----

----

----

|                                                                                                                                                                                                                                                     |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| U.S. BORROWERS                                                                                                                                                                                                                                      | CANADIAN BORROWER |
| AMERICAN BILTRITE INC. By:        /s/ Richard G. Marcus__________ Title:      President____________________                                                         | AMERICAN BILTRITE (CANADA) LTD. By:         /s/ Richard G. Marcus__________ Title:       President____________________  |
|                                                                                                                                                                                                                                                     |   |
| IDEAL TAPE CO., INC. By:        /s/ Richard G. Marcus__________ Title:      President____________________                                                           |   |
|                                                                                                                                                                                                                                                     |   |
| K&M ASSOCIATES L.P. By:  AIMPAR, Inc., its General Partner By:        /s/ Richard G. Marcus__________ Title:      President____________________  |   |
|                                                                                                                                                                                                                                                     |   |
|                                                                                                                                                                                                                                                     |   |
|                                                                                                                                                                                                                                                     |
| [SIGNATURES CONTINUED ON NEXT PAGE]                                                                                                                                                                                                                      |

|   |   |   |
|--------|--------|--------|

----

| [SIGNATURES CONTINUED FROM PREVIOUS PAGE]                                                                                                                                                                                                                                 |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                      |
|                                                                                                                                                                                                                                                                      |   |
| U.S. GUARANTORS                                                                                                                                                                                                                                                      |   |
| 425 DEXTER ASSOCIATES, L.P. By:  AIMPAR, Inc., its General Partner By:        /s/ Richard G. Marcus___________ Title:      President_______________­_____   |   |
|                                                                                                                                                                                                                                                                      |   |
| OCEAN STATE JEWELRY, INC. By:        /s/ Richard G. Marcus__________ Title:      President____________________                                                                       |   |
|                                                                                                                                                                                                                                                                      |   |
| AMERICAN BILTRITE FAR EAST, INC. By:        /s/ Richard G. Marcus__________ Title:      President____________________                                                                |   |
|                                                                                                                                                                                                                                                                      |   |
| MAJESTIC JEWELRY, INC. By:        /s/ Richard G. Marcus__________ Title:      President____________________                                                                     |   |
|                                                                                                                                                                                                                                                                      |   |
|                                                                                                                                                                                                                                                                      |   |
|                                                                                                                                                                                                                                                                      |
| [SIGNATURES CONTINUED ON NEXT PAGE]                                                                                                                                                                                                                                       |

|   |   |   |
|--------|--------|--------|

----

| [SIGNATURES CONTINUED FROM PREVIOUS PAGE]                                                                                                                                                                                     |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                          |   |
| ACCEPTED AND AGREED:                                                                                                                                                                                                          |   |
|                                                                                                                                                                                                                          |   |
| AGENT:                                                                                                                                                                                                                   |   |
| WACHOVIA BANK, NATIONAL ASSOCIATION By:       /s/ Marc. J. Breier_____________ Title:     Managing Director____________                            |   |
|                                                                                                                                                                                                                          |   |
| ISSUING BANK:                                                                                                                                                                                                            |   |
| WACHOVIA BANK, NATIONAL ASSOCIATION By:       /s/ Marc. J. Breier_____________ Title:     Managing Director____________                            |   |
|                                                                                                                                                                                                                          |   |
| LENDERS: WACHOVIA BANK, NATIONAL ASSOCIATION By:       /s/ Marc. J. Breier_____________ Title:     Managing Director____________    |   |
| WACHOVIA CAPITAL FINANCE CORPORATION (CANADA) By:       /s/ Laurence S. Forte____________ Title:     Managing Director______________          |   |
|                                                                                                                                                                                                                          |   |