SPLIT-DOLLAR AGREEMENT

                    SPLIT-DOLLAR AGREEMENT (this "Agreement") made
          and entered into as of this 20th day of December, 1996 by
          and between American Biltrite Inc., a Delaware
          corporation with principal offices and a principal place
          of business in the Commonwealth of Massachusetts (the
          "Corporation"), and the Marcus Family 1996 Irrevocable
          Insurance Trust Dated October 28, 1996 (the "Trust").  

                    Richard G. Marcus, an individual residing in
          the Commonwealth of Massachusetts (the "Employee"), is
          employed by the Corporation as its President.

                    The Employee desires that his family be
          provided life insurance protection under a survivorship
          life insurance policy insuring the Employee's life and
          the life of Beth A. Marcus, the Employee's wife (each, an
          "Insured" and together, the "Insureds").  Such policy is
          described in Exhibit A attached hereto and by this
          reference is made a part hereof (the "Policy").  The
          Policy has being issued by John Hancock Variable Life
          Insurance Company (the "Insurer").

                    The Trust is the owner of the Policy and, as
          such, possesses all incidents of ownership in and to the
          Policy, including without limitation the right to
          designate the Policy beneficiary.

                    The Corporation is willing to pay a portion of
          the premiums due on the Policy as an additional
          employment benefit for the Employee, on the terms and
          conditions hereinafter set forth.

                    The Corporation desires to have the Policy
          collaterally assigned to it by the Trust in order to
          secure the repayment of the amounts which it will pay
          toward the premiums on the Policy.

                    In consideration of the premises and of the
          mutual promises contained herein, the parties hereto
          agree as follows:

                    1.   PURCHASE OF POLICY.  The Trust has
                         purchased the Policy from the Insurer with
                         a Total Sum Insured at Issue (as such term
                         is defined in the Policy) of $2,500,000. 
                         The parties hereto agree that they will
                         take all necessary action to cause the
                         Insurer to issue the Policy and will take
                         any further action which may be necessary
                         to cause the Policy to conform to the
                         provisions of this Agreement.  The parties
                         hereto agree that the Policy shall be
                         subject to the terms and conditions of
                         this Agreement and of the related
                         collateral assignment filed with the
                         Insurer relating to the Policy.

                    2.   OWNERSHIP OF POLICY.  The Trust shall be
                         the sole and absolute owner of the Policy
                         and shall have and may exercise all
                         ownership rights granted to the owner  
                         thereof by the terms of the Policy,
                         including without limitation the right to
                         designate the Policy beneficiary and the
                         right to elect and change both the Total
                         Sum Insured at Issue and the investment
                         options of the Policy, except as may
                         otherwise be provided herein.

                    3.   PAYMENT OF PREMIUMS.  

                              a.   On or prior to the date which is
                         30 days prior to the due date of each
                         Policy premium, the Corporation shall
                         notify the Employee and the Trust of the
                         exact amount due from the Trust to the
                         Corporation hereunder toward payment of
                         the Planned Premium (as such term is
                         defined in the Policy).  While both
                         Insureds are alive, such amount shall be
                         equal to the annual cost of current joint
                         life insurance protection on the joint
                         lives of the Insureds, measured by the
                         lower of the P.S. 38 rate or the Insurer's
                         current published premium rate for
                         annually renewable term insurance for
                         standard risks.  After the death of the
                         first Insured to die, such amount shall be
                         equal to the annual cost of current life
                         insurance protection on the life of the
                         surviving Insured, measured by the lower
                         of the P.S. 58 rate, set forth in Revenue
                         Ruling 55-747 (or the corresponding
                         applicable provision of any future Revenue
                         Ruling), or the Insurer's current
                         published premium rate for annually
                         renewable term insurance for standard
                         risks.  The Trust shall pay such required
                         contribution to the Corporation prior to
                         the premium due date.  If the Trust fails
                         to make such timely payment, the
                         Corporation, in its sole discretion, may
                         elect to make such portion of the premium
                         payment, which payment shall be recovered
                         by the Corporation as provided herein.  

                              b.   On or before the due date of
                         each Policy premium, or within the grace
                         period provided therein, the Corporation
                         shall pay the full amount of the Planned
                         Premium to the Insurer and shall, upon
                         request, promptly furnish the Employee
                         evidence of timely payment of such
                         premium.  Except with the consent of the
                         Trust, the Corporation shall not pay less
                         than the Planned Premium, but it may, in
                         its discretion, at any time and from time
                         to time, subject to acceptance of such
                         amount by the Insurer, pay more than the
                         Planned Premium or make other premium
                         payments on the Policy.  The Corporation
                         shall annually furnish the Employee a
                         statement of the amount of income
                         reportable by the Employee for federal and  
                         state income tax purposes as a result of
                         the insurance protection provided to the
                         Policy beneficiary.

                    4.   COLLATERAL ASSIGNMENT.  To secure
                         repayment to the Corporation of the amount
                         of the premiums on the Policy paid by it
                         hereunder, the Trust has contemporaneously
                         herewith assigned the Policy to the
                         Corporation as collateral, under a form
                         acceptable to the Insurer for such
                         assignments.  The collateral assignment of
                         the Policy to the Corporation hereunder
                         shall not be terminated, altered or
                         amended by the Trust without the express
                         written consent of the Corporation.  The
                         parties hereto agree to take all action
                         necessary to cause such collateral
                         assignment to conform to the provisions of
                         this Agreement.

                    5.   LIMITATIONS ON TRUST'S RIGHTS IN POLICY.

                              a.   Except as otherwise provided
                         herein, the Trust shall not sell, assign,
                         transfer, borrow against or withdraw from
                         the cash surrender value of the Policy,
                         surrender or cancel the Policy, change the
                         beneficiary designation provision thereof
                         or increase or decrease the Total Sum
                         Insured at Issue without, in any such
                         case, the express written consent of the
                         Corporation.

                              b.   Notwithstanding any provision
                         hereof to the contrary, the Trust shall
                         have the sole authority to direct the
                         manner in which amounts in and among the
                         Subaccounts (as such term is defined in
                         the Policy) established pursuant to the
                         terms of the Policy shall be allocated
                         among the various investment options from
                         time to time available under the Policy
                         and to change such allocation from time to
                         time, as provided for in the Policy;
                         provided, however, that at least 50% of
                         the annual premium paid must at all times
                         be allocated to one or more of the
                         following:  a Fixed Account (as such term
                         is defined in the Policy); a short-term
                         government bond fund; or a money market
                         account.

                              c.   The Corporation shall have the
                         right to borrow that portion of the loan
                         value of the Policy equal in amount to the
                         total amount of the premiums advanced by
                         the Corporation on behalf of the Trust
                         hereunder, reduced by any then outstanding
                         indebtedness secured by the Policy which
                         was incurred by the Corporation, including
                         any interest due on such indebtedness (the
                         "net premiums").  Interest on such Policy  
                         loan shall be the responsibility of the
                         Corporation as such interest becomes due. 
                         The Trust shall have the right to borrow
                         that portion of the loan value of the
                         Policy equal in amount to the net premiums
                         for the sole purpose of paying such amount
                         to the Corporation under Section 8(a) of
                         this Agreement if it is terminated during
                         the lifetime of either of the Insureds. 
                         In the event of any such borrowing, the
                         loan proceeds shall be paid by the Insurer
                         directly to the Corporation, and such
                         payment shall discharge completely all
                         obligations owing from the Trust to the
                         Corporation under this Agreement with
                         respect to the Policy.  Interest on any
                         such Policy loan shall be the
                         responsibility of the Trust as such
                         interest becomes due.

                    6.   COLLECTION OF DEATH PROCEEDS.

                              a.   Upon the death of the last
                         surviving Insured, the Corporation and the
                         Trust shall cooperate to take whatever
                         action is necessary to collect the death
                         benefit provided under the Policy.  When
                         such benefit has been collected and paid
                         as provided herein, this Agreement shall
                         thereupon terminate.

                              b.   Upon the death of the last
                         surviving Insured, the Corporation shall
                         have the unqualified right to receive a
                         portion of such death benefit equal to the
                         net premiums paid by it.  The balance of
                         the death benefit provided under the
                         Policy, if any, shall be paid directly to
                         the Policy beneficiary in the manner and
                         in the amount or amounts provided in the
                         beneficiary designation provision of the
                         Policy.  In no event shall the amount
                         payable to the Corporation hereunder
                         exceed the Policy proceeds payable as a
                         result of the maturity of the Policy as a
                         death claim.  No amount shall be paid from
                         such death benefit to the Policy
                         beneficiary until the full amount due the
                         Corporation hereunder has been paid.

                              c.   Notwithstanding any provision
                         hereof to the contrary, in the event that,
                         for any reason whatsoever, no death
                         benefit is payable under the Policy upon
                         the death of the last surviving Insured
                         and in lieu thereof the Insurer refunds
                         all or any part of the premiums paid for
                         the Policy, the Corporation shall have the
                         unqualified right to such premiums in an
                         amount not to exceed the net premiums paid
                         by it.
                    7.   TERMINATION OF THIS AGREEMENT DURING THE
                         LIFETIME OF EITHER OF THE INSUREDS.

                              a.   This Agreement shall terminate
                         during the lifetime of either of the
                         Insureds, without notice, upon the
                         occurrence of any of the following events:
                         (a) total cessation of the Corporation's
                         business; (b) liquidation or dissolution
                         of the Corporation; or (c) termination of
                         the Employee's employment by the
                         Corporation for Cause (as defined below). 
                         For the purposes of this Section 7(a),
                         "Cause" shall mean (i) conviction of the
                         Employee for any felony or for fraud or
                         embezzlement; (ii) the Employee's willful
                         and continued refusal to substantially
                         perform reasonably assigned duties with
                         the Corporation (other than any such
                         refusal resulting from incapacity due to
                         physical or mental illness or disability)
                         after a written demand for substantial
                         performance is delivered to the Employee
                         identifying the manner in which the
                         Corporation believes that the Employee has
                         willfully and continuously refused to
                         substantially perform his duties; or (iii)
                         other willful misconduct by the Employee
                         which is materially injurious to the
                         Corporation.  For the purposes of this
                         Section 7(a), no act or failure to act
                         shall be considered "willful" unless done
                         or omitted to be done not in good faith
                         and without reasonable belief that such
                         action or omission was in the best
                         interests of the Corporation.

                              b.   The Corporation may terminate
                         this Agreement at any time after the date
                         which is 16 years after the Date of Issue
                         (as such term is defined in the Policy) by
                         written notice to the Trust.  Such
                         termination shall be effective as of the
                         date of such notice.  

                              c.   In addition, the Trust may
                         terminate this Agreement during the
                         lifetime of either of the Insureds and
                         while no premium under the Policy is
                         overdue by written notice to the
                         Corporation.  Such termination shall be
                         effective as of the date of such notice.

                    8.   DISPOSITION OF THE POLICY ON TERMINATION
                         OF THIS AGREEMENT DURING THE LIFETIME OF
                         EITHER OF THE INSUREDS.

                              a.   For 60 days after the date of
                         the termination of this Agreement during
                         the lifetime of either of the Insureds
                         under Section 7 of this Agreement, the
                         Trust shall have the option of obtaining
                         the release of the collateral assignment  
                         of the Policy to the Corporation.  To
                         obtain such release, the Trust shall repay
                         to the Corporation an amount equal to the
                         total amount of the net premiums paid by
                         the Corporation.  Upon receipt of such
                         amount, the Corporation shall release the
                         collateral assignment of the Policy by the
                         execution and delivery of an appropriate
                         instrument of release.

                              b.   If the Trust fails to exercise
                         such option within such 60-day period,
                         then, at the request of the Corporation,
                         the Trust shall execute any document or
                         documents required by the Insurer to
                         transfer all interests of the Trust in the
                         Policy, including without limitation the
                         Trust's right to designate the Policy
                         beneficiary, to the Corporation. 
                         Alternatively, the Corporation may enforce
                         its right to be repaid the amount due it
                         hereunder from the cash surrender value of
                         the Policy under the collateral assignment
                         of the Policy; provided, however, that in
                         the event the cash surrender value of the
                         Policy exceeds the amount due the
                         Corporation hereunder, such excess shall
                         be paid to the Trust.  Thereafter, neither
                         the Trust nor the Trust's successors,
                         assigns or beneficiaries shall have any
                         further interest in and to the Policy
                         under the terms thereof or under this
                         Agreement.

                    9.   INSURER NOT A PARTY.  The Insurer shall be
                         fully discharged from its obligations
                         under the Policy by payment of the Policy
                         death benefit to the beneficiary or
                         beneficiaries named in the Policy, subject
                         to the terms and conditions of the Policy. 
                         In no event shall the Insurer be
                         considered a party to this Agreement or
                         any modification or amendment hereof.  No
                         provision of this Agreement nor of any
                         modification or amendment hereof shall in
                         any way be construed as enlarging,
                         changing, varying or in any other way
                         affecting the obligations of the Insurer
                         as expressly provided in the Policy,
                         except insofar as the provisions hereof
                         are made a part of the Policy by the
                         collateral assignment executed by the
                         Trust and filed with the Insurer in
                         connection herewith.

                    10.  NAMED FIDUCIARY, DETERMINATION OF
                         BENEFITS, CLAIMS PROCEDURE AND
                         ADMINISTRATION.

                              a.   The Corporation is hereby
                         designated as the named fiduciary under
                         this Agreement.  The named fiduciary shall
                         have authority to control and manage the  
                         operation and administration of this
                         Agreement, and it shall be responsible for
                         establishing and carrying out a funding
                         policy and method consistent with the
                         objectives of this Agreement.  The
                         Corporation may allocate to others certain
                         aspects of the management and operational
                         responsibilities of this Agreement,
                         including by the employment of advisors
                         and the delegation of any ministerial
                         duties to qualified individuals.

                              b.   (1)  Claim.

                         A person who believes that he or she is
                         being denied a benefit to which he or she
                         is entitled under this Agreement
                         (hereinafter referred to as a "Claimant")
                         may file a written request for such
                         benefit with the Corporation, setting
                         forth his or her claim.  The request must
                         be addressed to the President of the
                         Corporation at its then principal place of
                         business.

                                   (2)  Claim Decision.

                         Upon receipt of a claim, the Corporation
                         shall advise the Claimant that a reply
                         will be forthcoming within 90 days and
                         shall, in fact, deliver such reply within
                         such 90-day period.  Upon written notice
                         prior to the expiration of the 90-day
                         reply period, the Corporation may,
                         however, extend the reply period for an
                         additional 90 days for reasonable cause. 
                         If the claim is denied in whole or in
                         part, the Corporation shall adopt a
                         written opinion, using language calculated
                         to be understood by the Claimant, setting
                         forth: (A) the specific reason or reasons
                         for such denial; (B) the specific
                         reference to pertinent provisions of this
                         Agreement on which such denial is based;
                         (C) a description of any additional
                         material or information necessary for the
                         Claimant to perfect his or her claim and
                         an explanation why such material or such
                         information is necessary; (D) appropriate
                         information as to the steps to be taken if
                         the Claimant wishes to submit the claim
                         for review; and (E) the time limits for
                         requesting a review under subsection (3)
                         and for review under subsection (4) of
                         this section 10(b).  If a notice of denial
                         is not received within the reply period,
                         the claim shall be deemed denied and the
                         Claimant shall be permitted to request
                         review, as set forth below.

                                   (3)  Request for Review.
                         With 60 days after the receipt by the
                         Claimant of the written opinion described
                         above (or, in the case of a deemed denial,
                         within 60 days after the end of the reply
                         period), the Claimant may request in
                         writing that the Secretary of the
                         Corporation (the "Secretary") review the
                         determination of the Corporation.  Such
                         request must be addressed to the
                         Secretary, at the Corporation's then
                         principal place of business.  The Claimant
                         or his or her duly authorized
                         representative may, but need not, review
                         the pertinent documents and submit issues
                         and comments in writing for consideration
                         by the Secretary.  If the Claimant does
                         not request a review by the Secretary of
                         the Corporation's determination within
                         such 60-day period, he shall be barred and
                         estopped from challenging the
                         Corporation's determination, except as may
                         be otherwise provided herein.

                                   (4)  Review of Decision.
                         Within 60 days after the Secretary's
                         receipt of a request for review, he or she
                         will review the Corporation's
                         determination.  After considering all
                         materials presented by the Claimant, the
                         Secretary will render a written opinion,
                         using language calculated to be understood
                         by the Claimant, setting forth the
                         specific reasons for the decision and
                         containing specific references to the
                         pertinent provisions of this Agreement on
                         which the decision is based.  If special
                         circumstances require that the 60-day time
                         period be extended, the Secretary will so
                         notify the Claimant and will render the
                         written opinion as soon as possible, but
                         no later than 120 days after receipt of
                         the request for review.  If the written
                         opinion on review is not rendered within
                         the 60-day period (or the 120-day period,
                         if an extension is granted), the claim
                         shall be deemed denied on review.

                                   (5)  Payment of Claim.

                         If and when a claim is determined to be
                         payable, the Corporation will promptly
                         issue a check to the Claimant.

                                   (6)  Other Remedies.

                         After exhaustion of the claims procedures
                         set forth in this Section 10(b), nothing
                         shall prevent any person from pursuing any
                         other legal or equitable remedy otherwise
                         available, including without limitation
                         legal action in federal court.

                    11.  AMENDMENT.  This Agreement may not be
                         amended, altered or modified, except by a
                         written instrument signed by the parties
                         hereto or their respective successors or
                         assigns, and may not be otherwise
                         terminated except as provided herein.

                    12.  BINDING EFFECT; NO THIRD-PARTY       
                         BENEFICIARY.  

                              This Agreement shall be binding upon
                         and inure to the benefit of the
                         Corporation and its successors and assigns
                         and the Trust and its respective
                         successors, assigns and beneficiaries. 
                         This Agreement shall not confer any rights
                         or remedies upon any person other than the
                         parties hereto and their respective
                         successors and assigns, except that the
                         Employee is a third-party beneficiary of
                         this Agreement to the extent necessary to
                         effectuate the intents and purposes of
                         this Agreement.

                    13.  NOTICE.  Any notice, consent or demand
                         required or permitted to be given under
                         the provisions of this Agreement shall be
                         in writing, and shall be signed by the
                         party giving or making the same.  Any such
                         notice, consent or demand mailed to a
                         party hereto shall be sent by United
                         States certified mail, postage prepaid, or
                         sent by a nationally recognized overnight
                         delivery service, charges prepaid, in each
                         case addressed to such party's last known
                         address as shown on the records of the
                         Corporation.  The date of such mailing
                         shall be deemed the date of notice,
                         consent or demand.

                    14.  GOVERNING LAW.  This Agreement, and the
                         rights of the parties hereunder, shall be
                         governed by and construed in accordance
                         with the laws of the Commonwealth
                         of Massachusetts.

                    IN WITNESS WHEREOF, the parties hereto have
          executed this Agreement, in duplicate, as of the day and
          year first above written.

                                        MARCUS FAMILY 1996 
                                        IRREVOCABLE INSURANCE TRUST
                                        DATED OCTOBER 28, 1996

                                        By /s/ David P. Gerstenblatt 
                                           --------------------------
                                          Name:  David P. Gerstenblatt
                                          Title:  Trustee


          ATTEST:                       AMERICAN BILTRITE INC.

          /s/ Henry W. Winkleman        By /s/ William M. Marcus     
          ----------------------          ---------------------------
          Secretary                       Name: William M. Marcus
                                          Title: Executive 
                                                    Vice President

                                    EXHIBIT A

                    The following life insurance policy is subject to
          the attached Split-Dollar Agreement:

          Insurer:  John Hancock Variable Life Insurance Company   

          Insureds:  Richard G. & Beth A. Marcus                   

          Policy Number:  20010583                                 

          Total Sum Insured at Issue:  $2,500,000                  

          Date of Issue:  October 10, 1996