall be adjusted pursuant to Section 4 hereof, the Company shall
forthwith prepare a certificate to be executed by an executive officer of the
Company setting forth, in reasonable detail, the event requiring the
adjustment and the method by which such adjustment was calculated, specifying
the number of shares of Common Stock for which this Warrant is exercisable
and (if such adjustment was made pursuant to Section 4.2 hereof) describing
the number and kind of any other shares of stock, securities or Other
Property for which this Warrant is exercisable, and any change in the
purchase price or prices thereof, after giving effect to such adjustment or
change.  The Company shall promptly cause a signed copy of such certificate
to be delivered to the holder in accordance with Section 13.2 hereof.  The
Company shall keep at its office or agency designated pursuant to Section 11
hereof copies of all such certificates and cause the same to be available for
inspection at said office during normal business hours by Holder, its
representatives, or any prospective purchaser of a Warrant designated by
Holder.

          5.2.   NOTICE OF CORPORATE ACTION.  If at any time the Company
shall prepare to take any action of the type described in Section 4 hereof,
then, in any one or more of such cases, the Company shall give to Holder at
least thirty (30) Business Days' prior written notice specifying the record
date, if any, with respect to any such action and the appropriate date on
which such action is to take place.  Such notice in accordance with the
foregoing clause also shall specify  the facts with respect thereto as shall
be reasonably necessary to indicate the effect of such action (to the extent
such effect may be known on the date of such notice) on the Current Warrant
Price and the number, kind or class of shares, securities or Other Property
which shall be deliverable upon

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exercise of this Warrant.  Each such written notice shall be sufficiently
given if addressed to Holder at the last address of Holder appearing on the
books of the Company and delivered in accordance with Section 13.2 hereof.

6.   NO IMPAIRMENT

          The Company shall not by any action, including, without limitation,
amending its certificate of incorporation or through any reorganization,
transfer of assets, consolidation, merger, dissolution, issue or sale of
securities or any other voluntary action, avoid or seek to avoid the
observance or performance of any of the terms of this Warrant, but will at
all times in good faith assist in the carrying out of all such terms and in
the taking of all such actions as may be necessary or appropriate to protect
the rights of Holder against impairment.  Without limiting the generality of
the foregoing, the Company will (i) not increase the par value of any shares
of Common Stock receivable upon the exercise of this Warrant above the amount
payable therefor upon such exercise immediately prior to such increase in par
value, and (ii) take all such action as may be necessary or appropriate in
order that the Company may validly and legally issue fully paid and
nonassessable shares of Common Stock upon the exercise of this Warrant.

7.   RESERVATION AND AUTHORIZATION OF COMMON STOCK

          From and after the Warrant Issuance Date, the Company shall at all
times reserve and keep available for issue upon the exercise of Warrants such
number of its authorized but unissued shares of Common Stock as will be
sufficient to permit the exercise in full of all outstanding Warrants.  All
shares of Common Stock which shall be so issuable, when issued upon exercise
of any Warrant and payment therefor in accordance with the terms of such
Warrant, shall be duly and validly issued and fully paid and nonassessable,
and not subject to preemptive rights.

8.   RESTRICTIONS ON TRANSFERABILITY

          The Warrants and the Warrant Stock shall not be transferred,
hypothecated or assigned before satisfaction of the conditions specified in
this Section 8, which conditions are intended to ensure compliance with the
provisions of the Securities Act with respect to the Transfer of any Warrant
or any Warrant Stock.  Holder, by acceptance of this Warrant, agrees to be
bound by the provisions of this Section 8.

          8.1.   RESTRICTIVE LEGEND.

                 (a)     Holder by accepting this Warrant and any Warrant
Stock agrees that this Warrant and the Warrant Stock issuable upon exercise
hereof may not be assigned or otherwise transferred unless and until (i) the
Company has received an opinion of counsel for Holder that such securities
may be sold pursuant to an exemption from registration under the Securities
Act or (ii) a registration statement relating to such securities has been
filed by the Company and declared effective by the Commission.

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                 (b)     Each certificate for Warrant Stock issuable
hereunder shall bear a legend substantially worded as follows unless such
securities have been sold pursuant to an effective registration statement
under the Securities Act:

                         "The Securities represented by this certificate have
          not been registered under the Securities Act of 1933, as amended (the
          "Act") or any state securities laws. The securities may not be offered
          for sale, sold, assigned, offered, transferred or otherwise
          distributed for value except (i) pursuant to an effective registration
          statement under the Act or any state securities laws or (ii) pursuant
          to an exemption from registration or prospectus delivery requirements
          under the Act or any state securities laws in respect of which the
          Company has received an opinion of counsel satisfactory to the Company
          to such effect."

                 (c)     Except as otherwise provided in this Section 8, this
Warrant shall be stamped or otherwise imprinted with a legend in
substantially the following form:

                         "This Warrant and the shares issuable upon exercise of
          this Warrant have not ben registered under the Securities Act of 1933,
          as amended, or the Securities Act of any state (collectively, the
          "acts").  Neither the Warrant nor any interest therein may be offered,
          sold, transferred, pledged or otherwise disposed of in the absence of
          an effective registration statement under the Acts or an opinion of
          counsel satisfactory to counsel of Airtech International Group, Inc.
          to the effect that such registrations are not required."

          8.2.   NOTICE OF PROPOSED TRANSFERS.  Prior to any Transfer or
attempted Transfer of any Warrants or any shares of Restricted Common Stock,
Holder shall give five (5) days' prior written notice (a "Transfer Notice")
to the Company of Holder's intention to effect such Transfer, describing the
manner and circumstances of the proposed Transfer, and obtain from counsel to
Holder an opinion that the proposed Transfer of such Warrants or such
Restricted Common Stock may be effected without registration under the
Securities Act or state securities laws.  After the Company's receipt of the
Transfer Notice and opinion, such Holder shall thereupon be entitled to
Transfer such Warrants or such Restricted Common Stock, in accordance with
the terms of the Transfer Notice.  Each certificate, if any, evidencing such
shares of Restricted Common Stock issued upon such Transfer and the Warrant
issued upon such Transfer shall bear the restrictive legends set forth in
Section 8.1, unless in the opinion of such counsel such legend is not
required in order to ensure compliance with the Securities Act.

          8.3.   TERMINATION OF RESTRICTIONS.  Notwithstanding the foregoing
provisions of this Section 8, the restrictions imposed by this Section 8 upon
the transferability of the Warrants, the Warrant Stock and the Restricted Common
Stock (or Common Stock issuable upon the exercise of the Warrants) and the
legend requirements of Section 8.1 shall terminate as to any particular Warrant
or share of Warrant Stock or Restricted Common Stock (or Common Stock issuable
upon the exercise of the Warrants) (i) when and so long as such security shall
have been

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effectively registered under the Securities Act and applicable state
securities laws and disposed of pursuant thereto or (ii) when the Company
shall have received an opinion of counsel that such shares may be transferred
without registration thereof under the Securities Act and applicable state
securities laws.  Whenever the restrictions imposed by this Section 8 shall
terminate as to this Warrant, as hereinabove provided, Holder shall be
entitled to receive from the Company upon written request of Holder, at the
expense of the Company, a new Warrant bearing the following legend in place
of the restrictive legend set forth hereon:

                 "THE RESTRICTIONS ON TRANSFERABILITY OF THE WITHIN WARRANT
          CONTAINED IN SECTION 8 HEREOF TERMINATED ON ____________, 20 ______,
          AND ARE OF NO FURTHER AND EFFECT."

All Warrants issued upon registration of transfer, division or combination
of, or in substitution for, any Warrant or Warrants entitled to bear such
legend shall have a similar legend endorsed thereon.  Whenever the
restrictions imposed by this Section 8 shall terminate as to any share of
Restricted Common Stock, as hereinabove provided, the holder thereof shall be
entitled to receive from the Company, at the Company's expense, a new
certificate representing such Common Stock not bearing the restrictive
legends set forth in Section 8.1.

9.   SUPPLYING INFORMATION

          The Company shall cooperate with Holder in supplying such
information as may be reasonably necessary for Holder to complete and file
any information reporting forms presently or hereafter required by the
Commission as a condition to the availability of an exemption from the
Securities Act for the sale of any Warrant or Restricted Common Stock.

10.  LOSS OR MUTILATION

          Upon receipt by the Company from Holder of evidence reasonably
satisfactory to it of the ownership of and the loss, theft, destruction or
mutilation of this Warrant and indemnity reasonably satisfactory to it (it
being understood that the written agreement of Holder shall be sufficient
indemnity), and in case of mutilation upon surrender and cancellation hereof,
the Company will execute and deliver in lieu hereof a new Warrant of like
tenor to Holder; provided, in the case of mutilation, no indemnity shall be
required if this Warrant in identifiable form lower case surrendered to the
Company for cancellation.

11.  OFFICE OF THE COMPANY

          As long as any of the Warrants remain outstanding, the Company
shall maintain an office or agency (which may be the principal executive
offices of the Company) where the Warrants may be presented for exercise,
registration of transfer, division or combination as provided in this
Warrant, such office to be initially located at 15400 Knoll Trail, Suite
#200, Dallas, Texas  75248,

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fax (972) 960-9395, provided, however, that the Company shall provide prior
written notice to Holder of a change in address no less than thirty (30) days
prior to such change.

12.  LIMITATION OF LIABILITY

          No provision hereof, in the absence of affirmative action by Holder
to purchase shares of Common Stock, and no enumeration herein of the rights
or privileges of Holder hereof, shall give rise to any liability of Holder
for the purchase price of any Common Stock or as a stockholder of the
Company, whether such liability is asserted by the Company or by creditors of
the Company.

13.  MISCELLANEOUS

          13.1.  NONWAIVER AND EXPENSES.  No course of dealing or any delay
or failure to exercise any right hereunder on the part of Holder shall
operate as a waiver of such right or otherwise prejudice Holder's rights,
powers or remedies, notwithstanding all rights hereunder terminate on the
Expiration Date.  If the Company fails to make, when due, any payments
provided for hereunder, or fails to comply with any other provision of this
Warrant, the Company shall pay to Holder such amounts as shall be sufficient
to cover any direct and indirect losses, damages, costs and expenses
including, but not limited to, reasonable attorneys' fees, including those of
appellate proceedings, incurred by Holder in collecting any amounts due
pursuant hereto or in otherwise enforcing any of its rights, powers or
remedies hereunder.

          13.2.  NOTICE GENERALLY.  Except as may be otherwise provided
herein, any notice or other communication or delivery required or permitted
hereunder shall be in writing and shall be delivered personally or sent by
certified mail, postage prepaid, or by a nationally recognized overnight
courier service, and shall be deemed given when so delivered personally or by
overnight courier service, or, if mailed, three (3) days after the date of
deposit in the United States mail, as follows:

                 (1)     if to the Company, to:
                         Airtech International Group, Inc.
                         15400 Knoll Trail, Suite #200
                         Dallas, Texas  75248
                         Attention: James Halter, General Counsel
                         Tel: (972) 960-9400
                         Fax: (972) 960-9395

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                 (2)     if to Holder to:

                         _______________________________
                         _______________________________
                         _______________________________
                         _______________________________
                         Attention: ____________________
                         Tel: (___)_____________________
                         Fax: (___)_____________________

with a copy to:

                         John G. Rebensdorf, Esq.
                         6116 N. Central Expressway, Suite 1313
                         Dallas, Texas  75206
                         Tel:  (214) 696-9388
                         Fax:  (214) 696-9430

     The Company or Holder may change the foregoing address by notice given
pursuant to this Section 13.2.

          13.3.  INDEMNIFICATION.  The Company agrees to indemnify and hold
harmless Holder from and against any liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, claims, costs, attorneys'
fees, expenses and disbursements of any kind which may be imposed upon,
incurred by or asserted against Holder in any manner relating to or arising
out of any failure by the Company to perform or observe in any respect any of
its covenants, agreements, undertakings or obligations set forth in this
Warrant.

          13.4.  SUCCESSORS AND ASSIGNS.  Subject to the provisions of
Sections 3.1 and 8, this Warrant and the rights evidenced hereby shall inure
to the benefit of and be binding upon the successors of the Company and the
successors and assigns of Holder.  The provisions of this Warrant are
intended to be for the benefit of all Holders from time to time of this
Warrant and, with respect to Section 8 hereof, holders of Warrant Stock, and
shall be enforceable by any such Holder or holder of Warrant Stock.

          13.5.  AMENDMENT.  This Warrant and all other Warrants may be
modified or amended or the provisions hereof waived only with the prior
written consent of the Company and Holder.

          13.6.  SEVERABILITY.  Wherever possible, each provision of this
Warrant shall be interpreted in such manner as to be effective and valid
under applicable law, but if any provision of this Warrant shall be
prohibited by or invalid under applicable law, such provision shall be

                                       12

<PAGE>

ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of
this Warrant.

          13.7.  HEADINGS.  The headings used in this Warrant are for the
convenience of reference only and shall not, for any purpose, be deemed a
part of this Warrant.

          13.8.  GOVERNING LAW.  This Warrant shall be governed by the laws
of the State of Texas, without regard to the provisions thereof relating to
conflict of laws.

                              [SIGNATURE PAGE FOLLOWS,
                        REMAINDER OF PAGE INTENTIONALLY BLANK]

                                       13

<PAGE>

     IN WITNESS WHEREOF, the Company has caused this Warrant to be duly
executed and its corporate seal to be impressed hereon and attested by its
Secretary or an Assistant Secretary.

Dated: January ____, 2000

                                    AIRTECH INTERNATIONAL GROUP, INC.

                                    By:___________________________________
                                         Name:____________________________
                                         Title:___________________________

ATTEST:

By:___________________________________
     Name:____________________________
     Title:___________________________

                                       14

<PAGE>

                                      EXHIBIT A

                                   EXERCISE NOTICE

                    [To be executed only upon exercise of Warrant]

The undersigned registered owner of this Warrant irrevocably exercises this
Warrant for the purchase of _______________ Share of Common Stock of Airtech
International Group, Inc., and herewith makes payment therefor in cash or by
check or bank draft made payable to the Company, all at the price and on the
terms and conditions specified in this Warrant and requests that certificates
for the shares of Common Stock hereby purchased (and any securities or other
property issuable upon such exercise) be issued in the name of and delivered
to ______________ whose address is __________________________ and whose
Federal Identification Number is _________________ and, if such shares of
Common Stock shall not include all of the shares of Common Stock issuable as
provided in this Warrant, that a new Warrant of like tenor and date for the
balance of the shares of Common Stock issuable hereunder be delivered to the
undersigned.

                                  __________________________________________
                                  (Name of Registered Owner)

                                  __________________________________________
                                  (Signature of Registered Owner)

                                  __________________________________________
                                  (Street Address)

                                  __________________________________________
                                  (City)      (State)           (Zip Code)

     NOTICE:  The signature on this subscription must correspond with the
name as written upon the face of the within Warrant in every particular,
without alteration or enlargement or any change whatsoever.

                                       15

<PAGE>

                                    EXHIBIT B

                                 ASSIGNMENT FORM

          FOR VALUE RECEIVED the undersigned registered owner of this Warrant
hereby sells, assigns and transfers unto the Assignee named below all of the
rights of the undersigned under this Warrant, with respect to the number of
shares of Common Stock set forth below:

<TABLE>
<CAPTION>

         Name and                     Federal               Number of Shares
     Address of Assignee        Identification Number        of Common Stock
     -------------------        ---------------------       ----------------
     <S>                        <C>                         <C>
</TABLE>

and does hereby irrevocably constitute and appoint ________________________
attorney-in-fact to register such transfer on the books of Airtech
International Group, Inc., maintained for the purpose, with full power of
substitution in the premises.

     Dated: ____________________       Print Name: ___________________________

                                        Signature: ___________________________

                                        Witness: _____________________________

     NOTICE:  The signature on this assignment must correspond with the name
as written upon the face of the within Warrant in every particular, without
alteration or enlargement or any change whatsoever.

                                       16S & K Famous Brands, Inc.

                                Credit Agreement

                            Dated As Of May 31, 2000

<PAGE>

         THIS CREDIT AGREEMENT, dated as of May 31, 2000, is made by and between
S&K FAMOUS BRANDS,  INC., a Virginia  corporation (the "Company"),  and SunTrust
Bank, a Georgia corporation (the "Bank").

                                    SECTION I
                                   DEFINITIONS

                  1.1  Definitions.

         As used in this Agreement,

         "Agreement" means this credit agreement, as it may be amended from time
to time.

         "Bond  Purchase  Agreement"  means  the  Bond  Purchase  Agreement  and
Agreement of Sale dated as of December 1, 1983 as amended on November 1, 1984 by
and among the Company, the Bank, and the Industrial Development Authority of the
County of Henrico, Virginia.

         "Business Day" means any day other than  Saturday,  Sunday or other day
on which  commercial  banks in Richmond,  Virginia are authorized or required to
close under applicable law.

         "Capitalized  Lease Obligations" means the amount of the obligations of
the Company and its Subsidiaries  under Financing Leases which would be shown as
a  liability  on a balance  sheet of the  Company or a  Subsidiary,  prepared in
accordance with generally accepted accounting principles.

         "Consolidated"  refers to any  determination to be made for the Company
and  its   Subsidiaries  in  accordance  with  generally   accepted   accounting
principles, including the principles of consolidation.

         "Default" means an event described in Section 8.1 of this Agreement.

         "Effective  Tangible  Net  Worth"  means  Tangible  Net Worth  plus the
principal amount of Subordinated Debt outstanding from time to time.

         "ERISA" means the Employee  Retirement  Income Security Act of 1974, as
amended from time to time.

         "Eurodollar  Loan" means any Revolving Loan on which  interest  accrues
based on a Eurodollar Rate.

         "Eurodollar  Rate" means,  with respect to any Eurodollar  Loan for any
Interest  Period,  an interest  rate per annum  determined  by the Bank (rounded
upwards,  if  necessary,  to the next 1/16 of 1%) as the interest  rate at which
deposits  of U. S.  dollars  approximately  equal  in  principal  amount  to the
Eurodollar Loan and for a maturity comparable to the Interest Period are offered
in immediately  available funds to the Bank by at least two leading banks in the
London interbank market on the date of determination.  Each determination by the
Bank of any  Eurodollar  Rate shall be conclusive and binding on the Company and
the Bank absent manifest error.  The Bank and the Company  acknowledge  that the
Bank may determine the Eurodollar  Rate from quotations of the Bank's money desk
or by reference to Reuter Screen or similar quotations, in the discretion of the
Bank, on and as of the date of determination.

         "Federal  Funds  Rate  Loan"  means  any  overnight  Loan on which  the
interest accrues based on the Federal Funds Rate.

         "Federal  Funds  Rate" means for any day,  the rate per annum  (rounded
upwards, if necessary,  to the next 1/16 of 1%) equal to the weighted average of
the rates on overnight  federal funds  transactions  with members of the Federal
Reserve  System  arranged by federal  funds brokers on such day, as published by
the Federal  Reserve Bank of New York, on the Business Day next  succeeding such
day, provided that (a) if the day for which such rate is to be determined is not
a Business  Day, the Federal  Funds Rate for such day shall be such rate on such
transactions  on the next  preceding  Business  Day as so  published on the next
succeeding  Business  Day, and (b) if such rate is not so published for any day,
the Federal Funds Rate for such a day shall be such rate on such transactions as
shall be determined by the Bank.

         "Financing   Lease"  means  any  lease  of  property   which  would  be
capitalized  on a balance  sheet of the  Company or a  Subsidiary,  prepared  in
accordance with generally accepted accounting principles.

         "Funded Debt" means any  Indebtedness  of the Company or any Subsidiary
which has a stated  maturity more than one year after the date of  determination
or has a maturity  which may be extended by the Company or any  Subsidiary  to a
date more than one year after the date of determination.

         "Guaranty"  means any agreement by which the Company or any  Subsidiary
assumes, guarantees,  endorses, contingently agrees to purchase or provide funds
for the payment of, or otherwise  becomes  liable upon,  the  obligation  of any
other Person for borrowed  money, or agrees to maintain the net worth or working
capital or other  financial  condition of any other Person or otherwise  assures
any creditor of such other Person against loss.

         "Indebtedness"   means  the   Company's  and  each   Subsidiary's   (a)
obligations  for  borrowed  money,  (b)  obligations  representing  the deferred
purchase  price of property  other than accounts  payable  arising in connection
with the purchase of inventory on terms customary in the trade, (c) obligations,
whether or not assumed and with or without recourse, secured by liens or payable
out of the  proceeds or  production  from  property  now or  hereafter  owned or
acquired by the Company or any Subsidiary and (d) Capitalized Lease Obligations.

         "Interest  Period" means, (1) with respect to each Negotiated Rate Loan
or  Eurodollar  Loan,  the period  commencing  on the date of the  borrowing and
ending  one,  three,  or six months  thereafter  or such other  period as may be
agreed  between the Company and the Bank,  and (2) with respect to each Floating
Rate Loan other than a Eurodollar  Loan,  the period  commencing  on the date of
borrowing and ending on the date of repayment.

         "Investment"  means any loan,  advance,  extension of credit (excluding
accounts receivable arising in the ordinary course of business), or contribution
of  capital  by  the  Company  or any  Subsidiary  to any  other  Person  or any
investment  in,  or  purchase  or  other  acquisition  of,  the  stock,   notes,
debentures,  or  other  securities  of any  Person  made by the  Company  or any
Subsidiary.

         "Lien" means any security  interest,  mortgage,  pledge,  lien,  claim,
charge,  encumbrance,  title  retention  agreement,  lessor's  interest  under a
Financing  Lease or analogous  instrument,  in, of or on any of the Company's or
any Subsidiary's property.

         "Loans" means the  Revolving  Loans defined in ss.2.1 and the Term Loan
defined in ss.3.1 of this Agreement.

         "Notes"  means the  Revolving  Note defined in ss.2.4 and the Term Note
defined in ss.3.3 of this Agreement.

         "Obligations"  means all unpaid  principal and interest under the Notes
and all other  obligations  of the Company or any Subsidiary to the Bank arising
under this Agreement or the Notes.

         "Person" means any  corporation,  natural person,  firm, joint venture,
partnership, trust, unincorporated organization, government or any department or
agency of any government.

         "Plan" means a "defined  benefit  plan" as defined in Section  3(35) of
ERISA,  other than a  "multiemployer  plan" as defined  in Section  3(37)(A)  of
ERISA, for which the Company or any Subsidiary could be held liable for Unfunded
Liabilities by the Pension Benefit Guaranty Corporation.

         "Potential  Default" means an event  described in Section 8.1 which but
for the lapse of time or the  giving of  notice,  or both,  would  constitute  a
Default.

         "Prepayment  Penalty"  means  with  respect  to the  prepayment  of any
Negotiated Rate Loan, any Eurodollar  Loan, or any Term Loan prior to the end of
an Interest Period, the amount paid by the Company to the Bank and calculated as
follows:  (1) the  principal  amount of the  prepayment,  times (2) the positive
difference between the accruing interest rate of the Loan and the interest rate,
determined  as of the date of  prepayment,  for a U. S.  Government  security of
comparable  maturity to the remaining  Interest Period divided by (3) 365, times
(4) the number of days remaining to the maturity of the Interest Period.

         "Prime Rate" shall mean the rate  established  from time to time by the
Bank and  recorded in its Credit  Administration  Division  as a  reference  for
establishing  the  lending  rate on  commercial  loans.  The  Prime  Rate is not
necessarily  the lowest  rate of  interest  charged  by the Bank for  commercial
borrowings.

         "Section" and "ss." means a numbered section of this Agreement,  unless
another document is specifically referenced.

         "Subordinated  Debt" means any  Indebtedness  of the  Company  which is
subordinated  to the payment of the  Obligations on terms approved in writing by
the Bank.

         "Subsidiary"  means a corporation  or other entity of which 50% or more
of the voting stock or other ownership  interest is owned directly or indirectly
by the Company, by one or more of its Subsidiaries, or by the Company and one or
more of its Subsidiaries, and the financial statements of which are Consolidated
with  those  of  the  Company  in  preparing  the  Company's  annual  report  to
stockholders,  it being understood that as of the date hereof the Company has no
Subsidiaries  and until the Company has a Subsidiary  all  references  herein to
Consolidated statements and figures shall refer to the statements and figures of
the Company alone.

         "Tangible  Net Worth" means the  Consolidated  stockholders'  equity as
reported in the Company's most recent financial  reports as described in Section
7.1.1(a) and 7.1.1(b) minus any goodwill,  any patents and any other  intangible
assets determined in accordance with generally accepted accounting principles as
reported in those same financial reports.

         "Unfunded Liabilities" means with regard to any Plan, the excess of the
current value of the Plan's benefits  guaranteed by the Pension Benefit Guaranty
Corporation under ERISA over the current value of the Plan's assets allocable to
such benefits.

         "Unsubordinated  Liabilities"  means all amounts which would be treated
as liabilities on a balance sheet prepared in accordance with generally accepted
accounting principles, excluding, however, Subordinated Debt.

         "Unsubordinated   Funded   Debt"  means  all  Funded  Debt  other  than
Subordinated Debt.

         "Working  Capital"  means  current  assets  minus  current  liabilities
determined in accordance with generally accepted accounting principles.

         The  foregoing  definitions  shall be  equally  applicable  to both the
singular and plural of the defined terms.

                                   SECTION II
                                 REVOLVING LOANS

         2.1  Commitment  to Lend.  Subject to the terms and  conditions of this
Agreement,  the Bank agrees to make Revolving Loans  ("Revolving  Loans") to the
Company  from time to time until  maturity of the  Revolving  Note as defined in
Section  2.4, up to the  maximum  outstanding  principal  amount at any one time
outstanding of Twenty Million Dollars  ($20,000,000) from the date hereof to and
including May 31, 2003,  such amounts being hereafter  called the  "Commitment."
Revolving  Loans may be  designated  as  Floating  Rate Loans  (Section  2.5) or
Negotiated Rate Loans (Section 2.2). The Company may borrow, repay, and reborrow
the maximum annual permitted principal amount of the Commitment.

         2.2  Negotiated Rate Loans.

             (a) Parties'  Option.  Subject to the terms and  conditions of this
Agreement,  from time to time the Company may request the Bank to make offers to
the Company to make  Revolving  Loans which are  designated as  Negotiated  Rate
Loans. The Bank may, but shall have no obligation to, make such offers,  and the
Company may, but shall have no obligation to, accept such offers.

             (b) Rate  Quote  Requests.  When the  Company  wishes to request an
offer from the Bank to make  Negotiated  Rate Loans, it shall notify the Bank by
telephone  (each such telephone  request a "Rate Quote  Request") not later than
11:00 a.m.  (Eastern  Time) on the day of the proposed  borrowing (or such other
time and date as the Company and the Bank shall agree), specifying:

                  (i) the proposed date of borrowing,  which shall be a Business
Day;

                  (ii) the amount of such  borrowing,  which  shall be a minimum
amount of $500,000 and;

                  (iii) the duration of the Interest Period or Interest  Periods
applicable thereto, subject to the definition of the Interest Period.

         The Company may request an offer to make Negotiated Rate Loans for more
than one Interest Period in a single Rate Quote Request. Each Rate Quote Request
shall constitute an invitation by the Company to the Bank to submit a fixed rate
quote offering to make a Negotiated  Rate Loan or Negotiated Rate Loans to which
the applicable Rate Quote Request relates.

         2.3  Maturity  of Loans.  Each  Revolving  Loan shall  mature,  and the
principal  amount  thereof  shall  be due and  payable  on the  last  day of the
Interest  Period  applicable  thereto,  but in no event shall a  Revolving  Loan
mature later than May 31, 2003,  when the Commitment  expires in accordance with
the terms of the Revolving Note as defined in Section 2.4.

         2.4 Revolving  Note;  Interest  Payments.  The Revolving Loans shall be
evidenced  by a single  note in the  form of  Exhibit  A  attached  hereto  (the
"Revolving Note") maturing on May 31, 2003. The Company agrees to deliver to the
Bank the  Revolving  Note in the  principal  amount  of Twenty  Million  Dollars
($20,000,000),  representing  the obligation of the Company to pay the aggregate
unpaid  principal  amount of all  Revolving  Loans from time to time made by the
Bank.  Accrued  interest on the Revolving Note shall be paid monthly on the last
day of the  month,  regardless  of  the  Interest  Period  or  Interest  Periods
selected, or at maturity, whichever is sooner.

         2.5 Floating  Rate Loans.  Floating Rate Loans made on any one occasion
shall be in the  minimum  principal  amount of $25,000  or any  higher  integral
multiple of $25,000.  Principal payments will be in minimum principal amounts of
$25,000 or any higher integral multiple of $25,000. The Company shall notify the
Bank by  telephone  not later than 11:00 a.m.  (Eastern  Time) on the day of the
proposed  borrowing  (or such  other time and date as the  Company  and the Bank
shall  agree),  specifying;  the proposed  date of  borrowing,  which shall be a
Business Day, the amount of such borrowing,  the interest rate, as determined in
this Section,  and the duration of the Interest Period or Interest  Periods,  if
any, applicable thereto. The unpaid principal balance of each Floating Rate Loan
made under the Revolving Note shall bear interest  calculated in accordance with
ss.9.5 and at the  interest  rate  selected  by the Company  from the  following
options ("Interest Rate Option") on the date each Floating Loan is made:

             (a).  Interest  Rate  Option A. For a Federal  Funds Rate Loan at a
rate per annum  equal to the  Federal  Funds Rate  (Index)  plus .75%  (Interest
Spread). Such rate shall change daily.

             (b).  Interest  Rate Option B. For a Eurodollar  Loan at a rate per
annum equal to the  Eurodollar  Rate  (Index)  plus .75%  (Interest  Spread) for
Interest Periods of one month,  three months or six months,  as specified by the
Company.

             (c).  Interest  Rate  Option  C. At a rate per  annum  equal to the
Bank's Prime Rate with any change in such  interest  rate being  effective as of
the day such Prime Rate is changed.

         2.6  Prepayment.  The Company may without  penalty  prepay any Floating
Rate Loan  accruing  interest in  accordance  with Interest Rate Options A or C.
Prepayment of Negotiated Rate Loans or Eurodollar  Loans prior to the end of the
Interest Period will be subject to Prepayment Penalty.

         2.7  Commitment  Fee.  The  Company  shall  pay to the  Bank an  annual
commitment fee in an amount equal to the product of the annual Commitment amount
multiplied  by  .125%  (.00125).  The  commitment  fee  shall  be paid in  equal
quarterly  installments on the last day of each quarter commencing June 30, 2000
through maturity.  For the purpose of prorating the amount of the commitment fee
due, a quarter shall be deemed to consist of 91 days.

                                   SECTION III
                                    TERM LOAN

         3.1 Amount.  The Bank  agrees to make a Term Loan (the "Term  Loan") to
the Company on May 31, 2003, in a principal amount equal to the principal amount
of the Revolving Note outstanding on such date, or any part thereof as specified
by the Company.

         3.2  Proceeds.  The proceeds of the Term Loan shall be applied first to
payment of the  Revolving  Note.  Any  unpaid  balance  of such  Revolving  Note
thereafter remaining,  together with accrued interest shall be contemporaneously
paid  by  the  Company  to the  Bank.  Upon  expiration  or  termination  of the
Commitment  and payment by the Company of all  Obligations on the Revolving Note
held by the Bank,  the Bank shall deliver the Revolving Note to the Company with
a notation that it has been canceled.

         3.3 Term Note. On May 31, 2003, the Company shall deliver to the Bank a
note in the form of Exhibit B attached  hereto (the "Term Note") dated such date
and in a principal  amount equal to the principal  amount of the Term Loan to be
made by the Bank.  The  principal of the Term Note shall be paid in  fortyseven
consecutive  equal monthly  installments of principal plus interest each payable
on the last day of each month commencing June 30, 2003 with a final  installment
due on May 31, 2007, when the unpaid principal amount and the accrued and unpaid
interest on the Term Note shall be payable in full.

         3.4  Interest.   The  Term  Note  shall  bear  interest  calculated  in
accordance  with  Section  9.5 from the date  thereof  on the  unpaid  principal
balance from time to time outstanding at an interest rate per annum equal to the
Company's  option of: (a) a rate  floating  at the Prime Rate with any change in
such interest rate being effective as of the date the Prime Rate is changed, (b)
a rate at the Federal Funds Rate (Index) plus 1.25% (Interest Spread). Such rate
shall change  daily,  or (c) The  Eurodollar  Rate (Index) plus 1.25%  (Interest
Spread)  for  Interest  Periods of one month,  three  months or six  months,  as
specified by the Company.  The Company shall choose an interest rate option when
the Term Loan is  initially  funded which shall remain in effect for the life of
the Loan.  Accrued  interest on the Term Note shall be paid  monthly on the last
day of each month commencing June 30, 2003 and at its maturity.

         3.5  Voluntary  Prepayments.  The  Company  may  make  full or  partial
prepayments for application to the Term Note, provided that (a) the Company pays
accrued interest on the principal prepaid to the date of prepayment, and (b) any
partial  prepayment  shall be in a minimum  aggregate  principal amount equal to
$25,000 or any higher  integral  multiple of $25,000.  Each  partial  prepayment
shall be applied  first to the  payment of accrued  interest  and other  charges
payable  hereunder and then to installments of principal in the inverse order of
maturity.  If interest is accruing based on a Eurodollar  Rate under 3.4(c) then
any prepayment would be subject to a Prepayment Penalty. If interest is accruing
based on the Prime  Rate or Fed Funds  option,  prepayment  may be made  without
premium or penalty.

                                   SECTION IV
           CONDITIONS PRECEDENT TO CLOSING AGREEMENT AND MAKING LOANS

         4.1 Conditions Precedent to Closing Agreement. The following conditions
must be satisfied  contemporaneously with the execution of this Agreement by the
Company:

             (a)  Receipt by the Bank of an opinion  addressed  to the Bank from
McGuire, Woods, Battle, & Boothe, L.L.P., counsel for the Company, substantially
in the form of Exhibit C attached hereto.

             (b) Receipt by the Bank of such other  documents  as the Bank shall
require,  all in form and  substance  satisfactory  to the Bank and its counsel,
including, without limitation, appropriate corporate resolutions and certificate
of incumbency.

         4.2  Conditions  Precedent  to Making  Loans.  (a) Prior to making  the
Revolving Loans, the Bank shall receive an appropriately  completed and executed
Revolving Note, and the following  conditions shall have been satisfied prior to
and after each Loan:

                  (i)  No  event  shall  have  occurred  and  be  continuing  or
condition shall exist, or would result from the proposed  Revolving Loan,  which
constitutes or, with the lapse of time or the giving of notice,  or both,  would
constitute a Default; in the case of a Refunding Loan (as hereinafter  defined),
this  condition  shall only  require  that no event shall have  occurred  and be
continuing or condition exist, or would result from the proposed Refunding Loan,
which constitutes a Default;

                  (ii) The representations and warranties  contained in Sections
6.1 through  6.12 hereof  shall be true and correct on and as of the date of the
proposed  Revolving  Loan  as  though  made on and as of  such  date,  provided,
however,  in the case of a Refunding  Loan, this condition shall not include the
representations and warranties in Sections 6.5 (second sentence), 6.6, 6.7, 6.8,
6.9, 6.10 and 6.12; and

                  (iii) No change shall have  occurred in any law or  regulation
thereunder  or  interpretation  thereof  which in the opinion of counsel for the
Bank would make it illegal for the Bank to make the Revolving  Loans as provided
herein.

         As used herein, the term "Refunding Loan" means a Revolving Loan which,
after  application  of the proceeds  thereof,  results in no net increase of the
outstanding principal amount of the Revolving Loan.

             (b)  Prior to making  the Term  Loan,  the Bank  shall  receive  an
appropriately  completed  and executed  Term Note and the  following  conditions
shall have been satisfied:

                  (i)  No  event  shall  have  occurred  and  be  continuing  or
conditions   shall  exist,  or  would  result  from  the  proposed  Loan,  which
constitutes  or,  with  lapse of time or the giving of  notice,  or both,  would
constitute a Default; and

                  (ii) No change  shall have  occurred in any law or  regulation
thereunder  or  interpretation  thereof  which in the opinion of counsel for the
Bank would make it illegal for the Bank to make the Loans as provided herein.

                                    SECTION V
                              BORROWING PROCEDURES

         5.1 Applicability. The following procedures shall be applicable to each
loan.

         5.2 Notice of  Borrowing.  The  Company  shall  certify to the Bank the
name, title and true signature of each officer of the Company authorized to sign
the Notes and give notice of borrowing hereunder. The Bank may conclusively rely
on such certification  until it receives written notice to the contrary from the
Company.

         5.3 Funds.  The Bank shall make available to the Company on the date of
borrowing the amount of such  borrowing in  immediately  available  funds at its
main office in Richmond, Virginia, during its normal business hours.

         5.4 Method of Payment. All payments of the Obligations shall be made by
the Company to the Bank by check or in immediately available funds, but the Bank
reserves the right to require immediately available funds.

                                   SECTION VI
                         REPRESENTATIONS AND WARRANTIES

         The Company represents and warrants to the Bank (which  representatives
and  warranties  shall  survive the  execution and delivery of the Notes and the
making of the Loans), as follows:

         6.1 Corporate Existence and Standing. The Company is a corporation duly
incorporated,  validly  existing and in good standing under the laws of Virginia
and the  Company has all  requisite  authority  to conduct its  business in each
jurisdiction  in which its business is conducted  and where failure to have such
authority would have a material adverse effect on the Company.

         6.2  Authorization  and  Validity.  The  execution  and delivery by the
Company of this  Agreement and the Notes  (together the "Loan  Documents")  have
been duly authorized by proper corporate  proceedings and this Agreement and the
Revolving  Note  constitute,  and the Term Note when  executed and delivered for
value will  constitute,  legal,  valid and  binding  obligations  of the Company
enforceable in accordance with their  respective terms except as the same may be
limited by bankruptcy,  insolvency,  reorganization and other laws affecting the
enforcement of creditors' rights generally and by usual equity principles.

         6.3  Compliance  with Laws and  Contracts.  Neither the  execution  and
delivery  by  the  Company  of  the  Loan  Documents,  the  consummation  of the
transactions herein contemplated, or compliance with the provisions thereof will
violate any law, rule, regulation, order, writ, judgment, injunction, decree, or
award  binding on the  Company or the  Company's  articles of  incorporation  or
bylaws or the provisions of any indenture, instrument or agreement to which the
Company is a party or  conflict  with or  constitute  a default  thereunder,  or
result in the creation or  imposition  of any Lien  pursuant to the terms of any
such indenture, instrument or agreement.

         6.4 No Governmental  or Other  Approvals.  The execution,  delivery and
performance of the Loan Documents and the  transactions  contemplated  hereby do
not require any  approval or consent  of, or filing or  registration  with,  any
governmental agency, stockholders,  or any other property, except for the filing
of this Agreement  with the Securities and Exchange  Commission as an exhibit to
any report of the Company  pursuant to ss.13 of the  Securities  Exchange Act of
1934.

         6.5  Financial  Statements.  The  financial  statements  of the Company
contained  in the  Company's  Form 10K Annual  Report for the fiscal year ended
January  29,  2000 and in the  Company's  10Q  Quarterly  Report for the fiscal
quarter  ended  October  30,  1999  filed  with  the   Securities  and  Exchange
Commission,  copies of which have been  heretofore  delivered to the Bank,  were
prepared in accordance with generally accepted  accounting  principles in effect
on the dates such  statements  were  prepared and fairly  present the  financial
condition of the Company at the dates of such  statements and the results of its
operations  for the  periods  then  ended.  No  material  adverse  change in the
condition  of the Company as shown on such  financial  statements  has  occurred
since the dates thereof.

         6.6 Taxes.  The Company has filed all United Stated  Federal income tax
returns  and all other tax returns  which are  required to be filed and has paid
all taxes due pursuant to said returns or pursuant to any assessment received by
the Company, except such taxes, if any, as are being contested in good faith and
as to which  adequate  reserves have been  provided.  The charges,  accruals and
reserves  on  the  books  of the  Company  in  respect  of any  taxes  or  other
governmental charges are adequate.

         6.7 Litigation. There is no litigation or proceeding pending or, to the
knowledge of any of its  officers,  threatened  against the Company  which might
materially  and adversely  affect the condition of the Company or the ability of
the Company to perform the Obligations.

         6.8  ERISA.  As of the date of this  Agreement,  the  Company  does not
maintain or contribute to a "multiemployer plan" as defined in section 3(37)(A)
of ERISA,  or any Plan.  The  Company is not in the process of  terminating  any
Plan. To the best of the Company's knowledge and belief, no fact,  including any
event  described  in Section  4043 of ERISA (a  "Reportable  Event"),  exists in
connection with any Plan which might  constitute  grounds for the termination of
any Plan by the Pension Benefit  Guaranty  Corporation or the appointment by the
appropriate United States district court of a trustee to administer any Plan.

         6.9  Defaults.  No Default or  Potential  Default has  occurred  and is
continuing.  The Company is not in default in respect of any of its Indebtedness
for borrowed money and no holder of any such Indebtedness has given notice of an
asserted default thereunder. No liquidation,  dissolution or other winding up of
the Company and no bankruptcy or similar proceedings relative to the Company are
pending or, to the Company's knowledge, threatened.

         6.10  Accuracy  of  Information.  No  information,  exhibit  or  report
furnished by the Company to the Bank in connection  with the  negotiation of the
Loan  Documents  contains any untrue  statement  of a material  fact or omits to
state a material fact necessary to make the statements  contained therein in the
light of the circumstances under which they were made not misleading.

         6.11 Regulation U. The Company is not engaged principally, or as one of
its important activities, in the business of extending credit for the purpose of
purchasing or carrying  "margin  stock" (as defined in Regulation U of the Board
of Governors of the Federal Reserve System).

         6.12 Subsidiaries. The representatives and warranties set forth in 6.1,
6.3, 6.5, 6.6, 6.7, 6.8, 6.9, 6.10 and 6.11 of this Section VI are also true and
correct with respect to any Subsidiary of the Company.

                                   SECTION VII
                                    COVENANTS

         During the term of this  Agreement,  and until the Obligations are paid
in full, unless the Bank shall otherwise consent in writing:

         7.1  The Company will:

         7.1.1 Financial Reporting.  Maintain, for itself and each Subsidiary, a
modern system of accounting, and furnish to the Bank:

             (a)  Within 90 days  after the close of each of its  fiscal  years,
provide   to   the   Bank   an   unqualified    audit   report    certified   by
PricewaterhouseCoopers,  L.L.P.,  or other  accountants  of recognized  national
standing,  prepared in accordance with generally accepted accounting principles,
consistently applied (except for changes in such principles or their application
as approved by such  accountants),  on a  Consolidated  basis for itself and the
Subsidiaries,  including balance sheets as of the end of such period, statements
of income or loss,  statements of changes in stockholders' equity and statements
of cash flows  accompanied  by a certificate  of such  accountants  that, in the
course of their examination  necessary for their certification of the foregoing,
they have obtained no knowledge of any Default or Potential  Default,  or if, in
the opinion of such  accountants,  any Default or Potential Default shall exist,
such certificate shall state the nature and status thereof;

             (b)  Within 60 days  after the close of the first  three  quarterly
periods during each fiscal year, for itself and the Subsidiaries, provide to the
Bank,  Consolidated unaudited balance sheets as at the close of each such period
and  Consolidated  statements  of  income  or loss,  statements  of  changes  in
stockholders'  equity  and  statements  of cash  flows for the  period  from the
beginning  of such  fiscal  year to the end of such  quarter,  all  prepared  in
accordance with generally accepted accounting  principles,  consistently applied
(except for changes in such  principles or their  application as approved by the
Company's  chief  financial  officer),  and  certified  by its  chief  financial
officer;

             (c) Together with the financial statements required under 7.1.1 (a)
and (b) above, a certificate,  dated as of the end of the fiscal period to which
the financial  statements apply, signed by the Company's chief financial officer
stating that to the best of his knowledge and belief there neither exists on the
date of such  certificate,  nor  existed  during  such  period,  any  Default or
Potential  Default,  or if any such  Default  or  Potential  Default  existed or
exists,  the  certificate  shall  specify  the  nature  thereof,  the  period of
existence  thereof and what action the Company has taken,  is taking or proposed
to take with respect thereto;

             (d) Within 90 days after the close of each fiscal year, a statement
of the Unfunded  Liabilities of each Plan which exceeded $100,000,  certified as
correct by an actuary enrolled under ERISA;

             (e) As soon as possible  and in any event  within 10 days after the
Company knows that any Reportable  Event (as described in Section 4043 of ERISA)
has  occurred  with  respect to any Plan which is required to be reported to the
Pension Benefit Guaranty Corporation, a statement, signed by the chief financial
officer of the Company,  describing such  Reportable  Event and the action which
the Company proposes to take with respect thereto; and

             (f)  Promptly  upon  their  becoming  available,  (i) copies of all
financial statements,  proxy statements and reports which the Company shall send
to its  stockholders,  and (ii)  copies of all regular  and  periodic  financial
reports,  if any,  which the Company shall file with the Securities and Exchange
Commission,  or any governmental agency or agencies substituted therefor, or any
similar or corresponding governmental department,  commission,  board, bureau or
agency, or with any national securities exchange;

             (g) Such other information (including nonfinancial information) as
the Bank may from time to time reasonably request.

         7.1.2 Use of  Proceeds.  Use of  proceeds of the Loans only for working
capital and other general corporate purposes,  including funds for the Company's
store expansion.

         7.1.3 Minimum Consolidated  Tangible Net Worth.  Maintain  Consolidated
Tangible  Net Worth at all times of not less than  $48,300,000  of  Consolidated
Tangible Net Worth at January 30, 1999, and for each fiscal year thereafter,  of
not  less  than  $48,300,000  plus 80% of each  successive  year's  net  income.
However,  during the fiscal year  beginning  February  1, 1999,  and all periods
thereafter,  upon approval of the Company's Board of Directors and  notification
to SunTrust, S & K Famous Brands may purchase up to an additional $12,800,000 of
its own  stock.  Any such  repurchases  shall  reduce the  minimum  Consolidated
Tangible Net Worth requirement by 90% of the value of the stock repurchased. The
minimum  Consolidated  Tangible  Net Worth will not be adjusted for any net loss
reported by the Company.

         7.1.4  Current  Ratio.  Maintain  as of the end of  each of its  fiscal
quarters  a  ratio  of  Consolidated  current  assets  to  Consolidated  current
liabilities of not less than 2.5 to 1. For purposes of this computation, amounts
outstanding  under the Revolving Note and the  agreements  referenced in Section
9.16 shall be considered long term debt.

         7.1.5 Ratio of Consolidated  Unsubordinated Liabilities to Consolidated
Effective Tangible Net Worth. Maintain at the end of each fiscal quarter a ratio
of Consolidated  Unsubordinated  Liabilities to Consolidated  Effective Tangible
Net Worth of not greater  than 1.25 to 1 and  maintain at the end of each fiscal
year end a ratio of  Consolidated  Unsubordinated  Liabilities  to  Consolidated
Effective Tangible Net Worth of not greater than .85 to 1.

         7.1.6 Fixed  Charge  Coverage  Ratio.  Maintain,  as of the end of each
fiscal  quarter,  a ratio greater than 1.25 to 1 of (a) the sum of profit before
tax, noncash charges, interest expense (including interest on Capitalized Lease
Obligations)  and operating  lease payments (all for the four most recent fiscal
quarters ending prior to the quarter in which the  determination is made) to (b)
the  sum  of  interest  expense   (including   interest  in  Capitalized   Lease
Obligations),  operating lease payments, Capitalized Lease Obligations, payments
due on Funded Debt for the four ensuing fiscal  quarters  (including the quarter
in which the determination is made), and cash dividends for the four most recent
fiscal quarters ending prior to the quarter in which determination is made.

         7.2  The Company will and will cause each Subsidiary to:

         7.2.1 Notice of Default.  Give prompt  notice in writing to the Bank of
the occurrence of any Default or Potential Default and of any other development,
financial  or  otherwise,  which  might  materially  and  adversely  affect  its
business,  properties  or affairs or the  ability of the  Company to perform the
Obligations.

         7.2.2 Conduct of Business and  Maintenance  of Existence.  Carry on and
conduct business in substantially  the same manner and in substantially the same
fields of enterprise as it is presently  conducted;  and do all things necessary
to remain duly incorporated, validly existing and in good standing as a domestic
corporation  in its  jurisdiction  of  incorporation  and maintain all requisite
governmental authority to conduct business in each jurisdiction in which failure
to maintain such authority would have a material  adverse effect on the Company.
Notwithstanding  the  above,  Subsidiaries  may be  dissolved  if the  continued
existence of such  Subsidiary  is not  material to the business or  Consolidated
financial condition of the Company and its remaining Subsidiaries.

         7.2.3  Taxes.  Pay when due all  taxes,  assessments  and  governmental
charges and levies  upon it or its income,  profits or  property,  except  those
which are being  contested  in good faith by  appropriate  proceedings  and with
respect to which adequate reserves have been set aside.

         7.2.4 Insurance.  Maintain  insurance in such amounts and covering such
risks as is consistent with sound business practice.

         7.2.5 Inspection. Permit the Bank by its representatives and agents and
at its expense, to inspect any of the properties,  corporate books and financial
records of the  Company and each  Subsidiary,  to examine and make copies of the
books  of  accounts  and  other  financial  records  of  the  Company  and  each
Subsidiary, and to discuss the affairs, finances and accounts of the Company and
each Subsidiary  with, and to be advised as to the same by, its officers at such
reasonable times and intervals as the Bank may designate.

         7.3  The Company will not, nor will it permit any Subsidiary to:

         7.3.1  Mergers,   Acquisitions  and  Sale  of  Assets.   (a)  Merge  or
consolidate with or into any other Person;  (b) lease, sell or otherwise dispose
of all, or a  substantial  portion of, its  property,  assets or business to any
other Person; or (c) lease,  purchase or otherwise acquire all, or a substantial
portion of, the property,  assets or business of any other  Person,  except that
(i) any  Subsidiary may merge with, or transfer its assets to, any Subsidiary or
to the Company, (ii) the Company may merge or consolidate with another Person if
the Company is the  surviving  entity and if, after giving  effect to the merger
and consolidation,  there would exist no Default or Potential Default hereunder,
(iii) assets may be leased,  sold or otherwise  disposed of provided such assets
are not  material to the  business or  Consolidated  financial  condition of the
Company  and its  Subsidiaries,  (iv) the  Company  may  purchase or acquire its
inventory from a Person even if such inventory  constitutes all or a substantial
portion of the property, assets or business of such Person, (v) inventory may be
sold in the ordinary  course of business of the Company or any  Subsidiary,  and
(vi) sales, leases or other dispositions in any fiscal year of the Company in an
aggregate amount for the Company and all  Subsidiaries not to exceed  $2,000,000
shall be permitted.

         7.3.2  Sale  of  Accounts.  Sell  or  otherwise  dispose  of any  notes
receivable or accounts receivable, with or without recourse, having an aggregate
face value of more than $400,000.

         7.3.3  Investments.  Make  or  suffer  to  exist  any  Investments,  or
commitments therefore, except:

             (a) Shortterm  obligations  of, or fully  guaranteed as to interest
and principal by, the United States of America.

             (b)  Commercial  paper of any Person  rated at least A2 by Standard
and Poor's or P2 by Moody's Investors Service, Inc.

             (c) Demand deposit  accounts  maintained in the ordinary  course of
its business, or that of its Subsidiaries.

             (d)  Certificates  of deposit  issued by  commercial  banks  having
capital and surplus in excess of $100,000,000.

             (e) Investments in  Subsidiaries,  if, after giving effect thereto,
there would exist no Default or Potential Default hereunder.

             (f) Notes or other  securities  of any Person  issued in connection
with any disposition of assets permitted by this Agreement.

             (g) Any other Investments which, in the aggregate, are less than 5%
of the Consolidated Tangible Net Worth of the Company and its Subsidiaries.

             (h)  Repurchase  of the Company's  outstanding  shares , if , after
giving effect  thereto,  there would not exist any Default or Potential  Default
hereunder subject to Section 7.1.3.

         7.3.4 Guaranties. Make or suffer to exist any Guaranties, except (a) by
endorsement of instruments  for deposit or collection in the ordinary  course of
business  and  (b)  the  guaranty  by  the  Company  of the  obligations  of any
Subsidiary or issuing authority in connection with any industrial  revenue bonds
issued to finance the purchase or  construction of facilities to be purchased by
or leased to the Company or any Subsidiary.

         7.3.5  Liens.  Create, incur, or suffer to exist any Lien, except:

             (a)  Those in favor of the Company by its Subsidiaries.

             (b) Those for taxes,  assessments or governmental charges or levies
on its property if the same shall not at the time be  delinquent  or  thereafter
can be paid  without  penalty,  or are  being  contested  in good  faith  and by
appropriate proceedings.

             (c) Those  imposed by law,  such as liens in favor of  lessors  for
distraint and similar  remedies and  carriers',  warehousemen's,  and mechanics'
liens and other similar liens arising in the ordinary  course of business  which
secure  payment of  obligations  not more than 90 days past due, or, if the same
are more than 90 days past due, those that are being contested in good faith and
by appropriate proceedings.

             (d)  Those  arising  out of  pledges  or  deposits  under  worker's
compensation laws,  unemployment  insurance,  old age pensions,  or other social
security or retirement benefits, or similar legislation.

             (e)  Utility  easements,   building  restrictions  and  such  other
encumbrances  or charges  against  real  property  as are of a nature  generally
existing with respect to  properties of a similar  character and which do not in
any material way affect the  saleability  of the same or interfere  with the use
thereof in the business of the Company or the Subsidiaries.

             (f) Liens and charges for  maintenance,  repairs and  operation  of
facilities  owned  or  leased  by the  Company  or its  Subsidiaries  or used in
connection therewith,  arising under joint easement and maintenance  agreements,
reciprocal  easement  agreements  or  similar  documents  governing  the  use or
occupancy of such facilities.

             (g)  Judgment  liens not in existence  for a period  longer than 60
days after the  creation  thereof,  or, if a stay of  execution  shall have been
obtained, for a period longer than 60 days after the expiration of such stay.

             (h)  Lessors' interests under Financing Leases.

             (i)  Those disclosed in exhibit D attached hereto.

             (j) Liens  securing the purchase or deferred  price of fixed assets
if the Lien extends only to the property acquired.

             (k) Equitable liens in favor of dissenting shareholders of acquired
corporations  for the  fair  market  value  of  their  shares  of  stock of such
corporations.

             (l)  Liens  in  addition  to  those  permitted  above  securing  an
aggregate amount not exceeding 1% of the Consolidated  Tangible Net Worth of the
Company and its Subsidiaries at any one time.

         7.3.6 Prepayment of Subordinated  Debt. Prepay, in whole or in part (or
upon the occurrence and continuation of a Default,  repay), the principal amount
of any of its Subordinated Debt.

         7.3.7  Purchase  of Stock.  Extend  credit to others for the purpose of
purchasing  or  carrying  any  "margin   stock"  (as  defined  in  Regulation  U
promulgated by the Board of Governors of the Federal  Reserve System) or use any
of the proceeds of the Loans made under this  Agreement to purchase or carry any
"margin stock."

                                  SECTION VIII
                                    DEFAULTS

         8.1  Events  of  Default.  The  occurrence  of any  one or  more of the
following events shall constitute a Default:

         8.1.1 Any material  representation  or warranty  made by the Company to
the Bank under or in connection with any Loan Document shall be materially false
as of the date on which made.

         8.1.2  Nonpayment of principal of or interest or commitment  fee on any
of the Notes within 5 days after the same becomes due.

         8.1.3 The breach by the  Company of any of the terms or  provisions  of
sections 7.1.2,  7.1.3,  7.1.4, 7.1.5, 7.1.6, 7.2.2, 7.3.1, 7.3.2, 7.3.3, 7.3.4,
7.3.5, 7.3.6, or 7.3.7.

         8.1.4 The  Company  shall  breach or fail to  perform  any of the other
terms or provisions of the Agreement and such default shall continue for 30 days
after written notice thereof has been given to the Company by the Bank.

         8.1.5 The  Company  or any  Subsidiary  shall (a) not pay,  or admit in
writing its  inability to pay, its debts  generally as they become due, (b) make
an assignment for the benefit of creditors,  (c) apply for, seek, consent to, or
acquiesce  in, the  appointment  of a receiver,  custodian,  trustee,  examiner,
liquidator or similar  official for it or any substantial  part of its property,
(d) institute any  proceeding  seeking to adjudicate it insolvent,  or seeking a
decree  or  order  for  relief  in  bankruptcy  or   dissolution,   winding  up,
liquidation, reorganization, arrangement, adjustment or composition of it or its
debts under any law relating to  bankruptcy,  insolvency  or  reorganization  or
relief  of  debtors  or fail to file an  answer or other  pleading  denying  the
material  allegations  of any such  proceeding  filed  against  it, (e) take any
corporate  action to authorize or effect any of the foregoing  actions set forth
in this Section 8.1.5,  or (f) fail to contest in good faith any  appointment or
proceeding described in Section 8.1.6.

         8.1.6  Without the  application,  approval or consent of the Company or
any Subsidiary, a receiver,  custodian, trustee, examiner, liquidator or similar
official shall be appointed for the Company or any Subsidiary or any substantial
part of its property,  or a proceeding  described in Section  8.1.5(d)  shall be
instituted against the Company or any Subsidiary and such appointment  continues
undischarged or such proceeding  continues  undismissed or unstayed for a period
of 60 days.

         8.1.7 Any court, government or governmental agency shall condemn, seize
or  otherwise  appropriate,  or take custody or control of all or any portion of
the property of the Company or any  Subsidiary  which is material to the conduct
of the business of the Company and the Subsidiaries on a Consolidated basis, and
for which the Company does not receive market consideration.

         8.1.8 The Company or any  Subsidiary  shall fail within 60 days to pay,
bond or  otherwise  discharge  any judgment or order for the payment of money in
excess  of  $500,000,   which  is  not  stayed  on  appeal  or  otherwise  being
appropriately contested in good faith.

         8.1.9 The Unfunded  Liabilities  of all Plans shall exceed  $500,000 in
the aggregate.

         8.1.10 An Event of Default under the Bond Purchase Agreement.

         8.1.11 An Event of Default under the Credit Agreement and/or Notes with
First Union National Bank.

         8.2 Acceleration  and Recourse.  Upon the occurrence of any Default the
Bank may, at its option,  by notice given to the Company,  terminate  the Bank's
Commitment and, if Loans are then outstanding, declare the then outstanding Note
to be forthwith due and payable,  whereupon  the  principal  amount of such Note
together with accrued interest thereon shall become  immediately due and payable
without presentment,  demand, protest, or other notice of any kind, all of which
are hereby expressly waived by the Company.

                                   SECTION IX
                                  MISCELLANEOUS

         9.1 Notices. All written notices hereunder shall be deemed to have been
given (i) when  delivered at the address  specified on the signature page hereto
or at such other  address  as a party may  hereafter  advise the other  party in
writing or (ii) three  calendar days after the same shall have been deposited in
the United  States  mail,  by  certified  or  registered  mail,  return  receipt
requested, postage prepaid.

         9.2 Term of Agreement.  This Agreement shall continue in effect so long
as any Commitment, Loan, Note or Obligation of the Company shall be outstanding.

         9.3 No Waivers. Any failure by the Bank to exercise any right hereunder
shall not be  construed  as a waiver of the  right to  exercise  the same or any
other right at any time. The rights and remedies  herein provided are cumulative
and not exclusive of any rights or remedies otherwise provided by law.

         9.4  Jurisdiction.  This  Agreement and each Note shall be construed in
accordance with and governed by the laws of the Commonwealth of Virginia.

         9.5 Computation of Interest.  Interest shall be calculated daily on the
unpaid principal  balance of the outstanding  Notes and shall be computed on the
basis of a year of 365 days and paid for the  actual  number  of days for  which
due. Such daily  computation  shall not be  compounded.  If the due date for any
payment of principal is extended by operation of law,  interest shall be payable
for such  extended  time.  If any  payment  becomes  due on a day which is not a
Business Day such payment may be made on the next  succeeding  Business Day, and
such  additional  day(s) shall be included in computing  interest in  connection
with such payment.

         9.6  Expenses,  Taxes,  Etc. The Company  agrees to pay all  reasonable
outofpocket  expenses  of the Bank and the  reasonable  fees and  expenses  of
counsel to the Bank, in connection with the preparation of all  documentation in
connection with this Agreement,  the Loans and the enforcement thereof,  whether
or not any Loans are made.  The Company  agrees to indemnify the Bank from,  and
hold it harmless against, any taxes, charges or penalties (other than in respect
of taxes  imposed  upon or  measured  by the income of the Bank)  imposed by any
governmental authority by reason of the execution and delivery of this Agreement
or the  issuance  or the  acquisition  of the  Notes or the  making of any Loans
unless any such tax,  charge or penalty shall be the result of the negligence or
misconduct  of the Bank.  In the event that the Bank shall retain at any time an
attorney  to  collect,  enforce or protect  its  interest  with  respect to this
Agreement,  any Loan or any  Note,  the  Company  shall pay all of the costs and
expenses of such  collection,  enforcement or protection,  including  reasonable
fees of attorneys, and the Bank may take judgment for all such amounts.

         9.7  Accounting  Terms.  Unless  expressly  otherwise  defined  in this
Agreement,   all  accounting   terms  shall  be  defined,   and  all  accounting
computations  shall be made, in accordance  with generally  accepted  accounting
principles.

         9.8 Repayment in Bankruptcy. In the event any amount of the Obligations
is paid by the  Company  and  because of  bankruptcy  or other laws  relating to
creditors'  rights  the Bank  repays any such  amounts to the  Company or to any
trustee,  receiver or  otherwise,  then the amounts so repaid shall again become
part of the Obligations.

         9.9  Changes,  Waivers,  Etc.  This  Agreement  may not be  amended  or
terminated orally, but only by a statement in writing signed by both parties.

         9.10  Singular and Plural.  Terms in the singular  number shall include
the plural and those in the plural shall include the singular.

         9.11 Use of Defined Terms.  All terms defined in this  Agreement  shall
have  the  defined  meanings  when  used in the  Notes  and in  other  documents
delivered  pursuant  to this  Agreement,  unless  the  context  shall  otherwise
require.

         9.12 Binding Effect of Agreement.  This Agreement shall be binding upon
and  inure  to the  benefit  of the  Company,  the  Bank  and  their  respective
successors and assigns, provided that the Company may not assign or transfer its
rights hereunder.

         9.13 Headings.  Headings or captions have been inserted for convenience
only  and  shall  not be  construed  as  limiting  or  affecting  in any way the
provisions of this Agreement.

         9.14  Counterparts.  This  Agreement  may be  signed  in any  number of
counterparts  with the same  effect  as if such  signatures  were  upon the same
instrument.

         9.15 Cross  Default.  The Company  agrees  that if the  maturity of the
Notes shall be accelerated  because of a Default hereunder or if the Notes shall
mature and be unpaid when due,  upon request of the Bank and tender of the Bonds
(the  "Bonds")  issued  under the Bond  Purchase  Agreement  to the Company duly
endorsed without recourse,  the Company shall purchase (or cause its designee to
purchase) the Bonds from the Bank at a price equal to the outstanding  principal
amount of the Bonds plus accrued interest thereon to the date of purchase.

         9.16 Additional  Banks/Loan  Agreements.  The Bank understands that the
Company also maintains a $20,000,000  revolving credit facility with First Union
National Bank. The Bank further understands that the terms and conditions of the
$20,000,000 loan agreement do not conflict with those in this Agreement and that
all loan proceeds from any First Union  National Bank loans are used for working
capital and general corporate purposes.  During the term of this Agreement,  the
Company  or any  Subsidiary  agrees  that it shall not enter into any other loan
agreement(s) which would cause its Indebtedness to exceed $40,000,000 (excluding
loans under the Bond Purchase Agreement).

         WITNESS the following signatures.

                                    S&K FAMOUS BRANDS, INC.

                                    By:      /s/ Robert E. Knowles

                                    Title:   Executive Vice President
                                             Chief Financial Officer

                                    Address: 11100 West Broad Street
                                             P.O. Box 31800
                                             Richmond, Virginia  232941800
                                             Attn:  Executive Vice President and
                                                    Chief Financial Officer

                                    SunTrust Bank

                                    By       /s/ W. A. Stratton

                                    Title    Senior Vice President

                                    Address: 919 East Main Street
                                             P.O. Box 26665
                                             Richmond, Virginia 23261
                                             William A. Stratton

<PAGE>

                                    EXHIBIT A
                                 REVOLVING NOTE

$20,000,000                                                   Richmond, Virginia
                                                                   May, 31, 2000

         FOR VALUE  RECEIVED,  on May 31,  2003,  S&K  FAMOUS  BRANDS,  INC.,  a
Virginia  corporation (the  "Borrower"),  hereby promises to pay to the order of
SunTrust  Bank (the  "Payee" or the  "Bank") at its main  office,  in  Richmond,
Virginia,  in lawful money of the United States, the principal of Twenty Million
and no/100 Dollars ($20,000,000) or the aggregate unpaid principal amount of all
Revolving  Loans  made by the  Payee  to the  Borrower  pursuant  to the  Credit
Agreement  hereinafter  referred to,  whichever is less (the  "Principal").  The
Borrower  further  promises to pay interest on the last day of each month during
the term hereof,  commencing  June 30,  2000,  and on the last day of each month
thereafter and on May 31, 2003, on the amount of the Principal from time to time
outstanding  during the period beginning on the date hereof and continuing until
this  Note  is  paid in full  at a rate  or  rates  provided  for in the  Credit
Agreement.  Interest  payable  hereunder  shall be  calculated on the basis of a
365day year and paid for the actual number of days for which due.

         This Note is issued  pursuant  to and  subject to the  provisions  of a
certain Credit Agreement dated as of May 31, 2000,  between the Borrower and the
Bank (herein,  as the same may from time to time be amended,  referred to as the
"Credit Agreement");  but neither this reference to the Credit Agreement nor any
provisions  thereof  shall  affect  or impair  the  absolute  and  unconditional
obligation  of the Borrower to pay the Principal of and Interest on this Note as
herein provided.

         This Note is subject to  prepayment,  in whole or in part, as specified
in the Credit Agreement.  In case a Default, as defined in the Credit Agreement,
shall occur and be continuing, this Note may become or may be declared to be due
and payable in the manner and with the effect provided in the Credit  Agreement,
and the  Borrower  hereby  agrees to pay all costs and  expenses  in  connection
therewith,  including  reasonable  attorney's  fees,  as  provided in the Credit
Agreement.

         The Borrower and all  guarantors,  endorsers and pledgors hereof hereby
waive presentment,  demand,  notice of dishonor,  protest, and all other demands
and notices in connection with the delivery,  acceptance and performance of this
Note.

         This Note shall be governed by and  interpreted in accordance  with the
laws of the Commonwealth of Virginia.

         In Witness  Whereof,  the Borrower has caused its corporate  name to be
signed  by its  duly  authorized  officer  as of the day and  year  first  above
written.

                                          S&K FAMOUS BRANDS, INC.

                                          By      /s/ Robert E. Knowles

                                          Title   Executive Vice President
                                                  Chief Financial Officer

<PAGE>

                                    EXHIBIT B
                                    TERM NOTE

$_____________                                                Richmond, Virginia
                                                                    May 31, 2003

         FOR VALUE  RECEIVED,  S&K FAMOUS BRANDS,  INC., a Virginia  corporation
(the  "Borrower"),  hereby  promises to pay to the order of  SunTrust  Bank (the
"Payee" or the "Bank") at its main  office,  in  Richmond,  Virginia,  in lawful
money  of  the  United  States,   the  principal  of   _______________   Dollars
($_______________)   (the  "Principal"),   in  fortyseven  consecutive  monthly
installments of principal of  _____________________  Dollars  ($_______________)
each, plus interest, commencing on June 30, 2003, and continuing on the last day
of each month  thereafter  and one final  payment of principal of  _____________
Dollars ($_______________) on May 31, 2007, when the entire unpaid Principal and
accrued  interest  thereon shall be paid in full.  The Borrower  hereby  further
promises to pay interest  from the date hereof on the amount of  Principal  from
time to time  outstanding  at a rate or  rates  as  provided  for in the  Credit
Agreement.  Interest  shall be payable on the last day of each month  during the
term  hereof,  commencing  on June 30,  2003,  and on the last day of the  month
thereafter  and on May 31, 2007.  Interest shall continue to accrue on this Note
after  maturity  at the rate set forth above and shall then be payable on demand
of the holder of this Note.  Interest  payable  hereunder shall be calculated on
the basis of a  365day  year and paid for the  actual  number of days for which
due.

         This Note is issued  pursuant  to and  subject to the  provisions  of a
certain Credit Agreement dated as of May 31, 2000,  between the Borrower and the
Payee (herein, as the same may from time to time be amended,  referred to as the
"Credit Agreement");  but neither this reference to the Credit Agreement nor any
provision  thereof  shall  affect  or  impair  the  absolute  and  unconditional
obligation  of the Borrower to pay the Principal of and interest on this Note as
herein provided.

         This Note is subject to  prepayment,  in whole or in part, as specified
in the Credit Agreement.  In case a Default, as defined in the Credit Agreement,
shall occur and be continuing, this Note may become or may be declared to be due
and payable in the manner and with the effect provided in the Credit  Agreement,
and the  Borrower  hereby  agrees to pay all costs and  expenses  in  connection
therewith,  including  reasonable  attorney's  fees,  as  provided in the Credit
Agreement.

         The Borrower and all  guarantors,  endorsers and pledgors hereof hereby
waive presentment, demand, notice of dishonor, protest and all other demands and
notices in connection with the delivery, acceptance, performance and enforcement
of this Note.

         This Note shall be governed by and  interpreted in accordance  with the
laws of the Commonwealth of Virginia.

         IN WITNESS  WHEREOF,  the Borrower has caused its corporate  name to be
signed  by its  duly  authorized  officer  as of the day and  year  first  above
written.

                                       S&K FAMOUS BRANDS, INC.

                                       By ____________________________________

                                       Title _________________________________

<PAGE>

                                    EXHIBIT D

                                  LIST OF LIENS

1.  Liens  created  in favor of the  holder  of the Bonds  pursuant  to the Bond
Purchase Agreement.

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