<SUBMISSION>
<ACCESSION-NUMBER>0000912057-01-536899
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>5
<PERIOD>20011029
<ITEMS>5
<ITEMS>7
<FILING-DATE>20011029
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>DAL TILE INTERNATIONAL INC
<CIK>0000906611
<ASSIGNED-SIC>3250
<IRS-NUMBER>133548809
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>0101
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>033-64140
<FILM-NUMBER>1769155
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>7834 HAWN FREEWAY
<STREET2>STE 1704
<CITY>DALLAS
<STATE>TX
<ZIP>75217
<PHONE>2143981411
</BUSINESS-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>a2062020z8-k.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML>
<HEAD>
<TITLE> Prepared by MERRILL CORPORATION
</TITLE>
</HEAD>
<BODY BGCOLOR="#FFFFFF" LINK=BLUE  VLINK=PURPLE>
<BR>
<FONT SIZE=3 ><A HREF="#01DFW2063_1">QuickLinks</A></FONT>
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<P ALIGN="CENTER"><FONT SIZE=5><B>SECURITIES AND EXCHANGE COMMISSION<BR>  </B></FONT><FONT SIZE=2><B>Washington, D.C. 20549  </B></FONT></P>

<HR NOSHADE ALIGN="CENTER" WIDTH="120">
<P ALIGN="CENTER"><FONT SIZE=5><B>FORM 8-K<BR>  </B></FONT><FONT SIZE=2><B>CURRENT REPORT  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>PURSUANT TO SECTION 13 OR 15(d) OF THE<BR>
SECURITIES EXCHANGE ACT OF 1934 </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B><U>OCTOBER 29, 2001</U><BR>  </B></FONT><FONT SIZE=2>Date of Report (Date of earliest event reported) </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=5><B><U>DAL-TILE INTERNATIONAL INC.</U><BR>  </B></FONT><FONT SIZE=2>(Exact name of registrant as specified in its charter) </FONT></P>

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<TD WIDTH="32%" ALIGN="CENTER"><FONT SIZE=2><B><U>Delaware</U></B></FONT><FONT SIZE=2><BR>
(State or other jurisdiction of<BR>
incorporation or organization)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="32%" ALIGN="CENTER"><FONT SIZE=2><B><U>33-64140</U></B></FONT><FONT SIZE=2><BR>
(Commission File Number)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="32%" ALIGN="CENTER"><FONT SIZE=2><B><U>13-3548809</U></B></FONT><FONT SIZE=2><BR>
(I.R.S. Employer<BR>
identification no.)<BR></FONT>
</TD>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=2><B><U>7834 Hawn Freeway, Dallas, Texas 75217</U><BR>  </B></FONT><FONT SIZE=2>(Address of Registrant's Principal Executive Office) (Zip Code) </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B><U>(214) 398-1411</U><BR>  </B></FONT><FONT SIZE=2>(Registrant's telephone number, including area code) </FONT></P>

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<TD WIDTH="9%"><FONT SIZE=2><B>Item&nbsp;5.</B></FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2><B><U>Other Events</U></B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="9%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2><BR>
On October&nbsp;26, 2001, Dal-Tile International, Inc., a Delaware Corporation, completed a $400&nbsp;million refinancing of its credit facilities. The transaction includes a $325&nbsp;million five-year extension of the Company's credit facility,
comprised of a $125&nbsp;million Term Loan A and $200&nbsp;million revolving credit, and a $75&nbsp;million accounts receivable securitization.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="9%"><BR><FONT SIZE=2><B>Item 7.</B></FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><B><BR>&nbsp;</B></FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2><B><BR>
<U>Financial Statements, Pro Forma Financial Information and Exhibits</U></B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="9%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2><BR>
Financial Statements.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="9%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2><BR>
None.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="9%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2><BR>
Pro Forma Financial Information.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="9%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2><BR>
None.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="9%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2><BR>
Exhibits.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2><BR>
10.1</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2><BR>
Receivables Purchase Agreement, dated as of October&nbsp;26, 2001, among DTSC,&nbsp;Inc. </FONT><FONT SIZE=2><I>as the Seller</I></FONT><FONT SIZE=2> and ATLANTIC ASSET SECURITIZATION CORP. </FONT><FONT SIZE=2><I>as the investor</I></FONT><FONT
SIZE=2> and CREDIT LYONNAIS NEW YORK BRANCH </FONT><FONT SIZE=2><I>as a bank</I></FONT><FONT SIZE=2> and CREDIT LYONNAIS NEW YORK BRANCH </FONT><FONT SIZE=2><I>as the Agent</I></FONT><FONT SIZE=2> and DAL-TILE CORPORATION </FONT><FONT SIZE=2><I>as
Collection Agent and Originator</I></FONT><FONT SIZE=2>.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2><BR>
10.2</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2><BR>
Purchase and Contribution Agreement, dated as of October&nbsp;26, 2001, between DAL-TILE CORPORATION </FONT><FONT SIZE=2><I>as Seller</I></FONT><FONT SIZE=2> and DTSC,&nbsp;INC. </FONT><FONT SIZE=2><I>as purchaser</I></FONT><FONT SIZE=2>.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2><BR>
10.3</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2><BR>
Parent Undertaking Agreement, dated as of October&nbsp;26, 2001, made by Dal-Tile International&nbsp;Inc., and Dal-Tile Group&nbsp;Inc., in favor of DTSC,&nbsp;Inc., the Investors and the Banks and Credit Lyonnais New York Branch, as agent for the
Investors and the Banks, and their respective successors and assigns.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2><BR>
10.4</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2><BR>
Amended and Restated Credit Agreement dated as of October&nbsp;26, 2001.</FONT></TD>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=2><B>Page 2  </B></FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="jc2063_signatures"> </A>
<A NAME="toc_jc2063_1"> </A>
<BR></FONT><FONT SIZE=2><B>SIGNATURES    <BR>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned
hereunto duly authorized. </FONT></P>

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<TD WIDTH="47%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2>DAL-TILE INTERNATIONAL INC.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
Date:<BR>
<U>October 29, 2001</U></FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="46%" ALIGN="CENTER"><FONT SIZE=2><BR>
/s/&nbsp;</FONT><FONT SIZE=2>W. CHRISTOPHER WELLBORN</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> W. Christopher Wellborn<BR></FONT> <FONT SIZE=2><I>Executive Vice President and Chief Financial Officer</I></FONT></TD>
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<P ALIGN="CENTER"><FONT SIZE=2><B>Page 3  </B></FONT></P>

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<FONT SIZE=2><A HREF="#toc_jc2063_1">SIGNATURES</A></FONT><BR>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>3
<FILENAME>a2062020zex-10_1.htm
<DESCRIPTION>EXHIBIT 10.1
<TEXT>
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<P ALIGN="CENTER"><FONT SIZE=2><B>RECEIVABLES PURCHASE AGREEMENT  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B> Dated as of October&nbsp;26, 2001  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B> Among  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B> DTSC,&nbsp;INC.  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B><I>as the Seller</I></B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B> and  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B> ATLANTIC ASSET SECURITIZATION CORP.  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B><I>as the Investor</I></B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B> and  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B> CREDIT LYONNAIS NEW YORK BRANCH  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B><I>as a Bank</I></B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B> and  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B> CREDIT LYONNAIS NEW YORK BRANCH  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B><I>as the Agent</I></B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B> and  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B> DAL-TILE CORPORATION  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B><I>as Collection Agent and Originator</I></B></FONT></P>

<HR NOSHADE>
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<A NAME="page_kb2063_1_2"> </A>
<P ALIGN="CENTER"><FONT SIZE=2><B> <A NAME="kb2063_table_of_contents"> </A>
<BR>    TABLE OF CONTENTS    <BR>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp; </FONT> <FONT SIZE=2>
<A NAME="KB2063_TOC"></A> </FONT></P>

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<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="17%" ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TH>
<TH WIDTH="20%" ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TH>
<TH WIDTH="60%" ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=5><FONT SIZE=2>PRELIMINARY STATEMENT</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2><BR>
ARTICLE I 4</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><A HREF="#kc2063_article_i_definitions"><FONT SIZE=2><BR>
DEFINITIONS</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%"><A HREF="#kc2063_section_1.01._certain_defined_terms."><FONT SIZE=2>SECTION 1.01.</FONT></A></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>Certain Defined Terms</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%"><A HREF="#kd2063_section_1.02._other_terms."><FONT SIZE=2>SECTION 1.02.</FONT></A></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>Other Terms</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2><BR>
ARTICLE II</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><A HREF="#kd2063_article_ii_amounts_and_terms_of_the_purchases"><FONT SIZE=2><BR>
AMOUNTS AND TERMS OF THE PURCHASES</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%"><A HREF="#kd2063_section_2.01._purchase_facility."><FONT SIZE=2>SECTION 2.01.</FONT></A></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>Purchase Facility</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%"><A HREF="#kd2063_section_2.02._making_purchases."><FONT SIZE=2>SECTION 2.02.</FONT></A></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>Making Purchases</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%"><A HREF="#kd2063_section_2.03._receivable_interest_computation."><FONT SIZE=2>SECTION 2.03.</FONT></A></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>Receivable Interest Computation</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%"><A HREF="#kd2063_section_2.04._settlement_procedures."><FONT SIZE=2>SECTION 2.04.</FONT></A></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>Settlement Procedures</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%"><A HREF="#kd2063_section_2.05._fees."><FONT SIZE=2>SECTION 2.05.</FONT></A></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>Fees</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%"><A HREF="#kd2063_section_2.06._payments_and_computations,_etc."><FONT SIZE=2>SECTION 2.06.</FONT></A></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>Payments and Computations, Etc.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%"><A HREF="#kd2063_section_2.07._dividing___kd202019"><FONT SIZE=2>SECTION 2.07.</FONT></A></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>Dividing or Combining Receivable Interests</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%"><A HREF="#kd2063_section_2.08._increased_costs."><FONT SIZE=2>SECTION 2.08.</FONT></A></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>Increased Costs</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%"><A HREF="#kd2063_section_2.09._additional_yield__sec02909"><FONT SIZE=2>SECTION 2.09.</FONT></A></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>Additional Yield on Receivable Interests Bearing a Eurodollar Rate</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%"><A HREF="#kd2063_section_2.10._taxes."><FONT SIZE=2>SECTION 2.10.</FONT></A></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>Taxes</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%"><A HREF="#kd2063_section_2.11._security_interest."><FONT SIZE=2>SECTION 2.11.</FONT></A></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>Security Interest</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%"><A HREF="#kd2063_section_2.12._repurchase_option."><FONT SIZE=2>SECTION 2.12.</FONT></A></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>Repurchase Option</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2><BR>
ARTICLE III</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><A HREF="#kd2063_article_iii_conditions_of_purchases"><FONT SIZE=2><BR>
CONDITIONS OF PURCHASES</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%"><A HREF="#kd2063_section_3.01._condition__kd201956"><FONT SIZE=2>SECTION 3.01.</FONT></A></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>Conditions Precedent to Initial Purchase</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%"><A HREF="#kd2063_section_3.02._conditions_prece__sec02542"><FONT SIZE=2>SECTION 3.02.</FONT></A></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>Conditions Precedent to All Purchases and Reinvestments</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2><BR>
ARTICLE IV</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><A HREF="#ke2063_article_iv_representations_and_warranties"><FONT SIZE=2><BR>
REPRESENTATIONS AND WARRANTIES</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%"><A HREF="#ke2063_section_4.01._represent__ke202139"><FONT SIZE=2>SECTION 4.01.</FONT></A></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>Representations and Warranties of the Seller</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%"><A HREF="#ke2063_section_4.02._representations___sec02482"><FONT SIZE=2>SECTION 4.02.</FONT></A></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>Representations and Warranties of the Collection Agent</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2><BR>
ARTICLE V</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><A HREF="#ke2063_article_v_covenants"><FONT SIZE=2><BR>
COVENANTS</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%"><A HREF="#ke2063_section_5.01._covenants_of_the_seller."><FONT SIZE=2>SECTION 5.01.</FONT></A></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>Covenants of the Seller</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%"><A HREF="#ke2063_section_5.02._covenants_of_the__sec02937"><FONT SIZE=2>SECTION 5.02.</FONT></A></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>Covenants of the Seller and Collection Agent Regarding Inspections</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2><BR>
ARTICLE VI</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><A HREF="#kf2063_article_vi_administrati__kf202477"><FONT SIZE=2><BR>
ADMINISTRATION AND COLLECTION OF POOL RECEIVABLES</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%"><A HREF="#kf2063_section_6.01._designation_of_collection_agent."><FONT SIZE=2>SECTION 6.01.</FONT></A></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>Designation of Collection Agent</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%"><A HREF="#kf2063_section_6.02._duties_of_collection_agent."><FONT SIZE=2>SECTION 6.02.</FONT></A></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>Duties of Collection Agent</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%"><A HREF="#kf2063_section_6.03._certain_rights_of_the_agent."><FONT SIZE=2>SECTION 6.03.</FONT></A></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>Certain Rights of the Agent</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%"><A HREF="#kf2063_section_6.04._rights_and_remedies."><FONT SIZE=2>SECTION 6.04.</FONT></A></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>Rights and Remedies</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%"><A HREF="#kf2063_section_6.05._further_actions_evidencing_purchases."><FONT SIZE=2>SECTION 6.05.</FONT></A></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>Further Actions Evidencing Purchases</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%"><A HREF="#kf2063_section_6.06._changes_in_credi__sec02865"><FONT SIZE=2>SECTION 6.06.</FONT></A></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>Changes in Credit and Collection Policy; Changes in Store Accounts</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%"><A HREF="#kf2063_section_6.07._indemnities_by_the_collection_agent."><FONT SIZE=2>SECTION 6.07.</FONT></A></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>Indemnities by the Collection Agent</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2><BR>
ARTICLE VII</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><A HREF="#kf2063_article_vii_events_of_termination"><FONT SIZE=2><BR>
EVENTS OF TERMINATION</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%"><A HREF="#kf2063_section_7.01._events_of_termination."><FONT SIZE=2>SECTION 7.01.</FONT></A></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>Events of Termination</FONT></TD>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=2>ii</FONT></P>

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<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2><BR>
ARTICLE VIII</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><A HREF="#kf2063_article_viii_the_agent"><FONT SIZE=2><BR>
THE AGENT</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%"><A HREF="#kf2063_section_8.01._authorization_and_action."><FONT SIZE=2>SECTION 8.01.</FONT></A></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>Authorization and Action</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%"><A HREF="#kf2063_section_8.02._agent_s_reliance,_etc."><FONT SIZE=2>SECTION 8.02.</FONT></A></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>Agent's Reliance, Etc.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%"><A HREF="#kf2063_section_8.03._credit_lyonnais_and_affiliates."><FONT SIZE=2>SECTION 8.03.</FONT></A></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>Credit Lyonnais and Affiliates</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%"><A HREF="#kf2063_section_8.04._bank_s_purchase_decision."><FONT SIZE=2>SECTION 8.04.</FONT></A></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>Bank's Purchase Decision</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2><BR>
ARTICLE IX</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><A HREF="#kf2063_article_ix_indemnification"><FONT SIZE=2><BR>
INDEMNIFICATION</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%"><A HREF="#kf2063_section_9.01._indemnities_by_the_seller."><FONT SIZE=2>SECTION 9.01.</FONT></A></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>Indemnities by the Seller</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2><BR>
ARTICLE X</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><A HREF="#kg2063_article_x_miscellaneous"><FONT SIZE=2><BR>
MISCELLANEOUS</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%"><A HREF="#kg2063_section_10.01._amendments,_etc."><FONT SIZE=2>SECTION 10.01.</FONT></A></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>Amendments, Etc.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%"><A HREF="#kg2063_section_10.02._notices,_etc."><FONT SIZE=2>SECTION 10.02.</FONT></A></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>Notices, Etc.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%"><A HREF="#kg2063_section_10.03._assignability."><FONT SIZE=2>SECTION 10.03.</FONT></A></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>Assignability</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%"><A HREF="#kg2063_section_10.04._costs,_expenses_and_taxes."><FONT SIZE=2>SECTION 10.04.</FONT></A></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>Costs, Expenses and Taxes</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%"><A HREF="#kg2063_section_10.05._united_s__kg202021"><FONT SIZE=2>SECTION 10.05.</FONT></A></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>United States Federal Income Tax Treatment</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%"><A HREF="#kg2063_section_10.06._no_proceedings."><FONT SIZE=2>SECTION 10.06.</FONT></A></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>No Proceedings</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%"><A HREF="#kg2063_section_10.07._confidentiality."><FONT SIZE=2>SECTION 10.07.</FONT></A></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>Confidentiality</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%"><A HREF="#kg2063_section_10.08._governing_law."><FONT SIZE=2>SECTION 10.08.</FONT></A></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>GOVERNING LAW</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%"><A HREF="#kg2063_section_10.09._execution_in_counterparts."><FONT SIZE=2>SECTION 10.09.</FONT></A></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>Execution in Counterparts</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%"><A HREF="#kg2063_section_10.10._survival_of_termination."><FONT SIZE=2>SECTION 10.10.</FONT></A></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>Survival of Termination</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%"><A HREF="#kg2063_section_10.11._consent_to_jurisdiction."><FONT SIZE=2>SECTION 10.11.</FONT></A></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>Consent to Jurisdiction</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%"><A HREF="#kg2063_section_10.12._waiver_of_jury_trial."><FONT SIZE=2>SECTION 10.12.</FONT></A></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>WAIVER OF JURY TRIAL</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%"><A HREF="#kg2063_section_10.13._excess_funds."><FONT SIZE=2>SECTION 10.13.</FONT></A></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>Excess Funds</FONT></TD>
</TR>
</TABLE>
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<TABLE WIDTH="79%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD COLSPAN=3 ALIGN="CENTER"><BR><FONT SIZE=2><B> SCHEDULES</B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="19%"><FONT SIZE=2><BR>
SCHEDULE I</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="79%"><FONT SIZE=2><BR>
-Lock-Box Banks and Collection Account</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="19%"><FONT SIZE=2>SCHEDULE II</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="79%"><FONT SIZE=2>-Credit and Collection Policy</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="19%"><FONT SIZE=2>SCHEDULE III</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="79%"><FONT SIZE=2>-Normal Concentration Limits</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="19%"><FONT SIZE=2>SCHEDULE IV</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="79%"><FONT SIZE=2>-Store Accounts</FONT></TD>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=2>iii</FONT></P>

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<TABLE WIDTH="79%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD COLSPAN=3 ALIGN="CENTER"><BR><FONT SIZE=2><B>ANNEXES</B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="19%"><FONT SIZE=2><BR>
ANNEX A</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="79%"><FONT SIZE=2><BR>
-Form of Monthly Report</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="19%"><FONT SIZE=2>ANNEX B</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="79%"><FONT SIZE=2>-Form of Weekly Report</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="19%"><FONT SIZE=2>ANNEX C</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="79%"><FONT SIZE=2>-Forms of Opinions of Counsel to the Seller</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="19%"><FONT SIZE=2>ANNEX D</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="79%"><FONT SIZE=2>-Form of Bank Direction Agreement</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="19%"><FONT SIZE=2>ANNEX E-1</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="79%"><FONT SIZE=2>-Form of Lock-Box Agreement</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="19%"><FONT SIZE=2>ANNEX E-2</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="79%"><FONT SIZE=2>-Form of Account Agreement</FONT></TD>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=2>iv</FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kc2063_receivables_purchase_ag__kc201974"> </A>
<A NAME="toc_kc2063_1"> </A>
<BR></FONT><FONT SIZE=2><B>RECEIVABLES<BR>  PURCHASE AGREEMENT<BR>  <BR>    Dated as of October&nbsp;26, 2001    <BR>  </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;DTSC,&nbsp;INC., a Delaware corporation (the </FONT><FONT SIZE=2><I>"Seller"</I></FONT><FONT SIZE=2>),ATLANTIC ASSET SECURITIZATION CORP., a Delaware
corporation, CREDIT LYONNAIS NEW YORK BRANCH, as agent (the </FONT><FONT SIZE=2><I>"Agent"</I></FONT><FONT SIZE=2>) for the Investors and the Banks (as defined herein) and as a Bank, and
DAL-TILE CORPORATION, a Pennsylvania corporation, as Collection Agent and as Originator, agree as follows: </FONT></P>

<A NAME="kc2063_preliminary_statemen_1ank"> </A>
<A NAME="kc2063_preliminary_statement"> </A>
<A NAME="toc_kc2063_2"> </A>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;PRELIMINARY
STATEMENT. The Seller has acquired, and may continue to acquire, Receivables (as hereinafter defined) from the Originator (as hereinafter defined), either by purchase or
by contribution to the capital of the Seller, as determined from time to time by the Seller and the Originator. The Seller is prepared to sell undivided fractional ownership interests (referred to and
defined herein as </FONT><FONT SIZE=2><I>"Receivable Interests"</I></FONT><FONT SIZE=2>) in the Receivables. Atlantic may, in its sole discretion, purchase such Receivable Interests, and the Banks
shall, if Atlantic does not, purchase such Receivable Interests, in each case on the terms set forth herein. Accordingly, the parties agree as follows: </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kc2063_article_i_definitions"> </A>
<A NAME="toc_kc2063_3"> </A>
<BR></FONT><FONT SIZE=2><B>ARTICLE I<BR>  <BR>    DEFINITIONS    <BR>  </B></FONT></P>

<P><FONT SIZE=2><A
NAME="kc2063_section_1.01._certain_defined_terms."> </A>
<A NAME="toc_kc2063_4"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;SECTION 1.01.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Certain Defined Terms. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;As used in this Agreement, the following terms shall have the following meanings (such meanings to be equally
applicable to both the singular and plural forms
of the terms defined): </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Account Agreement"</I></FONT><FONT SIZE=2> means an agreement with respect to the Collection Account, in substantially the form of Annex E-2. </FONT></P>


<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Adjusted Eurodollar Rate"</I></FONT><FONT SIZE=2> means, for any Fixed Period, an interest rate per annum equal to the rate per annum obtained by dividing
(i)&nbsp;the Eurodollar Rate for such Fixed Period by (ii)&nbsp;a percentage equal to 100% minus the Eurodollar Rate Reserve Percentage for such Fixed Period. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Adverse Claim"</I></FONT><FONT SIZE=2> means a lien, security interest or other charge or encumbrance, or any other type of preferential arrangement. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Affiliate"</I></FONT><FONT SIZE=2> means, as to any Person, any other Person that, directly or indirectly, is in control of, is controlled by or is under
common control with such Person or, as used in Sections 6.07, 8.03 (other than the first sentence of Section&nbsp;8.03), 8.04, 9.01 and 10.04, is a director or officer of such Person. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Affiliated Obligor"</I></FONT><FONT SIZE=2> means any Obligor that is an Affiliate of another Obligor. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Agent's Account"</I></FONT><FONT SIZE=2> means the special account (account number 01-25680-001-00-001) of the
Agent maintained at the office of Credit Lyonnais at 1301 Avenue of the Americas, New York, New York. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Alternate Base Rate"</I></FONT><FONT SIZE=2> means, as of any date, a fluctuating interest rate per annum, which rate shall be equal to the higher of: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;the
rate of interest announced by Credit Lyonnais from time to time as its base rate (it being understood that such rate is not necessarily intended to be the
lowest rate of interest determined by Credit Lyonnais in connection with extensions of credit); and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;0.50%
per annum above the Federal Funds Rate for such date. </FONT></P>

</UL>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Asset Purchase Agreement"</I></FONT><FONT SIZE=2> means, in the case of any Bank, the liquidity asset purchase agreement entered into by such Bank
concurrently with its execution of this Agreement or of the Assignment and Acceptance pursuant to which it became party to this Agreement. The Asset Purchase Agreement with Credit Lyonnais shall have
an initial term expiring on October&nbsp;25, 2002. </FONT></P>

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<A NAME="page_kc2063_1_2"> </A>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Assignee Rate"</I></FONT><FONT SIZE=2> for any Fixed Period for any Receivable Interest means an interest rate per annum equal to 1.775% per annum above the
Eurodollar Rate for such Fixed Period; </FONT><FONT SIZE=2><I>provided, however, </I></FONT><FONT SIZE=2>that in case of: </FONT></P>

<UL>
<DL compact>
<DT><FONT SIZE=2>(ii)</FONT></DT><DD><FONT SIZE=2>any
Fixed Period on or prior to the first day of which an Investor or Bank shall have notified the Agent that the introduction of or any change in
or in the interpretation of any law or regulation makes it unlawful, or any central bank or other governmental authority asserts that it is unlawful, for such Investor or Bank to fund such Receivable
Interest at the Assignee Rate set forth above (and such Investor or Bank shall not have subsequently notified the Agent that such circumstances no longer exist),
<BR><BR></FONT></DD><DT><FONT SIZE=2>(iii)</FONT></DT><DD><FONT SIZE=2>any
Fixed Period of one to (and including) 35&nbsp;days (it being understood and agreed that this clause&nbsp;(ii) shall not be applicable to
a Fixed Period for which Yield is to be computed by reference to the Eurodollar Rate that is intended to have a one-month duration),
<BR><BR></FONT></DD><DT><FONT SIZE=2>(iv)</FONT></DT><DD><FONT SIZE=2>any
Fixed Period as to which the Agent does not receive notice, by no later than 12:00 noon (New York City time) on the third Business Day
preceding the first day of such Fixed Period, that the related Receivable Interest will not be funded by issuance of commercial paper, or
<BR><BR></FONT></DD><DT><FONT SIZE=2>(v)</FONT></DT><DD><FONT SIZE=2>any
Fixed Period for a Receivable Interest the Capital of which allocated to the Investors or the Banks is less than $500,000, </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>the
</FONT><FONT SIZE=2><I>"Assignee Rate"</I></FONT><FONT SIZE=2> for such Fixed Period shall be an interest rate per annum equal to the Alternate Base Rate in effect from time to time during such
Fixed Period; </FONT><FONT SIZE=2><I>provided further </I></FONT><FONT SIZE=2>that the Agent and the Seller may agree in writing from time to time upon a different </FONT><FONT SIZE=2><I>" Assignee
Rate."</I></FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Assignment and Acceptance"</I></FONT><FONT SIZE=2> means an assignment and acceptance agreement, in form and substance satisfactory to the Agent, entered into
by a Bank, an Eligible Assignee and the Agent, pursuant to which such Eligible Assignee shall become a party to this Agreement. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Atlantic"</I></FONT><FONT SIZE=2> means Atlantic Asset Securitization Corp. and any successor or permitted assign of Atlantic that is a receivables investment
company which in the ordinary course of its business issues commercial paper or other securities to fund its acquisition and maintenance of receivables. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Bank Commitment"</I></FONT><FONT SIZE=2> of any Bank means, (a)&nbsp;with respect to Credit Lyonnais, $75,000,000 or such amount as reduced by any
Assignment and Acceptance entered into between Credit Lyonnais and other Banks; or (b)&nbsp;with respect to a Bank that has entered into an Assignment and Acceptance, the amount set forth therein as
such Bank's Bank Commitment, in each case as such amount may be reduced by an
Assignment and Acceptance entered into between such Bank and an Eligible Assignee, and as may be further reduced (or terminated) pursuant to the next sentence. Any reduction (or termination) of the
Purchase Limit pursuant to the terms of this Agreement shall reduce ratably (or terminate) each Bank's Bank Commitment. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Bank Direction Agreement"</I></FONT><FONT SIZE=2> means an agreement, in substantially the form of Annex D hereto, among the Originator, the Agent and a Store
Account Bank, pursuant to which such Store Account Bank agrees to remit all funds deposited in the Store Account maintained by it to the Collection Account. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Banks"</I></FONT><FONT SIZE=2> means Credit Lyonnais and each Eligible Assignee that shall become a party to this Agreement pursuant to Section&nbsp;10.03. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Business Day"</I></FONT><FONT SIZE=2> means any day on which (i)&nbsp;banks are not authorized or required to close in New York City or Dallas, Texas, and
(ii)&nbsp;if this definition of "Business Day" is utilized in connection with the Eurodollar Rate, dealings are carried out in the London interbank market. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

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<A NAME="page_kc2063_1_3"> </A>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Capital"</I></FONT><FONT SIZE=2> of any Receivable Interest means the original amount paid to the Seller for such Receivable Interest at the time of its
purchase by Atlantic or a Bank pursuant to this Agreement, or such amount divided or combined in accordance with Section&nbsp;2.07, in each case reduced from time to time by Collections distributed
on account of such Capital pursuant to Section&nbsp;2.04(d); </FONT><FONT SIZE=2><I>provided </I></FONT><FONT SIZE=2>that if such Capital shall have been reduced by any distribution and thereafter
all or a portion of such distribution is rescinded or must otherwise be returned for any reason, such Capital shall be increased by the amount of such rescinded or returned distribution, as though it
had not been made. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Collection Account"</I></FONT><FONT SIZE=2> means the bank account maintained by the Seller for the purpose of receiving funds remitted from all of the Store
Accounts. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Collection Agent"</I></FONT><FONT SIZE=2> means at any time the Person then authorized pursuant to Section&nbsp;6.01 to administer and collect Pool
Receivables, in its capacity as Collection Agent, which initially will be the Originator. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Collection Agent Fee"</I></FONT><FONT SIZE=2> has the meaning specified in Section&nbsp;2.05(a). </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Collections"</I></FONT><FONT SIZE=2> means, with respect to any Receivable, all cash collections and other cash proceeds of such Receivable, including,
without limitation, all cash proceeds of Related Security with respect to such Receivable, and any Collection of such Receivable deemed to have been received pursuant to Section&nbsp;2.04. </FONT></P>


<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Commitment Termination Date"</I></FONT><FONT SIZE=2> means the earliest of (a)&nbsp;October&nbsp;25, 2002, </FONT><FONT SIZE=2><I>unless,  </I></FONT><FONT SIZE=2>prior to such date (or the date so extended
pursuant to this clause), upon the Seller's request, made not more than 90 nor less than 45&nbsp;days prior to the then effective
Commitment Termination Date, one or more Banks having Bank Commitments equal to 100% of the Purchase Limit shall in their sole discretion consent, which consent shall be given within 30&nbsp;days of
the receipt by each Bank of such request, to the extension of the Commitment Termination Date to the date occurring 364&nbsp;days after the then Commitment Termination Date; </FONT> <FONT SIZE=2><I>provided, however, </I></FONT><FONT SIZE=2>that any
failure of any Bank to respond to the Seller's request for such extension within 30&nbsp;days of the receipt by such Bank
of such request shall be deemed a denial of such request by such Bank, (b)&nbsp;the Facility Termination Date, (c)&nbsp;the date determined pursuant to Section&nbsp;7.01, and (d)&nbsp;the date
the Purchase Limit reduces to zero pursuant to Section&nbsp;2.01(b). </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Concentration Limit"</I></FONT><FONT SIZE=2> means (i)&nbsp;at any time for any Obligor (other than an Obligor referred to in clause&nbsp;(ii) below), the </FONT> <FONT SIZE=2><I>"Normal Concentration
Limit" </I></FONT><FONT SIZE=2>set forth on Schedule&nbsp;III hereto corresponding to such Obligor's Debt Rating at such time, and (ii)&nbsp;at any
time for Home Depot Corporation, together with any of its Affiliates, 15% or such other percentage (</FONT><FONT SIZE=2><I>"Special Concentration Limit"</I></FONT><FONT SIZE=2>) for such Obligor
designated by the Agent in a writing delivered to the Seller; </FONT><FONT SIZE=2><I>provided, </I></FONT><FONT SIZE=2>that if the Debt Rating of Home Depot Corporation is withdrawn at any time by
either Moody's or S&amp;P or reduced at any time by either Moody's or S&amp;P below the Debt Rating for Home Depot Corporation on the date hereof, then the Special Concentration Limit described above in
respect of Home Depot Corporation shall be canceled and replaced by the Normal Concentration Limit set forth on Schedule&nbsp;III hereto corresponding to such Obligor's Debt Rating at such time; and </FONT> <FONT SIZE=2><I>provided, further,
</I></FONT><FONT SIZE=2>that in the case of an Obligor with any Affiliated Obligor, the Concentration Limit shall be calculated as if such Obligor and all
such Affiliated Obligors are one Obligor; </FONT><FONT SIZE=2><I>provided, however, </I></FONT><FONT SIZE=2>that if the </FONT><FONT SIZE=2><I>"Normal Concentration Limit"</I></FONT><FONT SIZE=2>
set forth on Schedule&nbsp;III hereto corresponding to the Debt Rating of such Obligor and Affiliated Obligors are different, then the lowest such Normal Concentration Limit shall apply to such
Obligor and Affiliated Obligors; and </FONT><FONT SIZE=2><I>provided further </I></FONT><FONT SIZE=2>that the Agent may cancel any Special Concentration Limit upon three Business Days' notice to the
Seller. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Contract"</I></FONT><FONT SIZE=2> means an agreement between the Originator and an Obligor, substantially in the form of one of the written contracts or (in
the case of any open account agreement) one of the invoices </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>

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<A NAME="page_kc2063_1_4"> </A>

<P><FONT SIZE=2>
approved by the Agent, pursuant to or under which such Obligor shall be obligated to pay for merchandise or services from time to time. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Credit Agreement"</I></FONT><FONT SIZE=2> means the Amended and Restated Credit and Guarantee Agreement dated as of October&nbsp;26, 2001 (without giving
effect to any amendments or waivers thereto except as specifically
provided herein) among Dal-Tile Group, Dal-Tile International, the lenders listed therein, Bank of America, N.A., as syndication agent, Credit Lyonnais New York Branch, First
Union National Bank and Mizuho Financial Group, as co-documentation agents and The Chase Manhattan Bank, as administrative agent. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Credit and Collection Policy"</I></FONT><FONT SIZE=2> means those receivables credit and collection policies and practices of the Seller and the Originator in
effect on the date of this Agreement and described in Schedule&nbsp;II hereto, as modified in compliance with this Agreement. </FONT></P>


<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Credit Lyonnais"</I></FONT><FONT SIZE=2> means Credit Lyonnais New York Branch, a branch licensed under the laws of the State of New York of a banking
corporation organized under the laws of the Republic of France. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Dal-Tile Group"</I></FONT><FONT SIZE=2> means Dal-Tile Group&nbsp;Inc., a Delaware corporation. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Dal-Tile International"</I></FONT><FONT SIZE=2> means Dal-Tile International&nbsp;Inc., a Delaware corporation. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Days Sales Outstanding"</I></FONT><FONT SIZE=2> means, on any date, an amount equal to </FONT></P>

<!-- User-specified TAGGED TABLE -->
<DIV ALIGN="CENTER"><TABLE WIDTH="13%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="49%" ALIGN="CENTER"><FONT SIZE=2><U>OBPR</U></FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="18%" ALIGN="CENTER"><FONT SIZE=2>&times;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="17%" ALIGN="CENTER"><FONT SIZE=2>D</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%" ALIGN="CENTER"><FONT SIZE=2>S</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="18%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE></DIV>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2>where:
</FONT></P>

<!-- User-specified TAGGED TABLE -->
<DIV ALIGN="CENTER"><TABLE WIDTH="71%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="9%"><FONT SIZE=2><BR>
OBPR</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" ALIGN="CENTER"><FONT SIZE=2><BR>
=</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="84%"><FONT SIZE=2><BR>
the aggregate Outstanding Balance of all Pool Receivables at the end of the most recently ended Fiscal Month.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="9%"><FONT SIZE=2><BR>
S</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" ALIGN="CENTER"><FONT SIZE=2><BR>
=</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="84%"><FONT SIZE=2><BR>
the aggregate amount of all Pool Sales created during the most recently ended Fiscal Month.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="9%"><FONT SIZE=2><BR>
D</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" ALIGN="CENTER"><FONT SIZE=2><BR>
=</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="84%"><FONT SIZE=2><BR>
the number of days in the most recently ended Fiscal Month.</FONT></TD>
</TR>
</TABLE></DIV>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Debt"</I></FONT><FONT SIZE=2> means (i)&nbsp;indebtedness for borrowed money, (ii)&nbsp;obligations evidenced by bonds, debentures, notes or other similar
instruments, (iii)&nbsp;obligations to pay the deferred purchase price of property or services (other than current unsecured accounts payable incurred in the ordinary course of business),
(iv)&nbsp;obligations as lessee under leases which shall have been or should be, in accordance with generally accepted accounting principles, recorded as capital leases, and (v)&nbsp;obligations
under direct or indirect guaranties in respect of, and obligations (contingent or otherwise) to purchase or otherwise acquire, or otherwise to assure a creditor against loss in respect of,
indebtedness or obligations of others of the kinds referred to in clauses (i)&nbsp;through (iv)&nbsp;above. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Debt Rating"</I></FONT><FONT SIZE=2> means, for any Person, the rating by S&amp;P or Moody's of such Person's short-term senior unsecured
non-credit-enhanced debt. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Default Ratio"</I></FONT><FONT SIZE=2> means the ratio (expressed as a percentage) computed as of the last day of each Fiscal Month by dividing (i)&nbsp;the
aggregate Outstanding Balance of all Originator Receivables that were Defaulted Receivables on such day or that would have been Defaulted Receivables on such day had they not been written off the
books of the Originator or the Seller during such Fiscal Month by (ii)&nbsp;the aggregate Outstanding Balance of all Originator Receivables on such day. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>4</FONT></P>

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<A NAME="page_kc2063_1_5"> </A>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Defaulted Receivable"</I></FONT><FONT SIZE=2> means an Originator Receivable: </FONT></P>

<UL>
<DL compact>
<DT><FONT SIZE=2>(i)</FONT></DT><DD><FONT SIZE=2>as
to which any payment, or part thereof, remains unpaid for 91 or more days from the original due date for such payment;
<BR><BR></FONT></DD><DT><FONT SIZE=2>(ii)</FONT></DT><DD><FONT SIZE=2>as
to which the Obligor thereof or any other Person obligated thereon or owning any Related Security in respect thereof has taken any action, or
suffered any event to occur, of the type described in Section&nbsp;7.01(g); or
<BR><BR></FONT></DD><DT><FONT SIZE=2>(iii)</FONT></DT><DD><FONT SIZE=2>which
has been or, consistent with the Credit and Collection Policy, would be written off the Originator's or the Seller's books as uncollectible. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Deferred Purchase Price"</I></FONT><FONT SIZE=2> has the meaning specified in the PCA. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Delinquency Ratio"</I></FONT><FONT SIZE=2> means the ratio (expressed as a percentage) computed as of the last day of each Fiscal Month by dividing
(i)&nbsp;the aggregate Outstanding Balance of all Originator Receivables that were Delinquent Receivables on such day by (ii)&nbsp;the aggregate Outstanding Balance of all Originator Receivables
on such day. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Delinquent Receivable"</I></FONT><FONT SIZE=2> means an Originator Receivable that is not a Defaulted Receivable and: </FONT></P>

<UL>
<DL compact>
<DT><FONT SIZE=2>(i)</FONT></DT><DD><FONT SIZE=2>as
to which any payment, or part thereof, remains unpaid for 61 or more days from the original due date for such payment; or
<BR><BR></FONT></DD><DT><FONT SIZE=2>(ii)</FONT></DT><DD><FONT SIZE=2>which
has been or, consistent with the Credit and Collection Policy, would be classified as delinquent by the Originator or the Seller. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Diluted Receivable"</I></FONT><FONT SIZE=2> means that portion (and only that portion) of any Originator Receivable which is either (a)&nbsp;reduced or
canceled as a result of (i)&nbsp;any defective, rejected or returned merchandise or services or any failure by the Originator to deliver any merchandise or provide any services or otherwise to
perform under the underlying Contract, (ii)&nbsp;any change in the terms of or cancellation of a Contract or any cash discount, discount for quick payment or other adjustment by the Originator or
any other Person which reduces the amount payable by the Obligor on the related Originator Receivable (except any such change or cancellation resulting from or relating to the financial inability to
pay or insolvency of the Obligor of such Originator Receivable) or (iii)&nbsp;any set-off by an Obligor in respect of any claim by such Obligor as to amounts owed by it on the related
Originator Receivable (whether such claim arises out of the same or a related transaction or an unrelated transaction) or (b)&nbsp;subject to any specific dispute, offset, counterclaim or defense
whatsoever (except the discharge in bankruptcy of the Obligor thereof), including, without limitation, any non-payment by the Obligor due to failure by the Originator to deliver any
merchandise or provide any services; </FONT><FONT SIZE=2><I>provided </I></FONT><FONT SIZE=2>that Diluted Receivables are calculated assuming that all chargebacks are resolved in the Obligor's favor
and do not include contractual adjustments to the amount payable by an Obligor that are eliminated from an
Originator Receivables balance sold to the Seller through a reduction in the purchase price paid by the Seller for the related Originator Receivable. </FONT></P>


<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Dilution Horizon Factor"</I></FONT><FONT SIZE=2> means, as of any date, a ratio (expressed as a percentage) computed by dividing (i)&nbsp;the aggregate
Outstanding Balance (in each case, at the time of creation) of all Originator Receivables created by the Originators during the most recently ended Fiscal Month by (ii)&nbsp;the Outstanding Balance
of Eligible Receivables in the Receivables Pool as at the last day of the most recently ended Fiscal Month. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Dilution Percentage"</I></FONT><FONT SIZE=2> means, as of any date, the product of (i)&nbsp;the sum of (A)&nbsp;the product of (1)&nbsp;two multiplied
by (2)&nbsp;the average of the Dilution Ratios for each of the twelve most recently ended Fiscal Months, plus (B)&nbsp;the Dilution Volatility Ratio as at the last day of the most recently ended
Fiscal Month, multiplied by (ii)&nbsp;the Dilution Horizon Factor as of such date. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>5</FONT></P>

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<A NAME="page_kc2063_1_6"> </A>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Dilution Ratio"</I></FONT><FONT SIZE=2> means, as of any date, the ratio (expressed as a percentage) computed for the most recently ended Fiscal Month by
dividing (i)&nbsp;the aggregate amount of Originator Receivables which became Diluted Receivables during such Fiscal Month by (ii)&nbsp;the aggregate Outstanding Balance (in each case, at the time
of creation) of all Originator Receivables created during the Fiscal Month immediately preceding such Fiscal Month. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Dilution Reserve"</I></FONT><FONT SIZE=2> means, for any Receivable Interest on any date, an amount equal to: </FONT></P>

<!-- User-specified TAGGED TABLE -->
<DIV ALIGN="CENTER"><TABLE WIDTH="10%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="34%"><FONT SIZE=2>DP</FONT></TD>
<TD WIDTH="11%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="24%" ALIGN="CENTER"><FONT SIZE=2>&times;</FONT></TD>
<TD WIDTH="11%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="21%" ALIGN="CENTER"><FONT SIZE=2>C</FONT></TD>
</TR>
</TABLE></DIV>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2>where:
</FONT></P>

<!-- User-specified TAGGED TABLE -->
<DIV ALIGN="CENTER"><TABLE WIDTH="71%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="5%"><FONT SIZE=2>DP</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" ALIGN="CENTER"><FONT SIZE=2>=</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="89%"><FONT SIZE=2>the Dilution Percentage on such date.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="5%"><FONT SIZE=2><BR>
C</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" ALIGN="CENTER"><FONT SIZE=2><BR>
=</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="89%"><FONT SIZE=2><BR>
the Capital of such Receivable Interest on such date.</FONT></TD>
</TR>
</TABLE></DIV>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Dilution Volatility Ratio"</I></FONT><FONT SIZE=2> means, as of any date, a ratio (expressed as a percentage) equal to the product of (a)&nbsp;the highest
of the Dilution Ratios calculated for each of the twelve most recently ended Fiscal Months minus the average of the Dilution Ratios for each of the twelve most recently ended Fiscal Months, and
(b)&nbsp;a ratio calculated by dividing the highest of the Dilution Ratios calculated for each of the twelve most recently ended Fiscal Months by the average of the Dilution Ratios for each of the
twelve most recently ended Fiscal Months. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"DTC Store"</I></FONT><FONT SIZE=2> means any sales service center operated by the Originator. </FONT></P>


<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Eligible Assignee"</I></FONT><FONT SIZE=2> means (i)&nbsp;Credit Lyonnais or any of its Affiliates or (ii)&nbsp;any financial or other institution
acceptable to the Agent and having a Debt Rating of at least A-1/P-1 that is approved in writing by the Seller (such approval not to be unreasonably withheld or delayed);
provided that if an Event of Termination or Incipient Event of Termination has occurred and is continuing at the time of such assignment, no approval by the Seller shall be required under
clause&nbsp;(ii). </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Eligible Receivable"</I></FONT><FONT SIZE=2> means, at any time, a Receivable: </FONT></P>

<UL>
<DL compact>
<DT><FONT SIZE=2>(i)</FONT></DT><DD><FONT SIZE=2>the
Obligor of which (A)&nbsp;is a United States resident, (B)&nbsp;is not an Affiliate of Dal-Tile International,
Dal-Tile Group, the Originator or the Seller and (C)&nbsp;is not a government or a governmental subdivision or agency that has the benefit of an anti-assignment statute or
other statute imposing restrictions on the assignment of Receivables due from it;
<BR><BR></FONT></DD><DT><FONT SIZE=2>(ii)</FONT></DT><DD><FONT SIZE=2>which
is not a Defaulted Receivable or a Delinquent Receivable;
<BR><BR></FONT></DD><DT><FONT SIZE=2>(iii)</FONT></DT><DD><FONT SIZE=2>which,
according to the Contract related thereto, is required to be paid in full either (A)&nbsp;within less than 60&nbsp;days of the original
billing date therefor or (B)&nbsp;within 60&nbsp;days of the original billing date therefor if the aggregate Outstanding Balance of such Receivable and all other Receivables having similar payment
terms does not exceed 50% of the Outstanding Balance of all Originator Receivables;
<BR><BR></FONT></DD><DT><FONT SIZE=2>(iv)</FONT></DT><DD><FONT SIZE=2>which
is an "account" within the meaning of Article&nbsp;9 of the UCC of the applicable jurisdictions governing the perfection of the interest
created by a Receivable Interest;
<BR><BR></FONT></DD><DT><FONT SIZE=2>(v)</FONT></DT><DD><FONT SIZE=2>which
is denominated and payable only in United States dollars in the United States;
<BR><BR></FONT></DD><DT><FONT SIZE=2>(vi)</FONT></DT><DD><FONT SIZE=2>which
arises under a Contract which, together with such Receivable, is in full force and effect and constitutes the legal, valid and binding
obligation of the Obligor of such Receivable and is not subject to any Adverse Claim or any dispute, offset, counterclaim or defense whatsoever (except the potential discharge in bankruptcy of such
Obligor); </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>6</FONT></P>

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<UL>
<UL>
</UL>
<DL compact>
<DT><FONT SIZE=2>(vii)</FONT></DT><DD><FONT SIZE=2>which,
together with the Contract related thereto, does not contravene in any material respect any laws, rules or regulations applicable thereto
(including, without limitation, laws, rules and regulations relating to usury, consumer protection, truth in lending, fair credit billing, fair credit reporting, equal credit opportunity, fair debt
collection practices and privacy) and with respect to which none of the Seller, the Originator or the Obligor is in violation of any such law, rule or regulation in any material respect;
<BR><BR></FONT></DD><DT><FONT SIZE=2>(viii)</FONT></DT><DD><FONT SIZE=2>which
arises under a Contract which (A)&nbsp;does not require the Obligor thereunder to consent to the transfer, sale or
assignment of the rights and duties of the Seller or the Originator thereunder and (B)&nbsp;does not contain a confidentiality provision that purports to restrict the ability of the Agent, the
Investors or the Banks to exercise their rights under this Agreement, including, without limitation, their right to review the Contract;
<BR><BR></FONT></DD><DT><FONT SIZE=2>(ix)</FONT></DT><DD><FONT SIZE=2>which
was generated in the ordinary course of the Originator's business;
<BR><BR></FONT></DD><DT><FONT SIZE=2>(x)</FONT></DT><DD><FONT SIZE=2>which
has not been extended, rewritten or otherwise modified from the original terms thereof (except as permitted by Section&nbsp;6.02(c);
<BR><BR></FONT></DD><DT><FONT SIZE=2>(xi)</FONT></DT><DD><FONT SIZE=2>the
transfer, sale or assignment of which does not contravene any applicable law, rule or regulation;
<BR><BR></FONT></DD><DT><FONT SIZE=2>(xii)</FONT></DT><DD><FONT SIZE=2>which
satisfies all applicable requirements of the Credit and Collection Policy;
<BR><BR></FONT></DD><DT><FONT SIZE=2>(xiii)</FONT></DT><DD><FONT SIZE=2>which
does not constitute a "bill and hold" sale; and
<BR><BR></FONT></DD><DT><FONT SIZE=2>(xiv)</FONT></DT><DD><FONT SIZE=2>as
to which, prior to the Origination Date of such Receivable, the Agent has not notified the Seller that such Receivable (or the
Obligor of such Receivable) is, in the reasonable good faith judgment of Atlantic and the Banks, no longer acceptable for purchase by Atlantic and the Banks hereunder for credit-related reasons. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"ERISA"</I></FONT><FONT SIZE=2> means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the regulations promulgated and
rulings issued thereunder. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Eurocurrency Liabilities"</I></FONT><FONT SIZE=2> has the meaning assigned to that term in Regulation&nbsp;D of the Board of Governors of the Federal
Reserve System, as in effect from time to time. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Eurodollar Rate"</I></FONT><FONT SIZE=2> means, for any Fixed Period, an interest rate per annum determined by the Agent equal to the offered rate per annum
for deposits in U.S. dollars in an amount substantially equal to the Capital associated with such Fixed Period on the first day of such Fixed Period and for a period equal to such Fixed Period, as of
11:00&nbsp;A.M., London time, two Business Days prior to the first day of the applicable Fixed Period, that appears on the display designated as "Page 3750" on the Telerate Service (or such other
page as may replace "Page 3750" on that service for the purpose of displaying London interbank offered rates of major banks); </FONT><FONT SIZE=2><I>provided, </I></FONT><FONT SIZE=2>that if such
rate is not available on any date when the Eurodollar Rate is to be determined, then the rate shall be an interest rate per annum determined by the Agent equal to the rate at which it would offer
deposits in U.S. dollars to prime banks in the London interbank market for a period equal to such Fixed Period and in an amount substantially equal to the Capital associated with such Fixed Period at
or about 11:00&nbsp;A.M. (London Time) on the second Business Day before (and for value on) the first day of such Fixed Period. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Eurodollar Rate Reserve Percentage"</I></FONT><FONT SIZE=2> of any Investor or Bank for any Fixed Period in respect of which Yield is computed by reference to
the Eurodollar Rate means the reserve percentage applicable two Business Days before the first day of such Fixed Period under regulations issued from time to time by the Board of Governors of the
Federal Reserve System (or any successor) (or if more than one such percentage shall be applicable, the daily average of such percentages for those days in such Fixed Period during which any such
percentage shall be so applicable) for determining the maximum reserve requirement (including, without limitation, any emergency, supplemental or other marginal reserve </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>7</FONT></P>

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<P><FONT SIZE=2>
requirement) for such Investor or Bank with respect to liabilities or assets consisting of or including Eurocurrency Liabilities (or with respect to any other category of liabilities that includes
deposits by
reference to which the interest rate on Eurocurrency Liabilities is determined) having a term equal to such Fixed Period. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Event of Termination"</I></FONT><FONT SIZE=2> has the meaning specified in Section&nbsp;7.01. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Facility Termination Date"</I></FONT><FONT SIZE=2> means the earliest of (a)&nbsp;October&nbsp;22, 2004 or (b)&nbsp;the date determined pursuant to
Section&nbsp;7.01 or (c)&nbsp;the date the Purchase Limit reduces to zero pursuant to Section&nbsp;2.01(b) or (d)&nbsp;the date that the Asset Purchase Agreement expires without being renewed. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Federal Funds Rate"</I></FONT><FONT SIZE=2> means, for any period, a fluctuating interest rate per annum equal for each day during such period to the weighted
average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published for such day (or, if such day is not a Business
Day, for the next preceding Business Day) by the Federal Reserve Bank of New York, or, if such rate is not so published for any day which is a Business Day, the average of the quotations for such day
on such transactions received by the Agent from three Federal funds brokers of recognized standing selected by it. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Fee Agreement"</I></FONT><FONT SIZE=2> has the meaning specified in Section&nbsp;2.05(b). </FONT></P>


<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Fees"</I></FONT><FONT SIZE=2> has the meaning specified in Section&nbsp;2.05(b). </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Fiscal Month"</I></FONT><FONT SIZE=2> means a fiscal month of Dal-Tile International containing four or five weeks as determined under the
accounting policies and procedures of Dal-Tile International and its Affiliates, as in effect on the date hereof. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Fixed Period"</I></FONT><FONT SIZE=2> means with respect to any Receivable Interest: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;initially
the period commencing on the date of purchase of such Receivable Interest and ending such number of days as the Seller shall select and the Agent shall
approve pursuant to Section&nbsp;2.02, up to three months from such date; and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;thereafter
each period commencing on the last day of the immediately preceding Fixed Period for such Receivable Interest and ending such number of days (not to
exceed three months) as the Seller shall select and the Agent shall approve on notice by the Seller received by the Agent (including notice by telephone, confirmed in writing) not later than
11:00&nbsp;A.M. (New York City time) on such last day, </FONT> <FONT SIZE=2><I>except</I></FONT><FONT SIZE=2> that if the Agent shall not have received such notice or approved such period on or before 11:00&nbsp;A.M. (New York City time) on such last
day, such period shall be one day; </FONT></P>

</UL>

<P><FONT SIZE=2><I>provided </I></FONT><FONT SIZE=2>that (i)&nbsp;any Fixed Period in respect of which Yield is computed by reference to the Assignee Rate shall be a period from one to and
including 35&nbsp;days, or a period of one, two or three months, as the Seller may select as provided above; (ii)&nbsp;any Fixed Period (other than of one day) which would otherwise end on a day
which is not a Business Day shall be extended to the next succeeding Business Day (</FONT><FONT SIZE=2><I>provided, however, </I></FONT><FONT SIZE=2>if Yield in respect of such Fixed Period is
computed by reference to the Eurodollar Rate, and such Fixed Period would otherwise end on a day which is not a Business Day, and there is no subsequent Business Day in the same calendar month as such
day, such Fixed Period shall end on the next preceding Business Day); (iii)&nbsp;in the case of any Fixed Period of one day, (A)&nbsp;if such Fixed Period is the initial Fixed Period for a
Receivable Interest, such Fixed Period shall be the day of purchase of such Receivable Interest; (B)&nbsp;any subsequently occurring Fixed Period which is one day shall, if the immediately preceding
Fixed Period is more than one day, be the last day of such immediately preceding Fixed Period, and, if the immediately preceding Fixed Period is one day, be the day next following such immediately
preceding Fixed Period; and (C)&nbsp;if such Fixed Period occurs on a day immediately preceding a day which is not a Business Day, such Fixed Period shall be extended to </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>8</FONT></P>

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<P><FONT SIZE=2>
the next succeeding Business Day; and (iv)&nbsp;in the case of any Fixed Period for any Receivable Interest which commences before the Termination Date for such Receivable Interest and would
otherwise end on a date occurring after such Termination Date, such Fixed Period shall end on such Termination Date and the duration of each Fixed Period which commences on or after the Termination
Date for such Receivable Interest shall be of such duration as shall be selected by the Agent or, in the absence of any such selection, each period of thirty days from the last day of the immediately
preceding Fixed Period. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Incipient Event of Termination"</I></FONT><FONT SIZE=2> means an event that but for notice or lapse of time or both would constitute an Event of Termination. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Investor"</I></FONT><FONT SIZE=2> means Atlantic and all other owners by permitted assignment of a Receivable Interest originally purchased by Atlantic. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Investor Rate"</I></FONT><FONT SIZE=2> for any Fixed Period for any Receivable Interest means to the extent Atlantic funds such Receivable Interest for such
Fixed Period by issuing commercial paper, the rate per annum (or if more than one rate, the weighted average of the rates) at which commercial paper notes of Atlantic having a term equal to such Fixed
Period and to be issued to fund such Receivable Interest may be sold by any placement agent or commercial paper dealer selected by the Agent on behalf of Atlantic, as agreed between each such agent or
dealer and the Agent and notice of which has been given by the Agent to the Seller; </FONT><FONT SIZE=2><I>provided </I></FONT><FONT SIZE=2>if the rate (or rates) as agreed between any such agent or
dealer and the Agent for any Fixed Period for any Receivable Interest is a discount rate (or rates), then such rate shall
be the rate (or if more than one rate, the weighted average of the rates) resulting from converting such discount rate (or rates) to an interest-bearing equivalent rate per annum. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Liquidation Day"</I></FONT><FONT SIZE=2> means, for any Receivable Interest, (i)&nbsp;each day during a Fixed Period for such Receivable Interest on which
the conditions set forth in Section&nbsp;3.02 are not satisfied, and (ii)&nbsp;each day which occurs on or after the Termination Date for such Receivable Interest. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Liquidation Fee"</I></FONT><FONT SIZE=2> means, for (i)&nbsp;any Fixed Period during which a Liquidation Day occurs or (ii)&nbsp;any Fixed Period for
which Yield is computed by reference to the Investor Rate or the Eurodollar Rate and a reduction of Capital is made for any reason on any day other than the last day of such Fixed Period, the amount
(the calculation of which shall be made by the Agent and reported in reasonable detail to the Seller), if any, by which (A)&nbsp;the additional Yield (calculated without taking into account any
Liquidation Fee or any shortened duration of such Fixed Period pursuant to clause&nbsp;(iv) of the definition thereof) which would have accrued during such Fixed Period on the reductions of Capital
of the Receivable Interest relating to such Fixed Period had such reductions remained as Capital, exceeds (B)&nbsp;the income, if any, received (or receivable, acting in a commercially reasonable
manner and, in the case of the Investors, subject to the guidelines of the Relevant Rating Agencies) by the Investors or the Banks which hold such Receivable Interest from the investment of the
proceeds of such reductions of Capital. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Lock-Box Account"</I></FONT><FONT SIZE=2> means a post office box administered by a Lock-Box Bank and the associated account
maintained at a Lock-Box Bank, in each case for the purpose of receiving Collections. </FONT></P>


<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Lock-Box Agreement"</I></FONT><FONT SIZE=2> means an agreement, in substantially the form of Annex E-1. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Lock-Box Bank"</I></FONT><FONT SIZE=2> means any of the banks holding one or more Lock-Box Accounts. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Loss Horizon Factor"</I></FONT><FONT SIZE=2> means, as of any date, a ratio (expressed as a percentage) computed by dividing (i)&nbsp;the aggregate
Outstanding Balance (in each case, at the time of creation) of all Originator Receivables created by the Originators during the three most recently ended Fiscal Months by (ii)&nbsp;the Net
Receivables Pool Balance as at the last day of the most recently ended Fiscal Month. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>9</FONT></P>

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<A NAME="page_kc2063_1_10"> </A>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Loss Percentage"</I></FONT><FONT SIZE=2> means, as of any date, the greater of (a)&nbsp;the product of (i)&nbsp;two multiplied by (ii)&nbsp;the Loss
Horizon Factor as of the last day of the most recently ended Fiscal Month multiplied by (iii)&nbsp;the highest of the Loss Ratios for the twelve most recently ended Fiscal Months and (b)&nbsp;12%. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Loss Ratio"</I></FONT><FONT SIZE=2> means, as of any date, the average of the ratios (each expressed as a percentage) for each of the three most recently
ended Fiscal Months computed for each such Fiscal Month by dividing (a)&nbsp;the sum of the aggregate Outstanding Balance of Originator Receivables which were 61-90&nbsp;days past due
as at the last day of such Fiscal Month plus (without duplication) the aggregate write-offs during such Fiscal Month, by (b)&nbsp;the aggregate Outstanding Balance (in each case, at the
time of creation) of Originator Receivables created during the fourth preceding Fiscal Month. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Loss Reserve"</I></FONT><FONT SIZE=2> means, for any Receivable Interest on any date, an amount equal to: </FONT></P>

<!-- User-specified TAGGED TABLE -->
<DIV ALIGN="CENTER"><TABLE WIDTH="21%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="15%"><FONT SIZE=2>LP</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="CENTER"><FONT SIZE=2>&times;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="29%" ALIGN="RIGHT"><FONT SIZE=2>NRPB</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="CENTER"><FONT SIZE=2>&times;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="17%" ALIGN="CENTER"><FONT SIZE=2>C</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="15%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="CENTER"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="29%" ALIGN="RIGHT"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="CENTER"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="17%" ALIGN="CENTER"><FONT SIZE=2>AC</FONT></TD>
</TR>
</TABLE></DIV>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2>where:
</FONT></P>

<!-- User-specified TAGGED TABLE -->
<DIV ALIGN="CENTER"><TABLE WIDTH="71%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="9%"><FONT SIZE=2><BR>
LP</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" ALIGN="CENTER"><FONT SIZE=2><BR>
=</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="84%"><FONT SIZE=2><BR>
the Loss Percentage on such date.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="9%"><FONT SIZE=2><BR>
NRPB</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" ALIGN="CENTER"><FONT SIZE=2><BR>
=</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="84%"><FONT SIZE=2><BR>
the Net Receivables Pool Balance on such date.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="9%"><FONT SIZE=2><BR>
C</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" ALIGN="CENTER"><FONT SIZE=2><BR>
=</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="84%"><FONT SIZE=2><BR>
the Capital of such Receivable Interest on such date.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="9%"><FONT SIZE=2><BR>
AC</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" ALIGN="CENTER"><FONT SIZE=2><BR>
=</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="84%"><FONT SIZE=2><BR>
the aggregate Capital of all Receivable Interests on such date.</FONT></TD>
</TR>
</TABLE></DIV>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Monthly Report"</I></FONT><FONT SIZE=2> means a report in substantially the form of Annex A hereto and containing such additional information as the Agent may
reasonably request from time to time, furnished by the Collection Agent to the Agent pursuant to Section&nbsp;6.02(g). </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Moody's"</I></FONT><FONT SIZE=2> means Moody's Investors Service,&nbsp;Inc. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Net Receivables Pool Balance"</I></FONT><FONT SIZE=2> means at any time the Outstanding Balance of Eligible Receivables then in the Receivables Pool reduced
by the sum of (i)&nbsp;the aggregate amount by which the Outstanding Balance of Eligible Receivables of each Obligor then in the Receivables Pool exceeds the product of (A)&nbsp;the Concentration
Limit for such Obligor multiplied by (B)&nbsp;the Outstanding Balance of Eligible Receivables then in the Receivables Pool, (ii)&nbsp;the aggregate amount of Collections on hand at such time for
payment on account of any Eligible Receivables, the Obligor of which has not been identified and (iii)&nbsp;the aggregate Outstanding Balance of all Eligible Receivables in respect of which any
credit memo issued by the Originator or the Seller is outstanding at such time to the extent deemed Collections have not been paid pursuant to Section&nbsp;2.04(e). </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Obligor"</I></FONT><FONT SIZE=2> means a Person obligated to make payments pursuant to a Contract. </FONT></P>


<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Origination Date"</I></FONT><FONT SIZE=2> means (i)&nbsp;the date of this Agreement, with respect to Receivables existing on such date and (ii)&nbsp;the
date on which such Receivable is created, with respect to all other Receivables. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Originator"</I></FONT><FONT SIZE=2> means Dal-Tile Corporation, a Pennsylvania corporation. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Originator Receivable"</I></FONT><FONT SIZE=2> means the indebtedness of any Obligor (other than an Obligor which is an Affiliate of Dal-Tile
International or the Originator) resulting from the provision or sale of merchandise or services by the Originator under a Contract, and includes the right to payment of any interest or finance
charges and other obligations of the Obligor with respect thereto; </FONT><FONT SIZE=2><I>provided, however, </I></FONT><FONT SIZE=2>that "Originator Receivable" does not include any such
indebtedness created by the Corporate Strategic Business Unit or the R&amp;M Strategic Business Unit of the Originator. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>10</FONT></P>

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<A NAME="page_kc2063_1_11"> </A>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Other Companies"</I></FONT><FONT SIZE=2> means Dal-Tile International, the Originator and all of their respective Subsidiaries except the Seller. </FONT></P>


<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Outstanding Balance"</I></FONT><FONT SIZE=2> of any Receivable or Originator Receivable, as the case may be, at any time means the then outstanding principal
balance thereof. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Parent Undertaking Agreement"</I></FONT><FONT SIZE=2> means the Parent Undertaking Agreement dated as of the date of this Agreement by each of
Dal-Tile International and Dal-Tile Group in favor of the Seller, the Agent, the Investors and the Banks, pursuant to which Dal-Tile International and
Dal-Tile Group, jointly and severally, guaranty the performance of the obligations of the Originator and the Collection Agent under the Transaction Documents, as the same may be amended,
modified or restated from time to time pursuant to the terms thereof. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"PCA"</I></FONT><FONT SIZE=2> means the Purchase and Contribution Agreement dated as of the date of this Agreement between the Originator, as seller, and the
Seller, as purchaser, as the same may be amended, modified or restated from time to time pursuant to the terms thereof and hereof. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Percentage"</I></FONT><FONT SIZE=2> of any Bank means, (a)&nbsp;with respect to Credit Lyonnais, the percentage set forth on the signature page to this
Agreement, or such amount as reduced by any Assignment and Acceptance entered into with an Eligible Assignee, or (b)&nbsp;with respect to a Bank that has entered into an Assignment and Acceptance,
the amount set forth therein as such Bank's Percentage, or such amount as reduced by an Assignment and Acceptance entered into between such Bank and an Eligible Assignee. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Performance Dilution Ratio"</I></FONT><FONT SIZE=2> means, as of any date, the ratio (expressed as a percentage) computed for the most recently ended Fiscal
Month by dividing (i)&nbsp;the aggregate amount of Originator Receivables which became Diluted Receivables during such Fiscal Month by (ii)&nbsp;the aggregate Outstanding Balance, as of the last
day of such Fiscal Month, of all Originator Receivables created during such Fiscal Month. </FONT></P>


<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Person"</I></FONT><FONT SIZE=2> means an individual, partnership, corporation (including a business trust), limited liability company, joint stock company,
trust, unincorporated association, joint venture or other entity, or a government or any political subdivision or agency thereof. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Pool Receivable"</I></FONT><FONT SIZE=2> means a Receivable in the Receivables Pool. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Pool Sale"</I></FONT><FONT SIZE=2> means a sale under a Contract which results in the creation of an Originator Receivable. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Purchase Limit"</I></FONT><FONT SIZE=2> means $75,000,000, as such amount may be reduced pursuant to Section&nbsp;2.01(b). References to the unused portion
of the Purchase Limit shall mean, at any time, the Purchase Limit, as then reduced pursuant to Section&nbsp;2.01(b), minus the then outstanding Capital of Receivable Interests under this Agreement. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Receivable"</I></FONT><FONT SIZE=2> means any Originator Receivable which has been acquired by the Seller from the Originator by purchase or by capital
contribution pursuant to the PCA. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Receivable Interest"</I></FONT><FONT SIZE=2> means, at any time, an undivided percentage ownership interest in (i)&nbsp;all then outstanding Pool
Receivables arising prior to the time of the most recent computation or recomputation of such undivided percentage interest pursuant to Section&nbsp;2.03, (ii)&nbsp;all Related Security with
respect to such Pool Receivables, and (iii)&nbsp;all Collections with respect to, and other proceeds of, such Pool Receivables. Such undivided percentage interest shall be computed as </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><U>C&nbsp;+&nbsp;YFR&nbsp;+&nbsp;LR&nbsp;+&nbsp;DR</U><BR>
NRPB </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>11</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=11,SEQ=15,EFW="2062020",CP="DAL-TILE INTERNATIONAL INC.",DN="2",CHK=946995,FOLIO='11',FILE='DISK022:[01DFW3.01DFW2063]KC2063A.;28',USER='JBAKER',CD='29-OCT-2001;15:14' -->
<A NAME="page_kc2063_1_12"> </A>

<P><FONT SIZE=2>
where: </FONT></P>

<!-- User-specified TAGGED TABLE -->
<DIV ALIGN="CENTER"><TABLE WIDTH="71%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="9%"><FONT SIZE=2>C</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" ALIGN="RIGHT"><FONT SIZE=2>=</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="84%"><FONT SIZE=2>the Capital of such Receivable Interest at the time of computation.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="9%"><FONT SIZE=2><BR>
YFR</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" ALIGN="RIGHT"><FONT SIZE=2><BR>
=</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="84%"><FONT SIZE=2><BR>
the Yield and Fee Reserve of such Receivable Interest at the time of computation.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="9%"><FONT SIZE=2><BR>
LR</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" ALIGN="RIGHT"><FONT SIZE=2><BR>
=</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="84%"><FONT SIZE=2><BR>
the Loss Reserve of such Receivable Interest at the time of computation.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="9%"><FONT SIZE=2><BR>
DR</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" ALIGN="RIGHT"><FONT SIZE=2><BR>
=</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="84%"><FONT SIZE=2><BR>
the Dilution Reserve of such Receivable Interest at the time of computation.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="9%"><FONT SIZE=2><BR>
NRPB</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" ALIGN="RIGHT"><FONT SIZE=2><BR>
=</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="84%"><FONT SIZE=2><BR>
the Net Receivables Pool Balance at the time of computation.</FONT></TD>
</TR>
</TABLE></DIV>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2>Each
Receivable Interest shall be determined from time to time pursuant to the provisions of Section&nbsp;2.03. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Receivables Pool"</I></FONT><FONT SIZE=2> means at any time the aggregation of all then outstanding Receivables. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Related Security"</I></FONT><FONT SIZE=2> means with respect to any Receivable </FONT></P>

<UL>
<DL compact>
<DT><FONT SIZE=2>(i)</FONT></DT><DD><FONT SIZE=2>all
of the Seller's interest in any merchandise (including returned merchandise) the sale of which gives rise to such Receivable;
<BR><BR></FONT></DD><DT><FONT SIZE=2>(ii)</FONT></DT><DD><FONT SIZE=2>all
security interests or liens and property subject thereto from time to time purporting to secure payment of such Receivable, whether pursuant to
the Contract related to such Receivable or otherwise, together with all financing statements signed by an Obligor describing any collateral securing such Receivable;
<BR><BR></FONT></DD><DT><FONT SIZE=2>(iii)</FONT></DT><DD><FONT SIZE=2>all
guaranties, insurance and other agreements or arrangements of whatever character from time to time supporting or securing payment of such
Receivable whether pursuant to the Contract related to such Receivable or otherwise; and
<BR><BR></FONT></DD><DT><FONT SIZE=2>(iv)</FONT></DT><DD><FONT SIZE=2>the
Contract and all other books, records and other information (including, without limitation, computer programs, tapes, discs, punch cards, data
processing software and similar property and rights) to the extent relating to such Receivable and the related Obligor. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Relevant Rating Agency"</I></FONT><FONT SIZE=2> means, at any time, a statistical rating agency that rates the commercial paper of any Investor at the request
of such Investor at such time. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"S&amp;P"</I></FONT><FONT SIZE=2> means Standard and Poors, a division of the McGraw-Hill Companies,&nbsp;Inc. </FONT></P>


<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"SEC"</I></FONT><FONT SIZE=2> means the Securities and Exchange Commission. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Settlement Date"</I></FONT><FONT SIZE=2> for any Receivable Interest means the last day of each Fixed Period for such Receivable Interest. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Store Account"</I></FONT><FONT SIZE=2> means a bank account maintained by the Originator for the purpose of receiving Collections, funds constituting cash
sales of merchandise and other funds of any DTC Store. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Store Account Bank"</I></FONT><FONT SIZE=2> means the bank holding any Store Account. </FONT></P>


<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Subsidiary"</I></FONT><FONT SIZE=2> of a specified Person means any corporation or other entity of which securities having ordinary voting power to elect a
majority of the board of directors or other persons performing similar functions are at the time directly or indirectly owned by such Person, or one or more of such Person's Subsidiaries, or by such
Person and one or more of such Person's Subsidiaries. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Tangible Net Worth"</I></FONT><FONT SIZE=2> means at any time the excess of (i)&nbsp;the sum of (a)&nbsp;the product of (x)&nbsp;100% minus the Discount
(as such term is defined in the PCA) multiplied by (y)&nbsp;the Outstanding Balance of all Receivables other than Defaulted Receivables plus (b)&nbsp;cash and cash equivalents of the Seller plus </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>12</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=12,SEQ=16,EFW="2062020",CP="DAL-TILE INTERNATIONAL INC.",DN="2",CHK=382828,FOLIO='12',FILE='DISK022:[01DFW3.01DFW2063]KC2063A.;28',USER='JBAKER',CD='29-OCT-2001;15:14' -->
<A NAME="page_kc2063_1_13"> </A>

<P><FONT SIZE=2>
(c)&nbsp;the outstanding principal amount of Purchaser Loans (as such term is defined in the PCA), minus (ii)&nbsp;the sum of (a)&nbsp;Capital plus (b)&nbsp;the Deferred Purchase Price. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Termination Date"</I></FONT><FONT SIZE=2> for any Receivable Interest means (i)&nbsp;in the case of a Receivable Interest owned by an Investor, the earlier
of (a)&nbsp;the Business Day which the Seller or the Agent so designates by notice to the other at least one Business Day in advance for such Receivable Interest and (b)&nbsp;the Facility
Termination Date and (ii)&nbsp;in the case of a Receivable Interest owned by a Bank, the earlier of (a)&nbsp;the Business Day which the Seller so designates by notice to the Agent at least one
Business Day in advance for such Receivable Interest and (b)&nbsp;the Commitment Termination Date. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Transaction Document"</I></FONT><FONT SIZE=2> means any of this Agreement, the PCA, the Lock-Box Agreements, the Account Agreement, the Fee
Agreement, the Bank Direction Agreements, the Parent Undertaking Agreement and all other agreements and documents designated by the mutual agreement of the parties hereto as "Transaction Documents"
from time to time, and all amendments and supplements hereto or thereto. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Transferee"</I></FONT><FONT SIZE=2> means any Person to whom any Investor or Bank has transferred all or any portion of its rights and obligations under this
Agreement by way of an assignment or participation as described in Section&nbsp;10.03. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"UCC"</I></FONT><FONT SIZE=2> means the Uniform Commercial Code as from time to time in effect in the specified jurisdiction. </FONT></P>


<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Weekly Report"</I></FONT><FONT SIZE=2> means a report in substantially the form of Annex B hereto and containing such additional information as the Agent may
reasonably request from time to time, furnished by the Collection Agent to the Agent pursuant to Section&nbsp;6.02(h). </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Yield"</I></FONT><FONT SIZE=2> means: </FONT></P>

<UL>
<DL compact>
<DT><FONT SIZE=2>(i)</FONT></DT><DD><FONT SIZE=2>for
each Receivable Interest for any Fixed Period to the extent Atlantic will be funding such Receivable Interest through the issuance of commercial
paper notes, </FONT></DD></DL>
</UL>
<BR>

<!-- User-specified TAGGED TABLE -->
<DIV ALIGN="CENTER"><TABLE WIDTH="24%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="8%"><FONT SIZE=2>IR</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="CENTER"><FONT SIZE=2>&times;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="CENTER"><FONT SIZE=2>C</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="CENTER"><FONT SIZE=2>&times;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="21%" ALIGN="CENTER"><FONT SIZE=2>ED</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="CENTER"><FONT SIZE=2>+</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="CENTER"><FONT SIZE=2>LF</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="8%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="CENTER"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="CENTER"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="CENTER"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="21%" ALIGN="CENTER"><HR NOSHADE><FONT SIZE=2> 360</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE></DIV>
<!-- end of user-specified TAGGED TABLE -->

<UL>
<DL compact>
<DT><FONT SIZE=2>(ii)</FONT></DT><DD><FONT SIZE=2>for
each Receivable Interest for any Fixed Period to the extent (x)&nbsp;Atlantic will not be funding such Receivable Interest through the
issuance of commercial paper notes, or (y)&nbsp;the Banks will be funding such Receivable Interest, </FONT></DD></DL>
</UL>
<BR>

<!-- User-specified TAGGED TABLE -->
<DIV ALIGN="CENTER"><TABLE WIDTH="25%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="15%"><FONT SIZE=2>AR</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="CENTER"><FONT SIZE=2>&times;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="CENTER"><FONT SIZE=2>C</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="CENTER"><FONT SIZE=2>&times;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="17%" ALIGN="CENTER"><FONT SIZE=2>ED</FONT><HR NOSHADE></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="CENTER"><FONT SIZE=2>+</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="CENTER"><FONT SIZE=2>LF</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="15%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="CENTER"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="CENTER"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="CENTER"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="17%" ALIGN="CENTER"><FONT SIZE=2>360</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE></DIV>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2>where:
</FONT></P>

<!-- User-specified TAGGED TABLE -->
<DIV ALIGN="CENTER"><TABLE WIDTH="71%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="5%"><FONT SIZE=2>AR</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" ALIGN="CENTER"><FONT SIZE=2>=</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2>the Assignee Rate for such Receivable Interest for such Fixed Period</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="5%"><FONT SIZE=2><BR>
C</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" ALIGN="CENTER"><FONT SIZE=2><BR>
=</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2><BR>
the Capital of such Receivable Interest during such Fixed Period</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="5%"><FONT SIZE=2><BR>
IR</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" ALIGN="CENTER"><FONT SIZE=2><BR>
=</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2><BR>
the Investor Rate for such Receivable Interest for such Fixed Period</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="5%"><FONT SIZE=2><BR>
ED</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" ALIGN="CENTER"><FONT SIZE=2><BR>
=</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2><BR>
the actual number of days elapsed during such Fixed Period</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="5%"><FONT SIZE=2><BR>
LF</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" ALIGN="CENTER"><FONT SIZE=2><BR>
=</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2><BR>
the Liquidation Fee, if any, for such Receivable Interest for such Fixed Period</FONT></TD>
</TR>
</TABLE></DIV>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2><I>provided </I></FONT><FONT SIZE=2>that no provision of this Agreement shall require the payment or permit the collection of Yield in excess of the maximum permitted by
applicable law; and </FONT><FONT SIZE=2><I>provided further</I></FONT><FONT SIZE=2> that Yield for any </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>13</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=13,SEQ=17,EFW="2062020",CP="DAL-TILE INTERNATIONAL INC.",DN="2",CHK=960098,FOLIO='13',FILE='DISK022:[01DFW3.01DFW2063]KC2063A.;28',USER='JBAKER',CD='29-OCT-2001;15:14' -->
<A NAME="page_kc2063_1_14"> </A>

<P><FONT SIZE=2>
Receivable Interest shall not be considered paid by any distribution to the extent that at any time all or a portion of such distribution is rescinded or must otherwise be returned for any reason. </FONT></P>


<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Yield and Fee Reserve"</I></FONT><FONT SIZE=2> means, for any Receivable Interest on any date, an amount equal to </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>(C&nbsp;&times;&nbsp;YFRP)&nbsp;+&nbsp;AUYF
</FONT></P>

<P><FONT SIZE=2>where:
</FONT></P>

<!-- User-specified TAGGED TABLE -->
<DIV ALIGN="CENTER"><TABLE WIDTH="71%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="9%"><FONT SIZE=2>C</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" ALIGN="CENTER"><FONT SIZE=2>=</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="83%"><FONT SIZE=2>the Capital of such Receivable Interest at the close of business of the Collection Agent on such date.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="9%"><FONT SIZE=2><BR>
YFRP</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" ALIGN="CENTER"><FONT SIZE=2><BR>
=</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="83%"><FONT SIZE=2><BR>
the Yield and Fee Reserve Percentage on such date.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="9%"><FONT SIZE=2><BR>
AUYF</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" ALIGN="CENTER"><FONT SIZE=2><BR>
=</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="83%"><FONT SIZE=2><BR>
accrued and unpaid Yield, Collection Agent Fee and Fees on such date, in each case for such Receivable Interest.</FONT></TD>
</TR>
</TABLE></DIV>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;"Yield and Fee Reserve Percentage"</I></FONT><FONT SIZE=2> means, on any date, a percentage equal to </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><U>&nbsp;(AER&nbsp;+&nbsp;CAF)&nbsp;&times;&nbsp;2&nbsp;&times;&nbsp;DSO</U><BR>
360 </FONT></P>

<P><FONT SIZE=2>where:
</FONT></P>

<!-- User-specified TAGGED TABLE -->
<DIV ALIGN="CENTER"><TABLE WIDTH="71%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="7%"><FONT SIZE=2>AER</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" ALIGN="CENTER"><FONT SIZE=2>=</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2>the one-month Adjusted Eurodollar Rate in effect on such date.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="7%"><FONT SIZE=2><BR>
CAF</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" ALIGN="CENTER"><FONT SIZE=2><BR>
=</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2><BR>
the percentage per annum used in the calculation of the Collection Agent Fee in effect on such date.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="7%"><FONT SIZE=2><BR>
DSO</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" ALIGN="CENTER"><FONT SIZE=2><BR>
=</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2><BR>
the Days Sales Outstanding on such date.</FONT></TD>
</TR>
</TABLE></DIV>
<!-- end of user-specified TAGGED TABLE -->

<P ALIGN="CENTER"><FONT SIZE=2>14</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=14,SEQ=18,EFW="2062020",CP="DAL-TILE INTERNATIONAL INC.",DN="2",CHK=323525,FOLIO='14',FILE='DISK022:[01DFW3.01DFW2063]KC2063A.;28',USER='JBAKER',CD='29-OCT-2001;15:14' -->
<!-- Generated by Merrill Corporation (www.merrillcorp.com) -->

<P><FONT SIZE=2><A
NAME="page_kd2063_1_15"> </A> </FONT></P>

<!-- TOC_END -->

<P><FONT SIZE=2><A
NAME="kd2063_section_1.02._other_terms."> </A>
<A NAME="toc_kd2063_1"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 1.02.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Other Terms. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;All accounting terms not specifically defined herein shall be construed in accordance with generally accepted accounting
principles. All terms used in
Article&nbsp;9 of the UCC in the State of New York, and not specifically defined herein, are used herein as defined in such Article&nbsp;9. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kd2063_article_ii_amounts_and_terms_of_the_purchases"> </A>
<A NAME="toc_kd2063_2"> </A>
<BR></FONT><FONT SIZE=2><B>ARTICLE II    <BR>    <BR>    AMOUNTS AND TERMS OF THE PURCHASES    <BR>  </B></FONT></P>

<P><FONT SIZE=2><A
NAME="kd2063_section_2.01._purchase_facility."> </A>
<A NAME="toc_kd2063_3"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.01.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Purchase Facility. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a)&nbsp;On the terms and conditions hereinafter set forth, Atlantic may, in its sole discretion, and the Banks
shall, ratably in accordance with their
respective Bank Commitments, purchase Receivable Interests from the Seller from time to time during the period from the date hereof to the Facility Termination Date (in the case of Atlantic) and to
the Commitment Termination Date (in the case of the Banks). Under no circumstances shall Atlantic make any such purchase, or the Banks be obligated to make any such purchase, if after giving effect to
such purchase the aggregate outstanding Capital of Receivable Interests (after giving effect to any reduction of Capital of Receivable Interests held by any Investor to be made on the date of such
purchase from the proceeds of any purchases by the Banks) would exceed the Purchase Limit. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The
Seller may at any time, upon at least 30&nbsp;days' notice to the Agent, terminate the facility provided for in this Agreement in whole or, from time to time,
reduce in part the unused portion of the Purchase Limit; </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that each partial reduction shall be in the amount of at least $10,000,000 or an
integral multiple of $1,000,000 in excess thereof. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Until
the Agent gives the Seller the notice provided in Section&nbsp;3.02(c)(iii), the Agent, on behalf of the Investors which own Receivable Interests, shall
have the Collections attributable to such Receivable Interests automatically reinvested pursuant to Section&nbsp;2.04 in additional undivided percentage interests in the Pool Receivables by making
an appropriate readjustment of such Receivable Interests. The Agent, on behalf of the Banks which own Receivable Interests, shall have the Collections attributable to such Receivable Interests
automatically reinvested pursuant to Section&nbsp;2.04 in additional undivided percentage interests in the Pool Receivables by making an appropriate readjustment of such Receivable Interests. </FONT></P>

<P><FONT SIZE=2><A
NAME="kd2063_section_2.02._making_purchases."> </A>
<A NAME="toc_kd2063_4"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.02.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Making Purchases. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a)&nbsp;Each purchase by Atlantic or the Banks shall be made on at least three Business Days' notice from the Seller
to the Agent. Each such notice of a
purchase shall specify (i)&nbsp;the amount requested to be paid to the Seller (such amount, which shall not be less than $1,000,000, being referred to herein as the initial "Capital" of the
Receivable Interest then being purchased), (ii)&nbsp;the date of such purchase (which shall be a Business Day), and (iii)&nbsp;the requested duration of the initial Fixed Period for such
Receivable Interest. The Agent shall promptly thereafter notify the Seller whether Atlantic has determined to make a purchase and, if so, whether all of the terms specified by the Seller are
acceptable to Atlantic. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;If
Atlantic has determined not to make a proposed purchase, the Agent shall promptly send notice of the proposed purchase to all of the Banks concurrently by telecopier, telex or
cable specifying the date of such purchase, each Bank's Percentage multiplied by the aggregate amount of Capital of Receivable Interest being purchased, whether the Yield for the Fixed Period for such
Receivable Interest is calculated based on the Eurodollar Rate (which may be selected by the Seller only if the notice referred to in the first sentence of this Section is given at least three
Business Days prior to the purchase date) or the Alternate Base Rate, and the duration of the Fixed Period for such Receivable Interest (which shall be one day if the Seller has not selected another
period). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;On
the date of each such purchase of a Receivable Interest, Atlantic or the Banks, as the case may be, shall, upon satisfaction of the applicable conditions set
forth in Article&nbsp;III, make available to the Seller in same day funds an amount equal to the initial Capital of such Receivable Interest, to the </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>15</FONT></P>

<HR NOSHADE>
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<A NAME="page_kd2063_1_16"> </A>

<P><FONT SIZE=2>
Seller's account no.&nbsp;3751842080, at Bank of America, N.A., 901 Main Street, P.O.&nbsp;Box 832409, Dallas, Texas 75202, ABA No.&nbsp;111000012 or such other account of the Seller as the
Seller may hereafter direct the Agent in writing; </FONT><FONT SIZE=2><I>provided, however</I></FONT><FONT SIZE=2>, if such purchase is being made by the Banks following the designation by the Agent
of a Termination Date for a Receivable Interest owned by an Investor pursuant to clause&nbsp;(i)(a) of the definition of Termination Date and any Capital of such Receivable Interest is outstanding
on such date of purchase, the Seller hereby directs the Banks to pay the proceeds of such purchase (to the extent of the outstanding Capital and accrued Yield on such Receivable Interest of the
Investor) to the Agent's Account, for application to the reduction of the outstanding Capital and accrued Yield on such Receivable Interest of the Investor. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Effective
on the date of each purchase pursuant to this Section&nbsp;2.02 and each reinvestment pursuant to Section&nbsp;2.04, the Seller hereby sells and
assigns to the Agent, for the benefit of the parties making such purchase, an undivided percentage ownership interest, to the extent of the Receivable Interest then being purchased, in each Pool
Receivable then existing and in the Related Security and Collections with respect thereto. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Notwithstanding
the foregoing, a Bank shall not be obligated to make purchases under this Section&nbsp;2.02 at any time in an amount which would exceed such
Bank's Bank Commitment less such Bank's ratable share of the aggregate outstanding Capital held by Atlantic (whether or not any portion thereof has been assigned by Atlantic pursuant to the Asset
Purchase Agreement), after giving effect to any reductions of the Capital held by Atlantic to be made on the date of such purchase from the proceeds of purchases by the Banks. Each Bank's obligation
shall be several, such that the failure of any Bank to make available to the Seller any funds in connection with any purchase shall not relieve any other Bank of its obligation, if any, hereunder to
make funds available on the date of such purchase, but no Bank shall be responsible for the failure of any other Bank to make funds available in connection with any purchase. </FONT></P>


<P><FONT SIZE=2><A
NAME="kd2063_section_2.03._receivable_interest_computation."> </A>
<A NAME="toc_kd2063_5"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.03.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Receivable Interest Computation. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Each Receivable Interest shall be initially computed on its date of purchase. Thereafter until the
Termination Date for such Receivable Interest, such
Receivable Interest shall be automatically recomputed (or deemed to be recomputed) on each day other than a Liquidation Day. Any Receivable Interest, as computed (or deemed recomputed) as of the day
immediately preceding the Termination Date for such Receivable Interest, shall thereafter remain constant; </FONT><FONT SIZE=2><I>provided, however,</I></FONT><FONT SIZE=2> that from and after the
date on which the Termination Date shall have occurred for all Receivable Interests and until each Receivable Interest becomes zero in accordance with the next sentence, each Receivable Interest shall
be calculated as the percentage equivalent of a fraction the numerator of which is the percentage representing such Receivable Interest immediately prior to such date and the denominator of which is
the sum of the percentages representing all Receivable Interests which were outstanding immediately prior to such date. Each Receivable Interest shall become zero when Capital thereof and Yield
thereon shall have been paid in full, and all Fees and other amounts owed by the Seller hereunder to the Investors, the Banks or the Agent are paid and the Collection Agent shall have received the
accrued Collection Agent Fee thereon. </FONT></P>

<P><FONT SIZE=2><A
NAME="kd2063_section_2.04._settlement_procedures."> </A>
<A NAME="toc_kd2063_6"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.04.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Settlement Procedures. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a)&nbsp;Collection of the Pool Receivables shall be administered by a Collection Agent, in accordance with the
terms of Article&nbsp;VI of this
Agreement. The Seller shall provide to the Collection Agent (if other than the Seller) on a timely basis all information needed for such administration, including notice of the occurrence of any
Liquidation Day and current computations of each Receivable Interest. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The
Collection Agent shall, on each day on which Collections of Pool Receivables are received by it: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;with
respect to each Receivable Interest, set aside on its books and hold in trust (and, at the request of the Agent on any Liquidation Day with respect to such
Receivable Interest (but not prior to such request), segregate into an account acceptable to the Agent) for the Investors or the </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>16</FONT></P>

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<UL>

<P><FONT SIZE=2>
Banks that hold such Receivable Interest, out of the percentage of such Collections represented by such Receivable Interest, an amount equal to the Yield, Fees and Collection Agent Fee accrued through
such day for such Receivable Interest and not previously set aside; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;with
respect to each Receivable Interest, if such day is not a Liquidation Day for such Receivable Interest, reinvest with the Seller on behalf of the Investors or
the Banks that hold such Receivable Interest the percentage of such Collections represented by such Receivable Interest, to the extent representing a return of Capital, by recomputation of such
Receivable Interest pursuant to Section&nbsp;2.03; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;if
such day is a Liquidation Day for any one or more Receivable Interests, set aside on its books and hold in trust (and, at the request of the Agent, segregate)
for the Investors or the Banks that hold such Receivable Interests (x)&nbsp;if such day is a Liquidation Day for less than all of the Receivable Interests, the percentage of such Collections
represented by such Receivable Interests, and (y)&nbsp;if such day is a Liquidation Day for all of the Receivable Interests, all of the remaining Collections (but not in excess of the Capital of
such Receivable Interests); </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that if amounts are set aside and held in trust on any Liquidation Day occurring prior to the Termination Date, and
thereafter prior to the Settlement Date for such Fixed Period the conditions set forth in Section&nbsp;3.02 are satisfied or waived by the Agent, such previously set aside amounts shall, to the
extent representing a return of Capital, be reinvested in accordance with the preceding subsection (ii)&nbsp;on the day of such subsequent satisfaction or waiver of conditions; and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;during
such times as amounts are required to be reinvested in accordance with the foregoing subsection (ii)&nbsp;or the proviso to subsection (iii), release to
the Seller for its own account any Collections in excess of both such amounts and of the amounts that are required to be set aside pursuant to subsection (i)&nbsp;above. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The
Collection Agent shall deposit into the Agent's Account, on the Settlement Date for each Receivable Interest, Collections held for the Investors or the Banks
that relate to such Receivable Interest pursuant to Section&nbsp;2.04(b). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Upon
receipt of funds deposited into the Agent's Account, the Agent shall distribute them as follows: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;if
such distribution occurs on a day that is not a Liquidation Day, first to the Investors or the Banks that hold the relevant Receivable Interest and to the Agent
in payment in full of all accrued Yield and Fees and then to the Collection Agent in payment in full of all accrued Collection Agent Fee. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;if
such distribution occurs on a Liquidation Day, first to the Investors or the Banks that hold the relevant Receivable Interest and to the Agent in payment in
full of all accrued Yield and Fees, second to such Investors or Banks in reduction to zero of all Capital, third to such Investors, Banks or the
Agent in payment of any other amounts owed by the Seller hereunder, and fourth to the Collection Agent in payment in full of all accrued Collection Agent Fee. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;After
the Capital, Yield, Fees and Collection Agent Fee with respect to a Receivable Interest, and any other amounts payable by the Seller to the Investors, the Banks or the Agent
hereunder, have been paid in full and any contingent obligations of the Agent under any Account Agreement, Lock-Box Agreement or Bank Direction Agreement have been released, all additional
Collections with respect to such Receivable Interest shall be paid to the Seller for its own account. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;For
the purposes of this Section&nbsp;2.04: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;if
on any day any Pool Receivable becomes (in whole or in part) a Diluted Receivable, the Seller shall be deemed to have received on such day a Collection of such
Pool Receivable in the amount of such Diluted Receivable; </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>17</FONT></P>

<HR NOSHADE>
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<UL>

<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;if on any day any of the representations or warranties contained in Section&nbsp;4.01(h) is no longer true with respect to any Pool Receivable, the Seller shall
be deemed to have received on such day a Collection of such Pool Receivable in full; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;except
as provided in subsection (i)&nbsp;or (ii)&nbsp;of this Section&nbsp;2.04(e), or as otherwise required by applicable law or the relevant Contract,
all Collections received from an Obligor of any Receivables shall be applied to the Receivables of such Obligor in the order of the age of such Receivables, starting with the oldest such Receivable,
unless such Obligor designates its payment for application to specific Receivables; and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;if
and to the extent the Agent, the Investors or the Banks shall be required for any reason to pay over to an Obligor any amount received on its behalf hereunder,
such amount shall be deemed not to have been so received but rather to have been retained by the Seller and, accordingly, the Agent, the Investors or the Banks, as the case may be, shall have a claim
against the Seller for such amount, payable when and to the extent that any distribution from or on behalf of such Obligor is made in respect thereof. </FONT></P>

</UL>

<P><FONT SIZE=2><A
NAME="kd2063_section_2.05._fees."> </A>
<A NAME="toc_kd2063_7"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.05.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Fees. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a)&nbsp;Each Investor and Bank shall pay to the Collection Agent a fee (the "</FONT><FONT SIZE=2><I>Collection Agent
Fee</I></FONT><FONT SIZE=2>") of
0.50% per annum on the average daily Capital of each Receivable Interest owned by such Investor or
Bank, from the date of purchase of such Receivable Interest until the later of the Termination Date for such Receivable Interest or the date on which such Capital is reduced to zero, payable on the
Settlement Date for such Receivable Interest. Upon three Business Days' notice to the Agent, the Collection Agent (if not the Originator, the Seller or its designee or an Affiliate of the Seller) may
elect to be paid, as such fee, another percentage per annum on the average daily Capital of such Receivable Interest, but in no event in excess for all Receivable Interests relating to the Receivables
Pool of the lesser of (i)&nbsp;110% of the reasonable costs and expenses of the Collection Agent in administering and collecting the Receivables in the Receivables Pool and (ii)&nbsp;1.00% per
annum on the average daily Capital of all outstanding Receivable Interests. The Collection Agent Fee shall be payable only from Collections pursuant to, and subject to the priority of payment set
forth in, Section&nbsp;2.04. So long as the Originator is acting as the Collection Agent hereunder, amounts paid as the Collection Agent Fee pursuant to this Section&nbsp;2.05(a) shall reduce, on
a dollar-for-dollar basis, the obligation of the Seller to pay the "Collection Agent Fee" pursuant to Section&nbsp;6.03 of the PCA, provided that such obligation of the
Seller shall in no event be reduced below zero. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The
Seller shall pay to the Agent certain fees (collectively, the "</FONT><FONT SIZE=2><I>Fees</I></FONT><FONT SIZE=2>") in the amounts and on the dates set forth
in a separate fee agreement of even date between the Seller and the Agent, as the same may be amended or restated from time to time (the "</FONT><FONT SIZE=2><I>Fee
Agreement</I></FONT><FONT SIZE=2>"). </FONT></P>

<P><FONT SIZE=2><A
NAME="kd2063_section_2.06._payments_and_computations,_etc."> </A>
<A NAME="toc_kd2063_8"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.06.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Payments and Computations, Etc. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a)&nbsp;All amounts to be paid or deposited by the Seller or the Collection Agent hereunder shall be
paid or deposited no later than 12:00 noon (New York
City time) on the day when due in same day funds to the Agent's Account. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Each
of the Seller and the Collection Agent shall, to the extent permitted by law, pay interest on any amount not paid or deposited by it when due hereunder, at an
interest rate per annum equal to 2% per annum above the Alternate Base Rate, payable on demand. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;All
computations of interest under subsection (b)&nbsp;above and all computations of Yield, fees, and other amounts hereunder shall be made on the basis of a year
of 360&nbsp;days for the actual number of days (including the first but excluding the last day) elapsed. Whenever any payment or deposit to be made hereunder shall be due on a day other than a
Business Day, such payment or deposit shall be made on the next succeeding Business Day and such extension of time shall be included in the computation of such payment or deposit. </FONT></P>

<P><FONT SIZE=2><A
NAME="kd2063_section_2.07._dividing___kd202019"> </A>
<A NAME="toc_kd2063_9"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.07.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Dividing or Combining Receivable Interests. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Either the Seller or the Agent may, upon notice to the other party received at least three
Business Days prior to the last day of any Fixed </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>18</FONT></P>

<HR NOSHADE>
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<A NAME="page_kd2063_1_19"> </A>

<P><FONT SIZE=2>
Period in the case of the Seller giving notice, or up to the last day of such Fixed Period in the case of the Agent giving notice, either (i)&nbsp;divide any Receivable Interest into two or more
Receivable Interests having aggregate Capital equal to the Capital of such divided Receivable Interest, or (ii)&nbsp;combine any two or more Receivable Interests originating on such last day or
having Fixed Periods ending on such last day into a single Receivable Interest having Capital equal to the aggregate of the Capital of such Receivable Interests; </FONT><FONT SIZE=2><I>provided,
however,</I></FONT><FONT SIZE=2> that no Receivable Interest owned by Atlantic may be combined with a Receivable Interest owned by any Bank. </FONT></P>

<P><FONT SIZE=2><A
NAME="kd2063_section_2.08._increased_costs."> </A>
<A NAME="toc_kd2063_10"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.08.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Increased Costs. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a)&nbsp;If Credit Lyonnais, any Investor, any Bank, any entity which enters into a commitment to purchase Receivable
Interests or interests therein, or any
of their respective Affiliates (each, an "</FONT><FONT SIZE=2><I>Affected Person</I></FONT><FONT SIZE=2>") determines that compliance with any law or regulation or any guideline or request from any
central bank or other governmental authority (whether or not having the force of law) affects or would affect the amount of the capital required or expected to be maintained by such Affected Person
and such Affected Person determines that the amount of such capital is increased by or based upon the existence of any commitment to make purchases of or otherwise to maintain the investment in Pool
Receivables or interests therein related to this Agreement or to the funding thereof and other commitments of the same type, then, upon demand by such Affected Person (with a copy to the Agent), the
Seller shall immediately pay to the Agent for the account of such Affected Person (as a third-party beneficiary), from time to time as specified by such Affected Person, additional amounts sufficient
to compensate such Affected Person in the light of such circumstances, to the extent that such Affected Person reasonably determines such increase in capital to be allocable to the existence of any of
such commitments. A certificate as to such amounts (which shall include calculations in reasonable detail) submitted to the Seller and the Agent by such Affected Person shall be conclusive and binding
for all purposes, absent manifest error. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;If,
due to either (i)&nbsp;the introduction of or any change (other than any change by way of imposition or increase of reserve requirements referred to in
Section&nbsp;2.09) in or in the interpretation of any law or regulation or (ii)&nbsp;compliance with any guideline or request from any central bank or other governmental authority (whether or not
having the force of law), there shall be any increase in the cost to any Investor or Bank of agreeing to purchase or purchasing, or maintaining the ownership of, Receivable Interests in respect of
which Yield is computed by reference to the Eurodollar Rate, then, upon demand by such Investor or Bank (with a copy to the Agent), the Seller shall immediately pay to the Agent, for the account of
such Investor or Bank (as a third-party beneficiary), from time to time as specified by such Investor or Bank, additional amounts sufficient to compensate such Investor or Bank for such increased
costs. A certificate as to such amounts submitted to the Seller and the Agent by such Investor or Bank shall be conclusive and binding for all purposes, absent manifest error. </FONT></P>

<P><FONT SIZE=2><A
NAME="kd2063_section_2.09._additional_yield__sec02909"> </A>
<A NAME="toc_kd2063_11"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.09.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Additional Yield on Receivable Interests Bearing a Eurodollar Rate. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The Seller shall pay to any Investor or Bank, so long as such
Investor or Bank shall be required under regulations of the Board of Governors of the Federal
Reserve System to maintain reserves with respect to liabilities or assets consisting of or including Eurocurrency Liabilities, additional Yield on the unpaid Capital of each Receivable Interest of
such Investor or Bank during each Fixed Period in respect of which Yield is computed by reference to the Eurodollar Rate, for such Fixed Period, at a rate per annum equal at all times during such
Fixed Period to the remainder obtained by subtracting (i)&nbsp;the Eurodollar Rate for such Fixed Period from (ii)&nbsp;the rate obtained by dividing such Eurodollar Rate referred to in
clause&nbsp;(i) above by that percentage equal to 100% minus the Eurodollar Rate Reserve Percentage of such Investor or Bank for such Fixed Period, payable on each date on which Yield is
payable on such Receivable Interest. Such additional Yield shall be determined by such Investor or Bank and notice thereof given to the Seller through the Agent within 30&nbsp;days after any Yield
payment is made with respect to which such additional Yield is requested. A certificate as to such additional Yield submitted to the Seller and the Agent by such Investor or Bank shall be conclusive
and binding for all purposes, absent manifest error. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>19</FONT></P>

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<P><FONT SIZE=2><A
NAME="kd2063_section_2.10._taxes."> </A>
<A NAME="toc_kd2063_12"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.10.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Taxes. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a)&nbsp;Any and all payments and deposits required to be made hereunder or under any other Transaction Document by the
Collection Agent or the Seller shall
be made free and clear of and without deduction for any and all present or future taxes, levies, imposts, deductions, charges or withholdings, and all liabilities with respect thereto, </FONT> <FONT SIZE=2><I>excluding</I></FONT><FONT SIZE=2>
(x)&nbsp;net income taxes, franchise taxes, branch profits taxes and any other taxes imposed on an Affected Person as a result of a present
or former connection between such Affected Person and the jurisdiction of the governmental authority imposing such tax or any political subdivision or taxing authority thereof or therein other than a
connection arising solely from the transactions contemplated hereby, (y)&nbsp;all taxes that are attributable to such Affected Person's failure to comply with the requirements of
paragraph&nbsp;(d) of this section, and (z)&nbsp;all taxes that are taxes imposed other than as a result of a change in treaty, law or regulation (or the application or interpretation thereof)
after the date such Affected Person becomes a party to this Agreement (all such non-excluded taxes, levies, imposts, deductions, charges, withholdings and liabilities being hereinafter
referred to as "</FONT><FONT SIZE=2><I>Taxes</I></FONT><FONT SIZE=2>"). If the Seller or the Collection Agent shall be required by law to deduct any Taxes from or in respect of any sum payable
hereunder to any Affected Person, (i)&nbsp;the Seller shall make an additional payment to such Affected Person, in an amount sufficient so that, after making all required deductions (including
deductions applicable to additional sums payable under this Section&nbsp;2.10), such Affected Person receives an amount equal to the sum it would have received had no such deductions been made,
(ii)&nbsp;the Seller or the Collection Agent, as the case may be, shall make such deductions and (iii)&nbsp;the Seller or the Collection Agent, as the case may be, shall pay the full amount
deducted to the relevant taxation authority or other authority in accordance with applicable law. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;In
addition, the Seller agrees to pay any present or future stamp or other documentary taxes or any other excise or property taxes, charges or similar levies which
arise from or under any Transaction Document or from the execution, delivery or registration of this Agreement or any other Transaction Document (hereinafter referred to as
"</FONT><FONT SIZE=2><I>Other Taxes</I></FONT><FONT SIZE=2>"). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The
Seller will indemnify each Affected Person for the full amount of Taxes or Other Taxes (including, without limitation, any Taxes or Other Taxes imposed by any
jurisdiction on amounts payable under this Section&nbsp;2.10) paid by such Affected Person and any liability (including penalties, interest and expenses) arising therefrom or with respect thereto
whether or not such Taxes or Other Taxes were correctly or legally asserted. This indemnification shall be made within thirty days from the date the Affected Person makes written demand therefor (and
a copy of such demand shall be delivered to the Agent). A certificate as to the amount of such indemnification submitted to the Seller and the Agent by such Affected Person, setting forth, in
reasonable detail, the basis for and the calculation thereof, shall be conclusive and binding for all purposes absent manifest error. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;(1)
Each Investor and Bank and any Transferee that is not a "U.S. person" as that term is defined in Section&nbsp;7701(a)(30) of the United States Internal
Revenue Code (a "</FONT><FONT SIZE=2><I>Non-U.S. Person</I></FONT><FONT SIZE=2>") shall deliver to the Seller and the Collection Agent, and if applicable, the assigning Investor or Bank
(or, in the case of a Transferee that holds a participation, to the Investor or Bank from which the related participation shall have been transferred) on or before the date on which it becomes a party
to this Agreement or becomes a Transferee (or, in the case of a Transferee that holds a participation, on or before the date on which such Transferee receives the related participation) two duly
completed and signed copies of either Internal Revenue Service Form&nbsp;W-8BEN (relating to such Non-U.S. Person and entitling it to a complete exemption from withholding of
U.S. Taxes on all amounts to be received by such Non-U.S. Person pursuant to this Agreement and the other Transaction Documents) or Form&nbsp;W-8ECI (relating to all amounts
to be received by such Non-U.S. Person pursuant to this Agreement and the other Transaction Documents), or successor and related applicable forms, as the case may be; </FONT> <FONT SIZE=2><I>provided, however</I></FONT><FONT SIZE=2>, that in the
event that a Non-U.S. Person is not a corporation for U.S. federal income tax purposes, such
Non-U.S. Person agrees to take any actions necessary, and to deliver all additional (or alternative) Internal Revenue Service forms necessary to establish such Non-U.S.
Person's entitlement to a complete exemption from withholding of U.S. Taxes on all amounts to be </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>20</FONT></P>

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<P><FONT SIZE=2>
received by such Non-U.S. Person pursuant to this Agreement and the other Transaction Documents (including causing its partners, members, beneficiaries or owners, and their beneficial
owners, to take any actions and deliver any forms necessary to establish such exemption). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;Further,
each Non-U.S. Person agrees (i)&nbsp;to deliver to the Seller and the Collection Agent, and if applicable, the assigning Investor or Bank
(or, in the case of a Transferee that holds a participation, to the Investor or Bank from which the related participation shall have been transferred) two further duly completed and signed copies of
such Form&nbsp;W-8BEN or W-8ECI or such other Internal Revenue Service forms required to be delivered pursuant to the proviso following clause&nbsp;(1) of this
Section&nbsp;2.10(d), as the case may be, or successor and related applicable forms, on or before the date that any such form expires or becomes obsolete and promptly after the occurrence of any
event requiring a change from the most recent form(s) previously delivered by it to the Seller and Collection Agent, and, if applicable, the assigning Investor or Bank (or, in the case of a Transferee
that holds a participation, to the Investor or Bank from which the related participation shall have been transferred) in accordance with applicable U.S. laws and regulations or (ii)&nbsp;to notify
promptly the Seller and the Collection Agent, and, if applicable, the assigning Investor or Bank (or, in the case of a Transferee that holds a participation, the Investor or Bank from which the
related participation shall have been transferred) if it is no longer able to deliver, or if it is required to withdraw or cancel, any form or statement previously delivered by it pursuant to
subsection 2.10(d)(1) and (d)(2) including reliance on any forms provided to it pursuant to the proviso following clause&nbsp;(1) of subsection 2.10(d). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;Each
Investor and Bank and any Transferee that is not a Non-U.S. Person shall deliver to the Seller and the Collection Agent and, if applicable, the
assigning Investor or Bank (or, in the case of a Transferee that holds a participation, to the Investor or Bank from which the related participation shall have been transferred) two duly completed
copies of United States Internal Revenue Service Form&nbsp;W-9 (or applicable successor form) unless it establishes to the satisfaction of the Seller that it is otherwise
eligible for an exemption from backup withholding tax or other applicable withholding tax. Each such Investor, Bank or Transferee shall deliver to the Seller and the Collection Agent and, if
applicable, the assigning Investor or Bank (or, in the case of a Transferee that holds a participation, to the Investor or Bank from which the related participation shall have been transferred) two
further properly completed and duly executed forms and statements (or applicable successor forms) at or before the time any such form or statement becomes obsolete. </FONT></P>

<P><FONT SIZE=2><A
NAME="kd2063_section_2.11._security_interest."> </A>
<A NAME="toc_kd2063_13"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.11.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Security Interest. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;As collateral security for the performance by the Seller of all the terms, covenants and agreements on the part of
the Seller (whether as Seller or otherwise)
to be performed under this Agreement or any document delivered in connection with this Agreement in accordance with the terms thereof, including the punctual payment when due of all obligations of the
Seller hereunder or thereunder, whether for indemnification payments, fees, expenses or otherwise, the Seller hereby assigns to the Agent for its benefit and the ratable benefit of the Investors and
the Banks, and hereby grants to the Agent for its benefit and the ratable benefit of the Investors and the Banks, a security interest in, all of the Seller's right, title and interest in and to
(A)&nbsp;the PCA and the Parent Undertaking Agreement, including, without limitation, (i)&nbsp;all rights of the Seller to receive moneys due or to become due under or pursuant to the PCA or the
Parent Undertaking Agreement, (ii)&nbsp;all security interests and property subject thereto from time to time purporting to secure payment of monies due or to become due under or pursuant to the PCA
or the Parent Undertaking Agreement, (iii)&nbsp;all rights of the Seller to receive proceeds of any insurance, indemnity, warranty or guaranty with respect to the PCA or the Parent Undertaking
Agreement, (iv)&nbsp;claims of the Seller for damages arising out of or for breach of or default under the PCA or the Parent Undertaking Agreement, and (v)&nbsp;the right of the Seller to compel
performance and otherwise exercise all remedies thereunder, (B)&nbsp;all Receivables, whether now owned and existing or hereafter acquired or arising, the Related Security with respect thereto, the
Lock-Box Accounts, the Collection Account and the Collections and all other assets, including, without limitation, accounts, chattel paper, instruments and general intangibles (as </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>21</FONT></P>

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<P><FONT SIZE=2>
those terms are defined in the UCC), including undivided interests in any of the foregoing, owned by the Seller and not otherwise purchased under this Agreement, and (C)&nbsp;to the extent not
included in the foregoing, all proceeds of any and all of the foregoing. In the event that any purchase of Receivable Interests hereunder is not characterized as a sale, the Seller shall, effective as
of the date hereof, be deemed to have granted (and the Seller hereby does grant) to the Agent (for its benefit and the ratable benefit of the Investors and the Banks) a security interest in all
Receivables whether now owned and existing or hereafter acquired or arising and all Related Security and Collections with respect thereto, to secure payment of Capital, Yield, Fees and all other
amounts payable by the Seller hereunder, and this Agreement shall be deemed to be a security agreement. </FONT></P>

<P><FONT SIZE=2><A
NAME="kd2063_section_2.12._repurchase_option."> </A>
<A NAME="toc_kd2063_14"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.12.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Repurchase Option. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;So long as no Event of Termination or Incipient Event of Termination would occur or be continuing after giving
effect thereto, the Seller shall have the right
(the "</FONT><FONT SIZE=2><I>Call Right</I></FONT><FONT SIZE=2>") to repurchase all, but not less than all, of the Receivable Interests held by the Investors and the Banks upon not less than thirty
Business Days' prior written notice to the Agent. Such notice shall specify the date that the Seller desires that such repurchase occur (such date, the "</FONT><FONT SIZE=2><I>Repurchase
Date</I></FONT><FONT SIZE=2>"). On the Repurchase Date, the Seller shall transfer to the Agent's Account in immediately available funds an amount equal to (i)&nbsp;the
Capital of the Receivable Interests held by the Investors and the Banks, (ii)&nbsp;all accrued and unpaid Yield thereon to the Repurchase Date, (iii)&nbsp;all accrued and unpaid Fees owing to the
Investors and the Banks, (iv)&nbsp;the Liquidation Fee owing to the Investors and the Banks in respect of such repurchase and (v)&nbsp;all expenses and other amounts payable hereunder to any of
the Agent, the Investors and the Banks (including, without limitation, attorneys' fees and disbursements). Any repurchase pursuant to this Section&nbsp;2.12 shall be made without recourse to or
warranty by the Agent, the Investors or the Banks (except for a warranty that all Receivable Interests repurchased are transferred free of any lien, security interest or Adverse Claim created solely
by the actions of the Agent, the Investors or the Banks). Further, on the Repurchase Date the Bank Commitments for all the Banks shall terminate, each of the Commitment Termination Date and Facility
Termination Date shall have occurred, the Termination Date for all Banks and the Investors shall have occurred and no further purchases or reinvestments of Collections shall be made hereunder. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kd2063_article_iii_conditions_of_purchases"> </A>
<A NAME="toc_kd2063_15"> </A>
<BR></FONT><FONT SIZE=2><B>ARTICLE III    <BR>    <BR>    CONDITIONS OF PURCHASES    <BR>  </B></FONT></P>

<P><FONT SIZE=2><A
NAME="kd2063_section_3.01._condition__kd201956"> </A>
<A NAME="toc_kd2063_16"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.01.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Conditions Precedent to Initial Purchase. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The initial purchase of a Receivable Interest under this Agreement is subject to the
conditions precedent that the Agent shall have received on or before the
date of such purchase the following, each (unless otherwise indicated) dated as of such date of purchase, in form and substance satisfactory to the Agent: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;(i)&nbsp;Certified
copies of the resolutions of the Board of Directors of the Seller and the Originator approving this Agreement and the PCA and certified copies
of all documents evidencing other necessary corporate action, as the case may be, and governmental approvals, if any, with respect to this Agreement and the PCA and (ii)&nbsp;certified copies of the
resolutions of the Board of Directors of Dal-Tile International and Dal-Tile Group approving the Parent Undertaking Agreement and certified copies of all documents evidencing
other necessary corporate action and governmental approvals, if any, with respect to the Parent Undertaking Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;(i)&nbsp;A
certificate of the Secretary or Assistant Secretary of the Seller and of the Originator certifying the names and true signatures of the officers of the
Seller and of the Originator authorized to sign the PCA and this Agreement and the other documents to be delivered by it hereunder and thereunder and (ii)&nbsp;a certificate of the Secretary or
Assistant Secretary of Dal-Tile International and Dal-Tile Group certifying the names and true signatures of the officers of Dal-Tile International and
Dal-Tile Group authorized to sign the Parent Undertaking Agreement and any other documents to be delivered by it thereunder. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>22</FONT></P>

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<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Acknowledgment copies or time stamped receipt copies (or other evidence of filing) of proper financing statements, duly filed on or before the date of such initial
purchase under the UCC of all jurisdictions that the Agent may deem necessary or desirable in order to perfect the ownership and security interests contemplated by this Agreement and the PCA. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Proper
financing statements (together with such written authorizations to file such financing statements or such other written statements with respect to the filing
of such financing statements as the Agent may request), if any, necessary to release all security interests and other rights of any Person (other than the interests evidenced by the financing
statement filings referred to in the second sentence of Section&nbsp;4.01(h)) in (i)&nbsp;the Receivables, Contracts or Related Security previously granted by the Seller or the Originator and
(ii)&nbsp;the collateral security referred to in Section&nbsp;2.11 previously granted by the Seller. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Completed
requests for information, dated on or before the date of such initial purchase, listing all effective financing statements filed in Texas and the
jurisdictions referred to in subsection (c)&nbsp;above that name the Seller or the Originator as debtor, together with copies of such financing statements (none of which shall cover any Receivables,
Contracts, Related Security or the collateral security referred to in Section&nbsp;2.11). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;Executed
copies of Lock-Box Agreements with each Lock-Box Bank and the Account Agreement with the bank holding the Collection Account. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;Executed
copies of Bank Direction Agreements with respect to the Store Accounts maintained at Bank of America-East, Bank of America-West,
Bank One Chicago, Bank One Michigan, Bank One Texas, First Union and Wells Fargo Bank. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;Favorable
opinions of (i)&nbsp;Fried, Frank, Harris, Shriver&nbsp;&amp; Jacobson, (ii)&nbsp;Dechert and (iii)&nbsp;Mark A. Solls, each as counsel for the
Seller, the Originator, Dal-Tile International and Dal-Tile Group substantially in the forms of Annex C hereto and as to such other matters as the Agent may reasonably request. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;An
executed copy of the Fee Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;An
executed copy of the PCA. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;A
copy of the by-laws of the Seller, certified by the Secretary or Assistant Secretary of the Seller, and of the by-laws of the Originator,
certified by the Secretary or Assistant Secretary of the Originator. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;A
copy of the certificate of incorporation of the Seller and of the certificate of incorporation of the Originator, certified as of a recent date by the Secretary
of State or other appropriate official of the state of its organization, and a certificate as to the good standing of each of the Seller and the Originator from such Secretary of State or other
official, dated as of a recent date. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;The
opening pro forma balance sheet of the Seller referred to in Section&nbsp;4.01(e). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;Confirmation
(informally but to the reasonable satisfaction of the Agent) by each of S&amp;P and Moody's that the commercial paper notes of Atlantic issued in
connection with this Agreement will be, or will continue to be, rated at least A-1 and P-1, respectively. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;An
executed copy of the Parent Undertaking Agreement. </FONT></P>

<P><FONT SIZE=2><A
NAME="kd2063_section_3.02._conditions_prece__sec02542"> </A>
<A NAME="toc_kd2063_17"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.02.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Conditions Precedent to All Purchases and Reinvestments. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Each purchase (including the initial purchase) and each reinvestment shall be
subject to the further conditions precedent that (a)&nbsp;in the case of each
purchase, the Collection Agent shall have delivered to the Agent at least one Business Day prior to such purchase, in form and substance satisfactory to the Agent, a completed Monthly Report (or, in
the case of the initial purchase, a pro forma Monthly Report for the </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>23</FONT></P>

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<P><FONT SIZE=2>
period ending September&nbsp;28, 2001) containing information covering the most recently ended reporting period for which information is required pursuant to Section&nbsp;6.02(g) and demonstrating
that after giving effect to such purchase no Event of Termination or Incipient Event of Termination under Section&nbsp;7.01(i)&nbsp;would occur, (b)&nbsp;in the case of each reinvestment, the
Collection Agent shall have delivered to the Agent on or prior to the date of such reinvestment, in form and substance satisfactory to the Agent, a completed Monthly Report containing information
covering the most recently ended reporting period for which information is required pursuant to Section&nbsp;6.02(g), (c)&nbsp;on the date of such purchase or reinvestment the following statements
shall be true, except that the statement in clause&nbsp;(iii) below is required to be true only if such purchase or reinvestment is by an Investor (and acceptance of the proceeds of such purchase or
reinvestment shall be deemed a representation and warranty by the Seller and the Collection Agent (each as to itself) that such statements are then true): </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;The
representations and warranties contained in Section&nbsp;4.01 (in the case of the Seller) and 4.02 (in the case of the Collection Agent) are correct on and as
of the date of such purchase or reinvestment as though made on and as of such date, </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;No
event has occurred and is continuing, or would result from such purchase or reinvestment, that constitutes an Event of Termination or an Incipient Event of
Termination, </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;The
Agent shall not have given the Seller at least one Business Day's notice that the Investors have terminated the reinvestment of Collections attributable to
their Receivable Interests in Receivable Interests, and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;The
Originator shall have sold or contributed to the Seller, pursuant to the PCA, all Originator Receivables outstanding on the date hereof and thereafter arising
through and including such purchase or reinvestment date, and </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;the
Agent shall have received such other approvals, opinions or documents as it may reasonably request. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>24</FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ke2063_article_iv_representations_and_warranties"> </A>
<A NAME="toc_ke2063_1"> </A>
<BR></FONT><FONT SIZE=2><B>ARTICLE IV    <BR>    <BR>    REPRESENTATIONS AND WARRANTIES    <BR>  </B></FONT></P>

<P><FONT SIZE=2><A
NAME="ke2063_section_4.01._represent__ke202139"> </A>
<A NAME="toc_ke2063_2"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.01.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Representations and Warranties of the Seller. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The Seller hereby represents and warrants as follows: </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The
Seller is a corporation duly formed, validly existing and in good standing under the laws of Delaware, and is duly qualified to do business, and is in good
standing, in every jurisdiction where the nature of its business requires it to be so qualified. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The
execution, delivery and performance by the Seller of the Transaction Documents to which it is a party and the other documents to be delivered by it hereunder,
including the Seller's use of the proceeds of purchases and reinvestments, (i)&nbsp;are within the Seller's corporate powers, (ii)&nbsp;have been duly authorized by all necessary corporate action,
(iii)&nbsp;do not contravene (1)&nbsp;the Seller's certificate of incorporation or bylaws, (2)&nbsp;any law, rule or regulation applicable to the Seller, (3)&nbsp;any contractual restriction
binding on or affecting the Seller or its property, including, without limitation, the Credit Agreement and the documents related thereto, or (4)&nbsp;any order, writ, judgment, award, injunction or
decree binding on or affecting the Seller or its property, and (iv)&nbsp;do not result in or require the creation of any lien, security interest or other charge or encumbrance upon or with respect
to any of its properties (except for the interest created pursuant to this Agreement). Each of the Transaction Documents to which the Seller is a party has been duly executed and delivered by the
Seller. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;No
authorization or approval or other action by, and no notice to or filing with, any governmental authority or regulatory body is required for the due execution,
delivery and performance by the Seller of the Transaction Documents to which the Seller is a party or any other document to be delivered thereunder, except for the filing of UCC financing statements
which are referred to herein. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Each
of the Transaction Documents to which the Seller is a party constitutes the legal, valid and binding obligation of the Seller enforceable against the Seller in
accordance with its terms except that
such enforceability may be subject to bankruptcy, insolvency, reorganization, moratorium (whether general or specific) and other similar laws now or hereafter in effect affecting creditors rights
generally. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;The
opening pro forma balance sheet of the Seller as of September&nbsp;28, 2001, giving effect to the initial purchase to be made under this Agreement, a copy of
which has been furnished to the Agent, fairly presents, in all material respects, the financial condition of the Seller as at such date, in accordance with generally accepted accounting principles,
and since September&nbsp;28, 2001 there has been no material adverse change in the business, operations, property or financial or other condition of the Seller. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;There
is no pending or threatened action or proceeding affecting the Seller before any court, governmental agency or arbitrator which may reasonably be expected to
materially adversely affect the financial condition or operations of the Seller or the ability of the Seller to perform its obligations under the Transaction Documents, or which purports to affect the
legality, validity or enforceability of the Transaction Documents. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;No
proceeds of any purchase or reinvestment will be used, whether directly or indirectly, to purchase or carry Margin Stock (as such term is defined in
Regulation&nbsp;U of the Board of Governors of the Federal Reserve System of the United States, as in effect from time to time) or to extend credit to others for the purpose of purchasing or
carrying Margin Stock or to refund indebtedness originally incurred for such purpose. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;Immediately
prior to the purchase by the Investor or the Banks, as the case may be, the Seller is the legal and beneficial owner of the Pool Receivables and Related
Security free and clear of any Adverse Claim; upon each purchase or reinvestment, the Investors or the Banks, as the case may be, </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>25</FONT></P>

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<P><FONT SIZE=2>
shall acquire a valid and perfected first priority undivided percentage ownership interest to the extent of the pertinent Receivable Interest in each Pool Receivable then existing or thereafter
arising and in the Related Security and Collections with respect thereto. No effective financing statement or other instrument similar in effect covering any Contract or any Pool Receivable or the
Related Security or Collections with respect thereto is on file in any recording office, except those filed in favor of the Agent relating to this Agreement and those filed against the Originator
pursuant to the PCA. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;Each
Monthly Report and Weekly Report (if prepared by the Seller or one of its Affiliates, or to the extent that information contained therein is supplied by the
Seller or an Affiliate), information, exhibit, financial statement, document, book, record or report furnished or to be furnished at any time by or on behalf of the Seller to the Agent, the Investors
or the Banks in connection with this Agreement is or will be accurate in all material respects as of its date or (except as otherwise disclosed to the Agent, Investors or the Banks, as the case may
be, at such time) as of the date so furnished, and no such
document contains or will contain any untrue statement of a material fact or omits or will omit to state a material fact necessary in order to make the statements contained therein, in the light of
the circumstances under which they were made, not misleading. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;The
principal place of business and chief executive office of the Seller and the office where the Seller keeps its records concerning the Pool Receivables are
located at the address or addresses referred to in Section&nbsp;5.01(b). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;The
names and addresses of all the Lock-Box Banks, together with the account numbers of the Lock-Box Accounts of the Seller at such
Lock-Box Banks, are as specified in Schedule&nbsp;I hereto, as such Schedule&nbsp;I may be updated from time to time pursuant to Section&nbsp;5.01(g). The name and address of the
bank holding the Collection Account, together with the account number of the Collection Account, are as specified in Schedule&nbsp;I hereto, as such Schedule&nbsp;I may be updated from time to
time pursuant to Section&nbsp;5.01(g). The names and addresses of all the Store Account Banks, together with the account numbers of the Store Accounts at such Store Account Banks, are as specified
in Schedule&nbsp;IV hereto, as such Schedule&nbsp;IV may be updated from time to time pursuant to Section&nbsp;6.06(c). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;The
Seller is not known by and does not use any tradename or doing-business-as name. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;The
Seller was incorporated on September&nbsp;4, 2001, and the Seller did not engage in any business activities prior to the date of this Agreement. The Seller
has no Subsidiaries. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;(i)&nbsp;The
fair value of the property of the Seller is greater than the total amount of liabilities, including contingent liabilities, of the Seller,
(ii)&nbsp;the present fair salable value of the assets of the Seller is not less than the amount that will be required to pay all probable liabilities of the Seller on its debts as they become
absolute and matured, (iii)&nbsp;the Seller does not intend to, and does not believe that it will, incur debts or liabilities beyond the Seller's abilities to pay such debts and liabilities as they
mature and (iv)&nbsp;the Seller is not engaged in a business or a transaction, and is not about to engage in a business or a transaction, for which the Seller's property would constitute
unreasonably small capital. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;With
respect to each Pool Receivable, the Seller (i)&nbsp;shall have received such Pool Receivable as a contribution to the capital of the Seller by the
Originator or (ii)&nbsp;shall have purchased such Pool Receivable from the Originator in exchange for payment (made by the Seller to the Originator in accordance with the provisions of the PCA) of
cash, Deferred Purchase Price, or a combination thereof in an amount which constitutes fair consideration and reasonably equivalent value. Each such sale referred to in clause&nbsp;(ii) of the
preceding sentence shall not have been made for or on account of an antecedent debt owed by the Originator to the Seller and no such sale is or may be voidable or subject to avoidance under any
section of the Federal Bankruptcy Code. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>26</FONT></P>

<HR NOSHADE>
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<A NAME="page_ke2063_1_27"> </A>

<P><FONT SIZE=2><A
NAME="ke2063_section_4.02._representations___sec02482"> </A>
<A NAME="toc_ke2063_3"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.02.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Representations and Warranties of the Collection Agent. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The Collection Agent hereby represents and warrants as follows: </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The
Collection Agent is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Pennsylvania, and is duly qualified to
do business, and is in good standing, in every jurisdiction where the nature of its business requires it to be so qualified, except where the failure to be so qualified would not reasonably be
expected to have a material adverse effect on the business, operations, property or financial or other condition of the Collection Agent. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The
execution, delivery and performance by the Collection Agent of this Agreement and any other documents to be delivered by it hereunder (i)&nbsp;are within the
Collection Agent's corporate powers, (ii)&nbsp;have been duly authorized by all necessary corporate action, (iii)&nbsp;do not contravene (1)&nbsp;the Collection Agent's charter or
by-laws, (2)&nbsp;any law, rule or regulation applicable to the Collection Agent, (3)&nbsp;any material contractual restriction binding on or affecting the Collection Agent or its
property, including, without limitation, the Credit Agreement and the documents related thereto or (4)&nbsp;any order, writ, judgment, award, injunction or decree binding on or affecting the
Collection Agent or its property, and (iv)&nbsp;do not result in or require the creation of any lien, security interest or other charge or encumbrance upon or with respect to any of its properties
pursuant to any material agreement. This Agreement has been duly executed and delivered by the Collection Agent. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;No
authorization or approval or other action by, and no notice to or filing with, any governmental authority or regulatory body is required for the due execution,
delivery and performance by the Collection Agent of this Agreement or any other document to be delivered by it hereunder. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;This
Agreement constitutes the legal, valid and binding obligation of the Collection Agent enforceable against the Collection Agent in accordance with its terms
except that such enforceability may be subject to bankruptcy, insolvency, reorganization, moratorium (whether general or specific) and other similar laws now or hereafter in effect affecting creditors
rights generally. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;The
consolidated balance sheet of Dal-Tile International and its consolidated Subsidiaries as at December&nbsp;29, 2000, and the related consolidated
statements of income and retained earnings of Dal-Tile International and its consolidated Subsidiaries for the fiscal year then ended, copies of which have been furnished to the Agent,
fairly present, in all material respects, the financial condition of Dal-Tile International and its consolidated Subsidiaries as at such date and the results of the operations of
Dal-Tile International and its consolidated Subsidiaries for the period ended on such date, all in accordance with generally accepted accounting principles consistently applied, and since
December&nbsp;29, 2000 there has been no material adverse change in the business, financial condition or operations of Dal-Tile International and its consolidated Subsidiaries taken as a
whole that could reasonably be expected to adversely affect the value or collectibility of the Receivable Interests or the Receivables
Pool or the ability of the Seller, the Originator or the Collection Agent to collect Pool Receivables or otherwise perform its obligations under this Agreement or the other Transaction Documents. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;There
is no pending or threatened action or proceeding affecting the Collection Agent or any of its Subsidiaries before any court, governmental agency or
arbitrator which may reasonably be expected to materially adversely affect the financial condition or operations of the Collection Agent and its consolidated Subsidiaries taken as a whole or the
ability of the Collection Agent to perform its obligations under this Agreement, or which purports to affect the legality, validity or enforceability of this Agreement. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;On
the date of each purchase and reinvestment (and after giving effect thereto), the sum of the Receivable Interests is not greater than 100%. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;The
Collection Agent has a system in place which allows it to determine (and adjust) the Outstanding Balance of each particular Receivable in respect of which a
credit memo issued by the Originator or the Seller is outstanding. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>27</FONT></P>

<HR NOSHADE>

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<A NAME="page_ke2063_1_28"> </A>
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ke2063_article_v_covenants"> </A>
<A NAME="toc_ke2063_4"> </A>
<BR></FONT><FONT SIZE=2><B>ARTICLE V    <BR>    <BR>    COVENANTS    <BR>  </B></FONT></P>

<P><FONT SIZE=2><A
NAME="ke2063_section_5.01._covenants_of_the_seller."> </A>
<A NAME="toc_ke2063_5"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 5.01.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Covenants of the Seller. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Until the latest of the Facility Termination Date or the date on which no Capital of or Yield on any
Receivable Interest shall be outstanding or the date all
other amounts owed by the Seller hereunder to the Investors, the Banks or the Agent are paid in full: </FONT></P>

<P><FONT SIZE=2><A
NAME="ke2063_(a)_compliance_with_laws,_etc."> </A>
<A NAME="toc_ke2063_6"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;(a)</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Compliance with Laws, Etc. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The Seller will comply in all material respects with all applicable laws, rules, regulations and orders and preserve
and maintain its corporate existence,
rights, franchises, qualifications, and privileges except to the extent that the failure so to comply with such laws, rules and regulations or the failure so to preserve and maintain such rights,
franchises, qualifications, and privileges would not materially
adversely affect the collectibility of the Receivables Pool or the ability of the Seller to perform its obligations under the Transaction Documents. </FONT></P>

<P><FONT SIZE=2><A
NAME="ke2063_(b)_offices,_records_and_books_of_account."> </A>
<A NAME="toc_ke2063_7"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;(b)</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Offices, Records and Books of Account. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The Seller will keep its principal place of business and chief executive office and the office where it
keeps its records concerning the Pool Receivables at
the address of the Seller set forth under its name on the signature pages to this Agreement or, upon 30&nbsp;days' prior written notice to the Agent, at any other locations within the United States.
The Seller will not change its name or its state of organization, unless (i)&nbsp;the Seller shall have provided the Agent with at least 30&nbsp;days' prior written notice thereof,(ii)&nbsp;no
later than the effective date of such change, all actions reasonably requested by the Agent to protect and perfect the interest in the Pool Receivables have been taken and completed and
(iii)&nbsp;such name change would not be reasonably likely to mislead a Person as to the separate identity of the Originator and the Seller. The Seller also will maintain and implement
administrative and operating procedures (including, without limitation, an ability to recreate records evidencing Pool Receivables and related Contracts in the event of the destruction of the
originals thereof), and keep and maintain all documents, books, records and other information reasonably necessary or advisable for the collection of all Pool Receivables (including, without
limitation, records adequate to permit the daily identification of each Pool Receivable and all Collections of and adjustments to each existing Pool Receivable). </FONT></P>

<P><FONT SIZE=2><A
NAME="ke2063_(c)_performance_and_compliance__(c)02963"> </A>
<A NAME="toc_ke2063_8"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;(c)</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Performance and Compliance with Contracts and Credit and Collection Policy. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The Seller will, at its expense, timely and fully perform and comply
with all material provisions, covenants and other promises required to be observed by it
under the Contracts related to the Pool Receivables, and timely and fully comply in all material respects with the Credit and Collection Policy in regard to each Pool Receivable and the related
Contract. </FONT></P>

<P><FONT SIZE=2><A
NAME="ke2063_(d)_sales,_liens,_etc."> </A>
<A NAME="toc_ke2063_9"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;(d)</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Sales, Liens, Etc. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Except for the interests created hereunder in favor of the Agent, the Seller will not sell, assign (by operation of law or
otherwise) or otherwise dispose of,
or create or suffer to exist any Adverse Claim upon or with respect to, the Seller's undivided interest in any Pool Receivable, Related Security, related Contract or Collections, or upon or with
respect to any account to which any Collections of any Pool Receivable are sent, or assign any right to receive income in respect thereof, other than as contemplated by the Transaction Documents. </FONT></P>


<P><FONT SIZE=2><A
NAME="ke2063_(e)_extension_or_amendment_of_receivables."> </A>
<A NAME="toc_ke2063_10"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;(e)</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Extension or Amendment of Receivables. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Except as provided in Section&nbsp;6.02(c), the Seller will not (and will not permit the Collection Agent
or the Originator to) extend, amend or otherwise
modify the terms of any Pool Receivable, or amend, modify or waive any term or condition of any Contract related thereto. </FONT></P>

<P><FONT SIZE=2><A
NAME="ke2063_(f)_change_in_business___ke202061"> </A>
<A NAME="toc_ke2063_11"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;(f)</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Change in Business or Credit and Collection Policy. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The Seller will not make any change in the character of its business or in the Credit and
Collection Policy that would, in either case, materially adversely
affect the collectibility of the Receivables Pool or the ability of the Seller to perform its obligations under this Agreement. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>28</FONT></P>

<HR NOSHADE>
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<A NAME="page_ke2063_1_29"> </A>

<P><FONT SIZE=2><A
NAME="ke2063_(g)_change_in_payment_instructions_to_obligors."> </A>
<A NAME="toc_ke2063_12"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;(g)</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Change in Payment Instructions to Obligors. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The Seller will not add or terminate any bank or bank account as a Lock-Box Bank or Lock-Box Account
from those listed in
Schedule&nbsp;I to this Agreement, or make any change in its instructions to Obligors regarding payments to be made to the Seller or payments to be made to any Lock-Box Bank, unless the
Agent shall have received notice of such addition, termination or change (including an updated Schedule&nbsp;I) and a fully executed Lock-Box Agreement with each new Lock-Box
Bank or with respect to each new Lock-Box Account. The Seller will not change the Collection Account, unless the Agent shall have received notice of such change (including an updated
Schedule&nbsp;I) and a fully executed Account Agreement with respect to such new Collection Account. </FONT></P>

<P><FONT SIZE=2><A
NAME="ke2063_(h)_deposits_of_collections."> </A>
<A NAME="toc_ke2063_13"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;(h)</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Deposits of Collections. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The Seller will instruct or cause the Collection Agent to instruct all Obligors to remit all their payments in respect of
Receivables to a Lock-Box
Account. The Seller will instruct or cause the Collection Agent to instruct the appropriate responsible employees at each DTC Store to remit all payments in respect of Receivables which,
notwithstanding the aforementioned instructions given to the Obligors, are received at such DTC Store on any Business Day to a Store Account at the end of such Business Day or by 12:00 noon on the
next Business Day. If the Seller shall receive any Collections directly (rather than at a DTC Store), it shall immediately (and in any event within two Business Days) deposit the same to a
Lock-Box Account or the Collection Account. The Seller will not deposit or otherwise credit, or cause or permit to be so deposited or credited, to any Lock-Box Account cash or
cash proceeds other than Collections of Receivables. The Seller will instruct or otherwise cause, or cause the Collection Agent to instruct or otherwise cause, each bank holding a Store Account to
remit, on each Business Day from and after the date of this Agreement, by wire transfer, ACH debit or other electronic method, all funds deposited and collected in each Store Account to the Collection
Account. </FONT></P>

<P><FONT SIZE=2><A
NAME="ke2063_(i)_marking_of_records."> </A>
<A NAME="toc_ke2063_14"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;(i)</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Marking of Records. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;At its expense, the Seller will cause the master data processing records evidencing Pool Receivables to be marked to indicate
that Receivable Interests related
to such Pool Receivables have been sold in accordance with this Agreement. </FONT></P>

<P><FONT SIZE=2><A
NAME="ke2063_(j)_further_assurances."> </A>
<A NAME="toc_ke2063_15"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;(j)</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Further Assurances. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(i)&nbsp;The Seller agrees from time to time, at its expense, upon the request of the Agent, promptly to execute and deliver
all further instruments and
documents, and to take all further actions, that may be necessary or desirable, or that the Agent may reasonably request, to perfect, protect or more fully evidence the Receivable Interests purchased
under this Agreement, or to enable the Investors, the Banks or the Agent to exercise and enforce their respective rights and remedies under this Agreement. Without limiting the foregoing, the Seller
will, upon the request of the Agent, execute and file such financing or continuation statements, or amendments thereto, and such other instruments and documents, that may be necessary or desirable, or
that the Agent may reasonably request, to perfect, protect or evidence such Receivable Interests. </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;The
Seller authorizes the Agent to file financing or continuation statements, and amendments thereto and assignments thereof, relating to the Pool Receivables and
the Related Security, the related Contracts and the Collections with respect thereto without the signature of the Seller where permitted by law. </FONT></P>

</UL>


<P><FONT SIZE=2><A
NAME="ke2063_(k)_reporting_requirements."> </A>
<A NAME="toc_ke2063_16"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;(k)</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Reporting Requirements. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The Seller will provide to the Agent (in multiple copies, if requested by the Agent) the following: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;as
soon as available and in any event within 45&nbsp;days after the end of the first three quarters of each fiscal year of Dal-Tile International, an
unaudited consolidated balance sheet of Dal-Tile International and its consolidated Subsidiaries as of the end of such quarter and consolidated statements of income and retained earnings
of Dal-Tile International and its consolidated Subsidiaries for the period commencing at the end of the previous fiscal year of Dal-Tile International and ending with the end
of such quarter, certified by the chief financial officer of Dal-Tile International; </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>29</FONT></P>

<HR NOSHADE>
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<A NAME="page_ke2063_1_30"> </A>
<UL>

<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;as soon as available and in any event within 90&nbsp;days after the end of each fiscal year of Dal-Tile International, a copy of the annual report
for such fiscal year of Dal-Tile International and its consolidated Subsidiaries, containing consolidated financial statements for such year audited by an independent public accountant
acceptable to the Agent; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;as
soon as available and in any event within 45&nbsp;days after the end of the first three quarters and within 90&nbsp;days after the end of the fourth fiscal
quarter of each fiscal year of the Seller, an unaudited balance sheet of the Seller as of the end of such quarter and an unaudited statement of income and retained earnings of the Seller for the
period commencing at the end of the previous fiscal year of the Seller and ending with the end of such quarter, certified by the chief financial officer of the Seller; </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;as
soon as possible and in any event within three Business Days after the occurrence of each Event of Termination or Incipient Event of Termination, a statement of
the chief financial officer of the Seller setting forth details of such Event of Termination or Incipient Event of Termination and the action that the Seller has taken and proposes to take with
respect thereto; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;promptly
after the sending or filing thereof, copies of all reports that Dal-Tile International sends to any of its security holders generally, and
copies of all Form&nbsp;10-K, Form&nbsp;10-Q and Form&nbsp;8-K reports and all other reports and registration statements that Dal-Tile
International or any Subsidiary thereof files with the SEC or any national securities exchange; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;promptly
after the filing or receiving thereof, copies of all reports and notices that the Seller or any Affiliate files under ERISA with the Internal Revenue
Service or the Pension Benefit Guaranty Corporation or the U.S. Department of Labor or that the Seller or any Affiliate receives from any of the foregoing or from any multiemployer plan (within the
meaning of Section&nbsp;4001(a)(3) of ERISA) to which the Seller or any Affiliate is or was, within the preceding five years, a contributing employer, in each case in respect of the assessment of
withdrawal liability or an event or condition which could, in the aggregate, result in the imposition of liability on the Seller and/or any such Affiliate in excess of $5,000,000; </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;(vii)&nbsp;at
least 30&nbsp;days prior to any change in the name or jurisdiction of organization of the Originator or the Seller a notice setting forth the new name or
jurisdiction of organization and the effective date thereof; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;(viii)&nbsp;as
soon as possible and in any event within three Business Days after the Seller obtains knowledge thereof, notice of any "Event of Termination" or "Facility
Termination Date" under the PCA or any "Event of Default" under the Credit Agreement; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ix)&nbsp;so
long as any Capital shall be outstanding, as soon as possible and in any event no later than the day of occurrence thereof, notice that the Originator has
stopped selling or contributing to the Seller, pursuant to the PCA, all newly arising Originator Receivables; </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(x)&nbsp;at
the time of the delivery of the financial statements provided for in clauses (i)&nbsp;and (ii)&nbsp;of this paragraph, a certificate of the chief financial
officer or treasurer of the Seller, to the effect that, to the best of such officer's knowledge, no Event of Termination has occurred and is continuing or, if any Event of Termination has occurred and
is continuing, specifying the nature and extent thereof; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(xi)&nbsp;promptly
after receipt thereof, copies of all notices received by the Seller from the Originator under the PCA; and </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;(xii)&nbsp;such
other information respecting the Receivables or the condition or operations, financial or otherwise, of the Seller, Dal-Tile International,
Dal-Tile Group or the Originator as the Agent may from time to time reasonably request. </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>30</FONT></P>

<HR NOSHADE>
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<A NAME="page_ke2063_1_31"> </A>

<P><FONT SIZE=2><A
NAME="ke2063_(l)_separateness."> </A>
<A NAME="toc_ke2063_17"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;(l)</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Separateness. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(i)&nbsp;The Seller shall at all times maintain at least one independent director who (x)&nbsp;is not currently and has not been
during the five years
preceding the date of this Agreement an officer, director or employee of an Affiliate of the Seller or any Other Company, (y)&nbsp;is not a current or former officer or employee of the Seller and
(z)&nbsp;is not a stockholder of any Other Company or any of their respective Affiliates and otherwise meets the requirements of an independent director under the Seller's certificate of
incorporation. </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;The
Seller shall not direct or participate in the management of any of the Other Companies' operations. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;The
Seller shall conduct its business from an office separate from that of the Other Companies (but which may be located in the same facility as one or more of
the Other Companies, provided that such office would not be reasonably likely to mislead a Person as to the separate identity of the Originator and the Seller). The Seller shall have stationery and
other business forms and a mailing address and a telephone number separate from that of the Other Companies. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;The
Seller shall at all times be adequately capitalized in light of its contemplated business. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;The
Seller shall at all times provide for its own operating expenses and liabilities from its own funds. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;The
Seller shall maintain its assets and transactions separately from those of the Other Companies and reflect such assets and transactions in financial statements
separate and distinct from those of the Other Companies and evidence such assets and transactions by appropriate entries in books and records separate and distinct from those of the Other Companies. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;(vii)&nbsp;The
Seller shall hold itself out to the public under the Seller's own name as a legal entity separate and distinct from the Other Companies. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;(viii)&nbsp;The
Seller shall not hold itself out as having agreed to pay, or as being liable, primarily or secondarily, for, any obligations of the Other Companies. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ix)&nbsp;The
Seller shall not maintain any joint account with any Other Company or become liable as a guarantor or otherwise with respect to any Debt or contractual
obligation of any Other Company. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(x)&nbsp;The
Seller shall not make any payment or distribution of assets with respect to any obligation of any Other Company or grant an Adverse Claim on any of its assets
to secure any obligation of any Other Company. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(xi)&nbsp;The
Seller shall not make loans, advances or otherwise extend credit to any of the Other Companies other than Purchaser Loans (as defined in the PCA) on the terms
and conditions set forth in the PCA. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;(xii)&nbsp;The
Seller shall hold regular duly noticed meetings of its directors and make and retain minutes of such meetings (or otherwise duly effect the same by means of
written consents). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;(xiii)&nbsp;The
Seller shall have bills of sale (or similar instruments of assignment) and, if appropriate, UCC-1 financing statements, with respect to all
assets purchased from any of the Other Companies. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;(xiv)&nbsp;The
Seller shall not engage in any transaction with any of the Other Companies, except as permitted by this Agreement and as contemplated by the PCA and the other
Transaction Documents. </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>31</FONT></P>

<HR NOSHADE>
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<A NAME="page_ke2063_1_32"> </A>
<UL>

<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;(xv)&nbsp;The Seller shall comply with (and cause to be true and correct) each of the facts and assumptions contained in the "Assumption of Facts" section of the opinion of
Olshan Grundman Frome Rosenzweig and Woloskly LLP delivered pursuant to Section&nbsp;3.01(g) and designated as Annex C to this Agreement. </FONT></P>

</UL>

<P><FONT SIZE=2><A
NAME="ke2063_(m)_pca_and_parent_undertaking_agreement."> </A>
<A NAME="toc_ke2063_18"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;(m)</FONT><FONT SIZE=2><I>&nbsp;&nbsp;PCA and Parent Undertaking Agreement. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The Seller will not amend, waive or modify any provision of the PCA or the Parent Undertaking Agreement
(</FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that the Seller may (i)&nbsp;extend the "Facility Termination Date" under the PCA or (ii)&nbsp;increase or reduce the Discount (as defined
under the PCA) within the range of 3.0% to 5.0%) or waive the occurrence of any "Event of Termination" under the PCA, without in each case the prior written consent of the Agent. The Seller will
perform all of its obligations under the PCA in all material respects and will enforce the PCA in accordance with its terms in all material respects. </FONT></P>

<P><FONT SIZE=2><A
NAME="ke2063_(n)_nature_of_business."> </A>
<A NAME="toc_ke2063_19"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;(n)</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Nature of Business. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The Seller will not engage in any business other than the purchase of Originator Receivables, Related Security and
Collections from the Originator and the
transactions contemplated by this Agreement and the other Transaction Documents. The Seller will not create or form any Subsidiary. </FONT></P>

<P><FONT SIZE=2><A
NAME="ke2063_(o)_mergers,_etc."> </A>
<A NAME="toc_ke2063_20"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;(o)</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Mergers, Etc. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The Seller will not merge with or into or consolidate with or into, or convey, transfer, lease or otherwise dispose of (whether in
one transaction or in a
series of transactions), all or substantially all of its assets (whether now owned or hereafter acquired) to, or acquire all or substantially all of the assets or capital stock or other ownership
interest of, or enter into any joint venture or partnership agreement with, any Person, other than as contemplated by this Agreement and the PCA. </FONT></P>


<P><FONT SIZE=2><A
NAME="ke2063_(p)_distributions,_etc."> </A>
<A NAME="toc_ke2063_21"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;(p)</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Distributions, Etc. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The Seller will not declare or make any dividend payment or other distribution of assets, properties, cash, rights,
obligations or securities on account of any
shares of any class of capital stock of the Seller, or return any capital to its shareholders as such, or purchase, retire, defease, redeem or otherwise acquire for value or make any payment in
respect of any shares of any capital stock of the Seller or any warrants, rights or options to acquire any such shares, now or hereafter outstanding; </FONT><FONT SIZE=2><I>provided,
however</I></FONT><FONT SIZE=2>, that the Seller may declare and pay cash dividends on its capital stock to its shareholders so long as (i)&nbsp;no Event of Termination shall then exist or would
occur as a result thereof, (ii)&nbsp;such dividends are in compliance with all applicable law including the corporate law of the state of Seller's incorporation, and (iii)&nbsp;such dividends have
been approved by all necessary and appropriate corporate action of the Seller. </FONT></P>

<P><FONT SIZE=2><A
NAME="ke2063_(q)_debt."> </A>
<A NAME="toc_ke2063_22"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;(q)</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Debt. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The Seller will not incur any Debt, other than any Debt incurred pursuant to this Agreement and the Deferred Purchase Price. </FONT></P>

<P><FONT SIZE=2><A
NAME="ke2063_(r)_certificate_of_incorporation."> </A>
<A NAME="toc_ke2063_23"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;(r)</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Certificate of Incorporation. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The Seller will not amend or delete Articles Third, Sixth, Seventh or Ninth of its certificate of incorporation.
</FONT></P>

<P><FONT SIZE=2><A
NAME="ke2063_(s)_tangible_net_worth."> </A>
<A NAME="toc_ke2063_24"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;(s)</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Tangible Net Worth. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The Seller will maintain Tangible Net Worth at all times equal to at least 3% of the Outstanding Balance of the Receivables
at such time. </FONT></P>

<P><FONT SIZE=2><A
NAME="ke2063_(t)_taxes."> </A>
<A NAME="toc_ke2063_25"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;(t)</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Taxes. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The Seller will file all Federal and other material tax returns and reports required by law to be filed by it and will promptly pay all
Federal and other
material taxes and governmental charges at any time owing, except such as are being contested in good faith by appropriate proceedings and for which appropriate reserves have been established in
accordance with, and to the extent required by, generally accepted accounting principles in the United States. The Seller will pay when due any taxes payable in connection with the Receivables,
exclusive of taxes on or measured by income or gross receipts of the Agent, the Investors and the Banks. </FONT></P>


<P><FONT SIZE=2><A
NAME="ke2063_section_5.02._covenants_of_the__sec02937"> </A>
<A NAME="toc_ke2063_26"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;SECTION 5.02.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Covenants of the Seller and Collection Agent Regarding Inspections. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Until the latest of the Facility Termination Date or the date on
which no Capital of or Yield on any Receivable </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>32</FONT></P>

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<P><FONT SIZE=2>
Interest shall be outstanding or the date all other amounts owed by the Seller hereunder to the Investors, the Banks or the Agent are paid in full, each of the Seller and the Collection Agent will, at
their respective expense, from time to time during regular business hours as reasonably requested by the Agent, permit the Agent or its agents or representatives (including independent public
accountants, which may be the Seller's or the Collection Agent's independent public accountants), (i)&nbsp;to conduct periodic audits of the Receivables, the Related Security and the related books
and records and collections systems of the Seller and/or the Collection Agent, as the case may be, (ii)&nbsp;to examine and make copies of and abstracts from all books, records and documents
(including, without limitation, computer tapes and disks) in the possession or under the control of the Seller or the Collection Agent, as the case may be, relating to Pool Receivables and the Related
Security, including, without limitation, the Contracts, and (iii)&nbsp;to visit the offices and properties of the Seller or the Collection Agent, as the case may be, for the purpose of examining
such materials described in clause&nbsp;(ii) above, and to discuss matters relating to Pool Receivables and the Related Security or the Seller's or the Collection Agent's performance under the
Transaction Documents or under the Contracts with any of the officers or employees of the Seller or the Collection Agent, as the case may be, having knowledge of such matters; </FONT> <FONT SIZE=2><I>provided however,</I></FONT><FONT SIZE=2> that so
long as no Event of Termination or Incipient Event of Termination shall have occurred and be continuing, the liability of the
Seller for the expenses of such periodic auditing during any one calendar year shall not exceed $6,000. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>33</FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kf2063_article_vi_administrati__kf202477"> </A>
<A NAME="toc_kf2063_1"> </A>
<BR></FONT><FONT SIZE=2><B>ARTICLE VI    <BR>    <BR>    ADMINISTRATION AND COLLECTION OF POOL RECEIVABLES    <BR>  </B></FONT></P>

<P><FONT SIZE=2><A
NAME="kf2063_section_6.01._designation_of_collection_agent."> </A>
<A NAME="toc_kf2063_2"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.01.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Designation of Collection Agent. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The servicing, administration and collection of the Pool Receivables shall be conducted by the
Collection Agent so designated hereunder from time to time.
Until the Agent gives notice to the Seller of the designation of a new Collection Agent (which notice may only be given following the occurrence and during the continuation of an Event of
Termination), the Originator is hereby designated as, and hereby agrees to perform the duties and obligations of, the Collection Agent pursuant to the terms hereof. The Agent at any time during the
existence of an Event of Termination may designate as Collection Agent itself or any Person that is a financial institution and/or in the business of servicing pools of receivables to succeed the
Originator or any successor Collection Agent, if such Person shall consent and agree to the terms hereof. The Collection Agent may, with the prior consent of the Agent, subcontract with any other
Person or Persons for the servicing, administration or collection of the Pool Receivables. Any such subcontract shall not affect the Collection Agent's liability for performance of its duties and
obligations pursuant to the terms hereof. </FONT></P>

<P><FONT SIZE=2><A
NAME="kf2063_section_6.02._duties_of_collection_agent."> </A>
<A NAME="toc_kf2063_3"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.02.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Duties of Collection Agent. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a)&nbsp;The Collection Agent shall take or cause to be taken all such actions as may be necessary or
advisable to collect each Pool Receivable from time to
time, all in accordance with applicable laws, rules and regulations, with reasonable care and diligence, and in accordance with the Credit and Collection Policy. The Seller and the Agent hereby
appoint the Collection Agent, from time to time designated pursuant to Section&nbsp;6.01, as agent for themselves and for the Investors and the Banks to enforce their respective rights and interests
in the Pool Receivables, the Related Security and the Collections with respect thereto. In performing its duties as Collection Agent, the Collection Agent shall exercise the same care and apply the
same policies as it would exercise and apply if it owned such Receivables and shall act in the best interests of the Seller, the Investors and the Banks. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The
Collection Agent shall administer the Collections in accordance with the procedures described in Section&nbsp;2.04. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;If
no Event of Termination or Incipient Event of Termination shall have occurred and be continuing, the Originator, while it is the Collection Agent, may, in
accordance with the Credit and Collection Policy, extend the maturity or adjust the Outstanding Balance of any Receivable as the Originator deems appropriate to maximize Collections thereof, or
otherwise amend or modify the terms of any Receivable, </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that the classification of any such Receivable as a Delinquent Receivable or Defaulted
Receivable shall not be affected by any such extension. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The
Collection Agent shall hold in trust for the Seller and each Investor and Bank, in accordance with their respective interests, all documents, instruments and
records (including, without limitation, computer tapes or disks) which evidence or relate to Pool Receivables. The Collection Agent shall cause the master data processing records evidencing the Pool
Receivables to be marked to indicate that Receivable Interests therein have been sold in accordance with this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;The
Collection Agent shall, as soon as practicable following receipt, turn over to the Seller or other Person entitled thereto any cash collections or other cash
proceeds received with respect to Receivables or other property not constituting Pool Receivables. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;The
Collection Agent shall, from time to time at the request of the Agent, furnish to the Agent (promptly after any such request) a calculation of the amounts set
aside for the Investors and the Banks pursuant to Section&nbsp;2.04. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>34</FONT></P>

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<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;Prior to the 10th Business Day of each Fiscal Month, the Collection Agent shall prepare and forward to the Agent a Monthly Report relating to the Receivable
Interests outstanding on the last day of the immediately preceding Fiscal Month. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;So
long as any Event of Termination or Incipient Event of Termination shall have occurred and be continuing, and if the Agent shall so request, the Collection Agent
shall, on or prior to the second Business Day of each week, prepare and forward to the Agent a Weekly Report relating to the Receivable Interests outstanding on the last day of the immediately
preceding week. </FONT></P>

<P><FONT SIZE=2><A
NAME="kf2063_section_6.03._certain_rights_of_the_agent."> </A>
<A NAME="toc_kf2063_4"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.03.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Certain Rights of the Agent. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a)&nbsp;The Agent is authorized at any time during the existence of an Event of Termination or Incipient
Event of Termination, to date, and to deliver to
the Lock-Box Banks, a notice in the form attached to the Lock-Box Agreements. The Seller hereby transfers to the Agent, effective when the Agent delivers such notices, the
exclusive ownership of the Lock-Box Accounts. The Seller shall take any actions reasonably requested by the Agent to effect such transfer. The Agent may notify the Obligors of Pool
Receivables, at any time and at the Seller's expense, of the ownership of Receivable Interests under this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;At
any time during the existence of an Event of Termination or Incipient Event of Termination: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;The
Agent may direct the Obligors of Pool Receivables that all payments thereunder be made directly to the Agent or its designee. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;At
the Agent's request and at the Seller's expense, the Seller shall notify each Obligor of Pool Receivables of the ownership of Receivable Interests under this
Agreement and direct that payments be made directly to the Agent or its designee. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;At
the Agent's request and at the Seller's expense, the Seller and the Collection Agent shall (A)&nbsp;assemble all of the documents, instruments and other
records (including, without limitation, computer tapes and disks) that evidence or relate to the Pool Receivables and the related Contracts and Related Security, or that are otherwise necessary or
desirable to collect the Pool Receivables, and shall make the same available to the Agent at a place selected by the Agent or its designee, and (B)&nbsp;segregate all cash, checks and other
instruments received by it from time to time constituting Collections of Pool Receivables in a manner acceptable to the Agent and, promptly upon receipt, remit all such cash, checks and instruments,
duly indorsed or with duly executed instruments of transfer, to the Agent or its designee. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;The
Seller authorizes the Agent to take any and all steps in the Seller's name and on behalf of the Seller that are necessary or desirable, in the determination of
the Agent, to collect amounts due under the Pool Receivables, including, without limitation, endorsing the Seller's name on checks and other instruments representing Collections of Pool Receivables
and enforcing the Pool Receivables and the Related Security and related Contracts. </FONT></P>

</UL>

<P><FONT SIZE=2><A
NAME="kf2063_section_6.04._rights_and_remedies."> </A>
<A NAME="toc_kf2063_5"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.04.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Rights and Remedies. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a)&nbsp;If the Collection Agent fails to perform any of its obligations under this Agreement, the Agent may (but
shall not be required to) itself perform,
or cause performance of, such obligation; and the Agent's costs and expenses incurred in connection therewith shall be payable by the Collection Agent. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The
Seller and the Originator shall perform their respective obligations under the Contracts related to the Pool Receivables to the same extent as if Receivable
Interests had not been sold and the exercise by the Agent on behalf of the Investors and the Banks of their rights under this Agreement shall not release the Collection Agent or the Seller from any of
their duties or obligations with respect to any Pool Receivables or related Contracts. Neither the Agent, the Investors nor the Banks shall have any obligation or liability with respect to any Pool
Receivables or related Contracts, nor shall any of them be obligated to perform the obligations of the Seller thereunder. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>35</FONT></P>

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<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;In the event of any conflict between the provisions of Article&nbsp;VI of this Agreement and Article&nbsp;VI of the PCA, the provisions of this Agreement shall
control. </FONT></P>

<P><FONT SIZE=2><A
NAME="kf2063_section_6.05._further_actions_evidencing_purchases."> </A>
<A NAME="toc_kf2063_6"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.05.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Further Actions Evidencing Purchases. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The Originator agrees from time to time, at its expense, upon the request of the Agent, to
promptly execute and deliver all further instruments and documents,
and to take all further actions, that may be necessary or desirable, or that the Agent may reasonably request, to perfect, protect or more fully evidence the Receivable Interests purchased hereunder,
or to enable the Investors, the Banks or the Agent to exercise and enforce their respective rights and remedies hereunder. Without limiting the foregoing, the Originator will (i)&nbsp;upon the
request of the Agent, execute and file, or cause to be executed and filed, such financing or continuation statements, or amendments thereto, and such other instruments and documents, that may be
necessary or desirable, or that the Agent may reasonably request, to perfect, protect or evidence such Receivable Interests; and (ii)&nbsp;cause the master data processing records evidencing the
Pool Receivables to be marked to indicate that Receivable Interests therein have been sold in accordance with this Agreement. </FONT></P>

<P><FONT SIZE=2><A
NAME="kf2063_section_6.06._changes_in_credi__sec02865"> </A>
<A NAME="toc_kf2063_7"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.06.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Changes in Credit and Collection Policy; Changes in Store Accounts. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a)&nbsp;The Originator will not make any change in the Credit and
Collection Policy that would impair the collectibility of any Pool Receivable or the
ability of the Originator (if it is acting as Collection Agent) to perform its obligations under this Agreement. In the event that the Collection Agent or the Originator makes any change to the Credit
and Collection Policy, it shall, contemporaneously with such change, provide the Agent with an updated Credit and Collection Policy and a summary of all material changes. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The
Originator will not open or close any Store Account, unless the Agent shall have received prior notice of such change (including an updated Schedule&nbsp;IV)
and a fully executed Bank Direction Agreement with respect to each new Store Account. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;On
or prior to March&nbsp;31, 2002, the Originator will deliver to the Agent fully executed Bank Direction Agreements in form reasonably acceptable to the Agent
with respect to each Store Account other than those Store Accounts for which (i)&nbsp;the Agent may waive the requirements of this Section&nbsp;6.06(c) or (ii)&nbsp;Bank Direction Agreements
have already been delivered pursuant to Section&nbsp;3.01(g). </FONT></P>

<P><FONT SIZE=2><A
NAME="kf2063_section_6.07._indemnities_by_the_collection_agent."> </A>
<A NAME="toc_kf2063_8"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.07.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Indemnities by the Collection Agent. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Without limiting any other rights that the Agent, any Investor, any Bank or any of their
respective Affiliates (each, a "</FONT><FONT SIZE=2><I>Special
Indemnified Party</I></FONT><FONT SIZE=2>") may have hereunder or under applicable law, and in
consideration of its appointment as Collection Agent, the Collection Agent hereby agrees to indemnify each Special Indemnified Party from and against any and all claims, losses and liabilities
(including reasonable attorneys' fees) (all of the foregoing being collectively referred to as "</FONT><FONT SIZE=2><I>Special Indemnified Amounts</I></FONT><FONT SIZE=2>") arising out of or
resulting from any of the following (excluding, however, (a)&nbsp;Special Indemnified Amounts to the extent found in a final non-appealable judgment of a court of competent jurisdiction
to have resulted from gross negligence or willful misconduct on the part of such Special Indemnified Party, (b)&nbsp;recourse for uncollectible Receivables or (c)&nbsp;any taxes (other than Taxes
or Other Taxes)incurred by such Special Indemnified Party arising out of or as a result of this Agreement or the ownership of Receivable Interests or in respect of any Receivable or any Contract): </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;any
representation or warranty made or deemed made by the Collection Agent pursuant to Section&nbsp;4.02(g) hereof which shall have been incorrect in any respect
when made or any other representation or warranty or statement made or deemed made by the Collection Agent under or in connection with this Agreement which shall have been incorrect in any material
respect when made; </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>36</FONT></P>

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<UL>

<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;the failure by the Collection Agent to comply with any applicable law, rule or regulation with respect to any Pool Receivable or Contract; or the failure of any
Pool Receivable or Contract to conform to any such applicable law, rule or regulation; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;the
failure to have filed, or any delay in filing, financing statements or other similar instruments or documents under the UCC of any applicable jurisdiction or
other applicable laws with respect to any Receivables in, or purporting to be in, the Receivables Pool, the Contracts and the Related Security and Collections in respect thereof, whether at the time
of any purchase or reinvestment or at any subsequent time; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;any
failure of the Collection Agent to perform its duties or obligations in accordance with the provisions of this Agreement; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;the
commingling of Collections of Pool Receivables at any time by the Collection Agent with other funds; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;any
action or omission by the Collection Agent reducing or impairing the rights of the Investors or the Banks with respect to any Pool Receivable or the value of
any Pool Receivable; </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;(vii)&nbsp;any
Collection Agent Fees or other costs and expenses payable to any replacement Collection Agent, to the extent a current market rate fee and to the extent in
excess of the Collection Agent Fees payable to the Collection Agent hereunder; or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;(viii)&nbsp;any
claim brought by any Person other than a Special Indemnified Party arising from any activity by the Collection Agent or its Affiliates in servicing,
administering or collecting any Receivable. </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kf2063_article_vii_events_of_termination"> </A>
<A NAME="toc_kf2063_9"> </A>
<BR></FONT><FONT SIZE=2><B>ARTICLE VII    <BR>    <BR>    EVENTS OF TERMINATION    <BR>  </B></FONT></P>

<P><FONT SIZE=2><A
NAME="kf2063_section_7.01._events_of_termination."> </A>
<A NAME="toc_kf2063_10"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;SECTION 7.01.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Events of Termination. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;If any of the following events ("</FONT><FONT SIZE=2><I>Events of Termination</I></FONT><FONT SIZE=2>") shall
occur and be continuing: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The
Collection Agent (i)&nbsp;shall fail to perform or observe any term, covenant or agreement under this Agreement (other than as referred to in
clause&nbsp;(ii) of this subsection (a)) and such failure shall remain unremedied for five Business Days, or in the case of a failure of the Collection Agent to deliver any Monthly Report or Weekly
Report when required hereunder, three Business Days or (ii)&nbsp;shall fail to make when due any payment or deposit to be made by it under this Agreement; or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The
Seller shall fail to make any payment required under Section&nbsp;2.04(e); or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Any
representation or warranty made or deemed made by the Seller, the Originator, Dal-Tile International, Dal-Tile Group or the Collection
Agent (or any of their respective officers) under or in connection with this Agreement or any other Transaction Document or any information or report delivered by the Seller, the Originator,
Dal-Tile International, Dal-Tile Group or the Collection Agent pursuant to this Agreement or any other Transaction Document shall prove to have been incorrect or untrue in any
material respect when made or deemed made or delivered and, solely in the case of the representation made or deemed made by the Collection Agent pursuant to Section&nbsp;4.02(g) hereof, such
representation shall remain incorrect on the fifth Business Day following the end of the Fiscal Month in which such representation is made; or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The
Seller, the Originator, Dal-Tile International or Dal-Tile Group shall fail to perform or observe any other term, covenant or agreement
contained in any Transaction Document on its part to be
performed or observed and any such failure shall remain unremedied for 10 Business Days (</FONT><FONT SIZE=2><I>provided, however</I></FONT><FONT SIZE=2>, that no grace period shall be permitted for
(X)&nbsp;any failure by the Seller or the </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>37</FONT></P>

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<P><FONT SIZE=2>
Originator (as Collection Agent or otherwise) under any of Sections 5.01(a), (d), (e), (f), (g), (h), (k)(iv), (k)(viii), (l), (m), (n), (o), (p), (q), (r)&nbsp;or (t)&nbsp;hereof) or
(Y)&nbsp;any failure of Dal-Tile International under Sections 7(a),(b) or (c)&nbsp;of the Parent Undertaking Agreement; or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Dal-Tile
International, Dal-Tile Group or the Originator shall fail to pay any principal of or premium or interest on any of its Debt (other
than Debt outstanding under the Credit Agreement) which is outstanding in a principal amount of at least $5,000,000 in the aggregate when the same becomes due and payable (whether by scheduled
maturity, required prepayment, acceleration, demand or otherwise), and such failure is not waived by the applicable lenders or other Persons and shall continue after the applicable grace period, if
any, specified in the agreement or instrument relating to such Debt; or any other event shall occur or condition shall exist under any agreement or instrument relating to any such Debt and shall
continue after the applicable grace period, if any, specified in such agreement or instrument, if the effect of such event or condition is to accelerate the maturity of such Debt; or any such Debt
shall be declared to be due and payable, or required to be prepaid (other than by a regularly scheduled required prepayment), redeemed, purchased or defeased, or an offer to repay, redeem, purchase or
defease such Debt shall be required to be made, in each case prior to the stated maturity thereof; or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;Other
than pursuant to the terms hereof, any purchase or any reinvestment pursuant to this Agreement shall for any reason cease to create, or any Receivable
Interest shall for any reason cease to be, a valid and perfected first priority undivided percentage ownership interest to the extent of the pertinent Receivable Interest in each applicable Pool
Receivable and the Related Security and Collections with respect thereto; or the security interest created pursuant to Section&nbsp;2.11 shall for any reason cease to be a valid and perfected first
priority security interest in the collateral security referred to in that section; or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;Dal-Tile
International, Dal-Tile Group, the Originator or the Seller shall generally not pay its debts as such debts become due, or shall
admit in writing its inability to pay its debts generally, or shall make a general assignment for the benefit of creditors; or any proceeding shall be instituted by or against Dal-Tile
International, Dal-Tile Group, the Originator or the Seller seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment,
protection, relief, or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking the entry of an order for relief or the
appointment of a receiver, trustee, custodian or other similar official for it or for any substantial part of its property and, in the case of any such proceeding instituted against
Dal-Tile International, Dal-Tile Group, the Originator or the Seller (but not instituted by Dal-Tile International, Dal-Tile Group, the Originator or
the Seller), either such proceeding shall remain undismissed or unstayed for a period of 45&nbsp;days, or any of the actions sought in such proceeding (including, without limitation, the entry of an
order for relief against, or the appointment of a receiver, trustee, custodian or other similar official for, Dal-Tile International, Dal-Tile Group, the Originator or the
Seller or for any substantial part of the Seller's,
Dal-Tile International's, Dal-Tile Group's or the Originator's property) shall occur; or Dal-Tile International, Dal-Tile Group, the Originator or the
Seller shall take any corporate or other action to authorize any of the actions set forth above in this subsection (g); or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;As
of the last day of any Fiscal Month, (i)&nbsp;the Default Ratio for such Fiscal Month shall exceed 4.50%; (ii)&nbsp;the average of the Default Ratio for each
of such Fiscal Month and the two prior Fiscal Months shall exceed 4.40%; (iii)&nbsp;the Delinquency Ratio for such Fiscal Month shall exceed 6.75%; (iv)&nbsp;the average of the Delinquency Ratio
for each of such Fiscal Month and the two prior Fiscal Months shall exceed 6.50%; (v)&nbsp;the Performance Dilution Ratio for such Fiscal Month shall exceed 5.50%; or (vi)&nbsp;the average of the
Performance Dilution Ratio for each of such Fiscal Month and the two prior Fiscal Months shall exceed 4.50% or </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>38</FONT></P>

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<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;The sum of the Receivable Interests shall be greater than 100% as of the end of any Fiscal Month and shall remain greater than 100% on the fifth Business Day
thereafter; or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;There
shall have occurred any material adverse change in the business, financial condition or operations of the Seller since September&nbsp;28, 2001, the
Originator since June&nbsp;29, 2001, or Dal-Tile International and its consolidated Subsidiaries taken as a whole since June&nbsp;29, 2001, that could reasonably be expected to
adversely affect the value or collectibility of the Receivable Interests or the Receivables Pool or the ability of the Seller, the Originator or the Collection Agent to collect Pool Receivables or
otherwise perform its obligations under this Agreement or the other Transaction Documents; or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;An
"Event of Termination" or "Facility Termination Date" shall occur under the PCA, or the PCA or the Parent Undertaking Agreement shall cease to be in full force
and effect; or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;100%
of the capital stock of Dal-Tile Group shall cease to be owned, of record and beneficially, directly or indirectly, by Dal-Tile
International unless Dal-Tile Group shall have been merged with and into Dal-Tile International; or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;100%
of the capital stock of the Originator shall cease to be owned, of record and beneficially, directly or indirectly, by Dal-Tile Group or
Dal-Tile International; or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;100%
of the capital stock of the Seller shall cease to be owned, of record and beneficially, directly, by the Originator; or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;At
any time when the Agent is a party to the Credit Agreement, there shall have occurred any Event of Default under the Credit Agreement, as in effect on the date
hereof and giving effect solely to any subsequent amendments or waivers thereto which are granted at a time when the Agent is a party to the Credit Agreement but only to the extent that a written
statement (which such statement shall be requested by the Agent to the extent the Agent deems such statement to be required under the terms of any agreement governing the activities of any Investor)
has been obtained from each Relevant Rating Agency that the rating of the commercial paper of each Investor that is rated by such Relevant Rating Agency will not be downgraded or withdrawn solely as a
result of such amendment or waiver; or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;At
any time when the Agent is not a party to the Credit Agreement, there shall have occurred any (i)&nbsp;default under the financial condition covenants
contained in Section&nbsp;8.1 of the Credit Agreement, as in effect on the date hereof and giving effect solely to any subsequent amendments or waivers thereto which were granted at a time when the
Agent was a party to the Credit Agreement (but only to the extent that a written statement (which such statement shall be requested by the Agent to the extent the Agent deems such statement to be
required under the terms of any agreement governing the activities of any Investor) has been obtained from each Relevant Rating Agency that the rating of the commercial paper of each Investor that is
rated by such Relevant Rating Agency will not be downgraded or withdrawn solely as a result of such amendment or waiver) or which are specifically approved in writing by the Agent at a time when the
Agent is not a party to the Credit Agreement, or (ii)&nbsp;default under any other provision of the Credit Agreement which is not waived by the applicable lenders thereunder; then, and in any such
event, any or all of the following actions may be taken by notice to the Seller: (x)&nbsp;the Investor or the Agent may declare the Facility Termination Date to have occurred (in which case the
Facility Termination Date shall be deemed to have occurred), (y)&nbsp;the Agent may declare the Commitment Termination Date to have occurred (in which case the Commitment Termination Date shall be
deemed to have occurred), and (z)&nbsp;without limiting any right under this Agreement to replace the Collection Agent, the Agent may designate another Person to succeed the Originator as the
Collection Agent; </FONT><FONT SIZE=2><I>provided,</I></FONT><FONT SIZE=2> that, automatically upon the occurrence of any event (without any requirement for the passage of time or the giving of
notice) described in paragraph&nbsp;(g) of this Section&nbsp;7.01, the Facility Termination Date and the Commitment Termination Date shall occur, the </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>39</FONT></P>

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<P><FONT SIZE=2>
Originator (if it is then serving as the Collection Agent) shall cease to be the Collection Agent, and the Agent or its designee shall become the Collection Agent; and </FONT> <FONT SIZE=2><I>provided, further,</I></FONT><FONT SIZE=2> that,
automatically upon the occurrence of any event described in paragraph&nbsp;(i) of this Section&nbsp;7.01 which continues
for 5 Business Days, the Facility Termination Date and the Commitment Termination Date shall occur. Upon any such declaration or designation or upon such automatic termination, the Investors, the
Banks and the Agent shall have, in addition to the rights and remedies which they may have under this Agreement, all other rights and remedies provided after default under the UCC and under other
applicable law, which rights and remedies shall be cumulative. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kf2063_article_viii_the_agent"> </A>
<A NAME="toc_kf2063_11"> </A>
<BR></FONT><FONT SIZE=2><B>ARTICLE VIII    <BR>    <BR>    THE AGENT    <BR>  </B></FONT></P>

<P><FONT SIZE=2><A
NAME="kf2063_section_8.01._authorization_and_action."> </A>
<A NAME="toc_kf2063_12"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.01.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Authorization and Action. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Each Investor and each Bank hereby appoints and authorizes the Agent to take such action as agent on its
behalf and to exercise such powers under this
Agreement as are delegated to the Agent by the terms hereof, together with such powers as are reasonably incidental thereto. </FONT></P>

<P><FONT SIZE=2><A
NAME="kf2063_section_8.02._agent_s_reliance,_etc."> </A>
<A NAME="toc_kf2063_13"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.02.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Agent's Reliance, Etc. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Neither the Agent nor any of its directors, officers, agents or employees shall be liable for any action taken
or omitted to be taken by it or them as Agent
under or in connection with this Agreement (including, without limitation, the Agent's servicing, administering or collecting Pool Receivables as Collection Agent), except for its or their own gross
negligence or willful misconduct. Without limiting the generality of the foregoing, the Agent: (a)&nbsp;may consult with legal counsel (including counsel for the Seller, the Originator and the
Collection Agent), independent certified public accountants and other experts selected by it and shall not be liable for any action taken or omitted to be taken in good faith by it in accordance with
the advice of such counsel, accountants or experts; (b)&nbsp;makes no warranty or representation to any Investor or Bank (whether written or oral) and shall not be responsible to any Investor or
Bank for any statements, warranties or representations (whether written or oral) made in or in connection with this Agreement; (c)&nbsp;shall not have any duty to ascertain or to inquire as to the
performance or observance of any of the terms, covenants or conditions of this Agreement on the part of the Seller or the Collection Agent or to inspect the property (including the books and records)
of the Seller or the Collection Agent; (d)&nbsp;shall not be responsible to any Investor or Bank for the due execution, legality, validity, enforceability, genuineness, sufficiency or value of this
Agreement or any other instrument or document furnished pursuant hereto; and (e)&nbsp;shall incur no liability under or in respect of this Agreement by acting upon any notice (including notice by
telephone), consent, certificate or other instrument or writing (which may be by telecopier or telex) believed by it to be genuine and signed or sent by the proper party or parties. </FONT></P>

<P><FONT SIZE=2><A
NAME="kf2063_section_8.03._credit_lyonnais_and_affiliates."> </A>
<A NAME="toc_kf2063_14"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.03.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Credit Lyonnais and Affiliates. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The obligation of Credit Lyonnais to purchase Receivable Interests under this Agreement may be
satisfied by Credit Lyonnais or any of its Affiliates. With
respect to any Receivable Interest or interest therein owned by it, Credit Lyonnais shall have the same rights and powers under this Agreement as any Bank and may exercise the same as though it were
not the Agent. Credit Lyonnais and any of its Affiliates may generally engage in any kind of business with the Seller, Dal-Tile International, the Originator, the Collection Agent or any
Obligor, any of their respective Affiliates and any Person who may do business with or own securities of the Seller, Dal-Tile International, the Originator, the Collection Agent or any
Obligor or any of their respective Affiliates, all as if Credit Lyonnais were not the Agent and without any duty to account therefor to the Investors or the Banks. </FONT></P>

<P><FONT SIZE=2><A
NAME="kf2063_section_8.04._bank_s_purchase_decision."> </A>
<A NAME="toc_kf2063_15"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.04.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Bank's Purchase Decision. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Each Bank acknowledges that it has, independently and without reliance upon the Agent, any of its Affiliates
or any other Bank and based on such documents and
information as it has deemed appropriate, made its own evaluation and decision to enter into this Agreement. Each Bank also acknowledges that it will, independently and without </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>40</FONT></P>

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<P><FONT SIZE=2>
reliance upon the Agent, any of its Affiliates or any other Bank and based on such documents and information as it shall deem appropriate at the time, continue to make its own decisions in taking or
not taking action under this Agreement. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kf2063_article_ix_indemnification"> </A>
<A NAME="toc_kf2063_16"> </A>
<BR></FONT><FONT SIZE=2><B>ARTICLE IX    <BR>    <BR>    INDEMNIFICATION    <BR>  </B></FONT></P>

<P><FONT SIZE=2><A
NAME="kf2063_section_9.01._indemnities_by_the_seller."> </A>
<A NAME="toc_kf2063_17"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 9.01.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Indemnities by the Seller. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Without limiting any other rights that the Agent, the Investors, the Banks or any of their respective
Affiliates (each, an "</FONT><FONT SIZE=2><I>Indemnified
Party</I></FONT><FONT SIZE=2>") may have hereunder or under applicable law, the Seller hereby agrees to indemnify each Indemnified Party from and against any and all claims, losses and liabilities
(including reasonable attorneys' fees) (all of the foregoing being collectively referred to as "</FONT><FONT SIZE=2><I>Indemnified Amounts</I></FONT><FONT SIZE=2>") arising out of or resulting from
this Agreement or the other Transaction Documents or the use of proceeds of purchases or reinvestments or the ownership of Receivable Interests or in respect of any Receivable or any Contract,
excluding, however, (a)&nbsp;Indemnified Amounts to the extent found in a final, non-appealable judgment of a court of competent jurisdiction to have resulted from gross negligence or
willful misconduct on the part of such Indemnified Party, (b)&nbsp;recourse for uncollectible Receivables or (c)&nbsp;any taxes (other than Taxes or Other Taxes)incurred by such Indemnified Party
arising out of or as a result of this Agreement or the ownership of Receivable Interests or in respect of any Receivable or any Contract. Without limiting the foregoing, the Seller shall pay on demand
to each Indemnified Party any and all amounts necessary to indemnify such Indemnified Party from and against any and all Indemnified Amounts relating to or resulting from any of the following (subject
to the exclusions included in clauses (a)&nbsp;and (c)&nbsp;of the previous sentence): </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;the
characterization in any Monthly Report, Weekly Report or other written statement made by or on behalf of the Seller of any Receivable as an Eligible Receivable
or as included in the Net Receivables Pool Balance which, as of the date of such Monthly Report, Weekly Report or other statement, is not an Eligible Receivable or should not be included in the Net
Receivables Pool Balance; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;any
representation or warranty or statement made or deemed made by the Seller (or any of its officers) under or in connection with this Agreement or any of the
other Transaction Documents which shall have been incorrect in any material respect when made; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;the
failure by the Seller or the Originator to comply with any applicable law, rule or regulation with respect to any Pool Receivable or the related Contract; or
the failure of any Pool Receivable or the related Contract to conform to any such applicable law, rule or regulation; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;the
failure to vest in the Investors or the Banks, as the case may be, (a)&nbsp;a perfected undivided percentage ownership interest, to the extent of each
Receivable Interest, in the Receivables in, or purporting to be in, the Receivables Pool and the Related Security and Collections in respect thereof, or (b)&nbsp;a perfected security interest as
provided in Section&nbsp;2.11, in each case free and clear of any Adverse Claim; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;the
failure to have filed, or any delay in filing, financing statements or other similar instruments or documents under the UCC of any applicable jurisdiction or
other applicable laws with respect to any Receivables in, or purporting to be in, the Receivables Pool and the Related Security and Collections in respect thereof, whether at the time of any purchase
or reinvestment or at any subsequent time; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;any
dispute, claim, offset or defense (other than discharge in bankruptcy of the Obligor or other financial inability of the Obligor to pay) of the Obligor to the
payment of any Receivable in, or purporting to be in, the Receivables Pool (including, without limitation, a defense based on </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>41</FONT></P>

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<UL>

<P><FONT SIZE=2>
such Receivable or the related Contract not being a legal, valid and binding obligation of such Obligor enforceable against it in accordance with its terms), or any other claim resulting from the sale
of the merchandise or services related to such Receivable or the furnishing or failure to furnish such merchandise or services or relating to collection activities with respect to such Receivable (if
such collection activities were performed by the Seller or any of its Affiliates acting as Collection Agent); </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;(vii)&nbsp;any
failure of the Seller to perform its duties or obligations in accordance with the provisions hereof or to perform its duties or obligations under the
Contracts; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;(viii)&nbsp;any
products liability or other claim arising out of or in connection with merchandise, insurance or services which are the subject of any Contract; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ix)&nbsp;the
commingling of Collections of Pool Receivables at any time with other funds; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(x)&nbsp;any
investigation, litigation or proceeding related to this Agreement or the use of proceeds of purchases or reinvestments or the ownership of Receivable Interests
or in respect of any Receivable or Related Security or Contract; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(xi)&nbsp;any
failure of the Seller to comply with its covenants contained in this Agreement or any other Transaction Document; or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;(xii)&nbsp;any
claim brought by any Person other than an Indemnified Party arising from any activity by the Seller or any Affiliate of the Seller in servicing, administering
or collecting any Receivable. </FONT></P>

</UL>

<P><FONT SIZE=2>It
is expressly agreed and understood by the parties hereto (i)&nbsp;that the foregoing indemnification is not intended to, and shall not, constitute a guarantee of or other recourse for the
collectibility or payment of the Receivables and (ii)&nbsp;that nothing in this Section&nbsp;9.01 shall require the Seller to indemnify any Person for Receivables which are not collected, not paid
or uncollectible solely on account of the insolvency, bankruptcy, or financial inability to pay of the applicable Obligor. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>42</FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kg2063_article_x_miscellaneous"> </A>
<A NAME="toc_kg2063_1"> </A>
<BR></FONT><FONT SIZE=2><B>ARTICLE X    <BR>    <BR>    MISCELLANEOUS    <BR>  </B></FONT></P>

<P><FONT SIZE=2><A
NAME="kg2063_section_10.01._amendments,_etc."> </A>
<A NAME="toc_kg2063_2"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 10.01.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Amendments, Etc. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;No amendment or waiver of any provision of this Agreement or consent to any departure by the Seller therefrom shall
be effective unless in a writing signed by
the Agent, as agent for the Investors and the Banks (and, in the case of any amendment, also signed by the Seller and the Originator), and then such amendment, waiver or consent shall be effective
only in the specific instance and for the specific purpose for which given; </FONT><FONT SIZE=2><I>provided, however</I></FONT><FONT SIZE=2>, that no amendment, waiver or consent shall, unless in
writing and signed by the Collection Agent in addition to the Agent, affect the rights or duties of the Collection Agent under this Agreement. Notwithstanding the foregoing (but only to the extent
required by any Relevant Rating Agency), no material amendment to or material waiver of any provision of this Agreement, nor consent to any material departure by the Seller or Collection Agent
therefrom, shall be effective unless a written statement is obtained from such Relevant Rating Agency that the rating of the commercial paper of each Investor that is rated by such Relevant Rating
Agency will not be downgraded or withdrawn solely as a result of such amendment, waiver or consent (provided that no such statement shall be required in connection with an amendment the sole purpose
of which is to extend the Commitment Termination Date or the Facility Termination Date or to cure any ambiguity). No failure on the part of the Investors, the Banks or the Agent to exercise, and no
delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right hereunder preclude any other or further exercise thereof or the
exercise of any other right. </FONT></P>

<P><FONT SIZE=2><A
NAME="kg2063_section_10.02._notices,_etc."> </A>
<A NAME="toc_kg2063_3"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 10.02.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Notices, Etc. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;All notices and other communications hereunder shall, unless otherwise stated herein, be in writing (which shall include
facsimile communication) and faxed or
delivered, to each party hereto, at its address set forth under its name on the signature pages hereof or at such other address as shall be designated by such party in a written notice to the other
parties hereto. Notices and communications by facsimile shall be effective when sent (and shall be followed by hard copy sent by regular mail), and notices and communications sent by other means shall
be effective when received. </FONT></P>

<P><FONT SIZE=2><A
NAME="kg2063_section_10.03._assignability."> </A>
<A NAME="toc_kg2063_4"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 10.03.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Assignability. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a)&nbsp;This Agreement and the Investors' rights and obligations herein (including ownership of each Receivable
Interest) shall be assignable by the
Investors and their successors and assigns. Each assignor of a Receivable Interest or any interest therein shall notify the Agent and the Seller of any such
assignment. Each assignor of a Receivable Interest or any interest therein may, in connection with the assignment or participation, disclose to the assignee or participant any information relating to
the Seller, Dal-Tile International, Dal-Tile Group or the Originator, including the Receivables, furnished to such assignor by or on behalf of the Seller or by the Agent;
provided that such assignee agrees in writing to be bound by the provisions of Section&nbsp;10.07(b). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Each
Bank may assign to any Eligible Assignee all or a portion of its rights and obligations under this Agreement (including, without limitation, all or a portion
of its Bank Commitment and any Receivable Interests or interests therein owned by it). The parties to each such assignment shall execute and deliver to the Agent an Assignment and Acceptance. In
addition, each Bank may grant a participation to any Eligible Assignee or any Person which would be an Eligible Assignee but for the fact that its Debt Rating is not at least
A-1/P-1 in all or a portion of its rights and obligations under this Agreement (including, without limitation, all or a portion of its Bank Commitment and any Receivable
Interests or interests therein owned by it). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;This
Agreement and the rights and obligations of the Agent herein shall be assignable by the Agent and its successors and assigns. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The
Seller may not assign its rights or obligations hereunder or any interest herein without the prior written consent of the Agent. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>43</FONT></P>

<HR NOSHADE>
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<A NAME="page_kg2063_1_44"> </A>

<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;No Transferee that holds a participation shall receive any greater amount with respect to such participation pursuant to Section&nbsp;2.10 of this Agreement than
the Investor or Bank from whom such participation was transferred would have been entitled to receive in respect of the amount of the participation transferred by such Investor or Bank to such
participant had no such transfer occurred. </FONT></P>

<P><FONT SIZE=2><A
NAME="kg2063_section_10.04._costs,_expenses_and_taxes."> </A>
<A NAME="toc_kg2063_5"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 10.04.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Costs, Expenses and Taxes. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a)&nbsp;In addition to the rights of indemnification granted under Section&nbsp;9.01 hereof, the Seller
agrees to pay on demand all reasonable costs and
expenses in connection with the preparation, execution, delivery and administration (including periodic auditing and the other activities contemplated in Section&nbsp;5.02; </FONT> <FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2>, that so long as no
Event of Termination or Incipient Event of Termination shall have occurred and be continuing, the liability of the Seller
with respect to such periodic auditing during any one calendar year shall not exceed $6,000) of this Agreement, any Asset Purchase Agreement and the other documents and agreements to be delivered
hereunder, including, without limitation, the reasonable fees and out-of-pocket expenses of counsel for the Agent, Credit Lyonnais, Atlantic, and their respective Affiliates
with respect thereto and with respect to advising the Agent, Credit Lyonnais, Atlantic, and their respective Affiliates as to their rights and remedies under this Agreement, and all costs and
expenses, if any (including reasonable counsel fees and expenses), of the Agent, Credit
Lyonnais, the Investors, the Banks and their respective Affiliates, in connection with the enforcement of this Agreement and the other documents and agreements to be delivered hereunder. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;In
addition, the Seller shall pay, to the extent not included in the calculation of Yield, (i)&nbsp;any and all commissions of placement agents and dealers in
respect of commercial paper notes issued by Atlantic to fund the purchase or maintenance of any Receivable Interest, and (ii)&nbsp;any and all costs and expenses of any issuing and paying agent or
other Person responsible for the administration of Atlantic's commercial paper program in connection with the preparation, completion, issuance, delivery or payment of commercial paper notes issued to
fund the purchase or maintenance of any Receivable Interest. </FONT></P>

<P><FONT SIZE=2><A
NAME="kg2063_section_10.05._united_s__kg202021"> </A>
<A NAME="toc_kg2063_6"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 10.05.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;United States Federal Income Tax Treatment. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Each of the Seller, the Agent, the Collection Agent, each Investor, each Bank, and each
Transferee, if any, agrees to treat (i)&nbsp;each transfer of a
Receivable Interest by Seller in exchange for Capital with respect to such Receivable Interest pursuant to Article&nbsp;II of this Agreement as a loan of such Capital to Seller secured by such
Receivable Interest and (ii)&nbsp;Seller's payment of Yield to each Investor, each Bank, or each Transferee, if any, as a payment of interest, in the case of (i)&nbsp;and (ii), for all United
States federal income tax purposes and neither the Seller, the Agent, the Collection Agent, any Investor, any Bank, nor any Transferee shall take any action inconsistent with such treatment for United
States federal income tax purposes. </FONT></P>

<P><FONT SIZE=2><A
NAME="kg2063_section_10.06._no_proceedings."> </A>
<A NAME="toc_kg2063_7"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 10.06.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;No Proceedings. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Each of the Seller, the Agent, the Collection Agent, each Investor, each Bank, each assignee of a Receivable Interest
or any interest therein and each entity
which enters into a commitment to purchase Receivable Interests or interests therein hereby agrees that it will not institute or join or encourage or assist any other Person in instituting against
Atlantic any proceeding of the type referred to in Section&nbsp;7.01(g) for one year and a day after the latest maturing commercial paper note issued by Atlantic is paid. </FONT></P>

<P><FONT SIZE=2><A
NAME="kg2063_section_10.07._confidentiality."> </A>
<A NAME="toc_kg2063_8"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 10.07.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Confidentiality. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a)&nbsp;Each of the Seller and the Collection Agent agrees to maintain the confidentiality of this Agreement and the
other Transaction Documents in
communications with third parties and otherwise; </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that this Agreement and the other Transaction Documents may be disclosed (i)&nbsp;to the
Originator, Dal-Tile Group and Dal-Tile International if they agree to hold such documents confidential, (ii)&nbsp;to the legal counsel and auditors of the Seller,
Dal-Tile International, the Originator and the Collection Agent if they agree to hold such documents confidential, (iii)&nbsp;to the extent required by applicable law or regulation or by
any court, regulatory body or agency having jurisdiction over such party and (iv)&nbsp;to other Persons to the extent </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>44</FONT></P>

<HR NOSHADE>
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<A NAME="page_kg2063_1_45"> </A>

<P><FONT SIZE=2>
such disclosure is made pursuant to a written agreement of confidentiality in form and substance reasonably satisfactory to the Agent; and </FONT><FONT SIZE=2><I>provided,
further,</I></FONT><FONT SIZE=2> that such party shall have no obligation of
confidentiality in respect of any information which may be generally available to the public or becomes available to the public through no fault of such party. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Each
Investor, each Bank and the Agent agrees to maintain the confidentiality of all information with respect to the Seller, Dal-Tile International, the
Originator or the Receivables Pool (including the Monthly Reports and Weekly Reports) furnished or delivered to it pursuant to this Agreement; </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2>,
that such information may be disclosed (i)&nbsp;to such party's legal counsel and auditors and to such party's assignees and participants and potential assignees and participants and their
respective counsel if they agree to hold it confidential on the same terms as the disclosing party, (ii)&nbsp;to the Relevant Rating Agencies and the providers of liquidity or credit enhancement for
each Investor, and (iii)&nbsp;to the extent required by applicable law or regulation or by any court, regulatory body or agency having jurisdiction over such party; and </FONT> <FONT SIZE=2><I>provided, further</I></FONT><FONT SIZE=2>, that such
party shall have no obligation of confidentiality in respect of any information which may be generally available to the
public or becomes available to the public through no fault of such party. </FONT></P>

<P><FONT SIZE=2><A
NAME="kg2063_section_10.08._governing_law."> </A>
<A NAME="toc_kg2063_9"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2><B>SECTION 10.08.</B></FONT><FONT SIZE=2><I>&nbsp;&nbsp;</I></FONT><FONT SIZE=2><B><I>GOVERNING LAW. </I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;</FONT><FONT SIZE=2><B>THIS AGREEMENT SHALL, IN ACCORDANCE
WITH SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK, BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO ANY CONFLICT OF LAWS PRINCIPLES THEREOF THAT WOULD CALL FOR THE APPLICATION OF THE LAWS OF ANY OTHER
JURISDICTION, EXCEPT TO THE EXTENT THAT, PURSUANT TO THE UCC OF THE STATE OF NEW YORK, THE PERFECTION AND THE EFFECT OF PERFECTION OR NON-PERFECTION OF THE INTERESTS OF THE INVESTORS AND
THE BANKS IN THE RECEIVABLES AND THE PCA ARE GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF NEW YORK.</B></FONT></P>

<P><FONT SIZE=2><A
NAME="kg2063_section_10.09._execution_in_counterparts."> </A>
<A NAME="toc_kg2063_10"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 10.09.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Execution in Counterparts. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;This Agreement may be executed in any number of counterparts, each of which when so executed shall be
deemed to be an original and all of which when taken
together shall constitute one and the same agreement. </FONT></P>

<P><FONT SIZE=2><A
NAME="kg2063_section_10.10._survival_of_termination."> </A>
<A NAME="toc_kg2063_11"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;SECTION 10.10.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Survival of Termination. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The provisions of Sections&nbsp;2.08, 2.09, 6.07, 9.01, 10.04, 10.06, 10.07 and 10.13 shall survive any
termination of this Agreement. </FONT></P>

<P><FONT SIZE=2><A
NAME="kg2063_section_10.11._consent_to_jurisdiction."> </A>
<A NAME="toc_kg2063_12"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 10.11.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Consent to Jurisdiction. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a)&nbsp;Each party hereto hereby irrevocably submits to the non-exclusive jurisdiction of any New York State
or Federal court sitting in New
York City in any action or proceeding arising out of or relating to this Agreement, and each party hereto hereby irrevocably agrees that all claims in respect of such action or proceeding may be heard
and determined in such New York State court or, to the extent permitted by law, in such Federal court. The parties hereto hereby irrevocably waive, to the fullest extent they may effectively do so,
the defense of an inconvenient forum to the maintenance of such action or proceeding. The parties hereto agree that a final judgment in any such action or proceeding shall be
conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Each
of the Seller and the Collection Agent consents to the service of any and all process in any such action or proceeding by the mailing of copies of such process
to it at its address specified in Section&nbsp;10.02. Nothing in this Section&nbsp;10.10 shall affect the right of the parties hereto to serve legal process in any other manner permitted by law. </FONT></P>

<P><FONT SIZE=2><A
NAME="kg2063_section_10.12._waiver_of_jury_trial."> </A>
<A NAME="toc_kg2063_13"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2><B>SECTION 10.12.</B></FONT><FONT SIZE=2><I>&nbsp;&nbsp;</I></FONT><FONT SIZE=2><B><I>WAIVER OF JURY TRIAL. </I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;</FONT><FONT SIZE=2><B>EACH PARTY HERETO HEREBY
WAIVES, TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, TRIAL BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING,
DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>45</FONT></P>

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<A NAME="page_kg2063_1_46"> </A>

<P><FONT SIZE=2><B> TO, OR CONNECTED WITH THIS AGREEMENT OR ANY DOCUMENT EXECUTED OR DELIVERED PURSUANT HERETO</B></FONT><FONT SIZE=2>. </FONT></P>

<P><FONT SIZE=2><A
NAME="kg2063_section_10.13._excess_funds."> </A>
<A NAME="toc_kg2063_14"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 10.13.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Excess Funds. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Each of the Seller, the Collection Agent, the Originator, the Banks and the Agent agrees that any Investor shall be
liable for any claims that such party may
have against such Investor only to the extent that such Investor has excess funds and to the extent such excess funds are insufficient to satisfy the obligations of such Investor hereunder, such
Investor shall have no liability with respect to any amount of such obligations remaining unpaid and such unpaid amount shall not constitute a claim against such Investor. Any and all claims against
any Investor shall be subordinate to the claims against such Investor of the holders of such Investor's commercial paper notes and any Person providing liquidity support to such Investor. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, the parties have caused this Agreement to be executed by their respective officers thereunto duly authorized, as of the date first above written. </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="44%"><FONT SIZE=2>SELLER</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=5><FONT SIZE=2>DTSC, INC.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="44%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="44%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="44%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><HR NOSHADE><FONT SIZE=2> Title:</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="44%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><BR>
c/o Global Securitization Services, LLC<BR>
103 Foulk Road, Suite 205-11<BR>
Wilmington, Delaware 19803<BR>
Attention: Frank B. Bilotta<BR>
Facsimile No. (302) 652-8667</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="44%"><FONT SIZE=2><BR>
INVESTOR:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=5><FONT SIZE=2><BR>
ATLANTIC ASSET SECURITIZATION CORP.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="44%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><BR>
Credit Lyonnais New York Branch, as Attorney-in-Fact</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="44%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
By</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="44%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="44%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="44%" ALIGN="CENTER"><HR NOSHADE><FONT SIZE=2> Vice President</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="44%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="44%"><FONT SIZE=2><BR>
c/o Lord Securities Corporation<BR>
2 Wall Street, 19th Floor<BR>
New York, N.Y. 10006<BR>
Attention: Dwight Jenkins<BR>
Facsimile No. (212)346-9012</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="44%"><FONT SIZE=2><BR>
AGENT:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=5><FONT SIZE=2><BR>
CREDIT LYONNAIS NEW YORK BRANCH, as Agent</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="44%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
By</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="44%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="44%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3 ALIGN="CENTER"><HR NOSHADE><FONT SIZE=2> Vice President</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="44%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><BR>
1301 Avenue of the Americas<BR>
New York, N.Y. 10019<BR>
Attention: Gary Miller<BR>
Facsimile No. (212)459-3258</FONT></TD>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=2>46</FONT></P>

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<A NAME="page_kg2063_1_47"> </A>
<!-- end of table folio -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="44%"><FONT SIZE=2><BR>
BANK:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=5><FONT SIZE=2><BR>
CREDIT LYONNAIS NEW YORK BRANCH</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="44%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="44%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="44%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><HR NOSHADE><FONT SIZE=2> Percentage Interest: 100%</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="44%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><BR>
1301 Avenue of the Americas<BR>
New York, N.Y. 10019<BR>
Attention: Gary Miller<BR>
Facsimile No. (212)459-3258</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="44%" VALIGN="TOP"><FONT SIZE=2><BR>
COLLECTION AGENT AND ORIGINATOR:</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=5 VALIGN="TOP"><FONT SIZE=2><BR>
DAL-TILE CORPORATION</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="44%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="44%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="44%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><HR NOSHADE><FONT SIZE=2> Title:</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="44%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><BR>
7834 C.F. Hawn Freeway<BR>
P.O.&nbsp;Box 170130<BR>
Dallas, Texas 75217<BR>
Attention: Scott Veldman<BR>
Facsimile Number: (214)&nbsp;309-3499</FONT></TD>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=2>47</FONT></P>

<HR NOSHADE>
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<A NAME="page_kg2063_1_48"> </A>
<P ALIGN="RIGHT"><FONT SIZE=2><A
NAME="kg2063_schedule_i_to_receivables_purchase_agreement"> </A>
<A NAME="toc_kg2063_15"> </A>
<BR></FONT><FONT SIZE=2>Schedule&nbsp;I to<BR></FONT><FONT SIZE=2><I>Receivables Purchase Agreement    <BR>  </I></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kg2063_lock-box_banks"> </A>
<A NAME="toc_kg2063_16"> </A>
<BR></FONT><FONT SIZE=2><I>Lock-Box Banks    <BR>  </I></FONT></P>

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<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="21%"><FONT SIZE=1><B>Bank</B></FONT><HR NOSHADE></TD>
<TD WIDTH="18%"><FONT SIZE=1>&nbsp;</FONT></TD>
<TD WIDTH="21%" ALIGN="CENTER"><FONT SIZE=1><B>P.O.&nbsp;Box</B></FONT><HR NOSHADE></TD>
<TD WIDTH="18%"><FONT SIZE=1>&nbsp;</FONT></TD>
<TD WIDTH="21%" ALIGN="CENTER"><FONT SIZE=1><B>Account Number</B></FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="21%" VALIGN="TOP"><FONT SIZE=2>Bank One, N.A. 1717 Main Street<BR>
Dallas, Texas 75201</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="21%" ALIGN="CENTER" VALIGN="TOP"><FONT SIZE=2>70671</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="21%" ALIGN="CENTER" VALIGN="TOP"><FONT SIZE=2>5596297</FONT></TD>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kg2063_collection_account"> </A>
<A NAME="toc_kg2063_17"> </A>
<BR></FONT><FONT SIZE=2><I>Collection Account    <BR>  </I></FONT></P>

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<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="21%"><FONT SIZE=1><B>Bank</B></FONT><HR NOSHADE></TD>
<TD WIDTH="18%"><FONT SIZE=1>&nbsp;</FONT></TD>
<TD WIDTH="21%" ALIGN="CENTER"><FONT SIZE=1><B>P.O.&nbsp;Box</B></FONT><HR NOSHADE></TD>
<TD WIDTH="18%"><FONT SIZE=1>&nbsp;</FONT></TD>
<TD WIDTH="21%" ALIGN="CENTER"><FONT SIZE=1><B>Account Number</B></FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="21%" VALIGN="TOP"><FONT SIZE=2>Bank of America, N.A.<BR>
901 Main Street<BR>
P.O.&nbsp;Box 832409<BR>
Dallas, Texas 75202</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="21%" ALIGN="CENTER" VALIGN="TOP"><FONT SIZE=2>N.A.</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="21%" ALIGN="CENTER" VALIGN="TOP"><FONT SIZE=2>3751842080</FONT></TD>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=2>48</FONT></P>

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<A NAME="page_kg2063_1_49"> </A>
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kg2063_schedule_iii_normal_concentrat__sch02951"> </A>
<A NAME="toc_kg2063_18"> </A>
<BR></FONT><FONT SIZE=2><B>SCHEDULE III    <BR>    <BR>    Normal Concentration Limits    <BR>    <BR>    Debt Rating of Obligor (S&amp;P/Moody's)    <BR>  </B></FONT></P>

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<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="17%"><FONT SIZE=2>Level I</FONT><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="17%"><FONT SIZE=2>Level II</FONT><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="17%"><FONT SIZE=2>Level III</FONT><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="22%"><FONT SIZE=2>Level IV</FONT><HR NOSHADE></TD>
</TR>
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<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="17%"><FONT SIZE=2>A-1+/P-1</FONT><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="17%"><FONT SIZE=2>A-1 /P-1</FONT><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="17%"><FONT SIZE=2>A-2/P-2</FONT><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="22%"><FONT SIZE=2>lower than A-2/P-2</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="17%"><FONT SIZE=2>Normal Concentration Limit</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP"><FONT SIZE=2>10%</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP"><FONT SIZE=2>8%</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP"><FONT SIZE=2>6%</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP"><FONT SIZE=2>3%</FONT></TD>
</TR>
</TABLE>
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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;In
the event that (a)&nbsp;the Debt Ratings fall within different Levels, the higher-numbered Level shall apply, and (b)&nbsp;the Debt Rating of either S&amp;P or Moody's (but not
both) is available or no Debt Rating is available from either S&amp;P or Moody's, then Level IV shall apply. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>49</FONT></P>

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<A NAME="page_kg2063_1_50"> </A>
<P ALIGN="RIGHT"><FONT SIZE=2><A
NAME="kg2063_schedule_iv_to_receivables_purchase_agreement"> </A>
<A NAME="toc_kg2063_19"> </A>
<BR></FONT><FONT SIZE=2>Schedule&nbsp;IV to<BR></FONT><FONT SIZE=2><I>Receivables Purchase Agreement    <BR>  </I></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kg2063_store_accounts"> </A>
<A NAME="toc_kg2063_20"> </A>
<BR></FONT><FONT SIZE=2><B>Store Accounts    <BR>  </B></FONT></P>

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<TH WIDTH="69%" ALIGN="LEFT"><FONT SIZE=1><B>DTC Store<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="6%" ALIGN="CENTER"><FONT SIZE=1><B>Bank</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="9%" ALIGN="CENTER"><FONT SIZE=1><B>Address</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="9%" ALIGN="CENTER"><FONT SIZE=1><B>Account No.</B></FONT><HR NOSHADE></TH>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=2>50</FONT></P>

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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>4
<FILENAME>a2062020zex-10_2.htm
<DESCRIPTION>EXHIBIT 10.2
<TEXT>
<HTML>
<HEAD>
<TITLE> Prepared by MERRILL CORPORATION
</TITLE>
</HEAD>
<BODY BGCOLOR="#FFFFFF" LINK=BLUE  VLINK=PURPLE>
<BR>
<P><FONT SIZE=3 >
Use these links to rapidly review the document<BR>
<A HREF="#kj2063_table_of_contents">  TABLE OF CONTENTS</A><BR></font>
</P>
<!-- TOC_END -->
<P ALIGN="CENTER"><FONT SIZE=2><B>PURCHASE AND CONTRIBUTION AGREEMENT  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B> Dated as of October&nbsp;26, 2001  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B> Between<BR>
DAL-TILE CORPORATION<BR>  </B></FONT><FONT SIZE=2><B><I>as Seller</I></B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B> and  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B> DTSC,&nbsp;INC.<BR>  </B></FONT><FONT SIZE=2><B><I>as Purchaser</I></B></FONT></P>

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<A NAME="page_kj2063_1_1"> </A>
<P ALIGN="CENTER"><FONT SIZE=2><B> <A NAME="kj2063_table_of_contents"> </A>
<BR>    TABLE OF CONTENTS    <BR>  </B></FONT></P>

<P><FONT SIZE=2>
<A NAME="KJ2063_TOC"></A> </FONT></P>

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<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="17%" ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TH>
<TH WIDTH="19%" ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TH>
<TH WIDTH="59%" ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=5><FONT SIZE=2>PRELIMINARY STATEMENTS</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2><BR>
ARTICLE I</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><A HREF="#page_kj2063_1_1"><FONT SIZE=2><BR>
DEFINITIONS</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><A HREF="#page_kj2063_1_1"><FONT SIZE=2>SECTION 1.01.</FONT></A></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="59%"><FONT SIZE=2>Certain Defined Terms</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><A HREF="#page_kl2063_1_10"><FONT SIZE=2>SECTION 1.02.</FONT></A></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="59%"><FONT SIZE=2>Other Terms</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2><BR>
ARTICLE II</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><A HREF="#kk2063_article_ii_amounts_and___kk202490"><FONT SIZE=2><BR>
AMOUNTS AND TERMS OF PURCHASES AND CONTRIBUTIONS</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><A HREF="#kk2063_section_2.01._facility."><FONT SIZE=2>SECTION 2.01.</FONT></A></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="59%"><FONT SIZE=2>Facility</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><A HREF="#kk2063_section_2.02._making_purchases."><FONT SIZE=2>SECTION 2.02.</FONT></A></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="59%"><FONT SIZE=2>Making Purchases</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><A HREF="#kk2063_(a)_initial_purchase."><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Initial Purchase</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><A HREF="#kk2063_(b)_subsequent_purchases."><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subsequent Purchases</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><A HREF="#kk2063_(c)_payment_of_purchase_price."><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Payment of Purchase Price</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><A HREF="#kk2063_(d)_ownership_of_receivables_and_related_security."><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Ownership of Receivables and Related Security</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><A HREF="#kk2063_section_2.03._collections."><FONT SIZE=2>SECTION 2.03.</FONT></A></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="59%"><FONT SIZE=2>Collections.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><A HREF="#kk2063_section_2.04._settlement_procedures."><FONT SIZE=2>SECTION 2.04.</FONT></A></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="59%"><FONT SIZE=2>Settlement Procedures</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><A HREF="#kk2063_section_2.05._payments_and_computations,_etc."><FONT SIZE=2>SECTION 2.05.</FONT></A></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="59%"><FONT SIZE=2>Payments and Computations, Etc</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><A HREF="#kk2063_section_2.06._contributions."><FONT SIZE=2>SECTION 2.06.</FONT></A></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="59%"><FONT SIZE=2>Contributions</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2><BR>
ARTICLE III</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><A HREF="#kl2063_article_iii_conditions_of_purchases"><FONT SIZE=2><BR>
CONDITIONS OF PURCHASES</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><A HREF="#kl2063_section_3.01._conditions_prece__sec02555"><FONT SIZE=2>SECTION 3.01.</FONT></A></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="59%"><FONT SIZE=2>Conditions Precedent to Initial Purchase from the Seller</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><A HREF="#kl2063_section_3.02._conditions_precedent_to_all_purchases."><FONT SIZE=2>SECTION 3.02.</FONT></A></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="59%"><FONT SIZE=2>Conditions Precedent to All Purchases</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2><BR>
ARTICLE IV</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><A HREF="#kl2063_article_iv_representations_and_warranties"><FONT SIZE=2><BR>
REPRESENTATIONS AND WARRANTIES</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><A HREF="#kl2063_section_4.01._represent__kl202146"><FONT SIZE=2>SECTION 4.01.</FONT></A></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="59%"><FONT SIZE=2>Representations and Warranties of the Seller</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2><BR>
ARTICLE V</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><A HREF="#kl2063_article_v_covenants"><FONT SIZE=2><BR>
COVENANTS</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><A HREF="#kl2063_section_5.01._covenants_of_the_seller."><FONT SIZE=2>SECTION 5.01.</FONT></A></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="59%"><FONT SIZE=2>Covenants of the Seller</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><A HREF="#kl2063_section_5.02._grant_of_security_interest."><FONT SIZE=2>SECTION 5.02.</FONT></A></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="59%"><FONT SIZE=2>Grant of Security Interest</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><A HREF="#kl2063_section_5.03._covenant___kl201934"><FONT SIZE=2>SECTION 5.03.</FONT></A></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="59%"><FONT SIZE=2>Covenant of the Seller and the Purchaser</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2><BR>
ARTICLE VI</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><A HREF="#kl2063_article_vi_administration_and_collection"><FONT SIZE=2><BR>
ADMINISTRATION AND COLLECTION</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><A HREF="#kl2063_section_6.01._designation_of_collection_agent."><FONT SIZE=2>SECTION 6.01.</FONT></A></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="59%"><FONT SIZE=2>Designation of Collection Agent</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><A HREF="#km2063_section_6.02._duties_of_collection_agent."><FONT SIZE=2>SECTION 6.02.</FONT></A></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="59%"><FONT SIZE=2>Duties of Collection Agent</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><A HREF="#km2063_section_6.03._collection_agent_fee."><FONT SIZE=2>SECTION 6.03.</FONT></A></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="59%"><FONT SIZE=2>Collection Agent Fee</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><A HREF="#km2063_section_6.04._certain_rights_of_the_purchaser."><FONT SIZE=2>SECTION 6.04.</FONT></A></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="59%"><FONT SIZE=2>Certain Rights of the Purchaser</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><A HREF="#km2063_section_6.05._rights_and_remedies."><FONT SIZE=2>SECTION 6.05.</FONT></A></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="59%"><FONT SIZE=2>Rights and Remedies.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><A HREF="#km2063_section_6.06._transfer_of_records_to_purchaser."><FONT SIZE=2>SECTION 6.06.</FONT></A></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="59%"><FONT SIZE=2>Transfer of Records to Purchaser.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2><BR>
ARTICLE VII</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><A HREF="#km2063_article_vii_events_of_termination"><FONT SIZE=2><BR>
EVENTS OF TERMINATION</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><A HREF="#km2063_section_7.01._events_of_termination."><FONT SIZE=2>SECTION 7.01.</FONT></A></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="59%"><FONT SIZE=2>Events of Termination</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2><BR>
ARTICLE VIII</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><A HREF="#km2063_article_viii_indemnification"><FONT SIZE=2><BR>
INDEMNIFICATION</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><A HREF="#km2063_section_8.01._indemnities_by_the_seller."><FONT SIZE=2>SECTION 8.01.</FONT></A></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="59%"><FONT SIZE=2>Indemnities by the Seller</FONT></TD>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=2>i</FONT></P>

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<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2><BR>
ARTICLE IX</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><A HREF="#km2063_article_ix_miscellaneous"><FONT SIZE=2><BR>
MISCELLANEOUS</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><A HREF="#km2063_section_9.01._amendments,_etc."><FONT SIZE=2>SECTION 9.01.</FONT></A></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="59%"><FONT SIZE=2>Amendments, Etc</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><A HREF="#km2063_section_9.02._notices,_etc."><FONT SIZE=2>SECTION 9.02.</FONT></A></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="59%"><FONT SIZE=2>Notices, Etc</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><A HREF="#km2063_section_9.03._binding_effect;_assignability."><FONT SIZE=2>SECTION 9.03.</FONT></A></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="59%"><FONT SIZE=2>Binding Effect; Assignability</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><A HREF="#km2063_section_9.04._costs,_expenses_and_taxes."><FONT SIZE=2>SECTION 9.04.</FONT></A></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="59%"><FONT SIZE=2>Costs, Expenses and Taxes</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><A HREF="#km2063_section_9.05._no_proceedings."><FONT SIZE=2>SECTION 9.05.</FONT></A></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="59%"><FONT SIZE=2>No Proceedings</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><A HREF="#km2063_section_9.06._confidentiality."><FONT SIZE=2>SECTION 9.06.</FONT></A></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="59%"><FONT SIZE=2>Confidentiality</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><A HREF="#km2063_section_9.07._governing_law."><FONT SIZE=2>SECTION 9.07.</FONT></A></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="59%"><FONT SIZE=2>GOVERNING LAW</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><A HREF="#km2063_section_9.08._third_party_beneficiary."><FONT SIZE=2>SECTION 9.08.</FONT></A></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="59%"><FONT SIZE=2>Third Party Beneficiary</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><A HREF="#km2063_section_9.09._execution_in_counterparts."><FONT SIZE=2>SECTION 9.09.</FONT></A></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="59%"><FONT SIZE=2>Execution in Counterparts</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><A HREF="#km2063_section_9.10._consent_to_jurisdiction."><FONT SIZE=2>SECTION 9.10.</FONT></A></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="59%"><FONT SIZE=2>Consent to Jurisdiction</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><A HREF="#km2063_section_9.11._waiver_of_jury_trial."><FONT SIZE=2>SECTION 9.11.</FONT></A></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="59%"><FONT SIZE=2>WAIVER OF JURY TRIAL</FONT></TD>
</TR>
</TABLE>
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<TABLE WIDTH="78%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD COLSPAN=3 ALIGN="CENTER"><FONT SIZE=2><BR>
EXHIBITS</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="40%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="15%"><FONT SIZE=2><BR>
EXHIBIT A</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="40%"><FONT SIZE=2><BR>
Credit and Collection Policy</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="40%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="15%"><FONT SIZE=2>EXHIBIT B</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="40%"><FONT SIZE=2>Lock-Box Banks and Collection Account</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="40%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="15%"><FONT SIZE=2>EXHIBIT C</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="40%"><FONT SIZE=2>Form of Promissory Note for Deferred Purchase Price</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="40%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="15%"><FONT SIZE=2>EXHIBIT D</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="40%"><FONT SIZE=2>Form of Promissory Note for Purchaser Loans</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="40%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="15%"><FONT SIZE=2>EXHIBIT E</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="40%"><FONT SIZE=2>Store Accounts</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="40%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="15%"><FONT SIZE=2>EXHIBIT F</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="40%"><FONT SIZE=2>Tradenames and Doing-Business-As Names</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="40%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=2>ii</FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kk2063_purchase_and_contribution_agre__pur02157"> </A>
<A NAME="toc_kk2063_1"> </A>
<BR></FONT><FONT SIZE=2><B>PURCHASE AND CONTRIBUTION AGREEMENT<BR>  <BR>    Dated as of October&nbsp;26, 2001    <BR>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;DAL-TILE CORPORATION, a Pennsylvania corporation (the "</FONT><FONT SIZE=2><I>Seller</I></FONT><FONT SIZE=2>"), and DTSC,&nbsp;INC., a Delaware
corporation (the "</FONT><FONT SIZE=2><I>Purchaser</I></FONT><FONT SIZE=2>"), agree as follows: </FONT></P>

<A NAME="kk2063_preliminary_statemen_1ank"> </A>
<A NAME="kk2063_preliminary_statements"> </A>
<A NAME="toc_kk2063_2"> </A>

<P><FONT SIZE=2><BR>
  &nbsp;&nbsp;&nbsp;&nbsp;PRELIMINARY STATEMENTS.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;</I></FONT><FONT SIZE=2>(1)
&nbsp;&nbsp;Certain terms which are capitalized and used throughout this Agreement (in addition to those defined above) are defined in Article&nbsp;I of this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;The
Seller has Receivables that it wishes to sell to the Purchaser, and the Purchaser is prepared to purchase such Receivables on the terms set forth herein. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;The
Seller may also wish to contribute Receivables to the capital of the Purchaser on the terms set forth herein. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;NOW,
THEREFORE, the parties agree as follows: </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kk2063_definitions_1"> </A>
<A NAME="kk2063_article_i_definitions"> </A>
<A NAME="toc_kk2063_3"> </A>
<BR></FONT><FONT SIZE=2><B>ARTICLE I<BR>  <BR>    DEFINITIONS    <BR>  </B></FONT></P>

<P><FONT SIZE=2><A
NAME="kk2063_section_1.01._certain_defined_terms."> </A>
<A NAME="toc_kk2063_4"> </A>
  &nbsp;&nbsp;&nbsp;&nbsp;SECTION 1.01.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Certain Defined Terms. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;As used in this Agreement, the following terms shall have the following meanings (such meanings to be equally
  applicable to both the singular and plural forms
of the terms defined): </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Account Agreement</I></FONT><FONT SIZE=2>" means an agreement with respect to the Collection Account, in substantially the form of Annex E-2 to
the Sale Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Adverse Claim</I></FONT><FONT SIZE=2>" means a lien, security interest, or other charge or encumbrance, or any other type of preferential arrangement. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Affiliate</I></FONT><FONT SIZE=2>" means, as to any Person, any other Person that, directly or indirectly, is in control of, is controlled by or is under
common control with such Person or is a director or officer of such Person. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Alternate Base Rate</I></FONT><FONT SIZE=2>" means, as of any date, a fluctuating interest rate per annum, which rate shall be equal to the higher of: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;the
rate of interest announced by Credit Lyonnais from time to time as its base rate (it being understood that such rate is not necessarily intended to be the
lowest rate of interest determined by Credit Lyonnais in connection with extensions of credit); and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;0.50%
per annum above the Federal Funds Rate for such date. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Bank Direction Agreement</I></FONT><FONT SIZE=2>" means an agreement, in substantially the form of Annex D to the Sale Agreement, among the Seller, Credit
Lyonnais and a Store Account Bank, pursuant to which such Store Account Bank agrees to remit all funds deposited in the Store Account maintained by it to the Collection Account. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Business Day</I></FONT><FONT SIZE=2>" means any day on which banks are not authorized or required to close in New York City or Dallas, Texas. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Collection Account</I></FONT><FONT SIZE=2>" means the bank account maintained by the Purchaser for the purpose of receiving funds remitted from all of the
Store Accounts. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Collection Agent</I></FONT><FONT SIZE=2>" means at any time the Person then authorized pursuant to Section&nbsp;6.01 to service, administer and collect
Transferred Receivables. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Collection Agent Fee</I></FONT><FONT SIZE=2>" has the meaning specified in Section&nbsp;6.03. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Collections</I></FONT><FONT SIZE=2>" means, with respect to any Transferred Receivable, all cash collections and other cash proceeds of such Transferred
Receivable, including, without limitation, all cash proceeds of </FONT></P>

</UL>
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<UL>

<P><FONT SIZE=2>
Related Security with respect to such Receivable, and all funds deemed to have been received by the Seller or any other Person as a Collection pursuant to Section&nbsp;2.04. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Contract</I></FONT><FONT SIZE=2>" means an agreement between the Seller and an Obligor, substantially in the form of one of the written contracts or (in the
case of any open account agreement) one of the invoices approved by the Purchaser, pursuant to or under which such Obligor shall be obligated to pay for merchandise or services from time to time. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Contributed Receivable</I></FONT><FONT SIZE=2>" has the meaning specified in Section&nbsp;2.06. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Credit and Collection Policy</I></FONT><FONT SIZE=2>" means those receivables credit and collection policies and practices of the Seller in effect on the date
of this Agreement applicable to the Receivables and described in Exhibit&nbsp;A hereto, as modified in compliance with this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Credit Lyonnais</I></FONT><FONT SIZE=2>" means Credit Lyonnais New York Branch, a branch licensed under the laws of the State of New York of a banking
corporation organized under the laws of the Republic of France. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Dal-Tile Group</I></FONT><FONT SIZE=2>" means Dal-Tile Group&nbsp;Inc., a Delaware corporation. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Dal-Tile International</I></FONT><FONT SIZE=2>" means Dal-Tile International&nbsp;Inc., a Delaware corporation. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Debt</I></FONT><FONT SIZE=2>" means (i)&nbsp;indebtedness for borrowed money, (ii)&nbsp;obligations evidenced by bonds, debentures, notes or other similar
instruments, (iii)&nbsp;obligations to pay the deferred purchase price of property or services (other than current unsecured accounts payable incurred in the ordinary course of business),
(iv)&nbsp;obligations as lessee under leases which shall have been or should be, in accordance with generally accepted accounting principles, recorded as capital leases, and (v)&nbsp;obligations
under direct or indirect guaranties in respect of, and obligations (contingent or otherwise) to purchase or otherwise acquire, or otherwise to assure a creditor against loss in respect of,
indebtedness or obligations of others of the kinds referred to in clauses (i)&nbsp;through (iv)&nbsp;above. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Defaulted Receivable</I></FONT><FONT SIZE=2>" means a Receivable: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;as
to which any payment, or part thereof,&nbsp;&nbsp;remains unpaid for 91 or more days from the original due date for such payment; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;as
to which the Obligor thereof or any other Person obligated thereon or owning any Related Security in respect thereof has taken any action, or suffered any event
to occur, of the type described in Section&nbsp;7.01(g); or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;which
has been or, consistent with the Credit and Collection Policy, would be written off on the books of the Seller or the Purchaser as uncollectible. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Deferred Purchase Price</I></FONT><FONT SIZE=2>" means the portion of the Purchase Price of Purchased Receivables purchased on any Purchase Date exceeding the
amount of the Purchase Price under Section&nbsp;2.02 to be paid in cash, which portion when added to the cumulative amount of all previous Deferred Purchase Prices (after giving effect to any
payments made on account thereof) shall not exceed 50% of the Outstanding Balance of the Transferred Receivables. The obligations of the Purchaser in respect of the Deferred Purchase Price shall be
evidenced by the Purchaser's subordinated promissory note in the form of Exhibit&nbsp;C hereto. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Delinquent Receivable</I></FONT><FONT SIZE=2>" means a Receivable that is not a Defaulted Receivable and: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;as
to which any payment, or part thereof, remains unpaid for 61 or more days from the original due date for such payment or </FONT></P>

</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

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<A NAME="page_kk2063_1_3"> </A>
<UL>
<UL>

<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;which has been or, consistent with the Credit and Collection Policy, would be classified as delinquent by the Seller. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Diluted Receivable</I></FONT><FONT SIZE=2>" means that portion (and only that portion) of any Transferred Receivable which is either (a)&nbsp;reduced or
canceled as a result of (i)&nbsp;any defective, rejected or returned merchandise or services or any failure by the Seller to deliver any merchandise or provide any services or otherwise to
perform under the underlying Contract, (ii)&nbsp;any change in the terms of or cancellation of a Contract or any cash discount, discount for quick payment or other adjustment by the Seller or any
other Person which reduces the amount payable by the Obligor on the related Transferred Receivable (except any such change or cancellation resulting from or relating to the financial inability to pay
or insolvency of the Obligor of such Transferred Receivable) or (iii)&nbsp;any set-off by an Obligor in respect of any claim by such Obligor as to amounts owed by it on the related
Receivable (whether such claim arises out of the same or a related transaction or an unrelated transaction) or (b)&nbsp;subject to any specific dispute, offset, counterclaim or defense whatsoever
(except the discharge in bankruptcy of the Obligor thereof), including, without limitation, any non-payment by the Obligor due to failure by the Seller to deliver any merchandise or
provide any services; </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that Diluted Receivables are calculated assuming that all chargebacks are resolved in the Obligor's favor. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Discount</I></FONT><FONT SIZE=2>" means, in respect of each Purchase, 3.0% of the Outstanding Balance of the Receivables that are the subject of such
Purchase; provided, however, the foregoing Discount may be revised prospectively by request of either of the parties hereto to reflect changes in recent experience with respect to
write-offs, timing and cost of Collections and cost of funds, provided that such revision is consented to by both of the parties (it being understood that each party agrees to duly
consider such request but shall have no obligation to give such consent). The then current Discount shall be set forth on each Monthly Report. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>DTC Store</I></FONT><FONT SIZE=2>" means any sales service center operated by the Seller. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Eligible Receivable</I></FONT><FONT SIZE=2>" means a Receivable: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;the
Obligor of which (A)&nbsp;is a United States resident, (B)&nbsp;is not an Affiliate of Dal-Tile International, Dal-Tile Group or the
Seller and (C)&nbsp;is not a government or a governmental subdivision or agency that has the benefit of an anti-assignment statute or other statute imposing restrictions on the
assignment of Receivables due from it; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;which,
at the time of the transfer thereof to the Purchaser under this Agreement, is not a Defaulted Receivable or a Delinquent Receivable; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;which,
according to the Contract related thereto, is required to be paid in full either (A)&nbsp;within less than 60&nbsp;days of the original billing date
therefor or (B)&nbsp;within 60&nbsp;days of the original billing date therefor if the aggregate Outstanding Balance of such Receivable and all other Receivables having similar payment terms does
not exceed 50% of the Outstanding Balance of all Transferred Receivables; </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;which
is an "account" within the meaning of Article&nbsp;9 of the UCC of the applicable jurisdictions governing the perfection of the Purchaser's ownership of
and security interest in such Receivable; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;which
is denominated and payable only in United States dollars in the United States; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;which
arises under a Contract which, together with such Receivable, is in full force and effect and constitutes the legal, valid and binding obligation of the
Obligor of such Receivable and is not subject to any Adverse Claim or any dispute, offset, counterclaim or defense whatsoever (except the potential discharge in bankruptcy of such Obligor); </FONT></P>

</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>

<HR NOSHADE>
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<A NAME="page_kk2063_1_4"> </A>
<UL>
<UL>

<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;(vii)&nbsp;which, together with the Contract related thereto, does not contravene in any material respect any laws, rules or regulations applicable thereto (including,
without limitation, laws, rules and regulations relating to usury, consumer protection, truth in lending, fair credit billing, fair credit reporting, equal credit opportunity, fair debt collection
practices and privacy) and with respect to which no party to the Contract related thereto is in violation of any such law, rule or regulation in any material respect; </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;(viii)&nbsp;which
arises under a Contract which (A)&nbsp;does not require the Obligor under such Contract to consent to the transfer, sale or assignment of the rights and
duties of the Seller under such Contract and (B)&nbsp;does not contain a confidentiality provision that purports to restrict the ability of the Purchaser and its assignees to exercise their rights
under this Agreement, including, without limitation, their right to review the Contract; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ix)&nbsp;which
was generated in the ordinary course of the Seller's business; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(x)&nbsp;which,
at the time of the transfer of such Receivable under this Agreement, has not been extended, rewritten or otherwise modified from the original terms thereof,
except, with respect to a Receivable that is Purchased by, or contributed to, the Purchaser on the date of the initial Purchase hereunder, as permitted under Section&nbsp;6.02(d), but only for
non-credit-related reasons; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(xi)&nbsp;the
transfer, sale or assignment of which does not contravene any applicable law, rule or regulation; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;(xii)&nbsp;which
satisfies all applicable requirements of the Credit and Collection Policy; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;(xiii)&nbsp;which
does not constitute a "bill and hold" sale; and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;(xiv)&nbsp;as
to which, prior to the time of the transfer of such Receivable under this Agreement, the Purchaser or its assignee has not notified the Seller that such
Receivable (or the Obligor of such Receivable) is, in the reasonable good faith judgment of the Purchaser or such assignee, no longer acceptable for transfer hereunder for credit-related reasons. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>ERISA</I></FONT><FONT SIZE=2>" means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the regulations promulgated and
rulings issued thereunder. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Event of Termination</I></FONT><FONT SIZE=2>" has the meaning specified in Section&nbsp;7.01. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Facility</I></FONT><FONT SIZE=2>" means the willingness of the Purchaser to consider making Purchases of Receivables from the Seller from time to time
pursuant to the terms of this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Facility Termination Date</I></FONT><FONT SIZE=2>" means the earliest of (i)&nbsp;October&nbsp;26, 2004, (ii)&nbsp;the date of termination of the
Facility pursuant to Section&nbsp;7.01 and (iii)&nbsp;the date which the Seller designates by at least two Business Days' notice to the Purchaser. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Federal Funds Rate</I></FONT><FONT SIZE=2>" means, for any period, a fluctuating interest rate per annum equal for each day during such period to the weighted
average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published for such day (or, if such day is not a Business
Day, for the next preceding Business Day) by the Federal Reserve Bank of New York, or, if such rate is not so published for any day which is a Business Day, the average of the quotations for such day
on such transactions received by Credit Lyonnais from three Federal funds brokers of recognized standing selected by it. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Fiscal Month</I></FONT><FONT SIZE=2>" means a fiscal month of Dal-Tile International containing four or five weeks as determined under the
accounting policies and procedures of Dal-Tile International&nbsp;Inc. and its Affiliates, as in effect on the date hereof. </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>4</FONT></P>

<HR NOSHADE>
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<A NAME="page_kk2063_1_5"> </A>
<UL>

<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT SIZE=2><I>General Trial Balance</I></FONT><FONT SIZE=2>" of the Seller on any date means the Seller's accounts receivable trial balance (whether in the form of a
computer printout, magnetic tape or diskette) on such date, listing Obligors and the Receivables respectively owed by such Obligors on such date together with the aged Outstanding Balances of such
Receivables, in form and substance satisfactory to the Purchaser. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Incipient Event of Termination</I></FONT><FONT SIZE=2>" means an event that but for notice or lapse of time or both would constitute an Event of Termination. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Indemnified Amounts</I></FONT><FONT SIZE=2>" has the meaning specified in Section&nbsp;8.01. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Lock-Box Account</I></FONT><FONT SIZE=2>" means a post office box administered by a Lock-Box Bank and the associated account
maintained at a Lock-Box Bank, in each case maintained for the purpose of receiving Collections. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Lock-Box Agreement</I></FONT><FONT SIZE=2>" means an agreement among the Seller, the Purchaser (or its assignees or designees) and any
Lock-Box Bank in form and substance satisfactory to the Purchaser (or its assignees or designees). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Lock-Box Bank</I></FONT><FONT SIZE=2>" means any of the banks holding one or more Lock-Box Accounts. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Monthly Report</I></FONT><FONT SIZE=2>" means a report, in form and substance satisfactory to the Purchaser, furnished by the Collection Agent to the
Purchaser pursuant to Section&nbsp;6.02(b). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Obligor</I></FONT><FONT SIZE=2>" means a Person obligated to make payments to the Seller pursuant to a Contract. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Outstanding Balance</I></FONT><FONT SIZE=2>" of any Receivable at any time means the then outstanding principal balance thereof. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Person</I></FONT><FONT SIZE=2>" means an individual, partnership, corporation (including a business trust), limited liability company, joint stock company,
trust, unincorporated association, joint venture or other entity, or a government or any political subdivision or agency thereof. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Purchase</I></FONT><FONT SIZE=2>" means a purchase by the Purchaser of Receivables from the Seller pursuant to Article&nbsp;II. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Purchase Date</I></FONT><FONT SIZE=2>" means each day on which a Purchase is made pursuant to Article&nbsp;II. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Purchase Price</I></FONT><FONT SIZE=2>" for any Purchase means an amount equal to the Outstanding Balance of the Receivables that are the subject of such
Purchase as set forth in the Seller's General Trial Balance, minus the Discount for such Purchase. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Purchased Receivable</I></FONT><FONT SIZE=2>" means any Receivable which is purchased by the Purchaser pursuant to Section&nbsp;2.02. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Purchaser Loan</I></FONT><FONT SIZE=2>" means any loan made by the Purchaser, at its option, to the Seller, upon the Seller's request, provided that no such
Purchaser Loans may be made if an Event of Termination or an Incipient Event of Termination has occurred and is continuing, or would occur after giving effect thereto, or if any amounts are
outstanding under the Deferred Purchase Price. Purchaser Loans made by the Purchaser hereunder shall be evidenced by the promissory note of the Seller in substantially the form of Exhibit&nbsp;D
hereto. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Receivable</I></FONT><FONT SIZE=2>" means the indebtedness of any Obligor (other than an Obligor which is an Affiliate of Dal-Tile International
or the Seller) under a Contract, and includes the right to payment of any interest or finance charges and other obligations of such Obligor with respect thereto; </FONT><FONT SIZE=2><I>provided,
however</I></FONT><FONT SIZE=2>, that "Receivable" does not include any such indebtedness created by the Corporate Strategic Business Unit or the R&amp;M Strategic Business Unit of the Seller. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Receivables Purchase Request</I></FONT><FONT SIZE=2>" has the meaning specified in Section&nbsp;2.02(a). </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>5</FONT></P>

<HR NOSHADE>
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<A NAME="page_kk2063_1_6"> </A>
<UL>

<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT SIZE=2><I>Related Security</I></FONT><FONT SIZE=2>" means with respect to any Receivable: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;all
of the Seller's interest in any merchandise (including returned merchandise) the sale of which gives rise to such Receivable; </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;all
security interests or liens and property subject thereto from time to time purporting to secure payment of such Receivable, whether pursuant to the Contract
related to such Receivable or otherwise, together with all financing statements signed by an Obligor describing any collateral securing such Receivable; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;all
guaranties, insurance and other agreements or arrangements of whatever character from time to time supporting or securing payment of such Receivable whether
pursuant to the Contract related to such Receivable or otherwise; and </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;the
Contract and all other books, records and other information (including, without limitation, computer programs, tapes, discs, punch cards, data processing
software and similar property and rights) to the extent relating to such Receivable and the related Obligor. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Sale Agreement</I></FONT><FONT SIZE=2>" means that certain Receivables Purchase Agreement, dated as of the date hereof, among the Purchaser, as seller,
Atlantic Asset Securitization Corp., as an investor, Credit Lyonnais, as a bank and as agent, and the Seller, as collection agent and originator, as amended or restated from time to time. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Settlement Date</I></FONT><FONT SIZE=2>" means the tenth Business Day of each Fiscal Month; </FONT><FONT SIZE=2><I>provided, however,  </I></FONT><FONT SIZE=2>that following the occurrence of an Event of Termination, Settlement Dates shall
occur on such days as are selected from time to time by the Purchaser or its designee in a
written notice to the Collection Agent. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Store Account</I></FONT><FONT SIZE=2>" means a bank account maintained by the Seller for the purpose of receiving Collections, funds constituting cash sales
of merchandise and other funds of any DTC Store. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Store Account Bank</I></FONT><FONT SIZE=2>" means the bank holding any Store Account. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Transferred Receivable</I></FONT><FONT SIZE=2>" means a Purchased Receivable or a Contributed Receivable. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>UCC</I></FONT><FONT SIZE=2>" means the Uniform Commercial Code as from time to time in effect in the specified jurisdiction. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Weekly Report</I></FONT><FONT SIZE=2>" means a report, in form and substance satisfactory to the Purchaser, furnished by the Collection Agent to the Purchaser
pursuant to Section&nbsp;6.02(c). </FONT></P>

</UL>

<P><FONT SIZE=2><A
NAME="kk2063_section_1.02._other_terms."> </A>
<A NAME="toc_kk2063_5"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 1.02.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Other Terms. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;All accounting terms not specifically defined herein shall be construed in accordance with generally accepted accounting
principles. All terms used in
Article&nbsp;9 of the UCC in the State of New York, and not specifically defined herein, are used herein as defined in such Article&nbsp;9. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kk2063_article_ii_amounts_and___kk202490"> </A>
<A NAME="toc_kk2063_6"> </A>
<BR></FONT><FONT SIZE=2><B>ARTICLE II<BR>  <BR>    AMOUNTS AND TERMS OF PURCHASES AND CONTRIBUTIONS    <BR>  </B></FONT></P>

<P><FONT SIZE=2><A
NAME="kk2063_section_2.01._facility."> </A>
<A NAME="toc_kk2063_7"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.01.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Facility. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;On the terms and conditions hereinafter set forth and without recourse to the Seller (except to the extent specifically
provided herein), the Seller may at its
option sell or contribute to the Purchaser all Receivables originated by it from time to time and the Purchaser may at its option purchase or accept as a contribution from the Seller all Receivables
of the Seller from time to time, in each case during the period from the date hereof to the Facility Termination Date. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>6</FONT></P>

<HR NOSHADE>
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<A NAME="page_kk2063_1_7"> </A>

<P><FONT SIZE=2><A
NAME="kk2063_section_2.02._making_purchases."> </A>
<A NAME="toc_kk2063_8"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.02.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Making Purchases. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2><A
NAME="kk2063_(a)_initial_purchase."> </A>
<A NAME="toc_kk2063_9"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;(a)</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Initial Purchase. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The Seller shall give the Purchaser at least one Business Day's notice of its request for the initial Purchase hereunder, which
request shall specify the date
of such Purchase (which shall be a Business Day) and the proposed Purchase Price for such Purchase. The Purchaser shall promptly notify the Seller whether it has determined to make such Purchase. On
the date of such Purchase, the Purchaser shall, upon satisfaction of the applicable conditions set forth in Article&nbsp;III, pay the Purchase Price for such Purchase in the manner provided in
Section&nbsp;2.02(c). </FONT></P>

<P><FONT SIZE=2><A
NAME="kk2063_(b)_subsequent_purchases."> </A>
<A NAME="toc_kk2063_10"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;(b)</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Subsequent Purchases. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;On each Business Day following the initial Purchase, unless either party shall notify the other party to the contrary, the
Seller shall sell to the Purchaser
and the Purchaser shall purchase from the Seller, upon satisfaction of the applicable conditions set forth in Article&nbsp;III, all Receivables originated by the Seller which have not previously
been sold or contributed to the Purchaser; </FONT><FONT SIZE=2><I>provided, however, </I></FONT><FONT SIZE=2>that the Seller may, at its option on any Purchase Date, contribute all or any of such
Receivables to the Purchaser pursuant to Section&nbsp;2.06, instead of selling such Receivables to the Purchaser pursuant to this Section&nbsp;2.02(b). On or within five Business Days after the
date of each such Purchase, the Purchaser shall pay the Purchase Price for such Purchase in the manner provided in Section&nbsp;2.02(c). </FONT></P>

<P><FONT SIZE=2><A
NAME="kk2063_(c)_payment_of_purchase_price."> </A>
<A NAME="toc_kk2063_11"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;(c)</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Payment of Purchase Price. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The Purchase Price for each Purchase shall be paid on or within five Business Days after the Purchase Date therefor by
means of any one or a combination of the
following: (i)&nbsp;a deposit in same day funds to the Seller's account designated by the Seller, (ii)&nbsp;an increase in the Deferred Purchase Price (subject at all times to the limitations
contained in the definition thereof), or (iii)&nbsp;a credit against interest and/or principal owed by the Seller with respect to any Purchaser Loan. The allocation of the Purchase Price as among
such methods of payment shall be subject in each instance to the approval of the Purchaser and the Seller. </FONT></P>

<P><FONT SIZE=2><A
NAME="kk2063_(d)_ownership_of_receivables_and_related_security."> </A>
<A NAME="toc_kk2063_12"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;(d)</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Ownership of Receivables and Related Security. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;On each Purchase Date, after giving effect to the Purchase (and any contribution of Receivables)
on such date, the Purchaser shall own all Receivables
originated by the Seller as of such date (including Receivables which have been previously sold or contributed to the Purchaser hereunder). The Purchase or contribution of any Receivable shall include
all Related Security with respect to such Receivable. </FONT></P>

<P><FONT SIZE=2><A
NAME="kk2063_section_2.03._collections."> </A>
<A NAME="toc_kk2063_13"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.03.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Collections. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a)&nbsp;Unless otherwise agreed, the Collection Agent shall, on each Settlement Date, deposit into an account of the
Purchaser or the Purchaser's assignee
all Collections of Transferred Receivables then held by the Collection Agent. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;In
the event that the Seller believes that funds which are not Collections of Transferred Receivables have been deposited into an account of the Purchaser or the
Purchaser's assignee, the Seller shall so advise the Purchaser and, on the Business Day following such identification, the Purchaser shall remit, or shall cause to be remitted, to the Seller all funds
so deposited which are identified, to the Purchaser's satisfaction, as not being Collections of Transferred Receivables. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;On
each Settlement Date, the Purchaser shall pay to the Seller accrued interest on the Deferred Purchase Price and the Purchaser may, at its option, prepay in whole
or in part the principal amount of the Deferred Purchase Price; provided that each such payment shall be made solely from (i)&nbsp;Collections of Transferred Receivables after all other amounts then
due from the Purchaser under the Sale Agreement have been paid in full and all amounts then required to be set aside by the Purchaser or the Collection Agent, on their respective books, under the Sale
Agreement have been so set aside or (ii)&nbsp;excess cash flow from operations of the Purchaser which is not required to be applied to the payment of other obligations of the Purchaser; and provided
further, that no such payment shall be made at any time when an Event of Termination shall have occurred and be continuing. At such time following the Facility Termination Date when all Capital, Yield
and other amounts owed by the Purchaser under the Sale Agreement shall have been paid in full, the Purchaser shall apply, on each </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>7</FONT></P>

<HR NOSHADE>
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<A NAME="page_kk2063_1_8"> </A>

<P><FONT SIZE=2>
Settlement Date, all Collections of Transferred Receivables received by the Purchaser pursuant to Section&nbsp;2.03(a) (and not previously distributed) first to the payment of accrued interest on
the Deferred Purchase Price, and then to the reduction of the principal amount of the Deferred Purchase Price. </FONT></P>

<P><FONT SIZE=2><A
NAME="kk2063_section_2.04._settlement_procedures."> </A>
<A NAME="toc_kk2063_14"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.04.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Settlement Procedures. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a)&nbsp;If on any day any Purchased Receivable becomes (in whole or in part) a Diluted Receivable, the Seller
shall be deemed to have received on such day
a Collection of such Purchased Receivable in the amount of such Diluted Receivable. The Seller shall pay to the Collection Agent on or prior to the earlier of (i)&nbsp;the next Settlement Date or
(ii)&nbsp;the occurrence of an Event of Termination all amounts deemed to have been received pursuant to this subsection. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Upon
discovery by the Seller or the Purchaser of a breach of any of the representations and warranties made by the Seller in Section&nbsp;4.01(j) with respect to
any Transferred Receivable, such party shall give prompt written notice thereof to the other party, as soon as practicable and in any event within three Business Days following such discovery. The
Seller shall, upon not less than two Business Days' notice from the Purchaser or its assignee or designee, repurchase such Transferred Receivable on the next succeeding Settlement Date for a
repurchase price equal to the Outstanding Balance of such Transferred Receivable. Each repurchase of a Transferred Receivable shall include the Related Security with respect to such Transferred
Receivable. The proceeds of any such repurchase shall be deemed to be a Collection in respect of such Transferred Receivable. If the Seller is not the Collection Agent, the Seller shall pay to the
Collection Agent on or prior to the next Settlement Date the repurchase price required to be paid pursuant to this subsection. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Except
as stated in subsection (a)&nbsp;or (b)&nbsp;of this Section&nbsp;2.04 or as otherwise required by law or the underlying Contract, all Collections from
an Obligor of any Transferred Receivable shall be applied to the Receivables of such Obligor in the order of the age of such Receivables, starting with the oldest such Receivable, unless such Obligor
designates its payment for application to specific Receivables. </FONT></P>

<P><FONT SIZE=2><A
NAME="kk2063_section_2.05._payments_and_computations,_etc."> </A>
<A NAME="toc_kk2063_15"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.05.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Payments and Computations, Etc. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a)&nbsp;All amounts to be paid or deposited by the Seller or the Collection Agent hereunder shall be
paid or deposited no later than 12:00 noon (New York
City time) on the day when due in same day funds to an account or accounts designated by the Purchaser from time to time, which accounts, during the existence of the Sale Agreement, shall be those set
forth in the Sale Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The
Seller shall, to the extent permitted by law, pay to the Purchaser interest on any amount not paid or deposited by the Seller (whether as Collection Agent or
otherwise) when due hereunder at an interest rate per annum equal to 2.00% per annum above the Alternate Base Rate, payable on demand. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;All
computations of interest and all computations of fees hereunder shall be made on the basis of a year of 360&nbsp;days for the actual number of days (including
the first but excluding the last day) elapsed. Whenever any payment or deposit to be made hereunder shall be due on a day other than a Business Day, such payment or deposit shall be made on the next
succeeding Business Day and such extension of time shall be included in the computation of such payment or deposit. </FONT></P>

<P><FONT SIZE=2><A
NAME="kk2063_section_2.06._contributions."> </A>
<A NAME="toc_kk2063_16"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.06.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Contributions. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The Seller may from time to time at its option, by notice to the Purchaser on or prior to the date of the proposed
contribution, identify Receivables which it
proposes to contribute to the Purchaser as a capital contribution. On the date of each such contribution and after giving effect thereto, the Purchaser shall own the Receivables so identified and
contributed (collectively, the "</FONT><FONT SIZE=2><I>Contributed Receivables</I></FONT><FONT SIZE=2>") and all Related Security with respect thereto. The foregoing notwithstanding, on the date of
the initial Purchase hereunder the Seller agrees to contribute to the Purchaser all Receivables which are not included in such initial Purchase. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>8</FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kl2063_article_iii_conditions_of_purchases"> </A>
<A NAME="toc_kl2063_1"> </A>
<BR></FONT><FONT SIZE=2><B>ARTICLE III<BR>  <BR>    CONDITIONS OF PURCHASES    <BR>  </B></FONT></P>

<P><FONT SIZE=2><A
NAME="kl2063_section_3.01._conditions_prece__sec02555"> </A>
<A NAME="toc_kl2063_2"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.01.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Conditions Precedent to Initial Purchase from the Seller. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The initial Purchase of Receivables from the Seller hereunder is subject to
the conditions precedent that the Purchaser shall have received on or before the
date of such Purchase the following, each (unless otherwise indicated) dated such date, in form and substance satisfactory to the Purchaser: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Certified
copies of the resolutions of the Board of Directors of the Seller approving this Agreement and certified copies of all documents evidencing other
necessary corporate action and governmental approvals, if any, with respect to this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;A
certificate of the Secretary or Assistant&nbsp;&nbsp;Secretary of the Seller certifying the names and true signatures of the officers of the Seller
authorized to sign this Agreement and the other documents to be delivered by it hereunder. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Acknowledgment
copies or time stamped receipt copies (or other evidence of filing) of proper financing statements, duly filed on or before the date of the initial
Purchase, naming the Seller as the seller/debtor and the Purchaser as the purchaser/secured party, or other similar instruments or documents, as the Purchaser may deem necessary or desirable under the
UCC of all appropriate jurisdictions or other applicable law to perfect the Purchaser's ownership of and security interest in the Receivables and Related Security and Collections with respect thereto. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Proper
financing statements (together with such written authorizations to file such financing statements or such other written statements with respect to the filing
of such financing statements as the Agent may request), if any, necessary to release all security interests and other rights of any Person in the Transferred Receivables, Contracts or Related Security
previously granted by the Seller. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Completed
requests for information, dated on or before the date of such initial Purchase, listing the effective financing statements filed in Pennsylvania and Texas
that name the Seller as debtor, together
with copies of such other financing statements (none of which shall cover any Transferred Receivables, Contracts or Related Security). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;Favorable
opinions of (i)&nbsp;Fried, Frank, Harris, Shriver&nbsp;&amp; Jacobson, (ii)&nbsp;Olshan, Grundman, Frome, Rosenzweig&nbsp;&amp; Wolosky LLP,
(iii)&nbsp;Dechert and (iv)&nbsp;Mark A. Solls, each as counsel for the Seller, in form and substance satisfactory to the Purchaser, as to such matters as the Purchaser may reasonably request. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;Executed
copies of Lock-Box Agreements with each Lock-Box Bank and the Account Agreement with the bank holding the Collection Account. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;Executed
copies of Bank Direction Agreements with respect to the Store Accounts maintained at Bank of America-East, Bank of America-West,
Bank One Chicago, Bank One Michigan, Bank One Texas, First Union and Wells Fargo Bank. </FONT></P>

</UL>

<P><FONT SIZE=2><A
NAME="kl2063_section_3.02._conditions_precedent_to_all_purchases."> </A>
<A NAME="toc_kl2063_3"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.02.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Conditions Precedent to All Purchases. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Each Purchase (including the initial Purchase) hereunder shall be subject to the further
conditions precedent that: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;with
respect to any such Purchase, on or prior to the date of such Purchase, the Seller shall have delivered to the Purchaser, if requested by the Purchaser,
(i)&nbsp;the Seller's General Trial Balance (which if in magnetic tape or diskette format shall be compatible with the Purchaser's computer equipment) as of a date not more than 31&nbsp;days prior
to the date of such Purchase, and (ii)&nbsp;a written report identifying, among other things, the Receivables to be included in such </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>9</FONT></P>

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<P><FONT SIZE=2>
Purchase and such additional information concerning such Receivables as may reasonably be requested by the Purchaser; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;with
respect to any such Purchase, on or prior to the date of such Purchase, the Collection Agent shall have delivered to the Purchaser, in form and substance
satisfactory to the Purchaser, a completed Monthly Report (or, in the case of the initial Purchase, a pro forma Monthly Report for the period ending September&nbsp;28, 2001) for the most recently
ended reporting period for which information is required pursuant to Section&nbsp;6.02(b) and containing such additional information as may reasonably be requested by the Purchaser; </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;at
its expense, the Seller shall have caused the master data processing records evidencing Transferred Receivables to be marked to indicate that such Receivables,
the Related Security and Collections with respect thereto have been sold and/or contributed in accordance with this Agreement; and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;on
the date of such Purchase or contribution the following statements shall be true (and the Seller, by accepting the Purchase Price for such Purchase, shall be
deemed to have certified that): </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;The
representations and warranties contained in Section&nbsp;4.01 are correct on and as of the date of such Purchase as though made on and as of such date, </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;No
event has occurred and is continuing, or would result from such Purchase, that constitutes an Event of Termination or an Incipient Event of Termination and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;The
Purchaser shall not have delivered to the Seller a notice that the Purchaser shall not make any further Purchases hereunder; and </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;the
Purchaser shall have received such other approvals, opinions or documents as the Purchaser may reasonably request. </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kl2063_article_iv_representations_and_warranties"> </A>
<A NAME="toc_kl2063_4"> </A>
<BR></FONT><FONT SIZE=2><B>ARTICLE IV<BR>  <BR>    REPRESENTATIONS AND WARRANTIES    <BR>  </B></FONT></P>

<P><FONT SIZE=2><A
NAME="kl2063_section_4.01._represent__kl202146"> </A>
<A NAME="toc_kl2063_5"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.01.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Representations and Warranties of the Seller. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The Seller represents and warrants as follows: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The
Seller is a corporation duly incorporated, validly existing and in good standing under the laws of Pennsylvania, and is duly qualified to do business, and is in
good standing, in every jurisdiction where the nature of its business requires it to be so qualified, unless the failure to so qualify would not reasonably be expected to have a material adverse
effect on (i)&nbsp;the interests of the Purchaser hereunder, (ii)&nbsp;the collectibility of the Transferred Receivables, or (iii)&nbsp;the ability of the Seller or the Collection Agent to
perform their respective obligations hereunder. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The
execution, delivery and performance by the Seller of this Agreement and the other documents to be delivered by it hereunder, including the Seller's sale and
contribution of Receivables hereunder and the Seller's use of the proceeds of Purchases, (i)&nbsp;are within the Seller's corporate powers, (ii)&nbsp;have been duly authorized by all necessary
corporate action, (iii)&nbsp;do not contravene (1)&nbsp;the Seller's certificate of incorporation or by-laws, (2)&nbsp;any law, rule or regulation applicable to the Seller,
(3)&nbsp;any material contractual restriction binding on or affecting the Seller or its property or (4)&nbsp;any order, writ, judgment, award, injunction or decree binding on or affecting the
Seller or its property, and (iv)&nbsp;do not result in or require the creation of any lien, security interest or other charge or encumbrance upon or with respect to any of its properties (except for
the transfer of the Seller's interest in the Transferred Receivables pursuant to this Agreement) </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>10</FONT></P>

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<P><FONT SIZE=2>
pursuant to any material agreement. This Agreement has been duly executed and delivered by the Seller. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;No
authorization or approval or other action by, and no notice to or filing with, any governmental authority or regulatory body is required for the due execution,
delivery and performance by the Seller of this Agreement or any other document to be delivered by it hereunder. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;This
Agreement constitutes the legal, valid and binding obligation of the Seller enforceable against the Seller in accordance with its terms, except that such
enforcement may be subject to bankruptcy, insolvency, reorganization, moratorium (whether general or specific) and other similar laws now or hereafter in effect affecting creditors' rights generally. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Sales
and contributions made pursuant to this Agreement will constitute a valid sale, transfer, and assignment of the Transferred Receivables to the Purchaser,
enforceable against creditors of, and purchasers from, the Seller. The Seller shall have no remaining property interest in any Transferred Receivable. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;The
consolidated balance sheet of Dal-Tile International and its consolidated Subsidiaries as at December&nbsp;29, 2000, and the related consolidated
statements of income and retained earnings of Dal-Tile International and its consolidated Subsidiaries for the fiscal year then ended, copies of which have been furnished to the Purchaser,
fairly present, in all material respects, the financial condition of Dal-Tile International and its consolidated Subsidiaries as at such date and the results of the operations of
Dal-Tile International and its consolidated Subsidiaries for the period ended on such date, all in accordance with generally accepted accounting principles consistently applied, and since
December&nbsp;29, 2000, there has been no material adverse change in the business, financial condition or operations of Dal-Tile International and its consolidated Subsidiaries taken as
a whole that could reasonably be expected to adversely affect the value or collectibility of the Transferred Receivables or the ability of the Seller to collect Transferred Receivables or otherwise
perform its obligations under this Agreement; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;There
is no pending or threatened action or proceeding affecting the Seller or any of its subsidiaries before any court, governmental agency or arbitrator which may
reasonably be expected to materially adversely affect the financial condition or operations of the Seller or any of its subsidiaries or the ability of the Seller to perform its obligations under this
Agreement, or which purports to affect the legality, validity or enforceability of this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;No
proceeds of any Purchase will be used, whether directly or indirectly, to purchase or carry Margin Stock (as such term is defined in Regulation&nbsp;U of the
Board of Governors of the Federal Reserve System of the United States, as in effect from time to time) or to extend credit to others for the purpose of purchasing or carrying Margin Stock or to refund
indebtedness originally incurred for such purpose. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;No
transaction contemplated hereby requires compliance with any bulk sales act or similar law. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;Each
Receivable characterized as an Eligible Receivable in a Monthly Report, a Weekly Report (or any other statement made by the Collection Agent or the Seller) is
an Eligible Receivable as of the date of such Monthly Report, Weekly Report or statement, and each such Receivable and each Transferred Receivable, together with the Related Security, is owned
(immediately prior to its sale or contribution hereunder) by the Seller free and clear of any Adverse Claim (other than any Adverse Claim arising solely as the result of any action taken by the
Purchaser). When the Purchaser makes a Purchase it shall acquire valid and perfected first priority ownership of each Purchased Receivable and the Related Security and Collections with respect thereto
free and clear of any Adverse Claim (other than any Adverse Claim arising solely </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>11</FONT></P>

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<P><FONT SIZE=2>
as the result of any action taken by the Purchaser), and no effective financing statement or other instrument similar in effect covering any Transferred Receivable, any interest therein, the Related
Security or Collections with respect thereto is on file in any recording office except such as may be filed in favor of Purchaser in accordance with this Agreement or in connection with any Adverse
Claim arising solely as the result of any action taken by the Purchaser. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;Each
Monthly Report and Weekly Report (if prepared by the Seller or one of its Affiliates, or to the extent that information contained therein is supplied by the
Seller or one of its Affiliates), information, exhibit, financial statement, document, book, record or report furnished or to be furnished at any time by or on behalf of the Seller to the Purchaser in
connection with this Agreement is or will be accurate in all material respects as of its date or (except as otherwise disclosed to the Purchaser at such time) as of the date so furnished, and no such
document contains or will contain any untrue statement of a material fact or omits or will omit to state a material fact necessary in order to make the statements contained therein, in the light of
the circumstances under which they were made, not misleading. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;The
principal place of business and chief executive office of the Seller and the office where the Seller keeps its records concerning the Transferred Receivables
are located at the address or addresses referred to in Section&nbsp;5.01(b). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;The
names and addresses of all the Lock-Box Banks, together with the account numbers of the Lock-Box Accounts at such Lock-Box
Banks, are specified in Exhibit&nbsp;B (as the same may be updated from time to time pursuant to Section&nbsp;5.01(g)). The name and address of the bank holding the Collection Account, together
with the account number of the Collection Account, are as specified in Exhibit&nbsp;B (as the same may be updated from time to time pursuant to Section&nbsp;5.01(g)). The names and addresses of
all the Store Account Banks, together with the account numbers of the Store Accounts at such Store Account Banks, are as specified in Exhibit&nbsp;E hereto, as such Exhibit&nbsp;E may be updated
from time to time pursuant to Section&nbsp;5.01(i). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;Other
than as set forth on Exhibit&nbsp;F hereto, the Seller has not been since January&nbsp;1, 1996, and is not currently, known by any tradename or
doing-business-as name. Other than as set forth on Exhibit&nbsp;F hereto, the Seller has not used since January&nbsp;1, 1996, and does not currently use, any tradename or
doing-business-as name. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;With
respect to any programs used by the Seller in the servicing of the Receivables, no sublicensing agreements are necessary in connection with the designation of
a new Collection Agent pursuant to Section&nbsp;6.01(b) so that such new Collection Agent shall have the benefit of such programs (</FONT><FONT SIZE=2><I>it being understood that,  </I></FONT><FONT SIZE=2>however, the Collection Agent, if other than
the Seller, shall be required to be bound by a confidentiality agreement reasonably acceptable to the Seller). </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;The
transfers of Transferred Receivables by the Seller to the Purchaser pursuant to this Agreement, and all other transactions between the Seller and the Purchaser,
have been and will be made in good faith and without intent to hinder, delay or defraud creditors of the Seller. </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kl2063_article_v_covenants"> </A>
<A NAME="toc_kl2063_6"> </A>
<BR></FONT><FONT SIZE=2><B>ARTICLE V<BR>  <BR>    COVENANTS    <BR>  </B></FONT></P>

<P><FONT SIZE=2><A
NAME="kl2063_section_5.01._covenants_of_the_seller."> </A>
<A NAME="toc_kl2063_7"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;SECTION 5.01.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Covenants of the Seller. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;From the date hereof until the first day following the Facility Termination Date on which all of the
Transferred Receivables are either collected in full or
become Defaulted Receivables: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;</FONT><FONT
SIZE=2><I>Compliance with Laws, Etc. </I></FONT><FONT SIZE=2>The Seller will comply in all material respects with all applicable laws, rules,
regulations and orders and preserve and maintain its corporate existence, rights, franchises, qualifications and privileges except to the extent that the failure so to comply </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>12</FONT></P>

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<P><FONT SIZE=2>
with such laws, rules and regulations or the failure so to preserve and maintain such rights, franchises, qualifications, and privileges would not materially adversely affect the collectibility of the
Transferred Receivables or the ability of the Seller to perform its obligations under this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;</FONT><FONT
SIZE=2><I>Offices, Records and Books of Account. </I></FONT><FONT SIZE=2>The Seller will keep its principal place of business and chief executive
office and the office where it keeps its records concerning the Transferred Receivables at the address of the Seller set forth under its name on the signature page to this Agreement or, upon
30&nbsp;days' prior written notice to the Purchaser, at any other locations within the United States. The Seller will not change its name or its state of organization, unless (i)&nbsp;the Seller
shall have provided the Purchaser with at least 30&nbsp;days' prior written notice thereof, (ii)&nbsp;no later than the effective date of such change, all actions required by
Section&nbsp;5.01(l) shall have been taken and completed and (iii)&nbsp;such name change would not be reasonably likely to mislead a Person as to the separate identity of the Purchaser and the
Seller. The Seller also will maintain and implement administrative and operating procedures (including, without limitation, an ability to recreate records evidencing Transferred Receivables and
related Contracts in the event of the destruction of the originals thereof), and keep and maintain all documents, books, records and other information reasonably necessary or advisable for the
collection of all Transferred Receivables (including, without limitation, records adequate to permit the daily identification of each new Transferred Receivable and all Collections of and adjustments
to each existing Transferred Receivable). The Seller shall make a notation in its books and records, including its computer files, to indicate which Receivables have been sold or contributed to the
Purchaser hereunder. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;</FONT><FONT
SIZE=2><I>Performance and Compliance with Contracts and Credit and Collection Policy. </I></FONT><FONT SIZE=2>The Seller will, at its expense, timely
and fully perform and comply with all material provisions, covenants and other promises required to be observed by it under the Contracts related to the Transferred Receivables, and timely and fully
comply in all material respects with the Credit and Collection Policy in regard to each Transferred Receivable and the related Contract. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;</FONT><FONT
SIZE=2><I>Sales, Liens, Etc. </I></FONT><FONT SIZE=2>Except for the sales and contributions of Receivables contemplated herein, the Seller will not
sell, assign (by operation of law or otherwise) or otherwise dispose of, or create or suffer to exist any Adverse Claim upon or with respect to, any Transferred Receivable, Related Security, related
Contract or Collections, or upon or with respect to any account to which any Collections of any Transferred Receivable are sent, or assign any right to receive income in respect thereof. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;</FONT><FONT
SIZE=2><I>Extension or Amendment of Transferred Receivables. </I></FONT><FONT SIZE=2>Except as provided in Section&nbsp;6.02(d), the Seller will not
extend, amend or otherwise modify the terms of any Transferred Receivable, or amend, modify or waive any term or condition of any Contract related thereto. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Change in Business or Credit and Collection Policy. </I></FONT><FONT SIZE=2>The Seller will not make any change in the character of its
business or in the Credit and Collection Policy that would, in either case, materially adversely affect the collectibility of the Transferred Receivables or the ability of the Seller to perform its
obligations under this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;</FONT><FONT
SIZE=2><I>Change in Payment Instructions to Obligors. </I></FONT><FONT SIZE=2>The Seller will not add or terminate any bank or bank account as a
Lock-Box Bank or Lock-Box Account from those listed in Exhibit&nbsp;B to this Agreement, or make any change in its instructions to Obligors regarding payments to be made to
any Lock-Box Bank, unless the Purchaser shall have received notice of such addition, termination or change (including an updated Exhibit&nbsp;B) and executed copies of
Lock-Box Agreements with each new Lock-Box Bank or with respect to each new Lock-Box Account. The Seller will not change the Collection Account, unless the
Purchaser shall have received notice of such change </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>13</FONT></P>

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<P><FONT SIZE=2>
(including an updated Exhibit&nbsp;B) and a fully executed Account Agreement with respect to such new Collection Account. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;</FONT><FONT
SIZE=2><I>Deposits to Lock-Box Accounts. </I></FONT><FONT SIZE=2>The Seller will instruct, or cause the Collection Agent (if not the
Seller) to instruct, all Obligors to remit all their payments in respect of Transferred Receivables to a Lock-Box Account. The Seller will instruct, or cause the Collection Agent (if not
the Seller) to instruct, the appropriate responsible employees at each DTC Store to remit all payments in respect of Receivables which, notwithstanding the aforementioned instructions given to the
Obligors, are received at such DTC Store on any Business Day to a Store Account at the end of such Business Day or by noon on the next Business Day. If the Seller shall receive any Collections
directly (rather than at a DTC Store), it shall immediately (and in any event within two Business Days) deposit the same to a Lock-Box Account or the Collection Account. The Seller will
not deposit or otherwise credit, or cause or permit to be so deposited or credited, to any Lock-Box Account cash or cash proceeds other than Collections of Transferred Receivables. The
Seller will instruct, or cause the Collection Agent (if not the Seller) to instruct, each bank holding a Store Account to remit, on each Business Day from and after the date of this Agreement, by wire
transfer, ACH debit or other electronic method, all funds deposited and collected in each Store Account to the Collection Account. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Store Accounts. </I></FONT><FONT SIZE=2>The Seller will not open or close any Store Account, unless the Purchaser and its assigns shall
have received prior notice of such change (including an updated Exhibit&nbsp;E) and a fully executed Bank Direction Agreement with respect to each new Store Account. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Bank Direction Agreements. </I></FONT><FONT SIZE=2>On or prior to March&nbsp;31, 2002, the Seller will deliver to the Purchaser fully
executed Bank Direction Agreements in form reasonably acceptable to the Purchaser and its assignee with respect to each Store Account other than those Store Accounts for which (i)&nbsp;the Purchaser
and its assignee may waive the requirements of this Section&nbsp;5.01(j) or (ii)&nbsp;Bank Direction Agreements have already been delivered pursuant to Section&nbsp;3.01(h). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;</FONT><FONT
SIZE=2><I>Audits. </I></FONT><FONT SIZE=2>The Seller will, from time to time during regular business hours as reasonably requested by the Purchaser or
its assigns, permit the Purchaser, or its agents, representatives or assigns, (i)&nbsp;to examine and make copies of and abstracts from all books, records and documents (including, without
limitation, computer tapes and disks) in the possession or under the control of the Seller relating to Transferred Receivables and the Related Security, including, without limitation, the related
Contracts, and (ii)&nbsp;to visit the offices and properties of the Seller for the purpose of examining such materials described in clause&nbsp;(i) above, and to discuss matters relating to
Transferred Receivables and the Related Security or the Seller's performance hereunder or under the Contracts with any of the officers or employees of the Seller having knowledge of such matters. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Further Assurances. </I></FONT><FONT SIZE=2>(i)&nbsp;The Seller agrees from time to time, at its expense, promptly to execute and deliver
all further instruments and documents, and to take all further actions, that to the Seller's knowledge may be necessary, or that the Purchaser or its assignee may reasonably request, to perfect,
protect or more fully evidence the sale and contribution of Receivables under this Agreement, or to enable the Purchaser or its assignee to exercise and enforce its respective rights and remedies
under this Agreement. Without limiting the foregoing, the Seller will, upon the request of the Purchaser or its assignee, (A)&nbsp;execute and file such financing or continuation statements, or
amendments thereto, and such other instruments and documents, that may be necessary or desirable to perfect, protect or evidence such Transferred Receivables; and (B)&nbsp;deliver to the Purchaser
copies of all Contracts relating to the Transferred Receivables and all records relating to such Contracts and the Transferred Receivables, whether in hard copy or in magnetic tape or diskette format
(which if in magnetic tape or diskette format shall be compatible with the Purchaser's computer equipment). </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>14</FONT></P>

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<UL>
<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;The
Seller authorizes the Purchaser or its assignee to file financing or continuation statements, and amendments thereto and assignments thereof, relating to the
Transferred Receivables and the Related Security, the related Contracts and the Collections with respect thereto without the signature of the Seller where permitted by law. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;</FONT><FONT
SIZE=2><I>Reporting Requirements. </I></FONT><FONT SIZE=2>The Seller will provide to the Purchaser the following: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;as
soon as available and in any event within 45&nbsp;days after the end of the first three quarters of each fiscal year of Dal-Tile International, an
unaudited consolidated balance sheet of Dal-Tile International and its consolidated Subsidiaries as of the end of such quarter and consolidated statements of income and retained earnings
of Dal-Tile International and its consolidated Subsidiaries for the period commencing at the end of the previous fiscal year of Dal-Tile International and ending with the end
of such quarter, certified by the chief financial officer of Dal-Tile International; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;as
soon as available and in any event within 90&nbsp;days after the end of each fiscal year of Dal-Tile International, a copy of the annual report
for such fiscal year of Dal-Tile International and its consolidated Subsidiaries, containing consolidated financial statements for such year audited by an independent public accountants
acceptable to the Purchaser; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;as
soon as possible and in any event within three Business Days after the occurrence of each Event of Termination or Incipient Event of Termination, a statement
of the chief financial officer of the Seller setting forth details of such Event of Termination or Incipient Event of Termination and the action that the Seller has taken and proposes to take with
respect thereto; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;promptly
after the sending or filing thereof, copies of all reports that Dal-Tile International sends to any of its security holders generally, and
copies of all Form&nbsp;10-K, Form&nbsp;10-Q and Form&nbsp;8-K reports and all other reports and registration statements that Dal-Tile
International or any Subsidiary thereof files with the Securities and Exchange Commission or any national securities exchange; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;promptly
after the filing or receiving thereof, copies of all reports and notices that the Seller or any Affiliate files under ERISA with the Internal Revenue
Service or the Pension Benefit Guaranty Corporation or the U.S. Department of Labor or that the Seller or any Affiliate receives from any of the foregoing or from any multiemployer plan (within the
meaning of Section&nbsp;4001(a)(3) of ERISA) to which the Seller or any Affiliate is or was, within the preceding five years, a contributing employer, in each case in respect of the assessment of
withdrawal liability or an event or condition which could, in the aggregate, result in the imposition of liability on the Seller and/or any such Affiliate in excess of $5,000,000; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;at
least 30&nbsp;days prior to any change in the Seller's name or the Seller's state of incorporation, a notice setting forth the new name or state of
incorporation and the effective date thereof; and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;(vii)&nbsp;such
other information respecting the Transferred Receivables or the condition or operations, financial or otherwise, of the Seller as the Purchaser may from time
to time reasonably request. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;</FONT><FONT
SIZE=2><I>Separate Conduct of Business.</I></FONT><FONT SIZE=2> The Seller will: (i)&nbsp;maintain separate corporate records and books of account
from those of the Purchaser; (ii)&nbsp;conduct its business from an office separate from that of the Purchaser, which office would not be reasonably likely to mislead a Person as to the separate
identity
of the Purchaser and the Seller; (iii)&nbsp;ensure that all oral and written communications, including without limitation, letters, invoices, purchase orders, contracts, statements and applications,
will be made solely in its own name; (iv)&nbsp;have stationery and other </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>15</FONT></P>

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<UL>

<P><FONT SIZE=2>
business forms and a mailing address and a telephone number separate from those of the Purchaser; (v)&nbsp;not pay or hold itself out as having agreed to pay, or as being liable for, the obligations
of the Purchaser; (vi)&nbsp;not engage in any transaction with the Purchaser except as contemplated by this Agreement or as permitted by the Sale Agreement; (vii)&nbsp;continuously maintain as
official records the resolutions, agreements and other instruments underlying the transactions contemplated by this Agreement; and (viii) disclose on its annual financial statements (A)&nbsp;the
effects of the transactions contemplated by this Agreement in accordance with generally accepted accounting principles and (B)&nbsp;that the assets of the Purchaser are not available to pay its
creditors. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;</FONT><FONT
SIZE=2><I>Taxes. </I></FONT><FONT SIZE=2>The Seller will file all Federal and other material tax returns and reports required by law to be filed by it
and will promptly pay all Federal and other material taxes and governmental charges at any time owing, except such as are being contested in good faith by appropriate proceedings and for which
appropriate reserves have been established in accordance with, and to the extent required by, generally accepted accounting principles in the United States. The Seller will pay when due any taxes
payable in connection with the Receivables, exclusive of taxes on or measured by income or gross receipts of the Agent, the Investors and the Banks (as each such term is defined in the Sale Agreement)
and the Purchaser. </FONT></P>

</UL>

<P><FONT SIZE=2><A
NAME="kl2063_section_5.02._grant_of_security_interest."> </A>
<A NAME="toc_kl2063_8"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 5.02.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Grant of Security Interest. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;To secure all obligations of the Seller arising in connection with this Agreement, and each other agreement
entered into in connection with this Agreement,
whether now or hereafter existing, due or to become due, direct or indirect, or absolute or contingent, including, without limitation, Indemnified Amounts, payments on account of Collections received
or deemed to be received, and any other amounts due the Purchaser hereunder, the Seller hereby assigns and grants to Purchaser a security interest in all of the Seller's right, title and interest now
or hereafter existing in, to and under all Receivables which do not constitute Transferred Receivables, the Related Security and all Collections with regard thereto and each Store Account, together
with all funds on deposit therein. </FONT></P>

<P><FONT SIZE=2><A
NAME="kl2063_section_5.03._covenant___kl201934"> </A>
<A NAME="toc_kl2063_9"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 5.03.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Covenant of the Seller and the Purchaser. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The Seller and the Purchaser have structured this Agreement with the intention that each
Purchase of Receivables hereunder and each contribution of Receivables
hereunder shall be treated as a sale of such Receivables by the Seller to the Purchaser and/or an absolute transfer of such Receivables by the Seller to the Purchaser for all purposes. The Seller and
the Purchaser shall record each Purchase and contribution as a sale and purchase and/or a capital contribution, on its books and records, and reflect each Purchase and contribution in its financial
statements and tax returns as a sale and purchase and/or capital contribution. In the event that, contrary to the mutual intent of the Seller and the Purchaser, any Purchase or contribution of
Receivables hereunder is not characterized as a sale and/or absolute transfer, the Seller shall, effective as of the date hereof, be deemed to have granted (and the Seller hereby does grant) to the
Purchaser a first priority security interest in and to any and all Receivables
that are intended to be or are purported to be Transferred Receivables, the Related Security and the proceeds thereof to secure the repayment of all amounts advanced to the Seller hereunder with
accrued interest thereon, and this Agreement shall be deemed to be a security agreement. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kl2063_article_vi_administration_and_collection"> </A>
<A NAME="toc_kl2063_10"> </A>
<BR></FONT><FONT SIZE=2><B>ARTICLE VI<BR>  <BR>    ADMINISTRATION AND COLLECTION    <BR>  </B></FONT></P>

<P><FONT SIZE=2><A
NAME="kl2063_section_6.01._designation_of_collection_agent."> </A>
<A NAME="toc_kl2063_11"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.01.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Designation of Collection Agent. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The servicing, administration and collection of the Transferred Receivables shall be conducted by such
Person (the "</FONT><FONT SIZE=2><I>Collection
Agent</I></FONT><FONT SIZE=2>") so designated hereunder from time to time. Until the Purchaser or its assignee gives notice to the Seller of the designation of a new Collection Agent, the Seller is
hereby designated as, and hereby agrees to perform the duties and obligations of, the Collection Agent pursuant to the terms hereof. The Seller agrees that </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>16</FONT></P>

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<P><FONT SIZE=2>
such notice may be given at any time during the existence of an Event of Termination in the Purchaser's or assignee's discretion. Upon the Seller's receipt of such notice, the Seller agrees that it
will terminate its activities as Collection Agent hereunder in a manner which the Purchaser (or its designee) believes will facilitate the transition of the performance of such activities to the new
Collection Agent, and the Seller shall use its best efforts to assist the Purchaser (or its designee) to take over the servicing, administration and collection of the Transferred Receivables,
including, without limitation, providing access to and copies of all computer tapes or disks and other documents or instruments that evidence or relate to Transferred Receivables maintained in its
capacity as Collection Agent and access to all employees and officers of the Seller responsible with respect thereto. The Purchaser at any time after giving such notice may designate as Collection
Agent itself or any Person that is a financial institution and/or in the business of servicing pools of receivables to succeed the Seller or any successor Collection Agent, if such Person shall
consent and agree to the terms hereof. The Collection Agent may, with the prior consent of the Purchaser, subcontract with any other Person for the servicing, administration or collection of
Transferred Receivables. Any such subcontract shall not affect the Collection Agent's liability for performance of its duties and obligations pursuant to the terms hereof. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>17</FONT></P>

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<P><FONT SIZE=2><A
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<P><FONT SIZE=2><A
NAME="km2063_section_6.02._duties_of_collection_agent."> </A>
<A NAME="toc_km2063_1"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.02.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Duties of Collection Agent. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a)&nbsp;The Collection Agent shall take or cause to be taken all such actions as may be necessary or
advisable to collect each Transferred Receivable from
time to time, all in accordance with applicable laws, rules and regulations, with reasonable care and diligence, and in accordance with the Credit and Collection Policy. The Purchaser hereby appoints
the Collection Agent, from time to time designated pursuant to Section&nbsp;6.01, as agent to enforce its ownership and other rights in the Transferred Receivables, the Related Security and the
Collections with respect thereto. In performing its duties as Collection Agent, the Collection Agent shall exercise the same care and apply the same policies as it would exercise and apply if it owned
the Transferred Receivables and shall act in the best interests of the Purchaser and its assignees. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Prior
to the 10th Business Day of each Fiscal Month, the Collection Agent shall prepare and forward to the Purchaser (i)&nbsp;a Monthly Report, relating to all
then outstanding Transferred Receivables, and the Related Security and Collections with respect thereto, in each case, as of the close of business of the Collection Agent on the last day of the
immediately preceding Fiscal Month, and (ii)&nbsp;if requested by the Purchaser, a listing by Obligor of all Transferred Receivables, together with an aging report of such Transferred Receivables. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;So
long as any Event of Termination or Incipient Event of Termination shall have occurred and be continuing, and if the Purchaser (or its assignee) shall so
request, on or prior to the second Business Day of each week, the Collection Agent shall prepare and forward to the Purchaser or such assignee a Weekly Report, relating to all then outstanding
Transferred Receivables, and the Related Security and Collections with respect thereto, in each case, as of the close of business of the Collection Agent on the last day of the immediately preceding
week. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;If
no Event of Termination or Incipient Event of Termination shall have occurred and be continuing, the Seller, while it is the Collection Agent, may, in accordance
with the Credit and Collection Policy, extend the maturity or adjust the Outstanding Balance of any Transferred Receivable as the Seller deems appropriate to maximize Collections thereof, or otherwise
amend or modify the terms of any Transferred Receivable. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;The
Seller shall deliver to the Collection Agent, and the Collection Agent shall hold in trust for the Seller and the Purchaser in accordance with their respective
interests, all documents, instruments and records (including, without limitation, computer tapes or disks) which evidence or relate to Transferred Receivables. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;The
Collection Agent shall as soon as practicable following receipt turn over to the Seller or any other Person entitled thereto any cash collections or other cash
proceeds received with respect to Receivables or other property not constituting Transferred Receivables. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;The
Collection Agent also shall perform the other obligations of the "Collection Agent" set forth in this Agreement with respect to the Transferred Receivables. </FONT></P>

<P><FONT SIZE=2><A
NAME="km2063_section_6.03._collection_agent_fee."> </A>
<A NAME="toc_km2063_2"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.03.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Collection Agent Fee. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The Purchaser shall pay to the Collection Agent, so long as it is acting as the Collection Agent hereunder, a
periodic collection fee (the
"</FONT><FONT SIZE=2><I>Collection Agent Fee</I></FONT><FONT SIZE=2>") of 0.50% per annum on the average daily aggregate Outstanding Balance of the Transferred Receivables, payable on each Settlement
Date or such other day during each calendar month as the Purchaser and the Collection Agent shall agree. </FONT></P>

<P><FONT SIZE=2><A
NAME="km2063_section_6.04._certain_rights_of_the_purchaser."> </A>
<A NAME="toc_km2063_3"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.04.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Certain Rights of the Purchaser. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a)&nbsp;The Purchaser may, at any time, notify the Obligors of Transferred Receivables of the
Purchaser's ownership of the Transferred Receivables. The
Seller hereby transfers to the Purchaser (and its assigns and designees) the exclusive ownership and control of the Lock-Box Accounts maintained by the Seller for the purpose of receiving
Collections. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>18</FONT></P>

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<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;At any time during the existence of an Event of Termination or an Incipient Event of Termination: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;The
Purchaser may direct the Obligors of Transferred Receivable that payment of all amounts payable under any Transferred Receivable shall be made directly to the
Purchaser or its designee. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;The
Seller shall, upon the Purchaser's request and at the Seller's expense, give notice of the Purchaser's ownership to each Obligor of Transferred Receivables and
direct that payments of all amounts payable under the Transferred Receivables be made directly to the Purchaser or its designee. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;At
the Purchaser's request and at the Seller's expense, the Seller and the Collection Agent shall (A)&nbsp;assemble all of the documents, instruments and other
records (including, without limitation, computer tapes and disks) that evidence or relate to the Transferred Receivables, and the related Contracts and Related Security, or that are otherwise
necessary or desirable to collect the Transferred Receivables, and shall make the same available to the Purchaser at a place selected by the Purchaser or its designee, and (B)&nbsp;segregate all
cash, checks and other instruments received by it from time to time constituting Collections of Transferred Receivables in a manner acceptable to the Purchaser and,
promptly upon receipt, remit all such cash, checks and instruments, duly indorsed or with duly executed instruments of transfer, to the Purchaser or its designee. The Purchaser shall also have the
right to make copies of all such documents, instruments and other records at any time. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;The
Seller authorizes the Purchaser to take any and all steps in the Seller's name and on behalf of the Seller that are necessary or desirable, in the
determination of the Purchaser, to collect amounts due under the Transferred Receivables, including, without limitation, endorsing the Seller's name on checks and other instruments representing
Collections of Transferred Receivables and enforcing the Transferred Receivables and the Related Security and related Contracts. </FONT></P>

</UL>

<P><FONT SIZE=2><A
NAME="km2063_section_6.05._rights_and_remedies."> </A>
<A NAME="toc_km2063_4"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.05.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Rights and Remedies. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a)&nbsp;If the Seller or the Collection Agent fails to perform any of its obligations under this Agreement, the
Purchaser may (but shall not be required
to) itself perform, or cause performance of, such obligation, and, if the Seller (as Collection Agent or otherwise) fails to so perform, the costs and expenses of the Purchaser incurred in connection
therewith shall be payable by the Seller as provided in Section&nbsp;8.01 or Section&nbsp;9.04 as applicable. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The
Seller shall perform all of its obligations under the Contracts related to the Transferred Receivables to the same extent as if the Seller had not sold or
contributed Transferred Receivables hereunder and the exercise by the Purchaser of its rights hereunder shall not relieve the Seller from such obligations or its obligations with respect to the
Transferred Receivables. The Purchaser shall not have any obligation or liability with respect to any Transferred Receivables or related Contracts, nor shall the Purchaser be obligated to perform any
of the obligations of the Seller thereunder. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The
Seller shall cooperate with the Collection Agent in collecting amounts due from Obligors in respect of the Transferred Receivables. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The
Seller hereby grants to Collection Agent an irrevocable power of attorney, with full power of substitution, coupled with an interest, to take in the name of the
Seller all steps necessary or advisable to endorse, negotiate or otherwise realize on any writing or other right of any kind held or transmitted by the Seller or transmitted or received by Purchaser
(whether or not from the Seller) in connection with any Transferred Receivable. </FONT></P>

<P><FONT SIZE=2><A
NAME="km2063_section_6.06._transfer_of_records_to_purchaser."> </A>
<A NAME="toc_km2063_5"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.06.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Transfer of Records to Purchaser. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Each Purchase and contribution of Receivables hereunder shall include the transfer to the Purchaser of
all of the Seller's right and title to and interest in
the records relating to such Receivables and shall include an irrevocable non-exclusive license to the </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>19</FONT></P>

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<P><FONT SIZE=2>
use of the Seller's computer software system to access and create such records. Such license shall be without royalty or payment of any kind, is coupled with an interest, and shall be irrevocable
until all of the Transferred Receivables are either collected in full or become Defaulted Receivables. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The
Seller shall take such action requested by the Purchaser, from time to time hereafter, that may be necessary or appropriate to ensure that the Purchaser has an enforceable
ownership interest in the records relating to the Transferred Receivables and rights (whether by ownership, license or sublicense) to the use of the Seller's computer software system to access and
create such records. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;In
recognition of the Seller's need to have access to the records transferred to the Purchaser hereunder, the Purchaser hereby grants to the Seller an irrevocable license to access
such records in connection with any activity arising in the ordinary course of the Seller's business or in performance of its duties as Collection Agent, provided that (i)&nbsp;the Seller shall not
disrupt or otherwise interfere with the Purchaser's use of and access to such records during such license period and (ii)&nbsp;the Seller consents to the assignment and delivery of the records
(including any information contained therein relating to the Seller or its operations) to any assignees or transferees of the Purchaser provided they agree to hold such records confidential. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="km2063_article_vii_events_of_termination"> </A>
<A NAME="toc_km2063_6"> </A>
<BR></FONT><FONT SIZE=2><B>ARTICLE VII<BR>  <BR>    EVENTS OF TERMINATION    <BR>  </B></FONT></P>

<P><FONT SIZE=2><A
NAME="km2063_section_7.01._events_of_termination."> </A>
<A NAME="toc_km2063_7"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 7.01.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Events of Termination. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;If any of the following events ("</FONT><FONT SIZE=2><I>Events of Termination"</I></FONT><FONT SIZE=2>) shall
occur and be continuing: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The
Collection Agent (i)&nbsp;shall fail to perform or observe any term, covenant or agreement under this Agreement (other than as referred to in
clause&nbsp;(ii) of this subsection (a)) and such failure shall remain unremedied for five Business Days, or in the case of a failure of the Collection Agent to deliver any Monthly Report or Weekly
Report when required hereunder, three Business Days or (ii)&nbsp;shall fail to make when due any payment or deposit to be made by it under this Agreement; or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The
Seller shall fail to make any payment required under Section&nbsp;2.04(a) or 2.04(b); or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Any
representation or warranty made or deemed made by or on behalf of the Seller under or in connection with this Agreement or any information or report delivered
by the Seller pursuant to this
Agreement shall prove to have been incorrect or untrue in any material respect when made or deemed made or delivered; or </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The
Seller shall fail to perform or observe any other term, covenant or agreement contained in this Agreement on its part to be performed or observed and any such
failure shall remain unremedied for 10 Business Days after written notice thereof shall have been given to the Seller by the Purchaser or its assignees; or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;The
Seller or any of its Affiliates shall fail to pay any principal of or premium or interest on any of its Debt (other than Debt outstanding under the Credit
Agreement) which is outstanding in a principal amount of at least $5,000,000 in the aggregate when the same becomes due and payable (whether by scheduled maturity, required prepayment, acceleration,
demand or otherwise), and such failure shall continue after the applicable grace period, if any, specified in the agreement or instrument relating to such Debt; or any other event shall occur or
condition shall exist under any agreement or instrument relating to any such Debt and shall continue after the applicable grace period, if any, specified in such agreement or instrument, if the effect
of such event or condition is to accelerate the maturity of such Debt; or any such Debt shall be declared to be due and payable, or required to be prepaid (other than by a regularly scheduled required
prepayment), redeemed, purchased or defeased, or an offer to repay, redeem, purchase or defease such Debt shall be required to be made, in each case prior to the stated maturity thereof; or </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>20</FONT></P>

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<A NAME="page_km2063_1_21"> </A>

<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;Any Purchase or contribution of Receivables hereunder, the Related Security and the Collections with respect thereto shall for any reason cease to constitute valid
and perfected ownership of such Receivables, Related Security and Collections free and clear of any Adverse Claim; or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;Dal-Tile
International, Dal-Tile Group or the Seller shall generally not pay its debts as such debts become due, or shall admit in writing
its inability to pay its debts generally, or shall make a general assignment for the benefit of creditors; or any proceeding shall be instituted by or against Dal-Tile International,
Dal-Tile Group or the Seller seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment, protection, relief, or
composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking the entry of an order for relief or the appointment of a receiver,
trustee, custodian or other similar official for it or for any substantial part of its property and, in the case of any such proceeding instituted against it (but not instituted by
Dal-Tile International, Dal-Tile Group or the Seller), either such proceeding shall remain undismissed or unstayed for a period of 45&nbsp;days, or any of the actions sought
in such proceeding (including, without limitation, the entry of an order for relief against, or the appointment of a receiver, trustee, custodian or other similar official for, it or for any
substantial part of its property) shall occur; or Dal-Tile International, Dal-Tile Group or the Seller shall take any corporate action to authorize any of the actions set forth
above in this subsection (g); or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;an
Event of Termination shall have occurred under the Sale Agreement; or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;There
shall have occurred any material adverse change in the business, financial condition or operations of the Seller since December&nbsp;29, 2000, that could
reasonably be expected to adversely affect the value or collectibility of the Transferred Receivables or the ability of the Seller to collect Transferred Receivables or otherwise perform its
obligations under this Agreement; </FONT></P>

<P><FONT SIZE=2>then,
and in any such event, the Purchaser may, by notice to the Seller, take either or both of the following actions: (x)&nbsp;declare the Facility Termination Date to have occurred (in which case
the Facility Termination Date shall be deemed to have occurred) and (y)&nbsp;without limiting any right under this Agreement to replace the Collection Agent, designate itself or another Person that
is a financial institution and/or in the business of servicing pools of receivables to succeed the Seller as Collection Agent; </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2>, that,
automatically upon the occurrence of any event (without any requirement for the passage of time or the giving of notice) described in paragraph&nbsp;(g) of this Section&nbsp;7.01, the Facility
Termination Date shall occur, the Seller (if it is then serving as the Collection Agent) shall cease to be the Collection Agent, and the Purchaser (or its assigns or designees) shall become the
Collection Agent. Upon any such declaration or designation or upon such automatic termination, the Purchaser shall have, in addition to the rights and remedies under this Agreement, all other rights
and remedies with respect to the Receivables provided after default under the UCC and under other applicable law, which rights and remedies shall be cumulative. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="km2063_article_viii_indemnification"> </A>
<A NAME="toc_km2063_8"> </A>
<BR></FONT><FONT SIZE=2><B>ARTICLE VIII<BR>  <BR>    INDEMNIFICATION    <BR>  </B></FONT></P>

<P><FONT SIZE=2><A
NAME="km2063_section_8.01._indemnities_by_the_seller."> </A>
<A NAME="toc_km2063_9"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.01.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Indemnities by the Seller. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Without limiting any other rights which the Purchaser may have hereunder or under applicable law, the Seller
hereby agrees to indemnify the Purchaser and its
assigns and transferees (each, an "</FONT><FONT SIZE=2><I>Indemnified Party</I></FONT><FONT SIZE=2>") from and against any and all damages, claims, losses, liabilities and related costs and expenses,
including reasonable attorneys' fees and disbursements (all of the foregoing being collectively referred to as "</FONT><FONT SIZE=2><I>Indemnified Amounts</I></FONT><FONT SIZE=2>"), awarded against
or incurred by any Indemnified Party arising out of or as a result of this Agreement or the purchase or </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>21</FONT></P>

<HR NOSHADE>
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<A NAME="page_km2063_1_22"> </A>

<P><FONT SIZE=2>
contribution of any Transferred Receivables or in respect of any Transferred Receivable or any Contract, including, without limitation, arising out of or as a result of: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;the
characterization in any Monthly Report or Weekly Report or other statement made by the Seller of any Transferred Receivable as an Eligible Receivable which is
not an Eligible Receivable as of the date of such Monthly Report or Weekly Report or statement; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;any
representation or warranty or statement made or deemed made by the Seller (or any of its officers) under or in connection with this Agreement, which shall have
been incorrect in any material respect when made; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;the
failure by the Seller to comply with any applicable law, rule or regulation with respect to any Transferred Receivable or the related Contract; or the failure
of any Transferred Receivable or the related Contract to conform to any such applicable law, rule or regulation; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;the
failure to vest in the Purchaser absolute ownership of the Receivables that are, or that purport to be, the subject of a Purchase or contribution under this
Agreement and the Related Security and Collections in respect thereof, free and clear of any Adverse Claim; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;the
failure of the Seller to have filed, or any delay in filing, financing statements or other similar instruments or documents under the UCC of any applicable
jurisdiction or other applicable laws with respect to any Receivables that are, or that purport to be, Transferred Receivables and the Related Security and Collections in respect thereof, whether at
the time of any Purchase or contribution or at any subsequent time; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;any
dispute, claim, offset or defense (other than discharge in bankruptcy of the Obligor or other financial inability of the Obligor to pay) of the Obligor to the
payment of any Receivable that is, or that purports to be, a Transferred Receivable (including, without limitation, a defense based on such Receivable or the related Contract not being a legal, valid
and binding obligation of such Obligor enforceable against it in accordance with its terms), or any other claim resulting from the sale of the merchandise or services related to such Receivable or the
furnishing or failure to furnish such merchandise or services or relating to collection activities with respect to such Receivable (if such collection activities were performed by the Seller acting as
Collection Agent); </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;(vii)&nbsp;any
failure of the Seller, as Collection Agent or otherwise, to perform its duties or obligations in accordance with the provisions hereof or to perform its
duties or obligations under any Contract; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;(viii)&nbsp;any
products liability or other claim arising out of or in connection with merchandise, insurance or services which are the subject of any Contract; </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ix)&nbsp;the
commingling of Collections of Transferred Receivables by the Seller or a designee of the Seller, as Collection Agent or otherwise, at any time with other funds
of the Seller or an Affiliate of the Seller; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(x)&nbsp;any
investigation, litigation or proceeding related to this Agreement or the use of proceeds of Purchases or the ownership of Receivables, the Related Security, or
Collections with respect thereto or in respect of any Receivable, Related Security or Contract; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(xi)&nbsp;any
failure of the Seller to comply with its covenants contained in this Agreement; </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;(xii)&nbsp;any
Collection Agent Fees or other costs and expenses payable to any replacement Collection Agent which are reasonable and consistent with industry practice, to
the extent in excess of the Collection Agent Fees payable to the Seller hereunder; </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>22</FONT></P>

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<A NAME="page_km2063_1_23"> </A>
<UL>

<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;(xiii)&nbsp;any claim brought by any Person other than an Indemnified Party arising from any activity by the Seller or any Affiliate of the Seller in servicing,
administering or collecting any Transferred Receivable; or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;(xiv)&nbsp;any
Transferred Receivable becoming (in whole or in part) a Diluted Receivable. </FONT></P>

</UL>

<P><FONT SIZE=2>It
is expressly agreed and understood by the parties hereto (i)&nbsp;that the foregoing indemnification is not intended to, and shall not, constitute a guarantee of or other recourse for the
collectibility or payment of the Transferred Receivables and (ii)&nbsp;that nothing in this Section&nbsp;8.01 shall require the Seller to indemnify any Person (A)&nbsp;for Receivables which are
not collected, not paid or uncollectible on account of the insolvency, bankruptcy, or financial inability to pay of the applicable Obligor, (B)&nbsp;for damages, losses, claims or liabilities or
related costs or expenses to the extent found in a final non-appealable judgment of a court of competent jurisdiction to have resulted from such Person's gross negligence or willful
misconduct, or (C)&nbsp;for any income taxes or franchise taxes incurred by such Person arising out of or as a result of this Agreement or in respect of any Transferred Receivable or any Contract. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="km2063_article_ix_miscellaneous"> </A>
<A NAME="toc_km2063_10"> </A>
<BR></FONT><FONT SIZE=2><B>ARTICLE IX<BR>  <BR>    MISCELLANEOUS    <BR>  </B></FONT></P>

<P><FONT SIZE=2><A
NAME="km2063_section_9.01._amendments,_etc."> </A>
<A NAME="toc_km2063_11"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;SECTION 9.01.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Amendments, Etc. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;No amendment or waiver of any provision of this Agreement or consent to any departure by the Seller therefrom shall be
effective unless in a writing signed by
the Purchaser and, in the case of any amendment, also signed by the Seller, and then such amendment, waiver or consent shall be effective only in the specific instance and for the specific purpose for
which given. No failure on the part of any party hereto to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any
right hereunder preclude any other or further exercise thereof or the exercise of any other right. </FONT></P>

<P><FONT SIZE=2><A
NAME="km2063_section_9.02._notices,_etc."> </A>
<A NAME="toc_km2063_12"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;SECTION 9.02.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Notices, Etc. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;All notices and other communications hereunder shall, unless otherwise stated herein, be in writing (which shall include
facsimile communication) and be faxed
or delivered, to each party hereto, at its address set forth under its name on the signature pages hereof or at such other address as shall be designated by such party in a written notice to the other
parties hereto. Notices and communications by facsimile shall be effective when sent (and shall be followed by hard copy sent by regular mail), and notices and communications sent by other means shall
be effective when received. </FONT></P>

<P><FONT SIZE=2><A
NAME="km2063_section_9.03._binding_effect;_assignability."> </A>
<A NAME="toc_km2063_13"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 9.03.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Binding Effect; Assignability. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a)&nbsp;This Agreement shall be binding upon and inure to the benefit of the Seller, the Purchaser and
their respective successors and assigns; </FONT> <FONT SIZE=2><I>provided, however</I></FONT><FONT SIZE=2>, that the Seller may not assign its rights or obligations hereunder or any interest herein without the prior written consent of the
Purchaser. In connection with any sale or assignment by the Purchaser of all or a portion of the Transferred Receivables, the buyer or assignee, as the case may be, shall, to the extent of its
purchase or assignment, have all rights of the Purchaser under this Agreement (as if such buyer or assignee, as the case may be, were the Purchaser hereunder) except to the extent specifically
provided in the agreement between the Purchaser and such buyer or assignee, as the case may be. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;This
Agreement shall create and constitute the continuing obligations of the parties hereto in accordance with its terms, and shall remain in full force and effect
until such time, after the Facility Termination Date, when all of the Transferred Receivables are either collected in full or become Defaulted Receivables; </FONT><FONT SIZE=2><I>provided, however,  </I></FONT><FONT SIZE=2>that rights and remedies
with respect to any breach of any representation and warranty made by the Seller pursuant to Article&nbsp;IV and the provisions of
Article&nbsp;VIII and Sections 9.04, 9.05 and 9.06 shall be continuing and shall survive any termination of this Agreement. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>23</FONT></P>

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<P><FONT SIZE=2><A
NAME="km2063_section_9.04._costs,_expenses_and_taxes."> </A>
<A NAME="toc_km2063_14"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 9.04.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Costs, Expenses and Taxes. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a)&nbsp;In addition to the rights of indemnification granted to the Purchaser pursuant to Article&nbsp;VIII
hereof, the Seller agrees to pay on demand all
reasonable costs and expenses in connection with the preparation, execution and delivery of this Agreement and the other documents and agreements to be delivered hereunder, including, without
limitation, the reasonable fees and out-of-pocket expenses of counsel for the Purchaser with respect thereto and with respect to advising the Purchaser as to its rights and
remedies under this Agreement, and the Seller agrees to pay all costs and expenses, if any (including reasonable counsel fees and expenses), in connection with the enforcement of this Agreement and
the other documents to be delivered hereunder </FONT><FONT SIZE=2><I>excluding, however, </I></FONT><FONT SIZE=2>any costs of enforcement or collection of Transferred Receivables which are not paid
on account of the insolvency, bankruptcy or financial inability to pay of the applicable Obligor. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;In
addition, the Seller agrees to pay any and all stamp and other taxes and fees payable in connection with the execution, delivery, filing and recording of this
Agreement or the other documents or agreements to be delivered hereunder, and the Seller agrees to save each Indemnified Party harmless from and against any liabilities with respect to or resulting
from any delay in paying or omission to pay such taxes and fees. </FONT></P>

<P><FONT SIZE=2><A
NAME="km2063_section_9.05._no_proceedings."> </A>
<A NAME="toc_km2063_15"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 9.05.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;No Proceedings. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The Seller hereby agrees that it will not institute or join any other Person in instituting against the Purchaser any
proceeding of the type referred to in
Section&nbsp;7.01(g) so long as there shall not have elapsed one year plus one day since the later of (i)&nbsp;the Facility Termination Date and (ii)&nbsp;the date on which all of the
Transferred Receivables are either collected in full or become Defaulted Receivables. </FONT></P>

<P><FONT SIZE=2><A
NAME="km2063_section_9.06._confidentiality."> </A>
<A NAME="toc_km2063_16"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 9.06.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Confidentiality. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Unless otherwise required by applicable law, each party hereto agrees to maintain the confidentiality of this
Agreement in communications with third parties
and otherwise; provided that this Agreement may be disclosed to (i)&nbsp;third parties to the extent such disclosure is made pursuant to a written agreement of confidentiality in form and substance
reasonably satisfactory to the other party hereto, and (ii)&nbsp;such party's legal counsel and auditors and the Purchaser's assignees, if they agree in each case to hold it confidential; </FONT> <FONT SIZE=2><I>provided, </I></FONT><FONT SIZE=2>that
such party shall have no obligation of confidentiality in respect of any information which may be generally available to the public or
becomes available to the public through no fault of such party. </FONT></P>

<P><FONT SIZE=2><A
NAME="km2063_section_9.07._governing_law."> </A>
<A NAME="toc_km2063_17"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2><B>SECTION 9.07.</B></FONT><FONT SIZE=2><I>&nbsp;&nbsp;</I></FONT><FONT SIZE=2><B><I>GOVERNING LAW. </I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;</FONT><FONT SIZE=2><B>THIS AGREEMENT SHALL, IN ACCORDANCE
WITH SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK, BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO ANY CONFLICT OF LAWS PRINCIPLES THEREOF THAT WOULD CALL FOR THE APPLICATION OF THE LAWS OF ANY OTHER
JURISDICTION, EXCEPT TO THE EXTENT THAT, PURSUANT TO THE UCC OF THE STATE OF NEW YORK, THE PERFECTION AND THE EFFECT OF
PERFECTION OR NON-PERFECTION OF THE PURCHASER'S OWNERSHIP OF OR SECURITY INTEREST IN THE RECEIVABLES ARE GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF NEW YORK.  </B></FONT></P>

<P><FONT SIZE=2><B> <A NAME="km2063_section_9.08._third_party_beneficiary."> </A>
<A NAME="toc_km2063_18"> </A>
<BR>    </B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;SECTION 9.08.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Third Party Beneficiary. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Each of the parties hereto hereby acknowledges that the Purchaser may assign all or
any portion of its rights under this Agreement and that such assignees may
(except as otherwise agreed to by such assignees) further assign their rights under this Agreement, and the Seller hereby consents to any such assignments. All such assignees, including parties to the
Sale Agreement in the case of assignment to such parties, shall be third party beneficiaries of, and shall be entitled to enforce the Purchaser's rights and remedies under, this Agreement to the same
extent as if they were parties thereto, except to the extent specifically limited under the terms of their assignment. </FONT></P>

<P><FONT SIZE=2><A
NAME="km2063_section_9.09._execution_in_counterparts."> </A>
<A NAME="toc_km2063_19"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 9.09.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Execution in Counterparts. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed
to be an original and all of which when taken
together shall constitute one and the same agreement. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>24</FONT></P>

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<A NAME="page_km2063_1_25"> </A>

<P><FONT SIZE=2><A
NAME="km2063_section_9.10._consent_to_jurisdiction."> </A>
<A NAME="toc_km2063_20"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 9.10.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Consent to Jurisdiction. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a)&nbsp;Each party hereto hereby irrevocably submits to the non-exclusive jurisdiction of any New York State
or Federal court sitting in New
York City in any action or proceeding arising out of or relating to this Agreement, and each party hereto hereby irrevocably agrees that all claims in respect of such action or proceeding may be heard
and determined in such New York State court or, to the extent permitted by law, in such Federal court. The parties hereto hereby irrevocably waive, to the fullest extent they may effectively do so,
the defense of an inconvenient forum to the maintenance of such action or proceeding. The parties hereto agree that a final judgment in any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Each
party hereto consents to the service of any and all process in any such action or proceeding by the mailing of copies of such process to it at its address
specified in Section&nbsp;9.02. Nothing in this Section&nbsp;9.10 shall affect the right of the parties hereto to serve legal process in any other manner permitted by law. </FONT></P>

<P><FONT SIZE=2><A
NAME="km2063_section_9.11._waiver_of_jury_trial."> </A>
<A NAME="toc_km2063_21"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2><B>SECTION 9.11.</B></FONT><FONT SIZE=2><I>&nbsp;&nbsp;</I></FONT><FONT SIZE=2><B><I>WAIVER OF JURY TRIAL. </I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;</FONT><FONT SIZE=2><B>EACH PARTY HERETO HEREBY
WAIVES, TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, TRIAL BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING,
DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT, CONTRACT OR
OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS AGREEMENT OR ANY DOCUMENT EXECUTED OR DELIVERED PURSUANT HERETO</B></FONT><FONT SIZE=2>. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;[Remainder
of page intentionally left blank.] </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>25</FONT></P>

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<P><FONT SIZE=2><A
NAME="page_kn2063_1_26"> </A>
&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their respective officers thereunto duly authorized, as of the date first above written. </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="80%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>SELLER:</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>DAL-TILE CORPORATION</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="35%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="35%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="35%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="35%"><HR NOSHADE><FONT SIZE=2> Title:</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="35%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><BR>
7834 C.F. Hawn Freeway<BR>
P.O.&nbsp;Box 170130<BR>
Dallas, Texas 75217<BR>
Attention: Scott Veldman<BR>
Facsimile Number: (214)&nbsp;309-4390</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="35%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2><BR>
PURCHASER:</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><BR>
DTSC,&nbsp;INC.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="35%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="35%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="35%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="35%"><HR NOSHADE><FONT SIZE=2> Title:</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="35%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><BR>
c/o Global Securitization Services, LLC<BR>
103 Foulk Road, Suite 205-11<BR>
Wilmington, Delaware 19803<BR>
Attention: Frank B. Bilotta<BR>
Facsimile Number: (302)&nbsp;652-8667</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="35%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<P ALIGN="CENTER"><FONT SIZE=2>26</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=1,SEQ=29,EFW="2062020",CP="DAL-TILE INTERNATIONAL INC.",DN="3",CHK=659148,FOLIO='26',FILE='DISK022:[01DFW3.01DFW2063]KN2063A.;7',USER='JBAKER',CD='29-OCT-2001;15:14' -->
<A NAME="page_kn2063_2_1"> </A>
<P ALIGN="CENTER"><FONT SIZE=2><B>EXHIBIT A<BR>
CREDIT AND COLLECTION POLICY  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>A&#150;1</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=2,SEQ=30,EFW="2062020",CP="DAL-TILE INTERNATIONAL INC.",DN="3",CHK=657376,FOLIO='A-1',FILE='DISK022:[01DFW3.01DFW2063]KN2063A.;7',USER='JBAKER',CD='29-OCT-2001;15:14' -->
<!-- Generated by Merrill Corporation (www.merrillcorp.com) -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="page_ko2063_1_1"> </A> </FONT> <FONT SIZE=2><B>EXHIBIT B  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B> LOCK-BOX BANKS AND COLLECTION ACCOUNT  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B> Lock-Box Banks  </B></FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="78%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="74%" ALIGN="LEFT"><FONT SIZE=1><B>Bank<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="8%" ALIGN="CENTER"><FONT SIZE=1><B>P.O.&nbsp;Box</B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="13%" ALIGN="CENTER"><FONT SIZE=1><B>Account Number</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="74%" VALIGN="TOP"><FONT SIZE=2>Bank One, N.A.<BR>
1717 Main Street<BR>
Dallas, Texas 75201</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" VALIGN="TOP"><FONT SIZE=2>70671</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" VALIGN="TOP"><FONT SIZE=2>5596297</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->
<P ALIGN="CENTER"><FONT SIZE=2><B>Collection Account  </B></FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="80%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="72%" ALIGN="LEFT"><BR><FONT SIZE=1><B>Bank<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%"><FONT SIZE=1><B><BR>&nbsp;</B></FONT></TH>
<TH WIDTH="6%" ALIGN="CENTER"><FONT SIZE=1><B><BR>
P.O.&nbsp;Box</B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%"><FONT SIZE=1><B><BR>&nbsp;</B></FONT></TH>
<TH WIDTH="17%" ALIGN="CENTER"><FONT SIZE=1><B><BR>
Account Number</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="72%" VALIGN="TOP"><FONT SIZE=2>Bank of America, N.A.<BR>
901 Main Street<BR>
P.O.&nbsp;Box 832409<BR>
Dallas, Texas 75202</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%" VALIGN="TOP"><FONT SIZE=2>N.A.</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="17%" ALIGN="RIGHT" VALIGN="TOP"><FONT SIZE=2>3751842080</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<P ALIGN="CENTER"><FONT SIZE=2>B&#150;1</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=1,SEQ=31,EFW="2062020",CP="DAL-TILE INTERNATIONAL INC.",DN="3",CHK=873355,FOLIO='B-1',FILE='DISK022:[01DFW3.01DFW2063]KO2063A.;3',USER='JBAKER',CD='29-OCT-2001;15:14' -->
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<P ALIGN="RIGHT"><FONT SIZE=2><A
NAME="page_kp2063_1_1"> </A> </FONT></P>

<!-- TOC_END -->
<P ALIGN="RIGHT"><FONT SIZE=2><A
NAME="kp2063_exhibit_c"> </A>
<A NAME="toc_kp2063_1"> </A>
<BR></FONT><FONT SIZE=2><B>EXHIBIT C    <BR>  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kp2063_form_of_deferred_purchase_price_note"> </A>
<A NAME="toc_kp2063_2"> </A>
<BR></FONT><FONT SIZE=2><B>FORM OF DEFERRED PURCHASE PRICE NOTE    <BR>  </B></FONT></P>

<P ALIGN="RIGHT"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;New York, New York<BR>
October&nbsp;26, 2001 </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;FOR
VALUE RECEIVED, DTSC,&nbsp;INC., a Delaware corporation (the "</FONT><FONT SIZE=2><I>Purchaser</I></FONT><FONT SIZE=2>"), hereby promises to pay to DAL-TILE
CORPORATION (the "</FONT><FONT SIZE=2><I>Seller</I></FONT><FONT SIZE=2>") the principal amount of this Note, determined as described below, together with interest thereon at a rate per annum equal at
any time to 2.00% per annum above the current rate of interest quoted for 30&nbsp;day commercial paper in the Wall Street Journal under the caption Dealer Commercial Paper, in each case in lawful
money of the United States of America. Capitalized terms used herein but not defined herein shall have the meanings assigned to such terms in the Purchase and Contribution Agreement dated as of
October&nbsp;26, 2001 between the Seller and the Purchaser (such agreement, as it may from time to time be amended, restated or otherwise modified in accordance with its terms, the
"</FONT><FONT SIZE=2><I>Purchase and Contribution Agreement</I></FONT><FONT SIZE=2>"). This Note is the note referred to in the definition of "</FONT><FONT SIZE=2><I>Deferred Purchase
Price</I></FONT><FONT SIZE=2>" in the Purchase and Contribution Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The
aggregate principal amount of this Note at any time shall be equal to the difference between (a)&nbsp;the sum of the aggregate principal amount of this Note on the date of the
issuance hereof and each addition to the principal amount of this Note pursuant to the terms of Section&nbsp;2.02 of the Purchase and Contribution Agreement minus (b)&nbsp;the aggregate amount of
all payments made in respect of the principal amount of this Note, in each case, as recorded on the schedule annexed to and constituting a part of this Note, but failure to so record shall not affect
the obligations of the Purchaser to the Seller. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The
entire principal amount of this Note shall be due and payable one year and one day after the Facility Termination Date or such later date as may be agreed in writing by the Seller
and the Purchaser. The principal amount of this Note may, at the option of the Purchaser, be prepaid in whole at any time or in part from time to time. Interest on this Note shall be paid in arrears
on each Settlement Date, at maturity and thereafter on demand. All payments hereunder shall be made by wire
transfer of immediately available funds to such account of the Seller as the Seller may designate in writing. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding
any other provisions contained in this Note, in no event shall the rate of interest payable by the Purchaser under this Note exceed the highest rate of interest
permissible under applicable law. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The
obligations of the Purchaser under this Deferred Purchase Price Note are subordinated in right of payment, to the extent set forth in Section&nbsp;2.03(c) of the Purchase and
Contribution Agreement, to the prior payment in full of all Capital, Yield, Fees and other obligations of the Purchaser under the Sale Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding
any provision to the contrary in this Deferred Purchase Price Note or elsewhere, other than with respect to payments specifically permitted by Section&nbsp;2.03(c)
of the Purchase and Contribution Agreement, no demand for any payment may be made hereunder, no payment shall be due with respect hereto and the Seller shall have no claim for any payment hereunder
prior to the occurrence of the Facility Termination Date and then only on the date, if ever, when all Capital, Yield, Fees and other obligations owing under the Sale Agreement shall have been paid in
full. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;In
the event that, notwithstanding the foregoing provision limiting such payment, the Seller shall receive any payment or distribution on this Deferred Purchase Price Note which is
not specifically permitted by Section&nbsp;2.03(c) of the Purchase and Contribution Agreement, such payment shall be </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>C&#150;1</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=1,SEQ=32,EFW="2062020",CP="DAL-TILE INTERNATIONAL INC.",DN="3",CHK=357550,FOLIO='C-1',FILE='DISK022:[01DFW3.01DFW2063]KP2063A.;9',USER='JBAKER',CD='29-OCT-2001;15:14' -->
<A NAME="page_kp2063_1_2"> </A>

<P><FONT SIZE=2>
received and held in trust by the Seller for the benefit of the entities to whom the obligations are owed under the Sale Agreement and shall be promptly paid over to such entities. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The
Purchaser hereby waives diligence, presentment, demand, protest and notice of any kind whatsoever. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Neither
this Note, nor any right of the Seller to receive payments hereunder, shall, without the prior written consent of the Purchaser and (so long as the Sale Agreement remains in
effect or any amounts remain outstanding thereunder) the Agent under the Sale Agreement, be assigned, transferred, exchanged, pledged, hypothecated, participated or otherwise conveyed, other than the
pledge of this Note to the administrative agent under the Credit Agreement (as defined in the Sale Agreement). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>THIS NOTE SHALL, IN ACCORDANCE WITH SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK, BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO ANY CONFLICT OF LAWS PRINCIPLES THEREOF THAT WOULD CALL FOR THE APPLICATION OF THE LAWS OF ANY OTHER
JURISDICTION.</B></FONT></P>

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<TABLE WIDTH="78%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="39%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><BR>
DTSC,&nbsp;INC.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="39%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="51%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="39%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="51%"><HR NOSHADE><FONT SIZE=2> Title:</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<P ALIGN="CENTER"><FONT SIZE=2>C&#150;2</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=2,SEQ=33,EFW="2062020",CP="DAL-TILE INTERNATIONAL INC.",DN="3",CHK=485032,FOLIO='C-2',FILE='DISK022:[01DFW3.01DFW2063]KP2063A.;9',USER='JBAKER',CD='29-OCT-2001;15:14' -->
<A NAME="page_kp2063_1_3"> </A>
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kp2063_schedule_to_deferred_purchase_price_note"> </A>
<A NAME="toc_kp2063_3"> </A>
<BR></FONT><FONT SIZE=2><B>SCHEDULE TO DEFERRED PURCHASE PRICE NOTE    <BR>  </B></FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD COLSPAN=9><HR NOSHADE></TD>
</TR>
<TR VALIGN="BOTTOM">
<TH WIDTH="18%" ALIGN="CENTER"><FONT SIZE=1><B>Date</B></FONT><BR></TH>
<TH WIDTH="3%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="18%" ALIGN="CENTER"><FONT SIZE=1><B>Addition to Principal Amount</B></FONT><BR></TH>
<TH WIDTH="3%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="18%" ALIGN="CENTER"><FONT SIZE=1><B>Amount of Principal Paid Paidor Prepaid</B></FONT><BR></TH>
<TH WIDTH="3%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="18%" ALIGN="CENTER"><FONT SIZE=1><B>Unpaid Principal Balance</B></FONT><BR></TH>
<TH WIDTH="3%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="18%" ALIGN="CENTER"><FONT SIZE=1><B>Notation Made By</B></FONT><BR></TH>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=9><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=9><BR><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=9><BR><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=9><BR><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=9><BR><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=9><BR><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=9><BR><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=9><BR><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=9><BR><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=9><BR><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=9><BR><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=9><BR><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=9><BR><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=9><BR><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=9><BR><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=9><BR><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=9><BR><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=9><BR><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=9><BR><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=9><BR><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=9><BR><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=9><BR><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=9><BR><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=9><BR><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=9><BR><HR NOSHADE></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<P ALIGN="CENTER"><FONT SIZE=2>C&#150;3</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=3,SEQ=34,EFW="2062020",CP="DAL-TILE INTERNATIONAL INC.",DN="3",CHK=302371,FOLIO='C-3',FILE='DISK022:[01DFW3.01DFW2063]KP2063A.;9',USER='JBAKER',CD='29-OCT-2001;15:14' -->
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<P ALIGN="RIGHT"><FONT SIZE=2><A
NAME="page_kq2063_1_1"> </A> </FONT></P>

<!-- TOC_END -->
<P ALIGN="RIGHT"><FONT SIZE=2><A
NAME="kq2063_exhibit_d"> </A>
<A NAME="toc_kq2063_1"> </A>
<BR></FONT><FONT SIZE=2><B>EXHIBIT D    <BR>  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kq2063_form_of_purchaser_loan_note"> </A>
<A NAME="toc_kq2063_2"> </A>
<BR></FONT><FONT SIZE=2><B>FORM OF PURCHASER LOAN NOTE    <BR>  </B></FONT></P>

<P ALIGN="RIGHT"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;New
York, New York<BR>
October&nbsp;26, 2001 </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;FOR
VALUE RECEIVED, DAL-TILE CORPORATION, a Pennsylvania corporation (the "</FONT><FONT SIZE=2><I>Company</I></FONT><FONT SIZE=2>"), hereby promises to pay to
DTSC,&nbsp;INC. (the "</FONT><FONT SIZE=2><I>Lender</I></FONT><FONT SIZE=2>"), no later than twelve (12)&nbsp;months from the date hereof or on demand if sooner made, the aggregate unpaid
principal amount of the Purchaser Loans made by the Lender to the Company under the Purchase and Contribution Agreement referred to below, and to pay on each Settlement Date interest on the unpaid
principal amount of the Purchaser Loans at a rate per annum equal at all times to 1.625% per annum above the Eurodollar Rate (as defined in the Sale Agreement) for periods of one month, in each case
in lawful money of the United States of America and in immediately available funds. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The
date and amount of each Purchaser Loan made by the Lender to the Company from the date hereof until the repayment of all sums due hereunder, and each payment made on account of
the principal thereof, shall be recorded by the Lender on its books and, prior to any transfer of this Note, endorsed by the Lender on the schedule attached hereto or any continuation thereof. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;This
Note is the Purchaser Loan Note referred to in the Purchase and Contribution Agreement (as amended, restated or otherwise modified from time to time, the
"</FONT><FONT SIZE=2><I>Purchase and Contribution Agreement</I></FONT><FONT SIZE=2>") dated as of October&nbsp;26, 2001 between the Company and the Lender, as the Seller and the Purchaser,
respectively, and evidences Purchaser Loans made by the Lender thereunder. Capitalized terms used in this Note and not defined herein have the respective meanings assigned to them in the Purchase and
Contribution Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The
principal amount of this Note may, at the option of the Company, be prepaid in whole at any time or in part from time to time. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding
any other provisions contained in this Note, in no event shall the rate of interest payable by the Company under this Note exceed the highest rate of interest
permissible under applicable law. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The
Company hereby waives diligence, presentment, demand, protest and notice of any kind whatsoever with respect to this Note. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;In
the event the Lender shall refer this Note to an attorney for collection, the Company agrees to pay, in addition to unpaid principal and interest, all the costs and expenses
incurred in attempting or effecting collection hereunder, including reasonable attorney's fees, whether or not suit is instituted. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>THIS NOTE SHALL, IN ACCORDANCE WITH SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK, BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO ANY CONFLICT OF LAWS PRINCIPLES THEREOF THAT WOULD CALL FOR THE APPLICATION OF THE LAWS OF ANY OTHER
JURISDICTION.</B></FONT></P>

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<TABLE WIDTH="76%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="39%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><BR>
DAL-TILE CORPORATION</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="39%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="50%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="39%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="50%"><HR NOSHADE><FONT SIZE=2> Name:<BR>
Title:</FONT></TD>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=2>D&#150;1</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=1,SEQ=35,EFW="2062020",CP="DAL-TILE INTERNATIONAL INC.",DN="3",CHK=940255,FOLIO='D-1',FILE='DISK022:[01DFW3.01DFW2063]KQ2063A.;8',USER='JBAKER',CD='29-OCT-2001;15:14' -->
<A NAME="page_kq2063_1_2"> </A>
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kq2063_schedule_to_purchaser_loan_note"> </A>
<A NAME="toc_kq2063_3"> </A>
<BR></FONT><FONT SIZE=2><B>SCHEDULE TO PURCHASER LOAN NOTE    <BR>  </B></FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2>D&#150;2</FONT></P>

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<A NAME="toc_kr2063_1"> </A>
<BR></FONT><FONT SIZE=2><B>EXHIBIT E<BR>  <BR>    STORE ACCOUNTS    <BR>  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>E&#150;1</FONT></P>

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<BR></FONT><FONT SIZE=2><B>EXHIBIT F<BR>  <BR>    TRADENAMES AND DOING-BUSINESS-AS NAMES    <BR>  </B></FONT></P>

<P><FONT SIZE=2>daltile<BR>
Dal-Tile<BR>
Dal Tile<BR>
American Olean<BR>
Dal-Tile International<BR>
Dal-Tile Manufacturing,Inc. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>F&#150;1</FONT></P>

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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>5
<FILENAME>a2062020zex-10_3.htm
<DESCRIPTION>EXHIBIT 10.3
<TEXT>
<HTML>
<HEAD>
<TITLE> Prepared by MERRILL CORPORATION
</TITLE>
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<BODY BGCOLOR="#FFFFFF" LINK=BLUE  VLINK=PURPLE>
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<P><FONT SIZE=3 >
Use these links to rapidly review the document<BR>
<A HREF="#kt2063_exhibit_10.3">  EXHIBIT 10.3</A><BR></font>
</P>
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<P ALIGN="RIGHT"><FONT SIZE=2><A
NAME="kt2063_exhibit_10.3"> </A>
<BR></FONT><FONT SIZE=2><B>EXHIBIT 10.3    <BR>  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kt2063_parent_undertaking_agreement"> </A></FONT> <FONT SIZE=2><B>PARENT UNDERTAKING AGREEMENT    <BR>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;PARENT UNDERTAKING AGREEMENT, dated as of October&nbsp;26, 2001, made by Dal-Tile International&nbsp;Inc., a corporation organized and existing
under the laws of Delaware ("</FONT><FONT SIZE=2><I>Dal-Tile International</I></FONT><FONT SIZE=2>"), and Dal-Tile Group&nbsp;Inc., a corporation organized and existing
under the laws of Delaware ("</FONT><FONT SIZE=2><I>Dal-Tile Group</I></FONT><FONT SIZE=2>" and, together with Dal-Tile International, the
"</FONT><FONT SIZE=2><I>Companies</I></FONT><FONT SIZE=2>"), in favor of DTSC,&nbsp;Inc., a corporation organized and existing under the laws of Delaware (the
"</FONT><FONT SIZE=2><I>Purchaser</I></FONT><FONT SIZE=2>"), the Investors and the Banks (as each such term is defined in the Sale Agreement referred to below) and Credit Lyonnais New York Branch, as
agent (the "</FONT><FONT SIZE=2><I>Agent</I></FONT><FONT SIZE=2>") for the Investors and the Banks, and their respective successors and assigns (collectively, the
"</FONT><FONT SIZE=2><I>Beneficiaries</I></FONT><FONT SIZE=2>"). </FONT></P>

<UL>

<P><FONT SIZE=2><B> PRELIMINARY STATEMENTS:  </B></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;Dal-Tile
Corporation, a corporation organized and existing under the laws of Pennsylvania (the
"</FONT><FONT SIZE=2><I>Originator</I></FONT><FONT SIZE=2>") has entered into a Purchase and Contribution Agreement dated as of October&nbsp;26, 2001 with the Purchaser (said Agreement, as it may
hereafter be amended or otherwise modified from time to time, being the "</FONT><FONT SIZE=2><I>Originator Agreement,</I></FONT><FONT SIZE=2>" the terms defined therein and not otherwise defined
herein being used herein as defined therein or in the Sale Agreement (as defined below)), pursuant to which the Originator may transfer Receivables and other financial assets to the Purchaser, either
by sale or by contribution to the capital of the Purchaser. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;The
Originator, the Purchaser, Atlantic Asset Securitization Corp., as an Investor, Credit Lyonnais New York Branch, as a Bank, and the Agent have entered into a
Receivables Purchase Agreement dated as of October&nbsp;26, 2001 (said Agreement, as it may hereafter be amended or otherwise modified from time to time, being the "</FONT><FONT SIZE=2><I>Sale
Agreement</I></FONT><FONT SIZE=2>"), pursuant to which the Purchaser may sell Receivables and other financial assets (or interests therein) to the Investors and/or the Banks. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;Dal-Tile
Group, as the owner of all of the outstanding shares of stock of the Originator, and Dal-Tile International, as the owner of all of
the outstanding shares of stock of Dal-Tile Group, will derive substantial benefit from the transactions contemplated under the Originator Agreement and the Sale Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;It
is a condition precedent to the acquisition of Receivables by the Purchaser under the Originator Agreement and to the acquisition of Receivables (or interests
therein) by the Investors and/or the Banks under the Sale Agreement that the Companies shall have executed and delivered this Agreement. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;NOW,
THEREFORE, in consideration of the premises and in order to induce the Purchaser to purchase Receivables under the Originator Agreement and the Investors and the Banks to make
purchases under the Sale Agreement, the Companies hereby agree as follows: </FONT></P>

<P><FONT SIZE=2><A
NAME="kt2063_section_2._unconditional_undertaking."> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Unconditional Undertaking. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The Companies hereby jointly and severally, unconditionally and irrevocably undertake and agree with and for
the benefit of the Beneficiaries to cause the due
and punctual performance and observance by the Originator and its successors and assigns of all of the terms, covenants, conditions, agreements and undertakings on the part of the Originator (whether
as Originator, Collection Agent or otherwise) to be performed or observed under the Originator Agreement, the Sale Agreement, each other Transaction Document (as defined under the Sale Agreement) and
any document delivered in connection with any of the foregoing in accordance with the terms thereof (each of the foregoing, collectively, the "</FONT><FONT SIZE=2><I>Applicable
Documents</I></FONT><FONT SIZE=2>"), including, without limitation, the punctual payment when due of all obligations of the Originator now or hereafter existing under the Applicable Documents, whether
for indemnification payments, fees, expenses or otherwise (such terms, covenants, conditions, agreements, undertakings and other obligations being the
"</FONT><FONT SIZE=2><I>Obligations</I></FONT><FONT SIZE=2>"), and agrees to pay any and all expenses (including counsel fees and expenses) incurred by the Beneficiaries in enforcing any rights under
this Agreement; </FONT><FONT SIZE=2><I>provided, that</I></FONT><FONT SIZE=2>, in no event, shall the undertaking contained herein constitute a guaranty of the ability to collect on, or </FONT></P>

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<A NAME="page_kt2063_1_2"> </A>

<P><FONT SIZE=2>
payment of, the Transferred Receivables. In the event that the Originator shall fail in any manner whatsoever to perform or observe any of the Obligations when the same shall be required to be
performed or observed under any Applicable Document, then the Companies will themselves duly and punctually perform or observe, or cause to be duly and punctually performed or observed, such
Obligation, and it shall not be a condition to the accrual of the obligation of the Companies hereunder to perform or observe any Obligation (or to cause the same to be performed or observed) that any
Beneficiary shall have first made any request of or demand upon or given any notice to either Company or to the Originator or their respective successors or assigns, or have instituted any action or
proceeding against any Company or the Originator or their respective successors or assigns in respect thereof. </FONT></P>

<P><FONT SIZE=2><A
NAME="kt2063_section_3._obligation_absolute."> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Obligation Absolute. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Each Company undertakes that the Obligations will be performed or paid strictly in accordance with the terms of the
Applicable Documents, regardless of any
law, regulation or order now or hereafter in effect in any jurisdiction affecting any of such terms or the rights of the Beneficiaries with respect thereto. The obligations of the Companies under this
Agreement are independent of the Obligations, and a separate action or actions may be brought and prosecuted against either or both of the Companies to enforce this Agreement, irrespective of whether
any action is brought against the Originator or whether the Originator is joined in any such action or actions. The liability of the Companies under this Agreement shall be absolute and unconditional
irrespective of: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;any
lack of validity or enforceability of any Applicable Document; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;any
change in the time, manner or place of payment of, or in any other term of, all or any of the Obligations, or any other amendment or waiver of or any consent to
departure from any Applicable Document, including, without limitation, any increase in the Obligations resulting from additional purchases of Receivables (or interests therein) or otherwise; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;any
taking, exchange, release or non-perfection of any collateral, or any taking, release or amendment or waiver of or consent to departure from any
guaranty, for all or any of the Obligations; </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;any
manner of application of collateral, or proceeds thereof, to all or any of the Obligations, or any manner of sale or other disposition of any collateral for all
or any of the Obligations or any other assets of the Originator or any of its subsidiaries; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;any
change, restructuring or termination of the corporate structure or existence of the Originator or any of its subsidiaries; or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;any
other circumstance (other than satisfaction in full or termination of the Obligations in accordance with the terms of the Applicable Documents) that might
otherwise constitute a defense available to, or a discharge of, the Originator or a guarantor. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;This
Agreement shall continue to be effective or be reinstated, as the case may be, if at any time any payment of any of the Obligations is rescinded or must otherwise be returned by
any Beneficiaries upon the insolvency, bankruptcy or reorganization of the Originator or otherwise, all as though payment had not been made. </FONT></P>

<P><FONT SIZE=2><A
NAME="kt2063_section_4._waiver."> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Waiver. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The Companies hereby waive promptness, diligence, notice of acceptance and any other notice with respect to any of the Obligations
and this Agreement and any
requirement that any Beneficiary protect, secure, perfect or insure any security interest or lien or any property subject thereto or exhaust any right or take any action against the Originator or any
other person or entity or any collateral. </FONT></P>

<P><FONT SIZE=2><A
NAME="kt2063_section_5._subrogation."> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 5.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Subrogation. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The Companies hereby defer and subordinate all rights of subrogation against the Originator and its property and all rights
of indemnification, contribution
and </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

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<A NAME="page_kt2063_1_3"> </A>

<P><FONT SIZE=2>
reimbursement from the Originator and its property, in each case in connection with this Agreement and any payments made hereunder, and regardless of whether such rights arise by operation of law,
pursuant to contract or otherwise until satisfaction in full of the Obligations. </FONT></P>

<P><FONT SIZE=2><A
NAME="kt2063_section_6._representations_and_warranties."> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Representations and Warranties. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Each Company hereby represents and warrants as to itself as follows: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Such
Company is a corporation duly incorporated, validly existing and in good standing under the laws of the jurisdiction indicated at the beginning of this
Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The
execution, delivery and performance by such Company of this Agreement are within such Company's corporate powers, have been duly authorized by all necessary
corporate action, and do not contravene (i)&nbsp;such Company's organizational documents or (ii)&nbsp;law or any contractual restriction binding on or affecting such Company. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;No
authorization or approval or other action by, and no notice to or filing with, any governmental authority or regulatory body is required for the due execution,
delivery and performance by such Company of this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;This
Agreement is the legal, valid and binding obligation of such Company enforceable against such Company in accordance with its terms, except that such
enforceability may be subject to bankruptcy, insolvency, reorganization, moratorium (whether general or specific) and other similar laws now or hereafter in effect affecting creditors rights
generally. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;The
consolidated balance sheet of Dal-Tile International and its consolidated subsidiaries as at December&nbsp;29, 2000, and the related consolidated
statement of income and retained earnings of Dal-Tile International and its consolidated subsidiaries for the fiscal year then ended, copies of which have been furnished to the
Beneficiaries, fairly present, in all material respects, the financial condition of Dal-Tile International and its consolidated subsidiaries as at such date and the results of the
operations of Dal-Tile International and its consolidated subsidiaries for the period ended on such date, all in accordance with generally accepted accounting principles consistently
applied, and since December&nbsp;29, 2000 there has been no material adverse change in the business, financial condition or operations of Dal-Tile International and its consolidated
subsidiaries taken as a whole that could reasonably be expected to adversely affect the value or collectibility of the Receivables or the ability of the Purchaser or the Originator to collect the
Receivables or otherwise perform its obligations under the Applicable Documents. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;There
is no pending or threatened action or proceeding affecting any Company or any of its subsidiaries before any court, governmental agency or arbitrator, which
may reasonably be expected to materially adversely affect (i)&nbsp;the financial condition or operations of such Company or any of its subsidiaries or (ii)&nbsp;the ability of such Company to
perform its obligations under this Agreement, or which purports to affect the legality, validity or enforceability of this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;Each
information, financial statement, document, book, record and report furnished or to be furnished at any time by any Company to any Beneficiary in connection
with this Agreement is or will be accurate in all material respects as of its date and (except as otherwise disclosed to such Beneficiary at such time) as of the date so furnished, and no such
information, financial statement, document, book, record or report contains or will contain any untrue statement of a material fact or omits or will omit to state a material fact necessary in order to
make the statements contained therein, in the light of the circumstances under which they were made, not misleading. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;There
are no conditions precedent to the effectiveness of this Agreement that have not been satisfied or waived. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;As
of the date hereof and prior to the date, if any, of the merger contemplated in Section&nbsp;6(c) below, Dal-Tile International is the owner of
all of the outstanding shares of stock of </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>

<HR NOSHADE>
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<A NAME="page_kt2063_1_4"> </A>
<UL>

<P><FONT SIZE=2>
Dal-Tile Group and Dal-Tile Group is the owner of all of the outstanding shares of stock of the Originator. </FONT></P>

<A NAME="kt2063_covenants_1ank"> </A>
<A NAME="covenants"> </A>
</UL>

<P><FONT SIZE=2><A
NAME="kt2063_section_7._covenants."> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 7.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Covenants. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Each Company covenants and agrees that, until the later of the Facility Termination Date and the date on which all Receivables
shall have either been collected
in full or become Defaulted Receivables, such Company will, unless each Beneficiary shall otherwise consent in writing: </FONT></P>

<A NAME="kt2063_compliance_with_laws_2ank"> </A>
<A NAME="compliance_with_laws_etc."> </A>
<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;Compliance with Laws, Etc.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;Comply in all material respects with all applicable laws, rules,
regulations and orders with respect to it, its business and properties. </FONT></P>

<A NAME="kt2063_preservation_of_corp_3ank"> </A>
<A NAME="preservation_of_corporate_existence"> </A>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;Preservation of Corporate Existence.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;Except upon consummation, if at all, of the merger
contemplated in Section&nbsp;6(c) below, preserve and maintain its corporate existence, rights, franchises and privileges in the jurisdiction of its incorporation, and qualify and remain qualified
in good standing as a foreign corporation in each relevant jurisdiction, except to the extent that the failure so to preserve and maintain such existence, rights, franchises, privileges and
qualification would not materially adversely affect the interests of the Beneficiaries hereunder, or the ability of such Company to perform its obligations hereunder. </FONT></P>

<A NAME="kt2063_stock_ownership_4ank"> </A>
<A NAME="stock_ownership"> </A>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;Stock Ownership.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;In the case of Dal-Tile International, be the registered and
beneficial owner of all of the issued and outstanding shares of each class of the capital stock of Dal-Tile Group and, in the case of Dal-Tile Group, be the registered and
beneficial owner of all of the issued and outstanding shares of each class of the capital stock of the Originator, provided that Dal-Tile Group may merge with and into Dal-Tile
International, with Dal-Tile International being the surviving corporation, so long as Dal-Tile International is the registered and beneficial owner of all of the issued and
outstanding shares of each class of the capital stock of the Originator. </FONT></P>

<A NAME="kt2063_notice_regarding_cre_5ank"> </A>
<A NAME="notice_regarding_credit_agreement"> </A>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;Notice Regarding Credit Agreement.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;At least three Business Days prior to the effectiveness of any
amendment or waiver of any provision under the Credit Agreement, and as soon as possible and in any event within three Business Days after the occurrence of any "Event of Default" under the Credit
Agreement, deliver a copy of such amendment or waiver and a written notice of such occurrence to the Agent. </FONT></P>

</UL>

<P><FONT SIZE=2><A
NAME="kt2063_section_8._additional_c__kt202077"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Additional Covenants Dal-Tile International. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Dal-Tile International covenants and agrees that, until the later of the Facility Termination
Date and the date on which all Receivables shall have
either been collected in full or become Defaulted Receivables, Dal-Tile International will, unless each Beneficiary shall otherwise consent in writing: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;Maintenance of Net Worth.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;Not permit the Consolidated Net Worth of Dal-Tile
International, at the end of any fiscal quarter of Dal-Tile International, to be less than an amount equal to the sum of (i)&nbsp;$262,977,000 and (ii)&nbsp;50% of aggregate
Consolidated Net Income of Dal-Tile International for each fiscal quarter ending after June&nbsp;29, 2001 for which the Consolidated Net Income of Dal-Tile International is
positive. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;Maintenance of Consolidated Interest Coverage Ratio.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;Not permit, for any period of four consecutive
fiscal quarters of Dal-Tile International ending on the last day of any fiscal quarter of Dal-Tile International, the Consolidated Interest Coverage Ratio of
Dal-Tile International for such period to be less than 2.50 to 1.00. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;Maintenance of Consolidated Leverage Ratio.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;Not permit, for any period of four consecutive fiscal
quarters ending on the last day of any fiscal quarter of Dal-Tile International, the Consolidated Leverage Ratio of Dal-Tile International for such period to be greater than
3.25 to 1.00. </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>4</FONT></P>

<HR NOSHADE>

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<A NAME="page_kt2063_1_5"> </A>
<UL>

<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;(d)</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Reporting Requirements.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;Furnish to the Purchaser and the Agent: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;as
soon as available and in any event within 45&nbsp;days after the end of the first three quarters of each fiscal year of Dal-Tile International, an
unaudited consolidated balance sheet of Dal-Tile International and its consolidated Subsidiaries as of the end of such quarter and consolidated statements of income and retained earnings
of Dal-Tile International and its consolidated Subsidiaries for the period commencing at the end of the previous fiscal year of Dal-Tile International and ending with the end
of such quarter, certified by the chief financial officer or treasurer of Dal-Tile International; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;as
soon as available and in any event within 90&nbsp;days after the end of each fiscal year of Dal-Tile International, a copy of the annual report
for such fiscal year of Dal-Tile International and its consolidated Subsidiaries, containing consolidated financial statements for such year audited by Ernst&nbsp;&amp; Young or other
independent public accountants acceptable to the Agent; and </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;promptly
after the sending or filing thereof, copies of all reports that Dal-Tile International sends to any of its security holders generally, and
copies of all Form&nbsp;10-K, Form&nbsp;10-Q and Form&nbsp;8-K reports and all
other reports and registration statements that Dal-Tile International or any Subsidiary thereof files with the Securities and Exchange Commission or any national securities exchange. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(e)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;Definitions.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;As used in this Section&nbsp;7, the following terms shall have the following
meanings: </FONT></P>

<UL>
<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Consolidated Interest Coverage Ratio</I></FONT><FONT SIZE=2>" and any defined terms included in, or otherwise affecting, the definition of Consolidated
Interest Coverage Ratio in the Credit Agreement shall each have the meanings set forth in the definitions of such terms in the Credit Agreement as in effect on the date hereof and giving effect solely
to any subsequent amendments or waivers thereto which were granted at a time when the Agent was a party to the Credit Agreement (but only to the extent that a written statement (which such statement
shall be requested by the Agent to the extent the Agent deems such statement to be required under the terms of any agreement governing the activities of any Investor) has been obtained from each
Relevant Rating Agency that the rating of the commercial paper of each Investor that is rated by such Relevant Rating Agency will not be downgraded or withdrawn solely as a result of such amendment or
waiver) or which are specifically approved in writing by the Agent at a time when the Agent is not a party to the Credit Agreement. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Consolidated Leverage Ratio</I></FONT><FONT SIZE=2>" and any defined terms included in, or otherwise affecting, the definition of Consolidated Leverage Ratio
in the Credit Agreement shall each have the meanings set forth in the definitions of such terms in the Credit Agreement as in effect on the date hereof and giving effect solely to any subsequent
amendments or waivers thereto which were granted at a time when the Agent was a party to the Credit Agreement (but only to the extent that a written statement (which such statement shall be requested
by the Agent to the extent the Agent deems such statement to be required under the terms of any agreement governing the activities of any Investor) has been obtained from each Relevant Rating Agency
that the rating of the commercial paper of each Investor that is rated by such Relevant Rating Agency will not be downgraded or withdrawn solely as a result of such amendment or waiver) or which are
specifically approved in writing by the Agent at a time when the Agent is not a party to the Credit Agreement. </FONT></P>

</UL>
</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>5</FONT></P>

<HR NOSHADE>
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<A NAME="page_kt2063_1_6"> </A>
<UL>
<UL>
<UL>

<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT SIZE=2><I>Consolidated Net Income</I></FONT><FONT SIZE=2>" and any defined terms included in, or otherwise affecting, the definition of Consolidated Net Income in the
Credit Agreement shall each have the meanings set forth in the definitions of such terms in the Credit Agreement as in effect on the date hereof and giving effect solely to any subsequent amendments
or waivers thereto which were granted at a time when the Agent was a party to the Credit Agreement (but only to the extent that a written statement (which such statement shall be requested by the
Agent to the extent the Agent deems such statement to be required under the terms of any agreement governing the activities of any Investor) has been obtained from each Relevant Rating Agency that the
rating of the commercial paper of each Investor that is rated by such Relevant Rating Agency will not be downgraded or withdrawn solely as a result of such amendment or waiver) or which are
specifically approved in writing by the Agent at a time when the Agent is not a party to the Credit Agreement. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Consolidated Net Worth</I></FONT><FONT SIZE=2>" and any defined terms included in, or otherwise affecting, the definition of Consolidated Net Worth in the
Credit Agreement shall each have the meanings set forth in the definitions of such terms in the Credit Agreement as in effect on the date hereof and giving effect solely to any subsequent amendments
or waivers thereto which were granted at a time when the Agent was a party to the Credit Agreement (but only to the extent that a written statement (which such statement shall be requested by the
Agent to the extent the Agent deems such statement to be required under the terms of any agreement governing the activities of any Investor) has been obtained from each Relevant Rating Agency that the
rating of the commercial paper of each Investor that is rated by such Relevant Rating Agency will not be downgraded or withdrawn solely as a result of such amendment or waiver) or which are
specifically approved in writing by the Agent at a time when the Agent is not a party to the Credit Agreement. </FONT></P>

</UL>
</UL>
</UL>

<P><FONT SIZE=2><A
NAME="kt2063_section_9._amendments,_etc."> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 9.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Amendments, Etc. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;No amendment or waiver of any provision of this Agreement or consent to any departure by any Company herefrom shall be
effective unless in a writing signed by
each Beneficiary (and, in the case of any amendment, also signed by the Companies), and then such amendment, waiver or consent shall be effective only in the specific instance and for the specific
purpose for which given. </FONT></P>

<P><FONT SIZE=2><A
NAME="kt2063_section_10._addresses_for_notices."> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;SECTION 10.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Addresses for Notices. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;All notices and other communications hereunder shall be in writing (which shall include facsimile communication)
and faxed or delivered, if to any Beneficiary,
at its address set forth under its name on the signature pages of the Sale Agreement and if to a Company, at its address set forth under its name on the signature pages hereof or, as to any party, at
such other address as shall be designated by such party in a written notice to each other party. Notices and communications by facsimile shall be effective when sent, and notices and communications
sent by other means shall be effective when received. </FONT></P>

<P><FONT SIZE=2><A
NAME="kt2063_section_11._no_waiver;_remedies."> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;SECTION 11.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;No Waiver; Remedies. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;No failure on the part of any Beneficiary to exercise, and no delay in exercising, any right hereunder shall operate
as a waiver thereof; nor shall any single
or partial exercise of any right hereunder preclude any other or further exercise thereof or the exercise of any other right. The remedies herein provided are cumulative and not exclusive of any
remedies provided by law. </FONT></P>

<P><FONT SIZE=2><A
NAME="kt2063_section_12._continuing_agreeme__sec02741"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;SECTION 12.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Continuing Agreement; Assignments under Originator Agreement. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;This Agreement is a continuing agreement and shall (i)&nbsp;remain in full
force and effect until the later of (x)&nbsp;the payment and performance in full
of the Obligations and the payment of all other amounts payable under this Agreement and (y)&nbsp;the Facility Termination Date (as defined under the Sale Agreement), (ii)&nbsp;be binding upon
each Company, its successors and assigns, and (iii)&nbsp;inure to the benefit of, and be </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>6</FONT></P>

<HR NOSHADE>
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<A NAME="page_kt2063_1_7"> </A>

<P><FONT SIZE=2>
enforceable by, each Beneficiary and its successors, transferees and assigns. Each Beneficiary (and any assignee thereof) may at any time assign any and all of its rights hereunder to any other person
or entity without the consent of the Companies or the Originator, whereupon (i)&nbsp;each reference herein to such Beneficiary shall mean and be a reference to such assignee and (ii)&nbsp;such
assignee may enforce this Agreement to the fullest extent as if it were a named party hereto. Without limiting the generality of the foregoing, each Company acknowledges and consents to the assignment
by the Purchaser, under and in connection with the Sale Agreement, of all of the Purchaser's right, title and interest in, to and under this Agreement to the Agent for the benefit of the Investors and
the Banks and each Company agrees that at all times that the Sale Agreement shall be in effect (i)&nbsp;any claim made by the Purchaser hereunder shall be deemed made for the benefit of the Agent
and the Investors and the Banks and (ii)&nbsp;any payment or remittance to be made hereunder by any Company in respect of any claim being made by or in respect of the Purchaser or the Purchaser's
interest under the Originator Agreement shall be paid or remitted to the Agent for the benefit of the Investors and the Banks. </FONT></P>

<P><FONT SIZE=2><A
NAME="kt2063_section_13._governing_law."> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;SECTION 13.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Governing Law. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;This Agreement shall, in accordance with Section&nbsp;5-1401 of the General Obligations Law of the State of New York, be
governed by, and
construed in accordance with, the law of the State of New York without regard to any conflict of laws principles thereof that would call for the application of the laws of any other jurisdiction. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>7</FONT></P>

<HR NOSHADE>
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<A NAME="page_kt2063_1_8"> </A>

<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, each Company has caused this Agreement to be duly executed and delivered by its officer thereunto duly authorized as of the date first above written. </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="42%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>DAL-TILE INTERNATIONAL&nbsp;INC.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="42%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="48%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="42%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="48%"><HR NOSHADE><FONT SIZE=2> Title:</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="42%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><BR>
7834 C.F. Hawn Freeway<BR>
P.O.&nbsp;Box 170130<BR>
Dallas, Texas 75217<BR>
Attention: Scott Veldman<BR>
Facsimile Number: (214)&nbsp;309-4390</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="42%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><BR>
DAL-TILE GROUP&nbsp;INC.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="42%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="48%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="42%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="48%"><HR NOSHADE><FONT SIZE=2> Title:</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="42%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><BR>
7834 C.F. Hawn Freeway<BR>
P.O.&nbsp;Box 170130<BR>
Dallas, Texas 75217<BR>
Attention: Scott Veldman<BR>
Facsimile Number: (214)&nbsp;309-4390<BR></FONT>
</TD>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=2>8</FONT></P>

<HR NOSHADE>
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<A NAME="page_kt2063_1_9"> </A>
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kt2063_assignment_of_parent_undertaking_agreement"> </A>
<BR></FONT><FONT SIZE=2><B>ASSIGNMENT OF PARENT UNDERTAKING AGREEMENT    <BR>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The undersigned hereby assigns all of its right, title and interest in and to the foregoing Parent Undertaking Agreement to Credit Lyonnais New York Branch, in
its capacity as agent (the "</FONT><FONT SIZE=2><I>Agent</I></FONT><FONT SIZE=2>") for the Investors and the Banks under and as defined in the Receivables Purchase Agreement dated as of October 26,
2001 by and among DTSC, Inc. (the "</FONT><FONT SIZE=2><I>Purchaser</I></FONT><FONT SIZE=2>"), the Agent and certain other parties, as the same may be amended, restated, supplemented or otherwise
modified from time to time. Dal-Tile International Inc. and Dal-Tile Group Inc. (the "</FONT><FONT SIZE=2><I>Companies</I></FONT><FONT SIZE=2>") acknowledge such assignment and agree that the Agent
may further assign, without notice, its right, title and interest in and to the Parent Undertaking Agreement without the consent of any person or entity. The Agent, as the assignee of the Purchaser,
shall have the right to enforce the Parent Undertaking Agreement, and to directly exercise all of the Purchaser's rights and remedies under the Parent Undertaking Agreement, and the Companies agree to
cooperate fully with the Agent in the exercise of such rights and remedies thereunder. </FONT></P>

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<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="42%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>DTSC, INC.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="42%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="48%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="42%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="48%"><HR NOSHADE><FONT SIZE=2> Name:<BR>
Title:<BR></FONT>
</TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->
<P><FONT SIZE=2>Acknowledged and agreed to<BR>
this 26th day of October, 2001 </FONT></P>

<P><FONT SIZE=2>DAL-TILE
INTERNATIONAL INC. </FONT></P>

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<TABLE WIDTH="78%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="5%"><FONT SIZE=2>By:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="42%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="48%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="5%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="42%"><HR NOSHADE><FONT SIZE=2> Name:<BR>
Title:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="48%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3><FONT SIZE=2><BR>
DAL-TILE GROUP INC.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="48%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="5%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="42%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="48%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="5%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="42%"><HR NOSHADE><FONT SIZE=2> Name:<BR>
Title:<BR></FONT>
</TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="48%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=2>9</FONT></P>

<HR NOSHADE>
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<A NAME="page_kt2063_1_10"> </A>
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kt2063_table_of_contents"> </A>
<BR></FONT><FONT SIZE=2><B>TABLE OF CONTENTS    <BR>  </B></FONT></P>

<P><FONT SIZE=2>
<A NAME="KT2063_TOC"></A> </FONT></P>

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<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>SECTION 1.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><A HREF="#kt2063_section_2._unconditional_undertaking."><FONT SIZE=2>Unconditional Undertaking</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2><BR>
SECTION 2.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><A HREF="#kt2063_section_3._obligation_absolute."><FONT SIZE=2><BR>
Obligation Absolute</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2><BR>
SECTION 3.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><A HREF="#kt2063_section_4._waiver."><FONT SIZE=2><BR>
Waiver</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2><BR>
SECTION 4.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><A HREF="#kt2063_section_5._subrogation."><FONT SIZE=2><BR>
Subrogation</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2><BR>
SECTION 5.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><A HREF="#kt2063_section_6._representations_and_warranties."><FONT SIZE=2><BR>
Representations and Warranties</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2><BR>
SECTION 6.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><A HREF="#kt2063_covenants_1ank"><FONT SIZE=2><BR>
Covenants</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(a)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="75%"><A HREF="#kt2063_compliance_with_laws_2ank"><FONT SIZE=2>Compliance with Laws, Etc.</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(b)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="75%"><A HREF="#kt2063_preservation_of_corp_3ank"><FONT SIZE=2>Preservation of Corporate Existence</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(c)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="75%"><A HREF="#kt2063_stock_ownership_4ank"><FONT SIZE=2>Stock Ownership</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(d)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="75%"><A HREF="#kt2063_notice_regarding_cre_5ank"><FONT SIZE=2>Notice Regarding Credit Agreement</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2><BR>
SECTION 7.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><A HREF="#kt2063_section_8._additional_c__kt202077"><FONT SIZE=2><BR>
Additional Covenants Dal-Tile International</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(a)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="75%"><A HREF="#page_kt2063_1_4"><FONT SIZE=2>Maintenance of Net Worth</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(b)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="75%"><A HREF="#page_kt2063_1_4"><FONT SIZE=2>Maintenance of Consolidated Interest Coverage Ratio</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(c)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="75%"><A HREF="#page_kt2063_1_4"><FONT SIZE=2>Maintenance of Consolidated Leverage Ratio</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(d)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="75%"><A HREF="a2062020zex-10_4.htm#li2063_3.18_certain_reporting_requirements."><FONT SIZE=2>Reporting Requirements</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(e)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="75%"><A HREF="#page_le2063_1_5"><FONT SIZE=2>Definitions</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2><BR>
SECTION 8.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><A HREF="a2062020zex-10_4.htm#lo2063_10.3_amendments,_etc."><FONT SIZE=2><BR>
Amendments, Etc.</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2><BR>
SECTION 9.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><A HREF="#page_le2063_1_6"><FONT SIZE=2><BR>
Addresses for Notices</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2><BR>
SECTION 10.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><A HREF="a2062020zex-10_4.htm#lq2063_13.3_no_waiver;_cumulative_remedies."><FONT SIZE=2><BR>
No Waiver; Remedies</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2><BR>
SECTION 11.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><A HREF="#page_le2063_1_6"><FONT SIZE=2><BR>
Continuing Agreement; Assignments under Originator Agreement</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%"><FONT SIZE=2><BR>
SECTION 12.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><A HREF="a2062020zex-10_4.htm#lq2063_13.11_governing_law."><FONT SIZE=2><BR>
Governing Law</FONT></A></TD>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=2>10</FONT></P>

<HR NOSHADE>
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<DOCUMENT>
<TYPE>EX-10.4
<SEQUENCE>6
<FILENAME>a2062020zex-10_4.htm
<DESCRIPTION>EXHIBIT 10.4
<TEXT>
<HTML>
<HEAD>
<TITLE> Prepared by MERRILL CORPORATION
</TITLE>
</HEAD>
<BODY BGCOLOR="#FFFFFF" LINK=BLUE  VLINK=PURPLE>
<BR>
<P><FONT SIZE=3 >
Use these links to rapidly review the document<BR>
<A HREF="#lc2063_conformed_copy">  CONFORMED COPY</A><BR></font>
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<P ALIGN="RIGHT"><FONT SIZE=2><A
NAME="lc2063_conformed_copy"> </A>
<BR></FONT><FONT SIZE=2>CONFORMED COPY    <BR></FONT></P>

<HR NOSHADE>
<BR>
<HR NOSHADE>
<P ALIGN="CENTER"><FONT SIZE=2>DAL-TILE INTERNATIONAL INC.,<BR>
as Holdings<BR>
DAL-TILE GROUP INC.,<BR>
as the Borrower </FONT></P>

<HR NOSHADE ALIGN="CENTER" WIDTH="120">
<P ALIGN="CENTER"><FONT SIZE=2>$325,000,000<BR>
AMENDED AND RESTATED CREDIT AND GUARANTEE AGREEMENT<BR>
October&nbsp;26, 2001 </FONT></P>

<HR NOSHADE ALIGN="CENTER" WIDTH="120">
<P ALIGN="CENTER"><FONT SIZE=2>CREDIT LYONNAIS NEW YORK BRANCH,<BR>
FIRST UNION NATIONAL BANK and<BR>
MIZUHO FINANCIAL GROUP<BR></FONT> <FONT SIZE=2>as Co-Documentation Agents<BR>
BANK OF AMERICA, N.A.<BR>
as Syndication Agent<BR>
THE CHASE MANHATTAN BANK<BR>
as Administrative Agent </FONT></P>

<HR NOSHADE>
<BR>
<HR NOSHADE>
<P ALIGN="CENTER"><FONT SIZE=2>J.P. MORGAN SECURITIES INC.,<BR>
as Sole Advisor, Lead Arranger and Bookrunner </FONT></P>

<HR NOSHADE>
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<A NAME="page_lc2063_1_1"> </A>
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="lc2063_table_of_contents"> </A>
<BR></FONT><FONT SIZE=2><B>TABLE OF CONTENTS    <BR>  </B></FONT></P>

<P><FONT SIZE=2>
<A NAME="LC2063_TOC"></A> </FONT></P>

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<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="16%" ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="9%"><FONT SIZE=2>&nbsp;</FONT></TH>
<TH WIDTH="75%" ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>SECTION 1</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.&nbsp;</FONT></TD>
<TD WIDTH="75%"><A HREF="#page_le2063_1_1"><FONT SIZE=2>DEFINITIONS</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>1</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.1</FONT></TD>
<TD WIDTH="75%"><A HREF="#page_le2063_1_1"><FONT SIZE=2>Defined Terms</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>1</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.2</FONT></TD>
<TD WIDTH="75%"><A HREF="#le2063_1.2_other_definitional___le202154"><FONT SIZE=2>Other Definitional Provisions; Financial Calculations</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>SECTION 2</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.&nbsp;</FONT></TD>
<TD WIDTH="75%"><A HREF="#lg2063_section_2._amount_and_terms_of_term_loan_commitments"><FONT SIZE=2>AMOUNT AND TERMS OF TERM LOAN COMMITMENTS</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>2</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.1</FONT></TD>
<TD WIDTH="75%"><A HREF="#lg2063_2.1_term_loans."><FONT SIZE=2>Term Loans</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>2</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.2</FONT></TD>
<TD WIDTH="75%"><A HREF="#lg2063_2.2_procedure_for_term_loan_borrowing."><FONT SIZE=2>Procedure for Term Loan Borrowing</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>2</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.3</FONT></TD>
<TD WIDTH="75%"><A HREF="#lg2063_2.3_repayment_of_term_loans."><FONT SIZE=2>Repayment of Term Loans</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>2</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.4</FONT></TD>
<TD WIDTH="75%"><A HREF="#lg2063_2.4_evidence_of_term_loan_debt."><FONT SIZE=2>Evidence of Term Loan Debt</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>SECTION 3</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.&nbsp;</FONT></TD>
<TD WIDTH="75%"><A HREF="#lg2063_section_3._amount_and_t__lg202391"><FONT SIZE=2>AMOUNT AND TERMS OF REVOLVING CREDIT COMMITMENTS</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>3</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.1</FONT></TD>
<TD WIDTH="75%"><A HREF="#lg2063_3.1_revolving_credit_commitments."><FONT SIZE=2>Revolving Credit Commitments</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>3</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.2</FONT></TD>
<TD WIDTH="75%"><A HREF="#lg2063_3.2_procedure_for_revolving_credit_borrowing."><FONT SIZE=2>Procedure for Revolving Credit Borrowing</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>3</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.3</FONT></TD>
<TD WIDTH="75%"><A HREF="#lg2063_3.3_commitment_fee."><FONT SIZE=2>Commitment Fee</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>3</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.4</FONT></TD>
<TD WIDTH="75%"><A HREF="#lg2063_3.4_termination_or_reduction_of_commitments."><FONT SIZE=2>Termination or Reduction of Commitments</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>3</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.5</FONT></TD>
<TD WIDTH="75%"><A HREF="#lg2063_3.5_repayment_of_revolv__lg202120"><FONT SIZE=2>Repayment of Revolving Credit Loans; Evidence of Debt</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>3</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.6</FONT></TD>
<TD WIDTH="75%"><A HREF="#lg2063_3.6_swing_line_commitment."><FONT SIZE=2>Swing Line Commitment</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>3</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.7</FONT></TD>
<TD WIDTH="75%"><A HREF="#lg2063_3.7_repayment_of_swing_line_loans;_evidence_of_debt."><FONT SIZE=2>Repayment of Swing Line Loans; Evidence of Debt</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>3</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.8</FONT></TD>
<TD WIDTH="75%"><A HREF="#lg2063_3.8_procedure_for_borrowing_swing_line_loans."><FONT SIZE=2>Procedure for Borrowing Swing Line Loans</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>3</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.9</FONT></TD>
<TD WIDTH="75%"><A HREF="#lg2063_3.9_swing_line_loan_participations."><FONT SIZE=2>Swing Line Loan Participations</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>3</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.10</FONT></TD>
<TD WIDTH="75%"><A HREF="#lg2063_3.10_l_/c_commitment."><FONT SIZE=2>L/C Commitment</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>3</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.11</FONT></TD>
<TD WIDTH="75%"><A HREF="#lg2063_3.11_procedure_for_issuance_of_letters_of_credit."><FONT SIZE=2>Procedure for Issuance of Letters of Credit</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>3</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.12</FONT></TD>
<TD WIDTH="75%"><A HREF="#lg2063_3.12_fees,_commissions_and_other_charges."><FONT SIZE=2>Fees, Commissions and Other Charges</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>3</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.13</FONT></TD>
<TD WIDTH="75%"><A HREF="#lg2063_3.13_l/c_participations."><FONT SIZE=2>L/C Participations</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>3</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.14</FONT></TD>
<TD WIDTH="75%"><A HREF="#lg2063_3.14_reimbursement_obligation_of_the_borrower."><FONT SIZE=2>Reimbursement Obligation of the Borrower</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>3</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.15</FONT></TD>
<TD WIDTH="75%"><A HREF="#lg2063_3.15_obligations_absolute."><FONT SIZE=2>Obligations Absolute</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>3</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.16</FONT></TD>
<TD WIDTH="75%"><A HREF="#lg2063_3.16_letter_of_credit_payments."><FONT SIZE=2>Letter of Credit Payments</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>3</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.17</FONT></TD>
<TD WIDTH="75%"><A HREF="#lg2063_3.17_application."><FONT SIZE=2>Application</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>3</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.18</FONT></TD>
<TD WIDTH="75%"><A HREF="#li2063_3.18_certain_reporting_requirements."><FONT SIZE=2>Certain Reporting Requirements</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>SECTION 4</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.&nbsp;</FONT></TD>
<TD WIDTH="75%"><A HREF="#li2063_section_4._general_provisions___sec02771"><FONT SIZE=2>GENERAL PROVISIONS APPLICABLE TO LOANS AND LETTERS OF CREDIT</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>4</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.1</FONT></TD>
<TD WIDTH="75%"><A HREF="#li2063_4.1_optional_and_mandatory_prepayments."><FONT SIZE=2>Optional and Mandatory Prepayments</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>4</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.2</FONT></TD>
<TD WIDTH="75%"><A HREF="#li2063_4.2_conversion_and_continuation_options."><FONT SIZE=2>Conversion and Continuation Options</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>4</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.3</FONT></TD>
<TD WIDTH="75%"><A HREF="#li2063_4.3_minimum_amounts_and_maximum_number_of_tranches."><FONT SIZE=2>Minimum Amounts and Maximum Number of Tranches</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>4</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.4</FONT></TD>
<TD WIDTH="75%"><A HREF="#li2063_4.4_interest_rates_and_payment_dates."><FONT SIZE=2>Interest Rates and Payment Dates</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>4</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.5</FONT></TD>
<TD WIDTH="75%"><A HREF="#li2063_4.5_computation_of_interest_and_fees."><FONT SIZE=2>Computation of Interest and Fees</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>4</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.6</FONT></TD>
<TD WIDTH="75%"><A HREF="#li2063_4.6_inability_to_determine_interest_rate."><FONT SIZE=2>Inability to Determine Interest Rate</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>4</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.7</FONT></TD>
<TD WIDTH="75%"><A HREF="#li2063_4.7_pro_rata_treatment_and_payments."><FONT SIZE=2>Pro Rata Treatment and Payments</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>4</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.8</FONT></TD>
<TD WIDTH="75%"><A HREF="#li2063_4.8_illegality."><FONT SIZE=2>Illegality</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>4</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.9</FONT></TD>
<TD WIDTH="75%"><A HREF="#li2063_4.9_requirements_of_law."><FONT SIZE=2>Requirements of Law</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>4</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.10</FONT></TD>
<TD WIDTH="75%"><A HREF="#li2063_4.10_taxes."><FONT SIZE=2>Taxes</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>4</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.11</FONT></TD>
<TD WIDTH="75%"><A HREF="#li2063_4.11_indemnity."><FONT SIZE=2>Indemnity</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>4</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.12</FONT></TD>
<TD WIDTH="75%"><A HREF="#li2063_4.12_change_of_lending_office;__4.102305"><FONT SIZE=2>Change of Lending Office; Filing of Certificates or Documents</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>4</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.13</FONT></TD>
<TD WIDTH="75%"><A HREF="#li2063_4.13_replacement_lenders."><FONT SIZE=2>Replacement Lenders</FONT></A></TD>
</TR>
</TABLE>
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<BR>
<P ALIGN="CENTER"><FONT SIZE=2>i</FONT></P>

<HR NOSHADE>
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<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>SECTION 5</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.&nbsp;</FONT></TD>
<TD WIDTH="75%"><A HREF="#li2063_section_5._representations_and_warranties"><FONT SIZE=2>REPRESENTATIONS AND WARRANTIES</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>5</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.1</FONT></TD>
<TD WIDTH="75%"><A HREF="#li2063_5.1_financial_condition."><FONT SIZE=2>Financial Condition</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>5</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.2</FONT></TD>
<TD WIDTH="75%"><A HREF="#lk2063_5.2_no_change."><FONT SIZE=2>No Change</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>5</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.3</FONT></TD>
<TD WIDTH="75%"><A HREF="#lk2063_5.3_corporate_existence;_compliance_with_law."><FONT SIZE=2>Corporate Existence; Compliance with Law</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>5</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.4</FONT></TD>
<TD WIDTH="75%"><A HREF="#lk2063_5.4_corporate_power;_au__lk202226"><FONT SIZE=2>Corporate Power; Authorization; Enforceable Obligations</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>5</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.5</FONT></TD>
<TD WIDTH="75%"><A HREF="#lk2063_5.5_no_legal_bar."><FONT SIZE=2>No Legal Bar</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>5</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.6</FONT></TD>
<TD WIDTH="75%"><A HREF="#lk2063_5.6_no_material_litigation."><FONT SIZE=2>No Material Litigation</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>5</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.7</FONT></TD>
<TD WIDTH="75%"><A HREF="#lk2063_5.7_no_default."><FONT SIZE=2>No Default</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>5</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.8</FONT></TD>
<TD WIDTH="75%"><A HREF="#lk2063_5.8_ownership_of_property;_liens."><FONT SIZE=2>Ownership of Property; Liens</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>5</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.9</FONT></TD>
<TD WIDTH="75%"><A HREF="#lk2063_5.9_intellectual_property."><FONT SIZE=2>Intellectual Property</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>5</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.10</FONT></TD>
<TD WIDTH="75%"><A HREF="#lk2063_5.10_no_burdensome_restrictions."><FONT SIZE=2>No Burdensome Restrictions</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>5</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.11</FONT></TD>
<TD WIDTH="75%"><A HREF="#lk2063_5.11_taxes."><FONT SIZE=2>Taxes</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>5</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.12</FONT></TD>
<TD WIDTH="75%"><A HREF="#lk2063_5.12_federal_regulations."><FONT SIZE=2>Federal Regulations</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>5</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.13</FONT></TD>
<TD WIDTH="75%"><A HREF="#lk2063_5.13_erisa."><FONT SIZE=2>ERISA</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>5</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.14</FONT></TD>
<TD WIDTH="75%"><A HREF="#lk2063_5.14_investment_company_act;_other_regulations."><FONT SIZE=2>Investment Company Act; Other Regulations</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>5</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.15</FONT></TD>
<TD WIDTH="75%"><A HREF="#lk2063_5.15_subsidiaries."><FONT SIZE=2>Subsidiaries</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>5</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.16</FONT></TD>
<TD WIDTH="75%"><A HREF="#lk2063_5.16_purpose_of_loans."><FONT SIZE=2>Purpose of Loans</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>5</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.17</FONT></TD>
<TD WIDTH="75%"><A HREF="#lk2063_5.17_environmental_matters."><FONT SIZE=2>Environmental Matters</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>5</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.18</FONT></TD>
<TD WIDTH="75%"><A HREF="#lk2063_5.18_accuracy_of_information."><FONT SIZE=2>Accuracy of Information</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>5</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.19</FONT></TD>
<TD WIDTH="75%"><A HREF="#lk2063_5.19_solvency."><FONT SIZE=2>Solvency</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>5</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.20</FONT></TD>
<TD WIDTH="75%"><A HREF="#lk2063_5.20_labor_matters."><FONT SIZE=2>Labor Matters</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>5</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.21</FONT></TD>
<TD WIDTH="75%"><A HREF="#lk2063_5.21_security_documents."><FONT SIZE=2>Security Documents</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>SECTION 6</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.&nbsp;</FONT></TD>
<TD WIDTH="75%"><A HREF="#lk2063_section_6._conditions_precedent"><FONT SIZE=2>CONDITIONS PRECEDENT</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>6</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.1</FONT></TD>
<TD WIDTH="75%"><A HREF="#lk2063_6.1_conditions_to_term_loans."><FONT SIZE=2>Conditions to Term Loans</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>6</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.2</FONT></TD>
<TD WIDTH="75%"><A HREF="#lk2063_6.2_conditions_to_each_extension_of_credit."><FONT SIZE=2>Conditions to Each Extension of Credit</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>SECTION 7</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.&nbsp;</FONT></TD>
<TD WIDTH="75%"><A HREF="#lk2063_section_7._affirmative_covenants"><FONT SIZE=2>AFFIRMATIVE COVENANTS</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>7</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.1</FONT></TD>
<TD WIDTH="75%"><A HREF="#lk2063_7.1_financial_statements."><FONT SIZE=2>Financial Statements</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>7</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.2</FONT></TD>
<TD WIDTH="75%"><A HREF="#lk2063_7.2_certificates;_other_information."><FONT SIZE=2>Certificates; Other Information</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>7</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.3</FONT></TD>
<TD WIDTH="75%"><A HREF="#lk2063_7.3_payment_of_obligations."><FONT SIZE=2>Payment of Obligations</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>7</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.4</FONT></TD>
<TD WIDTH="75%"><A HREF="#lk2063_7.4_conduct_of_business_and_maintenance_of_existence."><FONT SIZE=2>Conduct of Business and Maintenance of Existence</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>7</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.5</FONT></TD>
<TD WIDTH="75%"><A HREF="#lk2063_7.5_maintenance_of_property;_insurance."><FONT SIZE=2>Maintenance of Property; Insurance</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>7</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.6</FONT></TD>
<TD WIDTH="75%"><A HREF="#lk2063_7.6_inspection_of_prope__lk202215"><FONT SIZE=2>Inspection of Property; Books and Records; Discussions</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>7</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.7</FONT></TD>
<TD WIDTH="75%"><A HREF="#lk2063_7.7_notices."><FONT SIZE=2>Notices</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>7</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.8</FONT></TD>
<TD WIDTH="75%"><A HREF="#lk2063_7.8_environmental_laws."><FONT SIZE=2>Environmental Laws</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>7</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.9</FONT></TD>
<TD WIDTH="75%"><A HREF="#lk2063_7.9_additional_collateral."><FONT SIZE=2>Additional Collateral</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>7</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.10</FONT></TD>
<TD WIDTH="75%"><A HREF="#lk2063_7.10_consummation_of_pe__lk202226"><FONT SIZE=2>Consummation of Permitted Securitization Transaction</FONT></A></TD>
</TR>
</TABLE>
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<BR>
<P ALIGN="CENTER"><FONT SIZE=2>ii</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=3,SEQ=3,EFW="2062020",CP="DAL-TILE INTERNATIONAL INC.",DN="5",CHK=551321,FOLIO='ii',FILE='DISK022:[01DFW3.01DFW2063]LC2063A.;28',USER='JBAKER',CD='29-OCT-2001;15:15' -->
<A NAME="page_lc2063_1_3"> </A>
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<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>SECTION 8</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.&nbsp;</FONT></TD>
<TD WIDTH="75%"><A HREF="#lm2063_section_8._negative_covenants"><FONT SIZE=2>NEGATIVE COVENANTS</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>8</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.1</FONT></TD>
<TD WIDTH="75%"><A HREF="#lm2063_8.1_financial_condition_covenants."><FONT SIZE=2>Financial Condition Covenants</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>8</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.2</FONT></TD>
<TD WIDTH="75%"><A HREF="#lm2063_8.2_limitation_on_indebtedness."><FONT SIZE=2>Limitation on Indebtedness</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>8</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.3</FONT></TD>
<TD WIDTH="75%"><A HREF="#lm2063_8.3_limitation_on_liens."><FONT SIZE=2>Limitation on Liens</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>8</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.4</FONT></TD>
<TD WIDTH="75%"><A HREF="#lm2063_8.4_limitation_on_guarantee_obligations."><FONT SIZE=2>Limitation on Guarantee Obligations</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>8</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.5</FONT></TD>
<TD WIDTH="75%"><A HREF="#lm2063_8.5_limitation_on_fundamental_changes."><FONT SIZE=2>Limitation on Fundamental Changes</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>8</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.6</FONT></TD>
<TD WIDTH="75%"><A HREF="#lm2063_8.6_limitation_on_sale_of_assets."><FONT SIZE=2>Limitation on Sale of Assets</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>8</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.7</FONT></TD>
<TD WIDTH="75%"><A HREF="#lm2063_8.7_[intentionally_omitted._]"><FONT SIZE=2>[Intentionally Omitted.]</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>8</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.8</FONT></TD>
<TD WIDTH="75%"><A HREF="#lm2063_8.8_limitation_on_restricted_payments."><FONT SIZE=2>Limitation on Restricted Payments</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>8</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.9</FONT></TD>
<TD WIDTH="75%"><A HREF="#lm2063_8.9_limitation_on_capital_expenditures."><FONT SIZE=2>Limitation on Capital Expenditures</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>8</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.10</FONT></TD>
<TD WIDTH="75%"><A HREF="#lm2063_8.10_limitation_on_investments,_loans_and_advances."><FONT SIZE=2>Limitation on Investments, Loans and Advances</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>8</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.11</FONT></TD>
<TD WIDTH="75%"><A HREF="#lm2063_8.11_limitation_on_transactions_with_affiliates."><FONT SIZE=2>Limitation on Transactions with Affiliates</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>8</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.12</FONT></TD>
<TD WIDTH="75%"><A HREF="#lm2063_8.12_limitation_on_sales_and_leasebacks."><FONT SIZE=2>Limitation on Sales and Leasebacks</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>8</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.13</FONT></TD>
<TD WIDTH="75%"><A HREF="#lm2063_8.13_limitation_on_changes_in_fiscal_year."><FONT SIZE=2>Limitation on Changes in Fiscal Year</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>8</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.14</FONT></TD>
<TD WIDTH="75%"><A HREF="#lm2063_8.14_limitation_on_certain_clauses."><FONT SIZE=2>Limitation on Certain Clauses</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>8</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.15</FONT></TD>
<TD WIDTH="75%"><A HREF="#lm2063_8.15_limitation_on_lines_of_business."><FONT SIZE=2>Limitation on Lines of Business</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>8</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.16</FONT></TD>
<TD WIDTH="75%"><A HREF="#lm2063_8.16_amendments_to_perm__lm202138"><FONT SIZE=2>Amendments to Permitted Securitization Transaction</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>8</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.17</FONT></TD>
<TD WIDTH="75%"><A HREF="#lm2063_8.17_limitation_on_optional_pa__8.102834"><FONT SIZE=2>Limitation on Optional Payments and Modifications of Debt Instruments</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>SECTION 9</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.&nbsp;</FONT></TD>
<TD WIDTH="75%"><A HREF="#lo2063_section_9._negative_covenants_of_holdings"><FONT SIZE=2>NEGATIVE COVENANTS OF HOLDINGS</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>9</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.1</FONT></TD>
<TD WIDTH="75%"><A HREF="#lo2063_9.1_limitation_on_holdings__activities."><FONT SIZE=2>Limitation on Holdings' Activities</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>9</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.2</FONT></TD>
<TD WIDTH="75%"><A HREF="#lo2063_9.2_restricted_payments."><FONT SIZE=2>Restricted Payments</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>9</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.3</FONT></TD>
<TD WIDTH="75%"><A HREF="#lo2063_9.3_equity_net_proceeds."><FONT SIZE=2>Equity Net Proceeds</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>9</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.4</FONT></TD>
<TD WIDTH="75%"><A HREF="#lo2063_9.4_dividends."><FONT SIZE=2>Dividends</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>SECTION 10</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.</FONT></TD>
<TD WIDTH="75%"><A HREF="#page_lo2063_1_66"><FONT SIZE=2>GUARANTEE</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>10</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.1</FONT></TD>
<TD WIDTH="75%"><A HREF="#page_lo2063_1_66"><FONT SIZE=2>Guarantee</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>10</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.2</FONT></TD>
<TD WIDTH="75%"><A HREF="#lo2063_10.2_no_subrogation,_contribut__10.02209"><FONT SIZE=2>No Subrogation, Contribution, Reimbursement or Indemnity</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>10</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.3</FONT></TD>
<TD WIDTH="75%"><A HREF="#lo2063_10.3_amendments,_etc."><FONT SIZE=2>Amendments, etc. with respect to the Obligations; Waiver of Rights</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>10</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.4</FONT></TD>
<TD WIDTH="75%"><A HREF="#lo2063_10.4_guarantee_absolute_and_unconditional."><FONT SIZE=2>Guarantee Absolute and Unconditional</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>10</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.5</FONT></TD>
<TD WIDTH="75%"><A HREF="#lo2063_10.5_reinstatement."><FONT SIZE=2>Reinstatement</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>10</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.6</FONT></TD>
<TD WIDTH="75%"><A HREF="#lo2063_10.6_payments."><FONT SIZE=2>Payments</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>SECTION 11</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.</FONT></TD>
<TD WIDTH="75%"><A HREF="#lo2063_section_11._events_of_default"><FONT SIZE=2>EVENTS OF DEFAULT</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>SECTION 12</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.</FONT></TD>
<TD WIDTH="75%"><A HREF="#lo2063_section_12._the_administrative_agent"><FONT SIZE=2>THE ADMINISTRATIVE AGENT</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>12</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.1</FONT></TD>
<TD WIDTH="75%"><A HREF="#lo2063_12.1_appointment."><FONT SIZE=2>Appointment</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>12</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.2</FONT></TD>
<TD WIDTH="75%"><A HREF="#lo2063_12.2_delegation_of_duties."><FONT SIZE=2>Delegation of Duties</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>12</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.3</FONT></TD>
<TD WIDTH="75%"><A HREF="#lo2063_12.3_exculpatory_provisions."><FONT SIZE=2>Exculpatory Provisions</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>12</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.4</FONT></TD>
<TD WIDTH="75%"><A HREF="#lo2063_12.4_reliance_by_administrative_agent."><FONT SIZE=2>Reliance by Administrative Agent</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>12</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.5</FONT></TD>
<TD WIDTH="75%"><A HREF="#lo2063_12.5_notice_of_default."><FONT SIZE=2>Notice of Default</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>12</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.6</FONT></TD>
<TD WIDTH="75%"><A HREF="#lo2063_12.6_non-reliance_on_ad__lo202141"><FONT SIZE=2>Non-Reliance on Administrative Agent and Other Lenders</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>12</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.7</FONT></TD>
<TD WIDTH="75%"><A HREF="#lo2063_12.7_indemnification."><FONT SIZE=2>Indemnification</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>12</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.8</FONT></TD>
<TD WIDTH="75%"><A HREF="#lo2063_12.8_administrative_agent_in_its_individual_capacity."><FONT SIZE=2>Administrative Agent in Its Individual Capacity</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>12</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.9</FONT></TD>
<TD WIDTH="75%"><A HREF="#lo2063_12.9_successor_administrative_agent."><FONT SIZE=2>Successor Administrative Agent</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>12</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.10</FONT></TD>
<TD WIDTH="75%"><A HREF="#lo2063_12.10_issuing_bank;_swing_line_lender."><FONT SIZE=2>Issuing Bank; Swing Line Lender</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>12</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.11</FONT></TD>
<TD WIDTH="75%"><A HREF="#lo2063_12.11_annual_administration_fee."><FONT SIZE=2>Annual Administration Fee</FONT></A></TD>
</TR>
</TABLE>
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<BR>
<P ALIGN="CENTER"><FONT SIZE=2>iii</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=4,SEQ=4,EFW="2062020",CP="DAL-TILE INTERNATIONAL INC.",DN="5",CHK=460959,FOLIO='iii',FILE='DISK022:[01DFW3.01DFW2063]LC2063A.;28',USER='JBAKER',CD='29-OCT-2001;15:15' -->
<A NAME="page_lc2063_1_4"> </A>

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<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>SECTION 13</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.</FONT></TD>
<TD WIDTH="75%"><A HREF="#lo2063_section_13._miscellaneous"><FONT SIZE=2>MISCELLANEOUS</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>13</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.1</FONT></TD>
<TD WIDTH="75%"><A HREF="#lo2063_13.1_amendments_and_waivers."><FONT SIZE=2>Amendments and Waivers</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>13</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.2</FONT></TD>
<TD WIDTH="75%"><A HREF="#lo2063_13.2_notices."><FONT SIZE=2>Notices</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>13</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.3</FONT></TD>
<TD WIDTH="75%"><A HREF="#lq2063_13.3_no_waiver;_cumulative_remedies."><FONT SIZE=2>No Waiver; Cumulative Remedies</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>13</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.4</FONT></TD>
<TD WIDTH="75%"><A HREF="#lq2063_13.4_survival_of_representations_and_warranties."><FONT SIZE=2>Survival of Representations and Warranties</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>13</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.5</FONT></TD>
<TD WIDTH="75%"><A HREF="#lq2063_13.5_payment_of_expenses_and_taxes."><FONT SIZE=2>Payment of Expenses and Taxes</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>13</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.6</FONT></TD>
<TD WIDTH="75%"><A HREF="#lq2063_13.6_successors_and_ass__lq202224"><FONT SIZE=2>Successors and Assigns; Participations and Assignments</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>13</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.7</FONT></TD>
<TD WIDTH="75%"><A HREF="#lq2063_13.7_adjustments;_set-off."><FONT SIZE=2>Adjustments; Set-off</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>13</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.8</FONT></TD>
<TD WIDTH="75%"><A HREF="#lq2063_13.8_counterparts."><FONT SIZE=2>Counterparts</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>13</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.9</FONT></TD>
<TD WIDTH="75%"><A HREF="#lq2063_13.9_severability."><FONT SIZE=2>Severability</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>13</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.10</FONT></TD>
<TD WIDTH="75%"><A HREF="#lq2063_13.10_integration."><FONT SIZE=2>Integration</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2><B>13</B></FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2><B>.11</B></FONT></TD>
<TD WIDTH="75%"><A HREF="#lq2063_13.11_governing_law."><FONT SIZE=2><B>GOVERNING LAW</B></FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>13</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.12</FONT></TD>
<TD WIDTH="75%"><A HREF="#lq2063_13.12_submission_to_jurisdiction;_waivers."><FONT SIZE=2>Submission To Jurisdiction; Waivers</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>13</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.13</FONT></TD>
<TD WIDTH="75%"><A HREF="#lq2063_13.13_acknowledgements."><FONT SIZE=2>Acknowledgements</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2><B>13</B></FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2><B>.14</B></FONT></TD>
<TD WIDTH="75%"><A HREF="#lq2063_13.14_waivers_of_jury_trial."><FONT SIZE=2><B>WAIVERS OF JURY TRIAL</B></FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>13</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.15</FONT></TD>
<TD WIDTH="75%"><A HREF="#lq2063_13.15_confidentiality."><FONT SIZE=2>Confidentiality</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>13</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.16</FONT></TD>
<TD WIDTH="75%"><A HREF="#lq2063_13.16_usury_savings_clause."><FONT SIZE=2>Usury Savings Clause</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>13</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.17</FONT></TD>
<TD WIDTH="75%"><A HREF="#lq2063_13.17_release_of_collateral."><FONT SIZE=2>Release of Collateral</FONT></A></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>13</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>.18</FONT></TD>
<TD WIDTH="75%"><A HREF="#lq2063_13.18_effect_of_agreement."><FONT SIZE=2>Effect of Agreement</FONT></A></TD>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=2>iv</FONT></P>

<HR NOSHADE>
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<A NAME="page_lc2063_1_5"> </A>

<P><FONT SIZE=2>
ANNEXES: </FONT></P>

<P><FONT SIZE=2>Annex
A&nbsp;&nbsp;Pricing Grid   </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="20%"><FONT SIZE=2>SCHEDULES:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="79%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="20%"><FONT SIZE=2>Schedule 1.1(a)</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="79%"><FONT SIZE=2>Commitments, Addresses and Lending Offices</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="20%"><FONT SIZE=2>Schedule 1.1(b)</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="79%"><FONT SIZE=2>Mortgaged Properties</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="20%"><FONT SIZE=2>Schedule 3.10</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="79%"><FONT SIZE=2>Continuing Letters of Credit</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="20%"><FONT SIZE=2>Schedule 5.15</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="79%"><FONT SIZE=2>Subsidiaries of Holdings and the Borrower</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="20%"><FONT SIZE=2>Schedule 5.21(a)</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="79%"><FONT SIZE=2>UCC Financing Statement Filing Jurisdictions</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="20%"><FONT SIZE=2>Schedule 5.21(b)</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="79%"><FONT SIZE=2>Mortgage Filing Jurisdictions</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="20%"><FONT SIZE=2>Schedule 8.2(e)</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="79%"><FONT SIZE=2>Existing Indebtedness</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="20%"><FONT SIZE=2>Schedule 8.3(g)</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="79%"><FONT SIZE=2>Existing Liens</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="20%"><FONT SIZE=2>Schedule 8.4(a)</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="79%"><FONT SIZE=2>Existing Guarantee Obligations</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="20%"><FONT SIZE=2>Schedule 8.10</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="79%"><FONT SIZE=2>Existing Investments</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="20%"><FONT SIZE=2>Schedule 8.11</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="79%"><FONT SIZE=2>Existing Transactions with Affiliates</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="20%"><FONT SIZE=2><BR>
EXHIBITS:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="79%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="20%"><FONT SIZE=2>Exhibit A-1</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="79%"><FONT SIZE=2>Form of Subsidiaries' Guarantee</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="20%"><FONT SIZE=2>Exhibit A-2</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="79%"><FONT SIZE=2>Form of Borrower Domestic Subsidiary Stock Pledge Agreement</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="20%"><FONT SIZE=2>Exhibit A-3</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="79%"><FONT SIZE=2>Form of Borrower Foreign Subsidiary Stock Pledge Agreement</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="20%"><FONT SIZE=2>Exhibit A-4</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="79%"><FONT SIZE=2>Form of Borrower Security Agreement</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="20%"><FONT SIZE=2>Exhibit A-5</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="79%"><FONT SIZE=2>Form of Collateral Agreement</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="20%"><FONT SIZE=2>Exhibit A-6</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="79%"><FONT SIZE=2>Form of Holdings Pledge Agreement</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="20%"><FONT SIZE=2>Exhibit B</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="79%"><FONT SIZE=2>Form of Swing Line Loan Participation Certificate</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="20%"><FONT SIZE=2>Exhibit C</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="79%"><FONT SIZE=2>Form of Term Note</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="20%"><FONT SIZE=2>Exhibit D</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="79%"><FONT SIZE=2>Form of Revolving Credit Note</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="20%"><FONT SIZE=2>Exhibit E</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="79%"><FONT SIZE=2>Form of Swing Line Note</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="20%"><FONT SIZE=2>Exhibit F</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="79%"><FONT SIZE=2>Form of Closing Certificate</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="20%"><FONT SIZE=2>Exhibit G</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="79%"><FONT SIZE=2>Form of Opinion of Fried, Frank, Harris, Shriver &amp; Jacobson</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="20%"><FONT SIZE=2>Exhibit H</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="79%"><FONT SIZE=2>Form of Assignment and Acceptance</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="20%"><FONT SIZE=2>Exhibit I</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="79%"><FONT SIZE=2>Form of Exemption Certificate</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="20%"><FONT SIZE=2>Exhibit J</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="79%"><FONT SIZE=2>Form of Issuing Bank Agreement</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="20%"><FONT SIZE=2>Exhibit K</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="79%"><FONT SIZE=2>Form of Mortgage</FONT></TD>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=2>v</FONT></P>

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<P><FONT SIZE=2><A
NAME="page_le2063_1_1"> </A> </FONT></P>

<!-- TOC_END -->

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;AMENDED
AND RESTATED CREDIT AND GUARANTEE AGREEMENT, dated as of August&nbsp;14, 1996, as amended and restated as of October&nbsp;26, 2001, among: </FONT></P>

<UL>
<DL compact>
<DT><FONT SIZE=2>(1)</FONT></DT><DD><FONT SIZE=2>DAL-TILE
INTERNATIONAL INC, a Delaware corporation ("</FONT><FONT SIZE=2><I>Holdings</I></FONT><FONT SIZE=2>");
<BR><BR></FONT></DD><DT><FONT SIZE=2>(2)</FONT></DT><DD><FONT SIZE=2>DAL-TILE
GROUP&nbsp;INC., a Delaware corporation (the "</FONT><FONT SIZE=2><I>Borrower</I></FONT><FONT SIZE=2>");
<BR><BR></FONT></DD><DT><FONT SIZE=2>(3)</FONT></DT><DD><FONT SIZE=2>THE
SEVERAL BANKS, FINANCIAL INSTITUTIONS AND OTHER ENTITIES from time to time parties to this Agreement (collectively, the
"</FONT><FONT SIZE=2><I>Lenders</I></FONT><FONT SIZE=2>"; individually, a "</FONT><FONT SIZE=2><I>Lender</I></FONT><FONT SIZE=2>");
<BR><BR></FONT></DD><DT><FONT SIZE=2>(4)</FONT></DT><DD><FONT SIZE=2>CREDIT
LYONNAIS NEW YORK BRANCH, FIRST UNION NATIONAL BANK and MIZUHO FINANCIAL GROUP, each as a Co-Documentation Agent (in such capacity, the
"</FONT><FONT SIZE=2><I>Co-Documentation Agents</I></FONT><FONT SIZE=2>");
<BR><BR></FONT></DD><DT><FONT SIZE=2>(5)</FONT></DT><DD><FONT SIZE=2>BANK
OF AMERICA, N.A., as Syndication Agent (in such capacity, the "</FONT><FONT SIZE=2><I>Syndication Agent</I></FONT><FONT SIZE=2>"); and
<BR><BR></FONT></DD><DT><FONT SIZE=2>(6)</FONT></DT><DD><FONT SIZE=2>THE
CHASE MANHATTAN BANK, a New York banking corporation, as Administrative Agent (as hereinafter defined) for the Lenders hereunder (together with the Syndication Agent and the
Co-Documentation Agents, the "</FONT><FONT SIZE=2><I>Managing Agents</I></FONT><FONT SIZE=2>"). </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="le2063_w_i_t_n_e_s_s_e_t_h_"> </A>
<A NAME="toc_le2063_1"> </A>
<BR></FONT><FONT SIZE=2>W I T N E S S E T H:    <BR></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,
the Borrower desires to amend and restate the Credit Agreement dated as of August&nbsp;14, 1996, as amended (as so amended prior to the date hereof, the
"</FONT><FONT SIZE=2><I>Existing Credit Agreement</I></FONT><FONT SIZE=2>"), among Holdings, the Borrower, the several banks and other financial institutions from time to time parties thereto, Credit
Suisse First Boston, as documentation agent, and The Chase Manhattan Bank, as administrative agent, in accordance with the terms and conditions set forth in this Agreement; and </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,
all the obligations of the Borrower hereunder will be secured by among other things, (i)&nbsp;a perfected lien on and security interest in certain collateral described in
the Security Agreements, including without limitation, a pledge of all the issued and outstanding Capital Stock of the Borrower and each of the other direct and indirect Domestic Subsidiaries of the
Borrower (other than any Receivables Subsidiary) and 65% of the issued and outstanding Capital Stock of each of the direct Foreign Subsidiaries of the Borrower and its Domestic Subsidiaries and
(ii)&nbsp;unconditional guarantees by each of the Guarantors; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;NOW,
THEREFORE, in consideration of the mutual covenants and premises contained herein, the parties hereto hereby agree as follows: </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="le2063_section_1._definitions"> </A>
<A NAME="toc_le2063_2"> </A>
<BR></FONT><FONT SIZE=2>SECTION 1. DEFINITIONS    <BR></FONT></P>

<P><FONT SIZE=2><A
NAME="le2063_1.1_defined_terms."> </A>
<A NAME="toc_le2063_3"> </A>
   &nbsp;&nbsp;&nbsp;&nbsp;1.1</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Defined Terms. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;As used in this Agreement, the following terms shall have the following meanings: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>ABR</I></FONT><FONT SIZE=2>": for any day, a rate per annum (rounded upwards, if necessary, to the next <SUP>1</SUP>/<SMALL>16</SMALL> of 1%) equal to the greatest of
(a)&nbsp;the Prime Rate in effect on such day and (b)&nbsp;the Federal Funds Effective Rate in effect on such day plus <SUP>1</SUP>/<SMALL>2</SMALL> of 1%. For purposes hereof: "</FONT><FONT SIZE=2><I>Prime
Rate</I></FONT><FONT SIZE=2>" shall mean the rate of interest per annum publicly announced from time to time by the Administrative Agent as its prime rate in effect at its principal office in New York
City (the Prime Rate not being intended to be the lowest rate of interest charged by the Administrative Agent in connection with extensions of credit to debtors); and "</FONT><FONT SIZE=2><I>Federal
Funds Effective Rate</I></FONT><FONT SIZE=2>" shall mean, for any day, the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System arranged by
federal funds brokers, as published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such rate is not so published for any day which is a Business Day, the average
of the quotations for the day of such transactions received by the Administrative Agent from three federal funds brokers of recognized standing selected by it. Any change in the ABR due to a change in
the Prime Rate or </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>1</FONT></P>

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<A NAME="page_le2063_1_2"> </A>

<P><FONT SIZE=2>
the Federal Funds Effective Rate shall be effective as of the opening of business on the effective day of such change in the Prime Rate or the Federal Funds Effective Rate, respectively. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>ABR Loans</I></FONT><FONT SIZE=2>": Loans the rate of interest applicable to which is based upon the ABR. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Adjustment Date</I></FONT><FONT SIZE=2>": the first Business Day following receipt by the Administrative Agent of both (i)&nbsp;the financial statements
required to be delivered pursuant to subsection 7.1(a) or 7.1(b), as the case may be, for the most recently completed fiscal period and (ii)&nbsp;the certificate required to be delivered pursuant to
subsection 7.2(b) with respect to such fiscal period, </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that April&nbsp;30, 2002 shall be the first Adjustment Date. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Administrative Agent</I></FONT><FONT SIZE=2>": Chase, together with its affiliates, as the administrative agent for the Lenders under this Agreement and the
other Loan Documents, and any successor thereto pursuant to subsection 12.9. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Affiliate</I></FONT><FONT SIZE=2>": as to any Person, any other Person (other than a Subsidiary), which, directly or indirectly, is in Control of, is
Controlled by, or is under common Control with, such Person. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Aggregate Revolving Credit Outstandings</I></FONT><FONT SIZE=2>": as to any Revolving Credit Lender at any time, an amount equal to the sum of (a)&nbsp;the
aggregate principal amount of all Revolving Credit Loans made by such Revolving Credit Lender then outstanding </FONT><FONT SIZE=2><I>plus</I></FONT><FONT SIZE=2> (b)&nbsp;such Revolving Credit
Lender's Revolving Credit Commitment Percentage of the L/C Obligations then outstanding </FONT><FONT SIZE=2><I>plus</I></FONT><FONT SIZE=2> (c)&nbsp;such Revolving Credit Lender's Revolving Credit
Commitment Percentage of all Swing Line Loans then outstanding. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Agreement</I></FONT><FONT SIZE=2>": this Amended and Restated Credit and Guarantee Agreement, as amended, supplemented or otherwise modified from time to
time. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Annual Administration Fee</I></FONT><FONT SIZE=2>": as defined in subsection 12.11. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Applicable Margin</I></FONT><FONT SIZE=2>": with respect to any Revolving Credit Loan or Term Loan (i)&nbsp;if such Revolving Credit Loan or Term Loan, as
the case may be, is an ABR Loan, 0.625% and (ii)&nbsp;if such Revolving Credit Loan or Term Loan, as the case may be, is a Eurodollar Loan, 1.625%, </FONT> <FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that the Applicable Margin for Revolving
Credit Loans and Term Loans will be adjusted, if required, on each Adjustment Date, to the Applicable
Margin set forth on </FONT><FONT SIZE=2><I>Annex&nbsp;A</I></FONT><FONT SIZE=2> hereto opposite the Leverage Ratio Level of the Borrower in effect on such Adjustment Date, </FONT> <FONT SIZE=2><I>provided further</I></FONT><FONT SIZE=2> that, in the
event that the financial statements required to be delivered pursuant to subsection 7.1(a) or 7.1(b), as applicable, and
the related certificate required pursuant to subsection 7.2(b), are not delivered when due, then, during the period from the date upon which such financial statements were required to be delivered
until one Business Day following the date upon which they actually are delivered, the Applicable Margin for Revolving Credit Loans and Term Loans which are ABR Loans shall be 1.125% and the Applicable
Margin for Revolving Credit Loans and Term Loans which are Eurodollar Loans shall be 2.125%. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Application</I></FONT><FONT SIZE=2>": an application, in such form as the relevant Issuing Bank may specify from time to time, requesting such Issuing Bank to
open a Letter of Credit. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Arranger</I></FONT><FONT SIZE=2>": J.P. Morgan Securities&nbsp;Inc., in its capacity as sole advisor, lead arranger and bookrunner. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Asset Sale</I></FONT><FONT SIZE=2>": as to any Person, any sale or other disposition (including any sale or other disposition in connection with a
Sale/Leaseback Transaction and any mortgage (other than the Mortgages) or lease of real property) subsequent to the Original Closing Date of any property of such Person (except sales or other
dispositions permitted under subsection 8.6(a) through 8.6(f) and subsection 8.6(h) through 8.6(k)). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Assignee</I></FONT><FONT SIZE=2>": as defined in subsection 13.6(c). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Available Revolving Credit Commitment</I></FONT><FONT SIZE=2>": as to any Revolving Credit Lender at any time, an amount equal to the excess, if any, of
(a)&nbsp;the amount of such Revolving Credit Lender's Revolving </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

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<P><FONT SIZE=2>
Credit Commitment at such time over (b)&nbsp;such Revolving Credit Lender's Aggregate Revolving Credit Outstandings at such time; collectively, as to all the Revolving Credit Lenders, the
"</FONT><FONT SIZE=2><I>Available Revolving Credit Commitments</I></FONT><FONT SIZE=2>". </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Board of Governors</I></FONT><FONT SIZE=2>": the Board of Governors of the Federal Reserve System and any Governmental Authority which succeeds to the powers
and functions thereof. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Borrower</I></FONT><FONT SIZE=2>": as defined in the Preamble to this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Borrower Pledge Agreements</I></FONT><FONT SIZE=2>": collectively, (i)&nbsp;the Amended and Restated Borrower Domestic Subsidiary Stock Pledge Agreement,
dated as of August&nbsp;14, 1996, as amended and restated as of the date hereof, made by the Borrower in favor of the Administrative Agent, substantially in the form of </FONT> <FONT SIZE=2><I>Exhibit&nbsp;A-2</I></FONT><FONT SIZE=2>, and
(ii)&nbsp;each Amended and Restated Borrower Foreign Subsidiary Stock Pledge Agreement, dated as of
October&nbsp;4, 1996, as amended and restated as of the date hereof, made by the Borrower in favor of the Administrative Agent, substantially in the form of </FONT> <FONT SIZE=2><I>Exhibit&nbsp;A-3</I></FONT><FONT SIZE=2>, and in each case as the
same may be further amended, restated, amended and restated, supplemented or otherwise modified
from time to time after the Closing Date. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Borrower Security Agreement</I></FONT><FONT SIZE=2>": the Amended and Restated Security Agreement, dated as of June&nbsp;19, 1997, as amended and restated
as of the date hereof, executed and delivered by the Borrower in favor
of the Administrative Agent, substantially in the form of </FONT><FONT SIZE=2><I>Exhibit&nbsp;A-4</I></FONT><FONT SIZE=2>, and as the same may be further amended, restated, amended and
restated, supplemented or otherwise modified from time to time after the Closing Date. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Borrowing Date</I></FONT><FONT SIZE=2>": any Business Day specified in a notice pursuant to subsection 2.2, 3.2 or 3.8 as a date on which the Borrower
requests the Lenders to make Loans or the Swing Line Lender to make Swing Line Loans hereunder. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Business Day</I></FONT><FONT SIZE=2>": a day other than a Saturday, Sunday or other day on which commercial banks in New York City are authorized or required
by law to close. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Capital Expenditures</I></FONT><FONT SIZE=2>": as to any Person for any period, the aggregate amount of all expenditures by such Person and its Subsidiaries
(other than any such expenditures in respect of the purchase price of Investments permitted under subsection 8.10(f) and 8.10(g)) for the rental, lease, purchase (including by way of the acquisition
of securities of a Person), construction or use of any property during such period, which, in accordance with GAAP, are or should be included in "capital expenditures" or similar items in such
Person's consolidated statement of cash flows for such period, excluding (a)&nbsp;any such expenditure in respect of any Replacement Asset (other than capital expenditures for ordinary maintenance
purposes), (b)&nbsp;any such expenditure made to restore, replace or rebuild property to the condition of such property immediately prior to a Casualty Event with respect to such property, to the
extent such expenditure is made with the Net Proceeds from such Casualty Event, (c)&nbsp;any such expenditure which represents capitalized interest in respect of the financing of any such
expenditures and (d)&nbsp;any such expenditures made with the proceeds of sales or dispositions of assets permitted under Section&nbsp;8.6(e). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Capital Stock</I></FONT><FONT SIZE=2>": any and all shares, interests, participations or other equivalents (however designated) of capital stock of a
corporation, any and all equivalent ownership interests in a Person (other than a corporation) and any and all warrants or options to purchase any of the foregoing. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Cash Equivalents</I></FONT><FONT SIZE=2>": (a)&nbsp;securities issued or directly and fully guaranteed or insured by the United States Government, or any
agency or instrumentality thereof, having maturities of not more than one year from the date of acquisition, (b)&nbsp;marketable general obligations issued by any state of the United States of
America or any political subdivision of any such state or any public instrumentality thereof maturing within one year from the date of acquisition thereof and, at the time of acquisition thereof,
having a credit rating of "A" or better from either S&amp;P or Moody's; (c)&nbsp;certificates of deposit, time deposits, eurodollar time deposits, overnight bank deposits or bankers' acceptances having
maturities of </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>

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<P><FONT SIZE=2>
not more than one year from the date of acquisition thereof of any Lender, or of any domestic commercial bank the long-term debt of which is rated at the time of acquisition thereof at
least A or
the equivalent thereof by S&amp;P, or A or the equivalent thereof by Moody's, and having capital and surplus in excess of $300,000,000, (d)&nbsp;repurchase obligations with a term of not more than seven
days for underlying securities of the types described in clauses (a), (b)&nbsp;and (c)&nbsp;entered into with any bank meeting the qualifications specified in clause&nbsp;(c) above,
(e)&nbsp;commercial paper rated at the time of acquisition thereof at least A-2 or the equivalent thereof by S&amp;P or P-2 or the equivalent thereof by Moody's, or carrying an
equivalent rating by a nationally recognized rating agency, if both of the two named rating agencies cease publishing ratings of investments, and in either case maturing within 270&nbsp;days after
the date of acquisition thereof, (f)&nbsp;other investment instruments approved in writing by the Required Lenders and offered by any Lender or by any financial institution which has a combined
capital and surplus of not less than $100,000,000 or (g)&nbsp;short-term investments (not exceeding 30&nbsp;days) in loans made to obligors having an investment grade rating from each
of S&amp;P and Moody's. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Casualty Event</I></FONT><FONT SIZE=2>": with respect to any property of any Person, the receipt by such Person of insurance proceeds, or proceeds of a
condemnation award or other compensation in connection with any loss of or damage to, or any condemnation or other taking of, such property. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Change in Control</I></FONT><FONT SIZE=2>": (a)&nbsp;the acquisition of ownership, directly or indirectly, beneficially or of record, by any Person or group
(within the meaning of the Securities Exchange Act of 1934 and the rules of the Securities and Exchange Commission thereunder as in effect on the date hereof), of shares representing more than 35% of
the aggregate ordinary voting power represented by the issued and outstanding capital stock of Holdings; (b)&nbsp;occupation of a majority of the seats (other than vacant seats) on the board of
directors of Holdings or the Borrower by Persons who were neither (i)&nbsp;nominated by the board of directors of Holdings or the Borrower, as applicable, nor (ii)&nbsp;appointed by directors so
nominated; or (c)&nbsp;Holdings shall not own 100% of the aggregate ordinary voting power represented by the issued and outstanding capital stock of the Borrower. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Chase</I></FONT><FONT SIZE=2>": The Chase Manhattan Bank, a New York banking corporation. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>"Closing Date</I></FONT><FONT SIZE=2>": the date on which the conditions precedent set forth in subsection 6.1 shall be satisfied or waived (but in no event
later than November&nbsp;30, 2001). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Code</I></FONT><FONT SIZE=2>": the Internal Revenue Code of 1986, as amended from time to time. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Co-Documentation Agents</I></FONT><FONT SIZE=2>": as defined in the Preamble to this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Collateral</I></FONT><FONT SIZE=2>": all assets (other than any Excluded Property) of the Loan Parties, now owned or hereinafter acquired, upon which a Lien
is purported to be created by any Security Document. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Collateral Agreement</I></FONT><FONT SIZE=2>": the Amended and Restated Collateral Agreement, dated as of June&nbsp;19, 1997, as amended and restated as of
the date hereof, executed and delivered by each Guarantor (other than Holdings), substantially in the form of </FONT><FONT SIZE=2><I>Exhibit&nbsp;A-5</I></FONT><FONT SIZE=2>, as the
same may be amended, restated, amended and restated, supplemented or otherwise modified from time to time. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Commercial Letter of Credit</I></FONT><FONT SIZE=2>": as defined in subsection&nbsp;3.10(b)(i)(2). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Commitment</I></FONT><FONT SIZE=2>": with respect to any Lender, the collective reference to such Lender's Term Loan Commitment and/or Revolving Credit
Commitment; collectively, as to all the Lenders, the "</FONT><FONT SIZE=2><I>Commitments</I></FONT><FONT SIZE=2>". </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Commitment Fee Rate</I></FONT><FONT SIZE=2>": as defined in subsection&nbsp;3.3. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Commitment Percentage</I></FONT><FONT SIZE=2>": as to any Lender (a)&nbsp;at any time prior to the termination of the Revolving Credit Commitments, the
percentage which (i)&nbsp;the sum of (x)&nbsp;such Lender's Revolving Credit Commitment </FONT><FONT SIZE=2><I>plus</I></FONT><FONT SIZE=2> (y)&nbsp;such Lender's Term Loan Commitment (or,
after the Term Loans are made, the outstanding principal amount of such Lender's Term Loan) then constitutes of (ii)&nbsp;the sum of (x)&nbsp;the Revolving Credit Commitments of all the Lenders </FONT> <FONT SIZE=2><I>plus</I></FONT><FONT SIZE=2>
(y)&nbsp;the Term Loan Commitments of </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>4</FONT></P>

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<P><FONT SIZE=2>
all the Lenders (or, after the Term Loans are made, the aggregate principal amount of Term Loans of all the Lenders then outstanding), and (b)&nbsp;at any time after the termination of the Revolving
Credit Commitments, the percentage which (i)&nbsp;the sum of (x)&nbsp;the principal amount of such Lender's Loans (other than Swing Line Loans) then outstanding </FONT> <FONT SIZE=2><I>plus</I></FONT><FONT SIZE=2> (y)&nbsp;the product of such
Lender's Revolving Credit Commitment Percentage times the sum of (I)&nbsp;the L/C Obligations then outstanding and
(II)&nbsp;the Swing Line Loans then outstanding then constitutes of (ii)&nbsp;the sum of (x)&nbsp;the aggregate principal amount of Loans of all the Lenders then outstanding </FONT> <FONT SIZE=2><I>plus</I></FONT><FONT SIZE=2> (y)&nbsp;the aggregate
L/C Obligations of all the Lenders then outstanding. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Common Stock</I></FONT><FONT SIZE=2>": the Common Stock of Holdings, par value $.01 per share. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Commonly Controlled Entity</I></FONT><FONT SIZE=2>": an entity, whether or not incorporated, which is under common control with the Borrower within the
meaning of Section&nbsp;4001 of ERISA or is part of a group which includes the Borrower and which is treated as a single employer under Section&nbsp;414(b) or (c)&nbsp;of the Code or, solely for
purposes of determining liability under Section&nbsp;412 of the Code, which is treated as a single employer under Section&nbsp;414 (b), (c), (m)&nbsp;or (o)&nbsp;of the Code. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Conduit Lender</I></FONT><FONT SIZE=2>": any special purpose corporation organized and administered by any Lender for the purpose of making Loans otherwise
required to be made by such Lender and designated by such Lender in a written instrument; </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2>, that the designation by any Lender of a Conduit
Lender shall not relieve the designating Lender of any of its obligations to fund a Loan under this Agreement if, for any reason, its Conduit Lender fails to fund any such Loan, and the designating
Lender (and not the Conduit Lender) shall have the sole right and responsibility to deliver all consents and waivers required or requested under this Agreement with respect to its Conduit Lender, and </FONT> <FONT SIZE=2><I>provided,
further</I></FONT><FONT SIZE=2>, that no Conduit Lender shall (a)&nbsp;be entitled to receive any greater amount pursuant to Section&nbsp;4.9, 4.10, 4.11 or 13.5
than the designating Lender would have been entitled to receive in respect of the extensions of credit made by such Conduit Lender or (b)&nbsp;be deemed to have any Commitment. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Consolidated Capitalization</I></FONT><FONT SIZE=2>": at any date of determination, the sum of (a)&nbsp;Consolidated Total Debt at such date of
determination </FONT><FONT SIZE=2><I>plus</I></FONT><FONT SIZE=2> (b)&nbsp;Consolidated Net Worth at such date of determination, all as determined on a consolidated basis in accordance with GAAP. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Consolidated EBITDA</I></FONT><FONT SIZE=2>": for any period, the Consolidated Net Income for such period, </FONT> <FONT SIZE=2><I>plus</I></FONT><FONT SIZE=2>, to the extent deducted in determining such Consolidated Net Income,
(a)&nbsp;Consolidated Interest Expense, (b)&nbsp;depreciation,
(c)&nbsp;amortization and (d)&nbsp;all Federal, state, local and foreign income taxes, all as determined on a consolidated basis in accordance with GAAP. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Consolidated Interest Coverage Ratio</I></FONT><FONT SIZE=2>": for any period, the ratio of (a)&nbsp;Consolidated EBITDA for such period to
(b)&nbsp;Consolidated Interest Expense for such period. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Consolidated Interest Expense</I></FONT><FONT SIZE=2>": for any period, an amount equal to the sum of, without duplication, (a)&nbsp;the amount of interest
expense (net of interest income), both expensed and capitalized, of Holdings (or, if the Merger is consummated, the Borrower) and its Subsidiaries for such period as determined on a consolidated basis
in accordance with GAAP and (b)&nbsp;an amount equal to the interest (or other fees or other amounts in the nature of interest or discount accrued and paid or payable in cash for such period) in
respect of the Permitted Securitization Transaction. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Consolidated Lease Expense</I></FONT><FONT SIZE=2>": for any period, the aggregate amount of fixed and contingent rentals payable by Holdings (or, if the
Merger is consummated, the Borrower) and its Subsidiaries for such period with respect to leases of real and personal property, determined on a consolidated basis in accordance with GAAP. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Consolidated Leverage Ratio</I></FONT><FONT SIZE=2>": for any period, the ratio of (a)&nbsp;Consolidated Total Debt at the last day of such period to
(b)&nbsp;Consolidated EBITDA for such period. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Consolidated Net Income</I></FONT><FONT SIZE=2>": for any period, the net income of Holdings (or, if the Merger is consummated, the Borrower) and its
Subsidiaries for such period as determined on a consolidated basis </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>5</FONT></P>

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<P><FONT SIZE=2>
in accordance with GAAP, but excluding from the determination thereof (without duplication) (a)&nbsp;any extraordinary gains or losses, (b)&nbsp;any restructuring charges or
non-recurring gains or losses in an aggregate amount not to exceed $50,000,000, with no more than $10,000,000 of such $50,000,000 to be in cash, in each case, during any
four-quarter period, (c)&nbsp;gains or losses from the proposed or actual disposition of material assets, (d)&nbsp;goodwill and intangible asset write-downs (but deducting from the
determination of Consolidated Net Income for any period, cash payments made during such period in respect of any goodwill and intangible asset write-downs recorded after the Closing Date),
(e)&nbsp;non-cash charges resulting from the vesting or exercise of stock options or stock appreciation rights granted to management of the Borrower and (f)&nbsp;non-cash
gains or losses which are specific to hedge transactions which are disallowed hedge accounting treatment under the Statements of Financial Accounting Standards numbers 133 and 138. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Consolidated Net Revenue</I></FONT><FONT SIZE=2>": of any Person for any period, the net revenue of such Person and its consolidated Subsidiaries for such
period, determined on a consolidated basis in accordance with GAAP. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Consolidated Net Worth</I></FONT><FONT SIZE=2>": at any date of determination, all items which would, in accordance with GAAP, be included under shareholders'
equity on a consolidated balance sheet of Holdings (or, if the Merger is consummated, the Borrower) and its Subsidiaries at such date of determination, but excluding from the determination thereof
(without duplication) the effect of (a)&nbsp;any foreign currency translation adjustments, (b)&nbsp;any extraordinary gains or losses, (c)&nbsp;any restructuring charges or
non-recurring gains or losses in an aggregate amount not to exceed $200,000,000, with no more than $50,000,000 of such $200,000,000 to be in cash, in each case, during the term of this
Agreement, (d)&nbsp;gains or losses taken in accordance with the Statements of Financial Accounting Standards numbers 133 and 138 adjustments, (e)&nbsp;stock repurchases and dividends consummated
in accordance with subsection 8.8(d), (f)&nbsp;non-cash intangible and material write-downs of assets (but deducting from the determination of Consolidated Net Worth for any period, cash
payments made during such period in respect of any write-downs recorded after the Closing Date) and (g)&nbsp;non-cash charges resulting from the vesting or exercise of stock options or
stock appreciation rights granted to management of the Borrower. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Consolidated Total Assets</I></FONT><FONT SIZE=2>": of any Person at any date of determination, the total assets of such Person and its consolidated
Subsidiaries at such date of determination, determined on a consolidated basis in accordance with GAAP. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Consolidated Total Debt</I></FONT><FONT SIZE=2>": at any date of determination, an amount equal to the sum of, without duplication, (a)&nbsp;all
Indebtedness of Holdings (or, if the Merger is consummated, the Borrower) and its consolidated Subsidiaries at such date of determination as determined on a consolidated basis in
accordance with GAAP and (b)&nbsp;the aggregate cash proceeds received by the Borrower and its Subsidiaries (net of amounts repaid) from the financing of then outstanding Receivables pursuant to a
Permitted Securitization Transaction at such date of determination. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Continuing Letter of Credit</I></FONT><FONT SIZE=2>": any Existing Letter of Credit issued by a Lender. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Contractual Obligation</I></FONT><FONT SIZE=2>": as to any Person, any provision of any security issued by such Person or of any agreement, instrument or
other undertaking to which such Person is a party or by which it or any of its property is bound. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Control</I></FONT><FONT SIZE=2>": of a Person means the power, directly or indirectly, either to (a)&nbsp;vote 10% or more of the securities having ordinary
voting power for the election of directors of such Person or (b)&nbsp;direct or cause the direction of the management and policies of such Person, whether by contract or otherwise. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Currency Rate Protection Agreements</I></FONT><FONT SIZE=2>": as to any Person, all foreign exchange contracts, currency swap agreements or other similar
agreements or arrangements entered into in the ordinary course of business by such Person designed to protect such Person against fluctuations in currency values. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>6</FONT></P>

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<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT SIZE=2><I>De Minimus Asset Sale</I></FONT><FONT SIZE=2>": as defined in subsection 4.1(b). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Default</I></FONT><FONT SIZE=2>": any of the events specified in Section&nbsp;11, whether or not any requirement for the giving of notice, the lapse of
time, or both, has been satisfied. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Dollars</I></FONT><FONT SIZE=2>" and "</FONT><FONT SIZE=2><I>$</I></FONT><FONT SIZE=2>": dollars in lawful currency of the United States of America. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Domestic Subsidiary</I></FONT><FONT SIZE=2>": any Subsidiary of the Borrower other than a Foreign Subsidiary. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Environmental Laws</I></FONT><FONT SIZE=2>": any and all foreign, Federal, state, local or municipal laws, rules, orders, regulations, statutes, ordinances,
codes, decrees, requirements of any Governmental Authority or other Requirements of Law (including common law) regulating, relating to or imposing liability or standards
of conduct concerning protection of human health or the environment, as now or may at any time hereafter be in effect. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Environmental Permits</I></FONT><FONT SIZE=2>": all permits, licenses, registrations, notifications, exemptions, and other authorizations required under
Environmental Laws. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>ERISA</I></FONT><FONT SIZE=2>": the Employee Retirement Income Security Act of 1974, as amended from time to time. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Eurocurrency Reserve Requirements</I></FONT><FONT SIZE=2>": for any day as applied to a Eurodollar Loan, the aggregate (without duplication) of the rates
(expressed as a decimal fraction) of reserve requirements in effect on such day (including, without limitation, basic, supplemental, marginal and emergency reserves under any regulations of the Board
of Governors or other Governmental Authority having jurisdiction with respect thereto) dealing with reserve requirements prescribed for eurocurrency funding (currently referred to as "Eurocurrency
Liabilities" in Regulation&nbsp;D of the Board of Governors) maintained by a member bank of the Federal Reserve System. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Eurodollar Base Rate</I></FONT><FONT SIZE=2>": with respect to each day during each Interest Period pertaining to a Eurodollar Loan, the rate per annum
determined on the basis of the rate for deposits in Dollars for a period equal to such Interest Period commencing on the first day of such Interest Period appearing on Page 3750 of the Telerate screen
as of 11:00&nbsp;A.M., London time, two Business Days prior to the beginning of such Interest Period. In the event that such rate does not appear on Page 3750 of the Telerate screen (or otherwise on
such screen), the "Eurodollar Base Rate" shall be determined by reference to such other comparable publicly available service for displaying eurodollar rates as may be selected by the Administrative
Agent or, in the absence of such availability, by reference to the rate at which the Administrative Agent is offering Dollar deposits at or about 11:00&nbsp;A.M., New York City time, two Business
Days prior to the beginning of such Interest Period in the interbank eurodollar market where its eurodollar and foreign currency and exchange operations are then being conducted for delivery on the
first day of such Interest Period for the number of days comprised therein. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Eurodollar Loans</I></FONT><FONT SIZE=2>": Loans the rate of interest applicable to which is based upon the Eurodollar Rate. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Eurodollar Rate</I></FONT><FONT SIZE=2>": with respect to each day during each Interest Period pertaining to a Eurodollar Loan, a rate per annum determined
for such day in accordance with the following formula (rounded upward to the nearest <SUP>1</SUP>/<SMALL>1</SMALL>,000th of 1%): </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>Eurodollar Base Rate </FONT></P>

<HR NOSHADE ALIGN="CENTER" WIDTH="120">
<P ALIGN="CENTER"><FONT SIZE=2>1.00&#151;Eurocurrency Reserve Requirements </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Event of Default</I></FONT><FONT SIZE=2>": any of the events specified in Section&nbsp;11, </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that all
requirements for the giving of notice, the lapse of time, or both, have been satisfied. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>7</FONT></P>

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<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT SIZE=2><I>Excess Securitization Amount</I></FONT><FONT SIZE=2>": an amount equal to the aggregate cash proceeds received by the Borrower and its Subsidiaries (net of
amounts repaid) in excess of $100,000,000 from the financing of then outstanding Receivables pursuant to a Permitted Securitization Transaction. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Excluded Property</I></FONT><FONT SIZE=2>": for so long as any Permitted Securitization Transaction is in effect (whether before or after termination of any
other Permitted Securitization Transaction) and to the extent such property described below is subject to a Permitted Securitization Transaction, all right, title and interest of the Seller in and to:
(i)&nbsp;all Securitization Receivables; (ii)&nbsp;all Related Security; (iii)&nbsp;with respect to each Securitization Receivable, all cash collections and other cash proceeds of such
Securitization Receivable, including all cash proceeds of Related Security with respect to such Securitization Receivable, and all funds deemed to have been received as a collection as a result of
dilution or a breach of representations; (iv)&nbsp;each bank account maintained by the Seller to the extent such account contains cash collections or other cash proceeds of Securitization
Receivables or cash proceeds of any Related Security with respect to Securitization Receivables, together with all funds in each such account to the extent such funds constitute cash collections or
other cash proceeds of Securitization Receivables or cash proceeds of any Related Security with respect to Securitization Receivables and (v)&nbsp;to the extent not included in the foregoing, all
proceeds of any and all of the foregoing. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Existing Letter of Credit</I></FONT><FONT SIZE=2>": at any date, any letter of credit issued and outstanding under the Existing Credit Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Existing Credit Agreement</I></FONT><FONT SIZE=2>": as defined in the Preamble to this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Extension of Credit</I></FONT><FONT SIZE=2>": with respect to any Lender, the making of a Loan by such Lender, and, if such Lender is a Revolving Credit
Lender, the issuance of a Letter of Credit; with respect to all the Lenders, the "</FONT><FONT SIZE=2><I>Extensions of Credit</I></FONT><FONT SIZE=2>". </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>FDIC</I></FONT><FONT SIZE=2>": the Federal Deposit Insurance Corporation and any Governmental Authority which succeeds to the powers and functions thereof. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Federal Funds Effective Rate</I></FONT><FONT SIZE=2>": as defined in the definition of ABR contained in this subsection 1.1. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Financing Lease</I></FONT><FONT SIZE=2>": any lease of property, real or personal, the obligations of the lessee in respect of which are required in
accordance with GAAP to be capitalized on a balance sheet of the lessee. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Financing Lease Obligations</I></FONT><FONT SIZE=2>": as to any Person, the obligations of such Person to pay rent or other amounts under any Financing Lease;
the amount of such obligations at any time shall be the capitalized amount thereof at such time determined in accordance with GAAP. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Foreign Holding Company</I></FONT><FONT SIZE=2>": any Subsidiary organized under the laws of the United States of America or any State thereof the principal
assets of which consist of the Capital Stock of one or more Foreign Subsidiaries or other Foreign Holding Companies. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Foreign Subsidiary</I></FONT><FONT SIZE=2>": (a)&nbsp;any Subsidiary of the Borrower organized under the laws of any jurisdiction outside the United States
of America and (b)&nbsp;any Foreign Holding Company. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>GAAP</I></FONT><FONT SIZE=2>": generally accepted accounting principles in the United States of America in effect from time to time. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Governmental Authority</I></FONT><FONT SIZE=2>": any nation or government, any state or other political subdivision thereof and any entity exercising
executive, legislative, judicial, regulatory or administrative functions of or pertaining to government. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Guarantee</I></FONT><FONT SIZE=2>": the guarantee contained in Section&nbsp;10 or in the Subsidiaries' Guarantee. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Guarantee Obligation</I></FONT><FONT SIZE=2>": as to any Person (the "</FONT><FONT SIZE=2><I>Guaranteeing Person</I></FONT><FONT SIZE=2>"), any obligation of
(a)&nbsp;the Guaranteeing Person or (b)&nbsp;another Person (including, without limitation, any bank under any letter of credit) to induce the creation of which the Guaranteeing Person has issued
a reimbursement, counter </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>8</FONT></P>

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<P><FONT SIZE=2>
indemnity or similar obligation, in either case guaranteeing or in effect guaranteeing any Indebtedness, lease, dividend or other obligation (the "</FONT><FONT SIZE=2><I>Primary
Obligations</I></FONT><FONT SIZE=2>") of any other third Person (the "</FONT><FONT SIZE=2><I>Primary Obligor</I></FONT><FONT SIZE=2>") in any manner, whether directly or indirectly, including,
without limitation, any obligation of the Guaranteeing Person, whether or not contingent, (i)&nbsp;to purchase any such Primary Obligation or any property constituting direct or indirect security
therefor, (ii)&nbsp;to advance or supply funds (1)&nbsp;for the purchase or payment of any such Primary Obligation or (2)&nbsp;to maintain working capital or equity capital of the Primary
Obligor or otherwise to maintain the net worth or solvency of the Primary Obligor, (iii)&nbsp;to purchase property, securities or services primarily for the purpose of assuring the owner of any such
Primary Obligation of the ability of the Primary Obligor to make payment of such Primary Obligation or (iv)&nbsp;otherwise to assure or hold harmless the owner of any such Primary Obligation against
loss in respect thereof, </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2>, </FONT><FONT SIZE=2><I>however</I></FONT><FONT SIZE=2>, that the term Guarantee Obligation shall not include
endorsements of instruments for deposit or collection in the ordinary course of business. The amount of any Guarantee Obligation of any Guaranteeing Person shall be deemed to be the lower of
(a)&nbsp;an amount equal to the stated or determinable amount of the Primary Obligation in respect of which such Guarantee Obligation is made and (b)&nbsp;the maximum amount for which such
Guaranteeing Person may be liable pursuant to the terms of the instrument embodying such Guarantee Obligation, unless such Primary Obligation and the maximum amount for which such Guaranteeing Person
may be liable are not stated or determinable, in which case the amount of such Guarantee Obligation shall be such Guaranteeing Person's maximum reasonably anticipated liability in respect thereof as
determined by the Borrower in good faith. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Guarantors</I></FONT><FONT SIZE=2>": Holdings and each Subsidiary Guarantor. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Hazardous Materials</I></FONT><FONT SIZE=2>": any petroleum (including crude oil or any fraction thereof) or petroleum products, polychlorinated biphenyls,
urea-formaldehyde insulation, asbestos and asbestos-containing materials, pollutants, contaminants, and all other materials and substances including but not limited to radioactive
materials regulated pursuant to any Environmental Laws or that could result in liability under any Environmental Law. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Holdings</I></FONT><FONT SIZE=2>": as defined in the Preamble to this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Holdings Pledge Agreement</I></FONT><FONT SIZE=2>": the Pledge Agreement, dated as of August&nbsp;14, 1996, as amended and restated as of the date hereof,
made by Holdings in favor of the Administrative Agent, substantially in the form of </FONT><FONT SIZE=2><I>Exhibit&nbsp;A-6</I></FONT><FONT SIZE=2>, as the same may be amended,
restated, amended and restated, supplemented or otherwise modified from time to time. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Indebtedness</I></FONT><FONT SIZE=2>": of any Person at any date, without duplication, (a)&nbsp;all indebtedness of such Person for borrowed money or for
the deferred purchase price of property or services (other than current trade payables or liabilities and deferred payment for services to employees and former employees incurred in the ordinary
course of business and payable in accordance with customary practices and other deferred compensation practices), (b)&nbsp;any other indebtedness of such Person which is evidenced by a note, bond,
debenture or similar instrument, (c)&nbsp;all obligations of such Person under Financing Leases, (d)&nbsp;all obligations of such Person in respect of acceptances issued or created for the account
of such Person, (e)&nbsp;the face amount of all letters of credit issued for the account of such Person and, without duplication, all drafts drawn thereunder and (f)&nbsp;all indebtedness of
others of the types described in (a)&nbsp;through (d)&nbsp;above secured by any Lien on any property owned by such Person even though such Person has not assumed or otherwise become liable for the
payment thereof (the amount of such indebtedness with respect to such Person being deemed to be the lesser of the value of such property or the amount of indebtedness of others so secured), but in any
event excluding customer deposits in the ordinary course of business. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Index Debt</I></FONT><FONT SIZE=2>": the senior unsecured, long-term, non-credit enhanced debt rating of the Borrower. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Insolvency</I></FONT><FONT SIZE=2>": with respect to any Multiemployer Plan, the condition that such Plan is insolvent within the meaning of
Section&nbsp;4245 of ERISA. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>9</FONT></P>

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<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT SIZE=2><I>Insolvent</I></FONT><FONT SIZE=2>": pertaining to a condition of Insolvency. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Intellectual Property</I></FONT><FONT SIZE=2>": the collective reference to all rights, priorities and privileges relating to intellectual property, whether
arising under United States, multinational or foreign laws or otherwise, including copyrights, copyright licenses, patents, patent licenses, trademarks, trademark licenses, trademark applications,
service marks, service mark licenses, service mark applications, domain names, technology, know-how and processes, and all rights to sue at law or in equity for any infringement or other
impairment thereof, including the right to receive all proceeds and damages therefrom. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Interest Payment Date</I></FONT><FONT SIZE=2>": (a)&nbsp;as to ABR Loans, the last day of each March, June, September and December, (b)&nbsp;as to any
Eurodollar Loan having an Interest Period of three months or less, the last day of such Interest Period and (c)&nbsp;as to any Eurodollar Loan having an Interest Period longer than three months,
each day which is three months, or a whole multiple thereof, after the first day of such Interest Period and the last day of such Interest Period. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Interest Period</I></FONT><FONT SIZE=2>": with respect to any Eurodollar Loan: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;initially,
the period commencing on the borrowing or conversion date, as the case may be, with respect to such Eurodollar Loan and ending one, two, three or six
months thereafter, as selected by the Borrower in its notice of borrowing or notice of conversion, as the case may be, given with respect thereto; and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;thereafter,
each period commencing on the last day of the next preceding Interest Period applicable to such Eurodollar Loan and ending one, two, three or six
months thereafter, as selected by the Borrower by irrevocable notice to the Administrative Agent not less than three Business Days prior to the last day of the then current Interest Period with
respect thereto; </FONT></P>

</UL>

<P><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that, all of the foregoing provisions relating to Interest Periods are subject to the following: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;if
any Interest Period pertaining to a Eurodollar Loan would otherwise end on a day that is not a Business Day, such Interest Period shall be extended to the next
succeeding Business Day unless the result of such extension would be to carry such Interest Period into another calendar month in which event such Interest Period shall end on the immediately
preceding Business Day; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;no
Interest Period that would otherwise extend beyond the Revolving Credit Termination Date or beyond the date final payment is due on the Term Loans shall be
selected by the Borrower; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;any
Interest Period pertaining to a Eurodollar Loan that begins on the last Business Day of a calendar month (or on a day for which there is no numerically
corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business Day of a calendar month; and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;the
Borrower shall select Interest Periods so as not to require a payment or prepayment of any Eurodollar Loan during an Interest Period for such Eurodollar Loan. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Interest Rate Protection Agreements</I></FONT><FONT SIZE=2>": as to any Person, all interest rate swaps, caps or collar agreements or similar arrangements
entered into by such Person providing for protection against fluctuations in interest rates or the exchange of nominal interest obligations, either generally or under specific contingencies. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Investment</I></FONT><FONT SIZE=2>": as defined in subsection 8.10. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Issuing Bank</I></FONT><FONT SIZE=2>": (a)&nbsp;with respect to Letters of Credit (other than Continuing Letters of Credit), Chase, any of its Affiliates or
any other Lender (designated as an Issuing Bank in an Issuing Bank Agreement executed by such Lender, the Borrower and the Administrative Agent), in each case in its capacity as issuer of any Letter
of Credit and (b)&nbsp;with respect to Continuing Letters of Credit, the Lender which issued such Continuing Letter of Credit under the Existing Credit Agreement. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>10</FONT></P>

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<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT SIZE=2><I>Issuing Bank Agreement</I></FONT><FONT SIZE=2>": an agreement, substantially in the form of </FONT><FONT SIZE=2><I>Exhibit&nbsp;J</I></FONT><FONT SIZE=2>,
executed by a Lender, the Borrower, and the Administrative Agent (which consent shall not be unreasonably withheld) pursuant to which such Lender agrees to become an Issuing Bank hereunder. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Joint Venture</I></FONT><FONT SIZE=2>": (i)&nbsp;any joint venture arrangement, including interests in business units, formed after the Closing Date to
engage in a Related Business in which the Borrower or any of its Subsidiaries owns an equity interest not in excess of 50% of the equity interest of all joint venturers thereof, and which is not
controlled by or under common control with the Borrower or such Subsidiary, whether such joint venture is structured as a corporation, partnership, trust, limited liability company or any other Person
or (ii)&nbsp;if clause&nbsp;(i) above is not applicable, any joint venture arrangement, including interests in business units, formed after the Closing Date, that by the terms of such joint
venture's organizational documents may not be a Subsidiary Guarantor hereunder. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>L/C Commitment"</I></FONT><FONT SIZE=2>: $35,000,000. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>L/C Fee Payment Date</I></FONT><FONT SIZE=2>": the last day of each March, June, September and December. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>L/C Fee Percentage</I></FONT><FONT SIZE=2>": as defined in subsection 3.12(b). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>L/C Obligations</I></FONT><FONT SIZE=2>": at any time, an amount equal to the sum of (a)&nbsp;the aggregate then undrawn and unexpired amount of the then
outstanding Letters of Credit and (b)&nbsp;the aggregate amount of then unpaid Reimbursement Obligations. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>L/C Participants"</I></FONT><FONT SIZE=2>: collectively, all the Revolving Credit Lenders. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Lenders</I></FONT><FONT SIZE=2>": as defined in the Preamble to this Agreement; </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2>, that unless the
context otherwise requires, each reference herein to the Lenders shall be deemed to include any Conduit Lender. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Lender Affiliate</I></FONT><FONT SIZE=2>": (a)&nbsp;any Affiliate of any Lender, (b)&nbsp;any Person that is administered or managed by any Lender or any
Affiliate of any Lender and that is engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its business and
(c)&nbsp;with respect to any Lender which is a fund that invests in commercial loans and similar extensions of credit, any other fund that invests in commercial loans and similar extensions of
credit and is managed or advised by the same investment advisor as such Lender or by an Affiliate of such Lender or investment advisor. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Letters of Credit</I></FONT><FONT SIZE=2>": collectively, Commercial Letters of Credit and Standby Letters of Credit. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Leverage Ratio Level</I></FONT><FONT SIZE=2>": as to the Borrower, the existence of Leverage Ratio Level I, Leverage Ratio Level II, Leverage Ratio Level III,
Leverage Ratio Level IV, or Leverage Ratio Level V, as the case may be. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Leverage Ratio Level I</I></FONT><FONT SIZE=2>": as to the Borrower, shall exist on an Adjustment Date if the Consolidated Leverage Ratio for the period of
four consecutive fiscal quarters ending on the last day of the period covered by the financial statements relating to such Adjustment Date is equal to or greater than 3.00 to 1.00. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Leverage Ratio Level II</I></FONT><FONT SIZE=2>": as to the Borrower, shall exist on an Adjustment Date if the Consolidated Leverage Ratio for the period of
four consecutive fiscal quarters ending on the last day of the period covered by the financial statements relating to such Adjustment Date is less than 3.00 to 1.0, but greater than or equal to 2.50
to 1.0. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Leverage Ratio Level III</I></FONT><FONT SIZE=2>": as to the Borrower, shall exist on an Adjustment Date if the Consolidated Leverage Ratio for the period of
four consecutive fiscal quarters ending on the last day of the period covered by the financial statements relating to such Adjustment Date is less than 2.50 to 1.0, but greater than or equal to 1.50
to 1.0. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>11</FONT></P>

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<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT SIZE=2><I>Leverage Ratio Level IV</I></FONT><FONT SIZE=2>": as to the Borrower, shall exist on an Adjustment Date if the Consolidated Leverage Ratio for the period of
four consecutive fiscal quarters ending on the last day of the period
covered by the financial statements relating to such Adjustment Date is less than 1.50 to 1.0, but greater than or equal to 1.00 to 1.0. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Leverage Ratio Level V</I></FONT><FONT SIZE=2>": as to the Borrower, shall exist on an Adjustment Date if the Consolidated Leverage Ratio for the period of
four consecutive fiscal quarters ending on the last day of the period covered by the financial statements relating to such Adjustment Date is less than 1.00 to 1.0. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Lien</I></FONT><FONT SIZE=2>": any mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or other), charge or other
security interest or any preference, priority or other security agreement or preferential arrangement of any kind or nature whatsoever (including, without limitation, any conditional sale or other
title retention agreement and any Financing Lease having substantially the same economic effect as any of the foregoing), except for the filing of financing statements in connection with obligations
under leases other than Financing Leases incurred by the Company or its Subsidiaries to the extent that such financing statements relate to the property subject to such lease obligations. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Loan</I></FONT><FONT SIZE=2>": any Term Loan, Revolving Credit Loan or Swing Line Loan. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Loan Documents</I></FONT><FONT SIZE=2>": this Agreement, any Notes, the Guarantees, the Applications and the Security Documents. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Loan Participant</I></FONT><FONT SIZE=2>": as defined in subsection 13.6(b). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Loan Parties</I></FONT><FONT SIZE=2>": the Borrower, Holdings and each Subsidiary of the Borrower that is a party to a Loan Document. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Managing Agents</I></FONT><FONT SIZE=2>": as defined in the Preamble to this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Material Adverse Effect</I></FONT><FONT SIZE=2>": a material adverse effect on (a)&nbsp;the business, operations, property or condition (financial or
otherwise) of the Borrower and its Subsidiaries taken as a whole or (b)&nbsp;the validity or enforceability of this Agreement or any of the other Loan Documents or the rights or remedies of the
Administrative Agent or the Lenders hereunder or thereunder. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Material Subsidiary</I></FONT><FONT SIZE=2>": any Subsidiary (a)&nbsp;the Consolidated Total Assets of which exceed 5% of the Consolidated Total Assets of
the Borrower and its consolidated Subsidiaries as of the end of the most recently completed fiscal year or (b)&nbsp;the Consolidated Net Revenue of which exceeds 5% of the
Consolidated Net Revenue of the Borrower and its consolidated Subsidiaries as of the end of the most recently completed fiscal year. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Merger"</I></FONT><FONT SIZE=2>: the merger of the Borrower with and into Holdings, with Holdings as the surviving corporation. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Mexican Subsidiary</I></FONT><FONT SIZE=2>": Dal-Tile of Mexico, S.A. de C.V. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Moody's</I></FONT><FONT SIZE=2>": Moody's Investors Service,&nbsp;Inc., and its successors. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Mortgaged Properties</I></FONT><FONT SIZE=2>": the real properties listed on </FONT><FONT SIZE=2><I>Schedule&nbsp;1.1(b)</I></FONT><FONT SIZE=2>, as to
which the Administrative Agent for the benefit of the Lenders has been (or will be) granted a Lien pursuant to the Mortgages. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Mortgages</I></FONT><FONT SIZE=2>": the collective reference to the mortgages, deeds of trust and other similar documents executed and delivered from time to
time by the Borrower and the Guarantors in favor of the Administrative Agent pursuant to this Agreement, substantially in the form of </FONT><FONT SIZE=2><I>Exhibit&nbsp;K</I></FONT><FONT SIZE=2>
or, if such Exhibit is not appropriate under applicable law in the jurisdiction in which the relevant real property is located, in such other form as shall be reasonably satisfactory to the Borrower
and the Administrative Agent, as each of the same may be amended, restated, supplemented or otherwise modified from time to time. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>12</FONT></P>

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<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT SIZE=2><I>Multiemployer</I></FONT><FONT SIZE=2> Plan": a Plan which is a multiemployer plan as defined in Section&nbsp;4001(a)(3) of ERISA. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Net Proceeds</I></FONT><FONT SIZE=2>": as to any Person, (a)&nbsp;with respect to any Asset Sale by such Person, the cash proceeds (including any cash
payments received by way of deferred payment of principal pursuant to a note or installment receivable or purchase price adjustment receivable or otherwise, but only as and when received) of such
Asset Sale net of (i)&nbsp;attorneys' fees, accountants' fees, investment banking fees, survey costs, title insurance premiums, and related search and recording charges, transfer taxes, deed or
mortgage recording taxes, other customary expenses, amounts required to be applied to the repayment of Indebtedness secured by a Lien expressly permitted hereunder on any asset which is the subject of
such Asset Sale (other than any Lien in favor of the Administrative Agent for the benefit of the Lenders) or to the satisfaction of other amounts owing under Contractual Obligations which become
payable as a result of such Asset Sale and were not incurred in contemplation thereof and brokerage, consultant and other customary fees and expenses actually incurred in connection therewith,
(ii)&nbsp;taxes attributable thereto and, in the case of any Asset Sale in a foreign jurisdiction, any taxes reasonably
attributable to the repatriation of the proceeds of such Asset Sale reasonably estimated by such Person to be payable, and (iii)&nbsp;the aggregate amount of reserves required in the reasonable
judgment of such Person to be maintained on the books of such Person in order to pay contingent obligations in respect of agreements entered into in connection with such Asset Sale, </FONT> <FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2>, that
amounts deducted from aggregate proceeds pursuant to this clause&nbsp;(iii) and not actually paid by such Person in liquidation of such
contingent obligations shall be deemed to be Net Proceeds at such time as such contingent obligations shall cease to be obligations of such Person or to the extent such amounts are no longer required
in the reasonable judgment of such Person as a reserve with respect to such contingent obligations, and (b)&nbsp;with respect to any Casualty Event, the aggregate amount of proceeds of insurance,
condemnation awards and other compensation received by the Borrower and its Subsidiaries in respect of such Casualty Event net of (i)&nbsp;reasonable expenses incurred by the Borrower and its
Subsidiaries in connection therewith, (ii)&nbsp;amounts required to be applied to the repayment of Indebtedness secured by a Lien expressly permitted hereunder on any property which is the subject
of such Casualty Event (other than any Lien in favor of the Administrative Agent for the benefit of the Lenders) and (iii)&nbsp;amounts applied or that such Person intends with reasonable promptness
and diligence to apply to repair or replace the property subject to the Casualty Event, </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that amounts deducted from aggregate proceeds pursuant
to this clause&nbsp;(iii) shall be Net Proceeds at such time as such proceeds are, in such Person's good faith judgment, no longer required for such repair or replacement and (c)&nbsp;with respect
to any Subordinated Debt, the cash proceeds (including Cash Equivalents) received by the Borrower or any of its Subsidiaries from the issuance or incurrence of such Subordinated Debt net of all
investment banking fees, legal fees, accountants fees, underwriting discounts and commissions and other customary fees and expenses, actually incurred by the Borrower or any of its Subsidiaries and
documented in connection therewith. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>New Lending Office</I></FONT><FONT SIZE=2>": as defined in subsection 4.10(b)(i)(A). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Non-Excluded Taxes</I></FONT><FONT SIZE=2>": as defined in subsection 4.10(a). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Non-Recourse Indebtedness</I></FONT><FONT SIZE=2>": Indebtedness of the Borrower or any of its Subsidiaries in respect of which the holders of
such Indebtedness agree in writing that they will look solely to the property securing such Indebtedness for payment in full of the principal thereof and interest thereon and outstanding fees and
costs associated therewith or are not legally entitled to enforce such Indebtedness against the Borrower or any of its Subsidiaries. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Notes</I></FONT><FONT SIZE=2>": collectively, the Swing Line Note, Revolving Credit Notes, and Term Notes, if any. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Obligations</I></FONT><FONT SIZE=2>": the unpaid principal of and interest on the Loans and the Reimbursement Obligations and all other obligations and
liabilities of the Borrower to the Administrative Agent and the Lenders (or, in the case of Specified Hedge Agreements, any Lender Affiliate) (including, without limitation, interest accruing at the
then applicable rate provided in this Agreement after the maturity of </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>13</FONT></P>

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<P><FONT SIZE=2>
the Loans and interest accruing at the then applicable rate provided in this Agreement after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like
proceeding, relating to the Borrower, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding), whether direct or indirect, absolute or
contingent, due or to become due, or now existing or hereafter incurred, which may arise under, out of, or in connection with, this Agreement, the other Loan Documents, any Specified Hedge Agreement
or any other document made, delivered or given in connection herewith or therewith, in each case whether on account of principal, interest, reimbursement obligations, fees, indemnities, costs,
expenses or otherwise (including, without limitation, all fees and disbursements of counsel to the Administrative Agent or to the Lenders that are required to be paid by the Borrower pursuant to the
terms of this Agreement, any other Loan Document or any Specified Hedge Agreement). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Obsolete Property</I></FONT><FONT SIZE=2>": any property of the Borrower or any of its Subsidiaries which is obsolete, outdated or worn out or the useful life
of which has ended, in each case in the good faith determination of the Borrower or any applicable Subsidiary. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>"Original Closing Date</I></FONT><FONT SIZE=2>": August&nbsp;14, 1996. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>PBGC</I></FONT><FONT SIZE=2>": the Pension Benefit Guaranty Corporation established pursuant to Subtitle A of Title IV of ERISA and any Governmental Authority
which succeeds to the powers and functions thereof. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Permitted Securitization Transaction</I></FONT><FONT SIZE=2>": a transaction or series of related transactions pursuant to which a Receivables Subsidiary
incurs obligations or issues interests, the proceeds of which are used to finance Receivables of the Borrower and its Subsidiaries on terms and conditions satisfactory to the Administrative Agent. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Person</I></FONT><FONT SIZE=2>": an individual, partnership, corporation, business trust, joint stock company, limited liability company, trust,
unincorporated association, joint venture, Governmental Authority or other entity of whatever nature. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Plan</I></FONT><FONT SIZE=2>": at a particular time, any employee benefit plan which is covered by ERISA and in respect of which the Borrower or a Commonly
Controlled Entity is (or, if such plan were terminated at such time, would under Section&nbsp;4069 of ERISA be deemed to be) an "employer" as defined in Section&nbsp;3(5) of ERISA. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Pledge Agreements</I></FONT><FONT SIZE=2>": collectively, the Borrower Pledge Agreements and the Holdings Pledge Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Prepayment Account</I></FONT><FONT SIZE=2>": as defined in subsection 4.1(d). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Primary Obligation</I></FONT><FONT SIZE=2>": as defined in the definition of "Guarantee Obligation" contained in this subsection 1.1. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Properties</I></FONT><FONT SIZE=2>": as defined in subsection 5.17. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Receivables</I></FONT><FONT SIZE=2>": all accounts (as defined in the Uniform Commercial Code in effect in the State of New York on the date hereof) and
accounts receivable of the Borrower or any of its Subsidiaries (including any thereof constituting or evidenced by chattel paper, instruments or general intangibles), and all proceeds thereof and
rights (contractual and other) and collateral related thereto. Receivables shall include any and all Securitization Receivables. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Receivables Obligor"</I></FONT><FONT SIZE=2>: a Person obligated to make payments pursuant to a Securitization Contract. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Receivables Subsidiary</I></FONT><FONT SIZE=2>": any special purpose, bankruptcy-remote Subsidiary of the Borrower that acquires, on a revolving basis,
Receivables generated by the Borrower or any of its Subsidiaries and that engages in no operations or activities other than those related to Permitted Securitization Transactions. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Register</I></FONT><FONT SIZE=2>": as defined in subsection 13.6(d). </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>14</FONT></P>

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<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT SIZE=2><I>Regulation&nbsp;U</I></FONT><FONT SIZE=2>": Regulation&nbsp;U of the Board of Governors as in effect from time to time. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Reimbursement Obligation</I></FONT><FONT SIZE=2>": the obligation of the Borrower to reimburse the Issuing Bank pursuant to subsection 3.14(a) for amounts
drawn under Letters of Credit. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Related Business</I></FONT><FONT SIZE=2>": any business in which the Borrower or any of its Subsidiaries is engaged on the date hereof or which is reasonably
related thereto. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Related Security</I></FONT><FONT SIZE=2>": with respect to each Securitization Receivable, (i)&nbsp;all of the Seller's interest in any merchandise
(including returned merchandise) the sale of which gives rise to such Securitization Receivable; (ii)&nbsp;all security interests or liens and property subject thereto from time to time purporting
to secure payment of such Securitization Receivable, whether pursuant to a Securitization Contract or otherwise, together with all financing statements signed by a Receivables Obligor describing any
collateral securing such Securitization Receivable; (iii)&nbsp;all guaranties, insurance and other agreements or arrangements of whatever character from time to time supporting or securing payment
of such Securitization Receivable whether pursuant to a Securitization Contract or otherwise; and (iv)&nbsp;each Securitization Contract and all other books, records and other information
(including, without limitation, computer programs, tapes, discs, punch cards, data processing software and similar property and rights) but solely to the extent relating to such Securitization
Receivable and the related Receivables Obligor. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Reorganization</I></FONT><FONT SIZE=2>": with respect to any Multiemployer Plan, the condition that such plan is in reorganization within the meaning of
Section&nbsp;4241 of ERISA. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Replacement Asset</I></FONT><FONT SIZE=2>": any property acquired by the Borrower or any of its Subsidiaries subsequent to the Closing Date which replaces
Obsolete Property of the same type and utility as the property acquired. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Reportable Event</I></FONT><FONT SIZE=2>": any of the events set forth in Section&nbsp;4043(c) of ERISA, other than those events as to which the thirty day
notice period is waived under subsections .13, .14, .16, .18, .19 or .20 of PBGC Reg. &sect; 2615. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Required Lenders</I></FONT><FONT SIZE=2>": at any time, Lenders the Commitment Percentages of which aggregate more than 50%. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Required Revolving Credit</I></FONT><FONT SIZE=2> Lenders": at any time, Revolving Credit Lenders the Revolving Credit Commitment Percentages of which
aggregate more than 50%. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Required Term Loan</I></FONT><FONT SIZE=2> Lenders": at any time, Term Loan Lenders the Term Loan Commitment Percentages of which aggregate more than 50%. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Requirement of Law</I></FONT><FONT SIZE=2>": as to any Person, the Certificate of Incorporation and By-Laws or other organizational or governing
documents of such Person, and any law, treaty, rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person
or any of its property or to which such Person or any of its property is subject. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Responsible Officer</I></FONT><FONT SIZE=2>": as to any Person, the chief executive officer and the president of such Person or, with respect to financial
matters, the chief financial officer of such Person or, in either case, such other executive officers as may be designated from time to time by such Person in writing to the Administrative Agent. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Restricted Payments</I></FONT><FONT SIZE=2>": as defined in subsection 8.8. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Revolving Credit Commitment</I></FONT><FONT SIZE=2>": with respect to any Lender, its obligation to make Revolving Credit Loans and/or issue or participate in
Letters of Credit issued on behalf of the Borrower and/or make or participate in Swing Line Loans made to the Borrower in an aggregate amount not to exceed the amount set forth opposite such Lender's
name on </FONT><FONT SIZE=2><I>Schedule&nbsp;1.1(a)</I></FONT><FONT SIZE=2> under the heading "Revolving </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>15</FONT></P>

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<P><FONT SIZE=2>
Credit Commitment", as such amount may be reduced from time to time pursuant to this Agreement or as such amount may be adjusted from time to time pursuant to subsection 13.6; collectively, as to all
such Lenders, the "</FONT><FONT SIZE=2><I>Revolving Credit Commitments</I></FONT><FONT SIZE=2>". The aggregate Revolving Credit Commitments initially shall be $200,000,000. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Revolving Credit Commitment Percentage</I></FONT><FONT SIZE=2>": as to any Revolving Credit Lender (a)&nbsp;at any time prior to the termination of the
Revolving Credit Commitments, the percentage of the Revolving Credit Commitments then constituted by such Revolving Credit Lender's Revolving Credit Commitment and (b)&nbsp;at any time after the
termination of the Revolving Credit Commitments, the percentage which (i)&nbsp;the sum of (x)&nbsp;such Revolving Credit Lender's Revolving Credit Loans then outstanding </FONT> <FONT SIZE=2><I>plus</I></FONT><FONT SIZE=2> (y)&nbsp;the product of
such Revolving Credit Lender's Revolving Credit Commitment Percentage immediately prior to the termination of the
Revolving Credit Commitments (after giving effect to any permitted assignment pursuant to subsection 13.6) times the sum of (I)&nbsp;the L/C Obligations then outstanding and (II)&nbsp;the Swing
Line Loans then outstanding then constitutes of (ii)&nbsp;the sum of (x)&nbsp;the aggregate principal amount of Revolving Credit Loans of all the Revolving Credit Lenders then outstanding </FONT> <FONT SIZE=2><I>plus</I></FONT><FONT SIZE=2>
(y)&nbsp;the aggregate L/C Obligations then outstanding </FONT><FONT SIZE=2><I>plus</I></FONT><FONT SIZE=2> (z)&nbsp;the aggregate principal
amount of Swing Line Loans then outstanding. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Revolving Credit Commitment Period</I></FONT><FONT SIZE=2>": the period from and including the Closing Date to but not including the Revolving Credit
Termination Date or such earlier date on which the Revolving Credit Commitments shall terminate as provided herein. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Revolving Credit Lender</I></FONT><FONT SIZE=2>": any Lender with an unused Revolving Credit Commitment hereunder and/or any Revolving Credit Loans
outstanding hereunder; collectively, the "</FONT><FONT SIZE=2><I>Revolving Credit Lenders</I></FONT><FONT SIZE=2>". </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Revolving Credit Loans</I></FONT><FONT SIZE=2>": as defined in subsection 3.1(a). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Revolving Credit Note</I></FONT><FONT SIZE=2>": as defined in subsection 3.5(e). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Revolving Credit Termination Date</I></FONT><FONT SIZE=2>": October&nbsp;26, 2006. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>RISA</I></FONT><FONT SIZE=2>": Recubrimientos Interceramic, S.A. de C.V., a Mexican corporation. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>S&amp;P</I></FONT><FONT SIZE=2>": Standard&nbsp;&amp; Poor's Ratings Group, a division of The McGraw-Hill Companies,&nbsp;Inc., and its successors. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Sale/Leaseback Transaction</I></FONT><FONT SIZE=2>": as defined in subsection 8.12 </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>SEC</I></FONT><FONT SIZE=2>": the Securities and Exchange Commission or any Governmental Authority which succeeds to the powers and functions thereof. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Securitization Contract</I></FONT><FONT SIZE=2>": an agreement between the Seller and a Receivables Obligor, substantially in the form of one of the written
contracts or (in the case of any open account agreement) one of the invoices approved by DTSC,&nbsp;Inc. (or its successor or assignee), pursuant to or under which such Receivables Obligor shall be
obligated to pay for merchandise or services from time to time. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Securitization Receivables</I></FONT><FONT SIZE=2>": all existing and hereafter arising accounts (as defined in the Uniform Commercial Code in effect in the
State of New York on the date hereof), payment intangibles and other indebtedness of any Receivables Obligor (other than a Receivables Obligor which is an affiliate of Dal-Tile
International&nbsp;Inc. or the Seller) resulting from the provision of services or the sale of merchandise or services by the Seller or any other Subsidiary of the Borrower to such Receivables
Obligor pursuant to a Securitization Contract, including the right to payment of any interest or finance charges and other obligations of such Receivables Obligor with respect thereto; </FONT> <FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2>,
</FONT><FONT SIZE=2><I>however</I></FONT><FONT SIZE=2>, that any such indebtedness created by the Corporate Strategic Business Unit or the
R&amp;M Strategic Business Unit of the Seller shall not be included in Securitization Receivables. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Security Agreements</I></FONT><FONT SIZE=2>": the collective reference to the Borrower Security Agreement and the Collateral Agreement. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>16</FONT></P>

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<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT SIZE=2><I>Security Documents</I></FONT><FONT SIZE=2>": the collective reference to the Mortgages, the Security Agreements, the Pledge Agreements and all other security
documents hereafter delivered to the Administrative Agent granting a Lien on any asset or assets of any Person to secure the obligations and liabilities of the Borrower hereunder and under any of the
other Loan Documents or to secure any guarantee of any such obligations and liabilities. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Seller</I></FONT><FONT SIZE=2>": Dal-Tile Corporation, a Pennsylvania corporation and a wholly owned Subsidiary of the Borrower. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Significant Subsidiaries</I></FONT><FONT SIZE=2>": at any date of determination, any Subsidiary the Consolidated Assets of which exceed $1,000,000 at such
date of determination. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Single Employer Plan</I></FONT><FONT SIZE=2>": any Plan which is covered by Title IV of ERISA, but which is not a Multiemployer Plan. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Solvent</I></FONT><FONT SIZE=2>": when used with respect to any Person, means that, as of any date of determination, (a)&nbsp;the amount of the "present
fair saleable value" of the assets of such Person will, as of such date, exceed the amount that will be required to pay all "liabilities of such Person, contingent or otherwise", as of such date (as
such quoted terms are determined in accordance with applicable federal and state laws governing determinations of the insolvency of debtors) as such debts become absolute and matured, (b)&nbsp;such
Person will not have, as of such date, an unreasonably small amount of capital with which to conduct its business, and (c)&nbsp;such Person will be able to pay its debts as they mature, taking into
account the timing of and amounts of cash to be received by such Person and the timing of and amounts of cash to be payable on or in respect of indebtedness of such Person; in each case after giving
effect to (A)&nbsp;as of the Closing Date, the making of the extensions of credit to be made on the Closing Date and to the application of the proceeds of such extensions of credit and (B)&nbsp;on
any date after the Closing Date, the making of any extension of credit to be made on such date, and to the application of the proceeds of such extension of credit. For purposes of this definition,
(i)&nbsp;"debt" means liability on a "claim", and (ii)&nbsp;"claim" means any (x)&nbsp;right to payment, whether or not such a right is reduced to judgment, liquidated, unliquidated, fixed,
contingent, matured, unmatured, disputed, undisputed, legal equitable, secured or unsecured or (y)&nbsp;right to an equitable remedy for breach of performance if such breach gives rise to a right to
payment, whether or not such right to an equitable remedy is reduced to judgment, fixed, contingent, matured or unmatured, disputed, undisputed, secured or unsecured. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Specified Hedge Agreements</I></FONT><FONT SIZE=2>": collectively, any Currency Rate Protection Agreements, Interest Rate Protection Agreements, production
hedge agreements and any other hedge agreements not entered for
speculative purposes (hedge agreements existing on the Closing Date will be deemed not to be speculative), in each case, entered into by the Borrower and any Lender or Lender Affiliate. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Standby Letter of Credit</I></FONT><FONT SIZE=2>": as defined in subsection 3.10(b)(i)(1). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Subordinated Debt</I></FONT><FONT SIZE=2>": any unsecured Indebtedness of the Borrower: no part of the principal of which is required to be paid (whether by
way of mandatory sinking fund, mandatory redemption, mandatory prepayment or otherwise) prior to October&nbsp;31, 2007; the payment of the principal of and interest on which and other obligations of
the Borrower in respect thereof are subordinated to the prior payment in full of the principal of and interest (including post-filing or post-petition interest, whether or not
a claim for post-filing or post-petition interest is allowed in any bankruptcy, insolvency, reorganization or like proceeding) on the Loans and all other obligations (including
the Obligations) and liabilities of the Borrower to the Administrative Agent and the Lenders (and, in the case of Specified Hedge Agreements, the Lender Affiliates) hereunder on terms and conditions
satisfactory to the Required Lenders; and all other terms and conditions of which are reasonably satisfactory in form and substance to the Required Lenders. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Subsidiaries' Guarantee</I></FONT><FONT SIZE=2>": the Amended and Restated Subsidiaries' Guarantee, dated as of August&nbsp;14, 1996, as amended and
restated as of the date hereof, executed and delivered by each </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>17</FONT></P>

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<P><FONT SIZE=2>
Subsidiary Guarantor in favor of the Administrative Agent, substantially in the form of </FONT><FONT SIZE=2><I>Exhibit&nbsp;A-1</I></FONT><FONT SIZE=2>, as the same may be amended,
restated, amended and restated, supplemented or otherwise modified from time to time. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Subsidiary</I></FONT><FONT SIZE=2>": as to any Person, a corporation, partnership or other entity of which shares of stock or other ownership interests having
ordinary voting power (other than stock or such other ownership interests having such power only by reason of the happening of a contingency) to elect a majority of the board of directors or other
managers of such corporation, partnership or other entity are at the time owned, or the management of which is otherwise controlled, directly or indirectly through one or more intermediaries, or both,
by such Person. Unless otherwise qualified, all references to a "Subsidiary" or to "Subsidiaries" in this Agreement shall refer to a Subsidiary or Subsidiaries of the Borrower or Holdings, as the
context may require. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Subsidiary Guarantor</I></FONT><FONT SIZE=2>": each Subsidiary of the Borrower set forth on </FONT> <FONT SIZE=2><I>Schedule&nbsp;5.15</I></FONT><FONT SIZE=2> under the heading "Initial Subsidiary Guarantors", together with each other
Subsidiary of the Borrower other than (i)&nbsp;any
Foreign Subsidiary, (ii)&nbsp;any Joint Venture and (iii)&nbsp;any Receivables Subsidiary. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Swing Line Commitment</I></FONT><FONT SIZE=2>": $25,000,000. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Swing Line Lender</I></FONT><FONT SIZE=2>": as defined in subsection 3.6. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Swing Line Loan Participation Certificate</I></FONT><FONT SIZE=2>": a certificate substantially in the form of Exhibit&nbsp;B. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Swing Line Loans</I></FONT><FONT SIZE=2>": as defined in subsection 3.6. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Swing Line Note</I></FONT><FONT SIZE=2>": as defined in subsection 3.7(e). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Swing Line Participation Amount</I></FONT><FONT SIZE=2>": as defined in subsection 3.9(b). </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Syndication Agent</I></FONT><FONT SIZE=2>": as defined in the Preamble to this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Term Loan</I></FONT><FONT SIZE=2>": as defined in subsection 2.1. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Term Loan Commitment</I></FONT><FONT SIZE=2>": as to any Lender, its obligation to make a Term Loan to the Borrower in an amount equal to the amount set forth
opposite such Lender's name in </FONT><FONT SIZE=2><I>Schedule&nbsp;1.1(a)</I></FONT><FONT SIZE=2> under the heading "Term Loan Commitment", as such amount may be reduced from time to time pursuant
to this Agreement or as such amount may be adjusted from time to time pursuant to subsection 13.6; collectively, as to all such Lenders, the "</FONT><FONT SIZE=2><I>Term Loan
Commitments</I></FONT><FONT SIZE=2>". The initial aggregate Term Loan Commitments shall be $125,000,000. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Term Loan Commitment Percentage</I></FONT><FONT SIZE=2>": as to any Term Loan Lender at any time, the percentage of the Term Loan Commitments then constituted
by such Term Loan Lender's Term Loan Commitment (or, after the Term Loans are made, the percentage of the aggregate Term Loans then constituted by such Term Loan Lender's Term Loan). </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Term Loan Lender</I></FONT><FONT SIZE=2>": any Lender with an unused Term Loan Commitment hereunder and/or any Term Loans outstanding hereunder; collectively,
the "</FONT><FONT SIZE=2><I>Term Loan Lenders</I></FONT><FONT SIZE=2>". </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Term Note</I></FONT><FONT SIZE=2>": as defined in subsection 2.4(d). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Tranche</I></FONT><FONT SIZE=2>": collectively, Eurodollar Loans the then current Interest Periods with respect to all of which begin on the same date and end
on the same later date (whether or not such Loans shall originally have been made on the same day); Tranches may be identified as "</FONT><FONT SIZE=2><I>Eurodollar Tranches</I></FONT><FONT SIZE=2>". </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>"Transferee</I></FONT><FONT SIZE=2>": as defined in subsection 13.6(f). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Type</I></FONT><FONT SIZE=2>": as to any Loan, its nature as an ABR Loan or a Eurodollar Loan. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>UCC Filing Collateral</I></FONT><FONT SIZE=2>": Collateral (other than fixtures) as to which filing financing statements under the uniform commercial code of
the applicable jurisdiction is an appropriate method of perfection of a security interest in such Collateral. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>18</FONT></P>

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<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT SIZE=2><I>Uniform Customs</I></FONT><FONT SIZE=2>": the Uniform Customs and Practice for Documentary Credits (1993 Revision), International Chamber of Commerce
Publication No.&nbsp;500, as the same may be amended from time to time. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Voting Stock</I></FONT><FONT SIZE=2>": Capital Stock, the holders of which are ordinarily, in the absence of contingencies, entitled to elect a majority of
the corporate directors (in the case of a corporation) or to appoint Persons performing similar functions (in the case of entities which are not corporations). </FONT></P>


<P><FONT SIZE=2><A
NAME="le2063_1.2_other_definitional___le202154"> </A>
<A NAME="toc_le2063_4"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;1.2</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Other Definitional Provisions; Financial Calculations. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a)&nbsp;Unless otherwise specified therein, all terms defined in this Agreement shall have
the defined meanings when used in the other Loan Documents or any
certificate or other document made or delivered pursuant hereto or thereto. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;As
used herein and in any Notes, and any certificate or other document made or delivered pursuant hereto, accounting terms relating to Holdings, the Borrower and
its Subsidiaries not defined in subsection 1.1 and accounting terms partly defined in subsection 1.1, to the extent not defined, shall have the respective meanings given to them under GAAP. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The
words "hereof", "herein" and "hereunder" and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any
particular provision of this Agreement, and Section, subsection, Schedule and Exhibit references are to this Agreement unless otherwise specified. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The
meanings given to terms defined herein shall be equally applicable to both the singular and plural forms of such terms. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Notwithstanding
anything to the contrary herein, for purposes of making all calculations in connection with the covenants contained in Section&nbsp;9, all
accounting terms used herein shall be interpreted and all accounting determinations hereunder shall be made in accordance with GAAP consistently applied as in effect on the date of this Agreement. In
the event of any material difference at any time between GAAP in effect on the date of this Agreement and GAAP from time to time in effect, the certificate of a Responsible Officer required pursuant
to subsection 7.2(b)(ii)&nbsp;shall include a reconciliation of the calculations required thereby with the financial statements being delivered with such certificate. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>19</FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="lg2063_section_2._amount_and_terms_of_term_loan_commitments"> </A>
<A NAME="toc_lg2063_1"> </A>
<BR></FONT><FONT SIZE=2>SECTION 2. AMOUNT AND TERMS OF TERM LOAN COMMITMENTS    <BR></FONT></P>

<P><FONT SIZE=2><A
NAME="lg2063_2.1_term_loans."> </A>
<A NAME="toc_lg2063_2"> </A>
   &nbsp;&nbsp;&nbsp;&nbsp;2.1</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Term Loans. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Subject to the terms and conditions hereof, each Term Loan Lender severally and not jointly agrees to make a term loan (a "</FONT><FONT
   SIZE=2><I>Term
Loan</I></FONT><FONT SIZE=2>") to the Borrower on the Closing Date in an amount equal to the Term Loan Commitment of such Term Loan Lender. The Term Loans may from time to time be
(a)&nbsp;Eurodollar Loans, (b)&nbsp;ABR Loans or (c)&nbsp;a combination thereof, as determined by the Borrower and notified to the Administrative Agent in accordance with subsections 2.2 and
4.2. </FONT></P>

<P><FONT SIZE=2><A
NAME="lg2063_2.2_procedure_for_term_loan_borrowing."> </A>
<A NAME="toc_lg2063_3"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;2.2</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Procedure for Term Loan Borrowing. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The Borrower hereby requests a Term Loan borrowing on the Closing Date in an amount equal to the aggregate
amount of the Term Loan Commitments of the Term Loan
Lenders. The Borrower shall give the Administrative Agent irrevocable notice (which notice must be received by the Administrative Agent prior to 12:00 Noon, New York City time, three Business Days
prior to the Closing Date), if all or any part of the Term Loans are to be initially Eurodollar Loans, specifying (a)&nbsp;the amount of Term Loans which are initially to be Eurodollar Loans and
(b)&nbsp;the respective amounts thereof and the lengths of the initial Interest Periods therefor. To the extent that the Borrower does not deliver a notice pursuant to the immediately preceding
sentence, the Term Loans shall initially be ABR Loans. Upon receipt of any such notice from the Borrower, the Administrative Agent shall promptly notify each Term Loan Lender thereof. Each Term Loan
Lender will make the amount of its pro rata share of the Term Loans available to the Administrative Agent for the account of the Borrower at the office of the Administrative Agent specified in
subsection 13.2 prior to 11:00&nbsp;A.M., New York City time, on the Closing Date in Dollars and in funds immediately available to the Administrative Agent. The Administrative Agent shall credit the
account of the Borrower by 12:00 Noon, New York City time, on the Closing Date on the books of such office of the Administrative Agent or such other account as may be specified by the Borrower with
the aggregate of the amounts made available to the Administrative Agent by the Term Loan Lenders and in like funds as received by the Administrative Agent. </FONT></P>

<P><FONT SIZE=2><A
NAME="lg2063_2.3_repayment_of_term_loans."> </A>
<A NAME="toc_lg2063_4"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;2.3</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Repayment of Term Loans. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The Borrower hereby unconditionally promises to pay to the Administrative Agent for the account of the Term Loan Lenders
the principal amount of the Term Loans
made by such Term Loan Lenders in twenty consecutive quarterly installments, payable as </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>20</FONT></P>

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<P><FONT SIZE=2>
follows (or on such earlier date on which the Term Loans become due and payable pursuant to Section&nbsp;11): </FONT></P>

<!-- User-specified TAGGED TABLE -->
<DIV ALIGN="CENTER"><TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="66%" ALIGN="CENTER"><FONT SIZE=1><B>Year<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="4%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="30%" ALIGN="CENTER"><FONT SIZE=1><B>Amount</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="66%"><FONT SIZE=2>January 31, 2002</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="30%" ALIGN="RIGHT"><FONT SIZE=2>3,750,000</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="66%"><FONT SIZE=2>April 30, 2002</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="30%" ALIGN="RIGHT"><FONT SIZE=2>3,750,000</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="66%"><FONT SIZE=2>July 31, 2002</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="30%" ALIGN="RIGHT"><FONT SIZE=2>3,750,000</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="66%"><FONT SIZE=2>October 31, 2002</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="30%" ALIGN="RIGHT"><FONT SIZE=2>3,750,000</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="66%"><FONT SIZE=2><BR>
January 31, 2003</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="30%" ALIGN="RIGHT"><FONT SIZE=2><BR>
3,750,000</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="66%"><FONT SIZE=2>April 30, 2003</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="30%" ALIGN="RIGHT"><FONT SIZE=2>3,750,000</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="66%"><FONT SIZE=2>July 31, 2003</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="30%" ALIGN="RIGHT"><FONT SIZE=2>3,750,000</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="66%"><FONT SIZE=2>October 31, 2003</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="30%" ALIGN="RIGHT"><FONT SIZE=2>3,750,000</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="66%"><FONT SIZE=2><BR>
January 31, 2004</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="30%" ALIGN="RIGHT"><FONT SIZE=2><BR>
5,000,000</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="66%"><FONT SIZE=2>April 30, 2004</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="30%" ALIGN="RIGHT"><FONT SIZE=2>5,000,000</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="66%"><FONT SIZE=2>July 31, 2004</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="30%" ALIGN="RIGHT"><FONT SIZE=2>5,000,000</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="66%"><FONT SIZE=2>October 31, 2004</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="30%" ALIGN="RIGHT"><FONT SIZE=2>5,000,000</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="66%"><FONT SIZE=2><BR>
January 31, 2005</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="30%" ALIGN="RIGHT"><FONT SIZE=2><BR>
6,250,000</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="66%"><FONT SIZE=2>April 30, 2005</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="30%" ALIGN="RIGHT"><FONT SIZE=2>6,250,000</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="66%"><FONT SIZE=2>July 31, 2005</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="30%" ALIGN="RIGHT"><FONT SIZE=2>6,250,000</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="66%"><FONT SIZE=2>October 31, 2005</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="30%" ALIGN="RIGHT"><FONT SIZE=2>6,250,000</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="66%"><FONT SIZE=2><BR>
January 31, 2006</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="30%" ALIGN="RIGHT"><FONT SIZE=2><BR>
12,500,000</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="66%"><FONT SIZE=2>April 30, 2006</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="30%" ALIGN="RIGHT"><FONT SIZE=2>12,500,000</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="66%"><FONT SIZE=2>July 31, 2006</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="30%" ALIGN="RIGHT"><FONT SIZE=2>12,500,000</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="66%"><FONT SIZE=2>October 31, 2006</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="30%" ALIGN="RIGHT"><FONT SIZE=2>12,500,000</FONT></TD>
</TR>
</TABLE></DIV>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2>The
Borrower hereby further agrees to pay interest on the unpaid principal amount of the Term Loans from time to time outstanding from the date hereof until payment in full thereof at the rates per
annum, and on the dates, set forth in subsection 4.4. </FONT></P>

<P><FONT SIZE=2><A
NAME="lg2063_2.4_evidence_of_term_loan_debt."> </A>
<A NAME="toc_lg2063_5"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;2.4</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Evidence of Term Loan Debt. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a)&nbsp;Each Term Loan Lender shall maintain in accordance with its usual practice an account or accounts evidencing
indebtedness of the Borrower to such
Term Loan Lender from time to time in respect of the Term Loan of such Term Loan Lender, including the amounts of principal and interest payable and paid to such Term Loan Lender in respect of such
Term Loan from time to time under this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The
Administrative Agent shall record in the Register, with separate subaccounts therein for each Term Loan Lender, (i)&nbsp;the amount of each Term Loan, the
Type thereof and, in the case of Eurodollar Loans, each Interest Period applicable thereto, (ii)&nbsp;the amount of any principal or interest due and payable or to become due and payable from the
Borrower to each Term Loan Lender hereunder and (iii)&nbsp;both the amount of any sum received by the Administrative Agent hereunder from the Borrower and each Term Loan Lender's share thereof, if
any. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The
entries made in the Register and the accounts of each Term Loan Lender maintained pursuant to subsections 2.4(a) and 2.4(b) shall, to the extent permitted by
applicable law, be prima facie evidence of the existence and amounts of the Obligations of the Borrower therein recorded, </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2>, </FONT> <FONT SIZE=2><I>however</I></FONT><FONT SIZE=2>, that the
failure of any Term Loan Lender or the Administrative Agent to maintain the Register or any such account, or any error therein, shall
not in any manner affect the obligation of the Borrower to repay (with applicable interest) the Term Loans in accordance with the terms of this Agreement. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The
Borrower agrees that, upon the request to the Administrative Agent by any Term Loan Lender, which request is communicated to the Borrower, the Borrower will
execute and deliver to such </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>21</FONT></P>

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<P><FONT SIZE=2>
Term Loan Lender, a promissory note of the Borrower dated the Closing Date evidencing the Term Loan of such Term Loan Lender, substantially in the form of </FONT> <FONT SIZE=2><I>Exhibit&nbsp;C</I></FONT><FONT SIZE=2> (a "</FONT><FONT SIZE=2><I>Term
Note</I></FONT><FONT SIZE=2>"), payable to the order of such Term Loan Lender and in a principal
amount equal to the lesser of (A)&nbsp;the initial Term Loan Commitment of such Term Loan Lender or (B)&nbsp;the unpaid principal amount of the Term Loan of such Term Loan Lender. Each Term Loan
Lender is hereby authorized to record the date, Type and amount of the Term Loan of such Term Loan Lender, the date and amount of each payment or prepayment of principal thereof, each continuation of
all or a portion thereof as the same Type, each conversion of all or a portion thereof to another Type and, in the case of Eurodollar Loans, the length of each Interest Period and Eurodollar Rate with
respect thereto, on the schedule (or any continuation of the schedule) annexed to and constituting a part of its Term Note and any such recordation shall, to the extent permitted by applicable law,
constitute prima facie evidence of the accuracy of the information so recorded, </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that the failure to make any such recordation (or any error
therein)
shall not affect the obligation of the Borrower to repay (with applicable interest) the Term Loans in accordance with the terms of this Agreement. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="lg2063_section_3._amount_and_t__lg202391"> </A>
<A NAME="toc_lg2063_6"> </A>
<BR></FONT><FONT SIZE=2>SECTION 3. AMOUNT AND TERMS OF REVOLVING CREDIT COMMITMENTS    <BR></FONT></P>

<P><FONT SIZE=2><A
NAME="lg2063_3.1_revolving_credit_commitments."> </A>
<A NAME="toc_lg2063_7"> </A>
   &nbsp;&nbsp;&nbsp;&nbsp;3.1</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Revolving Credit Commitments. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a)&nbsp;Subject to the terms and conditions hereof, each Revolving Credit Lender severally and not jointly agrees to
   make revolving credit loans
("</FONT><FONT SIZE=2><I>Revolving Credit Loans</I></FONT><FONT SIZE=2>") to the Borrower from time to time during the Revolving Credit Commitment Period in an aggregate principal amount at any one
time outstanding which, when added to such Revolving Credit Lender's Revolving Credit Commitment Percentage of (i)&nbsp;the then outstanding Swing Line Loans and (ii)&nbsp;the then outstanding L/C
Obligations, does not exceed the amount of such Revolving Credit Lender's Revolving Credit Commitment. During the Revolving Credit Commitment Period, the Borrower may use the Revolving Credit
Commitments by borrowing, prepaying and reborrowing Revolving Credit Loans, all in accordance with the terms and conditions hereof. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The
Revolving Credit Loans may from time to time be (i)&nbsp;Eurodollar Loans, (ii)&nbsp;ABR Loans or (iii)&nbsp;a combination thereof, as determined by the
Borrower and notified to the Administrative Agent in accordance with subsections 3.2 and 4.2, </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that no Revolving Credit Loan shall be made as a
Eurodollar Loan after the day that is one month prior to the Revolving Credit Termination Date. </FONT></P>

<P><FONT SIZE=2><A
NAME="lg2063_3.2_procedure_for_revolving_credit_borrowing."> </A>
<A NAME="toc_lg2063_8"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;3.2</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Procedure for Revolving Credit Borrowing. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The Borrower may borrow under the Revolving Credit Commitments during the Revolving Credit Commitment
Period on any Business Day, </FONT> <FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that the Borrower shall give the Administrative Agent irrevocable notice (which notice must be received by the Administrative Agent prior to
12:00 Noon, New York City time, (a)&nbsp;three Business Days prior to the requested Borrowing Date, if all or any part of the requested Revolving Credit Loans are to be initially Eurodollar Loans,
or (b)&nbsp;prior to 12:00 Noon, New York City time, one Business Day prior to the requested Borrowing Date, otherwise), specifying (i)&nbsp;the amount to be borrowed, (ii)&nbsp;the requested
Borrowing Date, (iii)&nbsp;whether the borrowing is to be of Eurodollar Loans, ABR Loans or a combination thereof and (iv)&nbsp;if the borrowing is to be entirely or partly of Eurodollar Loans,
the respective amounts of each such Type of Loan and the lengths of the initial Interest Periods therefor. Each borrowing under the Revolving Credit Commitments shall be in an amount equal to
(x)&nbsp;in the case of ABR Loans, $3,000,000 or a whole multiple of $1,000,000 in excess thereof (or, if the then Available Revolving Credit Commitments are less than $3,000,000, such lesser
amount) and (y)&nbsp;in the case of Eurodollar Loans, $3,000,000 or a whole multiple of $1,000,000 in excess thereof. Upon receipt of any such notice from the Borrower, the Administrative Agent
shall promptly notify each Revolving Credit Lender thereof. Each Revolving Credit Lender will make the amount of its pro rata share of each borrowing available to the Administrative Agent for the
account of the Borrower at the office of the Administrative Agent specified in subsection 13.2 prior to 11:00 Noon, New York City time, on the Borrowing Date requested by the Borrower in funds
immediately available to the Administrative Agent. Such borrowing will then be made available to the Borrower by the Administrative Agent crediting the account of the Borrower on the books of such
office prior to 12:00 Noon, New York City time, on such </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>22</FONT></P>

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<P><FONT SIZE=2>
Borrowing Date with the aggregate of the amounts made available to the Administrative Agent by the Lenders and in like funds as received by the Administrative Agent. </FONT></P>

<P><FONT SIZE=2><A
NAME="lg2063_3.3_commitment_fee."> </A>
<A NAME="toc_lg2063_9"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;3.3</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Commitment Fee. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The Borrower agrees to pay to the Administrative Agent for the account of each Revolving Credit Lender a commitment fee for the
period from and including the
first day of the Revolving Credit Commitment Period to the Revolving Credit Termination Date, computed at the rate of 0.375% per annum (the "</FONT><FONT SIZE=2><I>Commitment Fee
Rate</I></FONT><FONT SIZE=2>") on the average daily amount of the unused Revolving Credit Commitment (it being understood that for purposes of this subsection 3.3, any outstanding Swing Line Loans
shall not be deemed to be utilization of the Revolving Credit Commitment) of such Revolving Credit Lender during the period for which payment is made, payable quarterly in arrears on the last day of
each March, June, September and December and on the Revolving Credit Termination Date or such earlier date as the Revolving Credit Commitments shall terminate as provided herein, commencing on the
first of such dates to occur after the date hereof, </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that, from and after March&nbsp;31, 2002, the Commitment Fee Rate will be adjusted, if
required, on each Adjustment Date, to the rate set forth on </FONT><FONT SIZE=2><I>Annex&nbsp;A</I></FONT><FONT SIZE=2> hereto opposite the Leverage Ratio Level of the Borrower in effect on such
Adjustment Date and </FONT><FONT SIZE=2><I>provided, further</I></FONT><FONT SIZE=2>, that, in the event that the financial statements required to be delivered pursuant to subsection 7.1(a) or
7.1(b), as applicable, and the related certificate required pursuant to subsection 7.2(b), are not delivered when due, then, during the period from the date upon which such financial statements were
required to be delivered until one Business Day following the date upon which they actually are delivered, the Commitment Fee Rate shall be 0.50%. </FONT></P>

<P><FONT SIZE=2><A
NAME="lg2063_3.4_termination_or_reduction_of_commitments."> </A>
<A NAME="toc_lg2063_10"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;3.4</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Termination or Reduction of Commitments. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The Borrower shall have the right, upon not less than one Business Day's prior notice to the
Administrative Agent, to terminate the Revolving Credit
Commitments or, from time to time, to reduce the amount of the Revolving Credit Commitments, provided that no such termination or reduction shall be permitted if, after giving effect thereto and to
any prepayments of the Revolving Credit Loans and Swing Line Loans made on the effective date thereof, the aggregate principal amount of the Revolving Credit Loans then outstanding, when added to the
then outstanding L/C Obligations and Swing Line Loans, would exceed the Revolving Credit Commitments then in effect. Any such reduction shall be in an amount equal to $5,000,000 or a whole multiple of
$1,000,000 in excess thereof and shall reduce permanently the Revolving Credit Commitments then in effect. The Revolving Credit Commitments are also subject to reduction as provided in subsection 4.1. </FONT></P>

<P><FONT SIZE=2><A
NAME="lg2063_3.5_repayment_of_revolv__lg202120"> </A>
<A NAME="toc_lg2063_11"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;3.5</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Repayment of Revolving Credit Loans; Evidence of Debt. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a)&nbsp;The Borrower hereby unconditionally promises to pay to the Administrative Agent
for the account of each Revolving Credit Lender the then unpaid
principal amount of each Revolving Credit Loan of such Revolving Credit Lender on the Revolving Credit Termination Date (or such earlier date on which the Revolving Credit Loans become due and payable
pursuant to Section&nbsp;11). The Borrower hereby further agrees to pay interest on the unpaid principal amount of the Revolving Credit Loans from time to time outstanding from the date hereof until
payment in full thereof at the rates per annum, and on the dates, set forth in subsection 4.4. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Each
Revolving Credit Lender shall maintain in accordance with its usual practice an account or accounts evidencing indebtedness of the Borrower to such Revolving
Credit Lender from time to time in respect of each Revolving Credit Loan of such Revolving Credit Lender, including the amounts of principal and interest payable and paid to such Revolving Credit
Lender in respect of such Revolving Credit Loans from time to time under this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The
Administrative Agent shall record in the Register, with separate subaccounts for each Revolving Credit Lender, (i)&nbsp;the amount and Borrowing Date of each
Revolving Credit Loan, the Type thereof and each Interest Period applicable thereto, (ii)&nbsp;the amount of any principal or interest due and payable or to become due and payable from the Borrower
to each Revolving Credit Lender hereunder </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>23</FONT></P>

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<P><FONT SIZE=2>
and (iii)&nbsp;both the amount of any sum received by the Administrative Agent hereunder from the Borrower and each Revolving Credit Lender's share thereof, if any. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The
entries made in the Register and the accounts of each Revolving Credit Lender maintained pursuant to subsections 3.5(a) and 3.5(b) shall, to the extent
permitted by applicable law, be </FONT><FONT SIZE=2><I>prima facie</I></FONT><FONT SIZE=2> evidence of the existence and amounts of the obligations of the Borrower therein recorded, </FONT> <FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2>,
</FONT><FONT SIZE=2><I>however</I></FONT><FONT SIZE=2>, that the failure of any Revolving Credit Lender or the Administrative Agent to
maintain the Register or any such account, or any error therein, shall not in any manner affect the obligation of the Borrower to repay (with applicable interest) the Revolving Credit Loans in
accordance with the terms of this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;The
Borrower agrees that, upon the request to the Administrative Agent by any Revolving Credit Lender, which request is communicated to the Borrower, the Borrower
will execute and deliver to such Revolving Credit Lender a promissory note of the Borrower, dated the Closing Date, evidencing the Revolving Credit Loans of such Revolving Credit Lender, substantially
in the form of </FONT><FONT SIZE=2><I>Exhibit&nbsp;D</I></FONT><FONT SIZE=2> (a "</FONT><FONT SIZE=2><I>Revolving Credit Note</I></FONT><FONT SIZE=2>"), payable to the order of such Revolving
Credit Lender and in a principal amount equal to the lesser of (A)&nbsp;the Revolving Credit Commitment of such Revolving Credit Lender and (B)&nbsp;the aggregate unpaid principal amount of
Revolving Credit Loans of such Revolving Credit Lender. Each Revolving Credit Lender is hereby authorized to record the date, Type and amount of each Revolving Credit Loan of such Revolving Credit
Lender, the date and amount of each payment or prepayment of principal thereof, each continuation of all or a portion thereof as the same Type, each conversion of all or a portion thereof to another
Type and, in the case of Eurodollar Loans, the length of each Interest Period and Eurodollar Rate with respect thereto, on the schedule (or any continuation of the schedule) annexed to and
constituting a part of its Revolving Credit Note, and any such recordation shall, to the extent permitted by applicable law, constitute </FONT><FONT SIZE=2><I>prima facie</I></FONT><FONT SIZE=2>
evidence of the accuracy of the information so recorded, </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that the failure to make any such recordation (or any error therein) shall not affect
the obligation of the Borrower to repay (with applicable interest) the Revolving Credit Loans in accordance with the terms of this Agreement. </FONT></P>

<P><FONT SIZE=2><A
NAME="lg2063_3.6_swing_line_commitment."> </A>
<A NAME="toc_lg2063_12"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;3.6</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Swing Line Commitment. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Subject to the terms and conditions hereof, Chase (in such capacity, the "Swing Line Lender") agrees to make a portion of
the Revolving Credit Commitments
available to the Borrower during the Revolving Credit Commitment Period by making swing line loans ("</FONT><FONT SIZE=2><I>Swing Line Loans</I></FONT><FONT SIZE=2>") to the Borrower in an aggregate
principal amount not to exceed at any one time outstanding the Swing Line Commitment, </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that (a)&nbsp;the aggregate principal amount of Swing
Line Loans outstanding at any time shall not exceed the Revolving Credit Commitments at such time and (b)&nbsp;the Borrower shall not request, and the Swing Line Lender shall not make, any Swing
Line Loan if, after giving effect to the making of such Swing Line Loan, the Aggregate Revolving Credit Outstandings of all the Revolving Credit Lenders at such time would exceed the Revolving Credit
Commitments at such time. During the Revolving Credit Commitment Period, the Borrower may use the Swing Line Commitment by borrowing, repaying and reborrowing Swing Line Loans all in accordance with
the terms and conditions hereof. Swing Line Loans may be ABR Loans only. </FONT></P>

<P><FONT SIZE=2><A
NAME="lg2063_3.7_repayment_of_swing_line_loans;_evidence_of_debt."> </A>
<A NAME="toc_lg2063_13"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;3.7</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Repayment of Swing Line Loans; Evidence of Debt. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a)&nbsp;The Borrower hereby unconditionally promises to pay to the Administrative Agent for the
account of the Swing Line Lender the then unpaid principal
amount of the Swing Line Loans on the Revolving Credit Termination Date (or such earlier date on which the Swing Line Loans become due and payable pursuant to Section&nbsp;11). The Borrower hereby
further agrees to pay interest on the unpaid principal amount of the Swing Line Loans from time to time outstanding from the date hereof until payment in full thereof at the rates per annum, and on
the dates, set forth in subsection 4.4. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The
Swing Line Lender shall maintain in accordance with its usual practice an account or accounts evidencing indebtedness of the Borrower from time to time in
respect of the Swing Line Loans made hereunder, including the amounts of principal and interest payable and paid in respect of such Swing Line Loans from time to time under this Agreement. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>24</FONT></P>

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<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The Administrative Agent shall record in the Register (i)&nbsp;the amount and Borrowing Date of each Swing Line Loan, (ii)&nbsp;the amount of any principal or
interest due and payable or to become due and payable from the Borrower in respect thereof and (iii)&nbsp;the amount of any sum received by the Administrative Agent hereunder in respect of Swing
Line Loans. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The
entries made in the Register pursuant to subsection 3.7(c) shall, to the extent permitted by applicable law, be </FONT><FONT SIZE=2><I>prima
facie</I></FONT><FONT SIZE=2> evidence of the existence and amounts of the obligations of the Borrower therein recorded, </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2>, </FONT> <FONT SIZE=2><I>however</I></FONT><FONT SIZE=2>, that the
failure of the Swing Line Lender or the Administrative Agent to maintain the Register, or any error therein, shall not in any manner
affect the obligation of the Borrower to repay (with applicable interest) the Swing Line Loans in accordance with the terms of this Agreement. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;The
Borrower agrees that, upon the request to the Administrative Agent by the Swing Line Lender, which request is communicated to the Borrower, the Borrower will
execute and deliver to the Swing Line Lender a promissory note of the Borrower, dated the Closing Date, evidencing the Swing Line Loans of the Swing Line Lender, substantially in the form of </FONT> <FONT SIZE=2><I>Exhibit&nbsp;E</I></FONT><FONT
SIZE=2> (a "</FONT><FONT SIZE=2><I>Swing Line Note</I></FONT><FONT SIZE=2>"), and in a principal amount equal to the lesser of (A)&nbsp;the
Swing Line Commitment and (B)&nbsp;the aggregate unpaid principal amount of Swing Line Loans. The Swing Line Lender is hereby authorized to record the date and amount of each Swing Line Loan of the
Swing Line Lender and the date and amount of each payment or prepayment of principal thereof on the schedule annexed to and constituting a part of the Swing Line Note, and any such recordation shall,
to the extent permitted by applicable law, constitute </FONT><FONT SIZE=2><I>prima facie</I></FONT><FONT SIZE=2> evidence of the accuracy of the information so recorded, </FONT> <FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that the failure to
make any such recordation (or any error therein) shall not affect the obligation of the Borrower to repay (with applicable
interest) the Swing Line Loans in accordance with the terms of this Agreement. </FONT></P>

<P><FONT SIZE=2><A
NAME="lg2063_3.8_procedure_for_borrowing_swing_line_loans."> </A>
<A NAME="toc_lg2063_14"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;3.8</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Procedure for Borrowing Swing Line Loans. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Whenever the Borrower desires that the Swing Line Lender make Swing Line Loans under subsection 3.6, it
shall give the Swing Line Lender irrevocable telephonic
notice confirmed promptly in writing (which telephonic notice must be received by the Swing Line Lender not later than 1:00&nbsp;P.M., New York City time, on the proposed Borrowing Date), specifying
(i)&nbsp;the amount to be borrowed and (ii)&nbsp;the requested Borrowing Date (which shall be a Business Day during the Revolving Credit Commitment Period). Each borrowing under the Swing Line
Commitment shall be in a minimum amount of $500,000. Not later than 2:00&nbsp;P.M., New York City time, on the Borrowing Date specified in a notice in respect of Swing Line Loans, the Swing Line
Lender shall make available to the Administrative Agent for the account of the Borrower at the office of the Administrative Agent specified in subsection 13.2 an amount in immediately available funds
equal to the amount of the Swing Line Loan to be made by the Swing Line Lender. The Administrative Agent shall make the proceeds of such Swing Line Loan available to the Borrower not later than
3:00&nbsp;p.m., New York City time, on such Borrowing Date by crediting the account of the Borrower, on the books of such office, in like funds as received by the Administrative Agent. </FONT></P>

<P><FONT SIZE=2><A
NAME="lg2063_3.9_swing_line_loan_participations."> </A>
<A NAME="toc_lg2063_15"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;3.9</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Swing Line Loan Participations. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a)&nbsp;Notwithstanding anything herein to the contrary, the Swing Line Lender shall not, unless otherwise
requested by the Required Lenders, make any Swing
Line Loans if a Default or an Event of Default shall have occurred and be continuing. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;If
prior to the repayment of any Swing Line Loan, one of the events described in subsection 11(f) shall have occurred, or at any time as the Swing Line Lender shall
request, each Revolving Credit Lender shall purchase an undivided participating interest in an amount equal to such Revolving Credit Lender's Revolving Credit Commitment Percentage of the aggregate
principal amount of Swing Line Loans then outstanding (the "</FONT><FONT SIZE=2><I>Swing Line Participation Amount</I></FONT><FONT SIZE=2>"). On the date of such purchase, each Revolving Credit
Lender shall transfer to the Swing Line Lender, in immediately available funds, such Revolving Credit Lender's Swing Line Participation Amount and upon receipt thereof the Swing Line Lender shall
deliver to such Revolving Credit Lender a Swing Line Loan Participation Certificate dated the date of receipt by the Swing Line Lender of such funds and in an amount equal to such Revolving Credit
Lender's Swing Line Participation Amount. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>25</FONT></P>

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<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Whenever, at any time after the Swing Line Lender has received from any Revolving Credit Lender such Revolving Credit Lender's Swing Line Participation Amount, the
Swing Line Lender receives any payment on account of the Swing Line Loans, the Swing Line Lender will distribute to such Revolving Credit Lender its </FONT><FONT SIZE=2><I>pro
rata</I></FONT><FONT SIZE=2> share of such payment (appropriately adjusted, in the case of interest payments, to reflect the period of time during which such Revolving Credit Lender's participating
interest was outstanding and funded), </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2>, </FONT><FONT SIZE=2><I>however</I></FONT><FONT SIZE=2>, that in the event that such payment received by
the Swing Line Lender is required to be returned, such Revolving Credit Lender will return to the Swing Line Lender any portion thereof previously distributed to it by the Swing Line Lender. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Each
Revolving Credit Lender's obligation to purchase participating interests pursuant to subsection 3.9(b) shall be absolute and unconditional and shall not be
affected by any circumstance, including, without limitation, (i)&nbsp;any set-off, counterclaim, recoupment, defense or other right which such Revolving Credit Lender or the Borrower may
have against the Swing Line Lender, the Borrower or any other Person for any reason whatsoever; (ii)&nbsp;the occurrence or continuance of a Default or an Event of Default; (iii)&nbsp;any adverse
change in the condition (financial or otherwise) of the Borrower; (iv)&nbsp;any breach of this Agreement or any other Loan Document by any of the Loan Parties or any other Lender; or (v)&nbsp;any
other circumstance, happening or event whatsoever, whether or not similar to any of the foregoing. </FONT></P>

<P><FONT SIZE=2><A
NAME="lg2063_3.10_l_/c_commitment."> </A>
<A NAME="toc_lg2063_16"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;3.10</FONT><FONT SIZE=2><I>&nbsp;&nbsp;L&nbsp;/C Commitment. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a)&nbsp;Subject to the terms and conditions hereof, each Issuing Bank, in reliance on the agreements of the other
Revolving Credit Lenders set forth in
subsection 3.13(a), agrees to issue Letters of Credit for the account of the Borrower on any Business Day during the Revolving Credit Commitment Period in such form as may be approved from time to
time by the relevant Issuing Bank, provided that no Issuing Bank shall have any obligation to, and shall not, issue any Letter of Credit if, after giving effect to such issuance, (i)&nbsp;the L/C
Obligations would exceed the lesser of (A)&nbsp;the L/C Commitment and (B)&nbsp;the Revolving Credit Commitments at such time or (ii)&nbsp;the Aggregate Revolving Credit Outstandings of all the
Revolving Credit Lenders at such time would exceed the Revolving Credit Commitments at such time. Any Continuing Letter of Credit, including those set forth on </FONT> <FONT SIZE=2><I>Schedule&nbsp;3.10</I></FONT><FONT SIZE=2>, shall be deemed to be
issued under this Agreement on the Closing Date and shall be a Letter of Credit for all purposes hereof
(other than subsection 3.11). </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Each
Letter of Credit shall: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;be
denominated in Dollars and shall be either (1)&nbsp;a standby letter of credit issued to support obligations of the Borrower, contingent or otherwise, in
connection with the working capital and business needs of the Borrower in the ordinary course of business (a "</FONT><FONT SIZE=2><I>Standby Letter of Credit</I></FONT><FONT SIZE=2>") or (2)&nbsp;a
commercial letter of credit issued in respect of the purchase of goods or services by the Borrower and its Subsidiaries in the ordinary course of business (a "</FONT><FONT SIZE=2><I>Commercial Letter
of Credit</I></FONT><FONT SIZE=2>"); and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;expire
no later than the earlier of (A)&nbsp;five Business Days prior to the Revolving Credit Termination Date and (B)&nbsp;one year after the date of issuance
thereof (or, with respect to Letters of Credit the L/C Obligations in respect of which do not in the aggregate exceed $10,000,000 at any time, two years after the date of issuance thereof), </FONT> <FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2>
that, subject to clause&nbsp;(A) above and subsection (d)&nbsp;below, any such Letter of Credit with an expiration date on or prior to the
first anniversary of the date of issuance thereof may, at the request of the Borrower as set forth in the applicable Application or prior to expiration thereof, be automatically renewed on each
anniversary of the issuance thereof for an additional period of one year unless the relevant Issuing Bank shall have given 60&nbsp;days prior written notice to the Borrower and the beneficiary of
such Letter of Credit that such Letter of Credit will not be renewed. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Each
Letter of Credit shall be subject to the Uniform Customs and, to the extent not inconsistent therewith, the laws of the State of New York. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>26</FONT></P>

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<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;No Issuing Bank shall at any time be obligated to issue any Letter of Credit hereunder if such issuance would conflict with, or cause such Issuing Bank or any L/C
Participant to exceed any limits imposed by, any applicable Requirement of Law. The Issuing Banks and the Lenders agree that if the Required Lenders otherwise direct during the existence of a Default
or Event of Default, each Issuing Bank shall take appropriate steps to prevent the automatic extension of any Letter of Credit described in clause&nbsp;(b)(ii)&nbsp;above. </FONT></P>

<P><FONT SIZE=2><A
NAME="lg2063_3.11_procedure_for_issuance_of_letters_of_credit."> </A>
<A NAME="toc_lg2063_17"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;3.11</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Procedure for Issuance of Letters of Credit. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The Borrower may from time to time request that an Issuing Bank issue a Letter of Credit by
delivering to such Issuing Bank at its address for notices
specified in its Issuing Bank Agreement an Application therefor, completed to the reasonable satisfaction of such Issuing Bank, and such other certificates, documents and other papers and information
as such Issuing Bank may reasonably request. The relevant Issuing Bank shall notify the Revolving Credit Lenders promptly of the receipt of any request pursuant to the immediately preceding sentence.
Upon receipt of any Application, the relevant Issuing Bank will process such Application and the certificates, documents and other papers and information delivered to it in connection therewith in
accordance with its customary procedures and shall promptly issue the Letter of Credit requested thereby (but in no event shall such Issuing Bank be required to issue any Letter of Credit earlier than
three Business Days after its receipt of the Application therefor and all such other certificates, documents and other papers and information relating thereto) by issuing the original of such Letter
of Credit to the beneficiary thereof or as otherwise may be agreed by such Issuing Bank and the Borrower. The relevant Issuing Bank shall furnish a copy of such Letter of Credit to the Administrative
Agent and the Borrower promptly following the issuance thereof. </FONT></P>

<P><FONT SIZE=2><A
NAME="lg2063_3.12_fees,_commissions_and_other_charges."> </A>
<A NAME="toc_lg2063_18"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;3.12</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Fees, Commissions and Other Charges. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a)&nbsp;The Borrower shall pay to the Administrative Agent, for the account of each Issuing Bank, a
fronting fee with respect to each Letter of Credit,
computed for the period from the date of issuance of such Letter of Credit or the immediately preceding L/C Fee Payment Date, as the case may be, to the next L/C Fee Payment Date to occur thereafter
at the rate of 0.25% per annum (or such lower rate agreed between the Borrower and the relevant Issuing Bank in its Issuing Bank Agreement), calculated on the basis of a 360-day year for
actual days elapsed, of the aggregate amount available to be drawn under such Letter of Credit during the period for which such fee is calculated. Such fronting fee shall be payable in arrears on each
L/C Fee Payment Date to occur after the issuance of such Letter of Credit and on the Revolving Credit Termination Date and shall be nonrefundable. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The
Borrower shall pay to the Administrative Agent, for the account of the L/C Participants, a letter of credit commission with respect to each Letter of Credit,
computed for the period from the date of issuance of such Letter of Credit or the immediately preceding L/C Fee Payment Date, as the case may be, to the next L/C Fee Payment Date to occur thereafter
at the rate of 1.625% per annum (the "</FONT><FONT SIZE=2><I>L/C Fee Percentage</I></FONT><FONT SIZE=2>"), calculated on the basis of a 360-day year for actual days elapsed, of the
aggregate amount available to be drawn under such Letter of Credit during the period for which such fee is calculated, to be shared ratably among the L/C Participants in accordance with their
respective Revolving Credit Commitment Percentages, </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2>, that from and after March&nbsp;31, 2002, the L/C Fee Percentage shall be equal to the
Applicable Margin for Eurodollar Loans in effect from time to time. Such commissions shall be payable in arrears on each L/C Fee Payment Date to occur after the issuance of such Letter of Credit and
on the Revolving Credit Termination Date and shall be nonrefundable. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;In
addition to the foregoing fees and commissions, the Borrower shall pay or reimburse each Issuing Bank for such normal and customary costs and expenses as are
incurred or charged by such Issuing Bank in issuing, effecting payment under, amending or otherwise administering any Letter of Credit. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>27</FONT></P>

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<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The Administrative Agent shall, promptly following its receipt thereof, distribute to each Issuing Bank and the L/C Participants all fees and commissions received
by the Administrative Agent for their respective accounts pursuant to this subsection. </FONT></P>

<P><FONT SIZE=2><A
NAME="lg2063_3.13_l/c_participations."> </A>
<A NAME="toc_lg2063_19"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;3.13</FONT><FONT SIZE=2><I>&nbsp;&nbsp;L/C Participations. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a)&nbsp;Each Issuing Bank irrevocably agrees to grant and hereby grants to each L/C Participant, and, to induce each
Issuing Bank to issue Letters of Credit
hereunder, each L/C Participant irrevocably agrees to accept and purchase and hereby accepts and purchases from each Issuing Bank, on the terms and conditions hereinafter stated, for such L/C
Participant's own account and risk an undivided interest equal to such L/C Participant's Revolving Credit Commitment Percentage in such Issuing Bank's obligations and rights under each Letter of
Credit issued hereunder and the amount of each draft paid by such Issuing Bank thereunder. Each L/C Participant unconditionally and irrevocably agrees with each Issuing Bank that, if a draft is paid
under any Letter of Credit for which the relevant Issuing Bank is not reimbursed in full by the Borrower in accordance with the terms of this Agreement, such
L/C Participant shall pay to such Issuing Bank upon demand at such Issuing Bank's address for notices specified in its Issuing Bank Agreement an amount equal to such L/C Participant's Revolving Credit
Commitment Percentage of the amount of such draft, or any part thereof, which is not so reimbursed. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;If
any amount required to be paid by any L/C Participant to any Issuing Bank pursuant to subsection 3.13(a) in respect of any unreimbursed portion of any payment
made by such Issuing Bank under any Letter of Credit is paid to such Issuing Bank within three Business Days after the date such payment is due, such L/C Participant shall pay to such Issuing Bank on
demand an amount equal to the product of (i)&nbsp;such amount, times (ii)&nbsp;the daily average Federal Funds Effective Rate, during the period from and including the date such payment is
required to the date on which such payment is immediately available to such Issuing Bank, times (iii)&nbsp;a fraction the numerator of which is the number of days that elapse during such period and
the denominator of which is 360. If any such amount required to be paid by any L/C Participant pursuant to subsection 3.13(a) is not in fact made available to the relevant Issuing Bank by such L/C
Participant within three Business Days after the date such payment is due, such Issuing Bank shall be entitled to recover from such L/C Participant, on demand, such amount with interest thereon
calculated from such due date at the rate per annum applicable to ABR Loans hereunder. A certificate of the relevant Issuing Bank submitted to any L/C Participant with respect to any amounts owing
under this subsection shall be conclusive in the absence of manifest error. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Whenever,
at any time after an Issuing Bank has made payment under any Letter of Credit and has received from any L/C Participant its </FONT><FONT SIZE=2><I>pro
rata</I></FONT><FONT SIZE=2> share of such payment in accordance with subsection 3.13(a), such Issuing Bank receives any payment related to such Letter of Credit (whether directly from the Borrower or
otherwise, including proceeds of Collateral applied thereto by such Issuing Bank), or any payment of interest on account thereof, such Issuing Bank will distribute to such L/C Participant its </FONT> <FONT SIZE=2><I>pro rata</I></FONT><FONT SIZE=2>
share thereof, </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2>, </FONT><FONT SIZE=2><I>however</I></FONT><FONT SIZE=2>, that in the
event that any such payment received by such Issuing Bank shall be required to be returned by such Issuing Bank, such L/C Participant shall return to such Issuing Bank the portion thereof previously
distributed by such Issuing Bank to it. </FONT></P>

<P><FONT SIZE=2><A
NAME="lg2063_3.14_reimbursement_obligation_of_the_borrower."> </A>
<A NAME="toc_lg2063_20"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;3.14</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Reimbursement Obligation of the Borrower. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a)&nbsp;Each Issuing Bank shall notify the Borrower promptly of each drawing under a Letter of Credit.
The Borrower agrees to reimburse the relevant Issuing
Bank on the Business Day immediately following each date on which such Issuing Bank notifies the Borrower of the date and amount of a draft presented under any Letter of Credit and paid by such
Issuing Bank for the amount of (i)&nbsp;such draft so paid and (ii)&nbsp;any taxes, fees, charges or other costs or expenses incurred by such Issuing Bank in connection with such payment. Each
such payment shall be made to the relevant Issuing Bank at its address for notices specified herein in lawful money of the United States of America and in immediately available funds. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>28</FONT></P>

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<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Interest shall be payable on any and all amounts remaining unpaid by the Borrower under this subsection 3.14 (i)&nbsp;from the date the draft presented under the
affected Letter of Credit is paid to the
date on which the Borrower is required to pay such amounts pursuant to paragraph&nbsp;(a) of this subsection at the rate which would then be payable on ABR Loans and (ii)&nbsp;thereafter, until
payment in full at the rate which would be payable on any ABR Loans which were then overdue. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Each
drawing under any Letter of Credit shall constitute a request by the Borrower to the Administrative Agent for a borrowing pursuant to subsection 3.2 of ABR
Loans in the amount of such drawing (but without any requirement for compliance with the conditions set forth in subsection 6.2). The Borrowing Date with respect to such borrowing shall be the
Business Day immediately following the date of such drawing and each Revolving Credit Lender shall make its Revolving Credit Commitment Percentage of such borrowing available to the Administrative
Agent on such date to be used to repay the Reimbursement Obligation created by such drawing. The relevant Issuing Bank shall notify the Revolving Credit Lenders promptly of each drawing under a Letter
of Credit to be reimbursed pursuant to this subsection 3.14(c). The application of such Loans shall satisfy the Borrower's Obligations under subsection 3.14(a) in the amount thereof. </FONT></P>

<P><FONT SIZE=2><A
NAME="lg2063_3.15_obligations_absolute."> </A>
<A NAME="toc_lg2063_21"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;3.15</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Obligations Absolute. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a)&nbsp;The Borrower's Obligations under subsection 3.14 shall be absolute and unconditional under any and all
circumstances and irrespective of any
set-off, counterclaim or defense to payment which the Borrower may have or have had against any Issuing Bank, any Lender or any beneficiary of a Letter of Credit. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The
Borrower also agrees with the Issuing Banks and the Lenders that no Issuing Bank nor any Lender shall be responsible for, and the Borrower's Reimbursement
Obligations under subsection 3.14(a) shall not be affected by, among other things, (i)&nbsp;the validity or genuineness of documents or of any endorsements thereon, even though such documents shall
in fact prove to be invalid, fraudulent or forged, or (ii)&nbsp;any dispute between or among the Borrower and any beneficiary of any Letter of Credit or any other party to which such Letter of
Credit may be transferred or (iii)&nbsp;any claims whatsoever of the Borrower against any beneficiary of such Letter of Credit or any such transferee. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;No
Issuing Bank shall be liable for any error, omission, interruption or delay in transmission, dispatch or delivery of any message or advice, however transmitted,
in connection with any Letter of Credit, except for errors, omissions, interruptions or delays caused by such Issuing Bank's gross negligence or willful misconduct. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The
Borrower agrees that any action taken or omitted by any Issuing Bank under or in connection with any Letter of Credit or the related drafts or documents, if
done in the absence of gross negligence or willful misconduct and in accordance with the standards of care specified in the Uniform Customs, and to the extent not inconsistent therewith, the Uniform
Commercial Code of the State of New York, shall be binding on the Borrower and shall not result in any liability of such Issuing Bank to the Borrower. </FONT></P>

<P><FONT SIZE=2><A
NAME="lg2063_3.16_letter_of_credit_payments."> </A>
<A NAME="toc_lg2063_22"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;3.16</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Letter of Credit Payments. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;If any draft shall be presented for payment under any Letter of Credit, the relevant Issuing Bank shall, within a
reasonable time after its receipt thereof,
examine all documents purporting to represent a demand for payment under such Letter of Credit to ascertain that the same appear on their face to be in conformity with the terms and conditions of such
Letter of Credit. The relevant Issuing Bank shall also promptly notify the Borrower of the date and amount thereof. The responsibility of the relevant Issuing Bank to the Borrower in connection with
any draft presented for payment under any Letter of Credit shall, in addition to any payment obligation expressly provided for in such Letter of Credit, be limited to determining that the documents
(including each draft) delivered under such Letter of Credit in connection with such presentment appear on their face to be in conformity with such Letter of Credit. </FONT></P>

<P><FONT SIZE=2><A
NAME="lg2063_3.17_application."> </A>
<A NAME="toc_lg2063_23"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;3.17</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Application. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;To the extent that any provision of any Application related to any Letter of Credit is inconsistent with the provisions of this
Section&nbsp;3, the
provisions of this Section&nbsp;3 shall apply. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>29</FONT></P>

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<P><FONT SIZE=2><A
NAME="li2063_3.18_certain_reporting_requirements."> </A>
<A NAME="toc_li2063_1"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;3.18</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Certain Reporting Requirements. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Each Issuing Bank will report in writing to the Administrative Agent (i)&nbsp;on the first Business Day of each
week, the aggregate stated amount of Letters
of Credit issued by it and outstanding as of the last Business Day of the preceding week and (ii)&nbsp;on or prior to each Business Day on which an Issuing Bank expects to issue or amend any Letter
of Credit, the date of such issuance or amendment and the aggregate stated amount of Letters of Credit to be issued by it and outstanding after giving effect to such issuance or amendment (and such
Issuing Bank shall advise the Administrative Agent on such Business Day whether such issuance or amendment occurred and whether the amount thereof changed). </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="li2063_section_4._general_provisions___sec02771"> </A>
<A NAME="toc_li2063_2"> </A>
<BR></FONT><FONT SIZE=2><B>SECTION 4. GENERAL PROVISIONS APPLICABLE TO LOANS AND LETTERS OF CREDIT    <BR>  </B></FONT></P>

<P><FONT SIZE=2><A
NAME="li2063_4.1_optional_and_mandatory_prepayments."> </A>
<A NAME="toc_li2063_3"> </A>
  &nbsp;&nbsp;&nbsp;&nbsp;4.1</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Optional and Mandatory Prepayments. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a)&nbsp;The Borrower may at any time and from time to time prepay the Loans, in whole or in part, without premium
  or penalty, upon irrevocable notice to the
Administrative Agent prior to 11:00&nbsp;a.m., New York City time, one Business Day prior to such prepayment, specifying the date and amount of prepayment and whether the prepayment is of Eurodollar
Loans, ABR Loans or a combination thereof, and, if of a combination thereof, the amount allocable to each, </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that, if such prepayment is of Term
Loans, such prepayment shall be applied to prepay the remaining installments of the Term Loans in the scheduled order of maturity. Upon receipt of any such notice the Administrative Agent shall notify
each affected Lender thereof on the date of receipt of such notice. If any such notice is given, the amount specified in such notice shall be due and payable on the date specified therein, together
with any amounts payable pursuant to subsection 4.11 and, in the case of prepayments of the Term Loans, accrued interest to such date on the amount prepaid. Amounts prepaid on account of the Term
Loans may not be reborrowed. Partial prepayments shall be in an aggregate principal amount of $5,000,000 or a whole multiple of $1,000,000 in excess thereof. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Unless
the Required Lenders otherwise agree, the Term Loans shall be prepaid and the Revolving Credit Commitments shall be permanently reduced (and, in connection
with any such reduction, the Swing Line Loans and Revolving Credit Loans shall be prepaid and/or the Letters of Credit shall be cash collateralized as provided in subsection 4.1(c)) as set forth in
subsection 4.1(c) in an amount equal to 100% of (i)&nbsp;the Excess Securitization Amount, (ii)&nbsp;the Net Proceeds of any Asset Sale by Holdings, the Borrower or any of their Subsidiaries, </FONT> <FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2>
that, if the Net Proceeds realized from any such Asset Sale (or series of related Asset Sales) is equal to or less than $1,000,000 (each such
Asset Sale or series of related Asset Sales, a "</FONT><FONT SIZE=2><I>De Minimus Asset Sale</I></FONT><FONT SIZE=2>"), such Net Proceeds shall not result in any prepayment or reduction pursuant to
this subsection, </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2>, </FONT><FONT SIZE=2><I>further</I></FONT><FONT SIZE=2>, if the aggregate Net Proceeds realized from De Minimus Asset Sales
are equal to or greater than $5,000,000, such Net Cash Proceeds shall be subject to prepayment or reduction under this subsection and (iii)&nbsp;the Net Proceeds of any
Casualty Event suffered by the Borrower or any of its Subsidiaries. Notwithstanding anything to the contrary contained in this subsection 4.1(b), so long as no Default or Event of Default has occurred
or is continuing or would result therefrom, the Borrower may elect, by notice to the Administrative Agent, to retain, without compliance with respect thereto with this subsection 4.1(b), up to
$20,000,000 in the aggregate of Net Proceeds from Asset Sales and Casualty Events occurring after the Closing Date which the Borrower would otherwise be required to apply to prepayment of the Term
Loans and the reduction of the Revolving Credit Commitments (and, in connection with any such reduction, the prepayment of Swing Line Loans and Revolving Credit Loans and/or the cash collateralization
of Letters of Credit as provided in subsection 4.1(c)). Unless the Required Lenders otherwise agree, the Term Loans shall be prepaid and the Revolving Credit Commitments shall be permanently reduced
(and, in connection with any such reduction, the Swing Line Loans and Revolving Credit Loans shall be prepaid and/or the Letters of Credit shall be cash collateralized as provided in subsection
4.1(c)) as set forth in subsection 4.1(c) in an amount equal to 100% of the Net Proceeds of any Subordinated Debt issued or incurred by the Borrower, </FONT> <FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2>, if the Consolidated Leverage Ratio
(calculated on a </FONT><FONT SIZE=2><I>pro forma</I></FONT><FONT SIZE=2> basis to give effect to such
issuance or incurrence of Subordinated </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>30</FONT></P>

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<P><FONT SIZE=2>
Debt) is less than 2.5 to 1.0, but greater than 2.0 to 1.0 at the time of such issuance or incurrence, the percentage of Net Proceeds to be applied in accordance with this sentence shall be 50%, </FONT> <FONT SIZE=2><I>provided,
further</I></FONT><FONT SIZE=2>, if the Consolidated Leverage Ratio (calculated on a </FONT><FONT SIZE=2><I>pro forma</I></FONT><FONT SIZE=2> basis to give effect to
such issuance or incurrence of Subordinated Debt) is less than 2.0 to 1.0 at the time of such issuance or incurrence, the percentage of Net Proceeds to be applied in accordance with this sentence
shall be 0%. Except as otherwise provided in this subsection 4.1(b), each prepayment required pursuant to this subsection 4.1(b) shall be made, and each reduction of Revolving Credit Commitments
pursuant to this subsection shall be effective, on the third Business Day following receipt of any Excess Securitization Amount, the Net Proceeds from the relevant Asset Sale or Casualty Event or the
issuance or incurrence of the relevant Subordinated Debt. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;All
mandatory prepayments of Loans and all reductions of Revolving Credit Commitments pursuant to subsection 4.1(b) shall be made in the following order of
priority: </FONT><FONT SIZE=2><I>first</I></FONT><FONT SIZE=2> the Term Loans shall be prepaid (with the amount of such prepayment being applied to prepay the remaining installments of the Term Loans
in the scheduled order of maturity), and </FONT><FONT SIZE=2><I>second</I></FONT><FONT SIZE=2>, after the Term Loans shall have been prepaid in full, the Revolving Credit Commitments shall be reduced
(and, to the extent that there are any Swing Line Loans and Revolving Credit Loans outstanding, the Swing Line Loans and the Revolving Credit Loans shall be prepaid (with the Swing Line Loans to be
prepaid first)) in an aggregate amount equal to the lesser of (i)&nbsp;the amount of such reduction and (ii)&nbsp;the aggregate principal amount of then outstanding Swing Line Loans and Revolving
Credit Loans, </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2>, that no further reduction of the Revolving Credit Commitments shall be required pursuant to this subsection 4.1 once the
Revolving Credit Commitments have been reduced to $50,000,000. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Amounts
to be applied pursuant to this subsection 4.1 to the prepayment of Term Loans and Revolving Credit Loans shall be applied first to reduce outstanding Term
Loans and Revolving Credit Loans which are ABR Loans. Any amounts remaining after such application shall be applied to prepay Term Loans and Revolving Credit Loans which are Eurodollar Loans
immediately and/or shall be deposited in the Prepayment Account (as defined below). The Administrative Agent shall apply any cash deposited in the Prepayment Account (i)&nbsp;allocable to Term Loans
to prepay Term Loans which are
Eurodollar Loans and (ii)&nbsp;allocable to Revolving Credit Loans to prepay Revolving Credit Loans which are Eurodollar Loans, in each case on the last day of the respective Interest Periods
therefor (or, at the direction of the Borrower, on any earlier date) until all outstanding Term Loans and/or Revolving Credit Loans which are Eurodollar Loans have been prepaid or until all cash on
deposit in the Prepayment Account with respect to such Loans has been exhausted. For purposes of this Agreement, the term "</FONT><FONT SIZE=2><I>Prepayment Account</I></FONT><FONT SIZE=2>" shall
mean an account established by the Borrower with the Administrative Agent and over which the Administrative Agent shall have control, including the right of withdrawal for application in accordance
with this subsection 4.1(d). The Administrative Agent will, at the request of the Borrower, invest amounts on deposit in the Prepayment Account in Cash Equivalents that mature prior to the last day of
the applicable Interest Periods of the Eurodollar Loans to be prepaid, </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that (i)&nbsp;the Administrative Agent shall not be required to make
any investment that, in its sole judgment, would require or cause the Administrative Agent to be in, or would result in any, violation of any Requirement of Law and (ii)&nbsp;the Administrative
Agent shall have no obligation to invest amounts on deposit in the Prepayment Account if a Default or Event of Default shall have occurred and be continuing. The Borrower shall indemnify the
Administrative Agent for any losses relating to the investments so that the amount available to prepay Eurodollar Loans on the last day of the applicable Interest Periods therefor is not less than the
amount that would have been available had no investments been made. Other than any interest earned on such investments, the Prepayment Account shall not bear interest. Interest or profits, if any, on
such investments shall be deposited and reinvested and disbursed as described above. The Borrower hereby grants to the Administrative Agent, for its benefit and the benefit of the Lenders, a security
interest in the Prepayment Account and in any Cash Equivalents in which the Administrative Agent has invested any amounts in the Prepayment Account and in the proceeds of each thereof to secure the
Obligations. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>31</FONT></P>

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<P><FONT SIZE=2><A
NAME="li2063_4.2_conversion_and_continuation_options."> </A>
<A NAME="toc_li2063_4"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;4.2</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Conversion and Continuation Options. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a)&nbsp;The Borrower may elect from time to time to convert Eurodollar Loans to ABR Loans by giving the
Administrative Agent at least one Business Day's
prior irrevocable notice of such election, </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that any such conversion of Eurodollar Loans may only be made on the last day of an Interest Period
with respect thereto (or on any other day if on the date of such conversion the Borrower pays to the Administrative Agent for the account of the applicable Lenders accrued interest on such Eurodollar
Loans to the date of such conversion together with all amounts payable under subsection 4.11). The Borrower may elect from time to time to convert ABR Loans to Eurodollar Loans by giving the
Administrative Agent at least three Business Days' prior irrevocable notice of such election. Any such notice of conversion to Eurodollar Loans shall specify the length of the initial Interest Period
or Interest Periods therefor. Upon receipt of any such notice the Administrative Agent shall promptly notify each affected Lender thereof. All or any part of outstanding Eurodollar Loans and ABR Loans
may be converted as provided herein, </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that (i)&nbsp;no Loan may be converted into a Eurodollar Loan when any Event of Default has occurred and
is continuing and the Administrative Agent has or the Required Term Loan Lenders or the Required Revolving Credit Lenders, as the case may be, have determined that such a conversion is not appropriate
and (ii)&nbsp;no Loan may be converted into a Eurodollar Loan after the date that is one month prior to the Revolving Credit Termination Date (in the case of conversions of Revolving Credit Loans)
or the date of the final installment of principal of the Term Loans (in the case of conversions of Term Loans). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Any
Eurodollar Loans may be continued as such upon the expiration of the then current Interest Period with respect thereto by the Borrower giving notice to the
Administrative Agent, in accordance with the applicable provisions of the term "Interest Period" set forth in subsection 1.1, of the length of the next Interest Period to be applicable to such Loans, </FONT> <FONT SIZE=2><I>provided</I></FONT><FONT
SIZE=2> that no Eurodollar Loan may be continued as such (i)&nbsp;when any Event of Default has occurred and is continuing and the Administrative
Agent has or the Required Term Loan Lenders or the Required Revolving Credit Lenders, as the case may be, have determined that such a continuation is not appropriate or (ii)&nbsp;after the date that
is one month prior to the Revolving Credit Termination Date (in the case of continuations of Revolving Credit Loans) or the date of the final installment of principal of the Term Loans (in the case of
continuations of Term Loans) and </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2>, </FONT><FONT SIZE=2><I>further</I></FONT><FONT SIZE=2>, that if the Borrower shall fail to give such notice
or if such continuation is not permitted the affected Eurodollar Loans shall be automatically converted to ABR Loans on the last day of such then expiring Interest Period. </FONT></P>


<P><FONT SIZE=2><A
NAME="li2063_4.3_minimum_amounts_and_maximum_number_of_tranches."> </A>
<A NAME="toc_li2063_5"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;4.3</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Minimum Amounts and Maximum Number of Tranches. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;All borrowings, conversions and continuations of Loans hereunder and all selections of Interest
Periods hereunder shall be in such amounts and be made pursuant
to such elections so that, after giving effect thereto, the aggregate principal amount of the Loans comprising each Eurodollar Tranche shall be equal to $3,000,000 or a whole multiple of $1,000,000 in
excess thereof. In no event shall there be more than 12 Eurodollar Tranches outstanding at any time. </FONT></P>

<P><FONT SIZE=2><A
NAME="li2063_4.4_interest_rates_and_payment_dates."> </A>
<A NAME="toc_li2063_6"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;4.4</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Interest Rates and Payment Dates. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a)&nbsp;Each Eurodollar Loan shall bear interest for each day during each Interest Period with respect thereto
at a rate per annum equal to the Eurodollar
Rate determined for such day plus the Applicable Margin. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Each
ABR Loan shall bear interest at a rate per annum equal to the ABR plus the Applicable Margin. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;If
all or a portion of (i)&nbsp;the principal amount of any Loan, (ii)&nbsp;any interest payable thereon or (iii)&nbsp;any commitment fee or other amount
payable hereunder shall not be paid when due (whether at the stated maturity, by acceleration or otherwise, but taking into account any applicable grace period under subsection 11(a)), such overdue
amount shall bear interest at a rate per annum which is (x)&nbsp;in the case of overdue principal, the rate that would otherwise be applicable thereto pursuant to subsection 4.4(a) or (b), as the
case may be, plus 2% or (y)&nbsp;in the case of overdue interest, commitment fees or other amounts due and payable hereunder, the rate described in subsection 4.4(b) </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>32</FONT></P>

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<P><FONT SIZE=2>
plus 2%, in each case from the date of such non-payment until such amount is paid in full (after as well as before judgment). </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Interest
shall be payable in arrears on each applicable Interest Payment Date and the Revolving Credit Termination Date, </FONT> <FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that interest accruing pursuant to subsection 4.4(c) shall be payable from time
to time on demand. </FONT></P>

<P><FONT SIZE=2><A
NAME="li2063_4.5_computation_of_interest_and_fees."> </A>
<A NAME="toc_li2063_7"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;4.5</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Computation of Interest and Fees. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a)&nbsp;Commitment fees and interest shall be calculated on the basis of a 360-day year for the actual days
elapsed, except that whenever
interest is calculated on the basis of the Prime Rate, interest shall be calculated on the basis of a 365- (or 366-, as the case may be) day year for the actual days elapsed.
The Administrative Agent shall as soon as practicable, notify the Borrower and the affected Lenders of each determination of a Eurodollar Rate. Any change in the interest rate on a Loan resulting from
a change in the ABR or the Eurocurrency Reserve Requirement shall become effective as of the opening of business on the day on which such change becomes effective. The Administrative Agent shall, as
soon as practicable, notify the Borrower and the affected Lenders of the effective date and the amount of each such change in interest rate. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Each
determination of an interest rate by the Administrative Agent pursuant to any provision of this Agreement shall be conclusive and binding on the Borrower and
the Lenders in the absence of manifest error. The Administrative Agent shall, at the request of the Borrower, deliver to the Borrower a statement showing the quotations used by the Administrative
Agent in determining any interest rate pursuant to subsection 4.4(a). </FONT></P>

<P><FONT SIZE=2><A
NAME="li2063_4.6_inability_to_determine_interest_rate."> </A>
<A NAME="toc_li2063_8"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;4.6</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Inability to Determine Interest Rate. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;If prior to the first day of any Interest Period: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;the
Administrative Agent shall have determined (which determination shall be conclusive and binding upon the Borrower) that, by reason of circumstances affecting
the relevant market, adequate and reasonable means do not exist for ascertaining the Eurodollar Rate for such Interest Period, or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;the
Administrative Agent shall have received notice from the Required Term Loan Lenders or the Required Revolving Credit Lenders, as appropriate, that the
Eurodollar Rate determined or to be determined for such Interest Period will not adequately and fairly reflect the cost to such Lenders (as conclusively certified by such Lenders) of making or
maintaining their affected Loans during such Interest Period, </FONT></P>

</UL>

<P><FONT SIZE=2>the
Administrative Agent shall give telecopy or telephonic notice thereof to the Borrower and the affected Lenders as soon as practicable thereafter. If such notice is given (x)&nbsp;any Eurodollar
Loans requested to be made on the first day of such Interest Period shall be made as ABR Loans, (y)&nbsp;any Loans that were to have been converted on the first day of such Interest Period to
Eurodollar Loans shall be continued as ABR Loans and (z)&nbsp;any outstanding Eurodollar Loans shall be converted, on the first day of such Interest Period, to ABR Loans. Until such notice has been
withdrawn by the Administrative Agent or the Required Term Loan Lenders or the Required Revolving Credit Lenders,
as the case may be, no further Eurodollar Loans shall be made or continued as such, nor shall the Borrower have the right to convert ABR Loans to Eurodollar Loans. </FONT></P>

<P><FONT SIZE=2><A
NAME="li2063_4.7_pro_rata_treatment_and_payments."> </A>
<A NAME="toc_li2063_9"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;4.7</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Pro Rata Treatment and Payments. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a)&nbsp;All payments (including prepayments) to be made by the Borrower hereunder, whether on account of
principal, interest, fees or otherwise, shall be
made without set off or counterclaim and shall be made prior to 12:30&nbsp;P.M., New York City time, on the due date thereof to the Administrative Agent, for the account of the Revolving Credit
Lenders or the Term Loan Lenders, as the case may be, at the Administrative Agent's office specified in subsection 13.2, in Dollars and in immediately available funds. Payments received by the
Administrative Agent after such time shall be deemed to have been received on the next Business Day. The Administrative Agent shall distribute such payments to the Lenders entitled to receive the same
promptly upon receipt in like funds as received. If any payment hereunder (other than payments on the Eurodollar Loans) becomes </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>33</FONT></P>

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<P><FONT SIZE=2>
due and payable on a day other than a Business Day, such payment shall be extended to the next succeeding Business Day, and, with respect to payments of principal, interest thereon shall be payable at
the then applicable rate during such extension. If any payment on a Eurodollar Loan becomes due and payable on a day other than a Business Day, the maturity thereof shall be extended to the next
succeeding Business Day (and, with respect to payments of principal, interest shall be payable thereon at the then applicable rate during such extension) unless the result of such extension would be
to extend such payment into another calendar month, in which event such payment shall be made on the immediately preceding Business Day. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Unless
the Administrative Agent shall have been notified in writing by any Lender prior to a borrowing that such Lender will not make the amount that would
constitute its portion of such borrowing available to the Administrative Agent, the Administrative Agent may assume that such Lender is making such amount available to the Administrative Agent, and
the Administrative Agent may, in reliance upon such assumption, make available to the Borrower a corresponding amount. If such amount is not made available to the Administrative Agent by the required
time on the Borrowing Date therefor, such Lender shall pay to the Administrative Agent, on demand, such amount with interest thereon at a rate equal to the daily average Federal Funds Effective Rate
for the period until such Lender makes such amount immediately available to the Administrative Agent. A certificate of the Administrative Agent submitted to any Lender with respect to any amounts
owing under this subsection shall be conclusive in the absence of manifest error. If such Lender's portion of such borrowing is not made available to the Administrative Agent by such Lender within
three Business Days of such Borrowing Date, the Administrative Agent shall also be entitled to recover such amount with interest thereon at the rate per annum applicable to ABR Loans hereunder, on
demand, from the Borrower, without prejudice to any right or claim the Borrower may have against such Lender. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Each
borrowing by the Borrower of Term Loans and Revolving Credit Loans shall be made ratably from the Term Loan Lenders and Revolving Credit Lenders, respectively,
in accordance with their respective Term Loan Commitment Percentages and Revolving Credit Commitment Percentages. Any
reduction of the Revolving Credit Commitments shall be made ratably among the Revolving Credit Lenders, in accordance with their respective Revolving Credit Commitment Percentages. </FONT></P>


<P><FONT SIZE=2><A
NAME="li2063_4.8_illegality."> </A>
<A NAME="toc_li2063_10"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;4.8</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Illegality. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Notwithstanding any other provision herein, if the adoption of or any change in any Requirement of Law or in the interpretation or
application thereof
occurring after the date hereof shall make it unlawful for any Lender to make or maintain Eurodollar Loans as contemplated by this Agreement, (a)&nbsp;the commitment of such Lender hereunder to make
Eurodollar Loans, continue Eurodollar Loans as such and convert ABR Loans to Eurodollar Loans shall forthwith be suspended until such time as it shall no longer be unlawful for such Lender to make or
maintain Eurodollar Loans as contemplated by this Agreement and (b)&nbsp;such Lender's Loans then outstanding as Eurodollar Loans, if any, shall be converted automatically to ABR Loans on the
respective last days of the then current Interest Periods with respect to such Loans or within such earlier period as required by law. If any such conversion of a Eurodollar Loan occurs on a day which
is not the last day of the then current Interest Period with respect thereto, the Borrower shall pay to such Lender such amounts, if any, as may be required pursuant to subsection 4.11. </FONT></P>

<P><FONT SIZE=2><A
NAME="li2063_4.9_requirements_of_law."> </A>
<A NAME="toc_li2063_11"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;4.9</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Requirements of Law. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a)&nbsp;If the adoption of or any change in any Requirement of Law or in the interpretation or application thereof or
compliance by any Lender with any
request or directive (whether or not having the force of law) from any central bank or other Governmental Authority, in each case made subsequent to the date hereof: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;shall
subject any Lender to any tax of any kind whatsoever with respect to this Agreement, any Note, any Letter of Credit, any Application or any Eurodollar Loan
made by it, or change the basis of taxation of payments to such Lender in respect thereof (except for Non-Excluded Taxes and changes in the rate of tax on the overall net income of such
Lender); </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>34</FONT></P>

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<UL>

<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;shall impose, modify or hold applicable any reserve, special deposit, compulsory loan or similar requirement against assets held by, deposits or other liabilities
in or for the account of, advances, loans or other extensions of credit by, or any other acquisition of funds by, any office of such Lender which is not otherwise included in the determination of the
Eurodollar Rate hereunder; or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;shall
impose on such Lender any other condition; </FONT></P>

</UL>

<P><FONT SIZE=2>and
the result of any of the foregoing is to increase the cost to such Lender, by an amount which such Lender deems to be material, of making, converting into, continuing or maintaining Eurodollar
Loans
or issuing or participating in Letters of Credit or to reduce any amount receivable hereunder in respect thereof, then, in any such case, the Borrower shall, within 10 Business Days after receipt by
the Borrower of such Lender's written demand (with a copy to the Administrative Agent), pay such Lender such additional amount or amounts as will compensate such Lender for such increased cost or
reduced amount receivable. If any Lender has demanded compensation under this subsection 4.9(a) with respect to any Eurodollar Loan, the Borrower shall have the option to convert immediately such
Eurodollar Loan into an ABR Loan until the circumstances giving rise to such demand for compensation no longer apply, </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2>, that (i)&nbsp;no such
conversion shall affect the Borrower's obligation to pay compensation as provided herein which is due with respect to the period prior to such conversion and (ii)&nbsp;on the date of such conversion
the Borrower shall pay to the Administrative Agent for the benefit of the relevant Lender accrued interest on such Eurodollar Loan to the date of conversion, together with any amounts payable pursuant
to subsection 4.11. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;If
any Lender shall have determined that the adoption of or any change in any Requirement of Law regarding capital adequacy or in the interpretation or application
thereof or compliance by such Lender or any corporation controlling such Lender with any request or directive regarding capital adequacy (whether or not having the force of law) from any Governmental
Authority, in each case made subsequent to the date hereof, shall have the effect of reducing the rate of return on such Lender's or such corporation's capital as a consequence of its obligations
hereunder or under any Letter of Credit to a level below that which such Lender or such corporation could have achieved but for such adoption, change or compliance (taking into consideration such
Lender's or such corporation's policies with respect to capital adequacy) by an amount deemed by such Lender to be material, then from time to time, within 10 Business Days after receipt by the
Borrower of such Lender's written demand (with a copy to the Administrative Agent), the Borrower shall pay to such Lender such additional amount or amounts as will compensate such Lender for such
reduction. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;If
any Lender becomes entitled to claim any additional amounts pursuant to subsection 4.9(a) or (b), it shall promptly notify the Borrower (with a copy to the
Administrative Agent) of the event by reason of which it has become so entitled. A certificate as to any additional amounts payable pursuant to this subsection submitted by such Lender to the Borrower
(with a copy to the Administrative Agent) shall be conclusive in the absence of manifest error. The Borrower shall not be obligated to compensate any Lender pursuant to this subsection 4.9 for amounts
accruing prior to the date which is 180&nbsp;days (</FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2>, if the circumstances giving rise to such claim have a retroactive effect, then such
180&nbsp;day period shall be extended to include the period of such retroactive effect) before the date such Lender notifies the Borrower of the event by reason of which it has become entitled to
additional amounts pursuant to subsection 4.9(a) or (b), </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that such notice need not include a computation of amounts in respect thereof. The
agreements in this subsection shall survive the termination of this Agreement and the payment of the Loans and all other amounts payable hereunder. </FONT></P>

<P><FONT SIZE=2><A
NAME="li2063_4.10_taxes."> </A>
<A NAME="toc_li2063_12"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;4.10</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Taxes. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a)&nbsp;Except as required by law, all payments made by the Borrower under this Agreement and any Notes shall be made free and clear of,
and without
deduction or withholding for or on account of, any present or future income, stamp or other taxes, levies, imposts, duties, charges, fees, deductions or withholdings, now or hereafter imposed, levied,
collected, withheld or assessed by any </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>35</FONT></P>

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<P><FONT SIZE=2>
Governmental Authority, excluding taxes imposed on the Administrative Agent or any Lender (or Transferee) as a result of any future, present or former connection between the Administrative Agent or
such Lender (or Transferee) and the jurisdiction of the Governmental Authority imposing such tax or any political subdivision or taxing authority thereof or therein (other than any such connection
arising solely from the Administrative Agent or such Lender (or Transferee) having executed, delivered or performed its obligations or received a payment under, or enforced, this Agreement or any Note
or any other Loan Document). If any such non-excluded taxes, levies, imposts, duties, charges, fees deductions or withholdings ("</FONT><FONT SIZE=2><I>Non-Excluded
Taxes</I></FONT><FONT SIZE=2>") are required to be withheld from any amounts payable to the Administrative Agent or any Lender (or Transferee) hereunder or under any Note, the amounts so payable to
the Administrative Agent or such Lender (or Transferee) shall be increased ("increased amounts") to the extent necessary to yield to the Administrative Agent or such Lender (or Transferee) (after
payment of all Non-Excluded Taxes) interest or any such other amounts payable hereunder at the rates or in the amounts specified in this Agreement, </FONT><FONT SIZE=2><I>provided,
however</I></FONT><FONT SIZE=2>, that the Borrower shall not be required to pay any increased amounts in the circumstances described in subparagraph (c)&nbsp;of this subsection. Whenever any
Non-Excluded Taxes are payable by the Borrower under the provisions of this subsection 4.10, the Borrower shall (i)&nbsp;pay such Taxes when due and (ii)&nbsp;promptly send to the
Administrative Agent for its own account or for the account of such Lender (or Transferee), as the case may be, a certified copy of an original official receipt received by the Borrower showing
payment thereof or other evidence of remittance of Non-Excluded Taxes reasonably acceptable to the Administrative Agent. If the Borrower fails to comply with clauses (i)&nbsp;or
(ii)&nbsp;of the previous sentence, the Borrower shall indemnify the Administrative Agent and the Lenders for any incremental taxes, interest or penalties that may become payable by the
Administrative Agent or any Lender as a result of any such failure including the amount of Non-Excluded Taxes paid by such Lender (or Transferee) or the Administrative Agent, as the case
may be, and any liability (including penalties, interest and expenses) arising therefrom or with respect thereto. The agreements in this subsection 4.10 shall survive the termination of this Agreement
and the payment of the Loans and all other amounts payable hereunder. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Each
Lender (and each Transferee) that is not incorporated or organized under the laws of the United States of America or a state thereof shall: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;in
the case of a Lender or Assignee that is a "bank" under Section&nbsp;881(c)(3)(A) of the Code, or any Loan Participant; </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;on
or before the date it becomes a party to this Agreement (or, in the case of a Loan Participant, on or before the date such Loan Participant becomes a Loan
Participant hereunder) and on or before the date, if any, such Lender (or Transferee) changes its applicable lending office by designating a different lending office (a "</FONT><FONT SIZE=2><I>New
Lending Office</I></FONT><FONT SIZE=2>") deliver to the Borrower and the Administrative Agent (or, in the case of a Participant, the Lender from which such participation was acquired) two properly
completed and duly executed copies of United States Internal Revenue Service Form&nbsp;W-8ECI or W-8BEN, or successor applicable form, as the case may be; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;deliver
to the Borrower and the Administrative Agent (or, in the case of a Participant, the Lender from which such participation was acquired) two further properly
completed and duly executed copies of any such form or certification on or before the date that any such form or certification expires or becomes obsolete and after the occurrence of any event
requiring a change in the most recent form previously delivered by it to the Borrower (or, in the case of a Participant, the Lender from which such participation was acquired) or upon the request of
the Borrower or the Administrative Agent (or, in the case of a Participant, the Lender from which such participation was acquired); and </FONT></P>

</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>36</FONT></P>

<HR NOSHADE>
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<A NAME="page_li2063_1_37"> </A>
<UL>
<UL>

<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;obtain such extensions of time for filing and completing such forms or certifications as may reasonably be requested by the Borrower (or, in the case of a
Participant, the Lender from which such participation was acquired); </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;in
the case of a Lender or Assignee that is not a "bank" under Section&nbsp;881(c)(3)(A) of the Code: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;on
or before the date it becomes a party to this Agreement deliver to the Borrower and the Administrative Agent (I)&nbsp;a certificate in the form of </FONT> <FONT SIZE=2><I>Exhibit&nbsp;I</I></FONT><FONT SIZE=2> (an "</FONT><FONT SIZE=2><I>Exemption
Certificate</I></FONT><FONT SIZE=2>") certifying under penalties of perjury that such Lender is
eligible for a complete exemption from withholding on any payment hereunder under Section&nbsp;881(c) of the Code and (II)&nbsp;a properly completed and duly executed Internal Revenue Service
Form&nbsp;W-8BEN or Form&nbsp;W-8ECI or applicable successor form; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;deliver
to the Borrower and the Administrative Agent two further properly completed and duly executed copies of said Exemption Certificate at least annually and
said Form&nbsp;W-8BEN or Form&nbsp;W-8ECI, or any successor applicable form on or before the date that any such form expires or becomes obsolete or, in either case, after
the occurrence of any event requiring a change in the most recent form previously delivered by it to the Borrower or upon the request of the Borrower; and </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;obtain
such extensions of time for filing and completing such forms or certifications as may be reasonably requested by the Borrower or the Administrative Agent; </FONT></P>

</UL>
</UL>

<P><FONT SIZE=2>and
each Lender (or Transferee) that is incorporated or organized under the laws of the United States of America or a state thereof shall provide two properly completed and duly executed copies of
Form&nbsp;W-9, or successor applicable form, at the times specified for delivery of forms under paragraph&nbsp;(b)(i)&nbsp;of this subsection unless, in any such case, any change in
law or regulation has occurred subsequent to the date such Lender (or Transferee) became a party to this Agreement (or in the case of a Loan Participant, the date such Loan Participant became a Loan
Participant hereunder) which renders all such forms inapplicable or which would prevent such Lender (or Transferee) from properly completing and executing any such form with respect to it and such
Lender (or Transferee) so advises
the Borrower and the Administrative Agent in writing no later than 15 calendar days before any payment hereunder or under any Note is due. Each such Lender (and each Transferee) shall certify
(i)&nbsp;in the case of a Form&nbsp;W-8BEN or W-8ECI, that it is entitled to an exemption from, or reduction in, withholding of any United States federal income taxes with
respect to payments under this Agreement and (ii)&nbsp;in the case of a Form&nbsp;W-8BEN, Form&nbsp;W-8ECI or W-9, that it is entitled to an exemption from
United States backup withholding tax. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The
Borrower shall not be required to indemnify any Lender (or Transferee), or to pay any increased amounts to any Lender (or Transferee) in respect of any
Non-Excluded Tax, pursuant to this subsection 4.10 to the extent that (i)&nbsp;any obligation to withhold or deduct amounts with respect to taxes existed on the date such Lender (or
Transferee) became a party to this Agreement (or, in the case of a Loan Participant, on the date such Loan Participant became a Loan Participant hereunder) or, with respect to payments to a New
Lending Office, the date such Lender (or Transferee) designated such New Lending Office with respect to a Loan, </FONT><FONT SIZE=2><I>provided, however</I></FONT><FONT SIZE=2>, that this
clause&nbsp;(i) shall not apply to any Transferee or New Lending Office that becomes a Transferee or New Lending Office as a result of an assignment, participation, transfer or designation made at
the written request of the Borrower, or (ii)&nbsp;any Lender (or Transferee) fails to comply in full with the provisions of subsection 4.10(b) hereof. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;If
the Administrative Agent or any Lender (or Transferee) receives a refund in respect of Non-Excluded Taxes paid by the Borrower, which in the good
faith judgment of such Lender is allocable to such payment, it shall promptly pay such refund, together with any other amounts paid by the Borrower in connection with such refunded
Non-Excluded Taxes, to the Borrower, net of all </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>37</FONT></P>

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<P><FONT SIZE=2>
out-of-pocket expenses of such Lender incurred in obtaining such refund, </FONT><FONT SIZE=2><I>provided, however,</I></FONT><FONT SIZE=2> that the Borrower agrees to promptly
return such refund to the Administrative Agent or the applicable Lender (or Transferee), as the case may be, if it receives notice from the Administrative Agent or applicable Lender (or Transferee)
that such Administrative Agent or Lender (or Transferee) is required to repay such refund. </FONT></P>

<P><FONT SIZE=2><A
NAME="li2063_4.11_indemnity."> </A>
<A NAME="toc_li2063_13"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;4.11</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Indemnity. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The Borrower agrees to indemnify each Lender and to hold each Lender harmless from any loss or expense (other than the loss of any
payments in respect of the
Applicable Margin) which such Lender may sustain or incur as a consequence of (a)&nbsp;default by the Borrower in making a borrowing of, conversion into or continuation of Eurodollar Loans after the
Borrower has given a notice requesting the same in accordance with the provisions of this Agreement, (b)&nbsp;default by the Borrower in making any prepayment of a Eurodollar Loan after the Borrower
has given a notice thereof in accordance with the provisions of this Agreement or (c)&nbsp;the making of a prepayment of Eurodollar Loans or converting any Eurodollar Loans to ABR Loans on a day
which is not the last day of an Interest Period with respect thereto. Such indemnification may include an amount equal to the excess, if any, of (i)&nbsp;the amount of interest which would have
accrued on the amount so prepaid, or not so borrowed, converted or continued, for the period from the date of such prepayment or of such failure to borrow, convert or continue to the last day of such
Interest Period (or, in the case of a failure to borrow, convert or continue, the Interest Period that would have commenced on the date of such failure) in each case at
the applicable rate of interest for such Loans provided for herein (excluding, however, the Applicable Margin included therein, if any) over (ii)&nbsp;the amount of interest (as reasonably
determined by such Lender) which would have accrued to such Lender on such amount by placing such amount on deposit for a comparable period with leading banks in the interbank eurodollar market. This
covenant shall survive the termination of this Agreement and the payment of the Loans and all other amounts payable hereunder. </FONT></P>

<P><FONT SIZE=2><A
NAME="li2063_4.12_change_of_lending_office;__4.102305"> </A>
<A NAME="toc_li2063_14"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;4.12</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Change of Lending Office; Filing of Certificates or Documents. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Each Lender agrees that if it makes any demand for payment, or becomes entitled to
any increased amounts, under subsection 4.8, 4.10 or 4.11(a) or if any
adoption or change of the type described in subsection 4.9 shall occur with respect to it, it will use reasonable efforts (consistent with its internal policy and legal and regulatory restrictions and
so long as such efforts would not be disadvantageous to it, as determined in its sole discretion) to designate a New Lending Office or file any certificate or document reasonably requested in writing
by the Borrower if such action would reduce or obviate the need for the Borrower to make payments under subsection 4.8, 4.10 or 4.11(a) or would eliminate or reduce the effect of any adoption or
change described in subsection 4.9. </FONT></P>

<P><FONT SIZE=2><A
NAME="li2063_4.13_replacement_lenders."> </A>
<A NAME="toc_li2063_15"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;4.13</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Replacement Lenders. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;In the event that the Borrower becomes obligated to pay additional amounts or increased amounts to, or receives notice from,
 any Lender pursuant to subsection
4.8, 4.9 or 4.10 then, unless such Lender has theretofore removed or cured the conditions which result in the obligation to pay such additional amounts or increased amounts, the Borrower may, on ten
Business Days' prior written notice to the Administrative Agent and such Lender, cause such Lender to (and such Lender shall) assign pursuant to subsection 13.6(c) all of its rights and obligations
under this Agreement to another bank or financial institution which is willing to become a Lender and is acceptable (which acceptance shall not be unreasonably withheld) to the Administrative Agent,
for a purchase price equal to the outstanding principal amount of the Loans payable to such Lender plus any accrued but unpaid interest on such Loans, any accrued but unpaid commitment fees in respect
of such Lender's Commitment and any other amounts payable to such Lender under this Agreement (including, without limitation, amounts payable under subsection 4.11). </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>38</FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="li2063_section_5._representations_and_warranties"> </A>
<A NAME="toc_li2063_16"> </A>
<BR></FONT><FONT SIZE=2>SECTION 5. REPRESENTATIONS AND WARRANTIES    <BR></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;To
induce the Administrative Agent and the Lenders to enter into this Agreement and to make the Loans and issue or participate in the Letters of Credit, Holdings and the Borrower
hereby jointly and severally represent and warrant to the Administrative Agent and each Lender that: </FONT></P>

<P><FONT SIZE=2><A
NAME="li2063_5.1_financial_condition."> </A>
<A NAME="toc_li2063_17"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;5.1</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Financial Condition. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The consolidated balance sheet of Holdings and its consolidated Subsidiaries as at December&nbsp;29, 2000 and the related
consolidated statements of
operations and of cash flows for the fiscal year ended on such date, reported on by Ernst&nbsp;&amp; Young LLP, copies of which have heretofore been furnished to each Lender, are complete and correct
and present fairly the consolidated financial condition of Holdings and its consolidated Subsidiaries as at such date, and the consolidated results of their operations and their consolidated cash
flows for the fiscal year then ended. The unaudited consolidated balance sheet of Holdings and its consolidated Subsidiaries as at March&nbsp;30, 2001 and June&nbsp;29, 2001 and the related
unaudited consolidated statements of operations and of cash flows for the three-month period ended on such date, certified by a Responsible Officer, copies of which have heretofore been furnished to
each Lender, are complete and correct and present fairly the consolidated financial condition of Holdings and its consolidated Subsidiaries as at such date, and the consolidated results of their
operations and their consolidated cash flows for the three-month period then ended (subject to normal year-end audit adjustments). All such financial statements, including the related
schedules thereto, have been prepared in accordance with GAAP applied consistently throughout the periods involved (except as approved by such accountants and as disclosed therein). Neither Holdings
nor any of its consolidated Subsidiaries had, at the date of the most recent balance sheet referred to above, any material Guarantee Obligation, contingent liability or liability for taxes, or any
long-term lease or unusual forward or long-term commitment, including, without limitation, any interest rate or foreign currency swap or exchange transaction, which is not
reflected in the foregoing statements or in the notes thereto. During the period from December&nbsp;29, 2000 to and including the date of this Agreement there has been no sale, transfer or other
disposition by Holdings or any of its consolidated Subsidiaries of any material part of its or their business or property and no purchase or other acquisition of any business or property (including
any Capital Stock of any other Person) material in relation to the consolidated financial condition of Holdings and its consolidated Subsidiaries at December&nbsp;29, 2000. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>39</FONT></P>

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<P><FONT SIZE=2><A
NAME="page_lk2063_1_40"> </A> </FONT></P>

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<P><FONT SIZE=2><A
NAME="lk2063_5.2_no_change."> </A>
<A NAME="toc_lk2063_1"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;5.2</FONT><FONT SIZE=2><I>&nbsp;&nbsp;No Change. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a)&nbsp;Since December&nbsp;29, 2000, there has been no development or event which has had or could reasonably be expected to have a
Material Adverse
Effect, and (b)&nbsp;during the period from December&nbsp;29, 2000 to and including the date of this Agreement no dividends or other distributions have been declared, paid or made upon the Capital
Stock of Holdings nor has any of the Capital Stock of Holdings been redeemed, retired, purchased or otherwise acquired for value by Holdings or any of its Subsidiaries. </FONT></P>


<P><FONT SIZE=2><A
NAME="lk2063_5.3_corporate_existence;_compliance_with_law."> </A>
<A NAME="toc_lk2063_2"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;5.3</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Corporate Existence; Compliance with Law. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Each Loan Party (a)&nbsp;is duly organized, validly existing and in good standing under the laws of the
jurisdiction of its organization, (b)&nbsp;has the
corporate power and authority to own and operate its property, to lease the property it operates as lessee and to conduct the business in which it is currently engaged, (c)&nbsp;is duly qualified or
licensed to do business as a foreign corporation and in good standing under the laws of each jurisdiction where its ownership, lease or operation of property or the conduct of its business requires
such qualification except where the failure to be so qualified and/or in good standing, in the aggregate is not reasonably likely to have a Material Adverse Effect and (d)&nbsp;is in compliance with
all Requirements of Law except to the extent that the failure to comply therewith is not, in the aggregate, reasonably likely to have a Material Adverse Effect. </FONT></P>

<P><FONT SIZE=2><A
NAME="lk2063_5.4_corporate_power;_au__lk202226"> </A>
<A NAME="toc_lk2063_3"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;5.4</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Corporate Power; Authorization; Enforceable Obligations. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Each Loan Party has the corporate power and authority, and the legal right, to make,
deliver and perform the Loan Documents to which it is a party and, in the
case of the Borrower, to borrow hereunder. Each Loan Party has taken all necessary corporate action to authorize the Extensions of Credit on the terms and conditions of this Agreement and any Notes
and to authorize the execution, delivery and performance by it of the Loan Documents to which it is a party. No consent or authorization of, filing with, notice to or other act by or in respect of,
any Governmental Authority or any other Person is required to be obtained or made by any Loan Party in connection with the Extensions of Credit hereunder or with the execution, delivery or performance
by each applicable Loan Party or the validity or enforceability with respect to or against any Loan Party of the Loan Documents to which it is a party. This Agreement has been, and each other Loan
Document will be, duly executed and delivered on behalf of each Loan Party that is a party thereto. This Agreement constitutes, and each other Loan Document when executed and delivered will
constitute, a legal, valid and binding obligation of each Loan Party that is a party thereto enforceable against such Loan Party in accordance with its terms, except as enforceability may be limited
by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors' rights generally and by general equitable principles (whether enforcement is
sought by proceedings in equity or at law). </FONT></P>

<P><FONT SIZE=2><A
NAME="lk2063_5.5_no_legal_bar."> </A>
<A NAME="toc_lk2063_4"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;5.5</FONT><FONT SIZE=2><I>&nbsp;&nbsp;No Legal Bar. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The execution, delivery and performance of the Loan Documents, the Extensions of Credit hereunder and the use of the proceeds
thereof will not violate any
Requirement of Law or Contractual Obligation of any Loan Party and will not result in, or require, the creation or imposition of any Lien on any of its
or their respective properties or revenues pursuant to any such Requirement of Law or Contractual Obligation other than as contemplated in or permitted by the Loan Documents. </FONT></P>

<P><FONT SIZE=2><A
NAME="lk2063_5.6_no_material_litigation."> </A>
<A NAME="toc_lk2063_5"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;5.6</FONT><FONT SIZE=2><I>&nbsp;&nbsp;No Material Litigation. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;No litigation, investigation or proceeding of or before any arbitrator or Governmental Authority is pending or, to the
knowledge of the Borrower, threatened by
or against any Loan Party or against any of their respective properties or revenues (a)&nbsp;with respect to any of the Loan Documents or any of the transactions contemplated hereby or thereby or
(b)&nbsp;which has a reasonable possibility of an adverse determination, and if adversely determined, is reasonably likely to have a Material Adverse Effect. </FONT></P>

<P><FONT SIZE=2><A
NAME="lk2063_5.7_no_default."> </A>
<A NAME="toc_lk2063_6"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;5.7</FONT><FONT SIZE=2><I>&nbsp;&nbsp;No Default. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;No Loan Party is in default under or with respect to any of its Contractual Obligations in any respect which is reasonably likely to
have a Material Adverse
Effect. No Default or Event of Default has occurred and is continuing. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>40</FONT></P>

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<P><FONT SIZE=2><A
NAME="lk2063_5.8_ownership_of_property;_liens."> </A>
<A NAME="toc_lk2063_7"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;5.8</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Ownership of Property; Liens. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Each Loan Party has good record and marketable title in fee simple to, or a valid leasehold interest in, all its
real property except for such matters as do
not materially adversely affect the use of the property in the conduct of the business as currently conducted, and good title to, or a valid leasehold interest in, all its other material property, and
none of such property is subject to any Lien except as permitted by subsection 8.3. </FONT></P>

<P><FONT SIZE=2><A
NAME="lk2063_5.9_intellectual_property."> </A>
<A NAME="toc_lk2063_8"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;5.9</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Intellectual Property. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a)&nbsp;Each Loan Party owns, or is licensed to use, all material Intellectual Property necessary for the conduct of its
business except for those the
failure to own or license which is not reasonably likely to have a Material Adverse Effect and (b)&nbsp;no claim of which Holdings or the Borrower has been given notice has been asserted and is
pending by any Person challenging or questioning the use of any such Intellectual Property or the validity or effectiveness of any such Intellectual Property, nor does Holdings or the Borrower know of
any valid basis for any such claim, except for such claims that, in the aggregate, are not reasonably likely to have a Material Adverse Effect. </FONT></P>

<P><FONT SIZE=2><A
NAME="lk2063_5.10_no_burdensome_restrictions."> </A>
<A NAME="toc_lk2063_9"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;5.10</FONT><FONT SIZE=2><I>&nbsp;&nbsp;No Burdensome Restrictions. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;No Requirement of Law or Contractual Obligation applicable to any Loan Party is reasonably likely to have a Material
Adverse Effect. </FONT></P>

<P><FONT SIZE=2><A
NAME="lk2063_5.11_taxes."> </A>
<A NAME="toc_lk2063_10"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;5.11</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Taxes. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Holdings and the Borrower and its Subsidiaries have filed or caused to be filed all tax returns which, to the knowledge of Holdings and
its Subsidiaries, are
required to be filed in respect of periods subsequent to the Closing Date and have paid all taxes shown to be due and payable on said returns or on any assessments made against it or any of its
property in respect of such periods and all other material taxes imposed on it or any of its property by any Governmental Authority (other than any taxes the amount or validity of which are being
contested in good faith by appropriate proceedings and with respect to which reserves in conformity with GAAP have been provided on the books of the applicable Loan Party and other than any taxes
which in the aggregate would not have a Material Adverse Effect as the case may be) in respect of such periods; no tax lien has been filed (except as permitted by subsection 8.3). </FONT></P>

<P><FONT SIZE=2><A
NAME="lk2063_5.12_federal_regulations."> </A>
<A NAME="toc_lk2063_11"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;5.12</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Federal Regulations. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;No part of the proceeds of any Extension of Credit will be used for "purchasing" or "carrying" any "margin stock" within the
respective meanings of each of the
quoted terms under Regulation&nbsp;U. If requested by any Lender or the Administrative Agent, the Borrower will furnish to the Administrative Agent and each Lender a statement to the foregoing
effect in conformity with the requirements of FR Form&nbsp;G-3 or FR Form&nbsp;U-1 referred to in Regulation&nbsp;U. </FONT></P>

<P><FONT SIZE=2><A
NAME="lk2063_5.13_erisa."> </A>
<A NAME="toc_lk2063_12"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;5.13</FONT><FONT SIZE=2><I>&nbsp;&nbsp;ERISA. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Neither a Reportable Event nor an "accumulated funding deficiency" (within the meaning of Section&nbsp;412 of the Code or
Section&nbsp;302 of ERISA) has
occurred during the five-year period prior to the date on which this representation is made or deemed made with respect to any Plan, and each Plan has complied in all material respects
with the applicable provisions of ERISA and the Code, except where, in connection with any such event or non-compliance, the liability which would be likely to result is not reasonably
likely to have a Material Adverse Effect. No termination of a Single Employer Plan has occurred except where, in connection with any such termination, the liability which would be likely to result is
not reasonably likely to have a Material Adverse Effect, and no Lien (except as permitted by subsection 8.3) which remains unsatisfied in favor of the PBGC or a Plan has arisen, during such
five-year period. The present value of all accrued benefits under each Single Employer Plan (based on those assumptions used to fund such Plans) did not, as of the last annual valuation
date prior to the date on which this representation is made or deemed made, exceed the value of the assets of such Plan allocable to such accrued benefits by an amount in excess of $15,000,000.
Neither the Borrower nor any Commonly Controlled Entity has had a complete or partial withdrawal from any Multiemployer Plan; neither the Borrower nor any Commonly Controlled Entity would become
subject to any liability under ERISA if the Borrower or any such Commonly Controlled Entity were to withdraw completely from all Multiemployer Plans as of the valuation date most closely preceding the
date on which this representation is made or deemed made; and no such Multiemployer Plan is in </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>41</FONT></P>

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<P><FONT SIZE=2>
Reorganization or Insolvent, except where, in any such case, the liability which would be likely to result is not reasonably likely to have a Material Adverse Effect. </FONT></P>

<P><FONT SIZE=2><A
NAME="lk2063_5.14_investment_company_act;_other_regulations."> </A>
<A NAME="toc_lk2063_13"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;5.14</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Investment Company Act; Other Regulations. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;No Loan Party is, or is "controlled" by, an "investment company" within the meaning of the Investment
Company Act of 1940, as amended. The Borrower is not
subject to regulation under any Federal or State statute or regulation (other than Regulation&nbsp;X of the Board of Governors) which limits its ability to incur Indebtedness as contemplated herein. </FONT></P>

<P><FONT SIZE=2><A
NAME="lk2063_5.15_subsidiaries."> </A>
<A NAME="toc_lk2063_14"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;5.15</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Subsidiaries. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The Subsidiaries of Holdings and the Borrower, as set forth in </FONT><FONT SIZE=2><I>Schedule&nbsp;5.15</I></FONT><FONT SIZE=2>,
constitute all the
Subsidiaries of Holdings and the Borrower as of the Closing Date. The Material Subsidiaries of the Borrower, as set forth in </FONT><FONT SIZE=2><I>Schedule&nbsp;5.15</I></FONT><FONT SIZE=2>,
constitute all the Material Subsidiaries of the Borrower as of the Closing Date. </FONT></P>

<P><FONT SIZE=2><A
NAME="lk2063_5.16_purpose_of_loans."> </A>
<A NAME="toc_lk2063_15"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;5.16</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Purpose of Loans. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The proceeds of the Term Loans shall be used by the Borrower to refinance and repurchase existing indebtedness of the Borrower
under the Existing Credit
Agreement. The proceeds of the Revolving Credit Loans shall be used by the Borrower (i)&nbsp;to refinance and repurchase existing indebtedness of the Borrower under the Existing Credit Agreement,
(ii)&nbsp;for general corporate purposes, including working capital needs, of the Borrower and its Subsidiaries in the ordinary course of business, (iii)&nbsp;for acquisitions permitted under this
Agreement and (iv)&nbsp;for Investments permitted under this Agreement (including in Joint Ventures). </FONT></P>

<P><FONT SIZE=2><A
NAME="lk2063_5.17_environmental_matters."> </A>
<A NAME="toc_lk2063_16"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;5.17</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Environmental Matters. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Except to the extent that the inaccuracy of any of the following (or the circumstances giving rise to such inaccuracy),
individually or in the aggregate, is
not reasonably likely to have a Material Adverse Effect: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The
facilities and properties owned (including without limitation the Mortgaged Properties), leased or operated by the Borrower or any of its Subsidiaries (the
"</FONT><FONT SIZE=2><I>Properties</I></FONT><FONT SIZE=2>") do not contain any Hazardous Materials in amounts or concentrations which (i)&nbsp;constitute a violation of, or (ii)&nbsp;could give
rise to any liability under, any Environmental Law or could interfere with the continued operation of the Properties or could reasonably be expected to impair the fair saleable value thereof. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The
Borrower and its Subsidiaries and the Properties are in compliance, and to the knowledge of the Borrower and its Subsidiaries have in the last three years been
in compliance with all applicable Environmental Laws and applicable Environmental Permits, and the Borrower and its Subsidiaries reasonably believe that they will be able to comply with all applicable
Environmental Laws in the future and renew or obtain all Environmental Permits necessary for their operations in the future. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Hazardous
Materials have not been transported, disposed of, emitted, discharged, or otherwise released or threatened to be released, nor has their disposal been
arranged for, (i)&nbsp;by the Borrower or any of its Subsidiaries in violation of, or (ii)&nbsp;in a manner or to a location which is reasonably likely to give rise to liability under, any
applicable Environmental Law; nor have any Hazardous Materials been generated, treated, stored, emitted, discharged or otherwise released or threatened to be released or
disposed of at, on or under any of the Properties in violation of, or in a manner that could reasonably be expected to give rise to liability under, any applicable Environmental Law. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;No
judicial proceeding or governmental or administrative action is pending or, to the knowledge of the Borrower or any of its Subsidiaries, threatened, under any
Environmental Law to which the Borrower or any Subsidiary is or to the knowledge of the Borrower or any of its Subsidiaries will be named as a party, nor are there any consent decrees or other
decrees, consent orders, administrative orders or other orders, or other administrative or judicial requirements </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>42</FONT></P>

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<UL>

<P><FONT SIZE=2>
outstanding under any Environmental Law with respect to the Borrower or any of its Subsidiaries, or the Properties or the Business. </FONT></P>

</UL>

<P><FONT SIZE=2><A
NAME="lk2063_5.18_accuracy_of_information."> </A>
<A NAME="toc_lk2063_17"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;5.18</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Accuracy of Information. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The factual statements and information contained in the Confidential Information Memorandum dated September&nbsp;2001
relating to Holdings and its
Subsidiaries (as the same may be supplemented in writing through the Closing Date, the "</FONT><FONT SIZE=2><I>Information Memorandum</I></FONT><FONT SIZE=2>"), when taken as a whole, were, as of the
date of such Information Memorandum or the dates otherwise specified therein or written supplements thereto, accurate in all material respects and did not contain any untrue statement of a material
fact or omit to state any material fact necessary to make the statements therein not misleading in light of the circumstances under which such statements were made, provided that to the extent any
such information therein was based upon or constitutes a forecast or projection or pro forma financial information, Holdings and the Borrower represent only that such forecasts or projections or pro
forma financial information were based upon good faith estimates and assumptions believed by management of the Borrower to be reasonable at the time made. </FONT></P>

<P><FONT SIZE=2><A
NAME="lk2063_5.19_solvency."> </A>
<A NAME="toc_lk2063_18"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;5.19</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Solvency. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;As of the Closing Date, after giving effect to the transactions contemplated to occur on the Closing Date and the making of the Term
Loans and the initial
Revolving Credit Loans (as if such Term Loans and Revolving Credit Loans were made on the Closing Date), each Loan Party is Solvent. </FONT></P>

<P><FONT SIZE=2><A
NAME="lk2063_5.20_labor_matters."> </A>
<A NAME="toc_lk2063_19"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;5.20</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Labor Matters. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;There are no strikes pending or, to Holdings' or the Borrower's knowledge, threatened against the Borrower or any of its
Subsidiaries which, individually or in
the aggregate, is reasonably likely to have a Material Adverse Effect. The hours worked and payments made to employees of the Borrower and each of its Subsidiaries have not been in violation of the
Fair Labor Standards Act or any other applicable Requirement of Law, except to the extent such violations are not, individually or in the aggregate, reasonably likely to have a Material Adverse
Effect. The consummation of the transactions contemplated hereby will not give rise to a right of termination or right of renegotiation on the part of any union under any collective bargaining
agreement to which the Borrower or any of its Subsidiaries (or any predecessor) is a party or by which the Borrower or any of its Subsidiaries (or any predecessor) is bound. </FONT></P>

<P><FONT SIZE=2><A
NAME="lk2063_5.21_security_documents."> </A>
<A NAME="toc_lk2063_20"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;5.21</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Security Documents. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a) The Security Documents are effective to create in favor of the Administrative Agent, for the benefit of the Lenders (and
the Lender Affiliates party to any
Specified Hedge Agreement), a legal, valid and enforceable security interest in the Collateral described therein and proceeds thereof. In the case of the Pledged Stock described in the Security
Documents, when stock certificates representing such Pledged Stock, together with stock powers executed in blank, are delivered to and maintained by the Administrative Agent, and in the case of the
other Collateral described in the Security Documents, when financing statements and other filings specified on </FONT><FONT SIZE=2><I>Schedule&nbsp;5.21(a)</I></FONT><FONT SIZE=2> in appropriate
form are filed in the offices specified on </FONT><FONT SIZE=2><I>Schedule&nbsp;5.21(a)</I></FONT><FONT SIZE=2>, the Security Documents shall constitute a fully perfected Lien on, and security
interest in, all right, title and interest of the Loan Parties in the Pledged Stock and such Collateral covered by and perfected by filing pursuant to Article&nbsp;9 of the Uniform Commercial Code
and the proceeds thereof, as security for the Obligations, in each case prior and superior in right to any other Person (except, in the case of Collateral other than Pledged Stock, Liens permitted by
subsection 8.3). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Each
of the Mortgages is or, upon execution, will be effective to create in favor of the Administrative Agent, for the benefit of the Lenders (and the Lender
Affiliates party to any Specified Hedge Agreement), a legal, valid and enforceable Lien on the Mortgaged Properties described therein and proceeds thereof, and the Mortgages, or when the Mortgages are
filed in the offices specified on </FONT><FONT SIZE=2><I>Schedule&nbsp;5.21(b)</I></FONT><FONT SIZE=2>, each such Mortgage shall, constitute a fully perfected Lien on, and security interest in, all
right, title and interest of the Loan Parties in the Mortgaged Properties and the proceeds thereof, as security for the Obligations (as defined in the relevant Mortgage), in each case prior and </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>43</FONT></P>

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<P><FONT SIZE=2>
superior in right to any other Person, except for Liens permitted by subsection 8.3. </FONT><FONT SIZE=2><I>Schedule&nbsp;1.1B</I></FONT><FONT SIZE=2> lists the Mortgaged Properties. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;No
Mortgage encumbers or will encumber improved real property that is located in an area that has been identified by the Secretary of Housing and Urban Development
as an area having special flood hazards and in which flood insurance has been made available under the National Flood Insurance Act of 1968 and has not been obtained. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="lk2063_section_6._conditions_precedent"> </A>
<A NAME="toc_lk2063_21"> </A>
<BR></FONT><FONT SIZE=2>SECTION 6. CONDITIONS PRECEDENT    <BR></FONT></P>

<P><FONT SIZE=2><A
NAME="lk2063_6.1_conditions_to_term_loans."> </A>
<A NAME="toc_lk2063_22"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;6.1</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Conditions to Term Loans. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The effectiveness of this Agreement and the agreement of each Lender to make the Term Loan requested to be made by it is
subject to the satisfaction on the
Closing Date, of the following conditions precedent: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;</FONT><FONT
SIZE=2><I>Loan Documents</I></FONT><FONT SIZE=2>. The Administrative Agent shall have received (i)&nbsp;this Agreement, executed and delivered by a
duly authorized officer of Holdings and the Borrower with a counterpart for the Administrative Agent and each Lender, (ii)&nbsp;each Borrower Pledge Agreement, executed and delivered by a duly
authorized officer of the Borrower with a counterpart for the Administrative Agent and each Lender, (iii)&nbsp;the Borrower Security Agreement, executed and delivered by a duly authorized officer of
the Borrower with a counterpart for the Administrative Agent and each Lender, (iv)&nbsp;the Collateral Agreement, executed and delivered by a duly authorized officer of each Guarantor with a
counterpart for the Administrative Agent and each Lender, (v)&nbsp;the Holdings Pledge Agreement, executed and delivered by a duly authorized officer of Holdings with a counterpart for the
Administrative Agent and each Lender, (vi)&nbsp;the Subsidiaries' Guarantee, executed and delivered by a duly authorized officer of each Loan Party party thereto with a counterpart for the
Administrative Agent and each Lender, (vii)&nbsp;for the account of each Revolving Credit Lender which requests a Revolving Credit Note on the Closing Date, a Revolving Credit Note conforming to the
requirements hereof and executed by a duly authorized officer of the Borrower, (viii)&nbsp;for the account of each Term Loan Lender which requests a Term Note on the Closing Date, a Term Note
conforming to the requirements hereof and executed by a duly authorized officer of the Borrower, and (ix)&nbsp;if requested by the Swing Line Lender on the Closing Date, for the account of the Swing
Line Lender, a Swing Line Note conforming to the requirements hereof and executed by a duly authorized officer of the Borrower. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;</FONT><FONT
SIZE=2><I>Closing Certificate</I></FONT><FONT SIZE=2>. The Administrative Agent shall have received, with a counterpart for each Lender, a certificate
of each Loan Party, dated the Closing Date, substantially in the form of </FONT><FONT SIZE=2><I>Exhibit&nbsp;F</I></FONT><FONT SIZE=2>, with appropriate insertions and attachments, satisfactory in
form and substance to the Administrative Agent, executed by the President or any Vice President and the Secretary or any Assistant Secretary of such Loan Party. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;</FONT><FONT
SIZE=2><I>Corporate Proceedings of the Loan Parties</I></FONT><FONT SIZE=2>. The Administrative Agent shall have received, with a counterpart for each
Lender, a copy of the resolutions, in form and substance satisfactory to the Administrative Agent, of the Board of Directors of each Loan Party authorizing (i)&nbsp;the execution, delivery and
performance of each Loan Document to which it is a party, and (ii)&nbsp;with respect to the Borrower, the Extensions of Credit contemplated hereunder, certified by the Secretary or an Assistant
Secretary of such Loan Party as of the Closing Date, which certificate shall be in form and substance reasonably satisfactory to the Administrative Agent and shall state that the resolutions thereby
certified have not been amended, modified, revoked or rescinded. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;</FONT><FONT
SIZE=2><I>Incumbency Certificate</I></FONT><FONT SIZE=2>. The Administrative Agent shall have received, with a counterpart for each Lender, a
certificate of each Loan Party, dated the Closing Date, as to the incumbency and signature of the officers of such Loan Party executing any Loan Document which certificate shall be reasonably
satisfactory in form and substance to the Administrative Agent and shall be </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>44</FONT></P>

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<UL>

<P><FONT SIZE=2>
executed by the President or any Vice President and the Secretary or any Assistant Secretary of such Loan Party. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;</FONT><FONT
SIZE=2><I>Corporate Documents</I></FONT><FONT SIZE=2>. The Administrative Agent shall have received, with a counterpart for each Lender, true and
complete copies of the certificate of incorporation and by-laws (or equivalent organizational documents) of each Loan Party, certified as of the Closing Date as complete and correct copies
thereof by the Secretary or an Assistant Secretary of such Loan Party. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Fees and Expenses</I></FONT><FONT SIZE=2>. The Lenders and the Administrative Agent shall have received all fees required to be paid, and
all expenses for which invoices have been presented (including the reasonable fees and expenses of legal counsel), on or before the Closing Date. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;</FONT><FONT
SIZE=2><I>Legal Opinions</I></FONT><FONT SIZE=2>. The Administrative Agent shall have received, with a counterpart for each Lender, the executed legal
opinion of Fried, Frank, Harris, Shriver&nbsp;&amp; Jacobson, special counsel to Holdings, the Borrower and the Subsidiary Guarantors, substantially in the form of </FONT> <FONT SIZE=2><I>Exhibit&nbsp;G</I></FONT><FONT SIZE=2>, and the executed legal
opinions of such local or special counsel as the Administrative Agent deems reasonably advisable. Such legal
opinions shall cover such other matters incident to the transactions contemplated by this Agreement as the Administrative Agent may reasonably require. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;</FONT><FONT
SIZE=2><I>Interim Consolidated Financial Statements</I></FONT><FONT SIZE=2>. The Lenders shall have received, to the extent available, the unaudited
consolidated balance sheet of Holdings and its consolidated Subsidiaries as at March&nbsp;30, 2001 and June&nbsp;29, 2001 and the related unaudited consolidated statements of income and of cash
flows for the three-month periods ended on such dates, certified by a Responsible Officer of Holdings to be complete and correct and present fairly the consolidated financial condition of Holdings and
its consolidated Subsidiaries as at such date, and the consolidated results of their operations and their consolidated cash flows for the three-month periods then ended. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Representations and Warranties</I></FONT><FONT SIZE=2>. Each of the representations and warranties made by the Borrower and the other Loan
Parties in or pursuant to the Loan Documents shall be true and correct in all material respects on and as of the Closing Date, except to the extent such representations and warranties expressly relate
to an earlier date in which case such representations and warranties shall be true and correct in all material respects as of such earlier date. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>No Default</I></FONT><FONT SIZE=2>. No Default or Event of Default shall have occurred and be continuing on the Closing Date. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;</FONT><FONT
SIZE=2><I>Approvals</I></FONT><FONT SIZE=2>. All governmental and third party approvals necessary to enter into and consummate the transactions
contemplated hereby shall have been obtained and be in full force and effect. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Pledged Stock and Stock Powers</I></FONT><FONT SIZE=2>. The Administrative Agent shall have received the certificates representing the
shares of Capital Stock pledged pursuant to the Security Documents, together with an undated stock power for each such certificate executed in blank by a duly authorized officer of the pledgor
thereof. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;</FONT><FONT
SIZE=2><I>Filings, Registrations and Recordings</I></FONT><FONT SIZE=2>. Each document required by the Security Documents or under law or reasonably
requested by the Administrative Agent to be filed, registered or recorded in order to create in favor of the Administrative Agent, for the benefit of the Lenders (and Lender Affiliates party to any
Specified Hedge Agreement), a perfected Lien on the Collateral described therein, prior and superior in right to any other Person (other than with respect to Liens expressly permitted by subsection
8.3), shall have been filed or shall be in proper form for filing, registration or recordation. </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>45</FONT></P>

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<UL>

<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;</FONT><FONT SIZE=2><I>Insurance.</I></FONT><FONT SIZE=2> The Administrative Agent shall have received insurance certificates satisfying the requirements of
subsection 4.3 of the Collateral Agreement. </FONT></P>

</UL>

<P><FONT SIZE=2><A
NAME="lk2063_6.2_conditions_to_each_extension_of_credit."> </A>
<A NAME="toc_lk2063_23"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;6.2</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Conditions to Each Extension of Credit. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The agreement of each Lender to make any Extension of Credit requested to be made by it on any date
(other than the Term Loans), and the agreement of the
Issuing Bank to issue any Letter of Credit for which an Application is presented, is subject to the satisfaction of the following conditions precedent: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;</FONT><FONT
SIZE=2><I>Closing Date</I></FONT><FONT SIZE=2>. The Closing Date shall have occurred on or prior to such date. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;</FONT><FONT
SIZE=2><I>Representations and Warranties</I></FONT><FONT SIZE=2>. Each of the representations and warranties made by the Borrower and the other Loan
Parties in or pursuant to the Loan Documents shall be true and correct in all material respects on and as of such date as if made on and as of such date, except to the extent such representations and
warranties expressly relate to an earlier date in which case such representations and warranties shall be true and correct in all material respects as of such earlier date. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;</FONT><FONT
SIZE=2><I>No Default</I></FONT><FONT SIZE=2>. No Default or Event of Default shall have occurred and be continuing on such date or after giving effect
to the Extension of Credit requested to be made on such date. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;</FONT><FONT
SIZE=2><I>Borrowing Requests and Applications.</I></FONT><FONT SIZE=2> The Administrative Agent shall have received a request or Application for such
Loan or Letter of Credit if and as required by subsection 3.2, 3.8, 3.11 or 3.14, as applicable. </FONT></P>

</UL>

<P><FONT SIZE=2>Each
such Extension of Credit hereunder shall constitute a representation and warranty by the Borrower as of the date thereof that the conditions contained in clauses (a), (b)&nbsp;and (c)&nbsp;of
this subsection have been satisfied. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="lk2063_section_7._affirmative_covenants"> </A>
<A NAME="toc_lk2063_24"> </A>
<BR></FONT><FONT SIZE=2>SECTION 7. AFFIRMATIVE COVENANTS    <BR></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Holdings
and the Borrower hereby jointly and severally agree that, so long as the Commitments remain in effect or any amount is owing to any Lender or the Administrative Agent
hereunder or under any other Loan Document or any Letter of Credit remains outstanding, it shall and (except in the case of delivery of financial information, reports and notices which shall be
performed by the Borrower) shall cause each of its Subsidiaries (other than any Joint Venture and any Receivables Subsidiary) to, unless the Required Lenders shall otherwise consent in writing: </FONT></P>


<P><FONT SIZE=2><A
NAME="lk2063_7.1_financial_statements."> </A>
<A NAME="toc_lk2063_25"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;7.1</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Financial Statements. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Furnish to each Lender: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;as
soon as available, but in any event within 90&nbsp;days after the end of each fiscal year of Holdings or the Borrower, as the case may be, a copy of the
audited consolidated balance sheet of Holdings and its consolidated Subsidiaries, or if the Merger is consummated, the Borrower and its consolidated Subsidiaries, as at the end of such year and the
related audited consolidated statements of operations and of cash flows for such year, setting forth in each case in comparative form the figures for the previous year, reported on without a "going
concern" or like qualification or exception, or a qualification arising out of the scope of the audit, by Ernst&nbsp;&amp; Young LLP or other independent certified public accountants of nationally
recognized standing; and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;as
soon as available, but in any event not later than 45&nbsp;days after the end of each of the first three quarterly periods of each fiscal year of Holdings or
the Borrower, as the case may be, the unaudited consolidated balance sheet of Holdings and its consolidated Subsidiaries, or if the Merger is consummated, the Borrower and its consolidated
Subsidiaries, as at the end of such quarter and the related unaudited consolidated statements of operations and of cash flows of Holdings and its consolidated Subsidiaries, or if the Merger is
consummated, the Borrower and its consolidated Subsidiaries, for such quarter and the portion of the fiscal year through the end of such quarter, setting forth in each case in comparative form the
figures for the previous year, </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>46</FONT></P>

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<UL>

<P><FONT SIZE=2>
certified by a Responsible Officer of Holdings or the Borrower, as the case may be, as being fairly stated in all material respects (subject to normal year-end audit adjustments); </FONT></P>

</UL>

<P><FONT SIZE=2>all
such financial statements shall be complete and correct in all material respects and shall be prepared in reasonable detail and in accordance with GAAP applied consistently throughout the periods
reflected therein and with prior periods (except as approved by such accountants or Responsible Officer, as the case may be, and disclosed therein). </FONT></P>

<P><FONT SIZE=2><A
NAME="lk2063_7.2_certificates;_other_information."> </A>
<A NAME="toc_lk2063_26"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;7.2</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Certificates; Other Information. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Furnish to each Lender: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;concurrently
with the delivery of the financial statements referred to in subsection 7.1(a), a certificate of the independent certified public accountants reporting
on such financial statements stating that in making the examination necessary therefor no knowledge was obtained of any Default or Event of Default, except as specified in such certificate; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;concurrently
with the delivery of the financial statements referred to in subsections 7.1(a) and (b), a certificate of a Responsible Officer of Holdings and the
Borrower (i)&nbsp;stating that, to the best of such Responsible Officer's knowledge, Holdings and the Borrower during such period have observed or performed all of their respective covenants and
other agreements, and satisfied every condition, contained in this Agreement and the other Loan Documents to be observed, performed or satisfied by them during such period, and that such Responsible
Officer has obtained no knowledge of any Default or Event of Default except as specified in such certificate, (ii)&nbsp;setting forth in reasonable detail the calculations required to determine
compliance with subsections 4.1(b), 8.1, 8.2(c), 8.6(g), 8.8, 8.9 and 8.10(d) and (f)&nbsp;through (h)&nbsp;inclusive and required to determine the Leverage Ratio Level as of the date of delivery
of such certificate, (iii)&nbsp;stating that no Subsidiary has been formed or acquired (or, if any such Subsidiary has been formed or acquired, the Borrower has complied with the requirements of
subsection 7.9 with respect thereto), (iv)&nbsp;stating that neither the Borrower nor any of its Subsidiaries has changed its name or its jurisdiction of incorporation without complying with the
requirements of this Agreement and the Security Documents with respect thereto and (v)&nbsp;setting forth a listing of any material Intellectual Property acquired by any Loan Party; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;not
later than forty-five days after the beginning of each fiscal year of the Borrower, a copy of a business plan and the projections by the Borrower of
the operating budget and cash flow budget of the Borrower and its Subsidiaries for such fiscal year, such projections for such fiscal year to be accompanied by a certificate of a Responsible Officer
of the Borrower to the effect that such projections have been prepared using assumptions believed in good faith by management of the Borrower to be reasonable at the time made; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;within
five Business Days after the same are sent, copies of all financial statements and reports which Holdings sends to the holders of any securities of the Loan
Parties registered with the SEC, and within ten Business Days after the same are filed, copies of all financial statements and reports which Holdings may make to, or file with, the SEC or any
analogous Governmental Authority; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;in
the event the Borrower elects to exercise its right to retain amounts received in respect of a Casualty Event to repair or replace any property which is the
subject of such Casualty Event, the Borrower shall promptly deliver a certificate of a Responsible Officer to the Administrative Agent setting forth the amount of the Net Proceeds of such Casualty
Event which the Borrower expects to use for such purpose; and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;promptly,
such additional financial and other information within the possession of Holdings or of the Borrower or any of its Subsidiaries as any Lender may from
time to time reasonably request through the Administrative Agent. </FONT></P>

</UL>
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<P><FONT SIZE=2><A
NAME="lk2063_7.3_payment_of_obligations."> </A>
<A NAME="toc_lk2063_27"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;7.3</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Payment of Obligations. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Pay, discharge or otherwise satisfy at or before maturity or before they become delinquent, as the case may be, all its
material obligations of whatever
nature, except (a)&nbsp;as contemplated by this Agreement, (b)&nbsp;where the amount or validity thereof is currently being contested in good faith by appropriate proceedings and reserves in
conformity with GAAP with respect thereto have been provided on its books and (c)&nbsp;for other delinquent obligations (including trade payables and liabilities) the failure to pay which,
individually or in the aggregate, is not reasonably likely to have a Material Adverse Effect. </FONT></P>

<P><FONT SIZE=2><A
NAME="lk2063_7.4_conduct_of_business_and_maintenance_of_existence."> </A>
<A NAME="toc_lk2063_28"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;7.4</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Conduct of Business and Maintenance of Existence. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Continue to engage in business of the same general type as now conducted by it and preserve,
renew and keep in full force and effect its corporate existence
and take all reasonable action to maintain all rights, privileges and franchises necessary or desirable in the normal conduct of its business except for rights, privileges and franchises, the loss of
which are not reasonably likely, individually or in the aggregate, to have a Material Adverse Effect and except as otherwise permitted pursuant to subsection 8.5; comply in all material respects with
all Contractual Obligations and Requirements of Law (excluding, for purposes of this subsection 7.4, Requirements of Law and Contractual Obligations specifically addressed elsewhere in this
Section&nbsp;7) except to the extent the failure to comply therewith, in the aggregate, is not reasonably likely to have a Material Adverse Effect. </FONT></P>

<P><FONT SIZE=2><A
NAME="lk2063_7.5_maintenance_of_property;_insurance."> </A>
<A NAME="toc_lk2063_29"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;7.5</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Maintenance of Property; Insurance. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Keep all property material to the conduct of its business in good working order and condition (ordinary wear
and tear excepted); maintain insurance with
financially sound and reputable insurance companies (or, to the extent consistent with prudent business practice, a program of self-insurance) on such of its property and in at least such
amounts and against at least such risks as are usually insured against in
the same general area by companies engaged in the same or a similar business; and furnish to each Lender, upon written request, full information as to the insurance carried. </FONT></P>

<P><FONT SIZE=2><A
NAME="lk2063_7.6_inspection_of_prope__lk202215"> </A>
<A NAME="toc_lk2063_30"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;7.6</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Inspection of Property; Books and Records; Discussions. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Keep proper financial records in conformity with GAAP and all applicable Requirements of
Law; and permit (a)&nbsp;representatives of the Administrative Agent
(and, after the occurrence and during the continuance of an Event of Default, any Lender) to visit and inspect any of its properties and examine and make abstracts from any of its books and records at
any reasonable time, upon reasonable notice, and as often as may reasonably be desired, and (b)&nbsp;upon reasonable notice during normal business hours, representatives of the Administrative Agent
or any Lender to discuss the business, operations, properties and financial and other condition of the Borrower and its Subsidiaries with officers and employees of the Borrower and its Subsidiaries
and with its independent certified public accountants (provided that officers of the Borrower or the applicable Subsidiary are offered the reasonable opportunity to be present at such discussion). </FONT></P>


<P><FONT SIZE=2><A
NAME="lk2063_7.7_notices."> </A>
<A NAME="toc_lk2063_31"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;7.7</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Notices. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Promptly give notice to the Administrative Agent and each Lender of: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;the
occurrence of any Default or Event of Default; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;any
(i)&nbsp;default or event of default under any Contractual Obligation of Holdings or of the Borrower or any of its Subsidiaries or (ii)&nbsp;litigation,
investigation or proceeding which may exist at any time between Holdings, the Borrower or any of their respective Subsidiaries and any Governmental Authority, which in either case, has a reasonable
possibility of an adverse determination or result, and if not cured, or resolved or if adversely determined, as the case may be, is reasonably likely to have a Material Adverse Effect; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;any
litigation or proceeding affecting Holdings, the Borrower or any of their respective Subsidiaries in which the amount involved is not covered by insurance or in
which injunctive or similar relief is sought which has a reasonable possibility of an adverse determination and which, if adversely determined, is reasonably likely to have a Material Adverse Effect; </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>48</FONT></P>

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<UL>

<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;the following events, as soon as practicable and in any event within 30&nbsp;days after Holdings knows or has reason to know thereof: (i)&nbsp;the occurrence or
expected occurrence of any Reportable Event with respect to any Plan, a failure to make any required contribution to a Plan, the creation of any Lien in favor of the PBGC or a Plan or any withdrawal
from, or the termination, Reorganization or Insolvency of, any Multiemployer Plan or (ii)&nbsp;the institution of proceedings or the taking of any other action by the
PBGC or the Borrower or any Commonly Controlled Entity or any Multiemployer Plan with respect to the withdrawal from, or the termination, Reorganization or Insolvency of, any Plan, in each of cases
(i)&nbsp;and (ii), where such event is reasonably likely to have a Material Adverse Effect; and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;any
development or event which is reasonably likely to have a Material Adverse Effect. </FONT></P>

</UL>

<P><FONT SIZE=2>Each
notice pursuant to this subsection shall be accompanied by a statement of a Responsible Officer of Holdings and the Borrower setting forth details of the occurrence referred to therein and
stating what action Holdings and the Borrower propose to take with respect thereto. </FONT></P>

<P><FONT SIZE=2><A
NAME="lk2063_7.8_environmental_laws."> </A>
<A NAME="toc_lk2063_32"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;7.8</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Environmental Laws. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Comply with, and use reasonable efforts to ensure compliance by all tenants and subtenants, if any, with, all applicable
Environmental Laws (including, but not
limited to, compliance with all requirements as to investigations, studies, sampling and testing, and all remedial, removal and other actions, under such Environmental Laws and compliance with all
lawful orders and directives of all Governmental Authorities regarding such Environmental Laws) and obtain and comply with and maintain, and use reasonable efforts to ensure that all tenants and
subtenants obtain and comply with and maintain, any and all Environmental Permits required by applicable Environmental Laws, except, in each such case, to the extent the failure to comply therewith,
individually or in the aggregate, is not reasonably likely to have a Material Adverse Effect. </FONT></P>

<P><FONT SIZE=2><A
NAME="lk2063_7.9_additional_collateral."> </A>
<A NAME="toc_lk2063_33"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;7.9</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Additional Collateral. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a)&nbsp;With respect to any assets acquired after the Closing Date by the Borrower or any of its Domestic Subsidiaries
(other than any Joint Venture or
Receivables Subsidiary) that are intended to be subject to the Lien created by any of the Security Documents (it being agreed that Excluded Property is not intended to be subject to the Lien created
by any of the Loan Documents) but which are not so subject (other than (x)&nbsp;any assets described in paragraph&nbsp;(b) or (c)&nbsp;of this subsection and (y)&nbsp;any assets subject to a
Lien permitted by Section&nbsp;8.3(f)), promptly (and in any event within 45&nbsp;days after the acquisition thereof): (i)&nbsp;execute and deliver to the Administrative Agent such amendments to
the relevant Security Documents or such other documents as the Administrative Agent shall deem necessary or advisable to grant to the Administrative Agent, for the benefit of the Lenders, a Lien on
such assets, (ii)&nbsp;take all actions necessary or advisable to cause such Lien to be duly perfected in accordance with all applicable Requirements of Law, including, without limitation, the
filing of financing statements (or other documents such as United States Patent and Trademark Office filings and United States Copyright Office filings) in such jurisdictions as may be requested by
the Administrative Agent (it being agreed that (A)&nbsp;no Mortgage shall be required to be executed and delivered with respect to any parcel of real property acquired after the Closing Date unless
the book value of such parcel of real property exceeds $1,000,000 and (B)&nbsp;no action shall be required pursuant to this clause&nbsp;(ii) to perfect a Lien in assets that would not constitute
UCC Filing Collateral unless the book value of such assets is greater than $1,000,000, and (iii)&nbsp;if requested by the Administrative Agent, deliver to the Administrative Agent legal opinions
relating to the matters described in clauses (i)&nbsp;and (ii)&nbsp;immediately preceding, which opinions shall be in form and substance, and from counsel, reasonably satisfactory to the
Administrative Agent. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;With
respect to any Person that, subsequent to the Closing Date, becomes a Subsidiary (other than a Foreign Subsidiary, Joint Venture or Receivables Subsidiary),
promptly upon the request of the Administrative Agent: (i)&nbsp;execute and deliver to the Administrative Agent, for the benefit of the Lenders, a new pledge agreement or such amendments to the
relevant Pledge Agreement or Collateral Agreement as the Administrative Agent shall deem necessary or advisable to grant to the </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>49</FONT></P>

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<P><FONT SIZE=2>
Administrative Agent, for the benefit of the Lenders, a Lien on the Capital Stock of such Subsidiary which is owned by the Borrower or any of its Subsidiaries, (ii)&nbsp;deliver to the
Administrative Agent the certificates representing such Capital Stock, together with undated stock powers executed and delivered in blank by a duly authorized officer of the Borrower or such
Subsidiary, as the case may be, (iii)&nbsp;cause such new Subsidiary (A)&nbsp;to become a party to the Subsidiaries' Guarantee and the Collateral Agreement, in each case pursuant to documentation
which is in form and substance satisfactory to the Administrative Agent, and (B)&nbsp;to take all actions necessary or advisable to cause the Lien created by the Collateral Agreement to be duly
perfected in accordance with all applicable Requirements of Law, including, without limitation, the filing of financing statements (or other documents such as United States Patent and Trademark Office
filings and United States Copyright Office filings) in such jurisdictions as may be requested by the Administrative Agent and (iv)&nbsp;if requested by the Administrative Agent, deliver to the
Administrative Agent legal opinions relating to the matters described in clauses (i), (ii)&nbsp;and (iii)&nbsp;immediately preceding, which opinions shall be in form and substance, and from
counsel, reasonably satisfactory to the Administrative Agent. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;With
respect to any Person that, subsequent to the Closing Date, becomes a first tier Foreign Subsidiary, promptly upon the request of the Administrative Agent:
(i)&nbsp;execute and deliver to the Administrative Agent a new pledge agreement or such amendments to the relevant Pledge Agreement or Collateral Agreement as the Administrative Agent shall deem
necessary or advisable to grant to the Administrative Agent, for the benefit of the Lenders, a Lien on the Capital Stock of such Foreign Subsidiary which is owned by the Borrower or any of its
Subsidiaries (</FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that in no event shall more than 65% of the Capital Stock of any such Foreign Subsidiary be required to be so pledged),
(ii)&nbsp;deliver to the Administrative Agent any certificates representing such Capital Stock, together with undated stock powers executed and delivered in blank by a duly authorized officer of the
Borrower or such Subsidiary, as the case may be, and take or cause to be taken all such other actions under the law of the jurisdiction of organization of such Foreign Subsidiary as may be necessary
or advisable to perfect such Lien on such Capital Stock and (iii)&nbsp;if requested by the Administrative Agent, deliver to the Administrative Agent legal opinions relating to the matters described
in clauses (i)&nbsp;and (ii)&nbsp;immediately preceding, which opinions shall be in form and substance, and from counsel, reasonably satisfactory to the Administrative Agent. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Notwithstanding
any other provision of this Agreement, any Security Document or any other Loan Document, in no event shall any Excluded Property be required to be
subject to any Lien hereunder, under any Security Document or under any other Loan Document. </FONT></P>

<P><FONT SIZE=2><A
NAME="lk2063_7.10_consummation_of_pe__lk202226"> </A>
<A NAME="toc_lk2063_34"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;7.10</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Consummation of Permitted Securitization Transaction. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Consummate within 14&nbsp;days of the Closing Date, pursuant to documentation satisfactory
in form and substance to the Administrative Agent, a Permitted
Securitization Transaction having a facility limit of not less than $75,000,000, provided, that the Borrower may at any time after the consummation of such Permitted Securitization Transaction,
terminate such Permitted Securitization Transaction so long as (i)&nbsp;after giving effect to such termination, Holdings shall be in pro forma compliance with the covenants contained in subsection
8.1, (ii)&nbsp;both immediately before and after giving effect to such termination, no Default or Event of Default shall have occurred and be continuing and (iii)&nbsp;after giving effect to such
termination, the aggregate Available Revolving Credit Commitments shall be at least $50,000,000. The Lenders and the Administrative Agent consent to the execution and delivery of such documentation,
in form and substance satisfactory to the Administrative Agent, and the performance and consummation of the transactions contemplated thereunder by all applicable Loan Parties. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>50</FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="lm2063_section_8._negative_covenants"> </A>
<A NAME="toc_lm2063_1"> </A>
<BR></FONT><FONT SIZE=2>SECTION 8. NEGATIVE COVENANTS    <BR></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Holdings
and the Borrower hereby jointly and severally agree that, so long as the Commitments remain in effect or any amount is owing to any Lender or the Administrative Agent
hereunder or under any other Loan Document or any Letter of Credit remains outstanding, neither Holdings nor the Borrower shall, nor (except with respect to subsection 8.1) shall Holdings or the
Borrower permit any of their respective Subsidiaries (other than any Joint Venture and any Receivables Subsidiary) to, directly or indirectly, unless the Required Lenders shall otherwise agree in
writing: </FONT></P>

<P><FONT SIZE=2><A
NAME="lm2063_8.1_financial_condition_covenants."> </A>
<A NAME="toc_lm2063_2"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;8.1</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Financial Condition Covenants. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;</FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;</FONT><FONT
SIZE=2><I>Maintenance of Net Worth</I></FONT><FONT SIZE=2>. Permit Consolidated Net Worth at the end of any fiscal quarter to be less than an amount
equal to the sum of (i)&nbsp;$262,977,000 and (ii)&nbsp;50% of aggregate Consolidated Net Income for each fiscal quarter ending after June&nbsp;29, 2001 for which Consolidated Net Income is
positive. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;</FONT><FONT
SIZE=2><I>Maintenance of Consolidated Interest Coverage Ratio</I></FONT><FONT SIZE=2>. Permit for any period of four consecutive fiscal quarters
ending on the last day of any fiscal quarter the Consolidated Interest Coverage Ratio for such period to be less than 2.50 to 1.00. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;</FONT><FONT
SIZE=2><I>Maintenance of Consolidated Leverage Ratio</I></FONT><FONT SIZE=2>. Permit for any period of four consecutive fiscal quarters ending on the
last day of any fiscal quarter the Consolidated Leverage Ratio for such period to be greater than 3.25 to 1.00. </FONT></P>

</UL>

<P><FONT SIZE=2><A
NAME="lm2063_8.2_limitation_on_indebtedness."> </A>
<A NAME="toc_lm2063_3"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;8.2</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Limitation on Indebtedness. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Create, incur, assume or suffer to exist any Indebtedness, except: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Indebtedness
in respect of the Loans, any Notes, the Guarantees, the Letters of Credit and the other obligations of the Loan Parties under this Agreement and the
other Loan Documents; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Indebtedness
of the Borrower to any Subsidiary and of any Subsidiary to the Borrower or any other Subsidiary; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Non-Recourse
Indebtedness secured by Liens permitted pursuant to subsection 8.3(i), </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that the
aggregate principal outstanding amount of such Non-Recourse Indebtedness shall not exceed an amount equal to 5% of Consolidated Capitalization at any time; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Indebtedness
of Foreign Subsidiaries (other than Indebtedness owed to the Borrower or any other Subsidiary) of up to $30,000,000 in aggregate principal amount at
any one time outstanding; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;(i)&nbsp;Indebtedness
outstanding on the date hereof and listed on </FONT><FONT SIZE=2><I>Schedule&nbsp;8.2(e)</I></FONT><FONT SIZE=2> and
(ii)&nbsp;extensions, renewals, refinancings or successive refinancings (in whole or in part) thereof that do not increase, or shorten the maturity to a date prior to October&nbsp;31, 2007 of, the
principal amount thereof; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;Indebtedness
in respect of performance bonds, indemnity bonds, bid bonds, appeal bonds, bankers acceptances, letters of credit, surety bonds or other similar
obligations arising in the ordinary course of business, </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that no such bond, bankers acceptance, letter of credit or similar obligation is
provided to secure or support the repayment of other Indebtedness; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;Indebtedness
arising from the honoring by a bank or other financial institution of a check, draft or similar instrument inadvertently (except in the case of
daylight overdrafts) drawn against insufficient funds in the ordinary course of business, </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that such Indebtedness is extinguished within five
Business Days of notice to the Borrower or any Subsidiary of its incurrence; </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>51</FONT></P>

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<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;Indebtedness arising out of an Investment permitted under subsection 8.10(f) or an Asset Sale permitted under subsection 8.6(e) consisting of (i)&nbsp;obligations
with respect to customary post-closing adjustments with respect to accounts receivable, accounts payable, net worth and/or similar items typically subject to post-closing
adjustments in similar transactions, </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that such obligations are outstanding for a period of two years or less following the creation thereof or
(ii)&nbsp;customary indemnities granted to the seller or buyer in connection with such Investment or Asset Sale, as the case may be; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;Indebtedness
of a Person which becomes a Subsidiary after the date hereof, </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that (i)&nbsp;such
Indebtedness existed at the time such Person became a Subsidiary and was not created in anticipation of the acquisition and (ii)&nbsp;immediately after giving effect to the acquisition of such
Person no Default or Event of Default shall have occurred and be continuing; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;Subordinated
Debt, </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that the Net Proceeds of any such Subordinated Debt are applied to prepay Loans (and/or
cash collateralize Letter of Credit) and the Revolving Credit Commitments are reduced, in each case to the extent required by subsection 4.1(b); and </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;any
additional Indebtedness of Holdings and any of its Subsidiaries, including, without limitation, Indebtedness incurred to finance the acquisition, construction,
repair or improvement of fixed or capital assets (whether pursuant to a loan, a Financing Lease or otherwise), </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2>, that the sum of (i)&nbsp;the
amount of outstanding guarantees under subsection 8.4(e) and (ii)&nbsp;the amount of outstanding Indebtedness under this subsection 8.2(k), shall not exceed $40,000,000 at any time outstanding. </FONT></P>

</UL>

<P><FONT SIZE=2><A
NAME="lm2063_8.3_limitation_on_liens."> </A>
<A NAME="toc_lm2063_4"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;8.3</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Limitation on Liens. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Create, incur, assume or suffer to exist any Lien upon any of its property, assets or revenues, whether now owned or
hereafter acquired, except for: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Liens
for taxes not yet due or which are being contested in good faith by appropriate proceedings, </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that
adequate reserves with respect thereto are maintained on the books of Holdings, the Borrower or the relevant Subsidiary, as the case may be, in conformity with GAAP (or, in the case of Foreign
Subsidiaries, generally accepted accounting principles in effect from time to time in their respective jurisdictions of incorporation); </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;statutory
landlords' liens and carriers', warehousemen's, mechanics', materialmen's, repairmen's or other like Liens arising in the ordinary course of business for
sums which are not overdue for a period of more than 60&nbsp;days or which are being contested in good faith by appropriate proceedings; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;pledges
or deposits in connection with workers' compensation, unemployment insurance and other social security legislation and deposits securing liability to
insurance carriers under insurance or self-insurance arrangements; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;deposits
to secure the performance of bids, trade contracts (other than for borrowed money), leases, statutory obligations, surety and appeal bonds, performance
bonds and other obligations of a like nature incurred in the ordinary course of business; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;easements,
rights-of-way, restrictions, and other similar encumbrances incurred in the ordinary course of business, which, in the aggregate,
are not substantial in amount and which do not in any case materially detract from the use of the property subject thereto or materially interfere with the ordinary conduct of the business of Holdings
or such Subsidiary; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;Liens
securing Indebtedness of Holdings and its Subsidiaries permitted by subsection 8.2(k) incurred to finance all or any part of the acquisition, construction,
repair or improvement of fixed or capital assets, </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that (i)&nbsp;such Liens shall be created within 90&nbsp;days after the acquisition,
construction, repair or improvement of such fixed or capital assets, (ii)&nbsp;such Liens do not at any time encumber any property other than the property acquired, constructed, repaired or </FONT></P>

</UL>
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<P><FONT SIZE=2>
improved with the proceeds of such Indebtedness, (iii)&nbsp;the amount of Indebtedness secured thereby shall not subsequently be increased and (iv)&nbsp;the principal amount of Indebtedness
secured by any such Lien shall at no time exceed 100% of the original purchase price of such asset or the amount expended to construct or improve such asset, as the case may be; </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;Liens
in existence on the date hereof listed on </FONT><FONT SIZE=2><I>Schedule&nbsp;8.3(g)</I></FONT><FONT SIZE=2>, </FONT> <FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that no such Lien is spread to cover any additional property after the Closing
Date and that the amount of Indebtedness secured thereby shall
not subsequently be increased; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;Liens
on assets of any Foreign Subsidiary (other than stock pledged pursuant to any Borrower Pledge Agreement or the Collateral Agreement) securing Indebtedness of
such Foreign Subsidiary permitted by subsection 8.2(d); </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;Liens
securing Non-Recourse Indebtedness of Holdings and its Subsidiaries permitted by subsection 8.2(c); </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;Liens
on documents of title and property covered thereby securing Indebtedness in respect of Commercial Letters of Credit; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;all
building codes and zoning ordinances and other laws, ordinances, regulations, rules, orders or determinations of any federal, state, county, municipal or other
governmental authority now or hereafter enacted; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;Liens
on Excluded Property (including Securitization Receivables) which are subject to any Permitted Securitization Transaction (granted in connection with such
Permitted Securitization Transaction), including Liens on the assets of any Receivables Subsidiary (including Excluded Property) created pursuant to any Permitted Securitization Transaction and Liens
incurred by the Borrower and its other Subsidiaries on Excluded Property (including Securitization Receivables) to secure obligations owing by them in respect of such Permitted Securitization
Transaction; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;Liens
granted pursuant to the Loan Documents; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;Liens
on any property or assets of any Person which becomes a Subsidiary after the date hereof (including as a result of a merger with a special purpose Subsidiary
formed in connection with such Person becoming a Subsidiary and solely for such purpose) securing Indebtedness permitted by subsection 8.2(i), </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2>
that (i)&nbsp;such Liens existed at the time such Person became a Subsidiary and were not created in anticipation of such event, (ii)&nbsp;any such Lien does not by its terms cover any property or
assets after the time such Person becomes a Subsidiary which were not covered immediately prior thereto and (iii)&nbsp;any such Lien does not by its terms secure any Indebtedness other than
Indebtedness existing immediately prior to the time such Person becomes a Subsidiary; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;Liens
arising out of the refinancing, extension, renewal or refunding of any Indebtedness secured by any Lien permitted by clause&nbsp;(f) or (g)&nbsp;of this
Section and which are otherwise permitted hereunder; </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that (i)&nbsp;such Liens do not at any time encumber any property other than the
property subject to the Lien being refinanced, extended, renewed or refunded and (ii)&nbsp;the amount of Indebtedness secured thereby is not increased; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;attachment,
judgment or other similar Liens arising in connection with court or arbitration proceedings involving in the aggregate a liability (not paid or fully
covered by insurance) not in excess of $5,000,000; </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> the same are vacated, discharged, stayed or bonded pending appeal within 60&nbsp;days from
the entry thereof; </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(q)&nbsp;Liens
in favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties in connection with the importation of goods, so
long as such Liens attach only to the goods so imported; </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>53</FONT></P>

<HR NOSHADE>
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<A NAME="page_lm2063_1_54"> </A>
<UL>

<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;(r)&nbsp;Liens arising out of consignment or similar arrangements for the sale of goods entered into in the ordinary course of business, so long as such Liens attach only to
the goods so consigned; and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(s)&nbsp;Liens
on funds in applicable bank accounts securing Indebtedness permitted pursuant to subsection 8.2(g). </FONT></P>

</UL>

<P><FONT SIZE=2><A
NAME="lm2063_8.4_limitation_on_guarantee_obligations."> </A>
<A NAME="toc_lm2063_5"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;8.4</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Limitation on Guarantee Obligations. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Create, incur, assume or suffer to exist any Guarantee Obligation except: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Guarantee
Obligations in existence on the date hereof and listed on </FONT><FONT SIZE=2><I>Schedule&nbsp;8.4(a)</I></FONT><FONT SIZE=2>; </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;the
Guarantees and Letters of Credit; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;guarantees
made in the ordinary course of its business by Holdings or the Borrower of obligations of any Subsidiary, which obligations are otherwise permitted under
this Agreement; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;guarantees
in respect of obligations to third parties issued in the ordinary course of business in connection with relocation of employees of the Borrower or any of
its Subsidiaries; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;guarantees
by Holdings and its Subsidiaries incurred in the ordinary course of business for an aggregate amount not to exceed $10,000,000 at any one time
outstanding, </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2>, that the sum of (i)&nbsp;the amount of outstanding guarantees under this subsection 8.4(e) and (ii)&nbsp;the amount of
outstanding Indebtedness under subsection 8.2(k), shall not exceed $40,000,000 at any time outstanding; and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;representations,
warranties, covenants and indemnities entered into by the Borrower or any other Loan Party and reasonably customary for securitization
transactions similar to the relevant Permitted Securitization Transaction; </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2>, that, in no event, shall the Borrower or any other Loan Party
guarantee the ability to collect upon, or the payment by the Receivables Obligor of, the Receivables subject to a Permitted Securitization Transaction or the financing related thereto. </FONT></P>

</UL>

<P><FONT SIZE=2><A
NAME="lm2063_8.5_limitation_on_fundamental_changes."> </A>
<A NAME="toc_lm2063_6"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;8.5</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Limitation on Fundamental Changes. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Enter into any merger, consolidation or amalgamation, or liquidate, wind up or dissolve itself (or suffer any
liquidation or dissolution), or convey, sell,
lease, assign, transfer or otherwise dispose of, all or substantially all of its property, business or assets, or make any material change in its present method of conducting business, except: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;any
Subsidiary of the Borrower may be merged or consolidated with or into the Borrower (</FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that (i)&nbsp;the
Borrower shall be the continuing or surviving corporation and (ii)&nbsp;if the Merger has occurred, such merger or consolidation does not adversely affect the value of the Collateral) or with or
into any one or more wholly owned Subsidiaries of the Borrower (</FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that (i)&nbsp;the wholly owned Subsidiary or Subsidiaries shall be the
continuing or surviving corporation and (ii)&nbsp;the surviving corporation shall be a Subsidiary Guarantor if either party to such merger or consolidation is a Subsidiary Guarantor); </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;any
wholly owned Subsidiary may sell, lease, transfer or otherwise dispose of any or all of its assets (upon voluntary liquidation or otherwise) to the Borrower
(</FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that, if the Merger has occurred, such sale, lease, transfer or other disposition does not adversely affect the value of the Collateral) or
any other wholly owned Subsidiary of the Borrower and which is a Subsidiary Guarantor if the transferor is a Subsidiary Guarantor; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;pursuant
to any transaction expressly permitted by subsection 8.6 or 8.10; and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;the
Merger, </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that, (i)&nbsp;Holdings shall thereafter be the "Borrower" for all purposes of this
Agreement, (ii)&nbsp;the provisions of Sections 9 and 10 shall cease to apply to Holdings and (iii)&nbsp;Holdings shall be deemed to and hereby shall assume all of the Borrower's </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>54</FONT></P>

<HR NOSHADE>
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<A NAME="page_lm2063_1_55"> </A>
<UL>

<P><FONT SIZE=2>
obligations under the Loan Documents (without limiting the foregoing, Holdings shall execute such documents and take such other actions as the Administrative Agent may reasonably request in connection
with the Merger and the assumption of the obligations of the "Borrower" under this Agreement and the other Loan Documents) and </FONT><FONT SIZE=2><I>provided, further</I></FONT><FONT SIZE=2>, that
there has not been a merger, consolidation, sale, lease, transfer or other disposition pursuant to paragraph&nbsp;(a) or (b)&nbsp;of this subsection 8.5 that, after giving effect to the Merger,
adversely affects the value of the Collateral. </FONT></P>

</UL>

<P><FONT SIZE=2><A
NAME="lm2063_8.6_limitation_on_sale_of_assets."> </A>
<A NAME="toc_lm2063_7"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;8.6</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Limitation on Sale of Assets. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Convey, sell, lease, assign, transfer or otherwise dispose of any of its property, business or assets (including,
without limitation, Receivables and leasehold
interests and any sale, transfer or other disposition in connection with a Sale/Leaseback Transaction), whether now owned or hereafter acquired, or, in the case of any Subsidiary, issue or sell any
shares of such Subsidiary's Capital Stock to any Person other than Holdings or any wholly owned Subsidiary, except: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;the
conveyance, sale, lease, assignment, transfer or other disposition of Obsolete Property in the ordinary course of business; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;the
sale of inventory in the ordinary course of business; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;the
sale or discount for fair value without recourse of accounts receivable arising in the ordinary course of business in connection with the compromise or
collection thereof; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;as
permitted by subsection 8.5(a), 8.5(b) or 8.5(d); </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;the
sale or disposition of any asset or assets (other than as permitted in clauses (a)&nbsp;through (d)&nbsp;of this subsection 8.6) in the ordinary course of
business, </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that the net proceeds from any such transaction do not exceed $250,000; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;sales
of Receivables pursuant to a Permitted Securitization Transaction; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;Asset
Sales (other than Asset Sales of inventory and other than any other Asset Sale permitted under this subsection 8.6) in the ordinary course of business, </FONT> <FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that (i)&nbsp;the Net Proceeds of any
such Asset Sale are applied to prepay Loans (and/or cash collateralize Letters of Credit) and the
Revolving Credit Commitments are reduced, in each case to the extent required by subsection 4.1(b), (ii)&nbsp;the aggregate amount of Net Proceeds of Asset Sales subsequent to the Closing Date shall
not exceed $70,000,000 and (iii)&nbsp;the Net Proceeds from any Asset Sale subsequent to the Closing Date (or series of related Asset Sales) shall not exceed $35,000,000; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;the
lease (as lessor) of real or personal property in the ordinary course of business; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;any
Investment permitted by Section&nbsp;8.10 and any Restricted Payment permitted by Section&nbsp;8.8; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;consignment
arrangements or similar arrangements for the sale of goods in the ordinary course of business and consistent with the past practice of the Borrower and
its Subsidiaries prior to the Closing Date; and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;licenses
or sublicenses of software, trademarks and other Intellectual Property in the ordinary course of business which do not materially interfere with the
business of Holdings, the Borrower or any Subsidiary, as the case may be. </FONT></P>

</UL>

<P><FONT SIZE=2>To
the extent that any sale permitted under this subsection 8.6 is of the capital stock of any Subsidiary, such capital stock shall be released from the security interest therein created pursuant to
the Security Documents and such Subsidiary, if it is a Subsidiary Guarantor, shall be released from its obligations under the Subsidiaries' Guarantee. </FONT></P>


<P><FONT SIZE=2><A
NAME="lm2063_8.7_[intentionally_omitted._]"> </A>
<A NAME="toc_lm2063_8"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;8.7</FONT><FONT SIZE=2><I>&nbsp;&nbsp;[Intentionally Omitted.</I></FONT><FONT SIZE=2>]
&nbsp;&nbsp;</FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>55</FONT></P>

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<A NAME="page_lm2063_1_56"> </A>

<P><FONT SIZE=2><A
NAME="lm2063_8.8_limitation_on_restricted_payments."> </A>
<A NAME="toc_lm2063_9"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;8.8</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Limitation on Restricted Payments. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Declare or pay any dividend (other than dividends payable solely in common stock of the Borrower or in options,
 warrants or other rights to purchase such
common stock) on, or make any payment on account of, or set apart assets for a sinking or other analogous fund for, the purchase, redemption, defeasance, retirement or other acquisition of, any shares
of any class of Capital Stock of the Borrower or any warrants or options to purchase any such Stock, whether now or hereafter outstanding, or make any other distribution in respect thereof, either
directly or indirectly, whether in cash or property or in obligations of the Borrower or any Subsidiary (such declarations, payments, setting apart, purchases, redemptions, defeasances, retirements,
acquisitions and distributions being herein called "</FONT><FONT SIZE=2><I>Restricted Payments</I></FONT><FONT SIZE=2>"), except that, </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;the
Borrower may pay cash dividends to Holdings to pay any taxes or expenses required to be paid by Holdings in the ordinary course of business and to maintain a
cash balance of $250,000 for the payment of such taxes and expenses, </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that any such taxes or expenses are paid no later than fifteen Business
Days after the date on which the relevant dividend is made; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;the
Borrower may pay dividends to Holdings to enable Holdings to make investments and satisfy obligations permitted to be made and incurred under Section&nbsp;9; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;so
long as no Default or Event of Default has occurred or would occur after giving effect to such declaration or payment, the Borrower may, from time to time,
declare and pay cash dividends to Holdings on the common stock of the Borrower in an aggregate amount not to exceed $5,000,000 in any fiscal year of the Borrower or $10,000,000 in the aggregate, </FONT> <FONT SIZE=2><I>provided,</I></FONT><FONT
SIZE=2> that the proceeds of such dividends shall be used within 30&nbsp;days of the receipt of such dividends by Holdings to repurchase Holdings
stock or stock options from, or to cash out other management equity interests held by, management employees of Holdings or any of its Subsidiaries, and </FONT><FONT SIZE=2><I>provided,
further,</I></FONT><FONT SIZE=2> that such $10,000,000 amount shall be increased by the proceeds of any additional Holdings capital stock which is issued to any management employees of Holdings or any
of its Subsidiaries so long as such proceeds are contributed by Holdings to the capital of the Borrower; and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;so
long as no Default or Event of Default shall have occurred and be continuing, Holdings and the Borrower may redeem or repurchase shares of its own common stock
or common stock options or declare and pay cash dividends on its own common stock in order to enable Holdings to declare and pay equivalent cash dividends to its shareholders in an aggregate amount
not to exceed $75,000,000, </FONT><FONT SIZE=2><I>provided,</I></FONT><FONT SIZE=2> that, once the Index Debt of Holdings or the Borrower is rated BBB- or higher (with a stable outlook)
by S&amp;P and Baa3 or higher (with a stable outlook) by Moody's, Holdings and the Borrower may redeem or repurchase additional shares of its own common stock or common stock options or pay cash dividends
on its own common stock in order to enable Holdings to declare and pay equivalent cash dividends to its shareholders, in any fiscal year of the Borrower, in an aggregate amount not to exceed 50% of
Consolidated Net Income for the preceding fiscal year of the Borrower. </FONT></P>

</UL>

<P><FONT SIZE=2><A
NAME="lm2063_8.9_limitation_on_capital_expenditures."> </A>
<A NAME="toc_lm2063_10"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;8.9</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Limitation on Capital Expenditures. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Make or commit to make Capital Expenditures in the aggregate for the Borrower and its Subsidiaries during any
fiscal year of the Borrower, in excess of
$70,000,000, provided, that, up to 100% of any amount permitted to be expended in any fiscal year if not so expended in the fiscal year for which it is permitted, may be carried over for expenditure
in the next following fiscal year but, if not so expended in the fiscal year immediately succeeding the fiscal year for which it is permitted may not be carried over for expenditure in succeeding
fiscal years. </FONT></P>

<P><FONT SIZE=2><A
NAME="lm2063_8.10_limitation_on_investments,_loans_and_advances."> </A>
<A NAME="toc_lm2063_11"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;8.10</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Limitation on Investments, Loans and Advances. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Make any advance, loan, extension of credit or capital contribution to, or purchase any stock,
bonds, notes, debentures or other securities of, or any assets
constituting a business unit of, or make any other investment in, any Person (an "Investment"), except: </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>56</FONT></P>

<HR NOSHADE>
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<A NAME="page_lm2063_1_57"> </A>
<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;extensions
of trade credit (including to Foreign Subsidiaries) and endorsements of negotiable instruments and other negotiable documents in the ordinary course of
business; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;investments
in Cash Equivalents; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;payroll
advances in the ordinary course of business and loans and advances to employees and directors of Holdings, the Borrower or any of its Subsidiaries for
travel, entertainment and relocation expenses in the ordinary course of business in an aggregate amount for Holdings, the Borrower and its Subsidiaries not to exceed $500,000 at any time outstanding; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Investments
in Subsidiaries and in RISA and Investments by such Subsidiaries in the Borrower and in other Subsidiaries, </FONT> <FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that the aggregate amount of all such Investments (including Investments in the
nature of sales and transfers of assets (including, pursuant to
a transaction permitted under subsection 8.5(b) and assumption or guarantees of Indebtedness) for less than fair market value) after the Closing Date (i)&nbsp;in the Mexican Subsidiary and RISA
shall not exceed at any one time outstanding the sum of (A)&nbsp;$15,000,000 and (B)&nbsp;the aggregate Capital Expenditures made by the Mexican Subsidiary and RISA and funded by Investments by
the Borrower or Holdings, </FONT><FONT SIZE=2><I>provided further</I></FONT><FONT SIZE=2>, that additional Investments in the Mexican Subsidiary and RISA shall reduce on a
dollar-for-dollar basis acquisitions permitted under Section&nbsp;8.10(f) and Investments permitted under Section&nbsp;8.10(g), (ii)&nbsp;in Foreign Subsidiaries
(including the Mexican Subsidiary and RISA) shall not exceed at any one time outstanding the sum of (A)&nbsp;$25,000,000 and (B)&nbsp;the amount referred to in clause&nbsp;(i)(B) above, </FONT> <FONT SIZE=2><I>provided further</I></FONT><FONT SIZE=2>,
 that additional Investments in Foreign Subsidiaries shall reduce on a dollar-for-dollar basis acquisitions
permitted under Section&nbsp;8.10(f) and Investments permitted under Section&nbsp;8.10(g), and (iii)&nbsp;in Subsidiaries (other than Foreign Subsidiaries and RISA) which are not Subsidiary
Guarantors shall not exceed at
any one time outstanding $15,000,000, </FONT><FONT SIZE=2><I>provided further</I></FONT><FONT SIZE=2>, that additional Investments in Subsidiaries which are not Subsidiary Guarantors shall reduce on
a dollar-for-dollar basis acquisitions permitted under Section&nbsp;8.10(f) and Investments permitted under Section&nbsp;8.10(g); </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;advances
by the Borrower to Holdings, in lieu of the payment of cash dividends, to enable Holdings to make the payments contemplated by subsection 8.8, </FONT> <FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that, if such advances are made with respect to
the payments contemplated by subsection 8.8(a) or 8.8(b), such advances are used to make such
payments within fifteen Business Days after such advances are made; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;acquisitions,
by the Borrower or any Subsidiary Guarantor, of all the Capital Stock of any Person or, acquisitions, by the Borrower, any Subsidiary Guarantor, or
any Foreign Subsidiary which is owned directly by the Borrower or any Subsidiary Guarantor, of any assets constituting a business unit, so long as (i)&nbsp;in each case, (A)&nbsp;no Default or
Event of Default has occurred and is continuing either before or immediately after giving effect to any such acquisition, (B)&nbsp;Holdings shall be in </FONT><FONT SIZE=2><I>pro
forma</I></FONT><FONT SIZE=2> compliance with the covenants contained in subsection 8.1 after giving effect to any such acquisition, and (C)&nbsp;after giving effect to any such acquisition, the sum
of the acquisitions pursuant to this subsection 8.10(f) and Investments pursuant to the provisos of subsection 8.10(d) and subsection 8.10(g) shall not exceed $200,000,000, (ii)&nbsp;with respect to
any acquisition of any Person, the Person to be acquired shall be in substantially the same line of business as the Borrower and (iii)&nbsp;the requirements of subsection 7.9 shall be satisfied with
respect to such acquisition (after giving effect thereto); </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;Investments
in any Joint Venture or in any Foreign Subsidiary which Foreign Subsidiary is not directly owned by the Borrower or a Subsidiary Guarantor (including
Investments in the nature of sales and transfers of assets for less than fair market value and assumptions or guarantees of Indebtedness), so long as (i)&nbsp;no Default or Event of Default has
occurred and is continuing either before or immediately after giving effect to any such Investment, (ii)&nbsp;Holdings shall be in </FONT><FONT SIZE=2><I>pro forma</I></FONT><FONT SIZE=2>
compliance with the covenants contained in subsection 8.1 after giving effect to any such </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>57</FONT></P>

<HR NOSHADE>
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<A NAME="page_lm2063_1_58"> </A>
<UL>

<P><FONT SIZE=2>
Investment, (iii)&nbsp;the aggregate amount of Investments pursuant to this subsection 8.10(g) does not exceed $100,000,000 (</FONT><FONT SIZE=2><I>provided,</I></FONT><FONT SIZE=2> that such
$100,000,000 basket may be replenished (up to the original available amount of $100,000,000) on a dollar-for-dollar basis with cash received by the Borrower or any Subsidiary
from any Joint Venture or any Foreign Subsidiary, which Foreign Subsidiary is not directly owned by the Borrower or a Subsidiary Guarantor, and, in each case, which was invested in pursuant to this
Section&nbsp;8.10(g) to the extent cash is used to repay Revolving Credit Loans pursuant to subsection 4.1), (iv)&nbsp;once the aggregate amount of Investments under this subsection 8.10(g)
exceeds $50,000,000, on the date of any such Investment, the Consolidated Leverage Ratio (calculated on a </FONT><FONT SIZE=2><I>pro forma</I></FONT><FONT SIZE=2> basis) of Holdings and its
consolidated Subsidiaries shall not exceed 2.75 to 1.00, and (v)&nbsp;after giving effect to any such Investment, and subject to the proviso in clause&nbsp;(iii) above, the sum of the Investments
pursuant to the proviso of subsection 8.10(d), acquisitions pursuant to subsection 8.10(f) and Investments pursuant to this subsection 8.10(g) shall not exceed $200,000,000; </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;Investments
comprised of capital contributions, loans or deferred purchase price (whether in the form of cash, a note or other assets) in any Receivables
Subsidiary; </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2>, that the aggregate amount of such Investments comprising of equity in any Receivables Subsidiary shall not exceed 5% of the
Receivables transferred to such Receivables Subsidiary; </FONT><FONT SIZE=2><I>provided, further</I></FONT><FONT SIZE=2>, that non-equity Investments in any Receivables Subsidiary shall
be pledged to the Administrative Agent for the benefit of the Lenders; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;loans
by the Borrower to members of its senior management in an aggregate principal amount not to exceed $2,000,000 at any time; </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;Investments
identified on </FONT><FONT SIZE=2><I>Schedule&nbsp;8.10</I></FONT><FONT SIZE=2>, without giving effect to any additions thereto or replacements
thereof; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;Investments
(including debt obligations) received in connection with the bankruptcy or reorganization of suppliers and customers and in settlement of delinquent
obligations of, and other disputes with, customers and suppliers arising in the ordinary course of business; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;Specified
Hedge Agreements permitted hereunder; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;debt
securities acquired as partial consideration for a sale of assets permitted by Section&nbsp;8.6; </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2>
that the aggregate amount of such debt securities acquired during the term of this Agreement shall not exceed $10,000,000; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;Investments
resulting from or to effect Capital Expenditures permitted by Section&nbsp;8.9; and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;pledges
or deposits made in the ordinary course of business consistent with past practice to secure obligations not considered Indebtedness. </FONT></P>

</UL>

<P><FONT SIZE=2><A
NAME="lm2063_8.11_limitation_on_transactions_with_affiliates."> </A>
<A NAME="toc_lm2063_12"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;8.11</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Limitation on Transactions with Affiliates. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Enter into any transaction, including, without limitation, any purchase, sale, lease or exchange of
property or the rendering of any service, with any
Affiliate (other than a Loan Party) unless such transaction is (a)&nbsp;otherwise permitted under this Agreement, (b)&nbsp;in the ordinary course of the Borrower's or such Subsidiary's business
or, if not in the ordinary course of business, the terms of which are set forth in writing and the board of directors of the Borrower or such Subsidiary, as the case may be, has determined in good
faith that such transaction meets the applicable criteria set forth in clause&nbsp;(c) below, and (c)&nbsp;upon fair and reasonable terms no less favorable to the Borrower or such Subsidiary, as
the case may be, than it would obtain in a comparable arm's length transaction with a Person which is not an Affiliate, provided, that the foregoing restriction shall not prohibit (i)&nbsp;payment
of reasonable fees, expenses and compensation paid to, and indemnity provided on behalf of, officers, directors and
employees of Holdings, the Borrower and its Subsidiaries, (ii)&nbsp;any payment or other transaction pursuant to any tax sharing agreement, </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>58</FONT></P>

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<P><FONT SIZE=2>
(iii)&nbsp;payments permitted under subsection 8.8 or subsection 8.10, (iv)&nbsp;the Indebtedness permitted pursuant to subsection 8.2(b), (v)&nbsp;any employment agreement entered into by the
Borrower or any of its Subsidiaries in the ordinary course of business, (vi)&nbsp;any issuance of securities in connection with employment arrangements, stock options and stock ownership plans of
the Borrower entered into in the ordinary course of business, (vii)&nbsp;any Permitted Securitization Transaction, and (viii)&nbsp;any other agreement as in effect on the Closing Date and as set
forth on </FONT><FONT SIZE=2><I>Schedule&nbsp;8.11</I></FONT><FONT SIZE=2>, or any transaction contemplated thereby, or any amendment thereto or any replacement agreement thereof, so long as such
amendment or replacement agreement is not more disadvantageous to the Loan Parties or the Lenders in any material respect than the original agreement as in effect on the Closing Date. . </FONT></P>

<P><FONT SIZE=2><A
NAME="lm2063_8.12_limitation_on_sales_and_leasebacks."> </A>
<A NAME="toc_lm2063_13"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;8.12</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Limitation on Sales and Leasebacks. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Enter into any arrangement with any Person providing for the leasing by the Borrower or any Subsidiary of
real or personal property which has been or is to be
sold or transferred by the Borrower or such Subsidiary to such Person or to any other Person to whom funds have been or are to be advanced by such Person on the security of such property or rental
obligations of the Borrower or such Subsidiary (a "</FONT><FONT SIZE=2><I>Sale/Leaseback Transaction</I></FONT><FONT SIZE=2>"), other than Sale/Leaseback Transactions the Asset Sales with respect to
which are permitted under subsection 8.6(g). </FONT></P>

<P><FONT SIZE=2><A
NAME="lm2063_8.13_limitation_on_changes_in_fiscal_year."> </A>
<A NAME="toc_lm2063_14"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;8.13</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Limitation on Changes in Fiscal Year. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Change the fiscal year of Holdings; provided that Holdings may change the basis of its fiscal year from
<SUP>52</SUP>/<SMALL>53</SMALL> weeks to a calendar year. </FONT></P>

<P><FONT SIZE=2><A
NAME="lm2063_8.14_limitation_on_certain_clauses."> </A>
<A NAME="toc_lm2063_15"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;8.14</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Limitation on Certain Clauses. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Enter into with any Person any agreement, which prohibits or limits the ability of the Borrower or any of its
Subsidiaries to create, incur, assume or suffer
to exist any Lien upon any of its property, assets or revenues, whether now owned or hereafter acquired or which prohibits or limits loans or dividends by Subsidiaries to the Borrower, other than
(a)&nbsp;this Agreement, (b)&nbsp;any industrial revenue or development financings, purchase money mortgages or Financing Leases permitted by this Agreement (in which cases, any prohibition or
limitation shall only be effective against the assets financed thereby or securing any such financing, mortgage or Lease) or other Liens permitted by subsection 8.3 (in which case any prohibition or
limitations may only be effective against the assets subject to such Liens), or (c)&nbsp;any other Contractual Obligation permitted by this Agreement
(</FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that any prohibition of the type limited by this subsection contained in any such Contractual Obligation may be effective only against the
rights of the Borrower or its Subsidiary in the contract or agreement relating to such Contractual Obligation and the assets subject thereto). </FONT></P>


<P><FONT SIZE=2><A
NAME="lm2063_8.15_limitation_on_lines_of_business."> </A>
<A NAME="toc_lm2063_16"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;8.15</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Limitation on Lines of Business. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Enter into any business, either directly or through any Subsidiary, except for those businesses in which the
Borrower and its Subsidiaries are engaged on the
Closing Date (including the manufacture and distribution of ceramic tile and related products and the distribution of home furnishing, construction and renovation products connected to ceramic tile
and related products) or any Related Business. </FONT></P>

<P><FONT SIZE=2><A
NAME="lm2063_8.16_amendments_to_perm__lm202138"> </A>
<A NAME="toc_lm2063_17"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;8.16</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Amendments to Permitted Securitization Transaction. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Amend, modify or change any of the terms of any Permitted Securitization Transaction (other
than by any amendment, modification, change, supplement or waiver
which (a)&nbsp;would extend the maturity thereof or, with the consent of the Administrative Agent (which consent shall not be unreasonably withheld), change the fees payable with respect thereto,
(b)&nbsp;does not adversely affect in any material respect the interests of the Administrative Agent or the Lenders hereunder or under the Loan Documents or (c)&nbsp;is of a technical or
clarifying nature). </FONT></P>

<P><FONT SIZE=2><A
NAME="lm2063_8.17_limitation_on_optional_pa__8.102834"> </A>
<A NAME="toc_lm2063_18"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;8.17</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Limitation on Optional Payments and Modifications of Debt Instruments. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a)&nbsp;Make any optional payment or prepayment on or redemption or
purchase of any Subordinated Debt, (b)&nbsp;amend, modify or change, or consent or
agree to any amendment, modification or change to any of the terms of any Subordinated Debt (other than any such amendment, modification or change which would extend the maturity, shorten the maturity
to a date not prior to October&nbsp;31, 2007 or reduce the amount of any payment of principal thereof or which would reduce the rate or extend the date for payment of interest thereon or which would
make the covenants applicable thereto less restrictive on the Borrower and its Subsidiaries), or (c)&nbsp;amend the subordination provisions of the Subordinated Debt without obtaining the prior
written consent of the Administrative Agent (which consent shall not be unreasonably withheld). </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>59</FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="lo2063_section_9._negative_covenants_of_holdings"> </A>
<A NAME="toc_lo2063_1"> </A>
<BR></FONT><FONT SIZE=2>SECTION 9. NEGATIVE COVENANTS OF HOLDINGS    <BR></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Holdings
agrees that, so long as the Commitments remain in effect or any amount is owing to any Lender or the Administrative Agent hereunder or under any other Loan Document or any
Letter of Credit remains outstanding, Holdings shall not, unless the Required Lenders shall otherwise agree in writing: </FONT></P>

<P><FONT SIZE=2><A
NAME="lo2063_9.1_limitation_on_holdings__activities."> </A>
<A NAME="toc_lo2063_2"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;9.1</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Limitation on Holdings' Activities. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Create, incur, assume or suffer to exist any Indebtedness, Lien or Guarantee Obligation, or make any
Investments, loans or advances to any Person, or purchase
any material assets, or conduct, transact or otherwise engage, or commit to transact, conduct or otherwise engage, in any business or operations other than (i)&nbsp;transactions contemplated in
connection with the consummation of the Merger, (ii)&nbsp;the ownership of the Capital Stock of the Borrower, and the exercise of rights and performance of obligations in connection therewith,
(iii)&nbsp;the entry into, and exercise of rights and performance of obligations in respect of, (A)&nbsp;this Agreement, (B)&nbsp;contracts and agreements with or for the benefit of officers,
directors and employees of Holdings or any Subsidiary thereof relating to their employment or directorships, (C)&nbsp;insurance policies and related contracts and agreements, (D)&nbsp;a Permitted
Securitization Transaction and (E)&nbsp;equity subscription agreements, registration rights agreements, warrant agreements, voting and other stockholder agreements, engagement letters, underwriting
agreements and other agreements in respect of its equity securities or any offering, issuance or sale thereof, (iv)&nbsp;transactions which would be permitted for the Borrower pursuant to
subsections 8.2, 8.3, 8.4, 8.6 and 8.10, </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that (A)&nbsp;the qualitative and quantitative limitations described in those subsections shall
apply to Holdings, and (B)&nbsp;each such transaction shall reduce the amount permitted for the Borrower under each such subsection, (v)&nbsp;the offering, issuance and sale of its equity
securities to the extent such offering, issuance or sale does not constitute a Default or Event of Default under subsection 11(j), (vi)&nbsp;the filing of registration statements, and compliance
with applicable reporting and other obligations, under and compliance with its federal, state or other securities laws, (vii)&nbsp;the performance of obligations under and compliance with its
certificate of incorporation and by-laws, or any applicable law, ordinance, regulation, rule, order, judgment, decree or permit, including, without limitation, as a result of or in
connection with the activities of its Subsidiaries, (viii)&nbsp;the performance of contractual obligations in existence on the date hereof or otherwise permitted hereunder, (ix)&nbsp;the
incurrence and payment of its business expenses and any taxes for which it may be liable and (x)&nbsp;other activities necessarily incidental to the foregoing. </FONT></P>

<P><FONT SIZE=2><A
NAME="lo2063_9.2_restricted_payments."> </A>
<A NAME="toc_lo2063_3"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;9.2</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Restricted Payments. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Use any amount received by it pursuant to subsection 8.8 from the Borrower or any of its Subsidiaries for any purpose other
than as set forth in such
subsection. </FONT></P>

<P><FONT SIZE=2><A
NAME="lo2063_9.3_equity_net_proceeds."> </A>
<A NAME="toc_lo2063_4"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;9.3</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Equity Net Proceeds. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Fail to contribute the Net Proceeds of any issuance of Common Stock by Holdings subsequent to the Closing Date to the
Borrower (or to a Person if Holdings'
investment therein is permitted under subsection 9.1) within five Business Days of the receipt of such Net Proceeds. </FONT></P>

<P><FONT SIZE=2><A
NAME="lo2063_9.4_dividends."> </A>
<A NAME="toc_lo2063_5"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;9.4</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Dividends. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Declare or pay any dividend (other than dividends payable solely in Common Stock or other Capital Stock of Holdings) on, or make any
payment on account of, or
set apart assets for a sinking or other analogous fund for the purchase, redemption, defeasance, retirement or other acquisition of Capital Stock of Holdings, or any warrants or options to purchase
any such Stock, whether now or hereafter outstanding, or make any other distribution in respect thereof, either directly or indirectly, whether in cash or property or in obligations of Holdings or any
of its Subsidiaries, except as contemplated by clause&nbsp;(d) of subsection 8.8. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="lo2063_section_10._guarantee"> </A>
<A NAME="toc_lo2063_6"> </A>
<BR></FONT><FONT SIZE=2>SECTION 10. GUARANTEE    <BR></FONT></P>

<P><FONT SIZE=2><A
NAME="lo2063_10.1_guarantee."> </A>
<A NAME="toc_lo2063_7"> </A>
   &nbsp;&nbsp;&nbsp;&nbsp;10.1</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Guarantee. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a)&nbsp;To induce the Administrative Agent and the Lenders to execute and deliver this Agreement and to make the Extensions of Credit
   provided for herein to
the Borrower, Holdings hereby unconditionally and irrevocably guarantees to the Administrative Agent and the Lenders (and </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>60</FONT></P>

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<P><FONT SIZE=2>
the Lender Affiliates party to the Specified Hedge Agreements) and their respective successors, permitted transferees and permitted assigns, the prompt and complete payment and performance by the
Borrower when due (whether at the stated maturity, by acceleration or otherwise) of the Obligations. Holdings further agrees to pay any and all reasonable expenses (including, without limitation, all
reasonable fees and disbursements of counsel) which may be paid or incurred by the Administrative Agent or any Lender (or any Lender Affiliate party to any Specified Hedge Agreement) in enforcing, or
obtaining advice of counsel in respect of, any rights with respect to, or collecting, any or all of the Obligations and/or enforcing any rights with respect to, or collecting against, Holdings under
this Section&nbsp;10. This Guarantee shall remain in full force and effect until the Obligations (other than the Obligations with respect to any Specified Hedge Agreement) are paid in full, the
Commitments are terminated and no Letter of Credit is outstanding or not fully collateralized on terms satisfactory to the Administrative Agent, notwithstanding that from time to time prior thereto
the Borrower may be free from any Obligations. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;No
payment or payments made by the Borrower or any other Person or received or collected by the Administrative Agent or any Lender (or any Lender Affiliate party to
any Specified Hedge Agreement) from the Borrower or any other Person by virtue of any action or proceeding or any set-off or appropriation or application, at any time or from time to time,
in reduction of or in payment of the Obligations shall be deemed to modify, reduce, release or otherwise affect the liability of Holdings
under this Section&nbsp;10 which shall, notwithstanding any such payment or payments, remain in full force and effect until the Obligations (other than the Obligations with respect to any Specified
Hedge Agreements) are paid in full, the Commitments are terminated and no Letter of Credit is outstanding or not fully collateralized on terms satisfactory to the Administrative Agent. Holdings agrees
that whenever, at any time, or from time to time, it shall make any payment to the Administrative Agent or any Lender (or any Lender Affiliate party to any Specified Hedge Agreement) on account of its
liability under this Section&nbsp;10, it will notify the Administrative Agent and such Lender (or such Lender Affiliate) in writing that such payment is made under this Section&nbsp;10 for such
purpose. </FONT></P>

<P><FONT SIZE=2><A
NAME="lo2063_10.2_no_subrogation,_contribut__10.02209"> </A>
<A NAME="toc_lo2063_8"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;10.2</FONT><FONT SIZE=2><I>&nbsp;&nbsp;No Subrogation, Contribution, Reimbursement or Indemnity. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Notwithstanding anything to the contrary in this Section&nbsp;10, Holdings shall not
be entitled to be subrogated to any of the rights of the Administrative
Agent or any Lender (or any Lender Affiliate party to any Specified Hedge Agreement) against the Borrower or any other Guarantor or any collateral security or guarantee or right of offset held by any
Lender (or any Lender Affiliate party to any Specified Hedge Agreement) for the payment of the Obligations, nor shall Holdings seek or be entitled to seek any contribution or reimbursement from the
Borrower or any other Guarantor in respect of payments made by Holdings hereunder, until all amounts owing to the Administrative Agent and the Lenders (and the Lender Affiliates party to the Specified
Hedge Agreements) by the Borrower on account of the Obligations (other than the Obligations with respect to any Specified Hedge Agreement) are paid in full, the Commitments are terminated and no
Letter of Credit remains outstanding or not fully collateralized on terms satisfactory to the Administrative Agent. If any amount shall be paid to Holdings on account of such subrogation rights at any
time when all of the Obligations (other than the Obligations with respect to any Specified Hedge Agreement) shall not have been paid in full, the Commitments shall not have been terminated or a Letter
of Credit remains outstanding, such amount shall be held by Holdings in trust for the Administrative Agent and the Lenders (and the Lender Affiliates party to the Specified Hedge Agreements),
segregated from other funds of Holdings, and shall, forthwith upon receipt by Holdings, be turned over to the Administrative Agent in the exact form received by Holdings (duly indorsed by Holdings to
the Administrative Agent, if required), to be applied against the Obligations, whether matured or unmatured, in such order as the Administrative Agent may determine. The provisions of this subsection
shall survive the termination of the guarantee contained in this Section&nbsp;10 and the payment in full of the Obligations (other than the Obligations with respect to any Specified Hedge
Agreement), the termination of the Commitments and the cancellation, revocation or termination of all outstanding Letters of Credit. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>61</FONT></P>

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<P><FONT SIZE=2><A
NAME="lo2063_10.3_amendments,_etc."> </A>
<A NAME="toc_lo2063_9"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;10.3</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Amendments, etc. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;with respect to the Obligations; Waiver of Rights. Holdings shall remain obligated hereunder notwithstanding that, without any
reservation of rights against
Holdings, and without notice to or further assent by Holdings, any demand for payment of any of the Obligations made by the Administrative Agent or any Lender (or any Lender Affiliate party to any
Specified Hedge Agreement) may be rescinded by the Administrative Agent or such Lender (or such Lender Affiliate), and any of the Obligations continued, and the Obligations, or the liability of any
other party upon or for any part thereof, or any collateral security or guarantee therefor or right of offset with respect thereto, may, from time to time, in whole or in part, be renewed, extended,
amended, modified, accelerated, compromised, waived, surrendered or released by the Administrative Agent or any Lender (or any Lender Affiliate party to any Specified Hedge Agreement), and this
Agreement, the other Loan
Documents, any Specified Hedge Agreement and any other documents executed and delivered in connection herewith or therewith may be amended, modified, supplemented or terminated, in whole or in part,
as the Administrative Agent (or the Required Lenders, as the case may be) or such Lender or Lender Affiliate may deem advisable from time to time, and any collateral security, guarantee or right of
offset at any time held by the Administrative Agent or any Lender for the payment of the Obligations may be sold, exchanged, waived, surrendered or released. Neither the Administrative Agent nor any
Lender (or any Lender Affiliate party to any Specified Hedge Agreement) shall have any obligation to protect, secure, perfect or insure any Lien at any time held by it as security for the Obligations
or for the guarantee contained in this Section&nbsp;10 or any property subject thereto. When making any demand hereunder against Holdings, the Administrative Agent or any Lender (or any Lender
Affiliate party to any Specified Hedge Agreement) may, but shall be under no obligation to, make a similar demand on the Borrower or any other guarantor, and any failure by the Administrative Agent or
any Lender (or any Lender Affiliate party to any Specified Hedge Agreement) to make any such demand or to collect any payments from the Borrower or any such other guarantor or any release of the
Borrower or such other guarantor shall not relieve Holdings of its obligations or liabilities under this Section&nbsp;10, and shall not impair or affect the rights and remedies, express or implied,
or as a matter of law, of the Administrative Agent or any Lender (or any Lender Affiliate party to any Specified Hedge Agreement) against Holdings. For the purposes hereof "demand" shall include the
commencement and continuance of any legal proceedings. </FONT></P>

<P><FONT SIZE=2><A
NAME="lo2063_10.4_guarantee_absolute_and_unconditional."> </A>
<A NAME="toc_lo2063_10"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;10.4</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Guarantee Absolute and Unconditional. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Holdings waives, to the fullest extent permitted by applicable law, any and all notice of the creation,
renewal, extension or accrual of any of the Obligations
and notice of or proof of reliance by the Administrative Agent or any Lender (or any Lender Affiliate party to any Specified Hedge Agreement) upon the guarantee contained in this Section&nbsp;10 or
acceptance of the guarantee contained in this Section&nbsp;10; the Obligations, and any of them, shall conclusively be deemed to have been created, contracted or incurred, or renewed, extended,
amended or waived, in reliance upon the guarantee contained in this Section&nbsp;10; and all dealings between the Borrower or Holdings, on the one hand, and the Administrative Agent and the Lenders
(and the Lender Affiliates party to the Specified Hedge Agreements), on the other hand, shall likewise be conclusively presumed to have been had or consummated in reliance upon the guarantee contained
in this Section&nbsp;10. Holdings waives, to the fullest extent permitted by applicable law, diligence, presentment, protest, demand for payment and notice of default or nonpayment to or upon the
Borrower or Holdings with respect to the Obligations. This Guarantee shall be construed as a continuing, absolute and unconditional guarantee of payment without regard to (a)&nbsp;the validity,
regularity or enforceability of this Agreement, any Note, any other Loan Document, any Specified Hedge Agreement, any of the Obligations or any guarantee or right of offset with respect thereto at any
time or from time to time held by the Administrative Agent or any Lender (or any Lender Affiliate party to any Specified Hedge Agreement), (b)&nbsp;any defense, set-off or counterclaim
(other than a defense of payment or performance) which may at any time be available to or be asserted by the Borrower against the Administrative Agent or any Lender (or any Lender Affiliate party to
any Specified Hedge Agreement) or (c)&nbsp;any other circumstance whatsoever (other than payment or other </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>62</FONT></P>

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<A NAME="page_lo2063_1_63"> </A>

<P><FONT SIZE=2>
satisfaction in full) (with or without notice to or knowledge of the Borrower or Holdings) which constitutes, or might be construed to constitute, an equitable or legal discharge of the Borrower for
the Obligations, or of Holdings under the guarantee contained in this Section&nbsp;10, in bankruptcy or in any other instance. When pursuing its rights and remedies hereunder against Holdings, the
Administrative
Agent and any Lender may, but shall be under no obligation to, pursue such rights and remedies as it may have against the Borrower or any other Person or against any guarantee for the Obligations or
any right of offset with respect thereto, and any failure by the Administrative Agent or any Lender (or any Lender Affiliate party to any Specified Hedge Agreement) to pursue such other rights or
remedies or to collect any payments from the Borrower or any such other Person or to realize upon any such guarantee or to exercise any such right of offset, or any release of the Borrower or any such
other Person or of any such guarantee or right of offset, shall not relieve Holdings of any liability hereunder, and shall not impair or affect the rights and remedies, whether express, implied or
available as a matter of law, of the Administrative Agent or any Lender (or any Lender Affiliate party to any Specified Hedge Agreement) against Holdings. The guarantee contained in this
Section&nbsp;10 shall remain in full force and effect and be binding in accordance with and to the extent of its terms upon Holdings and its successors, and shall inure to the benefit of the
Administrative Agent and the Lenders, and their respective successors, permitted transferees and permitted assigns, until all the Obligations (other than the Obligations with respect o the Specified
Hedge Agreements) and the obligations of Holdings under this Guarantee shall have been satisfied by payment in full, the Commitments shall be terminated and no Letter of Credit shall remain
outstanding, notwithstanding that from time to time during the term of this Agreement the Borrower may be free from any Obligations. </FONT></P>

<P><FONT SIZE=2><A
NAME="lo2063_10.5_reinstatement."> </A>
<A NAME="toc_lo2063_11"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;10.5</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Reinstatement. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The guarantee contained in this Section&nbsp;10 shall continue to be effective, or be reinstated, as the case may be, if at any
time payment, or any part
thereof, of any of the Obligations is rescinded or must otherwise be restored or returned by the Administrative Agent or any Lender upon the insolvency, bankruptcy, dissolution, liquidation or
reorganization of the Borrower or upon or as a result of the appointment of a receiver, intervenor or conservator of, or trustee or similar officer for, the Borrower or any substantial part of its
property, or otherwise, all as though such payments had not been made. </FONT></P>

<P><FONT SIZE=2><A
NAME="lo2063_10.6_payments."> </A>
<A NAME="toc_lo2063_12"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;10.6</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Payments. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Holdings hereby agrees that the Obligations will be paid to the Administrative Agent without set-off or counterclaim in Dollars at the
office of
the Administrative Agent located at 270 Park Avenue, New York, New York 10017. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="lo2063_section_11._events_of_default"> </A>
<A NAME="toc_lo2063_13"> </A>
<BR></FONT><FONT SIZE=2>SECTION 11. EVENTS OF DEFAULT    <BR></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;If
any of the following events shall occur and be continuing: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The
Borrower shall fail to pay any principal of any Loan or any Reimbursement Obligation when due in accordance with the terms thereof or hereof; or the Borrower
shall fail to pay any interest on any Loan, or any other amount payable hereunder, within three Business Days after any such interest or other amount becomes due in accordance with the terms thereof
or hereof; or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Any
representation or warranty made or deemed made by the Borrower or any other Loan Party herein or in any other Loan Document or which is contained in any
certificate, document or financial
or other statement furnished by it at any time under or in connection with this Agreement or any such other Loan Document shall prove to have been incorrect in any material respect on or as of the
date made or deemed made; or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The
Borrower or any other Loan Party shall default in the observance or performance of any agreement contained in subsection 7.9, Section&nbsp;8 or
Section&nbsp;9; or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The
Borrower or any other Loan Party shall default in the observance or performance of any other agreement contained in this Agreement or any other Loan Document
(other than as provided in </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>63</FONT></P>

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<P><FONT SIZE=2>
paragraphs (a)&nbsp;through (c)&nbsp;of this Section), and such default shall continue unremedied for a period of 30&nbsp;days after the earlier of (i)&nbsp;the date on which a Responsible
Officer of Holdings becomes aware of such default or (ii)&nbsp;the date on which written notice thereof shall have been given to the Borrower by the Administrative Agent or any Lender; or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Holdings,
the Borrower or any its Subsidiaries shall (i)&nbsp;default in any payment of principal of or interest on any Indebtedness (other than the Loans) or in
the payment of any Guarantee Obligation, beyond the period of grace (not to exceed 60&nbsp;days), if any, provided in the instrument or agreement under which such Indebtedness or Guarantee
Obligation was created, as the case may be, if the aggregate amount of the Indebtedness and/or Guarantee Obligations in respect of which such default or defaults shall have occurred is at least
$5,000,000; or (ii)&nbsp;default in the observance or performance of any other agreement or condition to be observed or performed by such Person relating to any such Indebtedness or Guarantee
Obligation or contained in any instrument or agreement evidencing, securing or relating thereto, or any other event shall occur or condition exist, the effect of which default or other event or
condition is to cause, or to permit the holder or holders of such Indebtedness or beneficiary or beneficiaries of such Guarantee Obligation (or a trustee or agent on behalf of such holder or holders
or beneficiary or beneficiaries) to cause, with the giving of notice if required, such Indebtedness to become due prior to its stated maturity or the full amount of such Guarantee Obligation to become
payable, </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2>, </FONT><FONT SIZE=2><I>however</I></FONT><FONT SIZE=2>, that, a default, event or condition described in this subsection
11(e)(ii)&nbsp;shall not constitute an Event of Default under this subsection 11(e) unless, at the time of such default, event or condition, defaults, events or conditions of the type described in
this subsection 11(e)(ii)&nbsp;shall have occurred and are continuing with respect to Indebtedness and Guarantee Obligations the aggregate amount of which exceeds $5,000,000; or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;(i)&nbsp;The
Borrower or any of its Significant Subsidiaries or Holdings shall commence any case, proceeding or other action (A)&nbsp;under any existing or
future law of any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency, reorganization or relief of debtors, seeking to have an order for relief entered with respect to it, or seeking
to adjudicate it a bankrupt or insolvent, or seeking reorganization, arrangement, adjustment, winding-up, liquidation, dissolution, composition or other relief with respect to it or its
debts, or (B)&nbsp;seeking appointment of a receiver, trustee, custodian, conservator or other similar official for it or for all or any substantial part of its assets, or the Borrower or any of
its Significant Subsidiaries or Holdings shall make a general assignment for the benefit of its creditors; or (ii)&nbsp;there shall be commenced against the Borrower or any of its Significant
Subsidiaries or Holdings any case, proceeding or other action of a nature referred to in clause&nbsp;(i) above which (A)&nbsp;results in the entry of an order for relief or any such adjudication
or appointment or (B)&nbsp;remains undismissed, undischarged or unbonded for a period of 60&nbsp;days; or (iii)&nbsp;there shall be commenced against the Borrower or any of its Significant
Subsidiaries or Holdings any case, proceeding or other action seeking issuance of a warrant of attachment, execution, distraint or similar process against all or any substantial part of its assets
which results in the entry of an order for any such relief which shall not have been vacated, discharged, or stayed or bonded pending appeal within 60&nbsp;days from the entry thereof; or
(iv)&nbsp;the Borrower or any of its Significant Subsidiaries or Holdings shall take any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the acts set
forth in clause&nbsp;(i), (ii), or (iii)&nbsp;above; or (v)&nbsp;the Borrower or any of its Significant Subsidiaries or Holdings shall generally not, or shall be unable to, or shall admit in
writing its inability to, pay its debts as they become due; or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;(i)&nbsp;Any
Person shall engage in any "prohibited transaction" (as defined in Section&nbsp;406 of ERISA or Section&nbsp;4975 of the Code) involving any
Plan, (ii)&nbsp;any "accumulated funding deficiency" (as defined in Section&nbsp;302 of ERISA), whether or not waived, shall exist with respect to any Plan or any Lien in favor of the PBGC or a
Plan shall arise on the assets of the Borrower or any Commonly Controlled Entity, (iii)&nbsp;a Reportable Event shall occur with respect to, or proceedings shall commence to have a trustee
appointed, or a trustee shall be appointed, to administer or to terminate, any Single </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>64</FONT></P>

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<P><FONT SIZE=2>
Employer Plan, which Reportable Event or commencement of proceedings or appointment of a trustee is, in the reasonable opinion of the Required Lenders, likely to result in the termination of such Plan
for purposes of Title IV of ERISA, (iv)&nbsp;any Single Employer Plan shall terminate for purposes of Title IV of ERISA, (v)&nbsp;the Borrower or any Commonly Controlled Entity shall, or in the
reasonable opinion of the Required Lenders is likely to, incur any liability in connection with a withdrawal from, or the Insolvency or Reorganization of, a Multiemployer Plan, or (vi)&nbsp;any
other similar event or condition shall occur or exist with respect to a Plan that could result in a liability (other than in the ordinary course), and in each case in clauses (i)&nbsp;through
(vi)&nbsp;above, such event or condition, together with all other such events or conditions, if any, is reasonably likely to have a Material Adverse Effect; or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;One
or more judgments or decrees shall be entered against the Borrower or any of its Subsidiaries involving in the aggregate a liability (not paid or fully covered
by insurance) of $5,000,000 or more, and all such judgments or decrees shall not have been vacated, discharged, stayed or bonded pending appeal within 60&nbsp;days from the entry thereof; or </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;Any
Guarantee shall cease, for any reason, to be in full force and effect or any Guarantor shall so assert; or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;(i)&nbsp;Any
of the Security Documents shall cease, for any reason, to be in full force and effect, or the Borrower or any other Loan Party which is a party to
any of the Security Documents shall so assert or
(ii)&nbsp;the Lien created by any of the Security Documents shall cease to be enforceable and of the same effect and priority purported to be created thereby; or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;Any
"Termination Event" under a Permitted Securitization Transaction or any similar such event or occurrence as defined in the documentation relating to a Permitted
Securitization Transaction, or any event or circumstance entitling the Persons purchasing, or financing the purchase of, Receivables under a Permitted Securitization Transaction to stop so purchasing
or financing (other than by reason of the occurrence of the stated expiry date of such Permitted Securitization Transaction or any termination of such Permitted Securitization Transaction in
compliance with Section&nbsp;7.10), </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that any notices or cure periods that are conditions to the rights of such Persons to stop purchasing, or
financing the purchase of, such Receivables have been given or have expired, as the case may be; or </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;A
Change in Control shall occur; </FONT></P>

<P><FONT SIZE=2>then,
and in any such event, (A)&nbsp;if such event is an Event of Default specified in clause&nbsp;(i), (ii)&nbsp;or (iii)&nbsp;of paragraph&nbsp;(f) of this Section with respect to the
Borrower, automatically the Commitments (including the Swing Line Commitment) shall immediately terminate and the Loans hereunder (with accrued interest thereon) and all other amounts owing under this
Agreement (including, without limitation, all amounts of L/C Obligations, whether or not the beneficiaries of the then outstanding Letters of Credit shall have presented the documents required
thereunder) shall immediately become due and payable, and (B)&nbsp;if such event is any other Event of Default, either or both of the following actions may be taken: (i)&nbsp;with the consent of
the Required Lenders, the Administrative Agent may, or upon the request of the Required Lenders, the Administrative Agent shall, by notice to the Borrower declare the Commitments (including the Swing
Line Commitment) to be terminated forthwith, whereupon the Commitments shall immediately terminate; and (ii)&nbsp;with the consent of the Required Lenders, the Administrative Agent may, or upon the
request of the Required Lenders, the Administrative Agent shall, by notice to the Borrower, declare the Loans hereunder (with accrued interest thereon) and all other amounts (including, without
limitation, all amounts of L/C Obligations, whether or not the beneficiaries of the then outstanding Letters of Credit shall have presented the documents required thereunder) owing under this
Agreement to be due and payable forthwith, whereupon the same shall immediately become due and payable. Except as expressly provided above in this Section, presentment, demand, protest and all other
notices of any kind are hereby expressly waived. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>65</FONT></P>

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<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;With respect to all Letters of Credit with respect to which presentment for honor shall not have occurred at the time of an acceleration pursuant to the preceding paragraph, the
Borrower shall at such time deposit in a cash collateral account opened by the Administrative Agent an amount equal to the aggregate then undrawn and unexpired amount of such Letters of Credit. The
Borrower hereby grants to the Administrative Agent, for the benefit of the Issuing Bank and the L/C Participants, a security interest in such cash collateral to secure all obligations of the Borrower
under this Agreement and the other Loan Documents. Amounts held in such cash collateral account shall be applied by the Administrative Agent to the payment of drafts drawn under such Letters of
Credit, and the unused
portion thereof after all such Letters of Credit shall have expired or been fully drawn upon, if any, shall be applied to repay other Obligations. After all such Letters of Credit shall have expired
or been fully drawn upon, all Reimbursement Obligations shall have been satisfied and all other Obligations shall have been paid in full, the balance, if any, in such cash collateral account shall be
returned to the Borrower. The Borrower shall execute and deliver to the Administrative Agent, for the account of the Issuing Bank and the L/C Participants, such further documents and instruments as
the Administrative Agent may request to evidence the creation and perfection of the security interest in such cash collateral account. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="lo2063_section_12._the_administrative_agent"> </A>
<A NAME="toc_lo2063_14"> </A>
<BR></FONT><FONT SIZE=2>SECTION 12. THE ADMINISTRATIVE AGENT    <BR></FONT></P>

<P><FONT SIZE=2><A
NAME="lo2063_12.1_appointment."> </A>
<A NAME="toc_lo2063_15"> </A>
  &nbsp;&nbsp;&nbsp;&nbsp;12.1</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Appointment. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Each Lender hereby irrevocably designates and appoints the Administrative Agent as the agent of such Lender under this Agreement and the
  other Loan Documents,
and each such Lender irrevocably authorizes the Administrative Agent, in such capacity, to take such action on its behalf under the provisions of this Agreement and the other Loan Documents and to
exercise such powers and perform such duties as are expressly delegated to the Administrative Agent by the terms of this Agreement and the other Loan Documents, together with such other powers as are
reasonably incidental thereto. Notwithstanding any provision to the contrary elsewhere in this Agreement, the Administrative Agent shall not have any duties or responsibilities, except those expressly
set forth herein, or any fiduciary relationship with any Lender, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or any
other Loan Document or otherwise exist against the Administrative Agent. </FONT></P>

<P><FONT SIZE=2><A
NAME="lo2063_12.2_delegation_of_duties."> </A>
<A NAME="toc_lo2063_16"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;12.2</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Delegation of Duties. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The Administrative Agent may execute any of its duties under this Agreement and the other Loan Documents by or through
agents or
attorneys-in-fact and shall be entitled to advice of counsel concerning all matters pertaining to such duties. The Administrative Agent shall not be responsible for the
negligence or misconduct of any agents or attorneys in-fact selected by it with reasonable care. </FONT></P>

<P><FONT SIZE=2><A
NAME="lo2063_12.3_exculpatory_provisions."> </A>
<A NAME="toc_lo2063_17"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;12.3</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Exculpatory Provisions. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Neither the Administrative Agent nor any of its officers, directors, employees, agents, attorneys-in-fact or Affiliates
shall be
(i)&nbsp;liable for any action lawfully taken or omitted to be taken by it or such Person under or in connection with this Agreement or any other Loan Document (except for its or such Person's own
gross negligence or willful misconduct) or (ii)&nbsp;responsible in any manner to any of the Lenders for any recitals, statements, representations or warranties made by the Borrower or any officer
thereof contained in this Agreement or any other Loan Document or in any certificate, report, statement or other document referred to or provided for in, or received by the Administrative Agent under
or in connection with, this Agreement or any other Loan Document or for the value, validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other Loan Document or
for any failure of the Borrower to perform its obligations hereunder or thereunder. The Administrative Agent shall not be under any obligation to any Lender to ascertain or to inquire as to the
observance or performance of any of the agreements contained in, or conditions of, this Agreement or any other Loan Document, or to inspect the properties, books or records of the Borrower. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>66</FONT></P>

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<P><FONT SIZE=2><A
NAME="lo2063_12.4_reliance_by_administrative_agent."> </A>
<A NAME="toc_lo2063_18"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;12.4</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Reliance by Administrative Agent. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The Administrative Agent shall be entitled to rely, and shall be fully protected in relying, upon any Note,
writing, resolution, notice, consent, certificate,
affidavit, letter, telecopy, telex or teletype message, statement, order or other document or conversation believed by it to be genuine and correct and to have been signed, sent or made by the proper
Person or Persons and upon advice and statements of legal counsel (including, without limitation, counsel to the Borrower), independent accountants and other experts selected by the Administrative
Agent. The Administrative Agent may deem and treat the payee of any Note as the owner thereof for all purposes unless a written notice of assignment, negotiation or transfer thereof shall have been
filed with the Administrative Agent. The Administrative Agent shall be fully justified in failing or refusing to take any action under this Agreement or any other Loan Document unless it shall first
receive such advice or concurrence of the Required Lenders (or such other Lenders as shall be required by this Agreement) as it deems appropriate or it shall first be indemnified to its satisfaction
by the Lenders against any and all liability and expense which may be incurred by it by reason of taking or continuing to take any such action. The Administrative Agent shall in all cases be fully
protected in acting, or in refraining from acting, under this Agreement and the other Loan Documents in accordance with a request of the Required Lenders (or such other Lenders as shall be required by
this Agreement), and such request and any action taken or failure to act pursuant thereto shall be binding upon all the Lenders and all future holders of the Loans. </FONT></P>

<P><FONT SIZE=2><A
NAME="lo2063_12.5_notice_of_default."> </A>
<A NAME="toc_lo2063_19"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;12.5</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Notice of Default. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The Administrative Agent shall not be deemed to have knowledge or notice of the occurrence of any Default or Event of Default
hereunder unless the
Administrative Agent has received notice from a Lender or the Borrower or Holdings referring to this Agreement, describing such Default or Event of Default and stating that such notice is a "notice of
default". In the event that the Administrative Agent receives such a notice, the Administrative Agent shall give notice thereof to the Lenders. The Administrative Agent shall take such action with
respect to such Default or Event of Default as shall be reasonably directed by the Required Lenders (or such other Lenders as shall be required by this Agreement, provided that unless and until the
Administrative Agent shall have received such directions, the Administrative Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such
Default or Event of Default as it shall deem advisable in the best interests of the Lenders. </FONT></P>

<P><FONT SIZE=2><A
NAME="lo2063_12.6_non-reliance_on_ad__lo202141"> </A>
<A NAME="toc_lo2063_20"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;12.6</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Non-Reliance on Administrative Agent and Other Lenders. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Each Lender expressly acknowledges that neither the Administrative Agent nor any of its
officers, directors, employees, agents,
attorneys-in-fact or Affiliates has made any representations or warranties to it and that no act by the Administrative Agent hereinafter taken, including any review of the
affairs of the Borrower, shall be deemed to constitute any representation or warranty by the Administrative Agent to any Lender. Each Lender represents to the Administrative Agent that it has,
independently and without reliance upon the Administrative Agent or any other Lender, and based on such documents and information as it has deemed appropriate, made its own appraisal of and
investigation into the business, operations, property, financial and other condition and creditworthiness of the Borrower and made its own decision to make its Loans hereunder and enter into this
Agreement. Each
Lender also represents that it will, independently and without reliance upon the Administrative Agent or any other Lender, and based on such documents and information as it shall deem appropriate at
the time, continue to make its own credit analysis, appraisals and decisions in taking or not taking action under this Agreement and the other Loan Documents, and to make such investigation as it
deems necessary to inform itself as to the business, operations, property, financial and other condition and creditworthiness of the Borrower. Except for notices, reports and other documents expressly
required to be furnished to the Lenders by the Administrative Agent hereunder, the Administrative Agent shall not have any duty or responsibility to provide any Lender with any credit or other
information concerning the business, operations, property, condition (financial or otherwise), prospects or creditworthiness of the Borrower which may come into the possession of the Administrative
Agent or any of its officers, directors, employees, agents, attorneys-in-fact or Affiliates. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>67</FONT></P>

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<A NAME="page_lo2063_1_68"> </A>

<P><FONT SIZE=2><A
NAME="lo2063_12.7_indemnification."> </A>
<A NAME="toc_lo2063_21"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;12.7</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Indemnification. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The Lenders agree to indemnify the Administrative Agent in its capacity as such (to the extent not reimbursed by the Borrower
and without limiting the
obligation of the Borrower to do so), ratably according to their respective Commitment Percentages in effect on the date on which indemnification is sought (or, if indemnification is sought after the
date upon which the Commitments shall have terminated and the Loans shall have been paid in full, ratably in accordance with their Commitment Percentages immediately prior to such date), from and
against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind whatsoever which may at any time (including, without
limitation, at any time following the payment of the Loans) be imposed on, incurred by or asserted against the Administrative Agent in any way relating to or arising out of, the Commitments, this
Agreement, any of the other Loan Documents or any documents contemplated by or referred to herein or therein or the transactions contemplated hereby or thereby or any action taken or omitted by the
Administrative Agent under or in connection with any of the foregoing, provided that no Lender shall be liable for the payment of any portion of such liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements resulting from the Administrative Agent's gross negligence or willful misconduct. The agreements in this subsection shall survive
the payment of the Loans and all other amounts payable hereunder. </FONT></P>

<P><FONT SIZE=2><A
NAME="lo2063_12.8_administrative_agent_in_its_individual_capacity."> </A>
<A NAME="toc_lo2063_22"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;12.8</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Administrative Agent in Its Individual Capacity. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The Administrative Agent and its Affiliates may make loans to, accept deposits from and
generally engage in any kind of business with the Borrower as though
the Administrative Agent were not the Administrative Agent hereunder and under the other Loan Documents. With respect to the Loans made by it and with respect to any Letter of Credit issued or
participated in by it, the Administrative Agent shall have the same rights and powers under this Agreement and the other Loan Documents as any Lender and may exercise the same as though it were not
the Administrative Agent, and the terms "Lender" and "Lenders" shall include the Administrative Agent in its individual capacity. </FONT></P>

<P><FONT SIZE=2><A
NAME="lo2063_12.9_successor_administrative_agent."> </A>
<A NAME="toc_lo2063_23"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;12.9</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Successor Administrative Agent. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The Administrative Agent may resign as Administrative Agent upon 10&nbsp;days' notice to the Lenders and the
Borrower. If the Administrative Agent shall
resign as Administrative Agent under this Agreement and the other Loan Documents, then the Required Lenders shall appoint from among the Lenders a
successor agent for the Lenders, which successor agent shall be subject to the approval of the Borrower (which approval shall not be unreasonably withheld), or shall appoint as a successor agent a
financial institution which is not a Lender and which is reasonably acceptable to the Borrower, whereupon such successor agent shall succeed to the rights, powers and duties of the Administrative
Agent, and the term "Administrative Agent" shall mean such successor agent effective upon such appointment and approval, and the former Administrative Agent's rights, powers and duties as
Administrative Agent shall be terminated, without any other or further act or deed on the part of such former Administrative Agent or any of the parties to this Agreement or any holders of the Loans.
After any retiring Administrative Agent's resignation as Administrative Agent, the provisions of this Section&nbsp;12 shall inure to its benefit as to any actions taken or omitted to be taken by it
while it was Administrative Agent under this Agreement and the other Loan Documents. </FONT></P>

<P><FONT SIZE=2><A
NAME="lo2063_12.10_issuing_bank;_swing_line_lender."> </A>
<A NAME="toc_lo2063_24"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;12.10</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Issuing Bank; Swing Line Lender. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The provisions of this Section&nbsp;12 (other than subsection 12.9) shall apply to the Issuing Banks and the
Swing Line Lender mutatis mutandis to the same
extent as such provisions apply to the Administrative Agent. </FONT></P>

<P><FONT SIZE=2><A
NAME="lo2063_12.11_annual_administration_fee."> </A>
<A NAME="toc_lo2063_25"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;12.11</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Annual Administration Fee. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The Borrower shall pay to the Administrative Agent an annual administration fee (the "Annual Administration Fee") on
the Closing Date and annually in advance
on each anniversary thereof prior to the Revolving Credit Termination Date (or such earlier date on which the Revolving Credit Commitments shall terminate pursuant to Section&nbsp;11) and the
payment in full of all Obligations. The Annual Administration Fee payable on the Closing Date shall be in an amount equal to $50,000 and the Annual Administration Fee payable on each anniversary of
the Closing Date in accordance with the immediately preceding sentence shall be in an amount equal to $50,000. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>68</FONT></P>

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<A NAME="page_lo2063_1_69"> </A>
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="lo2063_section_13._miscellaneous"> </A>
<A NAME="toc_lo2063_26"> </A>
<BR></FONT><FONT SIZE=2>SECTION 13. MISCELLANEOUS    <BR></FONT></P>

<P><FONT SIZE=2><A
NAME="lo2063_13.1_amendments_and_waivers."> </A>
<A NAME="toc_lo2063_27"> </A>
  &nbsp;&nbsp;&nbsp;&nbsp;13.1</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Amendments and Waivers. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Neither this Agreement nor any other Loan Document, nor any terms hereof or thereof may be amended, supplemented or modified
  except in accordance with the
provisions of this subsection. The Required Lenders may, or, with the written consent of the Required Lenders, the Administrative Agent may, from time to time, (a)&nbsp;enter into with the Borrower
and each Loan Party which is a party to the relevant Loan Documents written amendments, supplements or modifications hereto and to the other Loan Documents for the purpose of adding any provisions to
this Agreement or the other Loan Documents or changing in any manner the rights of the Lenders or of the Borrower hereunder or thereunder or (b)&nbsp;waive, on such terms and conditions as the
Required Lenders or the Administrative Agent, as the case may be, may specify in such instrument, any of the requirements of this Agreement or the other Loan Documents or any Default or Event of
Default and its consequences, </FONT><FONT SIZE=2><I>provided,
however</I></FONT><FONT SIZE=2>, that no such waiver and no such amendment, supplement or modification shall (i)&nbsp;reduce the amount or extend the scheduled date of maturity of any Loan made by
any Lender or of any installment thereof, or reduce the stated rate of any interest thereon or reduce the fees or any other amounts payable hereunder to any Lender or extend the scheduled date of any
payment thereof or increase the aggregate amount or extend the expiration date of any Lender's Commitments, in each case without the consent of each such Lender directly affected thereby,
(ii)&nbsp;amend, modify or waive any provision of this subsection or reduce the percentage specified in the definition of Required Lenders or consent to the assignment or transfer by any Loan Party
(except any Subsidiary Guarantor to any other Subsidiary Guarantor or the Borrower) of any of its rights and obligations under this Agreement and the other Loan Documents or release all or
substantially all of the Guarantees or release all or substantially all of the Collateral, in each case without the written consent of all the Lenders (except that in connection with the Merger, the
release of the capital stock of the Borrower shall not require the consent of the Lenders and except as provided in subsection 8.6), (iii)&nbsp;amend, modify or waive subsection 4.1(c) without the
written consent of the Required Term Loan Lenders or reduce the percentage in the definition of Required Term Loan Lenders without the consent of all the Term Loan Lenders, (iv)&nbsp;amend, modify
or waive any provision of Section&nbsp;3 without the prior written consent of the Required Revolving Credit Lenders and each Issuing Bank or reduce the percentage in the definition of Required
Revolving Credit Lenders or amend, modify or waive the penultimate sentence of subsection 4.7(c) without the consent of all the Revolving Credit Lenders and the Issuing Banks or (v)&nbsp;amend,
modify or waive any provision of Section&nbsp;12 without the written consent of the then Administrative Agent. Any such waiver and any such amendment, supplement or modification shall apply equally
to each of the Lenders and shall be binding upon the Borrower, the Lenders, the Administrative Agent and all future holders of the Loans. In the case of any waiver, the Borrower, the Lenders and the
Administrative Agent shall be restored to their former positions and rights hereunder and under the other Loan Documents, and any Default or Event of Default waived shall be deemed to be cured and not
continuing; no such waiver shall extend to any subsequent or other Default or Event of Default or impair any right consequent thereon. </FONT></P>

<P><FONT SIZE=2><A
NAME="lo2063_13.2_notices."> </A>
<A NAME="toc_lo2063_28"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;13.2</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Notices. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;All notices, requests and demands to or upon the respective parties hereto to be effective shall be in writing (including by facsimile
transmission), and,
unless otherwise expressly provided herein, shall be deemed to have been duly given or made when delivered, or three days after being deposited in the mail, postage prepaid, or, in the case of
telecopy notice, when received, addressed as follows in the case of the Borrower and the Administrative Agent, and as set forth in </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>69</FONT></P>

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<P><FONT SIZE=2><I> Schedule&nbsp;1.1(a)</I></FONT><FONT SIZE=2> in the case of the other parties hereto, or to such other address as may be hereafter notified by the respective parties hereto: </FONT></P>

<!-- User-specified TAGGED TABLE -->
<DIV ALIGN="CENTER"><TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2>Holdings:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="65%"><FONT SIZE=2>Dal-Tile International&nbsp;Inc.<BR>
7834 C.F. Hawn Freeway<BR>
P.O.&nbsp;Box 170130<BR>
Dallas, Texas 75217<BR>
Attention: Mr.&nbsp;Scott R. Veldman<BR>
Telecopy: (214)&nbsp;309-4390</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2><BR>
The Borrower:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="65%"><FONT SIZE=2><BR>
Dal-Tile Group&nbsp;Inc.<BR>
7834 C.F. Hawn Freeway<BR>
P.O.&nbsp;Box 170130<BR>
Dallas, Texas 75217<BR>
Attention: Mr.&nbsp;Scott R. Veldman<BR>
Telecopy: (214)&nbsp;309-4390</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2><BR>
with a copy to:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="65%"><FONT SIZE=2><BR>
Fried, Frank, Harris, Shriver&nbsp;&amp; Jacobson<BR>
One New York Plaza<BR>
New York, New York 10004-1980<BR>
Attention: Ms.&nbsp;Jean Hanson<BR>
Telecopy: (212)&nbsp;859-4000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2><BR>
The Administrative Agent:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="65%"><FONT SIZE=2><BR>
The Chase Manhattan Bank<BR>
2200 Ross Avenue<BR>
Dallas, Texas 75201<BR>
Attention: Allen King<BR>
Telecopy: (214)&nbsp;965-2705</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2><BR>
with a copy to:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="65%"><FONT SIZE=2><BR>
The Chase Manhattan Bank<BR>
Agent Bank Services<BR>
140 East 45th Street, 29th Floor<BR>
New York, New York 10017<BR>
Attention: Muniram Appanna<BR>
Telecopy: (212)&nbsp;552-2261</FONT></TD>
</TR>
</TABLE></DIV>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that any notice, request or demand to or upon the Administrative Agent or the Lenders pursuant to subsection 2.2, 3.2, 3.4, 3.7 or 3.11 shall
not be effective until received. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>70</FONT></P>

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<P><FONT SIZE=2><A
NAME="page_lq2063_1_71"> </A> </FONT></P>

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<P><FONT SIZE=2><A
NAME="lq2063_13.3_no_waiver;_cumulative_remedies."> </A>
<A NAME="toc_lq2063_1"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;13.3</FONT><FONT SIZE=2><I>&nbsp;&nbsp;No Waiver; Cumulative Remedies. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;No failure to exercise and no delay in exercising, on the part of the Administrative Agent or any Lender, any
right, remedy, power or privilege hereunder or
under the other Loan Documents shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise
thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any rights, remedies, powers and
privileges provided by law. </FONT></P>

<P><FONT SIZE=2><A
NAME="lq2063_13.4_survival_of_representations_and_warranties."> </A>
<A NAME="toc_lq2063_2"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;13.4</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Survival of Representations and Warranties. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;All representations and warranties made hereunder, in the other Loan Documents and in any document,
certificate or statement delivered pursuant hereto or in
connection herewith shall survive the execution and delivery of this Agreement and the making of the Loans hereunder. </FONT></P>


<P><FONT SIZE=2><A
NAME="lq2063_13.5_payment_of_expenses_and_taxes."> </A>
<A NAME="toc_lq2063_3"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;13.5</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Payment of Expenses and Taxes. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The Borrower agrees (a)&nbsp;to pay or reimburse the Administrative Agent and the Arranger for all their
reasonable out-of-pocket
costs and expenses incurred in connection with the development, preparation and execution of, and any amendment, supplement or modification to, this Agreement and the other Loan Documents and any
other documents prepared in connection herewith or therewith, and the consummation and administration of the transactions contemplated hereby and thereby, including, without limitation, the reasonable
fees and disbursements of counsel to the Administrative Agent and the Arranger, (b)&nbsp;to pay or reimburse each Lender and the Administrative Agent for all its costs and expenses incurred in
connection with the enforcement or preservation of any rights under this Agreement, the other Loan Documents and any such other documents prepared in connection herewith or therewith, including,
without limitation, the fees and disbursements of counsel (including the allocated fees and expenses of in-house counsel in lieu of the fees and expenses of outside counsel) to each Lender
and of counsel to the Administrative Agent, (c)&nbsp;to pay, indemnify, and hold each Lender and the Administrative Agent harmless from, any and all recording and filing fees and any and all
liabilities with respect to, or resulting from any delay in paying, stamp, excise and other similar taxes, if any, which may be payable or determined to be payable in connection with the execution and
delivery of, or administration of any of the transactions contemplated by, or any amendment, supplement or modification of, or any waiver or consent under or in respect of, this Agreement, the other
Loan Documents and any such other documents, and (d)&nbsp;to pay, indemnify, and hold each Lender and the Administrative Agent and their Affiliates and their respective officers, directors,
employees, advisors and agents harmless from and against any and all other liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind
or nature whatsoever with respect to the execution, delivery, enforcement, performance and administration of this Agreement, the other Loan Documents, the Merger or the use of the proceeds of the
Loans, and any other documents, including, without limitation, any of the foregoing relating to the violation of, noncompliance with or liability under, any Environmental Law applicable to the
operations of the Borrower, any of its Subsidiaries or any of the Properties (all the foregoing in this clause&nbsp;(d), collectively, the "</FONT><FONT SIZE=2><I>indemnified
liabilities</I></FONT><FONT SIZE=2>"), </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2>, that the Borrower shall have no obligation hereunder to the Administrative Agent or any Lender with
respect to indemnified liabilities arising from (i)&nbsp;the gross negligence or willful misconduct of the Administrative Agent or any such Lender, as the case may
be, or (ii)&nbsp;legal proceedings commenced against the Administrative Agent or any such Lender, as the case may be, by any security holder or creditor thereof arising out of and based upon rights
afforded any such security holder or creditor solely in its capacity as such. The agreements in this subsection shall survive repayment of the Loans and all other amounts payable hereunder. </FONT></P>

<P><FONT SIZE=2><A
NAME="lq2063_13.6_successors_and_ass__lq202224"> </A>
<A NAME="toc_lq2063_4"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;13.6</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Successors and Assigns; Participations and Assignments. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a)&nbsp;This Agreement shall be binding upon and inure to the benefit of the Borrower,
Holdings, the Lenders, the Administrative Agent and their respective
successors and assigns, except that neither the Borrower nor Holdings may assign or transfer any of its rights or obligations under this Agreement without the prior written consent of each </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>71</FONT></P>

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<A NAME="page_lq2063_1_72"> </A>

<P><FONT SIZE=2>
Lender and any assignment or transfer by any Lender of its rights or obligations under this Agreement or any Loan Document must be made in compliance with this subsection 13.6 (and any purported
assignment in violation of this subsection shall be null and void). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Any
Lender other than any Conduit Lender may, in the ordinary course of its lending or investment business and in accordance with applicable law, at any time sell
to one or more financial institutions or other entities ("</FONT><FONT SIZE=2><I>Loan Participants</I></FONT><FONT SIZE=2>") participating interests in any Loan owing to such Lender, any Commitment
of such Lender or any other interest of such Lender hereunder and under the other Loan Documents. In the event of any such sale by a Lender of a participating interest to a Loan Participant,
(i)&nbsp;such Lender's obligations under this Agreement to the other parties to this Agreement shall remain unchanged, (ii)&nbsp;such Lender shall remain solely responsible for the performance
thereof, (iii)&nbsp;such Lender shall remain the holder of any such Loan, Commitment or other interest for all purposes under this Agreement and the other Loan Documents, (iv)&nbsp;the Borrower
and the Administrative Agent shall continue to deal solely and directly with such Lender in connection with such Lender's rights and obligations under this Agreement and the other Loan Documents, and
(v)&nbsp;no Loan Participant under any participation shall have any right to approve any amendment or waiver of any provision of any Loan Document, or any consent to any departure by any Loan Party
therefrom, except with respect to the matters described in clauses (i)&nbsp;and (ii)&nbsp;of the proviso to the second sentence of subsection 13.1. The Borrower agrees that, while an Event of
Default shall have occurred and be continuing, if amounts outstanding under this Agreement are due or unpaid, or shall have been declared or shall have become due and payable upon the occurrence of an
Event of Default, each Loan Participant shall, to the maximum extent permitted by applicable law, be deemed to have the right of setoff in respect of its participating interest in amounts owing under
this Agreement to the same extent as if the amount of its participating interest were owing directly to it as a Lender under this Agreement, </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2>
that, in purchasing such participating interest, such Participant shall be deemed to have agreed to share with the Lenders the proceeds thereof as provided in subsection 13.7(a) as fully as if it were
a Lender hereunder. The Borrower also agrees that each Loan Participant shall be entitled to the benefits of subsections 4.9, 4.10 and 4.11 with respect to its participation in the Commitments and the
Loans outstanding from time to time as if it were a Lender, </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that, in the case of subsection 4.10 such Loan Participant shall have complied with
the requirements of said subsection and </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2>, </FONT><FONT SIZE=2><I>further</I></FONT><FONT SIZE=2>, that no Loan Participant shall (i)&nbsp;be
required, on or before the date it becomes a Loan Participant or thereafter, to deliver to the selling Lender the forms required in subsection 4.10, or (ii)&nbsp;be entitled to receive in respect of
the amount of its participation any greater amount pursuant to subsection 4.10 (or
any other subsection) than the transferor Lender would have been entitled to receive in respect of the amount of the participation it transferred to such Loan Participant if no such transfer had
occurred. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Any
Lender other than any Conduit Lender may, in the ordinary course of its lending or investment business and in accordance with applicable law, at any time and
from time to time assign to any other Lender or any Lender Affiliate or, with the consent of the Borrower and the Administrative Agent (which in each case shall not be unreasonably withheld), to an
additional bank, financial institution or other entity (an "</FONT><FONT SIZE=2><I>Assignee</I></FONT><FONT SIZE=2>") all or any part of its rights and obligations under this Agreement and the other
Loan Documents pursuant to an Assignment and Acceptance, substantially in the form of </FONT><FONT SIZE=2><I>Exhibit&nbsp;H</I></FONT><FONT SIZE=2>, executed by such Assignee and such assigning
Lender (and, in the case of an Assignee that is not then a Lender or an Affiliate thereof, by the Borrower and the Administrative Agent) and delivered to the Administrative Agent for its acceptance
and recording in the Register, </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that, in the case of any such assignment to an additional bank, financial institution or other entity, the sum
of the aggregate principal amount of Loans, the aggregate amount of L/C Obligations, the aggregate Swing Line Participation Amounts and the aggregate amount of unused Commitments being assigned and,
if such assignment is of less than all of the rights and obligations of the assigning Lender, the sum of the aggregate principal amount of Loans, the aggregate amount of L/C Obligations, the aggregate
Swing Line Participation Amounts and the aggregate amount of the unused </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>72</FONT></P>

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<P><FONT SIZE=2>
Commitments remaining with the assigning Lender are each not less than $5,000,000 (or $1,000,000 in the case of Term Loans) (or such lesser amount as may be agreed to by the Borrower and the
Administrative Agent). For purposes of the proviso contained in the preceding sentence, the amount described therein shall be aggregated in respect of each Lender and its Lender Affiliates, if any.
Upon such execution, delivery, acceptance and recording, from and after the effective date determined pursuant to such Assignment and Acceptance, (x)&nbsp;the Assignee thereunder shall be a party
hereto and, to the extent provided in such Assignment and Acceptance, have the rights and obligations of a Lender hereunder with a Commitment as set forth therein, and (y)&nbsp;the assigning Lender
thereunder shall, to the extent provided in such Assignment and Acceptance, be released from its obligations under this Agreement (and, in the case of an Assignment and Acceptance covering all or the
remaining portion of an assigning Lender's rights and obligations under this Agreement, such assigning Lender shall cease to be a party hereto). Notwithstanding any provision of this
paragraph&nbsp;(c) and paragraph&nbsp;(e) of this subsection, the consent of the Borrower shall not be required, and, unless requested by the Assignee and/or the assigning Lender, new Notes shall
not be required to be executed and delivered by the Borrower, for any assignment which occurs when any of the events described in subsection 11(f) shall have occurred and be continuing.
Notwithstanding the foregoing, any Conduit Lender may assign at any time to its designating Lender hereunder without the consent of the Borrower or the Administrative Agent any or all of the Loans it
may have funded hereunder and pursuant to its designation agreement and without regard to the limitations set forth in the first sentence of this Section&nbsp;13.6(c). An Assignor's rights under
Section&nbsp;13.5 shall survive the assignment of its Commitments, L/C Obligations, Swing Line Participation Amounts and Loans. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The
Administrative Agent, on behalf of the Borrower, shall maintain at the address of the Administrative Agent referred to in subsection 13.2 a copy of each
Assignment and Acceptance delivered to it and a register (the "</FONT><FONT SIZE=2><I>Register</I></FONT><FONT SIZE=2>") for the recordation of the names and addresses of the Lenders and the
Commitments of, and principal amounts of the Loans owing to, each Lender from
time to time. The entries in the Register shall be conclusive, in the absence of manifest error, and the Borrower, the Administrative Agent and the Lenders shall treat each Person whose name is
recorded in the Register as the owner of a Loan or other obligation hereunder as the owner thereof for all purposes of this Agreement and the other Loan Documents, notwithstanding any notice to the
contrary. Any assignment of any Loan or other obligation hereunder (whether or not evidenced by a Note) shall be effective only upon appropriate entries with respect thereto being made in the
Register. The Register shall be available for inspection by the Borrower or any Lender at any reasonable time and from time to time upon reasonable prior notice. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Upon
its receipt of an Assignment and Acceptance executed by an assigning Lender and an Assignee (and, in the case of an Assignee that is not then a Lender or an
Affiliate thereof, by the Borrower and the Administrative Agent) together with, except in the case of an assignment pursuant to subsection 4.13, payment to the Administrative Agent of a registration
and processing fee of $3,500, the Administrative Agent shall (i)&nbsp;promptly accept such Assignment and Acceptance and (ii)&nbsp;on the effective date determined pursuant thereto record the
information contained therein in the Register and give notice of such acceptance and recordation to the Lenders and the Borrower. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;The
Borrower authorizes each Lender to disclose to any Loan Participant or Assignee (each, a "</FONT><FONT SIZE=2><I>Transferee</I></FONT><FONT SIZE=2>") and any
prospective Transferee, subject to the provisions of subsection 13.15, any and all financial information in such Lender's possession concerning the Borrower and its Affiliates which has been delivered
to such Lender by or on behalf of Holdings or the Borrower pursuant to this Agreement or which has been delivered to such Lender by or on behalf of Holdings or the Borrower in connection with such
Lender's credit evaluation of the Borrower and its Affiliates prior to becoming a party to this Agreement. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;For
avoidance of doubt, the parties to this Agreement acknowledge that the provisions of this subsection concerning assignments of Loans and Notes relate only to
absolute assignments and that </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>73</FONT></P>

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<P><FONT SIZE=2>
such provisions do not prohibit assignments creating security interests, including, without limitation, any pledge or assignment by a Lender of any Loan or Note to any Federal Reserve Bank in
accordance with applicable law, </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2>, that any transfer of Loans or Notes upon, or in lieu of, enforcement of or the exercise of remedies under any
such pledge shall be treated as an assignment thereof which shall not be made without compliance with the requirements of this subsection 13.6. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;Each
of Holdings, the Borrower, each Lender and the Administrative Agent hereby confirms that it will not institute against a Conduit Lender or join any other
Person in instituting against a Conduit Lender any bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding under any state bankruptcy or similar law, for one year and one day
after the payment in full of the latest maturing commercial paper note issued by such Conduit Lender; </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2>, </FONT> <FONT SIZE=2><I>however</I></FONT><FONT SIZE=2>, that each Lender designating any
Conduit Lender hereby agrees to indemnify, save and hold harmless each other party
hereto for any loss, cost, damage or expense arising out of its inability to institute such a proceeding against such Conduit Lender during such period of forbearance. </FONT></P>

<P><FONT SIZE=2><A
NAME="lq2063_13.7_adjustments;_set-off."> </A>
<A NAME="toc_lq2063_5"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;13.7</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Adjustments; Set-off. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a)&nbsp;If any Lender (a "</FONT><FONT SIZE=2><I>Benefitted Lender</I></FONT><FONT SIZE=2>") shall at any time receive
any payment of all or part of its
Loans or the Reimbursement Obligations owing to it, or interest thereon, or receive any collateral in respect thereof (whether voluntarily or involuntarily, by set-off, pursuant to events
or proceedings of the nature referred to in subsection 11(f), or otherwise), in a greater proportion than any such payment to or collateral received by any other Lender, if any, in respect of such
other Lender's Loans or the Reimbursement Obligations owing to it, or interest thereon, such Benefitted Lender shall purchase for cash from the other Lenders a participating interest in such portion
of each such other Lender's Loan or the Reimbursement Obligations owing to it, or shall provide such other Lenders with the benefits of any such collateral, or the proceeds thereof, as shall be
necessary to cause such Benefitted Lender to share the excess payment or benefits of such collateral or proceeds ratably with each of the Lenders, </FONT><FONT SIZE=2><I>provided,
however</I></FONT><FONT SIZE=2>, that if all or any portion of such excess payment or benefits is thereafter recovered from such Benefitted Lender, such purchase shall be rescinded, and the purchase
price and benefits returned, to the extent of such recovery, but without interest. The Borrower agrees that each Lender so purchasing a portion of another Lender's Loans and/or participating interests
in any Letters of Credit may exercise all rights of payment (including, without limitation, rights of set-off) with respect to such portion as fully as if such Lender were the direct
holder of such portion. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;In
addition to any rights and remedies of the Lenders provided by law, each Lender shall have the right, without prior notice to the Borrower, any such notice being
expressly waived by the Borrower to the extent permitted by applicable law, upon any amount becoming due and payable by the Borrower hereunder (whether at the stated maturity, by acceleration or
otherwise) to set-off and appropriate and apply against such amount any and all deposits (general or special, time or demand, provisional or final), in any currency, and any other credits,
indebtedness or claims, in any currency, in each case whether direct or indirect, absolute or contingent, matured or unmatured, at any time held or owing by such Lender or any branch or agency thereof
to or for the credit or the account of the Borrower. Each Lender agrees promptly to notify the Borrower and the Administrative Agent after any such set-off and application made by such
Lender, </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> that the failure to give such notice shall not affect the validity of such set-off and application. </FONT></P>

<P><FONT SIZE=2><A
NAME="lq2063_13.8_counterparts."> </A>
<A NAME="toc_lq2063_6"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;13.8</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Counterparts. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;This Agreement may be executed by one or more of the parties to this Agreement on any number of separate counterparts (including
by facsimile transmission),
and all of said counterparts taken together shall be deemed to constitute one and the same instrument. A set of the copies of this Agreement signed by all the parties shall be lodged with the Borrower
and the Administrative Agent. </FONT></P>

<P><FONT SIZE=2><A
NAME="lq2063_13.9_severability."> </A>
<A NAME="toc_lq2063_7"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;13.9</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Severability. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such
prohibition or </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>74</FONT></P>

<HR NOSHADE>
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<A NAME="page_lq2063_1_75"> </A>

<P><FONT SIZE=2>
unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in
any other jurisdiction. </FONT></P>

<P><FONT SIZE=2><A
NAME="lq2063_13.10_integration."> </A>
<A NAME="toc_lq2063_8"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;13.10</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Integration. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;This Agreement and the other Loan Documents represent the agreement of the Borrower, the Administrative Agent and the Lenders with
respect to the subject
matter hereof, and there are no promises, undertakings, representations or warranties by the Administrative Agent or any Lender relative to subject matter hereof not expressly set forth or referred to
herein or in the other Loan Documents. </FONT></P>

<P><FONT SIZE=2><A
NAME="lq2063_13.11_governing_law."> </A>
<A NAME="toc_lq2063_9"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2><B>13.11</B></FONT><FONT SIZE=2><I>&nbsp;&nbsp;</I></FONT><FONT SIZE=2><B><I>GOVERNING LAW. </I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;</FONT><FONT SIZE=2><B>THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS
OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO THE CONFLICTS OF LAW PRINCIPLES THEREOF.  </B></FONT></P>

<P><FONT SIZE=2><B> <A NAME="lq2063_13.12_submission_to_jurisdiction;_waivers."> </A>
<A NAME="toc_lq2063_10"> </A>
<BR>    </B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;13.12</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Submission To Jurisdiction; Waivers. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The Borrower and Holdings hereby irrevocably and unconditionally: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;submits
for itself and its property in any legal action or proceeding relating to this Agreement and the other Loan Documents to which it is a party, or for
recognition and enforcement of any judgment in respect thereof, to the non-exclusive general jurisdiction of the Courts of the State of New York, the courts of the United States of America
for the Southern District of New York, and appellate courts from any thereof; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;consents
that any such action or proceeding may be brought in such courts and waives any objection that it may now or hereafter have to the venue of any such action
or proceeding in any such court or that such action or proceeding was brought in an inconvenient court and agrees not to plead or claim the same; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;agrees
that service of process in any such action or proceeding may be effected by mailing a copy thereof by registered or certified mail (or any substantially
similar form of mail), postage prepaid, to the Borrower or Holdings at its address set forth in subsection 13.2 or at such other address of which the Administrative Agent shall have been notified
pursuant thereto; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;agrees
that nothing herein shall affect the right to effect service of process in any other manner permitted by law or shall limit the right to sue in any other
jurisdiction; and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;waives,
to the maximum extent not prohibited by law, any right it may have to claim or recover in any legal action or proceeding referred to in this subsection any
special, exemplary, punitive or consequential damages. </FONT></P>

</UL>

<P><FONT SIZE=2><A
NAME="lq2063_13.13_acknowledgements."> </A>
<A NAME="toc_lq2063_11"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;13.13</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Acknowledgements. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;The Borrower hereby acknowledges that: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;it
has been advised by counsel in the negotiation, execution and delivery of this Agreement and the other Loan Documents; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;neither
the Administrative Agent nor any Lender has any fiduciary relationship with or duty to the Borrower arising out of or in connection with this Agreement or
any of the other Loan Documents, and the relationship between Administrative Agent and Lenders, on one hand, and the Borrower, on the other hand, in connection herewith or therewith is solely that of
debtor and creditor; and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;no
joint venture is created hereby or by the other Loan Documents or otherwise exists by virtue of the transactions contemplated hereby among the Lenders or among
the Borrower and the Lenders. </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>75</FONT></P>

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<A NAME="page_lq2063_1_76"> </A>

<P><FONT SIZE=2><A
NAME="lq2063_13.14_waivers_of_jury_trial."> </A>
<A NAME="toc_lq2063_12"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2><B>13.14</B></FONT><FONT SIZE=2><I>&nbsp;&nbsp;</I></FONT><FONT SIZE=2><B><I>WAIVERS OF JURY TRIAL. </I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;</FONT><FONT SIZE=2><B>THE BORROWER, HOLDINGS, THE
ADMINISTRATIVE AGENT AND THE LENDERS HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY
LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.  </B></FONT></P>

<P><FONT SIZE=2><B> <A NAME="lq2063_13.15_confidentiality."> </A>
<A NAME="toc_lq2063_13"> </A>
<BR>    </B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;13.15</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Confidentiality. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Each Lender agrees to keep confidential (and to cause its employees, officers, directors, agents,
attorneys, accountants and other professional advisors to
keep confidential) all non-public information provided to it by the Borrower or any Loan Party pursuant to or in connection with this Agreement or any other Loan Documents designated as
such by the Borrower or such other Loan Party, provided that nothing herein shall prevent any Lender from disclosing any such information (i)&nbsp;to the Administrative Agent, any other Lender or
any Lender Affiliate, (ii)&nbsp;to any Transferee or prospective Transferee which agrees to comply with the provisions of this subsection, (iii)&nbsp;on a need-to-know
basis to
its employees, directors, agents, attorneys, accountants and other professional advisors (each of which shall be instructed to hold the same in confidence), (iv)&nbsp;upon the request or demand of
any Governmental Authority (including, without limitation, the National Association of Insurance Commissioners) having jurisdiction over such Lender, (v)&nbsp;in response to any order of any court
or other Governmental Authority or as may otherwise be required pursuant to any Requirement of Law, (vi)&nbsp;which has been publicly disclosed other than in breach of this Agreement or
(vii)&nbsp;in connection with the exercise of any remedy hereunder or under any of the other Loan Documents. </FONT></P>

<P><FONT SIZE=2><A
NAME="lq2063_13.16_usury_savings_clause."> </A>
<A NAME="toc_lq2063_14"> </A>
<BR>  &nbsp;&nbsp;&nbsp;&nbsp;13.16</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Usury Savings Clause. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;It is the intention of the parties hereto to comply with applicable usury laws (now or hereafter enacted); accordingly,
notwithstanding any provision to the
contrary in this Agreement, any Notes, any of the other Loan Documents or any other document related hereto or thereto, in no event shall this Agreement or any such other document require the payment
or permit the collection of interest in excess of the maximum amount permitted by such laws. If from any circumstances whatsoever, fulfillment of any provision of this Agreement, any Notes, any of the
other Loan Documents or of any other document pertaining hereto or thereto, shall involve transcending the limit of validity prescribed by applicable law for the collection or charging of interest,
then, ipso facto, the obligation to be fulfilled shall be reduced to the limit of such validity, and if form any such circumstances the Administrative Agent and the Lenders shall ever receive anything
of value as interest or deemed interest by applicable law under this Agreement, any Notes, any of the other Loan Documents or any other document pertaining hereto or otherwise an amount that would
exceed the highest lawful rate, such amount that would be excessive interest shall be applied to the reduction of the principal amount owing under the Loans or on account of any other indebtedness of
the Borrower, and not to the payment of interest, or if such excessive interest exceeds the unpaid balance of principal of such indebtedness, such excess shall be refunded to the Borrower. In
determining whether or not the interest paid or payable with respect to any indebtedness of the Borrower to the Administrative Agent and the Lenders, under any specified contingency, exceeds the
Highest Lawful Rate (as hereinafter defined), the Borrower, the Administrative Agent and the Lenders shall, to the maximum extent permitted by applicable law, (a)&nbsp;characterize any
non-principal payment as an expense, fee or premium rather than as interest, (b)&nbsp;exclude voluntary prepayments and the effects thereof, (c)&nbsp;amortize, prorate, allocate and
spread the total amount of interest throughout the full term of such indebtedness so that interest thereon does not exceed the maximum amount permitted by applicable law, and/or (d)&nbsp;allocate
interest between portions of such indebtedness, to the end that no such portion shall bear interest at a rate greater than that permitted by applicable law. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;To
the extent that the Texas Finance Code is relevant to the Administrative Agent and the Lenders for the purpose of determining the Highest Lawful Rate, the Administrative Agent and
the Lenders hereby elect to determine the applicable rate ceiling under such Code by the indicated (weekly) rate ceiling form time to time in effect. Nothing set forth in this subsection 13.16 is
intended to or shall limit the effect or operation of subsection 13.11. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>76</FONT></P>

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<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;For purposes of this subsection 13.16, "Highest Lawful Rate" shall mean the maximum rate of nonusurious interest that may be contracted for, taken, reserved or received on the Loans
under laws applicable to the Administrative Agent and the Lenders. </FONT></P>

<P><FONT SIZE=2><A
NAME="lq2063_13.17_release_of_collateral."> </A>
<A NAME="toc_lq2063_15"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;13.17</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Release of Collateral. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;(a)&nbsp;Notwithstanding anything to the contrary contained herein or in any other Loan Document, the Administrative
Agent is hereby irrevocably authorized
by each Lender (without requirement of notice to or consent of any Lender) to take any action requested by the Borrower having the effect of releasing any Collateral or Guarantee Obligations
(i)&nbsp;to the extent necessary to permit consummation of any transaction permitted by any Loan Document or that has been consented to in accordance with subsections 7.10 or 13.1 or
(ii)&nbsp;under the circumstances described in paragraph&nbsp;(b) below. Without limiting the generality of the foregoing, the Administrative Agent is authorized to enter into
non-disturbance or similar agreements in connection with any lease of Mortgaged Property entered into by the Borrower or any of its Subsidiaries as landlord. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;On
the first date after the Closing Date on which the Borrower has Index Debt of BBB- or higher from S&amp;P and Baa3 or higher from Moody's, in each case
on stable watch or the equivalent, the Collateral (other than the Capital Stock of the Borrower and each of its Domestic Subsidiaries, whether direct or indirect, and 65% of the Capital Stock of
direct Foreign Subsidiaries of the Borrower or any Domestic Subsidiary) shall automatically be released from the Liens created by the Security Documents (it being understood that the Guarantees shall
nevertheless remain in effect), </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2>, that if at any time thereafter the Index Debt is rated BBB- (with a negative outlook or the
equivalent) or lower by S&amp;P or Baa3 (with a negative outlook or the equivalent) or lower by Moody's in each case for a period of six months, the Obligations under this Agreement and the other Loan
Documents shall be secured by the Collateral and the Borrower shall and shall cause each of its Subsidiaries as soon as practicable (but in any event no later than 30&nbsp;days after the expiration
of such six month period) and, at its own expense, to consummate any and all actions necessary or advisable in the reasonable discretion of the Administrative Agent to grant to the Administrative
Agent for the benefit of the Lenders a perfected first priority security interest in the Collateral (subject in the case of all Collateral, other than the pledged Capital Stock, to Liens permitted
under subsection 8.3). </FONT></P>

<P><FONT SIZE=2><A
NAME="lq2063_13.18_effect_of_agreement."> </A>
<A NAME="toc_lq2063_16"> </A>
<BR>   &nbsp;&nbsp;&nbsp;&nbsp;13.18</FONT><FONT SIZE=2><I>&nbsp;&nbsp;Effect of Agreement. </I></FONT><FONT SIZE=2>&nbsp;&nbsp;Holdings, the Borrower, the Administrative Agent and the Lenders hereto which are parties to the Existing Credit Agreement
hereby agree that (i)&nbsp;the
Existing Credit Agreement is amended to provide for the facilities set forth in Section&nbsp;2 and Section&nbsp;3 herein and (ii)&nbsp;that immediately following the repayment of the Term Loans
(as defined in the Existing Credit Agreement) and the Revolving Credit Loans (as defined in the Existing Credit Agreement), the Term Loan Commitments and the Revolving Credit Commitments (each as
defined in the Existing Credit Agreement) shall be terminated and the Existing Credit Agreement shall be and hereby is amended and restated on the terms and conditions set forth herein. This Agreement
is intended to amend and restate the Existing Credit Agreement and shall be construed and enforced to give effect to such intention, provided that each of the parties hereto agrees that this Agreement
shall be effective and enforceable against each of them in accordance with its terms whether or not construed as or constituting an amendment and restatement of the Existing Agreement. This Agreement
shall not be deemed a novation and any new Notes executed and delivered by the Borrower under the terms of this Agreement shall be deemed to amend and restate the existing Notes. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><I>[Remainder of page left blank intentionally; Signature page to follow.]  </I></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>77</FONT></P>

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<P><FONT SIZE=2><A
NAME="page_ls2063_1_78"> </A> </FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and delivered by their proper and duly authorized officers as of the day and year first above
written. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ls2063_annex_a_pricing_grid"> </A>
<A NAME="toc_ls2063_1"> </A>
<BR></FONT><FONT SIZE=2>Annex A<BR>  <BR>    PRICING GRID    <BR></FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="25%" ALIGN="CENTER"><FONT SIZE=2>Leverage Ratio Level</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="21%" ALIGN="CENTER"><FONT SIZE=2>Commitment Fee Rate</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="CENTER"><FONT SIZE=2>Applicable Margin for Eurodollar Loans</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="CENTER"><FONT SIZE=2>Applicable Margin for ABR Loans</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD COLSPAN=7><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=7><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="25%"><FONT SIZE=2>Leverage Ratio Level I</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="21%" ALIGN="RIGHT" VALIGN="TOP"><FONT SIZE=2>50 basis points</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="RIGHT" VALIGN="TOP"><FONT SIZE=2>212.5 basis points</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="RIGHT" VALIGN="TOP"><FONT SIZE=2>112.5 basis points</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=7><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="25%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="21%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="23%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="23%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="25%"><FONT SIZE=2><BR>
Leverage Ratio Level II</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="21%" ALIGN="RIGHT" VALIGN="TOP"><FONT SIZE=2><BR>
50 basis points</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="RIGHT" VALIGN="TOP"><FONT SIZE=2><BR>
178.5 basis points</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="RIGHT" VALIGN="TOP"><FONT SIZE=2><BR>
78.5 basis points</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD COLSPAN=7><BR><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="25%"><FONT SIZE=2><BR>
Leverage Ratio Level III</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="21%" ALIGN="RIGHT" VALIGN="TOP"><FONT SIZE=2><BR>
37.5 basis points</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="RIGHT" VALIGN="TOP"><FONT SIZE=2><BR>
162.5 basis points</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="RIGHT" VALIGN="TOP"><FONT SIZE=2><BR>
62.5 basis points</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD COLSPAN=7><BR><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="25%"><FONT SIZE=2><BR>
Leverage Ratio Level IV</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="21%" ALIGN="RIGHT" VALIGN="TOP"><FONT SIZE=2><BR>
37.5 basis points</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="RIGHT" VALIGN="TOP"><FONT SIZE=2><BR>
137.5 basis points</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="RIGHT" VALIGN="TOP"><FONT SIZE=2><BR>
37.5 basis points</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD COLSPAN=7><BR><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="25%"><FONT SIZE=2><BR>
Leverage Ratio Level V</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="21%" ALIGN="RIGHT" VALIGN="TOP"><FONT SIZE=2><BR>
25 basis points</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="RIGHT" VALIGN="TOP"><FONT SIZE=2><BR>
112.5 basis points</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="RIGHT" VALIGN="TOP"><FONT SIZE=2><BR>
12.5 basis points</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD COLSPAN=7><BR><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=7><BR><HR NOSHADE></TD>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=2>78</FONT></P>

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<A NAME="page_ls2063_1_79"> </A>

<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and delivered by their proper and duly authorized officers as of the day and year first above
written. </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="78%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="45%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><BR>
DAL-TILE INTERNATIONAL&nbsp;INC., as Holdings</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="45%" ALIGN="CENTER"><FONT SIZE=2><BR>
/s/&nbsp;</FONT><FONT SIZE=2>MARK A. SOLLS</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Name: Mark A. Solls<BR>
Title: Vice President</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><BR>
DAL-TILE GROUP&nbsp;INC., as the Borrower</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="45%" ALIGN="CENTER"><FONT SIZE=2><BR>
/s/&nbsp;</FONT><FONT SIZE=2>MARK A. SOLLS</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Name: Mark A. Solls<BR>
Title: Vice President</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><BR>
THE CHASE MANHATTAN BANK, as Administrative Agent and as a Lender</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="45%" ALIGN="CENTER"><FONT SIZE=2><BR>
/s/&nbsp;</FONT><FONT SIZE=2>ALLEN K. KING</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Name: Allen K. King<BR>
Title: Vice President</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><BR>
BANK OF AMERICA, N.A., as Syndication Agent and as a Lender</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="45%" ALIGN="CENTER"><FONT SIZE=2><BR>
/s/&nbsp;</FONT><FONT SIZE=2>STEVEN A. MACKENZIE</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Name: Steven A. Mackenzie<BR>
Title: Vice President</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><BR>
CREDIT LYONNAIS NEW YORK BRANCH, as a Co-Documentation Agent and as a Lender</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="45%" ALIGN="CENTER"><FONT SIZE=2><BR>
/s/&nbsp;</FONT><FONT SIZE=2>ATTILA KOC</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Name: Attila Koc<BR>
Title: Senior Vice President</FONT></TD>
</TR>
</TABLE>
<!-- insert table folio -->
<P ALIGN="CENTER"><FONT SIZE=2>79</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=2,SEQ=85,EFW="2062020",CP="DAL-TILE INTERNATIONAL INC.",DN="5",CHK=626815,FOLIO='79',FILE='DISK022:[01DFW3.01DFW2063]LS2063A.;5',USER='JBAKER',CD='29-OCT-2001;15:15' -->
<A NAME="page_ls2063_1_80"> </A>
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<TABLE WIDTH="78%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><BR>
FIRST UNION NATIONAL BANK, as a Co-Documentation Agent and as a Lender</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="45%" ALIGN="CENTER"><FONT SIZE=2><BR>
/s/&nbsp;</FONT><FONT SIZE=2>DAVID J.C. SILANDER</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Name: David J.C. Silander<BR>
Title: Vice President</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><BR>
ALLIED IRISH BANKS, P.L.C., as a Lender</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="45%" ALIGN="CENTER"><FONT SIZE=2><BR>
/s/&nbsp;</FONT><FONT SIZE=2>WILLIAM J. STRICKLAND</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Name: William J. Strickland<BR>
Title: President and CEO</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="45%" ALIGN="CENTER"><FONT SIZE=2><BR>
/s/&nbsp;</FONT><FONT SIZE=2>GERMAINE REUSCH</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Name: Germaine Reusch<BR>
Title: Vice President</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><BR>
BANK LEUMI USA, as a Lender</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="45%" ALIGN="CENTER"><FONT SIZE=2><BR>
/s/&nbsp;</FONT><FONT SIZE=2>ALIZ SADAN</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Name: Aliz Sadan<BR>
Title: Assistant Treasurer</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><BR>
BANK ONE, NA, as a Lender</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="45%" ALIGN="CENTER"><FONT SIZE=2><BR>
/s/&nbsp;</FONT><FONT SIZE=2>KATHY TURNER</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Name: Kathy Turner<BR>
Title: Director</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><BR>
BNP PARIBAS, as a Lender</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="45%" ALIGN="CENTER"><FONT SIZE=2><BR>
/s/&nbsp;</FONT><FONT SIZE=2>JEFF TEBEAUX</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Name: Jeff Tebeaux<BR>
Title: Associate</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="45%" ALIGN="CENTER"><FONT SIZE=2><BR>
/s/&nbsp;</FONT><FONT SIZE=2>LLOYD G. COX</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Name: Lloyd G. Cox<BR>
Title: Managing Director</FONT></TD>
</TR>
</TABLE>
<!-- insert table folio -->
<P ALIGN="CENTER"><FONT SIZE=2>80</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=3,SEQ=86,EFW="2062020",CP="DAL-TILE INTERNATIONAL INC.",DN="5",CHK=625008,FOLIO='80',FILE='DISK022:[01DFW3.01DFW2063]LS2063A.;5',USER='JBAKER',CD='29-OCT-2001;15:15' -->
<A NAME="page_ls2063_1_81"> </A>
<!-- end of table folio -->
<TABLE WIDTH="78%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><BR>
CREDIT SUISSE FIRST BOSTON, as a Lender</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="45%" ALIGN="CENTER"><FONT SIZE=2><BR>
/s/&nbsp;</FONT><FONT SIZE=2>KRISTIN LEPRI</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Name: Kristin Lepri<BR>
Title: Assistant Vice President</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="45%" ALIGN="CENTER"><FONT SIZE=2><BR>
/s/&nbsp;</FONT><FONT SIZE=2>BILL O'DALY</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Name: Bill O'Daly<BR>
Title: Vice President</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><BR>
SUNTRUST BANK, as a Lender</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="45%" ALIGN="CENTER"><FONT SIZE=2><BR>
/s/&nbsp;</FONT><FONT SIZE=2>BRADLEY J. STAPLES</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Name: Bradey J. Staples<BR>
Title: Director</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><BR>
THE BANK OF NOVA SCOTIA, as a Lender</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="45%" ALIGN="CENTER"><FONT SIZE=2><BR>
/s/&nbsp;</FONT><FONT SIZE=2>A.S. NORSWORTHY</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Name: A.S. Norsworthy<BR>
Title: Sr. Team Leader-Loan Operations</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><BR>
THE FUJI BANK, LIMITED, A MEMBER OF THE MIZUHO FINANCIAL GROUP, AS CO-DOCUMENTATION AGENT, as a Lender</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="45%" ALIGN="CENTER"><FONT SIZE=2><BR>
/s/&nbsp;</FONT><FONT SIZE=2>NOBUKI KOIKE</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Name: Nobuki Koike<BR>
Title: Senior Vice President</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><BR>
THE INDUSTRIAL BANK OF JAPAN, LIMITED NEW YORK BRANCH, A MEMBER OF THE MIZUHO FINANCIAL GROUP, AS CO-DOCUMENTATION AGENT, as a Lender</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="45%" ALIGN="CENTER"><FONT SIZE=2><BR>
/s/&nbsp;</FONT><FONT SIZE=2>MICHAEL N. OAKES</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Name: Michael N. Oakes<BR>
Title: Senior Vice President, Houston Office</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<P ALIGN="CENTER"><FONT SIZE=2>81</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=4,SEQ=87,EFW="2062020",CP="DAL-TILE INTERNATIONAL INC.",DN="5",CHK=502938,FOLIO='81',FILE='DISK022:[01DFW3.01DFW2063]LS2063A.;5',USER='JBAKER',CD='29-OCT-2001;15:15' -->
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