----

----

----

| U.S. BORROWERS                                   |                  | CANADIAN BORROWER               |
|--------------------------------------------------|-----------------------|---------------------------------|
|                                             |                  |                            |   |   |
| AMERICAN BILTRITE INC.                           |                  | AMERICAN BILTRITE (CANADA) LTD. |
|                                             |                  |                            |   |   |
| By:                                              | /s/ Richard G. Marcus |                            | By: | /s/ Richard G. Marcus |
|                                             |                  |                            |   |   |
| Title:                                           | President             |                            | 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]    [Signature Page Amendment No.1 ABI] |
|------------------------------------------------------------------------------------------------|

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

----

| [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/ Mark J. Breier |
|                                          |   |
| Title:                                        | Managing Director |
|                                          |   |
| ISSUING BANK:                                 |
|                                          |   |
| WACHOVIA BANK, NATIONAL ASSOCIATION           |
|                                          |   |
| By:                                           | /s/ Mark J. Breier |
|                                          |   |
| Title:                                        | Managing Director |
|                                          |   |
|                                          |   |
| LENDERS:                                      |
|                                          |   |
| WACHOVIA BANK, NATIONAL ASSOCIATION           |
|                                          |   |
| By:                                           | /s/ Mark J. Breier |
|                                          |   |
| Title:                                        | Managing Director |
|                                          |   |
|                                          |   |
| WACHOVIA CAPITAL FINANCE CORPORATION (CANADA) |
|                                          |   |
| By:                                           | /s/ Laurence S. Forte |
|                                          |   |
| Title:                                        | Managing Director |
|                                          |   |