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                            AMENDMENT AGREEMENT NO. 1
                             TO THE CREDIT AGREEMENT


         THIS AMENDMENT AGREEMENT NO. 1 (the "Amendment Agreement"), dated as of
January 31, 1997 TO THE CREDIT AGREEMENT dated as of October 11, 1996 (the
"Credit Agreement"), made by and among WINDMERE CORPORATION, a Florida
corporation having its principal place of business in Miami Lakes, Florida (the
"Borrower"), NATIONSBANK, NATIONAL ASSOCIATION (SOUTH), a national banking
association organized and existing under the laws of the United States, in its
capacity as a Lender ("NationsBank"), NATIONAL BANK OF CANADA (hereinafter such
financial institutions may be referred to individually as a "Lender" or
collectively as the "Lenders"), and NATIONSBANK, NATIONAL ASSOCIATION (SOUTH), a
national banking association organized and existing under the laws of the United
States, in its capacity as agent for the Lenders (in such capacity, the
"Agent");

                              W I T N E S S E T H:
                              - - - - - - - - - -

         WHEREAS, the Borrower, the Agent and the Lenders have entered into the
Credit Agreement;

         WHEREAS, the Borrower has requested that the Agent and the Lenders
amend the Credit Agreement; and

         WHEREAS, upon the terms and conditions contained herein, the Agent and
the Lenders are willing to amend the Credit Agreement;

         NOW, THEREFORE, in consideration of the premises and conditions herein
set forth, it is hereby agreed as follows:

         1. CREDIT AGREEMENT AMENDMENT. Subject to the conditions hereof, the
Credit Agreement is hereby amended, effective as of the date hereof, as follows:

                  (a) SECTION 1.1 thereof is hereby amended by amending and
         restating the following definition in its entirety as follows:

                           "'Total Revolving Credit Commitment' means a
                  principal amount equal to $30,000,000, such amount as reduced
                  from time to time in accordance with Section 2.7."

                  (b) EXHIBIT A To the Credit Agreement is hereby amended by
         amending and restating such Exhibit in its entirety as set forth in
         EXHIBIT A hereto.




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         2. REPRESENTATIONS AND WARRANTIES. In order to induce the Agent and the
Lenders to enter into this Amendment Agreement, the Borrower hereby represents
and warrants that the Credit Agreement has been re-examined by the Borrower and
that except as disclosed by the Borrower in writing to the Lenders as of the
date hereof:

                  (a) The representations and warranties made by the Borrower in
         Article VII thereof are true on and as of the date hereof;

                  (b) There has been no material adverse change in the
         condition, financial or otherwise, of the Borrower and its Subsidiaries
         since the date of the most recent financial reports of the Borrower
         delivered to the Agent under Section 8.1 thereof, other than changes in
         the ordinary course of business;

                  (c) The business and properties of the Borrower and its
         Subsidiaries are not, and since the date of the most recent financial
         reports of the Borrower delivered to the Agent under Section 8.1
         thereof, have not been, adversely affected in any substantial way as
         the result of any fire, explosion, earthquake, accident, strike,
         lockout, combination of workers, flood, embargo, riot, activities of
         armed forces, war or acts of God or the public enemy, or cancellation
         or loss of any major contracts; and

                  (d) After giving effect to this Amendment Agreement, no
         condition exists which, upon the effectiveness of the amendment
         contemplated hereby, would constitute a Default or an Event of Default
         on the part of the Borrower under the Credit Agreement or the Notes,
         either immediately or with the lapse of time or the giving of notice,
         or both.

         3. CONDITIONS PRECEDENT. The effectiveness of this Amendment Agreement
is subject to the receipt by the Agent of the following:

                           (i) six counterparts of this Amendment Agreement duly
                  executed by all signatories hereto;

                           (iii) resolutions of the Board of Directors or other
                  governing body of the Borrower approving this Amendment
                  Agreement certified by the Secretary of the Borrower; and

                           (iii) copies of all additional agreements,
                  instruments and documents which the Agent may reasonably
                  request, such documents, when appropriate, to be certified by
                  appropriate governmental authorities.

All proceedings of the Borrower relating to the matters provided


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for herein shall be satisfactory to the Lenders, the Agent and their counsel.

         4. ENTIRE AGREEMENT. This Amendment Agreement sets forth the entire
understanding and agreement of the parties hereto in relation to the subject
matter hereof and supersedes any prior negotiations and agreements among the
parties relative to such subject matter. No promise, condition, representation
or warranty, express or implied, not herein set forth shall bind any party
hereto, and no one of them has relied on any such promise, condition,
representation or warranty. Each of the parties hereto acknowledges that, except
as in this Amendment Agreement otherwise expressly stated, no representations,
warranties or commitments, express or implied, have been made by any party to
the other. None of the terms or conditions of this Amendment Agreement may be
changed, modified, waived or canceled orally or otherwise, except by writing,
signed by all the parties hereto, specifying such change, modification, waiver
or cancellation of such terms or conditions, or of any proceeding or succeeding
breach thereof.

         5. CONSENT OF GUARANTORS. The Guarantors have joined in the execution
of this Amendment Agreement for the purposes of consenting hereto and for the
further purpose of confirming their guaranty of Obligations of Borrower as
provided in the Guaranty.

         6. FULL FORCE AND EFFECT OF AGREEMENT. Except as hereby specifically
amended, modified or supplemented, the Credit Agreement and all other Loan
Documents are hereby confirmed and ratified in all respects and shall remain in
full force and effect according to their respective terms.

         7. COUNTERPARTS. This Amendment Agreement may be executed in any number
of counterparts, each of which shall be deemed an original as against any party
whose signature appears thereon, and all of which shall together constitute one
and the same instrument.

         8. GOVERNING LAW.   THIS AMENDMENT AGREEMENT SHALL IN ALL RESPECTS BE
GOVERNED BY THE LAW OF THE STATE OF FLORIDA, WITHOUT REGARD TO ANY OTHERWISE
APPLICABLE PRINCIPLES OF CONFLICT OF LAWS. THE BORROWER HEREBY (I) SUBMITS TO
THE JURISDICTION AND VENUE OF THE STATE AND FEDERAL COURTS OF FLORIDA FOR THE
PURPOSES OF RESOLVING DISPUTES HEREUNDER OR UNDER ANY OF THE OTHER LOAN
DOCUMENTS TO WHICH IT IS A PARTY OR FOR PURPOSES OF COLLECTION AND (II) WAIVES
TRIAL BY JURY IN CONNECTION WITH ANY SUCH LITIGATION.

         9. ENFORCEABILITY. Should any one or more of the provisions of this
Amendment Agreement be determined to be





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illegal or unenforceable as to one or more of the parties hereto, all other
provisions nevertheless shall remain effective and binding on the parties
hereto.

         10. CREDIT AGREEMENT. All references in any of the Loan Documents to
the Credit Agreement shall mean and include the Credit Agreement as amended
hereby.

         11. SUCCESSORS AND ASSIGNS. This Amendment Agreement shall be binding
upon and inure to the benefit of each of the Borrower, the Lenders, the Agent
and their respective successors, assigns and legal representatives; provided,
however, that the Borrower, without the prior consent of the Lenders, may not
assign any rights, powers, duties or obligations hereunder.


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         IN WITNESS WHEREOF, the parties hereto have caused this Amendment
Agreement to be duly executed by their duly authorized officers, all as of the
day and year first above written.


                                  WINDMERE CORPORATION

                                  By:
                                         -------------------------------------
                                  Name:
                                         -------------------------------------
                                  Title:
                                         -------------------------------------



                                  GUARANTORS:

                                  WINDMERE-DURABLE HOLDINGS, INC.

                                  By:
                                         -------------------------------------
                                  Name:
                                         -------------------------------------
                                  Title:
                                         -------------------------------------


                                  WINDMERE HOLDINGS CORPORATION

                                  By:
                                         -------------------------------------
                                  Name:
                                         -------------------------------------
                                  Title:
                                         -------------------------------------


                                  WINDMERE HOLDINGS CORPORATION II

                                  By:
                                         -------------------------------------
                                  Name:
                                         -------------------------------------
                                  Title:
                                         -------------------------------------


                                  WINDMERE FAN PRODUCTS, INC.

                                  By:
                                         -------------------------------------
                                  Name:
                                         -------------------------------------
                                  Title:
                                         -------------------------------------


                                  LITTER MAID, INC.

                                  By:
                                         -------------------------------------
                                  Name:
                                         -------------------------------------
                                  Title:
                                         -------------------------------------




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                                  BAY BOOKS & TAPES, INC.

                                  By:
                                         -------------------------------------
                                  Name:
                                         -------------------------------------
                                  Title:
                                         -------------------------------------


                                  JERDON PRODUCTS, INC.

                                  By:
                                         -------------------------------------
                                  Name:
                                         -------------------------------------
                                  Title:
                                         -------------------------------------


                                  CONSUMER PRODUCTS AMERICAS, INC.

                                  By:
                                         -------------------------------------
                                  Name:
                                         -------------------------------------
                                  Title:
                                         -------------------------------------


                                  FORTUNE PRODUCTS, INC.

                                  By:
                                         -------------------------------------
                                  Name:
                                         -------------------------------------
                                  Title:
                                         -------------------------------------


                                  EDI MASTERS, INC.

                                  By:
                                         -------------------------------------
                                  Name:
                                         -------------------------------------
                                  Title:
                                         -------------------------------------


                                  NATIONSBANK, NATIONAL ASSOCIATION
                                   (SOUTH), as Agent and Lender

                                  By:
                                         -------------------------------------
                                  Name:
                                         -------------------------------------
                                  Title:
                                         -------------------------------------


                                  NATIONAL BANK OF CANADA, as Lender

                                  By:
                                         -------------------------------------
                                  Name:
                                         -------------------------------------
                                  Title:
                                         -------------------------------------



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                                    EXHIBIT A

                        APPLICABLE COMMITMENT PERCENTAGES


                                    Revolving                Applicable
                                     Credit                  Commitment
Lender                              Commitment               Percentage
------                            ------------              ------------
NationsBank, National
Association (South)               $17,000,000               56.666666667%


National Bank of
Canada                             13,000,000               43.333333333%
                                  -----------               ------------

                                  $30,000,000                        100%