Exhibit 10.1

 

EXECUTION COPY

 

AMENDMENT No. 2 dated as of May 1, 2004 (this “Amendment”), to the Credit
Agreement dated as of January 25, 2001, as amended by Amendment No. 1 and
Agreement dated as of February 11, 2002 (the “Credit Agreement”), among COLLINS
& AIKMAN FLOORCOVERINGS, INC., a Delaware corporation (the “Borrower”), TANDUS
GROUP, INC., a Virginia corporation formerly named CAF Holdings, Inc.
(“Holdings”), the Lenders (as defined therein) and CREDIT SUISSE FIRST BOSTON,
as administrative agent (in such capacity, the “Administrative Agent”) and as
collateral agent (in such capacity, the “Collateral Agent”) for the Lenders.

 

A. Pursuant to the Credit Agreement, the Lenders have extended, and have agreed
to extend, credit to the Borrower.

 

B. Holdings and the Borrower have requested that the Credit Agreement be amended
as provided herein.

 

C. The Requisite Lenders (as defined below) are willing so to amend the Credit
Agreement.

 

D. Capitalized terms used but not defined herein shall have the meanings
assigned to them in the Credit Agreement.

 

Accordingly, in consideration of the mutual agreements herein contained and
other good and valuable consideration, the sufficiency and receipt of which are
hereby acknowledged, the parties hereto agree as follows:

 

SECTION 1. Amendments. (a) Section 1.01 of the Credit Agreement is hereby
amended by inserting in the appropriate alphabetical order therein the
following:

 

“Amendment No. 2” shall mean Amendment No. 2 dated as of May 1, 2004, to this
Agreement.

 

(b) The definition of the term “Consolidated EBITDA” set forth in Section 1.01
of the Credit Agreement is hereby amended by inserting at the end thereof the
following:

 

“In determining Consolidated EBITDA for any period, there shall be added to
Consolidated Net Income for such period (to the extent deducted in determining
such Consolidated Net Income) the amount of any fees, costs or other expenses
incurred by the Borrower in connection with Amendment No. 2.”

 

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

(c) The table appearing in Section 6.11 (Interest Coverage Ratio) of the Credit
Agreement is hereby amended and restated in its entirety to read as follows:

 

“Period

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

   Ratio

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

From and including February 1, 2004 to and including July 31, 2004

   1.75 to 1.00

From and including August 1, 2004 to and including October 30, 2004

   1.85 to 1.00

From and including October 31, 2004 to and including January 29, 2005

   2.00 to 1.00

Thereafter

   2.25 to 1.00”

 

(d) Section 6.12 (Fixed Charge Coverage Ratio) of the Credit Agreement is hereby
amended and restated in its entirety to read as follows:

 

“SECTION 6.12. Fixed Charge Coverage Ratio. Permit the Fixed Charge Coverage
Ratio for any period of four consecutive fiscal quarters, in each case taken as
one accounting period, ending during any period set forth below to be less than
the ratio set forth opposite such date or period below:

 

Period

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

   Ratio

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

From and including February 1, 2004 to and including October 30, 2004

   1.00 to 1.00

Thereafter

   1.10 to 1.00”

 

SECTION 2. Amendment Fee. The Borrower agrees to pay to the Administrative Agent
for the account of each Lender that executes and delivers a copy of this
Amendment to the Administrative Agent (or its counsel) at or prior to 5:00 p.m.,
New York City time, on May 13, 2004 (the “Signing Date”), an amendment fee (the
“Amendment Fee”) in an amount equal to 0.15% of the sum of such Lender’s
Revolving Credit Commitment (whether used or unused) and the principal amount of
such Lender’s outstanding Term Loans, in each case as of the Signing Date. The
Amendment Fee shall be payable in immediately available funds on the Signing
Date, if this Amendment shall have become effective on or prior to such date.
Once paid, the Amendment Fee shall not be refundable.

 

SECTION 3. Effectiveness. This Amendment shall become effective as of May 1,
2004, on the date occurring on or prior to the Signing Date that the
Administrative Agent shall have received counterparts of this Amendment that,
when taken together, bear the signatures of (a) the Borrower, (b) Holdings, (c)
the Subsidiary Guarantors, (d) Revolving Lenders holding a majority of the
Revolving Credit Commitments, whether used or unused and (e) the Required
Lenders (the Lenders described in clauses (d) and (e) being referred to herein
as the “Requisite Lenders”).

 

SECTION 4. Effect of Amendment. Except as expressly set forth herein, this
Amendment shall not by implication or otherwise limit, impair, constitute a
waiver of, or otherwise affect the rights and remedies of the Lenders, the
Collateral Agent or the Administrative Agent under the Credit Agreement or any
other Loan Document, and shall not alter, modify, amend or in any way affect any
of the terms, conditions,

 

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

obligations, covenants or agreements contained in the Credit Agreement or any
other Loan Document, all of which are ratified and affirmed in all respects and
shall continue in full force and effect. Nothing herein shall be deemed to
entitle any Loan Party to a consent to, or a waiver, amendment, modification or
other change of, any of the terms, conditions, obligations, covenants or
agreements contained in the Credit Agreement or any other Loan Document in
similar or different circumstances. This Amendment shall apply and be effective
only with respect to the provisions of the Credit Agreement specifically
referred to herein. After the date hereof, any reference to the Credit Agreement
shall mean the Credit Agreement, as modified hereby. This Amendment shall
constitute a “Loan Document” for all purposes of the Credit Agreement and the
other Loan Documents.

 

SECTION 5. Counterparts. This Amendment may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed and delivered shall be deemed an original, but all such
counterparts together shall constitute but one and the same contract. Delivery
of an executed counterpart of a signature page of this Amendment by facsimile
transmission shall be as effective as delivery of a manually executed
counterpart hereof.

 

SECTION 6. Applicable Law. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

SECTION 7. Headings. The headings of this Amendment are for purposes of
reference only and shall not limit or otherwise affect the meaning hereof.

 

SECTION 8. Expenses. The Borrower agrees to reimburse the Administrative Agent
for all reasonable out-of-pocket expenses incurred in connection with this
Amendment, including the reasonable fees, charges and disbursements of Cravath,
Swaine & Moore LLP, counsel for the Administrative Agent.

 

SECTION 9. Acknowledgment of Guarantors. Each of the Guarantors hereby
acknowledges receipt and notice of, and consents to the terms of, this
Amendment.

 

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

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

 

COLLINS & AIKMAN

FLOORCOVERINGS, INC.,

by

 

/s/ Stephen M. Powell

   

Name:

 

Stephen M. Powell

   

Title:

 

Vice President of Finance

 

TANDUS GROUP, INC.,

by  

/s/ Mac Bridger

   

Name:

 

Mac Bridger

   

Title:

 

Chief Executive Officer

 

EACH OF THE SUBSIDIARY

GUARANTORS LISTED ON SCHEDULE

I HERETO,

by   /s/ Mac Bridger    

Name:

 

Mac Bridger

   

Title:

 

Authorized Signatory

 

CREDIT SUISSE FIRST BOSTON, acting

through its Cayman Islands Branch,

individually and as Administrative Agent

and Collateral Agent,

by  

/s/ S. William Fox

   

Name:

 

S. WILLIAM FOX

   

Title:

 

DIRECTOR

 

by  

/s/ David J. Dodd

   

Name:

 

DAVID J. DODD

   

Title:

 

ASSOCIATE

 

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

    SIGNATURE PAGE TO AMENDMENT NO. 2 DATED AS OF MAY 1, 2004, TO THE COLLINS &
AIKMAN FLOORCOVERINGS, INC. CREDIT AGREEMENT DATED AS OF JANUARY 25, 2001, AS
AMENDED

Name of Lender:

 

ANTARES CAPITAL CORPORATION

   

/s/ David Mahon

   

Name:

 

David Mahon

   

Title:

 

Director

 

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

    SIGNATURE PAGE TO AMENDMENT NO. 2 DATED AS OF MAY 1, 2004, TO THE COLLINS &
AIKMAN FLOORCOVERINGS, INC. CREDIT AGREEMENT DATED AS OF JANUARY 25, 2001, AS
AMENDED

Name of Lender:

 

ANTARES FUNDING, L.P.

    By: JPMorgan Chase Bank, as trustee of the Antares Funding Trust created
under the Trust Agreement dated as of November 30, 1999.    

/s/ Leslie Hundley

   

Name:

 

Leslie Hundley

   

Title:

 

AVP

 

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

    SIGNATURE PAGE TO AMENDMENT NO. 2 DATED AS OF MAY 1, 2004, TO THE COLLINS &
AIKMAN FLOORCOVERINGS, INC. CREDIT AGREEMENT DATED AS OF JANUARY 25, 2001, AS
AMENDED

Name of Lender:

 

Bank of America, N.A.

   

/s/ Robert Klawinski

   

Name:

 

Robert Klawinski

   

Title:

 

Managing Director

 

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

    SIGNATURE PAGE TO AMENDMENT NO. 2 DATED AS OF MAY 1, 2004, TO THE COLLINS &
AIKMAN FLOORCOVERINGS, INC. CREDIT AGREEMENT DATED AS OF JANUARY 25, 2001, AS
AMENDED

Name of Lender:

 

Bear Stearns Investment Products Inc.

   

/s/ Richard Bram Smith

   

Name:

 

Richard Bram Smith

   

Title:

 

Vice President

 

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

    SIGNATURE PAGE TO AMENDMENT NO. 2 DATED AS OF MAY 1, 2004, TO THE COLLINS &
AIKMAN FLOORCOVERINGS, INC. CREDIT AGREEMENT DATED AS OF JANUARY 25, 2001, AS
AMENDED

Name of Lender:

 

Black Diamond CLO 1998-1, Ltd.

   

/s/ Alan Corkish

   

Name:

 

Alan Corkish

   

Title:

 

Director

 

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

    SIGNATURE PAGE TO AMENDMENT NO. 2 DATED AS OF MAY 1, 2004, TO THE COLLINS &
AIKMAN FLOORCOVERINGS, INC. CREDIT AGREEMENT DATED AS OF JANUARY 25, 2001, AS
AMENDED

Name of Lender:

 

Black Diamond CLO 2000-1, Ltd.

   

/s/ Alan Corkish

   

Name:

 

Alan Corkish

   

Title:

 

Director

 

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

    SIGNATURE PAGE TO AMENDMENT NO. 2 DATED AS OF MAY 1, 2004, TO THE COLLINS &
AIKMAN FLOORCOVERINGS, INC. CREDIT AGREEMENT DATED AS OF JANUARY 25, 2001, AS
AMENDED

Name of Lender:

 

Black Diamond International Funding, Ltd.

   

/s/ Alan Corkish

   

Name:

 

Alan Corkish

   

Title:

 

Director

 

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

    SIGNATURE PAGE TO AMENDMENT NO. 2 DATED AS OF MAY 1, 2004, TO THE COLLINS &
AIKMAN FLOORCOVERINGS, INC. CREDIT AGREEMENT DATED AS OF JANUARY 25, 2001, AS
AMENDED

Name of Lender:

 

BNP Paribas

   

/s/ Susan Bowes

    Name:  

Susan Bowes

   

Title:

 

Director

   

/s/ Eric Toizer

   

Name:

 

Eric Toizer

   

Title:

 

Managing Director

 

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

    SIGNATURE PAGE TO AMENDMENT NO. 2 DATED AS OF MAY 1, 2004, TO THE COLLINS &
AIKMAN FLOORCOVERINGS, INC. CREDIT AGREEMENT DATED AS OF JANUARY 25, 2001, AS
AMENDED Name of Lender:  

Centurion CDO II, Ltd.

By: American Express Asset Management

Group, Inc. as Collateral Manager

    /s/ Leanne Stavrakis     Name:  

Leanne Stavrakis

    Title:  

Director - Operations

 

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

    SIGNATURE PAGE TO AMENDMENT NO. 2 DATED AS OF MAY 1, 2004, TO THE COLLINS &
AIKMAN FLOORCOVERINGS, INC. CREDIT AGREEMENT DATED AS OF JANUARY 25, 2001, AS
AMENDED Name of Lender:  

Denali Capital LLC, managing member of DC

Funding Partners, portfolio manager for DENALI

CAPITAL CLO I, LTD., or an affiliate

   

/s/ Kelli C. Marti

   

Name:

 

KELLI C. MARTI

   

Title:

 

VICE PRESIDENT

 

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

    SIGNATURE PAGE TO AMENDMENT NO. 2 DATED AS OF MAY 1, 2004, TO THE COLLINS &
AIKMAN FLOORCOVERINGS, INC. CREDIT AGREEMENT DATED AS OF JANUARY 25, 2001, AS
AMENDED Name of Lender:    

Galaxy CLO 1999-1, Ltd.

by: AIG Global Investment Corp.

as Collateral Manager

   

/s/ Steven S. Oh

    Name:  

Steven S. Oh

    Title:  

Managing Director

   

SunAmerica Life Insurance Company

by: AIG Global Investment Corp.

as Investment Advisor

   

/s/ Steven S. Oh

    Steven S. Oh     Managing Director

 

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

    SIGNATURE PAGE TO AMENDMENT NO. 2 DATED AS OF MAY 1, 2004, TO THE COLLINS &
AIKMAN FLOORCOVERINGS, INC. CREDIT AGREEMENT DATED AS OF JANUARY 25, 2001, AS
AMENDED Name of Lender:  

General Electric Capital Corp.

   

/s/ Mei Nishiwaki

    Name:  

Mei Nishiwaki

    Title:  

Duly Authorized Signatory

 

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

    SIGNATURE PAGE TO AMENDMENT NO. 2 DATED AS OF MAY 1, 2004, TO THE COLLINS &
AIKMAN FLOORCOVERINGS, INC. CREDIT AGREEMENT DATED AS OF JANUARY 25, 2001, AS
AMENDED Name of Lender:    

GMAC Commercial Finance LLC

   

/s/ David Grabosky

    Name:  

David Grabosky

    Title:  

Vice President

 

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

    SIGNATURE PAGE TO AMENDMENT NO. 2 DATED AS OF MAY 1, 2004, TO THE COLLINS &
AIKMAN FLOORCOVERINGS, INC. CREDIT AGREEMENT DATED AS OF JANUARY 25, 2001, AS
AMENDED

Name of Lender:

 

HARBOUR TOWN FUNDING LLC

   

/s/ Diana M. Himes

    Name:  

DIANA M. HIMES

    Title:  

ASSISTANT VICE PRESIDENT

 

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

    SIGNATURE PAGE TO AMENDMENT NO. 2 DATED AS OF MAY 1, 2004, TO THE COLLINS &
AIKMAN FLOORCOVERINGS, INC. CREDIT AGREEMENT DATED AS OF JANUARY 25, 2001, AS
AMENDED

Name of Lender:

 

Heller Financial, Inc.

   

/s/ Mei Nishiwaki

    Name:  

Mei Nishiwaki

    Title:  

Duly Authorized Signatory

 

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

    SIGNATURE PAGE TO AMENDMENT NO. 2 DATED AS OF MAY 1, 2004, TO THE COLLINS &
AIKMAN FLOORCOVERINGS, INC. CREDIT AGREEMENT DATED AS OF JANUARY 25, 2001, AS
AMENDED

Name of Lender:

 

KZH CYPRESSTREE-1 LLC

   

/s/ Dorian Herrera

    Name:  

DORIAN HERRERA

    Title:  

AUTHORIZED AGENT

 

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

    SIGNATURE PAGE TO AMENDMENT NO. 2 DATED AS OF MAY 1, 2004, TO THE COLLINS &
AIKMAN FLOORCOVERINGS, INC. CREDIT AGREEMENT DATED AS OF JANUARY 25, 2001, AS
AMENDED

Name of Lender:

 

KZH SOLEIL LLC

   

/s/ Dorian Herrera

    Name:  

DORIAN HERRERA

    Title:  

AUTHORIZED AGENT

 

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

    SIGNATURE PAGE TO AMENDMENT NO. 2 DATED AS OF MAY 1, 2004, TO THE COLLINS &
AIKMAN FLOORCOVERINGS, INC. CREDIT AGREEMENT DATED AS OF JANUARY 25, 2001, AS
AMENDED

Name of Lender:

 

KZH SOLEIL-2 L\LC

   

/s/ Dorian Herrera

    Name:  

DORIAN HERRERA

    Title:  

AUTHORIZED AGENT

 

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

    SIGNATURE PAGE TO AMENDMENT NO. 2 DATED AS OF MAY 1, 2004, TO THE COLLINS &
AIKMAN FLOORCOVERINGS, INC. CREDIT AGREEMENT DATED AS OF JANUARY 25, 2001, AS
AMENDED

Name of Lender:

 

KZH STERLING LLC

   

/s/ Dorian Herrera

    Name:  

DORIAN HERRERA

    Title:  

AUTHORIZED AGENT

 

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

    SIGNATURE PAGE TO AMENDMENT NO. 2 DATED AS OF MAY 1, 2004, TO THE COLLINS &
AIKMAN FLOORCOVERINGS, INC. CREDIT AGREEMENT DATED AS OF JANUARY 25, 2001, AS
AMENDED

Name of Lender:

 

NATIONAL CITY BANK

   

/s/ Tony Daher

    Name:  

TONY DAHER

    Title:  

Assist. Vice President

 

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

    SIGNATURE PAGE TO AMENDMENT NO. 2 DATED AS OF MAY 1, 2004, TO THE COLLINS &
AIKMAN FLOORCOVERINGS, INC. CREDIT AGREEMENT DATED AS OF JANUARY 25, 2001, AS
AMENDED

Name of Lender:

 

NOVA CDO 2001, LTD.

   

/s/ David Mahon

    Name:  

David Mahon

    Title:  

Vice President

 

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

    SIGNATURE PAGE TO AMENDMENT NO. 2 DATED AS OF MAY 1, 2004, TO THE COLLINS &
AIKMAN FLOORCOVERINGS, INC. CREDIT AGREEMENT DATED AS OF JANUARY 25, 2001, AS
AMENDED

Name of Lender:  

 

Sankaty Advisors, LLC as Collateral

Manager for Great Point CLO 1999-1

LTD., as Term Lender

   

/s/ Diane J. Exter

    Name:  

DIANE J. EXTER

    Title:  

MANAGING DIRECTOR

PORTFOLIO MANAGER

 

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

    SIGNATURE PAGE TO AMENDMENT NO. 2 DATED AS OF MAY 1, 2004, TO THE COLLINS &
AIKMAN FLOORCOVERINGS, INC. CREDIT AGREEMENT DATED AS OF JANUARY 25, 2001, AS
AMENDED

Name of Lender:  

 

Sankaty Advisors, LLC as Collateral

Manager for Race Point II CLO,

Limited, as Term Lender

   

/s/ Diane J. Exter

    Name:  

DIANE J. EXTER

    Title:  

MANAGING DIRECTOR

PORTFOLIO MANAGER

 

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

    SIGNATURE PAGE TO AMENDMENT NO. 2 DATED AS OF MAY 1, 2004, TO THE COLLINS &
AIKMAN FLOORCOVERINGS, INC. CREDIT AGREEMENT DATED AS OF JANUARY 25, 2001, AS
AMENDED

Name of Lender:  

 

Sankaty Advisors, LLC as Collateral

Manager for Race Point CLO,

Limited, as Term Lender

   

/s/ Diane J. Exter

    Name:  

DIANE J. EXTER

    Title:  

MANAGING DIRECTOR

PORTFOLIO MANAGER

 

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

    SIGNATURE PAGE TO AMENDMENT NO. 2 DATED AS OF MAY 1, 2004, TO THE COLLINS &
AIKMAN FLOORCOVERINGS, INC. CREDIT AGREEMENT DATED AS OF JANUARY 25, 2001, AS
AMENDED

Name of Lender:  

 

Sankaty Advisors, LLC as Collateral

Manager for Castle Hill I - INGOTS,

Ltd., as Term Lender

   

/s/ Diane J. Exter

    Name:  

DIANE J. EXTER

    Title:  

MANAGING DIRECTOR

PORTFOLIO MANAGER

 

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

    SIGNATURE PAGE TO AMENDMENT NO. 2 DATED AS OF MAY 1, 2004, TO THE COLLINS &
AIKMAN FLOORCOVERINGS, INC. CREDIT AGREEMENT DATED AS OF JANUARY 25, 2001, AS
AMENDED

Name of Lender:  

 

Sankaty Advisors, LLC as Collateral

Manager for Castle Hill III CLO,

Limited, as Term Lender

   

/s/ Diane J. Exter

    Name:  

DIANE J. EXTER

    Title:  

MANAGING DIRECTOR

PORTFOLIO MANAGER

 

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

    SIGNATURE PAGE TO AMENDMENT NO. 2 DATED AS OF MAY 1, 2004, TO THE COLLINS &
AIKMAN FLOORCOVERINGS, INC. CREDIT AGREEMENT DATED AS OF JANUARY 25, 2001, AS
AMENDED

Name of Lender:  

 

Sankaty Advisors, LLC as Collateral

Manager for Castle Hill II - INGOTS,

Ltd., as Term Lender

   

/s/ DIANE J. EXTER

    Name:  

DIANE J. EXTER

    Title:  

MANAGING DIRECTOR

PORTFOLIO MANAGER

 

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

    SIGNATURE PAGE TO AMENDMENT NO. 2 DATED AS OF MAY 1, 2004, TO THE COLLINS &
AIKMAN FLOORCOVERINGS, INC. CREDIT AGREEMENT DATED AS OF JANUARY 25, 2001, AS
AMENDED

Name of Lender:  

 

SEABOARD CLO 2000 LTD.

By: David L. Babson & Company Inc. as

Collateral Manager

   

/s/ GLENN P. DUFFY

    Name:  

GLENN P. DUFFY, CFA

    Title:  

Managing Director

 

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

    SIGNATURE PAGE TO AMENDMENT NO. 2 DATED AS OF MAY 1, 2004, TO THE COLLINS &
AIKMAN FLOORCOVERINGS, INC. CREDIT AGREEMENT DATED AS OF JANUARY 25, 2001, AS
AMENDED

Name of Lender:  

 

Sequils-Centurion V, Ltd.

By: American Express Asset

Management Group, Inc. as

Collateral Manager

   

/s/ Leanne Stavrakis

    Name:  

Leanne Stavrakis

    Title:  

Director - Operations

 

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

    SIGNATURE PAGE TO AMENDMENT NO. 2 DATED AS OF MAY 1, 2004, TO THE COLLINS &
AIKMAN FLOORCOVERINGS, INC. CREDIT AGREEMENT DATED AS OF JANUARY 25, 2001, AS
AMENDED

Name of Lender:  

 

The Governor Company of The Bank of Ireland

   

/s/ SORKA KELLY                DAVID MCGARRY

    Name:  

SORKA KELLY        David McGarry

    Title:  

AUTHORISED SIGNATORY

 

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

    SIGNATURE PAGE TO AMENDMENT NO. 2 DATED AS OF MAY 1, 2004, TO THE COLLINS &
AIKMAN FLOORCOVERINGS, INC. CREDIT AGREEMENT DATED AS OF JANUARY 25, 2001, AS
AMENDED

Name of Lender:

 

Toronto Dominion (New York), Inc.

   

/s/ Stacey L. Malek

    Name:  

Stacey L. Malek

    Title:  

Vice President

 

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

    SIGNATURE PAGE TO AMENDMENT NO. 2 DATED AS OF MAY 1, 2004, TO THE COLLINS &
AIKMAN FLOORCOVERINGS, INC. CREDIT AGREEMENT DATED AS OF JANUARY 25, 2001, AS
AMENDED

Name of Lender:

 

Wachovia Bank, National Association

   

/s/ Mark S. Supple

    Name:  

Mark S. Supple

    Title:  

Vice President

 

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

Schedule I

 

SUBSIDIARY GUARANTORS

 

CAF Extrusion, Inc., a Delaware corporation.

Monterey Carpets, Inc., a Delaware corporation.

Monterey Color Systems, Inc., a California corporation.