<PAGE>

                                  SECOND AMENDMENT
                            TO RESTATED CREDIT AGREEMENT

     This Second Amendment to Restated Credit Agreement and Note dated as of
January 22, 1999 by and among IPG HOLDINGS LP, a Delaware limited partnership
        --
("Borrower"), INTERTAPE POLYMER GROUP INC., a Canadian corporation ("Guarantor")
and COMERICA BANK, a Michigan banking corporation ("Bank").

     WHEREAS, Borrower, Guarantor and Bank entered into a Restated Revolving
Credit Agreement dated as of May 8, 1998 (the "Original Agreement" and as
amended by the First Amendment (defined below) the "Agreement"), pursuant to
which Borrower incurred certain indebtedness and obligations to Bank and
issued to Bank a certain Eurodollar Revolving Note in the face amount of
Fifty Million Dollars ($50,000,000) made by Borrower to Bank as of May 8,
1998 ("Note");

     WHEREAS, Borrower, Guarantor, and Bank entered into a First Amendment to
Credit Agreement dated as of September 1, 1998 (the "First Amendment"),
pursuant to which (i) a subfacility in favor of American Tape Co. ("ATC") was
established under the Agreement, and (ii) amounts available under the
Revolving Facility were limited, inter alia, by amounts outstanding under the
ATC Note.

     WHEREAS, Borrower, Guarantor and Bank desire to amend certain provisions
of the Agreement on the terms and conditions hereof;

     NOW, THEREFORE, it is agreed:

A.   DEFINITIONS

     1.   Capitalized terms used herein and not defined to the contrary have the
meanings given them in the Agreement.

B.   AMENDMENT TO AGREEMENT

     1.   Section 7.1 of the Agreement is hereby amended by restating the
definition of "ATC Note" to read, in its entirety, as follows:

          "`ATC Note' shall mean the Eurodollar Revolving Note made
          by American Tape Co., Intertape Polymer Corp., and Anchor
          Continental, Inc., jointly and severally, to the order of
          Bank as of January 22, 1999 in the face amount of Ten
                             --
          Million Dollars ($10,000,000) and any extensions, renewals
          or replacements thereof or amendments thereto."

C.   REPRESENTATIONS

     Borrower hereby represents and warrants that:

<PAGE>

     1.   Execution, delivery and performance of this Amendment and any other
documents and instruments required under this Amendment or the Agreement are
within Borrower's powers, have been duly authorized, are not in contravention
of law or the terms of Borrower's Certificate of Limited Partnership or
Agreement of Limited Partnership, and do not require the consent or approval
of any governmental body, agency, or authority.

     2.   This Amendment, and the Agreement as amended by this Amendment, and
any other documents and instruments required under this Amendment or the
Agreement, when issued and delivered under this Amendment or the Agreement,
will be valid and binding in accordance with their terms.

     3.   The continuing representations and warranties of Borrower set forth
in Sections 10.01 through 10.4 and 10.6 through 10.20 of the Agreement are
true and correct on and as of the date hereof with the same force and effect
as made on and as of the date hereof.

     4.   The continuing representations and warranties of Company set forth
in Section 10.5 of the Agreement are true and correct as of the date hereof
with respect to the most recent financial statements furnished to Bank by
Company in accordance with Section 11.13 of the Agreement.

     5.   No Event of Default, or condition or event which, with the giving of
notice or the running of time, or both, would constitute an Event of Default
under the Agreement, has occurred and is continuing as of the date hereof.

D.   MISCELLANEOUS

     1.   This Amendment may be executed in counterparts and shall be deemed to
become effective upon such execution and delivery hereof and upon delivery to
Bank of each of the other documents listed on the checklist attached hereto as
Exhibit "A", all in form and content satisfactory to Bank.

     2.   Borrower acknowledges and agrees that, except as specifically amended
hereby or in connection herewith, all of the terms and conditions of the
Agreement and the other loan documents, remain in full force and effect in
accordance with their original terms.

     3.   Except as specifically set forth herein, nothing set forth in this
Amendment shall constitute, or be interpreted or construed to constitute, a
waiver of any right or remedy of Bank, or of any default or event of default
whether now existing or hereafter arising.

     4.   This Amendment, and the Agreement as amended hereby, shall be
interpreted, construed and governed by the laws of the State of Michigan.

                          [Signature page follows]

                                      -2-

<PAGE>

     WITNESS the due execution hereof as of the day and year first above
written.

COMERICA BANK                                 IPG HOLDINGS LP
                                              By:  Intertape Polymer Inc.
                                              Its: General Partner


By:   /s/ Pamela R. Horn Eidt                 By:       /s/ S. Vitale
   ---------------------------------------       ------------------------------

Its:  ASSISTANT VICE PRESIDENT                Its:    ASSISTANT SECRETARY
    --------------------------------------        -----------------------------


INTERTAPE POLYMER GROUP INC.

By:       /s/ Andrew M. Archibald
   ---------------------------------------

Its: CHIEF FINANCIAL OFFICER AND SECRETARY
    --------------------------------------


<PAGE>

                     EURODOLLAR REVOLVING NOTE
                     -------------------------

            TAX I.D. NO. 38-2461158 (AMERICAN TAPE CO.)
          TAX I.D. NO. 54-1411730 (INTERTAPE POLYMER CORP.)
         TAX I.D. NO. 57-1078514 (ANCHOR CONTINENTAL, INC.)


$10,000,000                                            Detroit, Michigan
                                                       January 22, 1999

     On or before the Maturity Date, FOR VALUE RECEIVED, the undersigned,
AMERICAN TAPE CO., a Delaware corporation  ("ATC"), INTERTAPE POLYMER CORP.,
a Virginia corporation ("IPC"), and ANCHOR CONTINENTAL, INC. a Delaware
corporation ("AC", called with ATC and IPC, "Borrowers" and each referred to
herein as a "Borrower"), jointly and severally promise to pay to the order of
COMERICA BANK, a Michigan banking corporation (herein called "Bank"), in
lawful currency of the United States of America at the main office of Bank,
TEN MILLION DOLLARS ($10,000,000), or so much of said sum as has been
advanced and is then outstanding under this Note, together with interest
thereon as hereinafter set forth.

     This Note is a note under which Advances, repayments and re-Advances may
be made from time to time, subject to the terms and conditions of this Note;
provided however, in no event shall Bank be obligated to make any Advances or
re-Advances hereunder (or refunds or conversions of existing Advances) in the
event that and so long as any Event of Default, or any condition or event
which, with the giving of notice or the running of time, or both, would
constitute an Event of Default, shall have occurred and be continuing
hereunder.

     Each of the Advances made hereunder shall bear interest at the
Eurodollar-based Rate or the Prime-based Rate, as elected by Borrower, or as
otherwise determined under this Note.

     Interest on the unpaid balance of each outstanding Prime-based Advance
shall be payable monthly, commencing on February 1, 1999, and on the first
Business Day of each succeeding month thereafter. Interest accruing at the
Prime-based Rate shall be computed on the basis of a year of 360 days, and
shall be assessed for the actual number of days elapsed, and in such
computation, effect shall be given to any change in the Prime-based Rate as a
result of any change in the Prime-based Rate on the date of each such change.

     Interest on each Eurodollar-based Advance shall be payable on the last
day of the Interest Period applicable thereto; provided, however, in the
event that the Interest Period applicable to any such Eurodollar-based
Advance is more than three (3) months, interest on such Eurodollar-based
Advance shall also be payable at intervals of three (3) months from the date
of such Advance. Interest accruing at the Eurodollar-based Rate shall be
computed on the basis of a 360 day year and shall be assessed for the actual
number of days elapsed from the first day of the Interest Period applicable
thereto but not including the last day thereof.

     From and after the occurrence of any Event of Default hereunder, or any
condition or event which, with the giving of notice or the running of time,
or both, would constitute an Event

                                     - 1 -
<PAGE>

unremedied or uncured thereafter, the indebtedness outstanding under this
Note shall bear interest at a per annum rate of three percent (3%) above the
otherwise Applicable Interest Rate, which interest shall be payable upon
demand.

     The amount and date of each Advance, its Applicable Interest Rate, its
Interest Period, if any, and the amount and date of any repayment shall be
noted on Bank's records, which records shall be conclusive evidence thereof,
absent manifest error; provided, however, any failure by Bank to make any
such notation, or any error in any such notation, shall not relieve Borrower
of its obligations to repay Bank the amount of any Advances, all accrued and
unpaid interest thereon, and all other amounts payable by Borrower to Bank
under or pursuant to this Note.

     Any Borrower may request Advances hereunder, including the refunding or
conversion of outstanding Advances of such Borrower, by the delivery to Bank
of a Request for Advance executed by its authorized representative, subject
to the following:

     (a)  no Event of Default, and no condition or event which, with the
          giving of notice or the running of time, or both, would constitute
          an Event of Default, shall have occurred and be continuing under
          this Note;

     (b)  each such Request for Advance shall set forth the information
          required on the Request for Advance form annexed hereto as
          Exhibit "A";

     (c)  each such Request for Advance shall be delivered to Bank by 11:00
          a.m. (Detroit, Michigan time) three (3) Business Days prior to the
          proposed date of Advance in the case of Eurodollar-based Advances,
          and by 11:00 a.m. (Detroit, Michigan time) on the proposed date of
          Advance in the case of Prime-based Advances;

     (d)  the principal amount of each Eurodollar-based Advance, plus the
          amount of any outstanding indebtedness to be then combined
          therewith having the same Applicable Interest Rate and Interest
          Period shall be at least Five Hundred Thousand Dollars ($500,000),
          and if greater, in integral multiples of One Hundred Thousand
          Dollars ($100,000);

     (e)  the proposed date of any refunding or conversion of any outstanding
          Eurodollar-based Advance shall only be on the last day of the
          Interest Period applicable thereto;

     (f)  a Request for Advance, once delivered to Bank, shall not be
          revocable by the Borrower making such request;

     (g)  the principal amount of the requested Advance, plus the sume of (i)
          the principal amount of the Revolving Credit, and (ii) the face
          amount of Letters of Credit outstanding under the Loan Agreement
          shall not exceed the Commitment Amount;

Notwithstanding anything herein or in any other agreement between any
Borrower and Bank, each Borrower hereby agrees that, in the event that any
document of a Borrower with Bank is at any time overdrawn, Bank may, in its
sole discretion and without any requirement that any

                                     - 2 -
<PAGE>

Borrower submit a Request for Advance and whether or not any Default or Event
of Default then exists hereunder, make a Prime-based Advance to such Borrower
in the amount necessary to restore such overdrawn account to a positive
balance and to deposit the proceeds of such Prime-based Advance in such
overdrawn account.

     If, as to any outstanding Eurodollar-based Advance, Bank shall not
receive a timely Request for Advance in accordance with the foregoing
requesting the refunding of such Advance as a Eurodollar-based Advance,
the principal amount of such Advance which is not then repaid shall be
automatically converted to a Prime-based Advance on the last day of the
Interest Period applicable thereto, subject in all respects to the terms and
conditions of this Note. The foregoing shall not in any way whatsoever limit
or otherwise affect any of Bank's rights or remedies under this Note upon the
occurrence of any Event of Default hereunder, or any condition or event
which, with the giving of notice or the running of time, or both, would
constitute an Event of Default.

     Any Borrower may prepay all or part of the outstanding balance of any
Prime-based Advance made to it under this Note at any time. Any Borrower may
prepay all or part of any Eurodollar-based Advance on the last day of the
Interest Period applicable thereto, provided that the amount of any such
partial prepayment shall be at least One Hundred Thousand Dollars ($100,000),
or, if greater, in integral multiples thereof, the aggregate balance of
Eurodollar-based Advances outstanding after such prepayment shall be at least
One Hundred Thousand Dollars ($100,000), and the unpaid portion of such
Eurodollar-based Advance which is refunded or converted shall be subject to
the limitations set forth in this Note. Any prepayment made in accordance
with this paragraph shall be without premium or penalty. Any other prepayment
shall be otherwise restricted by and subject to the terms of this Note.

     Subject to the definition of an "Interest Period" hereunder, in the
event that any payment under this Note becomes due and payable on any day
which is not a Business Day, the due date thereof shall be extended to the
next succeeding Business Day, and, to the extent applicable, interest shall
continue to accrue and be payable thereon during such extension at the rates
set forth in this Note.

     All payments to be made by Borrower to Bank under or pursuant to this
Note shall be in immediately available funds, without setoff or counterclaim,
and in the event that any payments submitted hereunder are in funds not
available until collected, said payments shall continue to bear interest
until collected. Borrower hereby authorizes Bank to charge any account of
Borrower with Bank for all sums due hereunder when due in accordance with the
terms hereof.

     If Borrower makes any payment of principal with respect to any
Eurodollar-based Advance on any day other than the last day of the Interest
Period applicable thereto (whether voluntarily, by acceleration, or
otherwise), or if Borrower fails to borrow any Eurodollar-based Advance after
notice has been given to Bank in accordance with the terms of this Note
requesting such Advance, or if Borrower fails to make any payment of
principal or interest in respect of a Eurodollar-based Advance when due,
Borrowers jointly and severally agree to reimburse Bank on demand for any
resulting loss, cost or expense incurred by Bank as a result thereof,
including, without limitation, any such loss, cost or expense incurred in
obtaining, liquidating, employing or redeploying deposits from third parties,
whether or not Bank shall have

                                     - 3 -
<PAGE>

funded or committed to fund such Advance. Such amount payable by Borrower to
Bank may include, without limitation, an amount equal to the excess, if any,
of (a) the amount of interest which would have accrued on the amount so
prepaid, or not so borrowed, refunded or converted, for the period from the
date of such prepayment or of such failure to borrow, refund or convert,
through the last day of the relevant Interest Period, at the applicable rate
of interest for said Advance(s) provided under this Note, over (b) the amount
of interest (as reasonably determined by Bank) which would have accrued to
Bank on such amount by placing such amount on deposit for a comparable period
with leading banks in the interbank eurodollar market. Calculation of any
amounts payable to Bank under this paragraph shall be made as though Bank
shall have actually funded or committed to fund the relevant Eurodollar-based
Advance through the purchase of an underlying deposit in an amount equal to
the amount of such Advance and having a maturity comparable to the relevant
Interest Period; provided, however, that Bank may fund any Eurodollar-based
Advance in any manner it deems fit and the foregoing assumptions shall be
utilized only for the purpose of the calculation of amounts payable under
this paragraph. Upon the written request of Borrowers, Bank shall deliver to
Borrowers a certificate setting forth the basis for determining such losses,
costs and expenses, which certificate shall be conclusively presumed correct,
absent manifest error.

     For any Interest Period for which the Applicable Interest Rate is the
Eurodollar-based Rate, if Bank shall designate a Eurodollar Lending Office
which maintains books separate from those of the rest of Bank, Bank shall
have the option of maintaining and carrying the relevant Eurodollar-based
Advance on the books of such Eurodollar Lending Office.

     If, with respect to any Interest Period, Bank determines that, (a) by
reason of circumstances affecting the foreign exchange and interbank markets
generally, deposits in Eurodollars in the applicable amounts or for the
relative maturities are not being offered to Bank for such Interest
Period, or (b) if the rate of interest referred to in the definition of
"Eurodollar-based Rate" upon the basis of which the rate of interest for a
Eurodollar-based Advance is to be determined does not accurately or fairly
cover or reflect the cost to Bank of making or maintaining a Eurodollar-based
Advance hereunder, then Bank shall forthwith give notice thereof to the
Borrower. Thereafter, until Bank notifies Borrowers that such circumstances no
longer exist, the right of Borrowers to request a Eurodollar-based Advance and
to convert an Advance to or refund an Advance as a Eurodollar-based Advance
shall be suspended.

     If, after the date hereof, the introduction of, or any change in, any
applicable law, rule or regulation or in the interpretation or administration
thereof by any governmental authority charged with the interpretation or
administration thereof, or compliance by Bank (or its Eurodollar Lending
Office) with any request or directive (whether or not having the force of
law) of any such authority, shall make it unlawful or impossible for the Bank
(or its Eurodollar Lending Office) to make or maintain any Advance with
interest at the Eurodollar-based Rate, Bank shall forthwith give notice
thereof to Borrowers. Thereafter, (a) the right of Borrowers to request a
Eurodollar-based Advance and to convert an Advance to or refund an Advance as
a Eurodollar-based Advance shall be suspended, and thereafter, Borrowers may
select only the Prime-based Rate as the Applicable Interest Rate hereunder,
and (b) if Bank may not lawfully continue to maintain an outstanding Advance
to the end of the then current Interest Period applicable thereto, the
Prime-based Rate shall be the Applicable Interest Rate for the remainder
of such Interest Period with respect to such outstanding Advance.

                                     - 4 -
<PAGE>

     If the adoption after the date hereof, or any change after the date
hereof in, any applicable law, rule or regulation of any governmental
authority, central bank or comparable agency charged with the interpretation
or administration thereof, or compliance by Bank (or its Eurodollar Lending
Office) with any request or directive (whether or not having the force of
law) made by any such authority, central bank or comparable agency after the
date hereof:

     (a)  shall subject Bank (or its Eurodollar Lending Office) to any tax,
          duty or other charge with respect to this Note or any Advance
          hereunder or shall change the basis of taxation of payments to Bank
          (or its Eurodollar Lending Office) of the principal of or interest
          on any Advance or any other amounts due under this Note in respect
          thereof (except for changes in the rate of tax on the overall net
          income of Bank or its Eurodollar Lending Office imposed by the
          jurisdiction in which Bank's principal executive office or
          Eurodollar Lending Office is located); or

     (b)  shall impose, modify or deem applicable any reserve (including,
          without limitation, any imposed by the Board of Governors of the
          Federal Reserve System), special deposit or similar requirement
          against assets of, deposits with or for the account of, or credit
          extended by Bank (or its Eurodollar Lending Office) or shall impose
          on Bank (or its Eurodollar Lending Office) or the foreign exchange
          and interbank markets any other condition affecting any Advance
          under this Note;

and the result of any of the foregoing is to increase the cost to Bank of
maintaining any part of the indebtedness hereunder or to reduce the amount of
any sum received or receivable by Bank under this Note by an amount deemed by
the Bank to be material, then Borrowers jointly and severally agree to pay to
Bank, within fifteen (15) days of receipt of written notice from Bank
demanding such compensation, such additional amount or amounts as will
compensate Bank for such increased cost or reduction. The Bank shall use
reasonable efforts to advise Borrowers of any event described in this
paragraph within a reasonable time. A certificate of Bank, prepared in good
faith and in reasonable detail by Bank and submitted by the Bank to the
Borrowers, setting forth the basis for determining such additional amount or
amounts necessary to compensate Bank shall be conclusive and binding for all
purposes, absent manifest error in computation.

     In the event that any applicable law, treaty, rule or regulation
(whether domestic or foreign) now or hereafter in effect and whether or not
presently applicable to the Bank, or any interpretation or administration
thereof by any governmental authority charged with the interpretation or
administration thereof, or compliance by the Bank with any guideline, request
or directive of any such authority (whether or not having the force of law),
including any risk-based capital guidelines, affects or would affect the
amount of capital required or expected to be maintained by the Bank (or any
corporation controlling the Bank), and the Bank determines that the amount of
such capital or any reserve requirements (including any marginal, special,
supplemental or emergency reserve requirements imposed with respect to any
category of extensions of credit or assets which include "Eurocurrency
Liabilities" as defined in Regulation D of the Federal Reserve System) to
which Bank or its Eurodollar Lending Office is increased by or based upon
the existence of any obligations of the Bank hereunder or the making or
maintaining any Advances hereunder and such increase has the effect of
reducing the rate of

                                     - 5 -
<PAGE>

return on the Bank's (or such controlling corporation's) capital as a
consequence of such obligations or the making or maintaining such Advances
hereunder to a level below that which the Bank (or such controlling
corporation) could have achieved but for such circumstances (taking into
consideration its policies with respect to capital adequacy) by an amount
deemed by the Bank to be material, then the Borrower shall pay to the Bank,
within fifteen (15) days of Borrower's receipt of written notice from Bank
demanding such compensation, additional amounts sufficient to compensate the
Bank (or such controlling corporation) for any increase in the amount of
capital and reduced rate of return which the Bank reasonably determines to be
allocable to the existence of any obligations of the Bank hereunder or to the
making or maintaining any Advances hereunder. A certificate of Bank as to the
amount of such compensation, prepared in good faith and in reasonable detail
by the Bank and submitted by the Bank to the Company, shall be conclusive and
binding for all purposes absent manifest error in computation.

     Upon the occurrence and during the continuance of any Event of Default,
Bank may at any time and from time to time, without notice to the Borrower
(any requirement for such notice being expressly waived by the Borrowers), set
off and apply against any and all of the indebtedness of Borrowers to Bank any
and all deposits (general or special, time or demand, provisional or final)
at any time held and other indebtedness at any time owing by Bank to or for
the credit or the account of the Borrower and any property of the Borrower
from time to time in possession of Bank, irrespective of whether or not Bank
shall have made any demand hereunder and although such obligations may be
contingent and unmatured. The rights of Bank under this paragraph are in
addition to other rights and remedies (including, without limitation, other
rights of setoff) which Bank may otherwise have.

     Upon the occurrence of any Event of Default, Bank may declare this Note
due forthwith and collect, deal with and dispose of all or any part of any
security in any manner permitted or authorized by the Indiana Uniform
Commercial Code or other applicable law (including public or private sale)
and after deducting expenses (including reasonable attorneys' fees and
expenses), Bank may apply the proceeds and any deposits or credits in part or
full payment of any of said liabilities, whether due or not, in any manner or
order Bank elects.

     For the purposes of this Note, the following terms have the following
meanings:

     "Advance" means a borrowing requested by Borrower and made by Bank under
this Note, including any refunding or conversions of such borrowing, and
shall include a Eurodollar-based Advance and a Prime-based Advance.

     "Applicable Interest Rate" means the Eurodollar-based Rate or the
Prime-based Rate, as selected by Borrower from time to time subject to the
terms and conditions of this Note.

     "Business Day" means any day, other than a Saturday, Sunday or holiday,
on which Bank is open for all or substantially all of its domestic and
international business (including dealings in foreign exchange) in Detroit,
Michigan.

     "Eurodollar-based Advance" means an Advance which bears interest at the
Eurodollar-based Rate.

                                     - 6 -
<PAGE>

     "Eurodollar-based Rate" means a per annum interest rate which is equal
to the sum of one percent (1%), plus the per annum interest rate at which
Bank's Eurodollar Lending Office offers deposits to prime banks in the
eurodollar market in an amount comparable to the relevant Eurodollar-based
Advance and for a period equal to the relevant Interest Period at or about
11:00 a.m. (Detroit, Michigan time) (or as soon thereafter as practical)
two (2) Business Days prior to the first day of such Interest Period.

     "Eurodollar Lending Office" means Bank's office located in the Grand
Cayman Islands, British West Indies, or such other branch of Bank, domestic
or foreign, as it may hereafter designate as its Eurodollar Lending Office by
notice to Borrowers.

     "Event of Default" means the occurrence of any one of the following:

     (a)  Borrowers shall fail to pay the principal or interest under any
          Advance or shall fail to pay any other amount owing by Borrower
          to Bank, whether under this Note or otherwise, when due in
          accordance with the terms hereof or thereof;

     (b)  any representation, warranty, certification or statement made or
          deemed to have been made by Borrower herein or in any certificate,
          financial statement or other document or agreement delivered to
          Bank pursuant hereto shall prove to be untrue in any material
          respect;

     (c)  any Borrower, IPG or Company shall fail to observe or perform any
          condition, covenant or agreement of Borrowers, IPG or Company set
          forth in the Loan Agreement or any other loan or security agreement
          or other agreement with Bank, other than as provided in
          subparagraph (a) above, and Borrowers, IPG or Company shall fail to
          cure such failure within any grace or cure period provided with
          respect thereto;

     (d)  any Borrower, IPG or Company shall make any assignment for the
          benefit of creditors, or there shall be commenced any bankruptcy,
          receivership, insolvency, reorganization, dissolution or
          liquidation proceedings by or against any Borrower, IPG or Company,
          or the entry of any judgment, levy, attachment, garnishment or
          other process, or the filing of any lien against any Borrower, IPG
          or Company, which proceeding, if involuntary, judgment, levy,
          attachment, garnishment or other process shall not be discharged,
          dismissed, vacated or otherwise stayed by the relevant Borrower,
          IPG or Company within forty-five (45) days after the commencement
          or filing thereof, as applicable;

     (e)  any Borrower, IPG or Company shall have defaulted in the payment
          when due and payable (whether at maturity, by reason of
          acceleration or otherwise), after the expiration of any applicable
          cure period, of the principal of or interest on any indebtedness
          for borrowed money, or the maturity of any such indebtedness shall
          have been accelerated in accordance with the provisions of any
          indenture, contract, agreement or instrument providing for the
          creation of or concerning or otherwise governing or evidencing such
          indebtedness, or any event or condition shall have occurred and be
          continuing which, with the giving of notice or the

                                     - 7 -
<PAGE>

          passage of time, or both, would permit any holder or holders
          of such indebtedness, any trustee or agent acting on behalf
          of such holder or holders, or any other person, to accelerate
          the maturity of such indebtedness;

     (f)  occurrence of any "Event of Default" under the Loan Agreement.

     "Interest Period" means a period of 1, 2, 3 or 6 months; as selected
by a Borrower pursuant to the terms of this Note, commencing on the day a
Eurodollar-based Advance is made, provided that:

     (a)  any Interest Period which would otherwise end on a day which is not
          a Business Day shall be extended to the next succeeding Business
          Day, except that if the next succeeding Business Day falls in
          another calendar month, the Interest Period shall end on the next
          preceding Business Day, and when an Interest Period begins on a day
          which has no numerically corresponding day in the calendar month
          during which such Interest Period is to end, it shall end on the
          last Business Day of such calendar month, and

     (b)  no Interest Period shall extend beyond the maturity date of
          this Note.

     "IPG" shall mean IPG Holdings LP, a Delaware limited partnership.

     "Loan Agreement" shall mean that certain Restated Revolving Credit
Agreement dated May 8, 1998 among IPG, Company and Bank as amended.

     "Maturity Date" has the meaning given it in the Loan Agreement.

     "Prime-based Advance" shall mean an Advance which bears interest at the
Prime-based Rate.

     "Prime Rate" means the per annum interest rate established by Bank at
its prime rate for its borrowers, as such rate may vary from time to time,
which rate is not necessarily the lowest rate on loans made by Bank at any
such time.

     "Prime-based Rate" shall mean a per annum interest rate which is equal
to the greater of (i) the Prime Rate; or (ii) the rate of interest equal to
the sum of (a) one percent (1%) and (b) the rate of interest equal to the
average of the rates on overnight Federal funds transactions with members of
the Federal Reserve System arranged by Federal funds brokers (the "Overnight
Rates"), as published by the Federal Reserve Bank of New York, or, if the
overnight Rates are not so published for any day, the average of the
quotations for the Overnight Rates received by Bank from three (3) Federal
funds brokers of recognized standing selected by Bank, as the same may be
changed from time to time. Effect shall be given to any change in the
Prime-based Rate as a result of any change in the Prime Rate or Overnight
Rates on the date of any such change in the Prime Rate or Overnight Rates,
as applicable.

     "Request for Advance" means a Request for Advance issued by any Borrower
under this Note in the form annexed to this Note as Exhibit "A".

                                     - 8 -
<PAGE>

     Capitalized terms used herein and not defined to the contrary have
meanings given them in the Loan Agreement.

     Borrowers agree to make all payments to Bank of any and all amounts due
and owing to Bank hereunder, including, without limitation, the payment of
principal and interest on any Advance, on the date provided for such payment,
in United States Dollars in immediately available funds at any the office of
Bank located in the State of Michigan, or such other address as Bank may
notify Borrowers in writing.

     No delay or failure of Bank in exercising any right, power or privilege
hereunder shall affect such right, power or privilege, nor shall any single
or partial exercise thereof preclude any further exercise thereof, or the
exercise of any other power, right or privilege. The rights of Bank under
this Agreement are cumulative and not exclusive of any right or remedies
which Bank would otherwise have, whether by other instruments or by law.

     This Note had been deemed to have been delivered in Detroit, Michigan,
and shall be governed by and construed and enforced in accordance with the
laws of the State of Michigan. Whenever possible each provision of this Note
shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Note shall be prohibited by or
invalid under applicable law, such provision shall be ineffective to the
extent of such prohibition or invalidity, without invalidating the remainder
of such provision or the remaining provisions of this Note.

     BORROWER AND THE BANK ACKNOWLEDGE THAT THE RIGHT TO TRIAL BY JURY IS A
CONSTITUTIONAL ONE, BUT THAT IT MAY BE WAIVED. EACH PARTY, AFTER CONSULTING
(OR HAVING HAD THE OPPORTUNITY TO CONSULT) WITH COUNSEL OF THEIR CHOICE,
KNOWINGLY AND VOLUNTARILY, AND FOR THEIR MUTUAL BENEFIT, WAIVES ANY RIGHT
TO TRIAL BY JURY IN THE EVENT OF LITIGATION REGARDING THE PERFORMANCE OR
ENFORCEMENT OF, OR IN ANY WAY RELATED TO, THIS NOTE OR THE INDEBTEDNESS
HEREUNDER.

     THE BORROWERS ACKNOWLEDGE THAT ANY APPROVAL OR EXTENSION OF CREDIT
PURSUANT TO THIS NOTE IS EXTENDED BY THE BANK FROM ITS PRINCIPAL OFFICE IN
DETROIT, MICHIGAN.

                           [Signature page follows]

                                     - 9 -
<PAGE>

                                       AMERICAN TAPE CO.


                                       By:  /s/ Cliff Adamson
                                            -----------------------------------


                                       Its: Controller
                                            -----------------------------------


                                       INTERTAPE POLYMER CORP.


                                       By:  /s/ S. Vitale
                                            -----------------------------------


                                       Its: V.P. Finance
                                            -----------------------------------


                                       ANCHOR CONTINENTAL, INC.


                                       By:  /s/ S. Vitale
                                            -----------------------------------


                                       Its: V.P. Finance
                                            -----------------------------------

                                     - 10 -
<PAGE>

                             EXHIBIT "A"

                         REQUEST FOR ADVANCE
                         -------------------

     The undersigned hereby requests COMERICA BANK ("Bank") to make a(an)
___________________________* Advance to the undersigned on ___________________,
____, in the amount of ________________________________ Dollars ($______) under
the Promissory Note dated as of January ___, 1999, issued by the undersigned to
said Bank in the face amount of Ten Million Dollars ($10,000,000) (herein
called "Note"). The Interest Period for the requested Advance, if applicable,
shall be __________________________**. The last day of the Interest Period for
the amount being converted or refunded hereunder, if applicable, is
_________________________, 19___.

     The undersigned certifies that no Event of Default, or any condition or
event which, with the giving of notice or the running of time, or both, would
constitute an Event of Default, has occurred and is continuing under the
Note, and none will exist upon the making of the Advance requested hereunder.
The undersigned further certifies that upon advancing the sum requested
hereunder, the aggregate principal amount outstanding under the Note will not
exceed the face amount thereof. If the amount advanced to the undersigned
under the Note shall at any time exceed the face amount thereof, the
undersigned will pay such excess amount on demand.

     The undersigned hereby authorizes said Bank to disburse the proceeds of
this Request for Advance by crediting the account of the undersigned with
Bank separately designated by the undersigned or as the undersigned may
otherwise direct, unless this Request for Advance is being submitted for a
conversion or refunding, in which case it shall refund or convert that
portion stated above of the existing outstandings under the Note.

     Dated this ______ day of ____________________________, ________.


                                        *** __________________________________

                                        By: ___________________________________

                                        Its: __________________________________

---------------------

*   Insert Eurodollar-based or Prime-based Advance.

**  Insert one 1, 2, 3 or 6 months.

*** Insert "American Tape Co.", "Intertape Polymer Corp.", or "Anchor
Continental, Inc."

                                      -11-